Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Nov. 30, 2020 | Jan. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LNN | |
Entity Registrant Name | Lindsay Corporation | |
Entity Central Index Key | 0000836157 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 1-13419 | |
Entity Tax Identification Number | 47-0554096 | |
Entity Address, Address Line One | 18135 Burke Street | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Omaha | |
Entity Address, State or Province | NE | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 68022 | |
City Area Code | 402 | |
Local Phone Number | 829-6800 | |
Entity Common Stock, Shares Outstanding | 10,865,246 | |
Entity Interactive Data Current | Yes | |
Entity Ex Transition Period | Common Stock, $1.00 par value | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||
Operating revenues | $ 108,485 | $ 109,393 |
Cost of operating revenues | 77,077 | 75,319 |
Gross profit | 31,408 | 34,074 |
Operating expenses: | ||
Selling expense | 7,331 | 6,492 |
General and administrative expense | 13,452 | 11,804 |
Engineering and research expense | 3,090 | 3,502 |
Total operating expenses | 23,873 | 21,798 |
Operating income | 7,535 | 12,276 |
Other (expense) income: | ||
Interest expense | (1,201) | (1,186) |
Interest income | 303 | 615 |
Other income (expense), net | 246 | (450) |
Total other (expense) income | (652) | (1,021) |
Earnings before income taxes | 6,883 | 11,255 |
Income tax (benefit) expense | (212) | 2,910 |
Net earnings | $ 7,095 | $ 8,345 |
Earnings per share: | ||
Basic | $ 0.65 | $ 0.77 |
Diluted | $ 0.65 | $ 0.77 |
Shares used in computing earnings per share: | ||
Basic | 10,845 | 10,795 |
Diluted | 10,888 | 10,828 |
Cash dividends declared per share | $ 0.32 | $ 0.31 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net earnings | $ 7,095 | $ 8,345 |
Other comprehensive income (loss): | ||
Defined benefit pension plan adjustment, net of tax | 43 | 43 |
Foreign currency translation adjustment, net of hedging activities and tax | 1,384 | (293) |
Unrealized loss on marketable securities, net of tax | (32) | 0 |
Total other comprehensive income (loss), net of tax (benefit) expense of ($32), and $76, respectively | 1,395 | (250) |
Total comprehensive income | $ 8,490 | $ 8,095 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Other comprehensive income (loss), tax (benefit) expense | $ (32) | $ 76 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 126,802 | $ 121,403 | $ 120,910 |
Marketable securities | 19,624 | 19,511 | 0 |
Receivables, net of allowance of $2,960, $2,785, and $2,780, respectively | 74,909 | 84,604 | 79,317 |
Inventories, net | 114,278 | 104,792 | 97,284 |
Assets held-for-sale | 0 | 0 | 2,744 |
Other current assets, net | 20,837 | 17,625 | 16,376 |
Total current assets | 356,450 | 347,935 | 316,631 |
Property, plant, and equipment: | |||
Cost | 212,725 | 208,107 | 193,000 |
Less accumulated depreciation | (131,430) | (128,526) | (122,695) |
Property, plant, and equipment, net | 81,295 | 79,581 | 70,305 |
Intangibles, net | 22,817 | 23,477 | 23,739 |
Goodwill | 68,027 | 68,004 | 64,358 |
Operating lease right-of-use assets | 26,008 | 27,457 | 25,764 |
Deferred income tax assets | 9,924 | 9,935 | 9,902 |
Other noncurrent assets | 10,681 | 14,137 | 16,112 |
Total assets | 575,202 | 570,526 | 526,811 |
Current liabilities: | |||
Accounts payable | 36,263 | 29,554 | 30,097 |
Current portion of long-term debt | 214 | 195 | 210 |
Other current liabilities | 65,910 | 72,646 | 54,494 |
Total current liabilities | 102,387 | 102,395 | 84,801 |
Pension benefits liabilities | 6,293 | 6,374 | 5,948 |
Long-term debt | 115,641 | 115,682 | 115,805 |
Operating lease liabilities | 24,863 | 25,862 | 25,323 |
Deferred income tax liabilities | 902 | 889 | 845 |
Other noncurrent liabilities | 21,215 | 20,806 | 21,089 |
Total liabilities | 271,301 | 272,008 | 253,811 |
Shareholders' equity: | |||
Preferred stock of $1 par value - authorized 2,000 shares; no shares issued and outstanding | 0 | 0 | 0 |
Common stock of $1 par value - authorized 25,000 shares; 18,948, 18,897, and 18,918 shares issued, respectively | 18,948 | 18,918 | 18,897 |
Capital in excess of stated value | 78,026 | 77,686 | 71,706 |
Retained earnings | 503,342 | 499,724 | 479,732 |
Less treasury stock - at cost, 8,083 shares | (277,238) | (277,238) | (277,238) |
Accumulated other comprehensive loss, net | (19,177) | (20,572) | (20,097) |
Total shareholders' equity | 303,901 | 298,518 | 273,000 |
Total liabilities and shareholders' equity | $ 575,202 | $ 570,526 | $ 526,811 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Statement Of Financial Position [Abstract] | |||
Receivables, allowance | $ 2,960 | $ 2,780 | $ 2,785 |
Preferred stock, par value | $ 1 | $ 1 | $ 1 |
Preferred stock, authorized | 2,000,000 | 2,000,000 | 2,000,000 |
Preferred stock, issued | 0 | 0 | 0 |
Preferred stock, outstanding | 0 | 0 | 0 |
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Common stock, issued | 18,948,000 | 18,918,000 | 18,897,000 |
Treasury stock, shares | 8,083,000 | 8,083,000 | 8,083,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Capital In Excess Of Stated Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss, Net [Member] |
Beginning balance, value at Aug. 31, 2019 | $ 268,209 | $ 18,870 | $ (277,238) | $ 71,684 | $ 474,740 | $ (19,847) |
Beginning balance, shares at Aug. 31, 2019 | 18,870 | 8,083 | ||||
Net earnings | 8,345 | $ 0 | $ 0 | 0 | 8,345 | 0 |
Other comprehensive income (loss) | (250) | 0 | 0 | 0 | 0 | (250) |
Total comprehensive income | 8,095 | 0 | 0 | 0 | 0 | 0 |
Cash dividends per share | (3,353) | 0 | 0 | 0 | (3,353) | 0 |
Issuance of common shares under share compensation plans, net | (1,111) | $ 27 | $ 0 | (1,138) | 0 | 0 |
Issuance of common shares under share compensation plans, net, shares | 27 | 0 | ||||
Share-based compensation expense | 1,160 | $ 0 | $ 0 | 1,160 | 0 | 0 |
Ending balance, value at Nov. 30, 2019 | 273,000 | $ 18,897 | $ (277,238) | 71,706 | 479,732 | (20,097) |
Ending Balance, shares at Nov. 30, 2019 | 18,897 | 8,083 | ||||
Beginning balance, value at Aug. 31, 2020 | 298,518 | $ 18,918 | $ (277,238) | 77,686 | 499,724 | (20,572) |
Beginning balance, shares at Aug. 31, 2020 | 18,918 | 8,083 | ||||
Net earnings | 7,095 | $ 0 | $ 0 | 0 | 7,095 | 0 |
Other comprehensive income (loss) | 1,395 | 0 | 0 | 0 | 0 | 1,395 |
Total comprehensive income | 8,490 | 0 | 0 | 0 | 0 | 0 |
Cash dividends per share | (3,477) | 0 | 0 | 0 | (3,477) | 0 |
