##### 



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 February 28, 2007
 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
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)2707 North 108th Street, Suite 102, Omaha, Nebraska
    
    68164(Address of principal executive offices)
    
    (Zip Code)402-428-2131
Registrants telephone number, including area code
 þ o
  o þ o
 o þ
 ,
   - 1 -




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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, February 28, 2007 and 2006
and August 31, 2006
    
    3Consolidated Statements of Operations for the three-months and
six-months ended February 28, 2007 and 2006
    
    4Consolidated Statements of Cash Flows for the six-months
ended February 28, 2007 and 2006
    
    5Notes to Condensed Consolidated Financial Statements
    
    6-13ITEM 2 - Managements Discussion and Analysis of Results
of Operations and Financial Condition
    
    14-20ITEM 3 - Quantitative and Qualitative Disclosures about
Market Risk
    
    20ITEM 4  Controls and Procedures
    
    21Part II  OTHER INFORMATIONITEM 1 - LegalProceedings
    
    21ITEM 1A - Risk Factors
    
    21ITEM 2 -Unregistered Sales of Equity Securities and Use of Proceeds
    
    21ITEM 3 -Defaults Upon Senior Securities
    
    22ITEM 4 -Submission of Matters to a Vote of Security Holders
    
    22ITEM 5 -Other Information
    
    22ITEM 6 -Exhibits
    
    22SIGNATURE
    
    23
 - 2 -




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##### 



Part I  FINANCIAL INFORMATION
 ITEM 1  Condensed Consolidated Financial Statements
 Lindsay Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
February 28, 2007 and 2006 and August 31, 2006
 (Unaudited)
    
    
    (Unaudited)February
    
    
    February
    
    
    August($ in thousands, except par values)
    
    2007
    
    
    2006
    
    
    2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    15,346
    
    
    $
    26,907
    
    
    $
    43,344Marketable securities
    
    
    16,147
    
    
    
    13,104
    
    
    
    10,179Receivables, net (net of allowance, $829, $574 and $595, respectively)
    
    
    52,136
    
    
    
    35,999
    
    
    
    38,115Inventories, net
    
    
    44,800
    
    
    
    26,292
    
    
    
    26,818Deferred income taxes
    
    
    5,172
    
    
    
    3,948
    
    
    
    Other current assets
    
    
    6,187
    
    
    
    4,539
    
    
    
    3,947Total current assets
    
    
    139,788
    
    
    
    110,789
    
    
    
    122,403Long-term marketable securities
    
    
    473
    
    
    
    10,925
    
    
    
    5,778Property, plant and equipment, net
    
    
    36,629
    
    
    
    17,551
    
    
    
    26,981Other intangible assets, net
    
    
    26,870
    
    
    
    595
    
    
    
    20,998Goodwill, net
    
    
    12,579
    
    
    
    1,393
    
    
    
    11,129Other noncurrent assets
    
    
    4,507
    
    
    
    4,945
    
    
    
    4,945Total assets
    
    $
    220,846
    
    
    $
    146,198
    
    
    $
    192,234LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    17,530
    
    
    $
    14,215
    
    
    $
    9,565Current portion of long-term debt
    
    
    7,285
    
    
    
    
    
    
    
    4,286Other current liabilities
    
    
    21,766
    
    
    
    14,743
    
    
    
    23,619Total current liabilities
    
    
    46,581
    
    
    
    28,958
    
    
    
    37,470Pension benefits liabilities
    
    
    5,094
    
    
    
    5,217
    
    
    
    5,003Long-term debt
    
    
    34,881
    
    
    
    
    
    
    
    25,714Other noncurrent liabilities
    
    
    8,418
    
    
    
    169
    
    
    
    3,147Total liabilities
    
    
    94,974
    
    
    
    34,344
    
    
    
    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:17,685,792, 17,573,531 and 17,600,686 shares issued and
outstanding in February 2007 and 2006 and August 2006,
respectively)
    
    
    17,686
    
    
    
    17,573
    
    
    
    17,600Capital in excess of stated value
    
    
    8,173
    
    
    
    4,500
    
    
    
    5,896Retained earnings
    
    
    195,102
    
    
    
    184,290
    
    
    
    192,319Less treasury stock (at cost, 6,048,448 shares)
    
    
    (96,547
    )
    
    
    (96,547
    )
    
    
    (96,547
    )Accumulated other comprehensive income, net
    
    
    1,458
    
    
    
    2,038
    
    
    
    1,632Total shareholders equity
    
    
    125,872
    
    
    
    111,854
    
    
    
    120,900Total liabilities and shareholders equity
    
    $
    220,846
    
    
    $
    146,198
    
    
    $
    192,234
  - 3 -




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##### 



Lindsay Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three-months and six-months ended February 28, 2007 and 2006
(Unaudited)
 Three-Months Ended
    
    
    Six-Months EndedFebruary
    
    
    February
    
    
    February
    
    
    February(in thousands, except per share amounts)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Operating revenues
    
    $
    63,674
    
    
    $
    54,912
    
    
    $
    115,206
    
    
    $
    94,416Cost of operating revenues
    
    
    49,219
    
    
    
    45,048
    
    
    
    88,286
    
    
    
    77,125Gross profit
    
    
    14,455
    
    
    
    9,864
    
    
    
    26,920
    
    
    
    17,291Operating expenses:Selling expense
    
    
    4,346
    
    
    
    2,884
    
    
    
    7,959
    
    
    
    5,732General and administrative expense
    
    
    5,459
    
    
    
    4,285
    
    
    
    10,894
    
    
    
    7,854Engineering and research expense
    
    
    939
    
    
    
    607
    
    
    
    1,745
    
    
    
    1,254Total operating expenses
    
    
    10,744
    
    
    
    7,776
    
    
    
    20,598
    
    
    
    14,840Operating income
    
    
    3,711
    
    
    
    2,088
    
    
    
    6,322
    
    
    
    2,451Other income (expense):Interest expense
    
    
    (532
    )
    
    
    (115
    )
    
    
    (1,019
    )
    
    
    (132
    )Interest income
    
    
    426
    
    
    
    551
    
    
    
    1,062
    
    
    
    995Other, net
    
    
    10
    
    
    
    (20
    )
    
    
    (6
    )
    
    
    (18
    )Earnings before income taxes
    
    
    3,615
    
    
    
    2,504
    
    
    
    6,359
    
    
    
    3,296Income tax provision
    
    
    1,103
    
    
    
    787
    
    
    
    2,064
    
    
    
    1,068Net earnings
    
    $
    2,512
    
    
    $
    1,717
    
    
    $
    4,295
    
    
    $
    2,228Basic net earnings per share
    
    $
    0.22
    
    
    $
    0.15
    
    
    $
    0.37
    
    
    $
    0.19Diluted net earnings per share
    
    $
    0.21
    
    
    $
    0.15
    
    
    $
    0.36
    
    
    $
    0.19Average shares outstanding
    
    
    11,630
    
    
    
    11,522
    
    
    
    11,604
    
    
    
    11,521Diluted effect of stock equivalents
    
    
    305
    
    
    
    174
    
    
    
    297
    
    
    
    163Average shares outstanding assuming
dilution
    
    
    11,935
    
    
    
    11,696
    
    
    
    11,901
    
    
    
    11,684Cash dividends per share
    
    $
    0.065
    
    
    $
    0.060
    
    
    $
    0.130
    
    
    $
    0.120
  - 4 -




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##### 



Lindsay Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six-months ended February 28, 2007 and 2006
(Unaudited)
 February
    
    
    February($ in thousands)
    
    2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net earnings
    
    $
    4,295
    
    
    $
    2,228Adjustments to reconcile net earnings to net cash used in
operating activities:Depreciation and amortization
    
    
    3,296
    
    
    
    1,661Amortization of marketable securities premiums, net
    
    
    26
    
    
    
    126(Gain) loss on sale of property, plant and equipment
    
    
    (23
    )
    
    
    30Provision for uncollectible accounts receivable
    
    
    (2
    )
    
    
    36Deferred income taxes
    
    
    848
    
    
    
    (239
    )Stock-based compensation expense
    
    
    1,023
    
    
    
    741Other, net
    
    
    65
    
    
    
    (65
    )Changes in assets and liabilities:Receivables, net
    
    
    (9,048
    )
    
    
    (6,448
    )Inventories, net
    
    
    (15,147
    )
    
    
    (6,824
    )Other current assets
    
    
    (2,153
    )
    
    
    (1,392
    )Accounts payable
    
    
    3,810
    
    
    
    7,503Other current liabilities
    
    
    (2,431
    )
    
    
    1,223Current taxes payable
    
    
    (2,172
    )
    
    
    (251
    )Other noncurrent assets and liabilities
    
    
    151
    
    
    
    292Net cash used in operating activities
    
    
    (17,462
    )
    
