First quarter net earnings more than double to $18.2 million and EPS improves to $1.65
Irrigation revenues increase 4 percent on higher pricing and solid demand across core markets
Infrastructure revenues increase 19 percent on higher Road Zipper System^® sales

Lindsay Corporation (NYSE:LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its first quarter which ended on November 30, 2022.

First Quarter Summary

Revenues for the first quarter of fiscal 2023 were $176.2 million, an increase of $10.0 million, or 6 percent, compared to revenues of $166.2 million in the prior year first quarter. Net earnings for the quarter were $18.2 million, or $1.65 per diluted share, compared with net earnings of $7.9 million, or $0.72 per diluted share, for the prior year first quarter.

"Positive market fundamentals continue to support solid demand for irrigation equipment across our core markets," said Randy Wood, President and Chief Executive Officer. "Improved price realization and reduced inflationary headwinds compared to the same prior year period contributed to operating income growth and margin expansion in our irrigation business. In our infrastructure business, increased Road Zipper System sales resulted from the completion of a large project that began in our prior year fourth quarter."

First Quarter Segment Results

Irrigation segment revenues for the first quarter of fiscal 2023 were $152.1 million, an increase of $6.2 million, or 4 percent, compared to $145.9 million in the prior year first quarter. North America irrigation revenues of $83.9 million increased $5.0 million, or 6 percent, compared to the prior year first quarter. The increase in North America irrigation revenues resulted primarily from higher average selling prices as unit sales volume was comparable to the prior year first quarter. International irrigation revenues of $68.1 million increased $1.2 million, or 2 percent. Higher sales in Brazil and other markets more than offset the impact of lower sales in Ukraine and Russia and a large Egypt project in the prior year first quarter that did not repeat. The current year was also impacted by the unfavorable effects of foreign currency translation of approximately $1.6 million compared to the prior year first quarter.

Irrigation segment operating income for the first quarter of fiscal 2023 was $28.6 million, an increase of $11.4 million, or 66 percent, compared to the prior year first quarter. Operating margin was 18.8 percent of sales, compared to 11.8 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from improved price realization, lower inflationary impact on input costs and a more favorable margin mix of international irrigation revenues compared to the prior year first quarter.

Infrastructure segment revenues for the first quarter of fiscal 2023 were $24.1 million, an increase of $3.8 million, or 19 percent, compared to $20.2 million in the prior year first quarter. The increase resulted from higher Road Zipper System sales, which were partially offset by lower Road Zipper System lease revenue and lower sales of road safety products.

Infrastructure segment operating income for the first quarter of fiscal 2023 was $3.4 million, an increase of $0.6 million or 22 percent compared to the prior year first quarter. Operating margin was 14.0 percent of sales, compared to 13.7 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from higher revenues and lower inflationary impact on input costs compared to the prior year first quarter. This increase was partially offset by a less favorable margin mix of revenues compared to the prior year first quarter.

The backlog of unfilled orders at November 30, 2022 was $129.6 million compared with $154.8 million at November 30, 2021. The irrigation and infrastructure backlog are both lower compared to the prior year first quarter.

Outlook

"Current commodity price levels and net farm income projections support a positive outlook for North America irrigation equipment demand in the near term. We expect demand in international markets to be supported by expanded production driven by positive agricultural market fundamentals and continuing concerns over food security and global grain supplies," said Mr. Wood. "In the infrastructure business, we expect growth to be supported by an anticipated increase in U.S. infrastructure spending and by the ongoing management of our project sales funnel."

First Quarter Conference Call

Lindsay's fiscal 2023 first quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 internationally, and requesting the Lindsay Corporation call. Additionally, 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. Replays of the conference call will remain on our Web site through the next quarterly earnings release. 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 Corporation (NYSE:LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world's rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic^® center pivot and lateral move agricultural irrigation systems, FieldNET^® remote irrigation management and scheduling technology, and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world's roads, bridges and tunnels, through the Barrier Systems^®, Road Zipper^® and Snoline™ brands. For more information about Lindsay Corporation, visit www.lindsay.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. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations and planned financing of the Company and those statements preceded by, followed by or including the words "anticipate," "estimate," "believe," "intend," "expect," "outlook," "could," "may," "should," "will," or similar expressions. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking information contained in this press release.

