LINDSAY CORP
For the period ended Feb 28, 2025. Filed Apr 3, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Feb 28, 2025 · Filed Apr 3, 2025
LNN$106.33-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-11-30; filed 2025-01-07.
0000950170-25-002840
ITEM 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-02-28; filed 2025-04-03.
0000950170-25-050389
ITEM 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 69 previous paragraphs and 84 current paragraphs.
40 unchanged; 22 reworded; 20 added; 6 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 1 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Net farm income –In February 2025, the U.S. Department of Agriculture (the “USDA”) released its initial forecast for 2025 U.S. net farm income, which is estimated to be $180.1 billion, an increase of 29 percent from 2024 U.S. net farm income of $139.1 billion. This forecast anticipates an increase in government support payments expected from supplemental and ad-hoc disaster support programs, while cash receipts from crops are expected to decrease 2 percent. Net farm income for 2024 declined 6 percent from the prior year.
Current report
In response to recently announced U.S. tariffs on imports from Canada, Mexico, China and other countries, the Company has implemented a comprehensive action plan that includes supplier negotiation, strategic inventory placement, and other supply chain initiatives to manage potential cost impacts. The impact of the proposed tariffs is anticipated to result in a marginal increase to the Company's cost of goods, which is expected to be passed through to the market through increased pricing of products. The potential impact of additional tariffs or retaliatory actions has been considered, and the Company plans to utilize its global footprint and supply chain to minimize the potential impact of these actions on its business and customers.
Current report
The forecasted increase in estimated 2025 net farm income is not expected to have a meaningful positive impact on demand for irrigation equipment as the increase results primarily from government support payments while crop receipts are expected to be slightly lower compared to the prior year.
Current report
International irrigation revenues for the three months ended February 28, 2025 of $71.0 million increased $20.8 million, or 42 percent, from $50.2 million for the three months ended February 29, 2024. The increase resulted primarily from revenues related to the large project in the MENA region as well as higher sales in other parts of this region. This increase was partially offset by lower sales in other international markets and the unfavorable impact of foreign currency translation of approximately $4.7 million compared to the prior year period. Unit sales volume in Brazil for the quarter was comparable to the prior year period.
Current report
Infrastructure segment revenues for the three months ended February 28, 2025 of $38.9 million increased $20.4 million, or 110 percent, from $18.5 million for the three months ended February 29, 2024. The increase was primarily driven by a large Road Zipper System project, valued at over $20 million, that was delivered in the current year period while leasing revenue and sales of road safety products were slightly lower compared to the prior year period.
Current report
Operating expenses of $30.4 million for the three months ended February 28, 2025 increased $3.5 million, or 13 percent, compared with $26.9 million for the three months ended February 29, 2024. The increase was primarily driven by higher incentive compensation expense, partially offset by lower salary and wage expense.
Current report
The Company recorded other income of $1.1 million and $0.6 million for the three months ended February 28, 2025 and February 29, 2024, respectively. The change resulted primarily from favorable changes in interest income and expense.
Current report
For the Six Months ended February 28, 2025 compared to the Six Months ended February 29, 2024
Current report
Includes $16.5 million and $14.9 million of corporate operating expenses for the six months ended February 28, 2025 and February 29, 2024, respectively.
Current report
Revenues
Current report
Operating revenues for the six months ended February 28, 2025 increased 13 percent to $353.3 million from $312.9 million for the six months ended February 29, 2024, as irrigation revenues increased $22.0 million and infrastructure revenues increased $18.4 million. The irrigation segment provided 84 percent of the Company’s revenue during the six months ended February 28, 2025 as compared to 87 percent for the six months ended February 29, 2024.
Current report
Infrastructure segment revenues for the six months ended February 28, 2025 of $58.1 million increased $18.4 million, or 46 percent, from $39.7 million for the six months ended February 29, 2024. The increase was primarily driven by a large Road Zipper System project, valued at over $20 million, that was delivered in the current year period while leasing revenue and sales of road safety products were slightly lower compared to the prior year period.
