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## FINANCIAL OVERVIEW 

## TO OUR SHAREHOLDERS 

In the history of Lindsay Corporation, the Company has performed well through both the peaks and valleys that characterize the agriculture industry. After several years of record performance, we anticipated that some slowdown would occur in our fi scal year 2014. Despite the expected decrease in revenue, Lindsay was able to maintain strong margins, achieve signi fi cant improvement in our infrastructure segment, and solidify our position as the market technology leader in the irrigation industry. We continued to deliver solutions that offer exceptional value in the marketplace as we create value for shareholders. 

## FINANCIAL PERFORMANCE 

For the fi scal year ended August 31, 2014, Company revenues were $617. 9 million, an 11 percent decrease from the record $690.8 million of fi scal 2013. 

Irrigation equipment revenues decreased 14 percent from the prior year to $539.9 million. U.S. irrigation revenues of $331.5 million represented a 14 percent decline, driven largely by declining crop prices and the lessening of drought conditions in the corn belt. International irrigation revenues declined 13 percent to $208.4 million primarily due to Iraq contract revenues that were included in fi scal year 2013. 

Infrastructure segment revenues increased 20 percent to $78.0 million from $64.9 million in fi scal 2013 due to signi fi cantly increased sales of road safety products and rail products. With the higher sales volume, infrastructure operating income was $3.5 million compared to a $0.8 million loss the prior year. 

For fi scal 2014, Company operating income was $78.4 million, a 27 percent decrease from 2013. Net earnings were $51.5 million, or $4.00 per diluted share, compared with $70.6 million, or $5.47 per diluted share, in the prior year. Operating expenses were $92.6 million, or 15.0 percent of sales, compared to $87.8 million, or 12.7 percent of sales, for fi scal 2013. Gross margin for fi scal 2014 declined slightly to 27.7 percent compared to 28.2 percent in 2013. Operating margin decreased to 12.7 percent from 15.5 percent. 

While we experienced the effects of a cyclical downturn in the agricultural segment in 2014, we were able to strengthen our balance sheet with solid net earnings and improvements in our working capital position. At August 31, 2014, cash and cash equivalents were $172 million, $20 million higher than the prior year. Our cash position grew even as we invested nearly $18 million in capital expenditures primarily for capacity expansion, and by doubling our quarterly dividend and repurchasing $41 million of our outstanding common stock. The Company has no long-term debt. 

