Lindsay Corporation · NYSE:LNN
Lindsay — Q4 2019 Earnings Presentation
20 slides from Lindsay's earnings presentation, Oct 29, 2019
Slide 1: 4th Quarter Fiscal 2019 Earnings Slide Deck
4th 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: Fourth Quarter Summary
Fourth Quarter Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of presentation. Revenue Operating Income Diluted EPS Revenues decreased $21.4 million Business divestitures account for $18.7 million of the decre
Slide 4: Fiscal 2019 Summary
Fiscal 2019 Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of presentation. Revenue Operating Income Diluted EPS Revenues decreased $103.6 million Business divestitures account for $78.1 million of the decreas
Slide 5: Fourth Quarter and Fiscal Year Financial Summary
Fourth Quarter and Fiscal Year Financial Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of presentation.
Slide 6: Irrigation Segment – Fourth Quarter Summary
Irrigation Segment – Fourth Quarter Summary Financial Summary Excluding impact of divestitures, North America revenue was relatively flat compared to prior year International revenue decreased $7.6 million Lower activity levels in several markets Unfavorable currency impact of approximately $1.0 mil
Slide 7: Infrastructure Segment – Fourth Quarter Summary
Infrastructure Segment – Fourth Quarter Summary Financial Summary Total revenue increased $5.3 million Commenced delivery of a large Road Zipper System® order in Japan Increase in Road Zipper System lease revenue Sales of road safety and other products down slightly Adjusted operating income* increa
Slide 8: 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 com
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: Operating Margin Improvement Targets by Workstream
Operating Margin Improvement Targets by Workstream 2020 operating margin objective assumes market conditions similar to 2017 240-340 bps Approximately $13M-$18M 80 bps
Slide 11: Foundation for Growth Accomplishments Through Fiscal 2019
Foundation for Growth Accomplishments Through Fiscal 2019 Divested four non-core businesses with operating margin below the Company average Closed an infrastructure facility and consolidated its operations into an existing irrigation facility Consolidated three office locations into a new global hea
Slide 12: Summary Balance Sheet
Zs Summary Balance Sheet August 31, 2019 | August 31, 2018 Cash and cash equivalents Current assets Current liabilities Net working capital Long-term debt Shareholders' equity ”ALINDSAY $127.2 $160.8 $313.5 $331.1 $82.1 $80.1 $231.4 $251.0 $116.1 $116.3 $268.2 $276.9 4% Quarter Fiscal 2019 Earnings
Slide 13: Summary of Cash Flow
Zs Summary of Cash Flow arter Fiscal 2019 Net earnings $2.2 $20.3 Depreciation / amortization $14.0 $16.5 Other non-cash adjustments $2.1 $8.2 Changes in assets and liabilities: Receivables ($8.0) ($3.7) Inventories ($16.2) ($8.2) Other working capital $9.7 $0.8 Net cash provided by operations $3.8
Slide 14: Attractive Long-Term Market Drivers
Attractive Long-Term Market Drivers Water Conservation Alternative Fuels Increase Yields Improve Road Safety Population Growth Advancing Technology
Slide 15: 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 in 2019 projected to be $88.
Slide 16: Capital Allocation – A Balanced Approach
Capital Allocation – A Balanced Approach Allocation History (1) Other includes debt repayments, net cash sources/uses from note receivables, net investment hedges, stock compensation and related tax benefits. Targeted cash balance of $60-75 million, including international accounts To support cyclic
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) consulting fees, severance costs and loss f
Slide 18: 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)
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) The non-GAAP tables below disclose (a) the impact on diluted earnings per share of (1) income tax expense attributed to enactment
Slide 20: 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)