Current report
Gross Profit
Current report
Gross profit for the six months ended February 28, 2025 of $112.5 million increased 14 percent from $98.9 million for the six months ended February 29, 2024. The increase in gross profit resulted from higher revenues in irrigation and infrastructure. Gross margin was 31.8 percent of sales for the six months ended February 28, 2025 compared with 31.6 percent of sales for the six months ended February 29, 2024. Increased gross margin in infrastructure resulted primarily from a more favorable margin mix of revenues with higher Road Zipper System sales. This favorable impact was partially offset by lower irrigation gross margin resulting from a higher percentage of international project revenue in the current year that was dilutive to gross margin.
Current report
Operating Expenses
Current report
Operating expenses of $59.4 million for the six months ended February 28, 2025 increased $3.8 million compared with $55.7 million for the six months ended February 29, 2024. The increase was driven by higher incentive compensation expense, partially offset by lower salary and wage expense.
Current report
Other Income (Expense), net
Current report
The Company recorded other income for the six months ended February 28, 2025 of $2.2 million compared to other income of $0.5 million for the six months ended February 29, 2024. The increase in the current year period was driven by favorable changes related to interest income and interest expense. The current year period also includes $0.3 million of foreign currency gains while the same prior year period includes $0.2 million of foreign currency losses.
Current report
Income Taxes
Current report
The Company recorded income tax expense of $11.5 million and $10.6 million for the six months ended February 28, 2025 and February 29, 2024, respectively. The effective income tax rate was 20.8 percent and 24.1 percent for the six months ended February 28, 2025 and February 29, 2024, respectively. The lower current year period effective tax rate reflects a higher proportion of earnings in low tax jurisdictions, while the prior year period effective rate includes a discrete benefit of $1.1 million that did not repeat in the current year period.
Removed paragraphs (6)
Previous report
Net farm income –As of December 2024, the U.S. Department of Agriculture (the “USDA”) estimated 2024 U.S. net farm income to be $140.7 billion, a decrease of 4 percent from 2023 U.S. net farm income of $146.7 billion. This projected decrease is resulting primarily from a reduction in government support payments and cash receipts for crops that is being partially offset by lower input costs.
Previous report
The forecasted decline in estimated 2024 net farm income led to tempered demand for irrigation equipment which is expected to continue until the outlook for net farm income improves. The Company has been able to maintain its pricing for irrigation equipment for the most part, while inflationary pressure on steel and other raw material costs, as well as freight and logistics costs, have moderated.
Previous report
Infrastructure segment revenues for the three months ended November 30, 2024 of $19.2 million decreased $2.0 million, or 9 percent, from $21.2 million for the three months ended November 30, 2023. The decrease was primarily attributable to a difference in the timing of Road Zipper System lease revenues and lower sales of road safety products compared to the prior year.
Previous report
Operating expenses of $29.1 million for the three months ended November 30, 2024 increased $0.3 million, or 1 percent, compared with $28.8 million for the three months ended November 30, 2023. Higher administrative and selling expenses were partially offset by lower engineering and research expenses.
Previous report
The Company recorded other income of $1.2 million for the three months ended November 30, 2024 compared to other expense of $0.1 million for the three months ended November 30, 2023. The change resulted primarily from higher foreign currency transaction gains of approximately $0.7 million compared to the prior year. The current year was also favorably impacted by higher interest income and lower interest expense totaling $0.3 million compared to the prior year.
Previous report
November 30, 2024, compared to cash provided by operating activities of $21.9 million during the three months ended November 30, 2023. Higher net earnings in the current year were offset by increases in working capital.
Reworded paragraphs (22)
Previous wording
The Company’s accounting policies that are most important to the presentation of its results of operations and financial condition, and which require the greatest use of judgments and estimates by management, are designated as its critical accounting policies. See discussion of the Company’s critical accounting policies under Item 7 in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2024. Management periodically re-evaluates and adjusts its critical accounting policies as circumstances change. There were no significant changes in the Company’s critical accounting policies during the three months ended November 30, 2024.
Current wording
The Company’s accounting policies that are most important to the presentation of its results of operations and financial condition, and which require the greatest use of judgments and estimates by management, are designated as its critical accounting policies. See discussion of the Company’s critical accounting policies under Item 7 in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2024. Management periodically re-evaluates and adjusts its critical accounting policies as circumstances change. There were no significant changes in the Company’s critical accounting policies during the six months ended February 28, 2025.
