10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-13419

Lindsay Corporation

(Exact name of registrant as specified in its charter)

Delaware	47-0554096
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
18135 Burke Street, Suite 100, Omaha, Nebraska	68022
(Address of principal executive offices)	(Zip Code)

402‑829-6800

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:  

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	LNN	New York Stock Exchange, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:  

Large accelerated filer	☒	Accelerated filer	☐
Non‑accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐   No ☒

As of April 2, 2021, 10,906,590 shares of the registrant’s common stock were outstanding.

Lindsay Corporation

INDEX FORM 10-Q

		Page
Part I – FINANCIAL INFORMATION		3
	ITEM 1 – Financial Statements	3
	Condensed Consolidated Statements of Earnings for the three and six months ended February 28, 2021 and February 29, 2020	3
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended February 28, 2021 and February 29, 2020	4
	Condensed Consolidated Balance Sheets as of February 28, 2021, February 29, 2020, and August 31, 2020	5
	Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended February 28, 2021 and February 29, 2020	6
	Condensed Consolidated Statements of Cash Flows for the six months ended February 28, 2021 and February 29, 2020	8
	Notes to the Condensed Consolidated Financial Statements	9
	ITEM 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
	ITEM 3 – Quantitative and Qualitative Disclosures about Market Risk	24
	ITEM 4 – Controls and Procedures	25
Part II – OTHER INFORMATION		26
	ITEM 1 – Legal Proceedings	26
	ITEM 1A – Risk Factors	26
	ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds	26
	ITEM 3 – Defaults Upon Senior Securities	26
	ITEM 4 – Mine Safety Disclosures	26
	ITEM 5 – Other Information	26
	ITEM 6 – Exhibits	27
SIGNATURES		28

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Part I – FINANCIAL INFORMATION

ITEM 1 - Financial Statements

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

	Three months ended						Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Operating revenues	$	143,577		$	113,788		$	252,062		$	223,181
Cost of operating revenues		102,403			80,382			179,480			155,701
Gross profit		41,174			33,406			72,582			67,480
Operating expenses:
Selling expense		7,778			8,192			15,110			14,684
General and administrative expense		14,275			13,167			27,727			24,971
Engineering and research expense		3,312			3,405			6,402			6,907
Total operating expenses		25,365			24,764			49,239			46,562
Operating income		15,809			8,642			23,343			20,918
Other (expense) income:
Interest expense		(1,205	)		(1,191	)		(2,406	)		(2,377	)
Interest income		268			389			571			1,004
Other expense, net		(311	)		(973	)		(65	)		(1,423	)
Total other (expense) income		(1,248	)		(1,775	)		(1,900	)		(2,796	)
Earnings before income taxes		14,561			6,867			21,443			18,122
Income tax expense		2,685			1,351			2,472			4,261
Net earnings	$	11,876		$	5,516		$	18,971		$	13,861
Earnings per share:
Basic	$	1.09		$	0.51		$	1.75		$	1.28
Diluted	$	1.08		$	0.51		$	1.74		$	1.28
Shares used in computing earnings per share:
Basic		10,884			10,825			10,865			10,810
Diluted		10,981			10,857			10,934			10,843
Cash dividends declared per share	$	0.32		$	0.31		$	0.64		$	0.62

See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three months ended						Six months ended
($ in thousands)	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Net earnings	$	11,876		$	5,516		$	18,971		$	13,861
Other comprehensive income (loss):
Defined benefit pension plan adjustment, net of tax		59			43			102			86
Foreign currency translation adjustment, net of hedging activities and tax		481			(895	)		1,864			(1,188	)
Unrealized gain (loss) on marketable securities, net of tax		(25	)		61			(56	)		61
Total other comprehensive income (loss), net of tax expense (benefit) of $20, ($449), ($12), and ($373), respectively		515			(791	)		1,910			(1,041	)
Total comprehensive income	$	12,391		$	4,725		$	20,881		$	12,820

See accompanying notes to condensed consolidated financial statements.

- 4 -

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

($ and shares in thousands, except par values)	February 28, 2021			February 29, 2020			August 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	110,775		$	101,272		$	121,403
Marketable securities		19,555			18,740			19,511
Receivables, net of allowance of $3,021, $2,597, and $2,780,    respectively		94,211			80,468			84,604
Inventories, net		121,566			105,454			104,792
Other current assets, net		29,509			19,083			17,625
Total current assets		375,616			325,017			347,935
Property, plant, and equipment:
Cost		223,418			191,688			208,107
Less accumulated depreciation		(134,197	)		(122,926	)		(128,526	)
Property, plant, and equipment, net		89,221			68,762			79,581
Intangibles, net		22,383			23,162			23,477
Goodwill		68,087			64,338			68,004
Operating lease right-of-use assets		20,173			27,257			27,457
Deferred income tax assets		10,347			10,162			9,935
Other noncurrent assets		10,821			15,632			14,137
Total assets	$	596,648		$	534,330		$	570,526
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	39,934		$	33,307		$	29,554
Current portion of long-term debt		215			211			195
Other current liabilities		74,687			54,303			72,646
Total current liabilities		114,836			87,821			102,395
Pension benefits liabilities		6,182			5,868			6,374
Long-term debt		115,599			115,765			115,682
Operating lease liabilities		20,174			25,919			25,862
Deferred income tax liabilities		900			839			889
Other noncurrent liabilities		19,933			20,791			20,806
Total liabilities		277,624			257,003			272,008
Shareholders' equity:
Preferred stock of $1 par value - authorized 2,000 shares; no shares issued and outstanding		—			—			—
Common stock of $1 par value - authorized 25,000 shares;    18,990, 18,918, and 18,918 shares issued, respectively		18,990			18,918			18,918
Capital in excess of stated value		84,206			74,645			77,686
Retained earnings		511,728			481,890			499,724
Less treasury stock - at cost, 8,083 shares		(277,238	)		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(18,662	)		(20,888	)		(20,572	)
Total shareholders' equity		319,024			277,327			298,518
Total liabilities and shareholders' equity	$	596,648		$	534,330		$	570,526

See accompanying notes to condensed consolidated financial statements.

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Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
($ and shares in thousands, except per share amounts)
(Unaudited)
	Shares of common stock		Shares of treasury stock		Common stock		Capital in excess of stated value		Retained earnings			Treasury stock			Accumulated other comprehensive loss, net			Total shareholders’ equity
Balance at August 31, 2019		18,870		8,083	$	18,870	$	71,684	$	474,740		$	(277,238	)	$	(19,847	)	$	268,209
Comprehensive income:
Net earnings		—		—		—		—		13,861			—			—			13,861
Other comprehensive loss		—		—		—		—		—			—			(1,041	)		(1,041	)
Total comprehensive income		—		—		—		—		—			—			—			12,820
Cash dividends ($.62) per share		—		—		—		—		(6,711	)		—			—			(6,711	)
Issuance of common shares under share compensation plans, net		48		—		48		386		—			—			—			434
Share-based compensation    expense		—		—		—		2,575		—			—			—			2,575
Balance at February 29, 2020		18,918		8,083	$	18,918	$	74,645	$	481,890		$	(277,238	)	$	(20,888	)	$	277,327
Balance at August 31, 2020		18,918		8,083	$	18,918	$	77,686	$	499,724		$	(277,238	)	$	(20,572	)	$	298,518
Comprehensive income:
Net earnings		—		—		—		—		18,971			—			—			18,971
Other comprehensive income		—		—		—		—		—			—			1,910			1,910
Total comprehensive income		—		—		—		—		—			—			—			20,881
Cash dividends ($.64) per share		—		—		—		—		(6,967	)		—			—			(6,967	)
Issuance of common shares under share compensation plans, net		72		—		72		2,473		—			—			—			2,545
Share-based compensation    expense		—		—		—		4,047		—			—			—			4,047
Balance at February 28, 2021		18,990		8,083	$	18,990	$	84,206	$	511,728		$	(277,238	)	$	(18,662	)	$	319,024
See accompanying notes to condensed consolidated financial statements.

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Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
($ and shares in thousands, except per share amounts)
(Unaudited)
	Shares of common stock		Shares of treasury stock		Common stock		Capital in excess of stated value		Retained earnings			Treasury stock			Accumulated other comprehensive loss, net			Total shareholders’ equity
Balance at November 30, 2019		18,897		8,083	$	18,897	$	71,706	$	479,732		$	(277,238	)	$	(20,097	)	$	273,000
Comprehensive income:
Net earnings		—		—		—		—		5,516			—			—			5,516
Other comprehensive income		—		—		—		—		—			—			(791	)		(791	)
Total comprehensive income		—		—		—		—		—			—			—			4,725
Cash dividends ($0.31) per share		—		—		—		—		(3,358	)		—			—			(3,358	)
Issuance of common shares under share compensation plans, net		21		—		21		1,524		—			—			—			1,545
Share-based compensation expense		—		—		—		1,415		—			—			—			1,415
Balance at February 29, 2020		18,918		8,083	$	18,918	$	74,645	$	481,890		$	(277,238	)	$	(20,888	)	$	277,327
Balance at November 30, 2020		18,948		8,083	$	18,948	$	78,026	$	503,342		$	(277,238	)	$	(19,177	)	$	303,901
Comprehensive income:
Net earnings		—		—		—		—		11,876			—			—			11,876
Other comprehensive income		—		—		—		—		—			—			515			515
Total comprehensive income		—		—		—		—		—			—			—			12,391
Cash dividends ($0.32) per share				—		—		—		(3,490	)		—			—			(3,490	)
Issuance of common shares under share compensation plans, net		42		—		42		3,716		—			—			—			3,758
Share-based compensation expense		—		—		—		2,464		—			—			—			2,464
Balance at February 28, 2021		18,990		8,083	$	18,990	$	84,206	$	511,728		$	(277,238	)	$	(18,662	)	$	319,024
See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six months ended
($ in thousands)	February 28, 2021			February 29, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	18,971		$	13,861
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization		9,878			9,418
Gain on sale of assets held-for-sale		—			(1,191	)
Provision for uncollectible accounts receivable		246			213
Deferred income taxes		206			1,806
Share-based compensation expense		4,047			2,575
Unrealized foreign currency transaction (gain) loss		(754	)		1,515
Other, net		1,804			(2,153	)
Changes in assets and liabilities:
Receivables		(10,769	)		(5,716	)
Inventories		(16,245	)		(14,153	)
Other current assets		(9,492	)		(4,539	)
Accounts payable		10,962			3,540
Other current liabilities		334			(2,183	)
Other noncurrent assets and liabilities		1,940			(5,178	)
Net cash provided by (used in) operating activities		11,128			(2,185	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(16,556	)		(5,335	)
Proceeds from sale of property and equipment held-for-sale		—			3,955
Purchases of marketable securities available-for-sale		(8,313	)		(19,978	)
Proceeds from maturities of marketable securities available-for-sale		8,043			1,250
Other investing activities, net		(860	)		1,092
Net cash used in investing activities		(17,686	)		(19,016	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		3,814			1,545
Common stock withheld for payroll tax obligations		(1,269	)		(1,111	)
Principal payments on long-term debt		(88	)		(104	)
Dividends paid		(6,967	)		(6,711	)
Net cash used in financing activities		(4,510	)		(6,381	)
Effect of exchange rate changes on cash and cash equivalents		440			1,650
Net change in cash and cash equivalents		(10,628	)		(25,932	)
Cash and cash equivalents, beginning of period		121,403			127,204
Cash and cash equivalents, end of period	$	110,775		$	101,272
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid, net of refunds	$	2,397		$	2,294
Interest paid	$	2,347		$	2,334

