Lindsay Corporation · NYSE:LNN
Lindsay — Q3 FY2019 Earnings Presentation
18 slides from Lindsay's earnings presentation, Jul 9, 2019
Slide 1: 3rd Quarter Fiscal 2019 Earnings Call Presentation
Exhibit 99.2 3rd Quarter Fiscal 2019 Earnings Slide Deck rd 3 Quarter Fiscal 2019 Earnings Call PresentationExhibit 99.2 3rd Quarter Fiscal 2019 Earnings Slide Deck rd 3 Quarter Fiscal 2019 Earnings Call Presentation
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 Adjusted* Adjusted* GAAP GAAP $26.4 $169.6 $1.66 $121.1 $18.8 $0.96 15.6% $8.4 11.1% $0.50 $4.5 6.9% $0.27 3.7% FY18 FY19 FY18 FY19 FY18 FY19 • Revenues decreased $48.5 million • Business divesti
Slide 4: Third Quarter and YTD Financial Summary
Third Quarter and YTD Financial Summary ($ in millions, except per share amounts) Q3 - FY19 Q3 - FY18 Change YTD - FY19 YTD - FY18 Change Revenue North America irrigation $ 63.0 $ 87.4 -28% $ 177. 1 $ 234. 0 -24% International irrigation $ 35.6 $ 41.0 -13% $ 104. 9 $ 109. 6 -4% Irrigation $ 98.6 $ 1
Slide 5: Irrigation Segment
Irrigation Segment in millions Revenue Financial Summary $87.4 • Excluding divestitures, North America revenue increased $2.8 million $63.0 • Higher revenue from engineering project services • Higher average selling prices $41.0 • Lower irrigation equipment unit volume $35.6 • Lower sales of replace
Slide 6: Infrastructure Segment
Infrastructure Segment in millions Revenue Financial Summary $41.2 • Total revenue decreased $18.7 million ® • Prior year quarter included two large Road Zipper System orders $22.4 • Sales of road safety and other products were flat • Adjusted operating income* decreased $10.8 million • High-margin
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 employee
Slide 8: Foundation for Growth Workstreams
Foundation for Growth Workstreams Commercial Sourcing Manufacturing G&A Expense 1 2 3 4 Productivity improvement Integrate and leverage Create value through Center-led global opportunities, network share services activities channel optimization strategic sourcing optimization Culture change & Cultur
Slide 9: Operating Margin Improvement by Workstream
Operating Margin Improvement by Workstream 11-12% 7.8% 80 bps 240-340 bps Approximately $13M-$18M 2017 Divestitures Commercial Sourcing Manufacturing G&A 2020 • 2020 operating margin objective assumes market conditions similar to 2017 rd 3 Quarter Fiscal 2019 Earnings Call Presentation 9Operating Ma
Slide 10: Summary Balance Sheet
Summary Balance Sheet ($ in millions) May 31, 2019 May 31, 2018 Cash and cash equivalents $110. 8 $111. 8 Current assets $317. 2 $350. 4 Current liabilities $86.8 $98.7 Net working capital $230. 3 $251. 7 Long-term debt $116. 1 $116. 4 Shareholders' equity $270. 4 $277. 5 rd 3 Quarter Fiscal 2019 Ea
Slide 11: Summary of Cash Flow
Summary of Cash Flow ($ in millions) YTD-FY19 YTD-FY18 Net earnings $0. 7 $15.3 Depreciation / amortization $10.5 $12.9 Changes in assets and liabilities: Receivables ($26.4) ($29.8) Inventories ($14.5) ( $8.2) Other working capital $9. 9 $11.8 Other $0. 2 $6. 3 Net cash (used in) provided by operat
Slide 12: Attractive Long-Term Market Drivers
Attractive Long-Term Market Drivers Water Conservation Advancing Technology Improve Road Safety Population Growth Alternative Fuels Increase Yields rd 3 Quarter Fiscal 2019 Earnings Call Presentation 12Attractive Long-Term Market Drivers Water Conservation Advancing Technology Improve Road Safety Po
Slide 13: Current Market Factors
Current Market Factors Irrigation Infrastructure • The 2018 Farm Bill was signed into law in • Five-year $305 billion U.S. highway bill enacted in December 2018. It continues many of the December 2015 provides stability but does not programs that were in the Agricultural Act of 2014, increase fundin
Slide 14: Capital Allocation – A Balanced Approach
Capital Allocation – A Balanced Approach Allocation Plan Allocation History § Targeted cash balance of $60-75 $800,000 = Source of Cash $ in thousands million, including international = Use of Cash $700,000 accounts $25,452 $129,380 § To support cyclical and seasonal $123,128 $600,000 54% of cash fr
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
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
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 (1) tax expense attributed to enactment of the
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, 2018 Operating income reconciliation Consolidated Irrigation Infrastructure Corpora