Previous wording
Operating revenues for the three months ended November 30, 2024 were $166.3 million, an increase of 3 percent compared to $161.4 million for the three months ended November 30, 2023. Irrigation segment revenues increased 5 percent to $147.1 million and infrastructure segment revenues decreased 9 percent to $19.2 million. Net earnings for the three months ended November 30, 2024 were $17.2 million, or $1.57 per diluted share, compared to net earnings of $15.0 million, or $1.36 per diluted share, for the three months ended November 30, 2023. While operating income was similar to the prior year, net earnings were positively impacted by higher other income, driven primarily by an increase in interest income and favorable foreign currency translation results, and by a lower effective income tax rate.
Current wording
Operating revenues for the three months ended February 28, 2025 were $187.1 million, an increase of 23 percent compared to $151.5 million for the three months ended February 29, 2024. Irrigation segment revenues for the three months ended February 28, 2025 increased 11 percent to $148.1 million from the same prior year period, while infrastructure segment revenues increased 110 percent to $38.9 million. Net earnings for the three months ended February 28, 2025 were $26.6 million, or $2.44 per diluted share, compared to net earnings of $18.1 million, or $1.64 per diluted share, for the three months ended February 29, 2024. The increase in net earnings and earnings per share was driven primarily by higher operating income, as other income and the effective tax rate were comparable to the same prior year period.
Previous wording
Agricultural commodity prices – As of November 2024, U.S. corn prices have decreased approximately 8 percent and U.S. soybean prices have decreased approximately 27 percent from November 2023. The reduction in commodity prices is due primarily to higher production levels in calendar 2024 that are resulting in increased supply and higher commodity inventory levels. Agriculture commodity prices continue to fluctuate based on supply factors such as global production and inventory levels and demand factors such as food and feed consumption, biofuel production and the level of China's demand for agricultural imports.
Current wording
Agricultural commodity prices – As of February 2025, U.S. corn prices have increased approximately 20 percent and U.S. soybean prices have decreased approximately 9 percent from price levels prevailing in February 2024. Agriculture commodity prices fluctuate based on supply factors, such as global production and inventory levels of commodities, and demand factors such as food and feed consumption, biofuel production and the level of China's demand for agricultural imports.
Previous wording
The Agriculture Improvement Act of 2018 (the “Farm Bill”) was signed into law in December 2018 and provides a degree of certainty to growers, including funding for the Environmental Quality Incentives Program, which provides financial assistance to farmers to implement conservation practices, and is frequently used to assist in the purchase of center pivot irrigation systems. In November 2023, Congress voted to extend the Farm Bill through September 30, 2024, at which date it expired without new legislation or another extension.
Current wording
The Agriculture Improvement Act of 2018 (the “Farm Bill”) was signed into law in December 2018 and provides a degree of certainty to growers, including funding for the Environmental Quality Incentives Program, which provides financial assistance to farmers to implement conservation practices, and is frequently used to assist in the purchase of center pivot irrigation systems. In December 2024, Congress voted to extend the Farm Bill through September 30, 2025, at which date it will expire without new legislation or another extension.
Previous wording
Changes to U.S. income tax laws enacted in December 2017 increased the benefit of certain tax incentives, such as the Section 179 income tax deduction and Section 168 bonus depreciation, which are intended to encourage equipment purchases by allowing 100 percent of the cost of equipment to be treated as an expense in the year of purchase rather than amortized over its useful life. This benefit is being phased out by 20 percent per year over a five-year period, beginning in 2023. For calendar 2024, the allowable deduction is 60 percent of the cost of equipment and in calendar 2025 the allowable deduction drops to 40 percent.
Current wording
Changes to U.S. income tax laws enacted in December 2017 increased the benefit of certain tax incentives, such as the Section 179 income tax deduction and Section 168 bonus depreciation, which are intended to encourage equipment purchases by allowing 100 percent of the cost of equipment to be treated as an expense in the year of purchase rather than amortized over its useful life. This benefit is being phased out by 20 percent per year over a five-year period, beginning in 2023. For calendar 2025, the allowable deduction is 40 percent of the cost of equipment and in calendar 2026 the allowable deduction will drop to 20 percent.