See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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. The standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill; rather, an entity will measure its goodwill impairment by the amount the carrying value exceeds the fair value of a reporting unit. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

- 9 -

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 and six months ended February 28, 2021 and February 29, 2020 is as follows:

	Three months ended						Three months ended
	February 28, 2021						February 29, 2020
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	110,814	$	20,819	$	131,633	$	73,844	$	17,334	$	91,178
Over time		7,758		1,535		9,293		19,650		1,426		21,076
Revenue from the contracts with customers		118,572		22,354		140,926		93,494		18,760		112,254
Lease revenue		—		2,651		2,651		—		1,534		1,534
Total operating revenues	$	118,572	$	25,005	$	143,577	$	93,494	$	20,294	$	113,788
	Six months ended						Six months ended
	February 28, 2021						February 29, 2020
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	190,926	$	36,269	$	227,195	$	147,661	$	38,498	$	186,159
Over time		15,003		3,174		18,177		29,159		3,550		32,709
Revenue from the contracts with customers		205,929		39,443		245,372		176,820		42,048		218,868
Lease revenue		—		6,690		6,690		—		4,313		4,313
Total operating revenues	$	205,929	$	46,133	$	252,062	$	176,820	$	46,361	$	223,181

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 $6.8 million at February 28, 2021.

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 February 28, 2021, February 29, 2020, and August 31, 2020, contract assets amounted to $1.2 million, $0.9 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 February 28, 2021, February 29, 2020, and August 31, 2020, contract liabilities amounted to $21.3 million, $13.4 million, and $19.6 million, respectively. Contract liabilities are included within other current liabilities on the condensed consolidated balance sheets. During the Company’s six months ended February 28, 2021 and February 29 2020, the Company recognized $15.4 million and $12.6 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.

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.  

- 10 -

The following table shows the computation of basic and diluted net earnings per share for the three and six months ended February 28, 2021 and February 29, 2020:

	Three months ended				Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Numerator:
Net earnings	$	11,876	$	5,516	$	18,971	$	13,861
Denominator:
Weighted average shares outstanding		10,884		10,825		10,865		10,810
Diluted effect of stock awards		97		32		69		33
Weighted average shares outstanding assuming    dilution		10,981		10,857		10,934		10,843
Basic net earnings per share	$	1.09	$	0.51	$	1.75	$	1.28
Diluted net earnings per share	$	1.08	$	0.51	$	1.74	$	1.28

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				Six months ended
(Units and options in thousands)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Restricted stock units		—		4		—		11
Stock options		5		12		42		6
Performance stock units		3		—		6		10

Note 4 – Income Taxes

The Company recorded income tax expense of $2.7 million and $1.4 million for the three months ended February 28, 2021 and February 29, 2020, respectively, and recorded income tax expense of $2.5 million and $4.3 million for the six months ended February 28, 2021 and February 29, 2020, respectively.

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 23.7 percent and 23.5 percent for the six months ended February 28, 2021 and February 29, 2020, respectively.

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 $2.6 million for the six months ended February 28, 2021, which includes 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 to be realizable. The tax effects of discrete items did not have a significant impact on income tax expense for the six months ended February 29, 2020.

Note 5 – Inventories

Inventories consisted of the following as of February 28, 2021, February 29, 2020, and August 31, 2020:

($ in thousands)	February 28, 2021			February 29, 2020			August 31, 2020
Raw materials and supplies	$	62,404		$	50,240		$	51,205
Work in process		8,993			6,746			6,464
Finished goods and purchased parts, net		58,682			53,496			51,684
Total inventory value before LIFO adjustment		130,079			110,482			109,353
Less adjustment to LIFO value		(8,513	)		(5,028	)		(4,561	)
Inventories, net	$	121,566		$	105,454		$	104,792

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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)	February 28, 2021			February 29, 2020			August 31, 2020
Series A Senior Notes	$	115,000		$	115,000		$	115,000
Revolving Credit Facility		—			—			—
Elecsys Series 2006A Bonds		1,256			1,467			1,344
Total debt		116,256			116,467			116,344
Less current portion		(215	)		(211	)		(195	)
Less unamortized debt issuance costs		(442	)		(491	)		(467	)
Total long-term debt	$	115,599		$	115,765		$	115,682

Principal payments on the debt are due as follows:

Due within	$ in thousands
1 year	$	215
2 years		219
3 years		224
4 years		228
5 years		232
Thereafter		115,138
	$	116,256

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 February 28, 2021, February 29, 2020, and August 31, 2020. There were no transfers between any levels for the periods presented.

	February 28, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	110,775	$	—	$	—		$	110,775
Marketable securities:
Corporate bonds		—		15,501		—			15,501
U.S. treasury securities		—		4,054		—			4,054
Earn-out liability		—		—		(1,098	)		(1,098	)
	February 29, 2020
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	101,272	$	—	$	—		$	101,272
Marketable securities:
Corporate bonds		—		14,555		—			14,555
U.S. treasury securities		—		4,185		—			4,185
Derivative assets		—		247		—			247
	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	)

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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 February 28, 2021, approximately 65% of the Company’s marketable securities investments mature within one year and 35% 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 six months ended February 28, 2021 or February 29, 2020.

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® end terminal.  Despite the September 2018 reversal of a sizable judgment against a competitor, the Company expects that the significant attention brought to the infrastructure products industry by the original judgment may lead to additional lawsuits being filed against the Company and others in the industry. 

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

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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 calendar 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 February 28, 2021, February 29, 2020, and August 31, 2020:

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Other current liabilities	$	1,105	$	1,243	$	1,115
Other noncurrent liabilities		15,017		14,396		15,030
Total environmental remediation liabilities	$	16,122	$	15,639	$	16,145

Note 9 – Warranties

The following table provides the changes in the Company’s product warranties:

	Three months ended						Six months ended
($ in thousands)	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Product warranty accrual balance, beginning of period	$	10,858		$	8,788		$	10,765		$	8,960
Liabilities accrued for warranties during the period		2,247			2,135			3,981			3,616
Warranty claims paid during the period		(1,378	)		(1,933	)		(3,019	)		(3,586	)
Changes in estimates		59			—			59			—
Product warranty accrual balance, end of period	$	11,786		$	8,990		$	11,786		$	8,990

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 $2.5 million and $1.5 million for the three months ended February 28, 2021 and February 29, 2020, respectively, and $4.2 million and $2.7 million for the six months ended February 28, 2021 and February 29, 2020, respectively.

During the second quarter of fiscal 2021, the Company’s former chief executive officer retired and entered into a one-year consulting agreement to provide transition services. The agreement provided for the modification of all outstanding and unvested share-based payment awards held by the former chief executive officer to continue vesting according to their respective original vesting schedules for the duration of the consulting services. For the three months ended February 28, 2021, the Company recorded $1.5 million of incremental share-based compensation expense related to this modification.

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Note 11 – Other Current Liabilities

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Other current liabilities:
Contract liabilities	$	19,982	$	12,323	$	17,296
Compensation and benefits		16,717		13,398		20,945
Warranties		11,786		8,990		10,765
Operating lease liabilities		3,965		4,790		5,123
Dealer related liabilities		3,873		3,681		3,664
Deferred revenue - lease		3,301		2,190		1,822
Tax related liabilities		2,033		1,709		3,726
Accrued insurance		1,320		1,624		1,348
Accrued environmental liabilities		1,105		1,243		1,115
Other		10,605		4,355		6,842
Total other current liabilities	$	74,687	$	54,303	$	72,646

Note 12 – Share Repurchases

There were no shares repurchased during the three and six months ended February 28, 2021 and February 29, 2020 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of February 28, 2021.

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 revenues, 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 or six months ended February 28, 2021 or February 29, 2020.

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, or “internet of things”, solutions. The irrigation reporting segment consists of one operating segment.   

