Lindsay Corporation · NYSE:LNN
Lindsay — Q2 2019 Earnings Presentation
18 slides from Lindsay's earnings presentation, Apr 9, 2019
Slide 1: 2nd Quarter Fiscal 2019 Earnings Slide Deck
2nd 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: Second Quarter Summary
Second Quarter Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures at end of presentation. Revenue Operating Income Diluted EPS Revenues decreased $21.2 million, or 16% Business divestitures account for $19.6 million of the total
Slide 4: Second Quarter and YTD Financial Summary
Second 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 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. Financial Summary Excluding divestitures, North America revenue decreased $1.6 million Irrigation equipment volume decreased, partially offset
Slide 6: Infrastructure Segment
Infrastructure Segment Financial Summary Total revenue decreased $5.1 million Road Zipper System® sales decreased $4.3 million Sales of road safety and other products decreased $0.8 million Operating income decreased $2.9 million Higher margin Road Zipper System® sales were lower than prior year Tra
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: Operating Margin Improvement by Workstream
Operating Margin Improvement by Workstream 2020 operating margin objective assumes no improvement in market conditions from 2017 Implemented projects with annualized run rate value of approximately $12 million to date 240-340 bps Approximately $13M-$18M 80 bps
Slide 10: Summary Balance Sheet
Zs Summary Balance Sheet Cash and cash equivalents Current assets Current liabilities Net working capital Long-term debt Shareholders’ equity $102.8 $317.2 $82.5 $234.7 $116.7 $271.8 $102.2 $313.4 $104.5 $208.9 $116.9 $273.1 2° Quarter Fiscal 2019 Earnings Call Presentation
Slide 11: Summary of Cash Flow
Zs Summary of Cash Flow Net eamings (loss) ($2.2) $4.9 Depreciation / amortization $6.9 $8.6 Changes in assets and liabilities: Receivables ($18.2) ($23.1) Inventories ($22.2) ($15.2) Other working capital ($5.1) $14.7 Other $1.1 $1.2 Net cash used in operations. ($39.7) ($8.9) Purchases of property
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 $3.30 per bushel Net Farm Income in 2019 projected to be $69.
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)
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 (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)