Repurchase of common stock | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of common shares under share compensation plans, net | (1,213) | $ 30 | $ 0 | (1,243) | 0 | 0 |
Issuance of common shares under share compensation plans, net, shares | 30 | 0 | ||||
Share-based compensation expense | 1,583 | $ 0 | $ 0 | 1,583 | 0 | 0 |
Ending balance, value at Nov. 30, 2020 | $ 303,901 | $ 18,948 | $ (277,238) | $ 78,026 | $ 503,342 | $ (19,177) |
Ending Balance, shares at Nov. 30, 2020 | 18,948 | 8,083 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends per share | $ 0.32 | $ 0.31 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 7,095 | $ 8,345 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 5,140 | 4,748 |
Provision for uncollectible accounts receivable | 158 | 248 |
Deferred income taxes | 140 | 1,987 |
Share-based compensation expense | 1,583 | 1,160 |
Foreign currency transaction (gain) loss | (203) | 668 |
Other, net | 36 | (294) |
Changes in assets and liabilities: | ||
Receivables | 8,896 | (4,122) |
Inventories | (8,294) | (4,931) |
Other current assets | (3,068) | (2,466) |
Accounts payable | 7,286 | 725 |
Other current liabilities | (7,146) | (1,901) |
Other noncurrent assets and liabilities | 3,750 | (2,626) |
Net cash provided by operating activities | 15,373 | 1,541 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant, and equipment | (5,614) | (4,322) |
Purchases of marketable securities available-for-sale | (3,844) | 0 |
Proceeds from maturities of marketable securities available-for-sale | 3,616 | 0 |
Proceeds from settlement of net investment hedges | 0 | 1,092 |
Other investing activities, net | 0 | 24 |
Net cash used in investing activities | (5,842) | (3,206) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 56 | 0 |
Common stock withheld for payroll tax obligations | (1,269) | (1,111) |
Principal payments on long-term debt | (35) | (52) |
Dividends paid | (3,477) | (3,353) |
Net cash used in financing activities | (4,725) | (4,516) |
Effect of exchange rate changes on cash and cash equivalents | 593 | (113) |
Net change in cash and cash equivalents | 5,399 | (6,294) |
Cash and cash equivalents, beginning of period | 121,403 | 127,204 |
Cash and cash equivalents, end of period | 126,802 | 120,910 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Income taxes paid, net of refunds | 418 | (56) |
Interest paid | $ 77 | $ 67 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Nov. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The condensed consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP”) as contained in Lindsay Corporation’s (the “Company”) Annual Report on Form 10-K. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2020. In the opinion of management, the condensed consolidated financial statements of the Company reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of trends or results expected by the Company for a full year. The condensed consolidated financial statements were prepared using U.S. GAAP. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates. Recent Accounting Guidance Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issues ASU 2017-04, Simplifying the Test for Goodwill Impairment |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition Disaggregation of Revenue A breakout by segment of revenue recognized over time versus at a point in time for the three months ended November 30, 2020 is as follows: Three months ended November 30, 2020 ($ in thousands) Irrigation Infrastructure Total Point in time $ 80,060 $ 15,452 $ 95,512 Over time 7,296 1,639 8,935 Revenue from the contracts with customers 87,356 17,091 104,447 Lease revenue — 4,038 4,038 Total operating revenues $ 87,356 $ 21,129 $ 108,485 Three months ended November 30, 2019 ($ in thousands) Irrigation Infrastructure Total Point in time $ 73,818 $ 21,162 $ 94,980 Over time 9,509 2,125 11,634 Revenue from the contracts with customers 83,327 23,287 106,614 Lease revenue — 2,779 2,779 Total operating revenues $ 83,327 $ 26,066 $ 109,393 Further disaggregation of revenue is disclosed in the Note 13 – Industry Segment Information. For contracts with an initial length longer than twelve months, the unsatisfied performance obligations were $11.3 million at November 30, 2020. Contract Balances Contract assets arise when recorded revenue for a contract exceeds the amounts billed under the terms of such contract. Contract liabilities arise when billed amounts exceed revenue recorded. Amounts are billable to customers upon various measures of performance, including achievement of certain milestones and completion of specified units of completion of the contract. At November 30, 2020, November 30, 2019, and August 31, 2019, contract assets amounted to $1.2 million, $1.2 million, and $0.9 million, respectively. These amounts are included within other current assets on the condensed consolidated balance sheet. Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At November 30, 2020, November 30, 2019, and August 31, 2019, contract liabilities amounted to $21.3 million, $14.7 million, and $19.6 million, respectively. Contract liabilities are included within other current liabilities on the condensed consolidated balance sheets. During the Company’s three months ended November 30, 2020 and 2019, the Company recognized $6.5 million and $6.4 million of revenue that were included in the liabilities as of August 31, 2020 and 2019, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter. |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Note 3 – Net Earnings per Share Basic earnings per share is calculated on the basis of weighted average outstanding common shares. Diluted earnings per share is calculated on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities. When a period results in a net loss, the impact of outstanding stock awards is excluded from the diluted loss per share calculation as the inclusion would have an anti-dilutive effect. The following table shows the computation of basic and diluted net earnings per share for the three months ended November 30, 2020 and November 30, 2019: Three months ended ($ and shares in thousands, except per share amounts) November 30, 2020 November 30, 2019 Numerator: Net earnings $ 7,095 $ 8,345 Denominator: Weighted average shares outstanding 10,845 10,795 Diluted effect of stock awards 43 33 Weighted average shares outstanding assuming dilution 10,888 10,828 Basic net earnings per share $ 0.65 $ 0.77 Diluted net earnings per share $ 0.65 $ 0.77 Certain stock options