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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’s operating results to conform with the current year’s 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						Six months ended
($ in thousands)	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Operating revenues:
Irrigation:
North America	$	80,178		$	67,088		$	132,968		$	120,675
International		38,394			26,406			72,961			56,145
Irrigation total		118,572			93,494			205,929			176,820
Infrastructure		25,005			20,294			46,133			46,361
Total operating revenues	$	143,577		$	113,788		$	252,062		$	223,181
Operating income:
Irrigation	$	18,045		$	10,084		$	28,678		$	19,867
Infrastructure		6,341			5,888			10,597			14,630
Corporate		(8,577	)		(7,330	)		(15,932	)		(13,579	)
Total operating income		15,809			8,642			23,343			20,918
Interest and other expense, net		(1,248	)		(1,775	)		(1,900	)		(2,796	)
Earnings before income taxes	$	14,561		$	6,867		$	21,443		$	18,122

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Total assets:
Irrigation	$	363,542	$	318,689	$	307,537
Infrastructure		87,542		82,608		113,111
Corporate		145,564		133,033		149,878
	$	596,648	$	534,330	$	570,526

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ITEM 2 ‑ Management's Discussion and Analysis of Financial Condition and Results of Operations

Concerning Forward‑Looking Statements

This Quarterly Report on Form 10-Q contains not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Statements that are not historical are forward-looking and reflect information concerning possible or assumed future results of operations and planned financing of the Company.  In addition, forward-looking statements may be made orally or in press releases, conferences, reports, on the Company's web site, or otherwise, in the future by or on behalf of the Company.  When used by or on behalf of the Company, the words “expect,” “anticipate,” “estimate,” “believe,” “intend,” “will,” “plan,” “predict,” “project,” “outlook,” “could,” “may,” “should” or similar expressions generally identify forward-looking statements.  The entire section entitled “Executive Overview and Outlook” should be considered forward-looking statements.  For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve a number of risks and uncertainties, including but not limited to those discussed in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020.  Readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results or conditions, which may not occur as anticipated.  Actual results or conditions could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein and in the Company’s other public filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2020, as well as other risks and uncertainties not now anticipated.  The risks and uncertainties described herein and in the Company’s other public filings are not exclusive and further information concerning the Company and its businesses, including factors that potentially could materially affect the Company's financial results, may emerge from time to time.  Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

COVID-19 Impact

In March 2020, the World Health Organization declared the 2019 coronavirus disease (COVID-19) a global pandemic. This outbreak, which has continued to spread worldwide, has adversely affected workforces, customers, economies, and financial markets globally, leading to economic uncertainty.  Shelter-in-place or stay-at-home orders have been implemented from time to time in many of the jurisdictions in which the Company operates.  However, because the Company supports critical industries, the Company’s facilities worldwide have generally been considered “business essential” and have remained open throughout the outbreak with limited exceptions.  Accordingly, COVID-19 has had a limited impact on the Company’s manufacturing operations to date. While the Company has implemented new procedures to protect the health and well-being of employees and customers, costs associated with these procedures have not been material. In addition, the pandemic has not had a material adverse effect on demand for the Company’s irrigation or infrastructure products; however, the timing of infrastructure revenue continues to be impacted by reduced road construction activity and delays in project implementations.

The ultimate impact of COVID-19 on the Company’s business, results of operations, or cash flows remains uncertain and depends on numerous evolving factors that the Company may not be able to accurately predict or effectively respond to, including, without limitation: the duration and scope of the outbreak; mutations of COVID-19; actions taken by governments, businesses, and individuals in response to the outbreak; the effect on economic activity and actions taken in response; the effect on customers and their demand for the Company’s products and services; and the Company’s ability to manufacture, sell, distribute and service its products, including without limitation as a result of supply chain challenges, facility closures, social distancing, restrictions on travel, fear or anxiety by the populace, and shelter-in-place orders. As such, the full financial impact of COVID-19 on the Company’s business is difficult to estimate.

Accounting Policies

In preparing the Company’s condensed consolidated financial statements in conformity with U.S. GAAP, management must make a variety of decisions which impact the reported amounts and the related disclosures.  These decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates.  In making these decisions, management applies its judgment based on its understanding and analysis of the relevant circumstances and the Company’s historical experience.  

The Company’s accounting policies that are most important to the presentation of its results of operations and financial condition, and which require the greatest use of judgments and estimates by management, are designated as its critical accounting policies.  See discussion of the Company’s critical accounting policies under Item 7 in the Company’s Annual

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Report on Form 10-K for the Company’s fiscal year ended August 31, 2020.  Management periodically re-evaluates and adjusts its critical accounting policies as circumstances change.  There were no significant changes in the Company’s critical accounting policies during the six months ended February 28, 2021.

Recent Accounting Guidance

See Note 1 – Basis of Presentation and the disclosure therein of recently adopted accounting guidance to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Executive Overview and Outlook

Operating revenues for the three months ended February 28, 2021 were $143.6 million, an increase of 26 percent compared to $113.8 million for the three months ended February 29, 2020.  Irrigation segment revenues increased 27 percent to $118.6 million and infrastructure segment revenues increased 23 percent to $25.0 million.  Net earnings for the three months ended February 28, 2021 were $11.9 million, or $1.08 per diluted share, compared to net earnings of $5.5 million, or $0.51 per diluted share, for the three months ended February 29, 2020.  

The Company’s irrigation revenues are highly dependent upon the need for irrigated agricultural crop production, which, in turn, depends upon many factors, including the following primary drivers:

• Agricultural commodity prices – As of February 2021, U.S. corn prices have increased approximately 43 percent and U.S. soybean prices have increased approximately 54 percent from February 2020. The increase in these commodity prices resulted from lower production levels caused by unfavorable weather conditions coupled with higher demand coming primarily from an increase in corn and soybean exports to China.    

• Net farm income – As of February 2021, the U.S. Department of Agriculture (the “USDA”) estimated U.S. 2021 net farm income to be $111.4 billion, a decrease of eight percent from the USDA’s estimated U.S. 2020 net farm income of $121.1 billion.  The decrease is primarily related to a reduction in 2021 in Federal government direct farm program payments from the Coronavirus Food Assistance Program (“CFAP”) that increased government support in 2020.  Federal government direct farm program payments are estimated to return to more historical levels during 2021. A projected increase in cash receipts from crops and livestock is expected to offset a portion of the decrease in government support payments.

• Weather conditions – Demand for irrigation equipment is often positively affected by storm damage and prolonged periods of drought conditions as producers look for ways to reduce the risk of low crop production and crop failures.  Conversely, demand for irrigation equipment can be negatively affected during periods of more predictable or excessive natural precipitation.  

• Governmental policies – A number of governmental laws and regulations can affect the Company’s business, including:

• The Agriculture Improvement Act of 2018 (the “Farm Bill”) was signed into law in December 2018. The Farm Bill continues many of the programs that were in the Agricultural Act of 2014, which expired in September 2018.  Such programs are designed to provide a degree of certainty to growers, including funding for the Environmental Quality Incentives Program, which provides financial assistance to farmers to implement conservation practices, and is frequently used to assist in the purchase of center pivot irrigation systems.

• The U.S. Tax Cuts and Jobs Act (“U.S. Tax Reform”) enacted in December 2017 increased the benefit of certain tax incentives, such as the Section 179 income tax deduction and Section 168 bonus depreciation, which are intended to encourage equipment purchases by allowing the entire cost of equipment to be treated as an expense in the year of purchase rather than amortized over its useful life.  

• Biofuel production continues to be a major demand driver for irrigated corn, sugar cane and soybeans as these crops are used in high volumes to produce ethanol and biodiesel.  The U.S. Environmental Protection Agency (“EPA”) missed the November 30, 2020 deadline to finalize Renewable Fuels Standard (RFS) volume requirements for 2021. In explaining the delay, the EPA cited a steep decline in gasoline sales during the coronavirus pandemic, making it difficult to forecast demand in 2021.

• Many international markets are affected by government policies such as subsidies and other agriculturally related incentives.  While these policies can have a significant effect on individual markets, they typically do not have a material effect on the consolidated results of the Company.

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• Currency – The value of the U.S. dollar fluctuates in relation to the value of currencies in a number of countries to which the Company exports products and in which the Company maintains local operations. The strengthening of the dollar increases the cost in the local currency of the products exported from the U.S. into these countries and, therefore, could negatively affect the Company’s international sales and margins. In addition, the U.S. dollar value of sales made in any affected foreign currencies will decline as the value of the dollar rises in relation to these other currencies.

International irrigation markets remain active with opportunities for further development and expansion, however regional political and economic factors, currency conditions and other factors can create a challenging environment.  Additionally, international results are heavily dependent upon project sales which tend to fluctuate and can be difficult to forecast accurately.  

The infrastructure business is dependent to some extent on government spending for road construction.  In December 2015, the U.S. government enacted a five-year, $305 billion highway-funding bill (the “FAST Act”) to fund highway and bridge projects.  The FAST Act was scheduled to expire in September 2020, however Congress reauthorized a one year extension.  This extension includes an additional $13.6 billion added to the Highway Trust Fund, which finances most government spending for highways and mass transit. A Federal COVID-19 relief bill signed December 27, 2020 includes $10 billion of emergency aid for state departments of transportation to help fund eligible projects. Despite government spending uncertainty, opportunities exist for market expansion in each of the infrastructure product lines. Demand for the Company’s transportation safety products continues to be driven by population growth and the need for improved road safety.

During the first six months of fiscal 2021, demand for irrigation equipment in the U.S. has increased significantly over the same prior year period due to improved farmer sentiment resulting from higher agricultural commodity prices and improved net farm income in 2020. Also, during this period there has been a significant increase in steel and other raw material costs as well as freight and logistics costs. This has created short-term pressure on operating margins until these increased costs can be fully covered by increases in selling prices. In addition, supply chain constraints impacting availability of raw materials and trucking resources have contributed to cost increases and have resulted in extended lead times for deliveries.

The backlog of unshipped orders at February 28, 2021 was $101.4 million compared with $104.4 million at February 29, 2020.  Included in these backlogs are amounts of $2.7 million and $5.5 million, respectively, for orders that are not expected to be fulfilled within the subsequent twelve months.  The decrease in the total backlog is due to two large infrastructure orders in the prior year totaling $38.0 million that did not repeat, while order backlogs in North America and international irrigation are higher compared to the prior year. The Company’s backlog can fluctuate from period to period due to the seasonality, cyclicality, timing and execution of contracts.  Backlog typically represents long-term projects as well as short lead-time orders, and therefore is generally not a good indication of the next fiscal quarter’s revenues.

The global drivers for the Company’s markets of population growth, expanded food production, efficient water use and infrastructure expansion support the Company’s long-term growth goals.  The most significant opportunities for growth over the next several years are in international markets, where irrigation use is less developed and demand is driven primarily by food security, water scarcity and population growth.

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Results of Operations

For the Three Months ended February 28, 2021 compared to the Three Months ended February 29, 2020

The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the three months ended February 28, 2021 and February 29, 2020.  It should be read together with the industry segment information in Note 13 to the condensed consolidated financial statements:

	Three months ended						Percent
($ in thousands)	February 28, 2021			February 29, 2020			Increase (Decrease)
Consolidated
Operating revenues	$	143,577		$	113,788		26%
Gross profit	$	41,174		$	33,406		23%
Gross margin		28.7	%		29.4	%
Operating expenses (1)	$	25,365		$	24,764		2%
Operating income	$	15,809		$	8,642		83%
Operating margin		11.0	%		7.6	%
Other expense, net	$	(1,248	)	$	(1,775	)	-30%
Income tax expense	$	2,685		$	1,351		99%
Overall income tax rate		18.4	%		19.7	%
Net earnings	$	11,876		$	5,516		115%
Irrigation Segment
Segment operating revenues	$	118,572		$	93,494		27%
Segment operating income	$	18,045		$	10,084		79%
Segment operating margin		15.2	%		10.8	%
Infrastructure Segment
Segment operating revenues	$	25,005		$	20,294		23%
Segment operating income	$	6,341		$	5,888		8%
Segment operating margin		25.4	%		29.0	%

⁽¹⁾ Includes $8.6 million and $7.3 million of corporate operating expenses for the three months ended February 28, 2021 and February 29, 2020, respectively.  

