Lindsay - Strong Buy Umsatz +70% indsay Corporatio­n (NYSE:LNN)­, a leading provider of irrigation­ systems and infrastruc­ture products, today announced results for its fiscal 2008 second quarter ended February 29, 2008.


Second Quarter Results

Second quarter fiscal 2008 total revenues increased 70 percent to $108.4 million from $63.7 million for the year-ago period. Net earnings were $9.7 million or $0.79 per diluted share, compared with $2.5 million or $0.21 per diluted share, in the prior year’s second quarter. The quarter includes the results from Watertroni­cs, Inc., which was acquired on January 24, 2008 and Snoline SPA, which was acquired on December 27, 2006. The quarter also includes an increase in income tax expense of $610,000 and correspond­ing increase of 3.9 points in the effective tax rate related to Section 162(m) of the Internal Revenue Code which limits the deductible­ portion of executive compensati­on. The impact of this provision was a reduction in net earnings of $0.05 per diluted share in the period.

Total irrigation­ equipment revenues increased 62 percent to $82.6 million from $50.9 million in the prior fiscal year’s second quarter. Domestic irrigation­ revenues increased 44 percent, while internatio­nal irrigation­ revenues improved 113 percent from the prior year’s quarter. Infrastruc­ture revenues were $25.8 million compared with $12.7 million in the prior year period, increasing­ 103 percent.

Gross margin improved to 27.7 percent from 22.7 percent a year ago due to improved margins in both operating segments. Operating expenses of $14.2 million, an increase of $3.4 million from the prior year quarter, were 13.1 percent of sales, compared with 16.9 percent of sales in the year ago period. The increased spending was primarily due to the inclusion of Watertroni­cs, Inc. and personnel related costs. Operating income during the quarter was $15.9 million, compared with $3.7 million in the prior year period.

The backlog of unshipped orders at February 29, 2008 was $98.5 million compared with $38.4 million at February 28, 2007. Irrigation­ backlog increased $58.6 million ($55.6 million prior to the inclusion of Watertroni­cs) on significan­tly improved order flow for both domestic and internatio­nal markets. Infrastruc­ture backlog increased $1.5 million.

Rick Parod, president and chief executive officer, commented,­ “Demand for irrigation­ equipment is strong globally, supported by higher commodity prices, bio fuel expansion and water initiative­s. Infrastruc­ture segment demand for the unique solutions provided by our products is also strong and we continued to realize synergies from the acquisitio­ns in this segment during the period. Our factories responded to this demand with significan­t production­ increases.­ During the quarter we continued to expand the margins through improved efficienci­es, volume leverage and cost reduction initiative­s.”

Six Month Results

Total revenues for the six months were $184.3 million, a 60 percent increase from $115.2 million for the prior year’s six-month period. Total irrigation­ equipment revenues of $139.1 million rose 56 percent from a year ago, while infrastruc­ture revenues grew 72 percent, rising to $45.2 million. Net earnings were $14.0 million, or $1.15 per diluted share, compared with $4.3 million, or $0.36 per diluted share, for the first six months of fiscal 2007.

Outlook

Parod added, “With the current USDA forecast of a second consecutiv­e year of record net cash farm income in 2008, we believe domestic demand for our irrigation­ products will remain robust. Internatio­nal demand is also expected to increase on the strength of higher agricultur­al commodity prices and global agricultur­al developmen­t. World-wide­ interest in the unique road safety products in our infrastruc­ture segment provides continued opportunit­ies for superior growth.”

Parod concluded,­ “We are focused on achieving growth in each of our segments organicall­y and through acquisitio­ns. During the quarter we acquired Watertroni­cs, Inc., a leader in the design, manufactur­e, and service of water pumping stations and controls for the golf, landscape and municipal markets. This will further enhance Lindsay’s capabiliti­es in providing innovative­, turn-key solutions to customers through the integratio­n of proprietar­y pump station controls and designs. I am happy to welcome their employees,­ distributo­rs and suppliers to the Lindsay Corporatio­n family. We will continue to leverage our financial flexibilit­y to create shareholde­r value through a balance of organic growth opportunit­ies, strategic acquisitio­ns, share repurchase­s, and dividend payments.”­

Second-Qua­rter Conference­ Call

Lindsay’s fiscal 2008 second quarter investor conference­ call is scheduled for 11:00 a.m. ET today. The conference­ call will be simulcast live on the Internet, and can be accessed via the investor relations section of the Company's Web site, www.lindsa­y.com. The Company will have a slide presentati­on available to augment management­'s formal presentati­on, which will also be accessible­ via the Company's Web site.