Previous wording
Biofuel production continues to be a major demand driver for irrigated corn, sugar cane and soybeans as these crops are used in high volumes to produce ethanol and biodiesel. On June 21, 2023, the U.S. Environmental Protection Agency (“EPA”) announced a final rule setting biofuel volume requirements for the Renewable Fuels Standard (RFS) program for 2023, 2024, and 2025. The final volume requirements reflect an increase in total gallons of renewable fuel of approximately 3 to 4 percent in each successive year.
Current wording
Biofuel production continues to be a major demand driver for irrigated corn, sugar cane and soybeans as these crops are used in high volumes to produce ethanol and biodiesel. The U.S. Environmental Protection Agency (“EPA”) establishes biofuel volume requirements for the Renewable Fuels Standard (RFS). Under the current RFS rule in place, renewable fuel volume targets for 2025 reflect an increase in total gallons of approximately 4 percent compared to 2024.
Previous wording
The backlog of unshipped orders at November 30, 2024 was $168.2 million compared with $86.8 million at November 30, 2023. Included in these backlogs are amounts of $17.4 million and $2.8 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The backlog in both segments was higher compared to the prior year, with the increase in irrigation backlog resulting from the addition of the large project in the MENA region. The Company’s backlog can fluctuate from period to period due to the seasonality, cyclicality, timing and execution of contracts. Backlog typically represents long-term projects as well as short lead-time orders, and therefore is generally not a good indication of the next fiscal quarter’s revenues.
Current wording
The backlog of unshipped orders at February 28, 2025 was $127.0 million compared with $94.2 million at February 29, 2024. Included in these backlogs are amounts of $11.9 million and $20.3 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The increase in backlog is primarily attributed to the large irrigation project in the MENA region. The Company’s backlog can fluctuate from period to period due to the seasonality, cyclicality, timing and execution of contracts. Backlog typically represents long-term projects as well as short lead-time orders, and therefore is generally not a good indication of the next fiscal quarter’s revenues.
Previous wording
The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the three months ended November 30, 2024 and 2023. It should be read together with the industry segment information in Note 13 to the condensed consolidated financial statements:
Current wording
The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the three months ended February 28, 2025 and February 29, 2024. It should be read together with the business segments information in Note 14 to the condensed consolidated financial statements:
Previous wording
Includes $8.0 million and $7.9 million of corporate operating expenses for the three months ended November 30, 2024 and 2023, respectively.
Current wording
Includes $8.5 million and $7.1 million of corporate operating expenses for the three months ended February 28, 2025 and February 29, 2024, respectively.
Previous wording
Operating revenues for the three months ended November 30, 2024 increased 3 percent to $166.3 million from $161.4 million for the three months ended November 30, 2023, as irrigation revenues increased $6.9 million and infrastructure revenues decreased $2.0 million. The irrigation segment provided 88 percent of the Company’s revenue during the three months ended November 30, 2024 as compared to 87 percent for the three months ended November 30, 2023.
Current wording
Operating revenues for the three months ended February 28, 2025 increased 23 percent to $187.1 million from $151.5 million for the three months ended February 29, 2024, as irrigation revenues increased $15.1 million and infrastructure revenues increased $20.4 million compared to the prior year period. The irrigation segment provided 79 percent of the Company’s revenue during the three months ended February 28, 2025 as compared to 88 percent for the three months ended February 29, 2024.
Previous wording
North America irrigation revenues for the three months ended November 30, 2024 of $77.7 million decreased $11.7 million, or 13 percent, from $89.4 million for the three months ended November 30, 2023. The decrease resulted primarily from lower unit sales volume, as well as a less favorable mix of shorter machines, and slightly lower average selling prices compared to the prior year. An anticipated reduction in net farm income for calendar 2024 has resulted in lower demand for irrigation equipment.
Current wording
North America irrigation revenues for the three months ended February 28, 2025 of $77.1 million decreased $5.7 million, or 7 percent, from $82.8 million for the three months ended February 29, 2024. The decrease resulted primarily from lower unit sales volume of irrigation equipment, along with slightly lower average selling prices and lower sales of replacement parts compared to the prior year period. Lower net farm income for calendar 2024 has tempered demand for irrigation equipment.