Revenues

Operating revenues for the three months ended February 28, 2021 increased 26 percent to $143.6 million from $113.8 million for the three months ended February 29, 2020, as irrigation revenues increased $25.1 million and infrastructure revenues increased $4.7 million.  The irrigation segment provided 83 percent of the Company’s revenue during the three months ended February 28, 2021 as compared to 82 percent for the three months ended February 29, 2020.

North America irrigation revenues for the three months ended February 28, 2021 of $80.2 million increased $13.1 million, or 19 percent, from $67.1 million for the three months ended February 29, 2020. The increase resulted primarily from higher irrigation equipment unit volume and slightly higher average selling prices. The increase was partially offset by revenue from engineering project services in the prior year that did not repeat.  

International irrigation revenues for the three months ended February 28, 2021 of $38.4 million increased $12.0 million, or 45 percent, from $26.4 million for the three months ended February 29, 2020. The increase resulted from higher unit sales volumes in several international markets which were partially offset by the unfavorable effects of foreign currency translation of approximately $0.6 million compared to the prior year second quarter.

Infrastructure segment revenues for the three months ended February 28, 2021 of $25.0 million increased $4.7 million, or 23 percent, from $20.3 million for the three months ended February 29, 2020.  The increase resulted primarily from higher Road Zipper System sales and lease revenue.

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Gross Profit

Gross profit for the three months ended February 28, 2021 of $41.2 million increased 23 percent from $33.4 million for the three months ended February 29, 2020. The increase in gross profit resulted primarily from higher irrigation equipment unit sales volume and was partially offset by the impact of higher raw material and freight costs. In addition, gross profit for the three months ended February 29, 2020 included a gain recorded in the infrastructure segment of $1.2 million on the sale of a building that had been held for sale. Gross margin was 28.7 percent of sales for the three months ended February 28, 2021 compared with 29.4 percent of sales for the three months ended February 29, 2020. Higher gross margin in the prior year was primarily due to the building sale gain.

Operating Expenses

Operating expenses of $25.4 million for the three months ended February 28, 2021 increased $0.6 million, or 2 percent, compared with $24.7 million for the three months ended February 29, 2020. The increase resulted from a one-time expense of $1.5 million in equity awards related to the retirement of the Company’s chief executive officer, which was partially offset by decreases in other areas such as travel.   

Other Expense, net

Other expense for the three months ended February 28, 2021 decreased $0.5 million compared to the three months ended February 29, 2020. The change resulted primarily from lower foreign currency transaction losses.

Income Taxes

The Company recorded income tax expense of $2.7 million and $1.4 million for the three months ended February 28, 2021 and February 29, 2020, respectively.  The effective income tax rate was 18.4 percent and 19.7 percent for the three months ended February 28, 2021 and February 29, 2020, respectively.

For the Six Months ended February 28, 2021 compared to the Six Months ended February 29, 2020

The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the six months ended February 28, 2021 and February 29, 2020.  It should be read together with the industry segment information in Note 13 to the condensed consolidated financial statements:

	Six months ended						Percent
($ in thousands)	February 28, 2021			February 29, 2020			Increase (Decrease)
Consolidated
Operating revenues	$	252,062		$	223,181		13%
Gross profit	$	72,582		$	67,480		8%
Gross margin		28.8	%		30.2	%
Operating expenses (1)	$	49,239		$	46,562		6%
Operating income	$	23,343		$	20,918		12%
Operating margin		9.3	%		9.4	%
Other expense, net	$	(1,900	)	$	(2,796	)	-32%
Income tax expense	$	2,472		$	4,261		-42%
Overall income tax rate		11.5	%		23.5	%
Net earnings	$	18,971		$	13,861		37%
Irrigation Segment
Segment operating revenues	$	205,929		$	176,820		16%
Segment operating income	$	28,678		$	19,867		44%
Segment operating margin		13.9	%		11.2	%
Infrastructure Segment
Segment operating revenues	$	46,133		$	46,361		0%
Segment operating income	$	10,597		$	14,630		-28%
Segment operating margin		23.0	%		31.6	%

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⁽¹⁾ Includes $15.9 million and $13.6 million of corporate operating expenses for the six months ended February 28, 2021 and February 29, 2020, respectively.  

Revenues

Operating revenues for the six months ended February 28, 2021 increased 13 percent to $252.1 million from $223.2 million for the six months ended February 29, 2020, as irrigation revenues increased $29.1 million and infrastructure revenues decreased $0.3 million.  The irrigation segment provided 82 percent of the Company’s revenue during the six months ended February 28, 2021 as compared to 79 percent for the six months ended February 29, 2020.

North America irrigation revenues for the six months ended February 28, 2021 of $132.9 million increased $12.3 million, or 10 percent, from $120.7 million for the six months ended February 29, 2020. The increase resulted primarily from higher irrigation equipment unit sales volume. The increase was partially offset by revenue from engineering project services in the prior year that did not repeat.  

International irrigation revenues for the six months ended February 28, 2021 of $73.0 million increased $16.8 million, or 30 percent, from $56.1 million for the six months ended February 29, 2020. The increase resulted from higher unit sales volumes in several international markets which were partially offset by the unfavorable effects of foreign currency translation of approximately $3.0 million compared to the six months ended February 29, 2020.

Infrastructure segment revenues for the six months ended February 28, 2021 of $46.1 million decreased $0.3 million or 0.5 percent from $46.3 million. The decrease resulted primarily from lower sales of road safety products due to lower road construction activity which was partially offset by higher Road Zipper System lease revenue.

Gross Profit

Gross profit for the six months ended February 28, 2021 of $72.6 million increased 8 percent from $67.5 million for the six months ended February 29, 2020. The increase in gross profit resulted primarily from higher irrigation equipment unit sales volume and was partially offset by the impact of higher raw material and freight costs. In addition, gross profit for the six months ended February 29, 2020 included a gain recorded in the infrastructure segment of $1.2 million on the sale of a building that had been held for sale. Gross margin was 28.8 percent of sales for the six months ended February 28, 2021 compared with 30.2 percent of sales for the six months ended February 29, 2020. Lower gross margin in the current year resulted primarily from a higher proportion of revenues coming from irrigation compared to the prior year, which have lower gross margin than infrastructure revenues. In addition, the prior year gross margin benefited from the building sale gain.

Operating Expenses

Operating expenses of $49.2 million for the six months ended February 28, 2021 increased $2.7 million, or 6 percent, compared with $46.6 million for the six months ended February 29, 2020. The increase resulted primarily from increased incentive compensation expense and a one-time expense of $1.5 million in equity awards related to the retirement of the Company’s chief executive officer. These increases were partially offset by decreases in other areas such as travel.

Other Expense, net

Other expense for the six months ended February 28, 2021 decreased $0.9 million compared to the six months ended February 29, 2020. The change resulted primarily from lower foreign currency transaction losses.

Income Taxes

The Company recorded income tax expense of $2.5 million and $4.3 million for the six months ended February 28, 2021 and February 29, 2020, respectively.  The effective income tax rate was 11.5 percent and 23.5 percent for the six months ended February 28, 2021 and February 29, 2020, respectively.  The six months ended February 28, 2021 include 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 to be realizable.

Liquidity and Capital Resources

The Company's cash, cash equivalents, and marketable securities totaled $130.3 million at February 28, 2021 compared with $120.0 million at February 29, 2020 and $140.9 million at August 31, 2020.  The Company requires cash for financing its receivables and inventories, paying operating expenses and capital expenditures, and for dividends and share

- 22 -

repurchases.  The Company meets its liquidity needs and finances its capital expenditures from its available cash and funds provided by operations along with borrowings under its credit arrangements described below. The Company’s investments in marketable securities are primarily comprised of United States government securities and investment grade corporate bonds. The Company believes its current cash resources, investments in marketable securities, projected operating cash flow, and remaining capacity under its continuing bank lines of credit are sufficient to cover all of its expected working capital needs, planned capital expenditures and dividends.  The Company may require additional borrowings to fund potential acquisitions in the future.

The Company’s total cash and cash equivalents held by foreign subsidiaries were approximately $35.8 million, $39.8 million, and $37.2 million as of February 28, 2021, February 29, 2020, and August 31, 2020, respectively.  The Company considers earnings in foreign subsidiaries to be indefinitely reinvested and would need to accrue and pay incremental state, local, and foreign taxes if such earnings were repatriated to the United States.  The Company does not intend to repatriate the funds and does not expect these funds to have a significant impact on the Company’s overall liquidity.  

Net working capital was $260.8 million at February 28, 2021, as compared with $237.2 million at February 29, 2020 and $245.5 million at August 31, 2020.  Cash provided by operating activities totaled $11.1 million during the six months ended February 28, 2021, compared to cash used in operating activities of $2.2 million during the six months ended February 29, 2020.  This change was primarily due to higher net earnings and more cash generated from changes in working capital, primarily accounts payable and other noncurrent assets and liabilities, compared to the same prior year period.

Cash flows used in investing activities totaled $17.7 million during the six months ended February 28, 2021 compared to $19.0 million during the six months ended February 29, 2020.  The current year period includes $16.6 million in purchases of property, plant, and equipment, compared to $5.3 million in the same prior year period. The increase includes $8.5 million to exercise a purchase option for the land and buildings related to the Company’s manufacturing operation in Turkey. The prior year period included cash outflows of $20.0 million related to the Company’s initial purchase of marketable securities.

Cash flows used in financing activities totaled $4.5 million during the six months ended February 28, 2021 compared to cash flows used in financing activities of $6.4 million during the six months ended February 29, 2020. The decrease was primarily the result of higher proceeds from the exercise of stock options compared to the same prior year period.

Capital Allocation Plan

The Company’s capital allocation plan is to continue investing in revenue and earnings growth, combined with a defined process for enhancing returns to stockholders. Under the Company’s capital allocation plan, the priorities for uses of cash include:

• Investment in organic growth including capital expenditures and expansion of international markets,

• Dividends to stockholders, along with expectations to increase dividends over time,

• Synergistic acquisitions that provide attractive returns to stockholders, and

• Opportunistic share repurchases taking into account cyclical and seasonal fluctuations.

Capital Expenditures

Capital expenditures for fiscal 2021 are expected to be between $20.0 million and $25.0 million, including equipment replacement, productivity improvements and new product development.  The Company’s management does maintain flexibility to modify the amount and timing of some of the planned expenditures in response to economic conditions.

Dividends

In the second quarter of fiscal 2021, the Company paid a quarterly cash dividend to stockholders of $0.32 per common share, or $3.5 million, compared to a quarterly cash dividend of $0.31 per common share, or $3.3 million, in the second quarter of fiscal 2020.

Share Repurchases

The Company’s Board of Directors authorized a share repurchase program of up to $250.0 million of common stock with no expiration date.  Under the program, shares may be repurchased in privately negotiated and/or open market transactions as well as under formalized trading plans in accordance with the guidelines specified under Rule 10b5-1 of the Securities

- 23 -

Exchange Act of 1934, as amended.  There were no shares repurchased during the six months ended February 28, 2021 or February 29, 2020. The remaining amount available under the repurchase program was $63.7 million as of February 28, 2021.  

Long-Term Borrowing Facilities

Senior Notes.  The Company has outstanding $115.0 million in aggregate principal amount of Senior Notes, Series A (the “Senior Notes”).  The entire principal of the Senior Notes is due and payable on February 19, 2030.  Interest on the Senior Notes is payable semi-annually at a fixed annual rate of 3.82 percent. Borrowings under the Senior Notes are unsecured.  The Company used the proceeds of the sale of the Senior Notes for general corporate purposes, including acquisitions and dividends.

Revolving Credit Facility. The Company has outstanding a $50.0 million unsecured Amended and Restated Revolving Credit Facility (the “Revolving Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”) expiring May 31, 2022.  The Company intends to use borrowings under the Revolving Credit Facility for working capital purposes and to fund acquisitions. At February 28, 2021 and February 29, 2020, the Company had no outstanding borrowings under the Revolving Credit Facility.  The amount of borrowings available at any time under the Revolving Credit Facility is reduced by the amount of standby letters of credit issued by Wells Fargo then outstanding.  At February 28, 2021, the Company had the ability to borrow up to $50.0 million under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility bear interest at a variable rate equal to LIBOR plus 90 basis points (1.09 percent at February 28, 2021), subject to adjustment as set forth in the loan documents for the Revolving Credit Facility.  Interest is paid on a monthly to quarterly basis depending on loan type.  The Company currently pays an annual commitment fee of 0.15 percent on the unused portion of the Revolving Credit Facility.

Borrowings under the Revolving Credit Facility have equal priority with borrowings under the Company’s Senior Notes.  Each of the credit arrangements described above include certain covenants relating primarily to the Company’s financial condition. These financial covenants include a funded debt to EBITDA leverage ratio and an interest coverage ratio.  In the event that the loan documents for the Revolving Credit Facility were to require the Company to comply with any financial covenant that is not already included or is more restrictive than what is already included in the arrangement governing the Senior Notes, then such covenant shall be deemed incorporated by reference for the benefit of holders of the Senior Notes.  Upon the occurrence of any event of default of these covenants, including a change in control of the Company, all amounts outstanding thereunder may be declared to be immediately due and payable.  At February 28, 2021 and February 29, 2020, the Company was in compliance with all financial loan covenants contained in its credit arrangements in place as of each of those dates.

Series 2006A Bonds.  Elecsys International LLC, a wholly owned subsidiary of the Company, has outstanding $1.6 million in principal amount of industrial revenue bonds that were issued in 2006 (the “Series 2006A Bonds”).  Principal and interest on the Series 2006A Bonds are payable monthly through maturity on September 1, 2026.  The interest rate is adjustable every five years based on the yield of the 5-year United States Treasury Notes, plus 0.45 percent (0.81 percent as of February 28, 2021).  This rate was adjusted on September 1, 2016 in accordance with the terms of the bonds, and the adjusted rate will be in force until September 1, 2021.  The obligations under the Series 2006A Bonds are secured by a first priority security interest in certain real estate.

Contractual Obligations and Commercial Commitments

There have been no material changes in the Company’s contractual obligations and commercial commitments as described in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020.

ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes from the Company’s quantitative and qualitative disclosures about market risk previously disclosed in the Company’s most recent Annual Report on Form 10-K.  See discussion of the Company’s quantitative and qualitative disclosures about market risk under Part II, Item 7A in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020.

- 24 -

ITEM 4 – Controls and Procedures

Disclosure Controls and Procedures

The Company carried out an evaluation under the supervision and the participation of the Company’s management, including the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of February 28, 2021.

Changes in Internal Control over Financial Reporting

The CEO and CFO determined that there has not been any significant change to the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

- 25 -

Part II – OTHER INFORMATION

ITEM 1 – Legal Proceedings

See the disclosure in Note 8 – Commitments and Contingencies to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q, which disclosure is hereby incorporated herein by reference.

ITEM 1A – Risk Factors

There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the discussions of the Company’s risk factors under Part I, Item 1A in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020.

ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds

None.

ITEM 3 – Defaults Upon Senior Securities

None.

ITEM 4 – Mine Safety Disclosures

Not applicable.

ITEM 5 – Other Information

None.

- 26 -

ITEM 6 – Exhibits

Exhibit
No.	Description
3.1	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.
3.2	Amended and Restated By‑Laws of the Company, effective October 17, 2018, incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on October 19, 2018.
4.1	Specimen Form of Common Stock Certificate, incorporated by reference to Exhibit 4(a) of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2006.
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
32.1*	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.
101*	Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language ("Inline XBRL").
104*	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

* Filed herein. 

- 27 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 6th day of April 2021.

	LINDSAY CORPORATION
By:	/s/ BRIAN L. KETCHAM
Name:	Brian L. Ketcham
Title:	Senior Vice President and Chief Financial Officer
	(on behalf of the registrant and as principal financial officer)

- 28 -

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Randy A. Wood, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lindsay Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ RANDY A. WOOD	President and Chief Executive Officer
Randy A. Wood	April 6, 2021

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Brian L. Ketcham, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lindsay Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ BRIAN L. KETCHAM	Senior Vice President and Chief Financial Officer
Brian L. Ketcham	April 6, 2021

EX-32.1

EXHIBIT 32.1

CERTIFICATION

In connection with the accompanying Quarterly Report on Form 10-Q (the “Report”) of Lindsay Corporation (the “Company”) for the quarter ended February 28, 2021, I, Randy A. Wood, Chief Executive Officer of the Company and I, Brian L. Ketcham, Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ RANDY A. WOOD

Randy A. Wood

President and Chief Executive Officer

/s/ BRIAN L. KETCHAM

Brian L. Ketcham

Senior Vice President and Chief Financial Officer

April 6, 2021

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	6 Months Ended
	Feb. 28, 2021	Apr. 02, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
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		10,906,590
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

XML

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Income Statement [Abstract]
Operating revenues	$ 143,577	$ 113,788	$ 252,062	$ 223,181
Cost of operating revenues	102,403	80,382	179,480	155,701
Gross profit	41,174	33,406	72,582	67,480
Operating expenses:
Selling expense	7,778	8,192	15,110	14,684
General and administrative expense	14,275	13,167	27,727	24,971
Engineering and research expense	3,312	3,405	6,402	6,907
Total operating expenses	25,365	24,764	49,239	46,562
Operating income	15,809	8,642	23,343	20,918
Other (expense) income:
Interest expense	(1,205)	(1,191)	(2,406)	(2,377)
Interest income	268	389	571	1,004
Other expense, net	(311)	(973)	(65)	(1,423)
Total other (expense) income	(1,248)	(1,775)	(1,900)	(2,796)
Earnings before income taxes	14,561	6,867	21,443	18,122
Income tax expense	2,685	1,351	2,472	4,261
Net earnings	$ 11,876	$ 5,516	$ 18,971	$ 13,861
Earnings per share:
Basic	$ 1.09	$ 0.51	$ 1.75	$ 1.28
Diluted	$ 1.08	$ 0.51	$ 1.74	$ 1.28
Shares used in computing earnings per share:
Basic	10,884	10,825	10,865	10,810
Diluted	10,981	10,857	10,934	10,843
Cash dividends declared per share	$ 0.32	$ 0.31	$ 0.64	$ 0.62

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 11,876	$ 5,516	$ 18,971	$ 13,861
Other comprehensive income (loss):
Defined benefit pension plan adjustment, net of tax	59	43	102	86
Foreign currency translation adjustment, net of hedging activities and tax	481	(895)	1,864	(1,188)
Unrealized gain (loss) on marketable securities, net of tax	(25)	61	(56)	61
Total other comprehensive income (loss), net of tax expense (benefit) of $20, ($449), ($12), and ($373), respectively	515	(791)	1,910	(1,041)
Total comprehensive income	$ 12,391	$ 4,725	$ 20,881	$ 12,820

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Statement Of Income And Comprehensive Income [Abstract]
Other comprehensive income (loss), tax (benefit) expense	$ 20	$ (449)	$ (12)	$ (373)

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Current assets:
Cash and cash equivalents	$ 110,775	$ 121,403	$ 101,272
Marketable securities	19,555	19,511	18,740
Receivables, net of allowance of $3,021, $2,597, and $2,780, respectively	94,211	84,604	80,468
Inventories, net	121,566	104,792	105,454
Other current assets, net	29,509	17,625	19,083
Total current assets	375,616	347,935	325,017
Property, plant, and equipment:
Cost	223,418	208,107	191,688
Less accumulated depreciation	(134,197)	(128,526)	(122,926)
Property, plant, and equipment, net	89,221	79,581	68,762
Intangibles, net	22,383	23,477	23,162
Goodwill	68,087	68,004	64,338
Operating lease right-of-use assets	20,173	27,457	27,257
Deferred income tax assets	10,347	9,935	10,162
Other noncurrent assets	10,821	14,137	15,632
Total assets	596,648	570,526	534,330
Current liabilities:
Accounts payable	39,934	29,554	33,307
Current portion of long-term debt	215	195	211
Other current liabilities	74,687	72,646	54,303
Total current liabilities	114,836	102,395	87,821
Pension benefits liabilities	6,182	6,374	5,868
Long-term debt	115,599	115,682	115,765
Operating lease liabilities	20,174	25,862	25,919
Deferred income tax liabilities	900	889	839
Other noncurrent liabilities	19,933	20,806	20,791
Total liabilities	277,624	272,008	257,003
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; 18,990, 18,918, and 18,918 shares issued, respectively	18,990	18,918	18,918
Capital in excess of stated value	84,206	77,686	74,645
Retained earnings	511,728	499,724	481,890
Less treasury stock - at cost, 8,083 shares	(277,238)	(277,238)	(277,238)
Accumulated other comprehensive loss, net	(18,662)	(20,572)	(20,888)
Total shareholders' equity	319,024	298,518	277,327
Total liabilities and shareholders' equity	$ 596,648	$ 570,526	$ 534,330

