Lindsay Corporation · NYSE:LNN
Lindsay — Q1 2019 Earnings Presentation
16 slides from Lindsay's earnings presentation, Jan 8, 2019
Slide 1: 1st Quarter Fiscal 2019 Earnings Slide Deck
1st Quarter Fiscal 2019 Earnings Slide Deck 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: First Quarter Summary
First Quarter Summary Revenues decreased $12.5 million, or 10% Irrigation revenues decreased $14.0 million as a result of divestitures Infrastructure revenues increased 15% Operating income includes $4.0 million of Foundation for Growth costs Adjusted operating margin* improves from 5.0% to 5.4% Imp
Slide 4: First Quarter Financial Summary
First Quarter 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 5: Irrigation Segment
Irrigation Segment *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures at end of presentation. Revenue decreased $14.0 million as a result of divestitures Excluding divestitures, North America revenue increased 5% Higher selling prices a
Slide 6: Infrastructure Segment
Infrastructure Segment Increased Road Zipper System® sales New accounting rules allow for revenue recognition of a portion of Richmond San-Rafael project in the quarter Lower sales of road safety products Adjusted operating income* increased 30% Improved margin mix due to higher Road Zipper System s
Slide 7: Foundation for Growth Initiative – 2020 Objectives
Foundation for Growth Initiative – 2020 Objectives Financial Performance 11% to 12% operating margin Shareholder value creation External perception Fully leverage the global organization Viewed by customers as the innovation leader in core markets Culture and Health Highly engaged employees One comm
Slide 8: 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 9: Foundation for Growth Progress to Date
Foundation for Growth Progress to Date Portfolio assessment – completed divestitures Watertronics – pump systems Lakos – filtration systems SPF Engineering – engineering design firm Irrigation Specialists – Irrigation dealership Manufacturing footprint optimization Closed Omaha, NE infrastructure fa
Slide 10: Summary Balance Sheet
Zs Summary Balance Sheet Cash and cash equivalents $137.2 $109.5 Current assets $325.3 $296.2 Current liabilities $83.0 $90.1 Net working capital* $242.3 $206.1 Long-term debt $116.7 $116.9 Shareholders' equity $276.7 $269.2 1 Quarter Fiscal 2019 areas Earnings Call Presentation
Slide 11: Summary of Cash Flow
Zs Summary of Cash Flow YTD-FY19 | YTD-FY18 Net earnings $1.2 $3.2 Depreciation / amortization $3.4 $4.3 Changes in assets and liabilities: Receivables ($14.8) ($6.5) Inventories ($11.4) ($8.7) Other working capital $6.3 ($1.1) Other $1.0 $3.8 Net cash used in operations ($14.3) ($5.0) Purchases of
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 The 2018 Farm Bill was signed into law in December 2018. It continues many of the programs that were in the Agricultural Act of 2014, which expired in September 2018. USDA estimated average corn price at midpoint of $3.60 per bushel Net Farm Income projected to be $66.3 billio
Slide 14: Capital Allocation – A Balanced Approach
Capital Allocation – A Balanced Approach Allocation History (1) Includes marketable securities that were not included in the cash and cash equivalents balance on 8/31/07. (2) Other includes debt repayments, net cash sources/uses from note receivables, net investment hedges, stock compensation and re
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 consulting fees, severance costs and loss from
Slide 16: Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (Continued)