    
    (1,379
    )CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of property, plant and equipment
    
    
    (4,446
    )
    
    
    (1,772
    )Proceeds from sale of property, plant and equipment
    
    
    31
    
    
    
    81Acquisition of business
    
    
    (17,394
    )
    
    
    Sale of equity investment
    
    
    
    
    
    
    354Purchases of marketable securities available-for-sale
    
    
    (60,300
    )
    
    
    Proceeds from maturities of marketable securities available-for-sale
    
    
    59,680
    
    
    
    5,113Net cash (used in) provided by investing activities
    
    
    (22,429
    )
    
    
    3,776CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from issuance of common stock under stock option plan
    
    
    1,451
    
    
    
    93Principal payments on long-term borrowing
    
    
    (2,143
    )
    
    
    Increase in borrowing
    
    
    14,309
    
    
    
    Excess tax benefits from stock-based compensation
    
    
    (197
    )
    
    
    Dividends paid
    
    
    (1,512
    )
    
    
    (1,382
    )Net cash provided by (used in) financing activities
    
    
    11,908
    
    
    
    (1,289
    )Effect of exchange rate changes on cash
    
    
    (15
    )
    
    
    235Net (decrease) increase in cash and cash equivalents
    
    
    (27,998
    )
    
    
    1,343Cash and cash equivalents, beginning of period
    
    
    43,344
    
    
    
    25,564Cash and cash equivalents, end of period
    
    $
    15,346
    
    
    $
    26,907
  - 5 -




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##### 



Lindsay Corporation and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (1) Condensed Consolidated Financial Statements
    (2) Net Earnings per Share
    (3) Acquisitions
   - 6 -




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##### 



Credit Arrangements Goodwill and Other
Intangible Assets
 (4) Comprehensive Income
  For the three-months ended
    
    
    For the six-months endedFebruary
    
    
    February
    
    
    February
    
    
    February$ in thousands
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Comprehensive income:Net earnings
    
    $
    2,512
    
    
    $
    1,717
    
    
    $
    4,295
    
    
    $
    2,228Other comprehensive income:Unrealized gain on
securities, net of
tax
    
    
    15
    
    
    
    37
    
    
    
    43
    
    
    
    6Minimum pension
liability, net of
tax
    
    
    (20
    )
    
    
    
    
    
    
    (20
    )
    
    
    Unrealized gain
(loss) on cash flow hedges,
net of tax
    
    
    53
    
    
    
    
    
    
    
    (102
    )
    
    
    Foreign currency
translation
    
    
    (155
    )
    
    
    492
    
    
    
    (95
    )
    
    
    857Total comprehensive
income
    
    $
    2,405
    
    
    $
    2,246
    
    
    $
    4,121
    
    
    $
    3,091
 (5) Income Taxes
    (6) Cash Equivalents, Marketable Securities, and Long-term Marketable Securities
   - 7 -




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##### 



Three-months ended
    
    Six-months endedFebruary 28,
    
    February 28,$ in thousands
    
    2007
    
    2006
    
    2007
    
    2006Proceeds from
maturities
    
    $
    25,620
    
    
    $
    3,308
    
    
    $
    59,680
    
    
    $
    5,113Gross realized
gains
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Gross realized
(losses)
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
  Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized$ in thousands
    
    cost
    
    
    gains
    
    
    (losses)
    
    
    Fair valueAs of February 28, 2007:Due within one
year
    
    $
    16,216
    
    
    $
    
    
    
    $
    (69
    )
    
    $
    16,147Due after one year through five
years
    
    
    483
    
    
    
    
    
    
    
    (10
    )
    
    
    473$
    16,699
    
    
    $
    
    
    
    $
    (79
    )
    
    $
    16,620As of February 28, 2006:Due within one
year
    
    $
    13,165
    
    
    $
    9
    
    
    $
    (70
    )
    
    $
    13,104Due after one year through five
years
    
    
    11,075
    
    
    
    5
    
    
    
    (155
    )
    
    
    10,925$
    24,240
    
    
    $
    14
    
    
    $
    (225
    )
    
    $
    24,029As 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
 (7) Inventories
  February
    
    
    February
    
    
    August$ in thousands
    
    2007
    
    
    2006
    
    
    2006Inventory:First-in, first-out (FIFO)
inventory
    
    $
    30,053
    
    
    $
    21,387
    
    
    $
    16,301LIFO
reserves
    
    
    (6,435
    )
    
    
    (4,417
    )
    
    
    (5,032
    )LIFO
inventory
    
    
    23,618
    
    
    
    16,970
    
    
    
    11,269Weighted average
inventory
    
    
    11,646
    
    
    
    9,912
    
    
    
    8,491Other FIFO
inventory
    
    
    10,157
    
    
    
    
    
    
    
    7,694Obsolescence
reserve
    
    
    (621
    )
    
    
    (590
    )
    
    
    (636
    )Total
inventories
    
    $
    44,800
    
    
    $
    26,292
    
    
    $
    26,818
 - 8 -




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##### 



February
    
    February
    
    August2007
    
    2006
    
    2006Raw materials
    
    
    18
    %
    
    
    17
    %
    
    
    39
    %Work in process
    
    
    9
    %
    
    
    7
    %
    
    
    17
    %Finished goods and purchased parts
    
    
    73
    %
    
    
    76
    %
    
    
    44
    %
 (8) Property, Plant and Equipment
  February
    
    
    February
    
    
    August$ in thousands
    
    2007
    
    
    2006
    
    
    2006Property, plant and equipment:Land
    
    $
    1,480
    
    
    $
    336
    
    
    $
    1,222Buildings
    
    
    18,808
    
    
    
    10,665
    
    
    
    12,229Equipment
    
    
    46,764
    
    
    
    41,585
    
    
    
    43,687Other6,137
    
    
    
    5,195
    
    
    
    4,562Total property, plant and
equipment
    
    
    73,189
    
    
    
    57,781
    
    
    
    61,700Accumulated depreciation and
amortization
    
    
    (42,934
    )
    
    
    (40,230
    )
    
    
    (41,402
    )Property, plant and equipment, net
    
    $
    30,255
    
    
    $
    17,551
    
    
    $
    20,298Rental property:Machines
    
    $
    2,322
    
    
    $
    
    
    
    $
    2,322Barriers
    
    
    4,519
    
    
    
    
    
    
    
    4,519Total rental
property
    
    
    6,841
    
    
    
    
    
    
    
    6,841Accumulated depreciation and
amortization
    
    
    (467
    )
    
    
    
    
    
    
    (158
    )Total rental property, net
    
    
    6,374
    
    
    
    
    
    
    
    6,683Property, plant and equipment,
net
    
    $
    36,629
    
    
    $
    17,551
    
    
    $
    26,981
  (9) Credit Arrangements
 (a) Euro Line of Credit
  (b) BSI Term Note
  (c) Snoline Term Note
 Acquisitions
 - 9 -




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##### 



February
    
    
    February
    
    
    August($ in thousands)
    
    2007
    
    
    2006
    
    
    2006Term notes payable
    
    $
    42,166
    
    
    $
    
    
    
    $
    30,000Less current portion
    
    
    (7,285
    )
    
    
    
    
    
    
    (4,286
    )Term notes payable less current portion
    
    $
    34,881
    
    
    $
    
    
    
    $
    25,714
   2007
    
    $
    6,1712008
    
    
    6,1712009
    
    
    6,1712010
    
    
    6,1712011
    
    
    6,171Thereafter
    
    
    11,311$
    42,166
 (10) Financial Derivatives
    - 10 -




---



##### 



(11) Commitments and Contingencies
  (12) Retirement Plan
  For the three-months ended
    
    
    For the six-months endedFebruary 28,
    
    
    February 28,
    
    
    February 28,
    
    
    February 28,$ in thousands
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Net periodic benefit cost:Service cost
    
    $
    8
    
    
    $
    5
    
    
    $
    16
    
    
    $
    10Interest cost
    
    
    77
    
    
    
    67
    
    
    
    154
    
    
    
    134Net amortization and
deferral
    
    
    40
    
    
    
    39
    
    
    
    80
    
    
    
    78Total net periodic benefit
cost
    
    $
    125
    
    
    $
    111
    
    
    $
    250
    
    
    $
    222
 (13) Guarantees and Warranties
 Guarantees of Customer Equipment Financing
   - 11 -




---



##### 



Product Warranties
   For the three-months endedFebruary 28,$ in thousands
    
    2007
    
    
    2006Warranties:Product warranty accrual balance, beginning
of period
    
    $
    1,894
    
    
    $
    2,396Liabilities accrued for warranties during
the period
    
    
    (71
    )
    
    
    616Warranty claims paid during the
period
    
    
    (233
    )
    
    
    (573
    )Product warranty accrual balance, end of
period
    
    $
    1,590
    
    
    $
    2,439
 For the six-months endedFebruary 28,$ in thousands
    
    2007
    
    
    2006Warranties:Product warranty accrual balance,
beginning of period
    
    $
    1,996
    
    
    $
    2,456Liabilities accrued for warranties
during the period
    
    
    304
    
    
    
    893Warranty claims paid during the
period
    
    
    (710
    )
    
    
    (910
    )Product warranty accrual balance, end of
period
    
    $
    1,590
    
    
    $
    2,439
 (14) Industry Segment Information
      - 12 -




---



##### 



For the three-months ended February 28,($ in millions)
    
    2007
    
    
    2006Operating revenues:Irrigation
    
    $
    50,937
    
    
    $
    49,181Infrastructure
    
    
    12,737
    
    
    
    5,731Total operating revenues
    
    $
    63,674
    
    
    $
    54,912Operating income:Irrigation
    
    $
    6,868
    
    
    $
    5,968Infrastructure
    
    
    3,241
    
    
    
    1,012Segment operating income
    
    
    10,109
    
    
    
    6,980Unallocated general &
administrative and engineering &
research expenses
    
    
    6,398
    
    
    
    4,892Interest and other income, net
    
    
    (96
    )
    
    
    416Earnings before income taxes
    
    $
    3,615
    
    
    $
    2,504
 For the six-months ended February 28,($ in millions)
    
    2007
    
    
    2006Operating revenues:Irrigation
    
    $
    88,909
    
    
    $
    83,323Infrastructure
    
    
    26,297
    
    
    
    11,093Total operating revenues
    
    $
    115,206
    
    
    $
    94,416Operating income:Irrigation
    
    $
    11,666
    
    
    $
    9,748Infrastructure
    
    
    7,295
    
    
    
    1,811Segment operating income
    
    
    18,961
    
    
    
    11,559Unallocated general &
administrative and engineering &
research expenses
    
    
    12,639
    
    
    
    9,108Interest and other income, net
    
    
    37
    
    
    
    845Earnings before income taxes
    
    $
    6,359
    
    
    $
    3,296
 (15) Share Based Compensation
 Share-Based Payment
  - 13 -




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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
    - 14 -




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##### 



Results of Operations
 For the Three-Months ended February 28, 2007
  For the three-months endedPercentFebruary
    
    
    February
    
    
    Increase($ in thousands)
    
    2007
    
    
    2006
    
    
    (decrease)ConsolidatedOperating
revenues
    
    $
    63,674
    
    
    $
    54,912
    
    
    
    16.0
    %Cost of operating
revenues
    
    $
    49,219
    
    
    $
    45,048
    
    
    
    9.3Gross
profit
    
    $
    14,455
    
    
    $
    9,864
    
    
    
    46.5Gross
margin
    
    
    22.7
    %
    
    
    18.0
    %Operating
expenses
    
    $
    10,744
    
    
    $
    7,776
    
    
    
    38.2Operating
income
    
    $
    3,711
    
    
    $
    2,088
    
    
    
    77.7Operating
margin
    
    
    5.8
    %
    
    
    3.8
    %Interest
expense
    
    $
    (532
    )
    
    $
    (115
    )
    
    
    362.6Interest
income
    
    $
    426
    
    
    $
    551
    
    
    
    (22.7
    )Other,
net
    
    $
    10
    
    
    $
    (20
    )
    
    
    (150.0
    )Income tax
provision
    
    $
    1,103
    
    
    $
    787
    
    
    
    40.2Effective income tax
rate
    
    
    30.5
    %
    
    
    31.4
    %Net
earnings
    
    $
    2,512
    
    
    $
    1,717
    
    
    
    46.3Irrigation Equipment SegmentOperating revenues
    
    $
    50,937
    
    
    $
    49,181
    
    
    
    3.6Operating income
(1)
    
    $
    6,868
    
    
    $
    5,968
    
    
    
    15.1Operating
margin
    
    
    13.5
    %
    
    
    12.1
    %Infrastructure Products SegmentOperating
revenues
    
    $
    12,737
    
    
    $
    5,731
    
    
    
    122.2Operating income
(1)
    
    $
    3,241
    
    
    $
    1,012
    
    
    
    220.2Operating
margin
    
    
    25.5
    %
    
    
    17.7
    %
 
 (1)
    
    Excludes unallocated general & administrative and engineering & research expenses Revenues
   - 15 -




