Slide 1: Earnings Call Presentation 4th Quarter Fiscal 2018
Earnings Call Presentation 4th Quarter Fiscal 2018 ADVANCING INNOVATION TO SOLVE GLOBAL CHALLENGES EXHIBIT 99.2
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 Revenue decreased 7 percent Irrigation segment decreased 6% Infrastructure segment decreased 10% Adjusted diluted EPS* decreased 29% Incremental LIFO expense of $1.6 million Less favorable infrastructure revenue mix Lower effective income tax rate Foundation for Growth actions
Slide 4: Fiscal 2018 Summary
Fiscal 2018 Summary Revenue increased 6 percent Irrigation segment increased 5% Infrastructure segment increased 8% Adjusted diluted EPS* increased 35% Revenue growth in both segments Improved margin mix Increased NA irrigation revenue Increased Road Zipper revenue Lower effective tax rate *Please s
Slide 5: Fourth Quarter and YTD Financial Summary
Fourth Quarter and YTD Financial Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures at end of presentation.
Slide 6: Irrigation Segment – Fourth Quarter Summary
Irrigation Segment – Fourth Quarter Summary North America revenues increased 3% to $60.6 million Increase in irrigation system unit volume Impact of higher average selling prices offset by a change in product mix (shorter machines compared to prior year) International revenues decreased 18% to $35.6
Slide 7: Infrastructure Segment – Fourth Quarter Summary
Infrastructure Segment – Fourth Quarter Summary Revenue decreased 10% to $27.1 million Majority of decrease from lower Road Zipper system lease revenue Lower road safety product sales Road Zipper system sales comparable to prior year Adjusted operating income* decreased 40% to $4.5 million Less favo
Slide 8: Foundation for Growth Initiative – 2020 Objectives
Foundation for Growth Initiative – 2020 Objectives 11% to 12% operating margin Shareholder value creation Fully leverage the global organization Viewed by customers as the innovation leader in core markets Highly engaged employees One common culture and identity Financial performance External percep
Slide 9: Foundation for Growth Workstreams
Foundation for Growth Workstreams Strategic choices 6 Culture change & operating model 5 Culture assessment, aligning behaviors to strategy, improving global work processes Set strategic direction, portfolio assessment Commercial 1 Manufacturing 3 Sourcing 2 G&A Expense 4 Create value through channe
Slide 10: Summary Balance Sheet
Summary Balance Sheet *The net working capital amount at August 31, 2018 includes $10.8 million of net assets held-for-sale which were previously classified as noncurrent.
Slide 11: Summary of Cash Flows
Summary of Cash Flows YID-FY18 | YTD-FY17 Net earnings $20.3 $23.2 Depreciation / amortization $16.5 $16.7 Changes in assets and liabilities Receivables ($3.7) $8.0 Inventories ($8.2) ($10.1) Loss on sale of businesses $4.1 7 Other working capital $0.8 ($1.0) Other $4.2 $2.7 Net cash provided by ope
Slide 12: Attractive Long-Term Market Drivers
Attractive Long-Term Market Drivers Water Conservation Alternative Fuels Increase Yields Improve Road Safety Population Growth Advancing Technology
Slide 13: Current Market Factors
Current Market Factors USDA estimated average corn price at midpoint of $3.50 per bushel Carryover stocks are projected to decline Net Farm Income projected to be $65.7 billion a 13% decrease from 2017 EPA 2018 ethanol production target levels consistent with 2017 Increased tax incentives provide ad
Slide 14: Capital Allocation – A Balanced Approach
Capital Allocation – A Balanced Approach Targeted cash balance of $60-75 million, including international accounts To support cyclical and seasonal fluctuations in working capital and projected capital expenditures $115 million in Senior Notes maturing on 2/19/30 at annual interest rate of 3.82% The
Slide 15: 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) income tax expense attributed to enactment
Slide 16: Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures
Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures
Slide 17: Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures
Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures