##### 



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (MARK ONE)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended November 30, 2006
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 Commission File Number 1-13419
 Lindsay Corporation
  Delaware
    
    47-0554096(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)2707 North 108th Street, Suite 102, Omaha, Nebraska
    
    68164(Address of principal executive offices)
    
    (Zip Code)
 402-428-2131
 þ o
  o þ o
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Lindsay Corporation and Subsidiaries
INDEX FORM 10-Q
 Page No.Part I  FINANCIAL INFORMATIONITEM 1 Condensed Consolidated Financial StatementsConsolidated Balance Sheets, November 30, 2006 and 2005
and August 31, 2006
    
    
    3Consolidated Statements of Operations for the three-months
ended November 30, 2006 and 2005
    
    
    4Consolidated Statements of Cash Flows for the three-months
ended November 30, 2006 and 2005
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6-12ITEM 2 Managements Discussion and Analysis of Results
of Operations and Financial Condition
    
    
    13-17ITEM 3 Quantitative and Qualitative Disclosures about
Market Risk
    
    
    17ITEM 4 Controls and Procedures
    
    
    18Part II  OTHER INFORMATIONITEM 1Legal Proceedings
    
    
    18ITEM 1ARisk Factors
    
    
    18ITEM 2Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    18ITEM 3Defaults Upon Senior Securities
    
    
    19ITEM 4Submission of Matters to a Vote of Security Holders
    
    
    19ITEM 5Other Information
    
    
    19ITEM 6Exhibits
    
    
    19SIGNATURE
    
    
    20
  - 2 -




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##### 



Part I  FINANCIAL INFORMATION
 
 ITEM 1  Condensed Consolidated Financial Statements
 Lindsay Corporation and Subsidiaries
 
 CONSOLIDATED BALANCE SHEETS
 November 30, 2006 and 2005 and August 31, 2006
 (Unaudited)
    
    
    (Unaudited)November
    
    
    November
    
    
    August($ in thousands, except par values)
    
    2006
    
    
    2005
    
    
    2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    19,699
    
    
    $
    21,991
    
    
    $
    43,344Marketable securities
    
    
    21,792
    
    
    
    12,570
    
    
    
    10,179Receivables, net (net of allowance, $696, $711 and $595, respectively)
    
    
    46,539
    
    
    
    33,949
    
    
    
    38,115Inventories, net
    
    
    34,656
    
    
    
    22,707
    
    
    
    26,818Deferred income taxes
    
    
    
    
    
    
    3,617
    
    
    
    Other current assets
    
    
    4,602
    
    
    
    3,454
    
    
    
    3,947Total current assets
    
    
    127,288
    
    
    
    98,288
    
    
    
    122,403Long-term marketable securities
    
    
    4,378
    
    
    
    14,772
    
    
    
    5,778Property, plant and equipment, net
    
    
    27,157
    
    
    
    17,274
    
    
    
    26,981Other intangible assets, net
    
    
    20,704
    
    
    
    644
    
    
    
    20,998Goodwill, net
    
    
    11,134
    
    
    
    1,372
    
    
    
    11,129Other noncurrent assets
    
    
    6,949
    
    
    
    5,511
    
    
    
    4,945Total assets
    
    $
    197,610
    
    
    $
    137,861
    
    
    $
    192,234LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    12,951
    
    
    $
    8,554
    
    
    $
    9,565Current portion of long-term debt
    
    
    4,286
    
    
    
    
    
    
    
    4,286Other current liabilities
    
    
    25,931
    
    
    
    14,130
    
    
    
    23,619Total current liabilities
    
    
    43,168
    
    
    
    22,684
    
    
    
    37,470Pension benefits liabilities
    
    
    5,047
    
    
    
    5,183
    
    
    
    5,003Long-term debt
    
    
    24,643
    
    
    
    
    
    
    
    25,714Other noncurrent liabilities
    
    
    1,042
    
    
    
    162
    
    
    
    3,147Total liabilities
    
    
    73,900
    
    
    
    28,029
    
    
    
    71,334Shareholders 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
17,678,151, 17,568,931 and 17,600,686 shares issued and
outstanding in November 2006 and 2005 and August 2005,
respectively)
    
    
    17,678
    
    
    
    17,569
    
    
    
    17,600Capital in excess of stated value
    
    
    7,667
    
    
    
    4,037
    
    
    
    5,896Retained earnings
    
    
    193,347
    
    
    
    183,264
    
    
    
    192,319Less treasury stock (at cost, 6,048,448 shares)
    
    
    (96,547
    )
    
    
    (96,547
    )
    
    
    (96,547
    )Accumulated other comprehensive income, net
    
    
    1,565
    
    
    
    1,509
    
    
    
    1,632Total shareholders equity
    
    
    123,710
    
    
    
    109,832
    
    
    
    120,900Total liabilities and shareholders equity
    
    $
    197,610
    
    
    $
    137,861
    
    
    $
    192,234
  - 3 -




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##### 



Lindsay Corporation and Subsidiaries
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 For the three-months November 30, 2006 and 2005
(Unaudited)
 Three Months EndedNovember
    
    
    November(in thousands, except per share amounts)
    
    2006
    
    
    2005Operating revenues
    
    $
    51,532
    
    
    $
    39,504Cost of operating revenues
    
    
    39,067
    
    
    
    32,077Gross profit
    
    
    12,465
    
    
    
    7,427Operating expenses:Selling expense
    
    
    3,613
    
    
    
    2,848General and administrative expense
    
    
    5,435
    
    
    
    3,569Engineering and research expense
    
    
    806
    
    
    
    647Total operating expenses
    
    
    9,854
    
    
    
    7,064Operating income
    
    
    2,611
    
    
    
    363Other income (expense):Interest expense
    
    
    (487
    )
    
    
    (17
    )Interest income
    
    
    636
    
    
    
    444Other, net
    
    
    (16
    )
    
    
    2Earnings before income taxes
    
    
    2,744
    
    
    
    792Income tax provision
    
    
    961
    
    
    
    281Net earnings
    
    $
    1,783
    
    
    $
    511Basic net earnings per share
    
    $
    0.15
    
    
    $
    0.04Diluted net earnings per share
    
    $
    0.15
    
    
    $
    0.04Average shares outstanding
    
    
    11,577
    
    
    
    11,523Diluted effect of stock equivalents
    
    
    279
    
    
    
    143Average shares outstanding assuming dilution
    
    
    11,856
    
    
    
    11,666Cash dividends per share
    
    $
    0.065
    
    
    $
    0.060
  - 4 -




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##### 



Lindsay Corporation and Subsidiaries
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 For the three-months ended November 30, 2006 and 2005
 (Unaudited)
 November
    
    
    November($ in thousands)
    
    2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIES:Net earnings
    
    $
    1,783
    
    
    $
    511Adjustments to reconcile net earnings to net cash used in
operating activities:Depreciation and amortization
    
    
    1,531
    
    
    
    831Amortization of marketable securities premiums,
net
    
    
    18
    
    
    
    63(Gain) loss on sale of property, plant and
equipment
    
    
    (17
    )
    
    
    57Provision for uncollectible accounts
receivable
    
    
    10
    
    
    
    23Deferred income taxes
    
    
    392
    
    
    
    (444
    )Stock-based compensation expense
    
    
    431
    
    
    
    356Other, net
    
    
    78
    
    
    
    (42
    )Changes in assets and liabilities:Receivables, net
    
    
    (8,415
    )
    
    
    (4,182
    )Inventories, net
    
    
    (7,775
    )
    
    
    (3,428
    )Other current assets
    
    
    (660
    )
    
    
    (427
    )Accounts payable, trade
    
    
    3,311
    
    
    
    1,896Other current liabilities
    
    
    (637
    )
    
    
    (389
    )Current taxes payable
    
    
    (1,277
    )
    
    
    833Other noncurrent assets and
liabilities
    
    
    (628
    )
    
    
    314Net cash used in operating activities
    
    
    (11,855
    )
    
    
    (4,028
    )CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of property, plant and
equipment
    
    
    (1,232
    )
    
    
    (819
    )Proceeds from sale of property, plant and
equipment
    
    
    16
    
    
    
    5Purchases of marketable securities
available-for-sale
    
    
    (44,245
    )
    
    
    Proceeds from maturities or sales of marketable
securities available-for-sale
    
    
    34,060
    
    
    
    1,805Net cash (used in) provided by investing activities
    
    
    (11,401
    )
    
    
    991CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from issuance of common stock under stock
option plan
    
    
    1,247
    
    
    
    9Principal payments on long-term
borrowing
    
    
    (1,071
    )
    
    
    Excess tax benefits from stock-based
compensation
    
    
    93
    
    
    
    Dividends paid
    
    
    (755
    )
    
    
    (691
    )Net cash used in financing
activities
    
    
    (486
    )
    
    
    (682
    )Effect of exchange rate changes on
cash
    
    
    97
    
    
    
    146Net decrease in cash and cash
equivalents
    
    
    (23,645
    )
    
    
    (3,573
    )Cash and cash equivalents, beginning of
period
    
    
    43,344
    
    
    
    25,564Cash and cash equivalents, end of
period
    
    $
    19,699
    
    
    $
    21,991
  - 5 -




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##### 



Lindsay Corporation and Subsidiaries
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
  (1) Condensed Consolidated Financial Statements
    (2) Cash Equivalents, Marketable Securities, and Long-term Marketable Securities
    Three-months endedNovember 30,$ in thousands
    
    2006
    
    2005Proceeds from maturities or sales
    
    $
    34,060
    
    
    $
    1,805Gross realized gains
    
    $
    
    
    
    $
    Gross realized (losses)
    
    $
    
    
    
    $
    
 - 6 -




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##### 



Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized$ in thousands
    
    cost
    
    
    gains
    
    
    (losses)
    
    
    Fair valueAs of November 30, 2006:Due within one
year
    
    $
    21,826
    
    
    $
    
    
    
    $
    (34
    )
    
    $
    21,792Due after one year through five
years
    
    
    4,446
    
    
    
    
    
    
    
    (68
    )
    
    
    4,378$
    26,272
    
    
    $
    
    
    
    $
    (102
    )
    
    $
    26,170As of November 30, 2005:Due within one year
    
    $
    12,629
    
    
    $
    13
    
    
    $
    (72
    )
    
    $
    12,570Due after one year through five
years
    
    
    14,981
    
    
    
    1
    
    
    
    (210
    )
    
    
    14,772$
    27,610
    
    
    $
    14
    
    
    $
    (282
    )
    
    $
    27,342As of August 31, 2006:Due within one year
    
    $
    10,238
    
    
    $
    3
    
    
    $
    (62
    )
    
    $
    10,179Due after one year
through five
years
    
    
    5,867
    
    
    
    
    
    
    
    (89
    )
    
    
    5,778$
    16,105
    
    
    $
    3
    
    
    $
    (151
    )
    
    $
    15,957
 (3) Inventories
  November
    
    
    November
    
    
    August$ in thousands
    
    2006
    
    
    2005
    
    
    2006Inventory:First-in, first-out (FIFO)
inventory
    
    $
    22,172
    
    
    $
    18,104
    
    
    $
    16,301LIFO
reserves
    
    
    (6,381
    )
    
    
    (3,904
    )
    
    
    (5,032
    )LIFO
inventory
    
    
    15,791
    
    
    
    14,200
    
    
    
    11,269Weighted average
inventory
    
    
    9,664
    
    
    
    9,087
    
    
    
    8,491Other FIFO
inventory
    
    
    9,862
    
    
    
    
    
    
    
    7,694Obsolescence
reserve
    
    
    (661
    )
    
    
    (580
    )
    
    
    (636
    )Total
inventories
    
    $
    34,656
    
    
    $
    22,707
    
    
    $
    26,818
  November
    
    November
    
    August2006
    
    2005
    
    2006Raw materials
    
    
    17
    %
    
    
    26
    %
    
    
    39
    %Work in process
    
    
    5
    %
    
    
    9
    %
    
    
    17
    %Finished goods and purchased parts
    
    
    78
    %
    
    
    65
    %
    
    
    44
    %
 - 7 -




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(4) Property, Plant and Equipment
  November
    
    
    November
    
    
    August$ in thousands
    
    2006
    
    
    2005
    
    
    2006Property, plant and equipment:Land
    
    $
    1,228
    
    
    $
    336
    
    
    $
    1,222Buildings
    
    
    12,269
    
    
    
    10,651
    
    
    
    12,229Equipment
    
    
    44,894
    
    
    
    41,169
    
    
    
    43,687Other
    
    
    4,386
    
    
    
    4,604
    
    
    
    4,562Total property, plant and
equipment
    
    
    62,777
    
    
    