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##### 



Gross Margin
  Operating Expenses
  Interest Income, Other Income, and Taxes
     Net Earnings
  - 16 -




---



##### 



For the Six-Months ended February 28, 2007
  For the six-months endedPercentFebruary
    
    
    February
    
    
    Increase($ in thousands)
    
    2007
    
    
    2006
    
    
    (decrease)ConsolidatedOperating
revenues
    
    $
    115,206
    
    
    $
    94,416
    
    
    
    22.0
    %Cost of operating
revenues
    
    $
    88,286
    
    
    $
    77,125
    
    
    
    14.5Gross
profit
    
    $
    26,920
    
    
    $
    17,291
    
    
    
    55.7Gross
margin
    
    
    23.4
    %
    
    
    18.3
    %Operating
expenses
    
    $
    20,598
    
    
    $
    14,840
    
    
    
    38.8Operating
income
    
    $
    6,322
    
    
    $
    2,451
    
    
    
    157.9Operating
margin
    
    
    5.5
    %
    
    
    2.6
    %Interest
expense
    
    $
    (1,019
    )
    
    $
    (132
    )
    
    
    672.0Interest
income
    
    $
    1,062
    
    
    $
    995
    
    
    
    6.7Other,
net
    
    $
    (6
    )
    
    $
    (18
    )
    
    
    (66.7
    )Income tax
provision
    
    $
    2,064
    
    
    $
    1,068
    
    
    
    93.3Effective income tax
rate
    
    
    32.5
    %
    
    
    32.4
    %Net
earnings
    
    $
    4,295
    
    
    $
    2,228
    
    
    
    92.8Irrigation Equipment SegmentOperating revenues
    
    $
    88,909
    
    
    $
    83,323
    
    
    
    6.7Operating income
(1)
    
    $
    11,666
    
    
    $
    9,748
    
    
    
    19.7Operating
margin
    
    
    13.1
    %
    
    
    11.7
    %Infrastructure Products SegmentOperating
revenues
    
    $
    26,297
    
    
    $
    11,093
    
    
    
    137.1Operating income
(1)
    
    $
    7,295
    
    
    $
    1,811
    
    
    
    302.8Operating
margin
    
    
    27.7
    %
    
    
    16.3
    %
 
 (1)
    
    Excludes unallocated general & administrative and engineering & research expenses Revenues
     Gross Margin
  - 17 -




---



##### 



Operating Expenses
  Interest Income, Other Income, and Taxes
     Net Earnings
  Liquidity and Capital Resources
      - 18 -




---



##### 



Off-Balance Sheet Arrangements
  Contractual Obligations and Commercial Commitments
 Acquisitions
 Market Conditions and Fiscal 2007 Outlook
  Recently Issued Accounting Pronouncements
    - 19 -




---



##### 



ITEM 3  Quantitative and Qualitative Disclosures About Market Risk
      - 20 -




---



##### 



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
  - 21 -




---



##### 



ITEM 3  Defaults Upon Senior Securities
  ITEM 4  Submission of Matters to a Vote of Security Holders
  1. Election of Directors:
    
    Howard G. Buffett
    
    
    
    For 10,538,944
    
    
    
    Withheld 168,324Michael C. Nahl
    
    
    
    For 10,594,618
    
    
    
    Withheld 112,650William F. Welsh
    
    
    
    For 10,565,759
    
    
    
    Withheld 141,509
   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, incorporated by reference to Exhibit
4(a) of the Companys Quarterly Report on Form 10-Q filed on January 8, 2007.
 10(a)
    
    Share Purchase Agreement incorporated by reference to Exhibit 10.1 of the
Companys Current Report on Form 8-K filed on December 29, 2006.
 10(b)
    
    Term Note incorporated by reference to Exhibit 10.2 of the Companys Current
Report on Form 8-K filed on December 29, 2006.
 10(c)
    
    Credit Agreement incorporated by reference to Exhibit 10.3 of the Companys
Current Report on Form 8-K filed on December 29, 2006.
 10(d)
    
    First Bank Guarantee incorporated by reference to Exhibit 10.4 of the
Companys Current Report on Form 8-K filed on December 29, 2006.
 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.*
 
 *
    
    - filed herein - 22 -




---



##### 



SIGNATURE
  LINDSAY CORPORATIONBy:
    /s/ DAVID B. DOWNINGName:
    David B. DowningTitle:
    Senior Vice President, Chief Financial Officer
(Principal Financial Officer) - 23 -