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Statement Of Financial Position [Abstract]
Receivables, allowance	$ 3,021	$ 2,780	$ 2,597
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	18,990,000	18,918,000	18,918,000
Treasury stock, shares	8,083,000	8,083,000	8,083,000

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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	13,861	$ 0	$ 0	0	13,861	0
Other comprehensive income (loss)	(1,041)	0	0	0	0	(1,041)
Total comprehensive income	12,820	0	0	0	0	0
Cash dividends per share	(6,711)	0	0	0	(6,711)	0
Issuance of common shares under share compensation plans, net	434	$ 48	$ 0	386	0	0
Issuance of common shares under share compensation plans, net, shares		48	0
Share-based compensation expense	2,575	$ 0	$ 0	2,575	0	0
Ending balance, value at Feb. 29, 2020	277,327	$ 18,918	$ (277,238)	74,645	481,890	(20,888)
Ending Balance, shares at Feb. 29, 2020		18,918	8,083
Beginning balance, value at Nov. 30, 2019	273,000	$ 18,897	$ (277,238)	71,706	479,732	(20,097)
Beginning balance, shares at Nov. 30, 2019		18,897	8,083
Net earnings	5,516	$ 0	$ 0	0	5,516	0
Other comprehensive income (loss)	(791)	0	0	0	0	(791)
Total comprehensive income	4,725	0	0	0	0	0
Cash dividends per share	(3,358)	0	0	0	(3,358)	0
Issuance of common shares under share compensation plans, net	1,545	$ 21	$ 0	1,524	0	0
Issuance of common shares under share compensation plans, net, shares		21	0
Share-based compensation expense	1,415	$ 0	$ 0	1,415	0	0
Ending balance, value at Feb. 29, 2020	277,327	$ 18,918	$ (277,238)	74,645	481,890	(20,888)
Ending Balance, shares at Feb. 29, 2020		18,918	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	18,971	$ 0	$ 0	0	18,971	0
Other comprehensive income (loss)	1,910	0	0	0	0	1,910
Total comprehensive income	20,881	0	0	0	0	0
Cash dividends per share	(6,967)	0	0	0	(6,967)	0
Issuance of common shares under share compensation plans, net	2,545	$ 72	$ 0	2,473	0	0
Issuance of common shares under share compensation plans, net, shares		72	0
Share-based compensation expense	4,047	$ 0	$ 0	4,047	0	0
Ending balance, value at Feb. 28, 2021	319,024	$ 18,990	$ (277,238)	84,206	511,728	(18,662)
Ending Balance, shares at Feb. 28, 2021		18,990	8,083
Beginning balance, value at Nov. 30, 2020	303,901	$ 18,948	$ (277,238)	78,026	503,342	(19,177)
Beginning balance, shares at Nov. 30, 2020		18,948	8,083
Net earnings	11,876	$ 0	$ 0	0	11,876	0
Other comprehensive income (loss)	515	0	0	0	0	515
Total comprehensive income	12,391	0	0	0	0	0
Cash dividends per share	(3,490)	0	0	0	(3,490)	0
Issuance of common shares under share compensation plans, net	3,758	$ 42	$ 0	3,716	0	0
Issuance of common shares under share compensation plans, net, shares		42	0
Share-based compensation expense	2,464	$ 0	$ 0	2,464	0	0
Ending balance, value at Feb. 28, 2021	$ 319,024	$ 18,990	$ (277,238)	$ 84,206	$ 511,728	$ (18,662)
Ending Balance, shares at Feb. 28, 2021		18,990	8,083

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Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Statement Of Stockholders Equity [Abstract]
Cash dividends per share	$ 0.32	$ 0.31	$ 0.64	$ 0.62

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 18,971	$ 13,861
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	9,878	9,418
Gain on sale of assets held-for-sale	0	(1,191)
Provision for uncollectible accounts receivable	246	213
Deferred income taxes	206	1,806
Share-based compensation expense	4,047	2,575
Unrealized foreign currency transaction (gain) loss	(754)	1,515
Other, net	1,804	(2,153)
Changes in assets and liabilities:
Receivables	(10,769)	(5,716)
Inventories	(16,245)	(14,153)
Other current assets	(9,492)	(4,539)
Accounts payable	10,962	3,540
Other current liabilities	334	(2,183)
Other noncurrent assets and liabilities	1,940	(5,178)
Net cash provided by (used in) operating activities	11,128	(2,185)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment	(16,556)	(5,335)
Proceeds from sale of property and equipment held-for-sale	0	3,955
Purchases of marketable securities available-for-sale	(8,313)	(19,978)
Proceeds from maturities of marketable securities available-for-sale	8,043	1,250
Other investing activities, net	(860)	1,092
Net cash used in investing activities	(17,686)	(19,016)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	3,814	1,545
Common stock withheld for payroll tax obligations	(1,269)	(1,111)
Principal payments on long-term debt	(88)	(104)
Dividends paid	(6,967)	(6,711)
Net cash used in financing activities	(4,510)	(6,381)
Effect of exchange rate changes on cash and cash equivalents	440	1,650
Net change in cash and cash equivalents	(10,628)	(25,932)
Cash and cash equivalents, beginning of period	121,403	127,204
Cash and cash equivalents, end of period	110,775	101,272
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid, net of refunds	2,397	2,294
Interest paid	$ 2,347	$ 2,334

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Basis of Presentation

6 Months Ended

Feb. 28, 2021

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. The standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill; rather, an entity will measure its goodwill impairment by the amount the carrying value exceeds the fair value of a reporting unit. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

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Revenue Recognition

6 Months Ended

Feb. 28, 2021

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 and six months ended February 28, 2021 and February 29, 2020 is as follows:

	Three months ended						Three months ended
	February 28, 2021						February 29, 2020
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	110,814	$	20,819	$	131,633	$	73,844	$	17,334	$	91,178
Over time		7,758		1,535		9,293		19,650		1,426		21,076
Revenue from the contracts with customers		118,572		22,354		140,926		93,494		18,760		112,254
Lease revenue		—		2,651		2,651		—		1,534		1,534
Total operating revenues	$	118,572	$	25,005	$	143,577	$	93,494	$	20,294	$	113,788
	Six months ended						Six months ended
	February 28, 2021						February 29, 2020
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	190,926	$	36,269	$	227,195	$	147,661	$	38,498	$	186,159
Over time		15,003		3,174		18,177		29,159		3,550		32,709
Revenue from the contracts with customers		205,929		39,443		245,372		176,820		42,048		218,868
Lease revenue		—		6,690		6,690		—		4,313		4,313
Total operating revenues	$	205,929	$	46,133	$	252,062	$	176,820	$	46,361	$	223,181

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 $6.8 million at February 28, 2021.

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 February 28, 2021, February 29, 2020, and August 31, 2020, contract assets amounted to $1.2 million, $0.9 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 February 28, 2021, February 29, 2020, and August 31, 2020, contract liabilities amounted to $21.3 million, $13.4 million, and $19.6 million, respectively. Contract liabilities are included within other current liabilities on the condensed consolidated balance sheets. During the Company’s six months ended February 28, 2021 and February 29 2020, the Company recognized $15.4 million and $12.6 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.

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Net Earnings Per Share

6 Months Ended

Feb. 28, 2021

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.  

The following table shows the computation of basic and diluted net earnings per share for the three and six months ended February 28, 2021 and February 29, 2020:

	Three months ended				Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Numerator:
Net earnings	$	11,876	$	5,516	$	18,971	$	13,861
Denominator:
Weighted average shares outstanding		10,884		10,825		10,865		10,810
Diluted effect of stock awards		97		32		69		33
Weighted average shares outstanding assuming    dilution		10,981		10,857		10,934		10,843
Basic net earnings per share	$	1.09	$	0.51	$	1.75	$	1.28
Diluted net earnings per share	$	1.08	$	0.51	$	1.74	$	1.28

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				Six months ended
(Units and options in thousands)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Restricted stock units		—		4		—		11
Stock options		5		12		42		6
Performance stock units		3		—		6		10

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Income Taxes

6 Months Ended

Feb. 28, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 – Income Taxes

The Company recorded income tax expense of $2.7 million and $1.4 million for the three months ended February 28, 2021 and February 29, 2020, respectively, and recorded income tax expense of $2.5 million and $4.3 million for the six months ended February 28, 2021 and February 29, 2020, respectively.

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 23.7 percent and 23.5 percent for the six months ended February 28, 2021 and February 29, 2020, respectively.

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 $2.6 million for the six months ended February 28, 2021, which includes 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 to be realizable. The tax effects of discrete items did not have a significant impact on income tax expense for the six months ended February 29, 2020.

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Inventories

6 Months Ended

Feb. 28, 2021

Inventory Disclosure [Abstract]

Inventories

Note 5 – Inventories

Inventories consisted of the following as of February 28, 2021, February 29, 2020, and August 31, 2020:

($ in thousands)	February 28, 2021			February 29, 2020			August 31, 2020
Raw materials and supplies	$	62,404		$	50,240		$	51,205
Work in process		8,993			6,746			6,464
Finished goods and purchased parts, net		58,682			53,496			51,684
Total inventory value before LIFO adjustment		130,079			110,482			109,353
Less adjustment to LIFO value		(8,513	)		(5,028	)		(4,561	)
Inventories, net	$	121,566		$	105,454		$	104,792

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Long-Term Debt

6 Months Ended

Feb. 28, 2021

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)	February 28, 2021			February 29, 2020			August 31, 2020
Series A Senior Notes	$	115,000		$	115,000		$	115,000
Revolving Credit Facility		—			—			—
Elecsys Series 2006A Bonds		1,256			1,467			1,344
Total debt		116,256			116,467			116,344
Less current portion		(215	)		(211	)		(195	)
Less unamortized debt issuance costs		(442	)		(491	)		(467	)
Total long-term debt	$	115,599		$	115,765		$	115,682

Principal payments on the debt are due as follows:

Due within	$ in thousands
1 year	$	215
2 years		219
3 years		224
4 years		228
5 years		232
Thereafter		115,138
	$	116,256

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Fair Value Measurements

6 Months Ended

Feb. 28, 2021

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 February 28, 2021, February 29, 2020, and August 31, 2020. There were no transfers between any levels for the periods presented.