Previous wording
Gross profit for the three months ended November 30, 2024 of $50.0 million was comparable to $49.9 million for the three months ended November 30, 2023. Gross margin was 30.0 percent of sales for the three months ended November 30, 2024 compared with 30.9 percent of sales for the three months ended November 30, 2023. Lower irrigation gross margin resulted from a higher proportion of international irrigation project revenue in the current year that was dilutive to gross margin. This impact was partially offset by higher gross margin in infrastructure resulting from improved manufacturing efficiency and lower operating expenses.
Current wording
Gross profit for the three months ended February 28, 2025 of $62.5 million increased 28 percent from $49.0 million for the three months ended February 29, 2024. The increase in gross profit resulted primarily from higher revenues in irrigation and infrastructure. Gross margin was 33.4 percent of sales for the three months ended February 28, 2025 compared with 32.3 percent of sales for the three months ended February 29, 2024. Increased gross margin in infrastructure resulted primarily from a more favorable margin mix of revenues with higher Road Zipper System sales. This favorable impact was partially offset by lower irrigation gross margin resulting from a higher percentage of international project revenue in the current year period that was dilutive to gross margin.
Previous wording
The Company recorded income tax expense of $4.9 million and $6.0 million for the three months ended November 30, 2024 and 2023, respectively. The effective income tax rate was 22.1 percent and 28.5 percent for the three months ended November 30, 2024 and 2023, respectively. The lower effective income tax rate resulted primarily from an increased proportion of earnings in lower rate foreign jurisdictions compared to the prior year. The impact of discrete items was minimal in both periods.
Current wording
The Company recorded income tax expense of $6.6 million and $4.6 million for the three months ended February 28, 2025 and February 29, 2024, respectively. The effective income tax rate was 20.0 percent and 20.2 percent for the three months ended February 28, 2025 and February 29, 2024, respectively. The current year period effective tax rate reflects a higher proportion of earnings in lower tax rate jurisdictions, while the prior year period effective rate includes a discrete benefit of $1.1 million that did not repeat in the current year period.
Previous wording
International irrigation revenues for the three months ended November 30, 2024 of $69.4 million increased $18.6 million, or 37 percent, from $50.8 million for the three months ended November 30, 2023. The increase resulted primarily from revenues related to shipments for a large project in the MENA region, along with higher sales in Europe and other parts of Latin America compared to the prior year. This increase was partially offset by lower sales in Brazil, where market demand remains lower than the prior year due to lower local commodity prices that have had a negative impact on farmer profitability and liquidity. The current year also includes an unfavorable impact of foreign currency translation of $2.1 million compared to the prior year.
Current wording
International irrigation revenues for the six months ended February 28, 2025 of $140.3 million increased $39.4 million, or 39 percent, from $101.0 million for the six months ended February 29, 2024. The increase resulted primarily from revenues related to shipments for a large project in the MENA region and was partially offset by lower sales volumes in Brazil. In Brazil, market demand has declined due to a significant drop in local commodity prices that has had a negative impact on farmer profitability and liquidity. The current year period was also impacted by the unfavorable effects of foreign currency translation of approximately $6.9 million compared to the prior year period.
Previous wording
The Company's cash and cash equivalents totaled $194.1 million at November 30, 2024 compared with $190.9 million at August 31, 2024, and cash, cash equivalents, and marketable securities totaled $175.7 million at November 30, 2023. The increase resulted from the excess of cash provided by operating activities over the cash used in investing and financing activities. The Company requires cash for financing its receivables and inventories, paying operating expenses and capital expenditures, and for dividends and share repurchases. The Company meets its liquidity needs and finances its capital expenditures from its available cash and funds provided by operations along with borrowings under its credit arrangements described below. In the normal course of business, the Company enters into contracts and commitments which obligate the Company to make future payments. The Company does not have any additional off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. The Company believes its current cash resources, projected operating cash flow, and remaining capacity under its continuing bank lines of credit are sufficient to cover all its expected working capital needs, planned capital expenditures and dividends. The Company may require additional borrowings to fund potential acquisitions in the future.