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)

	Three months ended
(in thousands, except per share amounts)		November 30, 2022			November 30, 2021

Operating revenues	$	176,159		$	166,152
Cost of operating revenues		123,139			128,714
Gross profit		53,020			37,438

Operating expenses:
Selling expense		9,677			7,990
General and administrative expense		14,437			12,880
Engineering and research expense		4,308			3,207
Total operating expenses		28,422			24,077

Operating income		24,598			13,361

Other income (expense):
Interest expense		(909	)		(1,163	)
Interest income		373			177
Other expense, net		(57	)		(2,900	)
Total other income (expense)		(593	)		(3,886	)

Earnings before income taxes		24,005			9,475

Income tax expense		5,788			1,574

Net earnings	$	18,217		$	7,901

Earnings per share:
Basic	$	1.66		$	0.72
Diluted	$	1.65		$	0.72

Shares used in computing earnings per share:
Basic		10,989			10,927
Diluted		11,073			11,026

Cash dividends declared per share	$	0.34		$	0.33

LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)

	Three months ended
(in thousands)		November 30, 2022			November 30, 2021
Operating revenues:
Irrigation:
North America	$	83,934		$	78,976
International		68,149			66,933
Irrigation segment		152,083			145,909
Infrastructure segment		24,076			20,243
Total operating revenues	$	176,159		$	166,152

Operating income:
Irrigation segment	$	28,641		$	17,212
Infrastructure segment		3,372			2,766
Corporate		(7,415	)		(6,617	)
Total operating income	$	24,598		$	13,361

The Company manages its business activities in two reportable segments as follows:

Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions.

Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment.

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


(in thousands)	November 30, 2022			November 30, 2021			August 31, 2022

ASSETS
Current assets:
Cash and cash equivalents	$	99,168		$	84,719		$	105,048
Marketable securities		11,424			30,195			11,460
Receivables, net		157,116			111,959			138,200
Inventories, net		188,404			173,115			193,776
Other current assets, net		25,295			26,345			28,617
Total current assets		481,407			426,333			477,101

Property, plant, and equipment, net		93,518			91,639			94,472
Intangibles, net		17,760			19,827			18,208
Goodwill		67,295			67,735			67,130
Operating lease right-of-use assets		18,477			17,584			19,181
Deferred income tax assets		8,117			6,157			9,313
Other noncurrent assets, net		21,722			20,170			25,248
Total assets	$	708,296		$	649,445		$	710,653

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	58,535		$	58,908		$	60,036
Current portion of long-term debt		223			219			222
Other current liabilities		89,827			88,655			100,684
Total current liabilities		148,585			147,782			160,942

Pension benefits liabilities		4,812			5,660			4,892
Long-term debt		115,297			115,471			115,341
Operating lease liabilities		19,161			17,679			19,810
Deferred income tax liabilities		693			798			1,054
Other noncurrent liabilities		14,960			20,112			15,256
Total liabilities		303,508			307,502			317,295

Shareholders' equity:
Preferred stock		—			—			—
Common stock		19,090			19,056			19,063
Capital in excess of stated value		93,079			89,006			94,006
Retained earnings		593,475			532,410			579,000
Less treasury stock - at cost		(277,238	)		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(23,618	)		(21,291	)		(21,473	)
Total shareholders' equity		404,788			341,943			393,358
Total liabilities and shareholders' equity	$	708,296		$	649,445		$	710,653

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Three months ended
(in thousands)		November 30, 2022			November 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	18,217		$	7,901
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization		4,871			4,896
Provision for uncollectible accounts receivable		704			91
Deferred income taxes		1,129			1,841
Share-based compensation expense		1,473			1,222
Unrealized foreign currency transaction (gain) loss		(83	)		2,193
Other, net		289			292
Changes in assets and liabilities:
Receivables		(19,828	)		(17,816	)
Inventories		4,803			(31,674	)
Other current assets		3,526			5,965
Accounts payable		123			12,462
Other current liabilities		(11,898	)		(3,632	)
Other noncurrent assets and liabilities		1,356			(7,920	)
Net cash provided by (used in) operating activities		4,682			(24,179	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(3,798	)		(3,061	)
Purchases of marketable securities		—			(14,354	)
Proceeds from maturities of marketable securities		—			3,599
Other investing activities, net		(384	)		(342	)
Net cash used in investing activities		(4,182	)		(14,158	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		—			2,442
Common stock withheld for payroll tax obligations		(2,471	)		(1,181	)
Proceeds from employee stock purchase plan		98			93
Principal payments on long-term debt		(55	)		(54	)
Dividends paid		(3,742	)		(3,621	)
Net cash used in financing activities		(6,170	)		(2,321	)

Effect of exchange rate changes on cash and cash equivalents		(210	)		(1,730	)
Net change in cash and cash equivalents		(5,880	)		(42,388	)
Cash and cash equivalents, beginning of period		105,048			127,107
Cash and cash equivalents, end of period	$	99,168		$	84,719

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Lindsay Corporation Reports Fiscal 2023 First Quarter Results