    56,760
    
    
    
    61,700Accumulated depreciation and
amortization
    
    
    (42,143
    )
    
    
    (39,486
    )
    
    
    (41,402
    )Property, plant and equipment, net
    
    $
    20,634
    
    
    $
    17,274
    
    
    $
    20,298Rental property:Machines
    
    $
    2,322
    
    
    $
    
    
    
    $
    2,322Barriers
    
    
    4,519
    
    
    
    
    
    
    
    4,519Total rental
property
    
    
    6,841
    
    
    
    
    
    
    
    6,841Accumulated depreciation and
amortization
    
    
    (318
    )
    
    
    
    
    
    
    (158
    )Total rental property, net
    
    
    6,523
    
    
    
    
    
    
    
    6,683Property, plant and equipment,
net
    
    $
    27,157
    
    
    $
    17,274
    
    
    $
    26,981
  (5) Credit Arrangements
     November
    
    
    November
    
    
    August($ in thousands)
    
    2006
    
    
    2005
    
    
    2006Term note
payable
    
    $
    28,929
    
    
    $
    
    
    
    $
    30,000Less current
portion
    
    
    (4,286
    )
    
    
    
    
    
    
    (4,286
    )Term note payable
less current
portion
    
    $
    24,643
    
    
    $
    
    
    
    $
    25,714
 - 8 -




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##### 



2007
    
    $
    4,2862008
    
    
    4,2862009
    
    
    4,2862010
    
    
    4,2862011
    
    
    4,286Thereafter
    
    
    7,499$
    28,929
 Subsequent Event
 (6) Net Earnings per Share
    November 30, 2006
    
    
    November 30, 2005Weighted average
    
    
    Weighted averageShares
    
    price
    
    
    Expire
    
    
    Shares
    
    
    price
    
    
    Expire
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    September, 2007
    


    

    n/a
    
    
    n/a
    
    
    
    545,506
    
    
    $
    24.27
    
    
      November, 2015
 (7) Industry Segment Information
     - 9 -




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##### 



For the three-months ended November 30($ in millions)
    
    2006
    
    
    2005Operating revenues:Irrigation
    
    $
    37,289
    
    
    $
    34,142Infrastructure
    
    
    14,243
    
    
    
    5,362Total operating revenues
    
    $
    51,532
    
    
    $
    39,504Operating income:Irrigation
    
    $
    4,115
    
    
    $
    3,780Infrastructure
    
    
    4,737
    
    
    
    799Segment operating income
    
    
    8,852
    
    
    
    4,579Unallocated general & administrative and engineering &
research expenses
    
    
    6,241
    
    
    
    4,216Interest and other income, net
    
    
    133
    
    
    
    429Earnings before income taxes
    
    $
    2,744
    
    
    $
    792
 (8) Comprehensive Income
  For the three-months endedNovember 30,
    
    
    November 30,$ in thousands
    
    2006
    
    
    2005Comprehensive income:Net
earnings
    
    $
    1,783
    
    
    $
    511Other comprehensive income:Unrealized gain (losses) on
securities, net of tax
    
    
    28
    
    
    
    (31
    )Unrealized loss on cash flow
hedge, net of tax
    
    
    (155
    )
    
    
    Foreign currency
translation
    
    
    60
    
    
    
    365Total comprehensive
income
    
    $
    1,716
    
    
    $
    845
 (9) Guarantees and Warranties
 Guarantees of Customer Equipment Financing
   - 10 -




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##### 



Product Warranties
   For the three-months endedNovember 30,$ in thousands
    
    2006
    
    
    2005Warranties:Product warranty accrual balance,
beginning of period
    
    $
    1,996
    
    
    $
    2,456Liabilities accrued for warranties
during the period
    
    
    375
    
    
    
    277Warranty claims paid during the
period
    
    
    (477
    )
    
    
    (337
    )Product warranty accrual balance, end of
period
    
    $
    1,894
    
    
    $
    2,396
 (10) Retirement Plan
  For the three-months endedNovember 30,
    
    
    November 30,$ in thousands
    
    2006
    
    
    2005Net periodic benefit cost:Service cost
    
    $
    8
    
    
    $
    5Interest cost
    
    
    77
    
    
    
    67Net amortization and deferral
    
    
    40
    
    
    
