Lindsay Corporation · NYSE:LNN
Lindsay — Q3 2020 Earnings Presentation
18 slides from Lindsay's earnings presentation, Jul 2, 2020
Slide 1: 3rd Quarter Fiscal 2020 Earnings Slide Deck
3rd Quarter Fiscal 2020 Earnings Slide Deck
Slide 2: Safe-Harbor Statement
Safe-Harbor Statement This presentation contains forward-looking statements that are subject to risks and uncertainties and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, financial results and planned financing. Yo
Slide 3: Third Quarter Summary
Third Quarter Summary Amounts in millions, except per share amounts Revenue Operating Income Diluted EPS $121.1 $123.1 GAAP Adjusted* GAAP Adjusted* $15.8 $15.8 $0.93 $0.93 12.9% 12.9% $8.4 $0.50 6.9% $4.5 $0.27 3.7% FY19 FY20 FY19 FY20 FY19 FY20 • Revenues increased $2.1 million compared to prior y
Slide 4: Third Quarter and YTD Financial Summary
Third Quarter and YTD Financial Summary ($ in millions, except per share amounts) Q3 - FY20 Q3 - FY19 Change YTD FY20 YTD FY19 Change Revenue North America irrigation $ 60.9 $ 63.0 -3% $ 179.2 $ 177.1 1% International irrigation $ 32.6 $ 35.6 -9% $ 88.8 $ 104.9 -15% Irrigation $ 93.5 $ 98.6 -5% $ 26
Slide 5: Current Market Factors
Current Market Factors Irrigation Infrastructure • Effect of global COVID-19 pandemic has led to • Our “shift left” strategy is gaining traction and significant decreases in commodity prices. contributing to an increase in Road Zipper System® lease revenue. • 2020 Net Farm Income is projected by the
Slide 6: Irrigation Segment
Irrigation Segment Amounts in millions Revenue $63.0 $60.9 • North America revenue decreased $2.1 million • Lower irrigation equipment unit volume • Higher average selling prices $35.6 $32.6 • International revenue decreased $3.0 million • Unfavorable currency impact of $3.5 million • Shipment delay
Slide 7: Infrastructure Segment
Infrastructure Segment Amounts in millions Revenue $29.6 $22.4 • Total revenue increased $7.1 million • Increase in Road Zipper System® sales • Highways England project • Japan barrier order • Increase in Road Zipper System lease revenue • Sales of road safety products in Europe were lower than prio
Slide 8: Update on the COVID-19 Situation
Update on the COVID-19 Situation Lindsay’s products and technologies support the following critical infrastructure sectors as defined by the Department of Homeland Security (CISA.gov) and other global government agencies: • Food and Agriculture – our irrigation business supports the production of fo
Slide 9: COVID-19 Protocols in Place
COVID-19 Protocols in Place Protecting the health and well-being of our employees is a top priority, as is maintaining frequent communication and providing important updates. Beginning in early March, we have: • Created a global task force and communication strategy • Implemented social distancing p
Slide 10: Executing Long-Term Value Creation
Executing Long-Term Value Creation • Deepening customer relationships through technology differentiation • Solutions and growth aligned to market megatrends…. designed to sustain and protect our evolving world • Foundation for Growth initiative driving margin expansion ONE LINDSAY • Empowered global
Slide 11: Foundation for Growth Initiative
Foundation for Growth Initiative Objectives • Raise operating margin floor • Innovation leader in core markets • Renewed culture and identity 1 2 3 4 Commercial Global Manufacturing Lower G&A Excellence Sourcing Optimization Expenses 5 Cultural Changes 6 Strategic Choices Margin improvement Cost Str
Slide 12: Foundation for Growth Execution
Foundation for Growth Execution Accomplishments through Q3 Fiscal 2020 • Divested four non-core businesses, acquired Net Irrigate, LLC • Closed and sold an infrastructure facility; consolidated activity into an existing irrigation facility • Established a centralized shared services organization
Slide 13: Summary Balance Sheet
Summary Balance Sheet ($ in millions) May 31, 2020 May 31, 2019 August 31, 2019 Cash, cash equivalents and marketable securities $121.5 $110.8 $127.2 Current assets $339.2 $317.2 $313.5 Current liabilities $107.2 $86.8 $82.1 Net working capital $232.0 $230.3 $231.4 Long-term debt $115.7 $116.1 $116.
Slide 14: Summary of Cash Flow
Summary of Cash Flow ($ in millions) YTD FY20 YTD FY19 Net earnings $24.0 $0.7 Depreciation / amortization $14.1 $10.5 Other non-cash adjustments $8.6 $0.2 Changes in assets and liabilities: Receivables ($11.4) ($26.4) Inventories ($23.8) ($14.5) Other $4.4 $9.9 Net cash provided by (used in) operat
Slide 15: Capital Allocation – A Balanced Approach
Capital Allocation – A Balanced Approach Allocation Plan Allocation History • Targeted cash balance of $60-75 $700,000 million, including international $ in thousands = Source of Cash = Use of Cash accounts $600,000 $114.4 $16.3 • To support cyclical and seasonal $121.9 66% of cash from operations r
Slide 16: Attractive Long-Term Megatrends
Attractive Long-Term Megatrends Water Conservation Advancing Technology Improve Road Safety Population Growth Alternative Fuels Increase Yields 16
Slide 17: Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures
Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) The non-GAAP tables below disclose (a) the impact on diluted earnings per share of consulting fees, severance costs and loss from
Slide 18: Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures
Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (Continued) For the three months ended May 31, 2019 Operating income reconciliation Consolidated Irrigation Infrastructure Corpora