	February 28, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	110,775	$	—	$	—		$	110,775
Marketable securities:
Corporate bonds		—		15,501		—			15,501
U.S. treasury securities		—		4,054		—			4,054
Earn-out liability		—		—		(1,098	)		(1,098	)
	February 29, 2020
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	101,272	$	—	$	—		$	101,272
Marketable securities:
Corporate bonds		—		14,555		—			14,555
U.S. treasury securities		—		4,185		—			4,185
Derivative assets		—		247		—			247
	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 February 28, 2021, approximately 65% of the Company’s marketable securities investments mature within one year and 35% 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 six months ended February 28, 2021 or February 29, 2020.

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Commitments and Contingencies

6 Months Ended

Feb. 28, 2021

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® end terminal.  Despite the September 2018 reversal of a sizable judgment against a competitor, the Company expects that the significant attention brought to the infrastructure products industry by the original judgment may lead to additional lawsuits being filed against the Company and others in the industry. 

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 calendar 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 February 28, 2021, February 29, 2020, and August 31, 2020:

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Other current liabilities	$	1,105	$	1,243	$	1,115
Other noncurrent liabilities		15,017		14,396		15,030
Total environmental remediation liabilities	$	16,122	$	15,639	$	16,145

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Warranties

6 Months Ended

Feb. 28, 2021

Product Warranties Disclosures [Abstract]

Warranties

Note 9 – Warranties

The following table provides the changes in the Company’s product warranties:

	Three months ended						Six months ended
($ in thousands)	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Product warranty accrual balance, beginning of period	$	10,858		$	8,788		$	10,765		$	8,960
Liabilities accrued for warranties during the period		2,247			2,135			3,981			3,616
Warranty claims paid during the period		(1,378	)		(1,933	)		(3,019	)		(3,586	)
Changes in estimates		59			—			59			—
Product warranty accrual balance, end of period	$	11,786		$	8,990		$	11,786		$	8,990

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Share-Based Compensation

6 Months Ended

Feb. 28, 2021

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 $2.5 million and $1.5 million for the three months ended February 28, 2021 and February 29, 2020, respectively, and $4.2 million and $2.7 million for the six months ended February 28, 2021 and February 29, 2020, respectively.

During the second quarter of fiscal 2021, the Company’s former chief executive officer retired and entered into a one-year consulting agreement to provide transition services. The agreement provided for the modification of all outstanding and unvested share-based payment awards held by the former chief executive officer to continue vesting according to their respective original vesting schedules for the duration of the consulting services. For the three months ended February 28, 2021, the Company recorded $1.5 million of incremental share-based compensation expense related to this modification.

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Other Current Liabilities

6 Months Ended

Feb. 28, 2021

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Note 11 – Other Current Liabilities

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Other current liabilities:
Contract liabilities	$	19,982	$	12,323	$	17,296
Compensation and benefits		16,717		13,398		20,945
Warranties		11,786		8,990		10,765
Operating lease liabilities		3,965		4,790		5,123
Dealer related liabilities		3,873		3,681		3,664
Deferred revenue - lease		3,301		2,190		1,822
Tax related liabilities		2,033		1,709		3,726
Accrued insurance		1,320		1,624		1,348
Accrued environmental liabilities		1,105		1,243		1,115
Other		10,605		4,355		6,842
Total other current liabilities	$	74,687	$	54,303	$	72,646

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Share Repurchases

6 Months Ended

Feb. 28, 2021

Equity [Abstract]

Share Repurchases

Note 12 – Share Repurchases

There were no shares repurchased during the three and six months ended February 28, 2021 and February 29, 2020 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of February 28, 2021.

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Industry Segment Information

6 Months Ended

Feb. 28, 2021

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 revenues, 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 or six months ended February 28, 2021 or February 29, 2020.

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, or “internet of things”, 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’s operating results to conform with the current year’s 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						Six months ended
($ in thousands)	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Operating revenues:
Irrigation:
North America	$	80,178		$	67,088		$	132,968		$	120,675
International		38,394			26,406			72,961			56,145
Irrigation total		118,572			93,494			205,929			176,820
Infrastructure		25,005			20,294			46,133			46,361
Total operating revenues	$	143,577		$	113,788		$	252,062		$	223,181
Operating income:
Irrigation	$	18,045		$	10,084		$	28,678		$	19,867
Infrastructure		6,341			5,888			10,597			14,630
Corporate		(8,577	)		(7,330	)		(15,932	)		(13,579	)
Total operating income		15,809			8,642			23,343			20,918
Interest and other expense, net		(1,248	)		(1,775	)		(1,900	)		(2,796	)
Earnings before income taxes	$	14,561		$	6,867		$	21,443		$	18,122

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Total assets:
Irrigation	$	363,542	$	318,689	$	307,537
Infrastructure		87,542		82,608		113,111
Corporate		145,564		133,033		149,878
	$	596,648	$	534,330	$	570,526

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Basis of Presentation (Policies)

6 Months Ended

Feb. 28, 2021

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. The standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill; rather, an entity will measure its goodwill impairment by the amount the carrying value exceeds the fair value of a reporting unit. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

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Revenue Recognition (Tables)

6 Months Ended

Feb. 28, 2021

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 and six months ended February 28, 2021 and February 29, 2020 is as follows:

	Three months ended						Three months ended
	February 28, 2021						February 29, 2020
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	110,814	$	20,819	$	131,633	$	73,844	$	17,334	$	91,178
Over time		7,758		1,535		9,293		19,650		1,426		21,076
Revenue from the contracts with customers		118,572		22,354		140,926		93,494		18,760		112,254
Lease revenue		—		2,651		2,651		—		1,534		1,534
Total operating revenues	$	118,572	$	25,005	$	143,577	$	93,494	$	20,294	$	113,788
	Six months ended						Six months ended
	February 28, 2021						February 29, 2020
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	190,926	$	36,269	$	227,195	$	147,661	$	38,498	$	186,159
Over time		15,003		3,174		18,177		29,159		3,550		32,709
Revenue from the contracts with customers		205,929		39,443		245,372		176,820		42,048		218,868
Lease revenue		—		6,690		6,690		—		4,313		4,313
Total operating revenues	$	205,929	$	46,133	$	252,062	$	176,820	$	46,361	$	223,181

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Net Earnings Per Share (Tables)

6 Months Ended

Feb. 28, 2021

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 and six months ended February 28, 2021 and February 29, 2020:

	Three months ended				Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Numerator:
Net earnings	$	11,876	$	5,516	$	18,971	$	13,861
Denominator:
Weighted average shares outstanding		10,884		10,825		10,865		10,810
Diluted effect of stock awards		97		32		69		33
Weighted average shares outstanding assuming    dilution		10,981		10,857		10,934		10,843
Basic net earnings per share	$	1.09	$	0.51	$	1.75	$	1.28
Diluted net earnings per share	$	1.08	$	0.51	$	1.74	$	1.28

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				Six months ended
(Units and options in thousands)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Restricted stock units		—		4		—		11
Stock options		5		12		42		6
Performance stock units		3		—		6		10

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Inventories (Tables)

6 Months Ended

Feb. 28, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following as of February 28, 2021, February 29, 2020, and August 31, 2020:

($ in thousands)	February 28, 2021			February 29, 2020			August 31, 2020
Raw materials and supplies	$	62,404		$	50,240		$	51,205
Work in process		8,993			6,746			6,464
Finished goods and purchased parts, net		58,682			53,496			51,684
Total inventory value before LIFO adjustment		130,079			110,482			109,353
Less adjustment to LIFO value		(8,513	)		(5,028	)		(4,561	)
Inventories, net	$	121,566		$	105,454		$	104,792

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Long-Term Debt (Tables)

6 Months Ended

Feb. 28, 2021

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)	February 28, 2021			February 29, 2020			August 31, 2020
Series A Senior Notes	$	115,000		$	115,000		$	115,000
Revolving Credit Facility		—			—			—
Elecsys Series 2006A Bonds		1,256			1,467			1,344
Total debt		116,256			116,467			116,344
Less current portion		(215	)		(211	)		(195	)
Less unamortized debt issuance costs		(442	)		(491	)		(467	)
Total long-term debt	$	115,599		$	115,765		$	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	$	215
2 years		219
3 years		224
4 years		228
5 years		232
Thereafter		115,138
	$	116,256

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Fair Value Measurements (Tables)

6 Months Ended

Feb. 28, 2021

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 February 28, 2021, February 29, 2020, and August 31, 2020. There were no transfers between any levels for the periods presented.

	February 28, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	110,775	$	—	$	—		$	110,775
Marketable securities:
Corporate bonds		—		15,501		—			15,501
U.S. treasury securities		—		4,054		—			4,054
Earn-out liability		—		—		(1,098	)		(1,098	)
	February 29, 2020
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	101,272	$	—	$	—		$	101,272
Marketable securities:
Corporate bonds		—		14,555		—			14,555
U.S. treasury securities		—		4,185		—			4,185
Derivative assets		—		247		—			247
	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	)

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Commitments and Contingencies (Tables)

6 Months Ended

Feb. 28, 2021

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 February 28, 2021, February 29, 2020, and August 31, 2020:

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Other current liabilities	$	1,105	$	1,243	$	1,115
Other noncurrent liabilities		15,017		14,396		15,030
Total environmental remediation liabilities	$	16,122	$	15,639	$	16,145

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Warranties (Tables)

6 Months Ended

Feb. 28, 2021

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Liability

The following table provides the changes in the Company’s product warranties:

	Three months ended						Six months ended
($ in thousands)	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Product warranty accrual balance, beginning of period	$	10,858		$	8,788		$	10,765		$	8,960
Liabilities accrued for warranties during the period		2,247			2,135			3,981			3,616
Warranty claims paid during the period		(1,378	)		(1,933	)		(3,019	)		(3,586	)
Changes in estimates		59			—			59			—
Product warranty accrual balance, end of period	$	11,786		$	8,990		$	11,786		$	8,990

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Other Current Liabilities (Tables)