and restricted stock units were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive. Performance stock units are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. The following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive: Three months ended (Units and options in thousands) November 30, 2020 November 30, 2019 Restricted stock units — 19 Stock options 79 — Performance stock units 10 20 |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 – Income Taxes The Company recorded income tax benefit of $0.2 million for the three months ended November 30, 2020 and income tax expense of $2.9 million for the three months ended November 30, 2019. It is the Company’s policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 23.8 percent and 25.8 percent for the three months ended November 30, 2020 and 2019, respectively. The decrease in the estimated annual effective income tax rate from November 2019 to November 2020 relates primarily to the change in earnings mix among foreign operations. The tax effects of significant or unusual items are not considered in the estimated annual effective income tax rate. The tax effects of such discrete events are recognized in the interim period in which the events occur. The Company recorded discrete items resulting in an income tax benefit of $1.8 million for the three months ended November 30, 2020, which included a benefit of $1.7 million related to the release of a valuation allowance primarily related to net operating loss carryforwards in a foreign jurisdiction that are now expected be realizable. The tax effects of discrete items did not have a significant impact on income tax expense for the three months ended November 30, 2019 . |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 – Inventories Inventories consisted of the following as of November 30, 2020, November 30, 2019, and August 31, 2020: ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Raw materials and supplies $ 52,374 $ 47,266 $ 51,205 Work in process 8,041 6,235 6,464 Finished goods and purchased parts, net 58,284 51,908 51,684 Total inventory value before LIFO adjustment 118,699 105,409 109,353 Less adjustment to LIFO value (4,421 ) (8,125 ) (4,561 ) Inventories, net $ 114,278 $ 97,284 $ 104,792 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 – Long-Term Debt The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown: ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Series A Senior Notes $ 115,000 $ 115,000 $ 115,000 Revolving Credit Facility — — — Elecsys Series 2006A Bonds 1,309 1,519 1,344 Total debt 116,309 116,519 116,344 Less current portion (214 ) (210 ) (195 ) Less unamortized debt issuance costs (454 ) (504 ) (467 ) Total long-term debt $ 115,641 $ 115,805 $ 115,682 Principal payments on the debt are due as follows: Due within $ in thousands 1 year $ 214 2 years 218 3 years 222 4 years 227 5 years 231 Thereafter 115,197 $ 116,309 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 – Fair Value Measurements The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of November 30, 2020, November 30, 2019, and August 31, 2020. There were no transfers between any levels for the periods presented. November 30, 2020 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 126,802 $ — $ — $ 126,802 Marketable securities: Corporate bonds — 14,564 — 14,564 U.S. treasury securities — 5,060 — 5,060 Earn-out liability — — (1,112 ) (1,112 ) November 30, 2019 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 120,910 $ — $ — $ 120,910 Derivative assets — 13 — 13 Derivative liabilities — (115 ) — (115 ) August 31, 2020 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 121,403 $ — $ — $ 121,403 Marketable securities: Corporate bonds — 14,426 — 14,426 U.S. treasury securities — 5,085 — 5,085 Derivative assets — 21 — 21 Earn-out liability — — (1,112 ) (1,112 ) The Company’s investment in marketable securities consists of United States treasury bonds and investment grade corporate bonds. The marketable securities are classified as available-for-sale and are carried at fair value with the change in unrealized gains and losses reported as a separate component on the condensed consolidated statements of comprehensive income (loss) until realized. The Company determines fair value using data points that are observable, such as quoted prices and interest rates. The amortized cost of the investments approximates fair value. Investment income is recorded within other (expense) income on the condensed consolidated statements of earnings. As of November 30, 2020, approximately 72% of the Company’s marketable securities investments mature within one year and 28% mature within one to three years. The Company’s earn-out liability relates to its acquisition of Net Irrigate, LLC during the third quarter of fiscal 2020. The value of the earn-out liability is based on active customers one year subsequent to the closing date. The fair value of this earn-out payment was calculated using the weighted average probability for each potential outcome and has a maximum potential payout of $1.5 million. There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the three months ended November 30, 2020 or November 30, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies In the ordinary course of its business operations, the Company enters into arrangements that obligate it to make future payments under contracts such as lease agreements. Additionally, the Company is involved, from time to time, in commercial litigation, employment disputes, administrative proceedings, business disputes and other legal proceedings. The Company has established accruals for certain proceedings based on an assessment of probability of loss. The Company believes that any such currently-pending proceedings are either covered by insurance or would not have a material effect on the business or its consolidated financial statements if decided in a manner that is unfavorable to the Company. Such proceedings are exclusive of environmental remediation matters which are discussed separately below. Infrastructure Products The Company is currently defending a number of product liability lawsuits arising out of vehicle collisions with highway barriers incorporating the Company’s X-Lite The Company, certain of its subsidiaries, and certain third parties which originally designed the X-Lite end terminal have also been named in a lawsuit filed on June 9, 2020 in the Circuit Court of Cole County, Missouri by Missouri Highways and Transportation Commission (“MHTC”). MHTC alleges, among other things, that the X-Lite end terminal was defectively designed and failed to perform as designed, intended, and advertised, leading to MHTC’s removal and replacement of X-Lite end terminals from Missouri’s roadways. MHTC alleges strict liability (defective design and failure to warn), negligence, breach of express warranties, breach of implied warranties (merchantability and fitness for a particular purpose), fraud, and public nuisance. MHTC seeks compensatory damages, interest, attorneys’ fees, and punitive damages. The Company believes it has meritorious factual and legal defenses to each of the lawsuits discussed above and is prepared to vigorously defend its interests. Based on the information currently available to the Company, the Company does not believe that a loss is probable in any of these lawsuits; therefore, no accrual has been included in the Company’s consolidated financial statements. While it is possible that a loss may be incurred, the Company is unable to estimate a range of potential loss due to the complexity and current status of these lawsuits. However, the Company maintains insurance coverage to mitigate the impact of adverse exposures in these lawsuits and does not expect that these lawsuits will have a material adverse effect on its business or its consolidated financial statements. In June 2019, the Company was informed by letter that the Department of Justice, Civil Division and U.S. Attorney’s Office for the Northern District of New York, with the assistance of the Department of Transportation, Office of Inspector General, are conducting an investigation of the Company relating to the Company’s X-Lite end terminal and potential violations of the federal civil False Claims Act. Depending on the outcome of this matter, there could be a material adverse effect on the Company’s business or its consolidated financial statements. Given the current posture of the matter, the Company is unable to estimate a range of potential loss, if any, or to express an opinion regarding the ultimate outcome. Environmental Remediation In previous years, the Company committed to a plan to remediate environmental contamination of the groundwater at and adjacent to its Lindsay, Nebraska facility (the “site”). The current estimated aggregate accrued cost of $16.1 million is based on consideration of remediation options which the Company believes could be successful in meeting the long-term regulatory requirements of the site. The Company submitted a revised remedial alternatives evaluation report to the U.S. Environmental Protection Agency (“EPA”) and the Nebraska Department of Environment and Energy (the “NDEE”) in August 2020 to review remediation alternatives and proposed plans for the site. The proposed remediation plan is preliminary and has not been approved by the EPA or the NDEE. Based on guidance from third-party environmental experts and the preliminary discussions with the regulatory agencies, the Company anticipates that a definitive plan will not be agreed upon until the latter half of fiscal 2021 or later. An increase to the liability of $1.0 million was recorded within general and administrative expense on the condensed consolidated statement of earnings in the fourth quarter of fiscal 2020. Of the total liability, $11.0 million was calculated on a discounted basis using a discount rate of 1.2%, which represents a risk-free rate. This discounted portion of the liability amounts to $12.4 million on an undiscounted basis. The Company accrues the anticipated cost of investigation and remediation when the obligation is probable and can be reasonably estimated. While the plan has not formally been approved by the EPA, the Company believes the current accrual is a good faith estimate of the long-term cost of remediation at this site; however, the estimate of costs and their timing could change as a result of a number of factors, including (1) EPA input on the proposed remediation plan and any changes which it may subsequently require, (2) refinement of cost estimates and length of time required to complete remediation and post-remediation operations and maintenance, (3) effectiveness of the technology chosen in remediation of the site as well as changes in technology that may be available in the future, and (4) unforeseen circumstances existing at the site. As a result of these factors, the actual amount of costs incurred by the Company in connection with the remediation of contamination of its Lindsay, Nebraska site could exceed the amounts accrued for this expense at this time. While any revisions could be material to the operating results of any fiscal quarter or fiscal year, the Company does not expect such additional expenses would have a material adverse effect on its liquidity or financial condition. The following table summarizes the undiscounted environmental remediation liability classifications included in the condensed consolidated balance sheets as of November 30, 2020, November 30, 2019, and August 31, 2020: ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Other current liabilities $ 1,105 $ 1,243 $ 1,115 Other noncurrent liabilities 15,021 14,548 15,030 Total environmental remediation liabilities $ 16,126 $ 15,791 $ 16,145 |
Warranties
Warranties | 3 Months Ended |
Nov. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Note 9 – Warranties The following table provides the changes in the Company’s product warranties: Three months ended ($ in thousands) November 30, 2020 November 30, 2019 Product warranty accrual balance, beginning of period $ 10,765 $ 8,960 Liabilities accrued for warranties during the period 1,734 1,480 Warranty claims paid during the period (1,641 ) (1,652 ) Product warranty accrual balance, end of period $ 10,858 $ 8,788 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Nov. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 10 – Share-Based Compensation The Company’s current share-based compensation plans, approved by the stockholders of the Company, provides for awards of stock options, restricted shares, restricted stock units (“RSUs”), stock appreciation rights, performance shares, and performance stock units (“PSUs”) to employees and non-employee directors of the Company. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. Share-based compensation expense was $1.7 million and $1.2 million for the three months ended November 30, 2020 and 2019, respectively. The following table illustrates the type and fair value of share-based compensation awards granted during the three months ended November 30, 2020 and 2019, respectively: Three months ended November 30, 2020 November 30, 2019 Number of units granted Weighted average grant-date fair value per award Number of units granted Weighted average grant-date fair value per award Stock options 35,168 $ 30.68 44,347 $ 24.18 RSUs 26,314 $ 106.72 30,235 $ 90.73 PSUs 19,533 $ 125.23 22,715 $ 102.28 The RSUs granted during the three months ended November 30, 2020 and 2019 consisted of 2,162 and 2,730, respectively, of awards that will be settled in cash. The weighted average stock price on the date of grant was $110.21 and $94.36 per award for the three months ended November 30, 2020 and 2019, respectively. Share issuances are presented net of share repurchases to cover payroll taxes of $1.3 million and $1.1 million for the three month periods ended November 30, 2020 and 2019, respectively. The following table provides the assumptions used in determining the fair value of the stock options awarded during the three months ended November 30, 2020 and 2019: Three months ended November 30, 2020 2019 Weighted-average dividend yield 1.2 % 1.3 % Weighted-average volatility 32.8 % 28.4 % Risk-free interest rate 0.5 % 1.6 % Weighted-average expected life 6 years 6 years The PSUs granted during fiscal 2021 include performance goals based on a return on net assets and total shareholder return (TSR) relative to the Company’s peers during the performance period. The awards actually earned will range from zero to two hundred three-year The fair value of the TSR portion of the awards granted during the three months ended November 30, 2020 and 2019 was estimated at the grant date using a Monte Carlo simulation model which included the following assumptions: Three months ended November 30, 2020 2019 Expected term (years) 3 3 Risk-free interest rate 0.2 % 1.5 % Volatility 38.6 % 29.5 % Dividend yield 1.2 % 1.3 % |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Nov. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 11 – Other Current Liabilities ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Other current liabilities: Contract liabilities $ 18,497 $ 13,280 $ 17,296 Compensation and benefits 13,759 11,400 20,945 Warranties 10,858 8,788 10,765 Operating lease liabilities 5,004 4,200 5,123 Dealer related liabilities 3,696 3,536 3,664 Deferred revenue - lease 3,165 2,431 1,822 Accrued insurance 1,253 1,555 1,348 Accrued environmental liabilities 1,105 1,243 1,115 Tax related liabilities 443 2,400 3,726 Other 8,130 5,661 6,842 Total other current liabilities $ 65,910 $ 54,494 $ 72,646 |
Share Repurchases
Share Repurchases | 3 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Share Repurchases | Note 12 – Share Repurchases There were no shares repurchased during the three months ended November 30, 2020 and November 30, 2019 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of November 30, 2020. |
Industry Segment Information
Industry Segment Information | 3 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Industry Segment Information | Note 13 – Industry Segment Information The Company manages its business activities in two reportable segments: irrigation and infrastructure. The Company evaluates the performance of its reportable segments based on segment sales, gross profit and operating income, with operating income for segment purposes excluding unallocated corporate general and administrative expenses, interest income, interest expense, other income and expenses and income taxes. Operating income for segment purposes includes general and administrative expenses, selling expenses, engineering and research expenses and other overhead charges directly attributable to the segment. There are no inter-segment sales included in the amounts disclosed. The Company had no single customer who represented 10 percent or more of its total revenues during the three months ended November 30, 2020 and 2019. Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move and hose reel irrigation systems and large diameter steel tubing as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions. The irrigation reporting segment consists of one operating segment. Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment. The infrastructure reporting segment consists of one operating segment. Certain immaterial reclassifications have been made to the prior year operating results to conform with current year presentation, as revenues and operating income from certain product lines previously included within the infrastructure reporting segment are now included within the irrigation reporting segment. Three months ended ($ in thousands) November 30, 2020 November 30, 2019 Operating revenues: Irrigation: North America $ 52,790 $ 53,588 International 34,566 29,739 Irrigation total 87,356 83,327 Infrastructure 21,129 26,066 Total operating revenues $ 108,485 $ 109,393 Operating income: Irrigation $ 10,633 $ 9,784 Infrastructure 4,256 8,741 Corporate (7,354 ) (6,249 ) Total operating income 7,535 12,276 Interest and other expense, net (652 ) (1,021 ) Earnings before income taxes $ 6,883 $ 11,255 ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Total assets: Irrigation $ 331,045 $ 305,928 $ 307,537 Infrastructure 88,995 84,813 113,111 Corporate 155,162 136,070 149,878 $ 575,202 $ 526,811 $ 570,526 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Nov. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
New Accounting Pronouncements | Recent Accounting Guidance Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issues ASU 2017-04, Simplifying the Test for Goodwill Impairment |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Segment | A breakout by segment of revenue recognized over time versus at a point in time for the three months ended November 30, 2020 is as follows: Three months ended November 30, 2020 ($ in thousands) Irrigation Infrastructure Total Point in time $ 80,060 $ 15,452 $ 95,512 Over time 7,296 1,639 8,935 Revenue from the contracts with customers 87,356 17,091 104,447 Lease revenue — 4,038 4,038 Total operating revenues $ 87,356 $ 21,129 $ 108,485 Three months ended November 30, 2019 ($ in thousands) Irrigation Infrastructure Total Point in time $ 73,818 $ 21,162 $ 94,980 Over time 9,509 2,125 11,634 Revenue from the contracts with customers 83,327 23,287 106,614 Lease revenue — 2,779 2,779 Total operating revenues $ 83,327 $ 26,066 $ 109,393 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Earnings Per Share | The following table shows the computation of basic and diluted net earnings per share for the three months ended November 30, 2020 and November 30, 2019: Three months ended ($ and shares in thousands, except per share amounts) November 30, 2020 November 30, 2019 Numerator: Net earnings $ 7,095 $ 8,345 Denominator: Weighted average shares outstanding 10,845 10,795 Diluted effect of stock awards 43 33 Weighted average shares outstanding assuming dilution 10,888 10,828 Basic net earnings per share $ 0.65 $ 0.77 Diluted net earnings per share $ 0.65 $ 0.77 |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive: Three months ended (Units and options in thousands) November 30, 2020 November 30, 2019 Restricted stock units — 19 Stock options 79 — Performance stock units 10 20 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of November 30, 2020, November 30, 2019, and August 31, 2020: ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Raw materials and supplies $ 52,374 $ 47,266 $ 51,205 Work in process 8,041 6,235 6,464 Finished goods and purchased parts, net 58,284 51,908 51,684 Total inventory value before LIFO adjustment 118,699 105,409 109,353 Less adjustment to LIFO value (4,421 ) (8,125 ) (4,561 ) Inventories, net $ 114,278 $ 97,284 $ 104,792 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown: ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Series A Senior Notes $ 115,000 $ 115,000 $ 115,000 Revolving Credit Facility — — — Elecsys Series 2006A Bonds 1,309 1,519 1,344 Total debt 116,309 116,519 116,344 Less current portion (214 ) (210 ) (195 ) Less unamortized debt issuance costs (454 ) (504 ) (467 ) Total long-term debt $ 115,641 $ 115,805 $ 115,682 |
Schedule of Principal Payments Due on Long-Term Debt | Principal payments on the debt are due as follows: Due within $ in thousands 1 year $ 214 2 years 218 3 years 222 4 years 227 5 years 231 Thereafter 115,197 $ 116,309 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of November 30, 2020, November 30, 2019, and August 31, 2020. There were no transfers between any levels for the periods presented. November 30, 2020 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 126,802 $ — $ — $ 126,802 Marketable securities: Corporate bonds — 14,564 — 14,564 U.S. treasury securities — 5,060 — 5,060 Earn-out liability — — (1,112 ) (1,112 ) November 30, 2019 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 120,910 $ — $ — $ 120,910 Derivative assets — 13 — 13 Derivative liabilities — (115 ) — (115 ) August 31, 2020 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 121,403 $ — $ — $ 121,403 Marketable securities: Corporate bonds — 14,426 — 14,426 U.S. treasury securities — 5,085 — 5,085 Derivative assets — 21 — 21 Earn-out liability — — (1,112 ) (1,112 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Undiscounted Environmental Remediation Liability Classifications | The following table summarizes the undiscounted environmental remediation liability classifications included in the condensed consolidated balance sheets as of November 30, 2020, November 30, 2019, and August 31, 2020: ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Other current liabilities $ 1,105 $ 1,243 $ 1,115 Other noncurrent liabilities 15,021 14,548 15,030 Total environmental remediation liabilities $ 16,126 $ 15,791 $ 16,145 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The following table provides the changes in the Company’s product warranties: Three months ended ($ in thousands) November 30, 2020 November 30, 2019 Product warranty accrual balance, beginning of period $ 10,765 $ 8,960 Liabilities accrued for warranties during the period 1,734 1,480 Warranty claims paid during the period (1,641 ) (1,652 ) Product warranty accrual balance, end of period $ 10,858 $ 8,788 |
Shared-Based Compensation (Tabl
Shared-Based Compensation (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Type and Fair Value of Share-Based Compensation Awards | The following table illustrates the type and fair value of share-based compensation awards granted during the three months ended November 30, 2020 and 2019, respectively: Three months ended November 30, 2020 November 30, 2019 Number of units granted Weighted average grant-date fair value per award Number of units granted Weighted average grant-date fair value per award Stock options 35,168 $ 30.68 44,347 $ 24.18 RSUs 26,314 $ 106.72 30,235 $ 90.73 PSUs 19,533 $ 125.23 22,715 $ 102.28 |
Schedule of Assumptions Used | The following table provides the assumptions used in determining the fair value of the stock options awarded during the three months ended November 30, 2020 and 2019: Three months ended November 30, 2020 2019 Weighted-average dividend yield 1.2 % 1.3 % Weighted-average volatility 32.8 % 28.4 % Risk-free interest rate 0.5 % 1.6 % Weighted-average expected life 6 years 6 years |
Schedule of Assumptions Used to Estimate Fair Value of TSR Portion of Awards Granted | The fair value of the TSR portion of the awards granted during the three months ended November 30, 2020 and 2019 was estimated at the grant date using a Monte Carlo simulation model which included the following assumptions: Three months ended November 30, 2020 2019 Expected term (years) 3 3 Risk-free interest rate 0.2 % 1.5 % Volatility 38.6 % 29.5 % Dividend yield 1.2 % 1.3 % |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities Current | Other Current Liabilities ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Other current liabilities: Contract liabilities $ 18,497 $ 13,280 $ 17,296 Compensation and benefits 13,759 11,400 20,945 Warranties 10,858 8,788 10,765 Operating lease liabilities 5,004 4,200 5,123 Dealer related liabilities 3,696 3,536 3,664 Deferred revenue - lease 3,165 2,431 1,822 Accrued insurance 1,253 1,555 1,348 Accrued environmental liabilities 1,105 1,243 1,115 Tax related liabilities 443 2,400 3,726 Other 8,130 5,661 6,842 Total other current liabilities $ 65,910 $ 54,494 $ 72,646 |
Industry Segment Information (T
Industry Segment Information (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three months ended ($ in thousands) November 30, 2020 November 30, 2019 Operating revenues: Irrigation: North America $ 52,790 $ 53,588 International 34,566 29,739 Irrigation total 87,356 83,327 Infrastructure 21,129 26,066 Total operating revenues $ 108,485 $ 109,393 Operating income: Irrigation $ 10,633 $ 9,784 Infrastructure 4,256 8,741 Corporate (7,354 ) (6,249 ) Total operating income 7,535 12,276 Interest and other expense, net (652 ) (1,021 ) Earnings before income taxes $ 6,883 $ 11,255 ($ in thousands) November 30, 2020 November 30, 2019 August 31, 2020 Total assets: Irrigation $ 331,045 $ 305,928 $ 307,537 Infrastructure 88,995 84,813 113,111 Corporate 155,162 136,070 149,878 $ 575,202 $ 526,811 $ 570,526 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | $ 104,447 | $ 106,614 |