    39Total net periodic benefit cost
    
    $
    125
    
    
    $
    111
 (11) Commitments and Contingencies
  - 11 -




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##### 



(12) Income Taxes
    (13) Acquisitions
   (14) Subsequent Event
     - 12 -




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##### 



ITEM 2  Managements Discussion and Analysis of Results of Operations and Financial Condition
 Concerning Forward-Looking Statements
   Accounting Policies
   Overview
    - 13 -




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##### 



Results of Operations
 For the Three-Months ended November 30, 2006
  For the three-months endedPercentNovember
    
    November
    
    Increase($ in thousands)
    
    2006
    
    2005
    
    (decrease)ConsolidatedOperating revenues
    
    $
    51,532
    
    
    $
    39,504
    
    
    
    30.4
    %Cost of operating
revenues
    
    $
    39,067
    
    
    $
    32,077
    
    
    
    21.8Gross profit
    
    $
    12,465
    
    
    $
    7,427
    
    
    
    67.8Gross margin
    
    
    24.2
    %
    
    
    18.8
    %Operating
expenses
    
    $
    9,854
    
    
    $
    7,064
    
    
    
    39.5Operating
income
    
    $
    2,611
    
    
    $
    363
    
    
    
    619.3Operating
margin
    
    
    5.1
    %
    
    
    0.9
    %Interest expense
    
    $
    (487
    )
    
    $
    (17
    )
    
    
    2,764.7Interest
income
    
    $
    636
    
    
    $
    444
    
    
    
    43.2Other, net
    
    $
    (16
    )
    
    $
    2
    
    
    
    (900.0
    )Income tax
provision
    
    $
    961
    
    
    $
    281
    
    
    
    242.0Effective income tax
rate
    
    
    35.02
    %
    
    
    35.48
    %Net earnings
    
    $
    1,783
    
    
    $
    511
    
    
    
    248.9Irrigation Equipment SegmentOperating revenues
    
    $
    37,972
    
    
    $
    34,142
    
    
    
    11.2Operating income(1)
    
    $
    4,115
    
    
    $
    3,780
    
    
    
    8.9Operating margin
    
    
    11.0
    %
    
    
    11.1
    %Infrastructure Products SegmentOperating revenues
    
    $
    13,560
    
    
    $
    5,362
    
    
    
    153.0Operating income (1)
    
    $
    4,737
    
    
    $
    799
    
    
    
    492.9Operating margin
    
    
    33.3
    %
    
    
    14.9
    %
 
 (1)
    
    Excludes unallocated general & administrative and engineering & research expenses Revenues
    - 14 -




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##### 



Gross Margin
  Operating Expenses
  Interest Income, Other Income, and Taxes
      Net Earnings
  Liquidity and Capital Resources
      - 15 -




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##### 



Off-Balance Sheet Arrangements
  Contractual Obligations and Commercial Commitments
 Subsequent Event
 Market Conditions and Fiscal 2007 Outlook
  Recently Issued Accounting Pronouncements
  - 16 -




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##### 



ITEM 3  Quantitative and Qualitative Disclosures About Market Risk
   - 17 -




---



##### 



ITEM 4  Controls and Procedures
   
 Part II  OTHER INFORMATION
 
 ITEM 1  Legal Proceedings
   
 ITEM 1A  Risk Factors
  
 ITEM 2  Unregistered Sales of Equity Securities and Use of Proceeds
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ITEM 3  Defaults Upon Senior Securities
  
 ITEM 4  Submission of Matters to a Vote of Security Holders
  
 ITEM 5- Other Information
  
 ITEM 6  Exhibits
 3(a)
    
    Restated Certificate of Incorporation of the Company, incorporated by reference
to Exhibit 3.1 to the Companys Current Report on Form 8-K filed on December 14, 2006.3(b)
    
    Restated By-Laws of the Company, incorporated by reference to Exhibit 3.2 of
the Companys Current Report on Form 8-K filed on December 14, 2006.4(a)
    
    Specimen Form of Common Stock Certificate.*31(a)
    
    Certification of Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.*31(b)
    
    Certification of Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.*32(a)
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906
of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.*
 
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SIGNATURE
 th
 LINDSAY CORPORATIONBy:
Name:
    
    /s/ david b. downing

 David B. DowningTitle
    
    : Senior Vice President, Chief Financial Officer(Principal Financial Officer)
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