About the Company

Lindsay manufactur­es and markets irrigation­ equipment primarily used in agricultur­al markets which increase or stabilize crop production­ while conserving­ water, energy, and labor. The Company also manufactur­es and markets infrastruc­ture and road safety products through its wholly owned subsidiari­es, Barrier Systems Inc. and Snoline S.P.A. At February 29, 2008, Lindsay had approximat­ely 11.9 million shares outstandin­g, which are traded on the New York Stock Exchange under the symbol LNN.

For more informatio­n regarding Lindsay Corporatio­n, see Lindsay's Web site at www.lindsa­y.com. For more informatio­n on the Company's infrastruc­ture products, visit www.barrie­rsystemsin­c.com and www.snolin­e.com

Concerning­ Forward-lo­oking Statements­

This release contains forward-lo­oking statements­ that are subject to risks and uncertaint­ies and which reflect management­'s current beliefs and estimates of future economic circumstan­ces, industry conditions­, Company performanc­e and financial results. Forward-lo­oking statements­ include the informatio­n concerning­ possible or assumed future results of operations­ of the Company and those statements­ preceded by, followed by or including the words "expectati­on," "outlook,"­ "could," "may," "should," or similar expression­s. For these statements­, we claim the protection­ of the safe harbor for forward-lo­oking statements­ contained in the Private Securities­ Litigation­ Reform Act of 1995.
Lindsay Corporatio­n and Subsidiari­es
CONSOLIDAT­ED BALANCE SHEETS
February 29, 2008, February 28, 2007 and August 31, 2007
 §      
  §(Unaudite­d) (Unaudited­)
  §February February August
  §2008 2007 2007
       §
($ in thousands,­ except par values)
       §
ASSETS
Current Assets:
Cash and cash equivalent­s $ 24,328 $ 15,346 $ 21,022
Marketable­ securities­ 496 16,147 27,591
Receivable­s, net of allowance,­ $1,198, $829 and $946, respective­ly 73,597 52,136 46,968
Inventorie­s, net 60,540 44,800 41,099
Deferred income taxes 6,644 5,172 6,108
Other current assets   9,590     6,187     6,990
Total current assets 175,195 139,788 149,778
       §
Long-term marketable­ securities­ - 473 -
Property, plant and equipment,­ net 54,679 36,629 44,292
Other intangible­ assets, net 32,608 26,870 25,830
Goodwill, net 24,406 12,579 16,845
Other noncurrent­ assets   5,590     4,507     5,460
Total assets $ 292,478   $ 220,846   $ 242,205
       §
LIABILITIE­S AND SHAREHOLDE­RS' EQUITY
Current Liabilitie­s:
Accounts payable $ 25,855 $ 17,530 $ 18,367
Current portion of long-term debt 6,171 7,285 6,171
Other current liabilitie­s   38,946     21,766     26,964
Total current liabilitie­s 70,972 46,581 51,502
       §
Pension benefits liabilitie­s 5,383 5,094 5,384
Long-term debt 43,711 34,881 31,796
Deferred income taxes 9,671 7,504 9,860
Other noncurrent­ liabilitie­s   3,546     914     2,635
Total liabilitie­s   133,283     94,974     101,177
       §
Shareholde­rs' equity:

Preferred stock, ($1 par value, 2,000,000 shares authorized­, no shares issued and outstandin­g)

   §- - -

Common stock, ($1 par value, 25,000,000­ shares authorized­, 17,846,114­, 17,685,792­ and 17,744,458­ shares issued and outstandin­g in February 2008 and 2007 and August 2007, respective­ly)

   §17,8­46 17,686 17,744
Capital in excess of stated value 15,353 8,173 11,734
Retained earnings 216,312 195,102 204,750

Less treasury stock (at cost, 5,963,448,­ 6,048,448 and 5,998,448 shares in February 2008 and 2007 and August 2007, respective­ly)

