Lindsay Corporation · NYSE:LNN
Lindsay — Q4 2020 Earnings Presentation
19 slides from Lindsay's earnings presentation, Oct 22, 2020
Slide 1: 4th Quarter Fiscal 2020 Earnings Slide Deck
4th 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: Fourth Quarter Summary
Fourth Quarter Summary Amounts in millions, except per share amounts Revenue Operating Income Diluted EPS GAAP Adjusted* GAAP Adjusted* $128.4 $17.5 $17.5 $1.35 $1.35 $101.9 13.6% 13.6% $8.8 8.6% $0.54 $4.1 4.0% $0.14 FY19 FY20 FY19 FY20 FY19 FY20 • Revenues increased $26.5 million compared to prior
Slide 4: Fiscal 2020 Summary
Fiscal 2020 Summary Amounts in millions, except per share amounts Revenue Operating Income Diluted EPS GAAP Adjusted* GAAP Adjusted* $474.7 $54.2 $54.2 $3.56 $3.56 $444.1 11.4% 11.4% $24.0 $1.45 $6.1 5.4% 1.4% $0.20 FY19 FY20 FY19 FY20 FY19 FY20 • Revenues increased $30.6 million compared to prior y
Slide 5: Fourth Quarter and FY20 Financial Summary
Fourth Quarter and FY20 Financial Summary ($ in millions, except per share amounts) Q4 - FY20 Q4 - FY19 Change FY20 FY19 Change Revenue North America irrigation $ 39.8 $ 41.5 -4% $ 219.0 $ 218.6 0% International irrigation $ 35.8 $ 28.0 28% $ 124.6 $ 132.9 -6% Irrigation $ 75.6 $ 69.5 9% $ 343.5 $ 3
Slide 6: Current Market Factors
Current Market Factors Irrigation Infrastructure • Global commodity prices declined significantly earlier • The five-year $305 billion U.S. highway bill enacted in the year as a result of the COVID-19 pandemic in December 2015 (the “FAST Act”) was set to but have recently recovered as the demand exp
Slide 7: Irrigation Segment – Fourth Quarter Summary
Irrigation Segment – Fourth Quarter Summary Amounts in millions Revenue $41.5 $39.8 $35.8 • North America revenue decreased $1.7 million $28.0 • Engineering services project in prior year did not repeat • Increase in irrigation equipment unit volume • Higher sales of replacement parts • Lower averag
Slide 8: Infrastructure Segment – Fourth Quarter Summary
Infrastructure Segment – Fourth Quarter Summary Amounts in millions Revenue $52.8 • Total revenue increased $20.4 million • Increase in Road Zipper System® sales $32.4 • Highways England project • Japan barrier order • Road safety products revenue comparable to prior year • Impact of COVID-19-relate
Slide 9: COVID-19 Update
COVID-19 Update Lindsay’s products and technologies support the following critical infrastructure sectors as defined by the Department of Homeland Security (CISA.gov) and other global government agencies: • Food and Agriculture – our irrigation business supports the production of food and the conser
Slide 10: COVID-19 Protocols in Place
COVID-19 Protocols in Place Protecting the health and well-being of our employees is a top priority, as is maintaining frequent communication and providing important updates. Since the outset of the pandemic, we have: • Created a global task force and communication strategy • Implemented social dist
Slide 11: Executing Long-Term Value Creation
Executing Long-Term Value Creation • Deepening customer relationships through technology differentiation • Solutions and growth aligned to market megatrends…. designed to sustain and protect our evolving world • Foundation for Growth initiative driving margin expansion ONE LINDSAY • Empowered global
Slide 12: Foundation for Growth Initiative
Foundation for Growth Initiative Objectives • Raise operating margin floor • Innovation leader in core markets • Renewed culture and identity 1 2 3 4 Commercial Global Manufacturing Lower G&A Excellence Sourcing Optimization Expenses 5 Cultural Changes 6 Strategic Choices Margin improvement Cost Str
Slide 13: Foundation for Growth Execution
Foundation for Growth Execution Accomplishments through Fiscal 2020 • Divested four non-core businesses; acquired Net Irrigate, LLC • Closed and sold an infrastructure facility; consolidated activity into an existing irrigation facility • Established a centralized sourcing & shared services orga
Slide 14: Summary Balance Sheet
Summary Balance Sheet ($ in millions) August 31, 2020 August 31, 2019 Cash, cash equivalents and marketable securities $140.9 $127.2 Current assets $347.9 $313.5 Current liabilities $102.4 $82.1 Net working capital $245.5 $231.4 Long-term debt $115.7 $115.8 Shareholders' equity $298.5 $268.2 14
Slide 15: Summary of Cash Flow
Summary of Cash Flow ($ in millions) FY20 FY19 Net earnings $38.6 $2.2 Depreciation / amortization $19.4 $14.0 Other non-cash adjustments $9.0 $2.1 Changes in assets and liabilities: Receivables ($9.5) ($8.0) Inventories ($14.0) ($16.2) Other $2.5 $9.7 Net cash provided by operations $46.0 $3.8 Purc
Slide 16: Capital Allocation – Last 10 Years
Capital Allocation – Last 10 Years Allocation Plan Allocation History • Targeted cash balance of $60-75 million, including international $700,000 $ in thousands = Source of Cash accounts $3.8 = Use of Cash $600,000 • To support cyclical and seasonal $114.4 $134.2 65% of cash from operations fluctuat
Slide 17: Attractive Long-Term Megatrends
Attractive Long-Term Megatrends Water Conservation Advancing Technology Improve Road Safety Population Growth Alternative Fuels Increase Yields 17
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) The non-GAAP tables below disclose (a) the impact on diluted earnings per share of (1) consulting fees, severance costs and loss f
Slide 19: 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) Three months ended August 31, 2019 Operating income reconciliation Consolidated Irrigation Infrastructure Corporate Op