Current wording
The Company's cash, cash equivalents, and marketable securities totaled $186.7 million at February 28, 2025 compared with $150.6 million at February 29, 2024 and $190.9 million at August 31, 2024. The Company requires cash for financing its receivables and inventories, paying operating expenses and capital expenditures, and for dividends and share repurchases. The Company meets its liquidity needs and finances its capital expenditures from its available cash and funds provided by operations along with borrowings under its credit arrangements described below. The Company’s investments in marketable securities consist of investment grade corporate bonds and commercial paper. In the normal course of business, the Company enters into contracts and commitments which obligate the Company to make future payments. The Company does not have any additional off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. The Company believes its current cash resources, investments in marketable securities, projected operating cash flow, and remaining capacity under its continuing bank lines of credit are sufficient to cover all its expected working capital needs, planned capital expenditures and dividends. The Company may require additional borrowings to fund potential acquisitions in the future.
Previous wording
The Company’s total cash and cash equivalents held by foreign subsidiaries were approximately $94.1 million, $70.8 million, and $84.3 million as of November 30, 2024, November 30, 2023, and August 31, 2024, respectively. The Company considers earnings in foreign subsidiaries to be indefinitely reinvested and would need to accrue and pay incremental state, local, and foreign taxes if such earnings were repatriated to the United States. The Company does not intend to repatriate the funds and does not expect these funds to have a significant impact on the Company’s overall liquidity.
Current wording
The Company’s total cash and cash equivalents held by foreign subsidiaries were approximately $93.8 million, $57.3 million, and $84.3 million as of February 28, 2025, February 29, 2024, and August 31, 2024, respectively. The Company considers earnings in foreign subsidiaries to be indefinitely reinvested and would need to accrue and pay incremental state, local, and foreign taxes if such earnings were repatriated to the United States. The Company does not intend to repatriate the funds and does not expect these funds to have a significant impact on the Company’s overall liquidity.
Previous wording
Net working capital was $372.3 million at November 30, 2024, as compared with $359.3 million at November 30, 2023 and $367.4 million at August 31, 2024. Cash provided by operating activities totaled $21.6 million during the three months ended
Current wording
Net working capital was $381.8 million at February 28, 2025, as compared with $371.4 million at February 29, 2024 and $367.4 million at August 31, 2024. Cash provided by operating activities totaled $33.9 million during the six months ended February 28, 2025, compared to cash provided by operating activities of $12.1 million during the six months ended February 29, 2024. The current year period included higher net earnings and a more favorable impact of changes in working capital compared to the prior year period.
Previous wording
Cash flows used in investing activities totaled $8.8 million during the three months ended November 30, 2024 compared to $18.2 million during the three months ended November 30, 2023. Purchases of property, plant, and equipment were $9.1 million, compared to $6.9 million in the prior year. The prior year also included net purchases of marketable securities of $10.7 million, while no such purchases or maturities occurred in the current year.
Current wording
Cash flows used in investing activities totaled $39.2 million during the six months ended February 28, 2025 compared to $30.8 million during the six months ended February 29, 2024. The current year includes the purchase of a minority interest in Pessl Instruments for $5.8 million. Purchases of property, plant, and equipment were $18.9 million, compared to $18.8 million in the same prior year period.
Previous wording
Cash flows used in financing activities totaled $5.3 million during the three months ended November 30, 2024 and were comparable to cash flows used in financing activities of $5.4 million during the three months ended November 30, 2023.
Current wording
Cash flows used in financing activities totaled $9.8 million during the six months ended February 28, 2025 compared to cash flows used in financing activities of $8.6 million during the six months ended February 29, 2024. During the current year, the Company repurchased $1.4 million of common stock.
Previous wording
In the first quarter of fiscal 2025, the Company paid a quarterly cash dividend to stockholders of $0.36 per common share, or $3.9 million, compared to a quarterly cash dividend of $0.35 per common share, or $3.9 million, in the first quarter of fiscal 2024.
Current wording
In the second quarter of fiscal 2025, the Company paid a quarterly cash dividend to stockholders of $0.36 per common share, or $3.9 million, compared to a quarterly cash dividend of $0.35 per common share, or $3.9 million, in the second quarter of fiscal 2024.