Lease revenue | 4,038 | 2,779 |
Total operating revenues | 108,485 | 109,393 |
Irrigation [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | 87,356 | 83,327 |
Lease revenue | 0 | 0 |
Total operating revenues | 87,356 | 83,327 |
Infrastructure [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | 17,091 | 23,287 |
Lease revenue | 4,038 | 2,779 |
Total operating revenues | 21,129 | 26,066 |
Point in Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | 95,512 | 94,980 |
Point in Time [Member] | Irrigation [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | 80,060 | 73,818 |
Point in Time [Member] | Infrastructure [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | 15,452 | 21,162 |
Over Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | 8,935 | 11,634 |
Over Time [Member] | Irrigation [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | 7,296 | 9,509 |
Over Time [Member] | Infrastructure [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from the contracts with customers | $ 1,639 | $ 2,125 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Unsatisfied performance obligation amount | $ 11.3 | ||
Revenue recognized | 6.5 | $ 6.4 | |
Other Current Assets [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract assets | 1.2 | 1.2 | $ 0.9 |
Other Current Liabilities [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract liabilities | $ 21.3 | $ 14.7 | $ 19.6 |
Net Earnings Per Share (Schedul
Net Earnings Per Share (Schedule of Computation of Basic and Diluted Net Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 7,095 | $ 8,345 |
Weighted average shares outstanding | 10,845 | 10,795 |
Diluted effect of stock awards | 43 | 33 |
Weighted average shares outstanding assuming dilution | 10,888 | 10,828 |
Basic net earnings per share | $ 0.65 | $ 0.77 |
Diluted net earnings per share | $ 0.65 | $ 0.77 |
Net Earnings Per Share (Sched_2
Net Earnings Per Share (Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of earnings per share | 0 | 19 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of earnings per share | 79 | 0 |
Performance Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of earnings per share | 10 | 20 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Taxes [Line Items] | ||
Income tax expense (benefit) | $ (212,000) | $ 2,910,000 |
Estimated annual effective income tax rate | 23.80% | 25.80% |
Tax adjustment for unusual items | $ (1,800,000) | $ 0 |
Foreign Jurisdiction [Member] | ||
Income Taxes [Line Items] | ||
Valuation allowance | $ 1,700,000 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Inventory Disclosure [Abstract] | |||
Raw materials and supplies | $ 52,374 | $ 51,205 | $ 47,266 |
Work in process | 8,041 | 6,464 | 6,235 |
Finished goods and purchased parts, net | 58,284 | 51,684 | 51,908 |
Total inventory value before LIFO adjustment | 118,699 | 109,353 | 105,409 |
Less adjustment to LIFO value | (4,421) | (4,561) | (8,125) |
Inventories, net | $ 114,278 | $ 104,792 | $ 97,284 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Debt Instrument [Line Items] | |||
Total debt | $ 116,309 | $ 116,344 | $ 116,519 |
Less current portion | (214) | (195) | (210) |
Less unamortized debt issuance costs | (454) | (467) | (504) |
Total long-term debt | 115,641 | 115,682 | 115,805 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 0 | 0 | 0 |
Elecsys Series 2006A Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 1,309 | 1,344 | 1,519 |
Series A Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | $ 115,000 | $ 115,000 | $ 115,000 |
Long-Term Debt (Schedule of Pri
Long-Term Debt (Schedule of Principal Payments Due on Long-Term Debt) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Debt Disclosure [Abstract] | |||
1 year | $ 214 | ||
2 years | 218 | ||
3 years | 222 | ||
4 years | 227 | ||
5 years | 231 | ||
Thereafter | 115,197 | ||
Total debt | $ 116,309 | $ 116,344 | $ 116,519 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Financial Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 126,802 | $ 121,403 | $ 120,910 |
Marketable securities: | |||
Derivative assets | 21 | 13 | |
Derivative liabilities | (115) | ||
Earn-out liability | (1,112) | (1,112) | |
Corporate Bonds [Member] | |||
Marketable securities: | |||
Marketable securities | 14,564 | 14,426 | |
U.S. Treasury Securities [Member] | |||
Marketable securities: | |||
Marketable securities | 5,060 | 5,085 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 126,802 | 121,403 | 120,910 |
Marketable securities: | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | ||
Earn-out liability | 0 | 0 | |
Level 1 [Member] | Corporate Bonds [Member] | |||
Marketable securities: | |||
Marketable securities | 0 | 0 | |
Level 1 [Member] | U.S. Treasury Securities [Member] | |||
Marketable securities: | |||
Marketable securities | 0 | 0 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Marketable securities: | |||
Derivative assets | 21 | 13 | |
Derivative liabilities | (115) | ||
Earn-out liability | 0 | 0 | |
Level 2 [Member] | Corporate Bonds [Member] | |||
Marketable securities: | |||
Marketable securities | 14,564 | 14,426 | |
Level 2 [Member] | U.S. Treasury Securities [Member] | |||
Marketable securities: | |||
Marketable securities | 5,060 | 5,085 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Marketable securities: | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | $ 0 | ||
Earn-out liability | (1,112) | (1,112) | |
Level 3 [Member] | Corporate Bonds [Member] | |||
Marketable securities: | |||
Marketable securities | 0 | 0 | |
Level 3 [Member] | U.S. Treasury Securities [Member] | |||
Marketable securities: | |||
Marketable securities | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2020 | May 31, 2020 | Nov. 30, 2019 | |
Percentage of marketable securities investments mature within one year | 72.00% | ||
Percentage of marketable securities investments mature within one to three years | 28.00% | ||
Fair Value, Measurements, Nonrecurring [Member] | |||
Assets fair value adjustments | $ 0 | $ 0 | |
Liabilities fair value adjustments | $ 0 | $ 0 | |
Net Irrigate, LLC [Member] | |||
Earn-out liability payment period | 1 year | ||