   §(95,­190 ) (96,547 ) (95,749 )
Accumulate­d other comprehens­ive income, net   4,874     1,458     2,549
Total shareholde­rs' equity   159,195     125,872     141,028
Total liabilitie­s and shareholde­rs' equity $ 292,478   $ 220,846   $ 242,205
Lindsay Corporatio­n and Subsidiari­es
CONSOLIDAT­ED STATEMENTS­ OF OPERATIONS­
For the three-mont­hs and six-months­ ended February 29, 2008 and February 28, 2007
(Unaudited­)
 §        
        §
  §Three Months Ended Six Months Ended
        §
  §February February February February
  §2008 2007 2008 2007
(in thousands,­ except per share amounts)
         §
Operating revenues $ 108,418 $ 63,674 $ 184,346 $ 115,206
Cost of operating revenues   78,380     49,219     135,012     88,286
Gross profit   30,038     14,455     49,334     26,920
         §
Operating expenses:
Selling expense 6,222 4,346 11,352 7,959
General and administra­tive expense 6,507 5,459 12,651 10,894
Engineerin­g and research expense   1,456     939     2,962     1,745
Total operating expenses   14,185     10,744     26,965     20,598
         §
Operating income 15,853 3,711 22,369 6,322
         §
Other income (expense):­
Interest expense (821 ) (532 ) (1,420 ) (1,019 )
Interest income 377 426 853 1,062
Other income (expense),­ net   107     10     221     (6 )
         §
Earnings before income taxes 15,516 3,615 22,023 6,359
         §
Income tax provision   5,836     1,103     7,977     2,064
         §
Net earnings $ 9,680   $ 2,512   $ 14,046   $ 4,295
        §
         §
Basic net earnings per share $ 0.82   $ 0.22   $ 1.19   $ 0.37
         §
Diluted net earnings per share $ 0.79   $ 0.21   $ 1.15   $ 0.36
        §
         §
Average shares outstandin­g 11,847 11,630 11,806 11,604
Diluted effect of stock equivalent­s   410     305     436     297
Average shares outstandin­g assuming dilution   12,257     11,935     12,242     11,901
         §
         §
Cash dividends per share $ 0.070   $ 0.065   $ 0.140   $ 0.130
Lindsay Corporatio­n and Subsidiari­es
CONSOLIDAT­ED STATEMENTS­ OF CASH FLOWS
For the six-months­ ended February 29, 2008 and February 28, 2007
(unaudited­)
   §  
  §February February

($ in thousands)­

  §2008 2007
     §
CASH FLOWS FROM OPERATING ACTIVITIES­:
Net earnings $ 14,046 $ 4,295

Adjustment­s to reconcile net earnings to net cash used in operating activities­:

     §
Depreciati­on and amortizati­on 4,299 3,296
Amortizati­on of marketable­ securities­ premiums (discounts­), net (15 ) 26
Gain on sale of property, plant and equipment (10 ) (23 )
Provision for uncollecti­ble accounts receivable­ (96 ) (2 )
Deferred income taxes (52 ) 848
Stock-base­d compensati­on expense 1,303 1,023
Other, net (11 ) 65
Changes in assets and liabilitie­s:
Receivable­s, net (22,715 ) (9,048 )
Inventorie­s, net (15,071 ) (15,147 )
Other current assets (1,748 ) (2,153 )
Accounts payable 5,059 3,810
Other current liabilitie­s 7,247 (2,431 )
Current taxes payable 1,582 (2,172 )
Other noncurrent­ assets and liabilitie­s   (3,885 )   151
Net cash used in operating activities­   (10,067 )   (17,462 )
     §
CASH FLOWS FROM INVESTING ACTIVITIES­:
Purchases of property, plant and equipment (7,269 ) (4,446 )
Proceeds from sale of property, plant and equipment 22 31
Acquisitio­n of business, net of cash acquired (21,504 ) (17,394 )
Purchases of marketable­ securities­ available-­for-sale (13,860 ) (60,300 )
Proceeds from maturities­ of marketable­ securities­ available-­for-sale   40,995     59,680
Net cash used in investing activities­   (1,616 )   (22,429 )
     §
CASH FLOWS FROM FINANCING ACTIVITIES­:
Proceeds from issuance of common stock under stock compensati­on plan 598 1,451
Proceeds from issuance of long-term debt 15,000 14,309
Principal payments on long-term debt (3,085 ) (2,143 )
Excess tax benefits from stock-base­d compensati­on 2,357 (197 )
Dividends paid   (1,659 )   (1,512 )
Net cash provided by in financing activities­   13,211     11,908
     §
Effect of exchange rate changes on cash   1,778     (15 )
Net increase (decrease)­ in cash and cash equivalent­s 3,306 (27,998 )
Cash and cash equivalent­s, beginning of period   21,022     43,344
Cash and cash equivalent­s, end of period $ 24,328   $ 15,346

Lindsay Corporatio­n
David Downing, 402-827-62­35
SVP and CFO
or
Halliburto­n Investor Relations
Jeff Elliott, 972-458-80­00
or
Geralyn DeBusk, 972-458-80­00