Lindsay Corporation (LNN) swung to a net profit for the quarter ended Feb. 28, 2017. The company has made a net profit of $5.01 million, or $ 0.47 a share in the quarter, against a net loss of $4.13 million, or $0.37 a share in the last year period.
Revenue during the quarter went up marginally by 2.95 percent to $124.12 million from $120.57 million in the previous year period. Gross margin for the quarter contracted 37 basis points over the previous year period to 26.54 percent. Operating margin for the quarter period stood at positive 6.87 percent as compared to a negative 3.89 percent for the previous year period.
Operating income for the quarter was $8.52 million, compared with an operating loss of $4.69 million in the previous year period.
Rick Parod, president and chief executive officer, commented, "In the irrigation segment, orders and project levels improved in the second quarter after experiencing a slow start to the year in the first quarter. Strong sales growth in international irrigation reflects improving demand and increased project activity. I am pleased with the U.S. irrigation gross margin improvement achieved, especially in view of raw material inflation experienced in the quarter. In the infrastructure segment, second quarter revenues were modestly improved over the prior year in a seasonally lower period, and we continue to see improved operating performance in the segment."
Operating cash flow turns positive
Lindsay Corporation has generated cash of $10.72 million from operating activities during the first half as against cash outgo of $4.97 million in the last year period.
The company has spent $2.49 million cash to meet investing activities during the first six months as against cash outgo of $4.51 million in the last year period.
The company has spent $6.27 million cash to carry out financing activities during the first six months as against cash outgo of $39.09 million in the last year period.
Cash and cash equivalents stood at $102.82 million as on Feb. 28, 2017, up 14.86 percent or $13.30 million from $89.52 million on Feb. 29, 2016.
Debt remains almost stable
Total debt of Lindsay Corporation remained almost stable for the quarter at $117.08 million, when compared with the last year period. Total debt was 23.86 percent of total assets as on Feb. 28, 2017, compared with 23.67 percent on Feb. 29, 2016. Debt to equity ratio was almost stable at 0.46 as on Feb. 28, 2017, when compared with the last year.
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