Lindsay Reports Lower Q1 Profit; Reveals Capital Allocation Plan - Quick Facts

(RTTNews) - Irrigation equipment maker Lindsay Corp. (LNN) posted a decline in first-quarter net earnings to $10.23 million or $0.79 per share, from $14.73 million or $1.15 per share, reported a year back.

Quarterly revenues came in at $147.7 million, compared with $147.4 million in the prior-year period.

Further, the board is raising its regular quarterly cash dividend by 100% to $0.26 per share, payable February 28, 2014, to shareholders of record on February 14, 2014.

Separately, Lindsay announced its capital allocation plan and prioritization for use of cash. The company said its cash balance at November 30, 2013 amounted to $152 million, while the targeted cash balance is $60 million - $75 million, including international accounts. Priorities for uses of cash include investment in organic growth including capital expenditures and expansion of international markets; and annual increases in dividends to shareholders.

According to the company, acquisitions are expected in attaining its stated annual revenue growth goals of 10% - 15%, and sees acquisitions totaling $100 million - $150 million over the next 3 years, funded via. cash & debt. In addition, the firm would invest excess cash in opportunistic share buybacks, considering cyclical and seasonal fluctuations; and it hopes to opportunistically invest about $100 million - $150 million in share repurchases over the next couple of years.