6 Months Ended

Feb. 28, 2021

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities Current

Other Current Liabilities

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Other current liabilities:
Contract liabilities	$	19,982	$	12,323	$	17,296
Compensation and benefits		16,717		13,398		20,945
Warranties		11,786		8,990		10,765
Operating lease liabilities		3,965		4,790		5,123
Dealer related liabilities		3,873		3,681		3,664
Deferred revenue - lease		3,301		2,190		1,822
Tax related liabilities		2,033		1,709		3,726
Accrued insurance		1,320		1,624		1,348
Accrued environmental liabilities		1,105		1,243		1,115
Other		10,605		4,355		6,842
Total other current liabilities	$	74,687	$	54,303	$	72,646

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Industry Segment Information (Tables)

6 Months Ended

Feb. 28, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Three months ended						Six months ended
($ in thousands)	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Operating revenues:
Irrigation:
North America	$	80,178		$	67,088		$	132,968		$	120,675
International		38,394			26,406			72,961			56,145
Irrigation total		118,572			93,494			205,929			176,820
Infrastructure		25,005			20,294			46,133			46,361
Total operating revenues	$	143,577		$	113,788		$	252,062		$	223,181
Operating income:
Irrigation	$	18,045		$	10,084		$	28,678		$	19,867
Infrastructure		6,341			5,888			10,597			14,630
Corporate		(8,577	)		(7,330	)		(15,932	)		(13,579	)
Total operating income		15,809			8,642			23,343			20,918
Interest and other expense, net		(1,248	)		(1,775	)		(1,900	)		(2,796	)
Earnings before income taxes	$	14,561		$	6,867		$	21,443		$	18,122

($ in thousands)	February 28, 2021		February 29, 2020		August 31, 2020
Total assets:
Irrigation	$	363,542	$	318,689	$	307,537
Infrastructure		87,542		82,608		113,111
Corporate		145,564		133,033		149,878
	$	596,648	$	534,330	$	570,526

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Revenue Recognition (Schedule of Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	$ 140,926	$ 112,254	$ 245,372	$ 218,868
Lease revenue	2,651	1,534	6,690	4,313
Total operating revenues	143,577	113,788	252,062	223,181
Irrigation [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	118,572	93,494	205,929	176,820
Lease revenue	0	0	0	0
Total operating revenues	118,572	93,494	205,929	176,820
Infrastructure [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	22,354	18,760	39,443	42,048
Lease revenue	2,651	1,534	6,690	4,313
Total operating revenues	25,005	20,294	46,133	46,361
Point in Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	131,633	91,178	227,195	186,159
Point in Time [Member] | Irrigation [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	110,814	73,844	190,926	147,661
Point in Time [Member] | Infrastructure [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	20,819	17,334	36,269	38,498
Over Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	9,293	21,076	18,177	32,709
Over Time [Member] | Irrigation [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	7,758	19,650	15,003	29,159
Over Time [Member] | Infrastructure [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	$ 1,535	$ 1,426	$ 3,174	$ 3,550

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Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Aug. 31, 2020
Disaggregation Of Revenue [Line Items]
Unsatisfied performance obligation amount	$ 6.8
Revenue recognized	15.4	$ 12.6
Other Current Assets [Member]
Disaggregation Of Revenue [Line Items]
Contract assets	1.2	0.9	$ 0.9
Other Current Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Contract liabilities	$ 21.3	$ 13.4	$ 19.6

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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		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Earnings Per Share [Abstract]
Net earnings	$ 11,876	$ 5,516	$ 18,971	$ 13,861
Weighted average shares outstanding	10,884	10,825	10,865	10,810
Diluted effect of stock awards	97	32	69	33
Weighted average shares outstanding assuming dilution	10,981	10,857	10,934	10,843
Basic net earnings per share	$ 1.09	$ 0.51	$ 1.75	$ 1.28
Diluted net earnings per share	$ 1.08	$ 0.51	$ 1.74	$ 1.28

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Net Earnings Per Share (Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
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	4	0	11
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	5	12	42	6
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	3	0	6	10

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Income Taxes (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Income Taxes [Line Items]
Income tax expense	$ 2,685,000	$ 1,351,000	$ 2,472,000	$ 4,261,000
Estimated annual effective income tax rate			23.70%	23.50%
Tax adjustment for unusual items			$ (2,600,000)	$ 0
Foreign Jurisdiction [Member]
Income Taxes [Line Items]
Valuation allowance	$ 1,700,000		$ 1,700,000

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Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 62,404	$ 51,205	$ 50,240
Work in process	8,993	6,464	6,746
Finished goods and purchased parts, net	58,682	51,684	53,496
Total inventory value before LIFO adjustment	130,079	109,353	110,482
Less adjustment to LIFO value	(8,513)	(4,561)	(5,028)
Inventories, net	$ 121,566	$ 104,792	$ 105,454

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Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Debt Instrument [Line Items]
Total debt	$ 116,256	$ 116,344	$ 116,467
Less current portion	(215)	(195)	(211)
Less unamortized debt issuance costs	(442)	(467)	(491)
Total long-term debt	115,599	115,682	115,765
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total debt	0	0	0
Elecsys Series 2006A Bonds [Member]
Debt Instrument [Line Items]
Total debt	1,256	1,344	1,467
Series A Senior Notes [Member]
Debt Instrument [Line Items]
Total debt	$ 115,000	$ 115,000	$ 115,000

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Long-Term Debt (Schedule of Principal Payments Due on Long-Term Debt) (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Debt Disclosure [Abstract]
1 year	$ 215
2 years	219
3 years	224
4 years	228
5 years	232
Thereafter	115,138
Total debt	$ 116,256	$ 116,344	$ 116,467

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Fair Value Measurements (Schedule of Financial Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 110,775	$ 121,403	$ 101,272
Marketable securities:
Derivative assets		21	247
Earn-out liability	(1,098)	(1,112)
Corporate Bonds [Member]
Marketable securities:
Marketable securities	15,501	14,426	14,555
U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	4,054	5,085	4,185
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	110,775	121,403	101,272
Marketable securities:
Derivative assets		0	0
Earn-out liability	0	0
Level 1 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	0	0	0
Level 1 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	0	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	247
Earn-out liability	0	0
Level 2 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	15,501	14,426	14,555
Level 2 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	4,054	5,085	4,185
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
Earn-out liability	(1,098)	(1,112)
Level 3 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	0	0	0
Level 3 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	$ 0	$ 0	$ 0

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Fair Value Measurements (Narrative) (Details) - USD ($)	3 Months Ended	6 Months Ended
	May 31, 2020	Feb. 28, 2021	Feb. 29, 2020
Percentage of marketable securities investments mature within one year		65.00%
Percentage of marketable securities investments mature within one to three years		35.00%
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

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Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Commitments And Contingencies [Line Items]
Liabilities	$ 277,624	$ 272,008	$ 257,003
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

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Commitments and Contingencies (Summary of Undiscounted Environmental Remediation Liability Classifications) (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Commitments And Contingencies Disclosure [Abstract]
Other current liabilities	$ 1,105	$ 1,115	$ 1,243
Other noncurrent liabilities	15,017	15,030	14,396
Total environmental remediation liabilities	$ 16,122	$ 16,145	$ 15,639

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Warranties (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Product Warranties Disclosures [Abstract]
Product warranty accrual balance, beginning of period	$ 10,858	$ 8,788	$ 10,765	$ 8,960
Liabilities accrued for warranties during the period	2,247	2,135	3,981	3,616
Warranty claims paid during the period	(1,378)	(1,933)	(3,019)	(3,586)
Changes in estimates	59	0	59	0
Product warranty accrual balance, end of period	$ 11,786	$ 8,990	$ 11,786	$ 8,990

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Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 2.5	$ 1.5	$ 4.2	$ 2.7
Incremental share-based compensation expense	$ 1.5
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Consulting agreement term	1 year

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Other Current Liabilities (Schedule of Other Liabilities Current) (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Other Liabilities Disclosure [Abstract]
Contract liabilities	$ 19,982	$ 17,296	$ 12,323
Compensation and benefits	16,717	20,945	13,398
Warranties	11,786	10,765	8,990
Operating lease liabilities	3,965	5,123	4,790
Dealer related liabilities	3,873	3,664	3,681
Deferred revenue - lease	3,301	1,822	2,190
Tax related liabilities	2,033	3,726	1,709
Accrued insurance	1,320	1,348	1,624
Accrued environmental liabilities	1,105	1,115	1,243
Other	10,605	6,842	4,355
Total other current liabilities	$ 74,687	$ 72,646	$ 54,303

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Share Repurchases (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Equity [Abstract]
Number of shares of common stock repurchased during the period	0	0	0	0
Remaining amount available under the repurchase program	$ 63.7		$ 63.7

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Industry Segment Information (Narrative) (Details)	3 Months Ended		6 Months Ended
	Feb. 28, 2021 customer	Feb. 29, 2020 customer	Feb. 28, 2021 Segment customer	Feb. 29, 2020 customer
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%	10.00%	10.00%
Number of major customers | customer	0	0	0	0

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Industry Segment Information (Schedule of Segment Reporting Information Impacts on Statement of Operations, by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Segment Reporting Information [Line Items]
Total operating revenues	$ 143,577	$ 113,788	$ 252,062	$ 223,181
Total operating income	15,809	8,642	23,343	20,918
Interest and other expense, net	(1,248)	(1,775)	(1,900)	(2,796)
Earnings before income taxes	14,561	6,867	21,443	18,122
Irrigation [Member]
Segment Reporting Information [Line Items]
Total operating revenues	118,572	93,494	205,929	176,820
Total operating income	18,045	10,084	28,678	19,867
Irrigation [Member] | North America [Member]
Segment Reporting Information [Line Items]
Total operating revenues	80,178	67,088	132,968	120,675
Irrigation [Member] | International [Member]
Segment Reporting Information [Line Items]
Total operating revenues	38,394	26,406	72,961	56,145
Infrastructure [Member]
Segment Reporting Information [Line Items]
Total operating revenues	25,005	20,294	46,133	46,361
Total operating income	6,341	5,888	10,597	14,630
Corporate Segment
Segment Reporting Information [Line Items]
Total operating income	$ (8,577)	$ (7,330)	$ (15,932)	$ (13,579)

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Industry Segment Information (Schedule of Segment Reporting Information Impacts on Balance Sheet, by Segment) (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Segment Reporting Information [Line Items]
Total assets	$ 596,648	$ 570,526	$ 534,330
Irrigation [Member]
Segment Reporting Information [Line Items]
Total assets	363,542	307,537	318,689
Infrastructure [Member]
Segment Reporting Information [Line Items]
Total assets	87,542	113,111	82,608
Corporate Segment
Segment Reporting Information [Line Items]
Total assets	$ 145,564	$ 149,878	$ 133,033