Maximum potential payout | $ 1,500,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | |
Commitments And Contingencies [Line Items] | |||
Liabilities | $ 271,301 | $ 272,008 | $ 253,811 |
Lindsay, Nebraska Facility [Member] | |||
Commitments And Contingencies [Line Items] | |||
Current environmental remediation accrual | 16,100 | ||
Liabilities | $ 11,000 | ||
Liabilities discounted risk Free interest rate | 1.20% | ||
Discounted portion of liabilities | $ 12,400 | ||
Lindsay, Nebraska Facility [Member] | General and Administrative Expense [Member] | |||
Commitments And Contingencies [Line Items] | |||
Liabilities | $ 1,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Undiscounted Environmental Remediation Liability Classifications) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Commitments And Contingencies Disclosure [Abstract] | |||
Other current liabilities | $ 1,105 | $ 1,115 | $ 1,243 |
Other noncurrent liabilities | 15,021 | 15,030 | 14,548 |
Total environmental remediation liabilities | $ 16,126 | $ 16,145 | $ 15,791 |
Warranties (Schedule of Product
Warranties (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Product Warranties Disclosures [Abstract] | ||
Product warranty accrual balance, beginning of period | $ 10,765 | $ 8,960 |
Liabilities accrued for warranties during the period | 1,734 | 1,480 |
Warranty claims paid during the period | (1,641) | (1,652) |
Product warranty accrual balance, end of period | $ 10,858 | $ 8,788 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 1,700 | $ 1,200 |
Share withheld for payroll tax obligations | $ 1,269 | $ 1,111 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares to be settled in cash | 2,162 | 2,730 |
Weighted average grant-date stock price of awards to be settled in cash | $ 110.21 | $ 94.36 |
Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance Stock Units [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards actually earned | 0.00% | |
Performance Stock Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards actually earned | 200.00% |
Share-Based Compensation (Summa
Share-Based Compensation (Summary Of Type And Fair Value Of Share-Based Compensation Awards) (Details) - $ / shares | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Stock Options [Member] | ||
Number of units granted | 35,168 | 44,347 |
Weighted average grant-date fair value per award | $ 30.68 | $ 24.18 |
Restricted Stock Units [Member] | ||
Number of units granted | 26,314 | 30,235 |
Weighted average grant-date fair value per award | $ 106.72 | $ 90.73 |
Performance Stock Units [Member] | ||
Number of units granted | 19,533 | 22,715 |
Weighted average grant-date fair value per award | $ 125.23 | $ 102.28 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Assumptions Used) (Details) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted-average dividend yield | 1.20% | 1.30% |
Weighted-average volatility | 32.80% | 28.40% |
Risk-free interest rate | 0.50% | 1.60% |
Weighted-average expected life | 6 years | 6 years |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Assumptions Used to Estimate Fair Value of TSR Portion of Awards Granted) (Details) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 6 years | 6 years |
Risk-free interest rate | 0.50% | 1.60% |
Volatility | 32.80% | 28.40% |
Dividend yield | 1.20% | 1.30% |
Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 3 years | 3 years |
Risk-free interest rate | 0.20% | 1.50% |
Volatility | 38.60% | 29.50% |
Dividend yield | 1.20% | 1.30% |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule of Other Liabilities Current) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Other Liabilities Disclosure [Abstract] | |||
Contract liabilities | $ 18,497 | $ 17,296 | $ 13,280 |
Compensation and benefits | 13,759 | 20,945 | 11,400 |
Warranties | 10,858 | 10,765 | 8,788 |
Operating lease liabilities | 5,004 | 5,123 | 4,200 |
Dealer related liabilities | 3,696 | 3,664 | 3,536 |
Deferred revenue - lease | 3,165 | 1,822 | 2,431 |
Accrued insurance | 1,253 | 1,348 | 1,555 |
Accrued environmental liabilities | 1,105 | 1,115 | 1,243 |
Tax related liabilities | 443 | 3,726 | 2,400 |
Other | 8,130 | 6,842 | 5,661 |
Total other current liabilities | $ 65,910 | $ 72,646 | $ 54,494 |
Share Repurchases (Narrative) (
Share Repurchases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Equity [Abstract] | ||
Number of shares of common stock repurchased during the period | 0 | 0 |
Remaining amount available under the repurchase program | $ 63.7 |
Industry Segment Information (N
Industry Segment Information (Narrative) (Details) | 3 Months Ended | |
Nov. 30, 2020Segmentcustomer | Nov. 30, 2019customer | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 2 | |
Irrigation [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating segments | 1 | |
Infrastructure [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating segments | 1 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Number of major customers | customer | 0 | 0 |
Industry Segment Information (S
Industry Segment Information (Schedule of Segment Reporting Information Impacts on Statement of Operations, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Total operating revenues | $ 108,485 | $ 109,393 |
Total operating income | 7,535 | 12,276 |
Interest and other expense, net | (652) | (1,021) |
Earnings before income taxes | 6,883 | 11,255 |
Irrigation [Member] | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 87,356 | 83,327 |
Total operating income | 10,633 | 9,784 |
Irrigation [Member] | North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 52,790 | 53,588 |
Irrigation [Member] | International [Member] | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 34,566 | 29,739 |
Infrastructure [Member] | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 21,129 | 26,066 |
Total operating income | 4,256 | 8,741 |
Corporate Segment | ||
Segment Reporting Information [Line Items] | ||
Total operating income | $ (7,354) | $ (6,249) |
Industry Segment Information _2
Industry Segment Information (Schedule of Segment Reporting Information Impacts on Balance Sheet, by Segment) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 575,202 | $ 570,526 | $ 526,811 |
Irrigation [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 331,045 | 307,537 | 305,928 |
Infrastructure [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 88,995 | 113,111 | 84,813 |
Corporate Segment | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 155,162 | $ 149,878 | $ 136,070 |