Previous wording
During the three months ended November 30, 2024, the amount of common stock repurchased by the Company under the program in open market transactions was immaterial. There were no shares repurchased during the three months ended November 30, 2023. As of November 30, 2024, the repurchased shares were held as treasury stock and $41.4 million of the authorization remained available for future share repurchases.
Current wording
During the three and six months ended February 28, 2025, the Company repurchased approximately 12,000 shares of its common stock under the program in open market transactions for $1.4 million, inclusive of excise taxes. There were no shares repurchased during the three or six months ended February 29, 2024. As of February 28, 2025, the repurchased shares were held as treasury stock and $40.0 million of the authorization remained available for future share repurchases.
Previous wording
-23 - potential future acquisitions. At November 30, 2024 and 2023, the Company had no outstanding borrowings under the Revolving Credit Facility. The amount of borrowings available at any time under the Revolving Credit Facility is reduced by the amount of standby letters of credit issued by Wells Fargo then outstanding. At November 30, 2024, the Company had the ability to borrow up to $50.0 million under the Revolving Credit Facility. The Revolving Credit Facility may be increased by up to an additional $50.0 million at any time, subject to additional commitment approval. Borrowings under the Revolving Credit Facility bear interest at a variable rate equal to the Secured Overnight Financing Rate (“SOFR”) plus a margin of between 100 and 210 basis points depending on the Company’s leverage ratio then in effect (which resulted in a variable rate of 5.94 percent at November 30, 2024), subject to adjustment as set forth in the loan documents for the Revolving Credit Facility. Interest is paid on a monthly to quarterly basis depending on loan type. The Company currently pays an annual commitment fee on the unused portion of the Revolving Credit Facility. The fee is between 0.125 percent and 0.2 percent on the unused balance depending on the Company’s leverage ratio then in effect (which resulted in a fee of 0.125 percent at November 30, 2024).
Current wording
Revolving Credit Facility. The Company has outstanding a $50.0 million unsecured Amended and Restated Revolving Credit Facility (the “Revolving Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”) expiring August 26, 2026. The Company intends to use borrowings under the Revolving Credit Facility for working capital purposes and to fund acquisitions. At February 28, 2025 and February 29, 2024, the Company had no outstanding borrowings under the Revolving Credit Facility. The amount of borrowings available at any time under the Revolving Credit Facility is reduced by the amount of standby letters of credit issued by Wells Fargo then outstanding. At February 28, 2025, the Company had the ability to borrow up to $50.0 million under the Revolving Credit Facility. The Revolving Credit Facility may be increased by up to an additional $50.0 million at any time, subject to additional commitment approval. Borrowings under the Revolving Credit Facility bear interest at a variable rate equal to the Secured Overnight Financing Rate ("SOFR") plus a margin of between 100 and 210 basis points depending on the Company’s leverage ratio then in effect (which resulted in a variable rate of 5.74 percent at February 28, 2025), subject to adjustment as set forth in the loan documents for the Revolving Credit Facility. Interest is paid on a monthly to quarterly basis depending on loan type. The Company currently pays an annual commitment fee on the unused portion of the Revolving Credit Facility. The fee is between 0.125 percent and 0.2 percent on the unused balance depending on the Company’s leverage ratio then in effect (which resulted in a fee of 0.125 percent at February 28, 2025).
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the six months ended February 28, 2025 and February 29, 2024. It should be read together with the business segments information in Note 14 to the condensed consolidated financial statements:
Current report — wording carried from elsewhere
North America irrigation revenues for the six months ended February 28, 2025 of $154.9 million decreased $17.3 million, or 10 percent, from $172.3 million for the six months ended February 29, 2024. The decrease resulted primarily from lower unit sales volume, as well as a less favorable mix of shorter machines, and slightly lower average selling prices compared to the prior year period.
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Revolving Credit Facility. The Company has outstanding a $50.0 million unsecured Amended and Restated Revolving Credit Facility (the “Revolving Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”) expiring August 26, 2026. The Company intends to use borrowings under the Revolving Credit Facility for working capital purposes and to fund