Slide 1: 2nd Quarter Fiscal 2020 Earnings Slide Deck
2nd Quarter Fiscal 2020 Earnings Slide Deck
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 Amounts in millions, except per share amounts Revenue Operating Income Diluted EPS $113.8 GAAP Adjusted* GAAP Adjusted* $109.2 $8.6 $8.6 $0.51 $0.51 7.6% 7.6% $0.8 0.8% $0.02 FY19 FY20 -4.1% FY19 FY20 FY19 FY20 $(4.5) $(0.32) • Revenues increased $4.6 million compared to prior
Slide 4: Second Quarter Financial Summary
Second Quarter Financial Summary ($ in millions, except per share amounts) Q2 - FY20 Q2 - FY19 Change YTD FY20 YTD FY19 Change Revenue North America irrigation $ 65.7 $ 57.7 14% $ 118.3 $ 114.1 4% International irrigation $ 26.4 $ 38.1 -31% $ 56.1 $ 69.2 -19% Irrigation $ 92.1 $ 95.8 -4% $ 174.4 $ 1
Slide 5: Current Market Factors
Current Market Factors Irrigation Infrastructure • Under the U.S.-China Phase 1 trade deal signed • States continue the transition to new federal MASH January 15, 2020, China pledged to increase testing standards for road safety products. Almost purchases of U.S. agricultural products by $32 billion
Slide 6: Irrigation Segment
Irrigation Segment Amounts in millions Revenue $65.7 $57.7 • North America revenue increased $8.0 million • Higher sales of replacement parts $38.1 • Increased irrigation equipment unit volume • Increased revenue from engineering project services $26.4 • Average selling prices were slightly higher t
Slide 7: Infrastructure Segment
Infrastructure Segment Amounts in millions Revenue $21.7 • Total revenue increased $8.3 million • Increase in Road Zipper System® sales primarily from delivery of $13.4 remaining Japan order • Increase in Road Zipper System lease revenue • Sales of road safety products increase with new MASH product
Slide 8: Highways England – Road Zipper Solution
Highways England – Road Zipper Solution • Quickchange Moveable Barriers and Barrier Transfer Machines • To be deployed in Kent, United Kingdom on the M20 London-bound motorway between junction 9 and 7 (approximately 24 km) • Road Zipper solution provides the following: • A long-term solution to hand
Slide 9: Perspectives on the COVID-19 Situation
Perspectives on the COVID-19 Situation Lindsay’s products and technologies support the following critical infrastructure sectors as defined by the Department of Homeland Security (CISA.gov) and other global government agencies: • Food and Agriculture – our irrigation business supports the production
Slide 10: COVID-19 Protocols in Place
COVID-19 Protocols in Place Protecting the health and well-being of our employees is a top priority, as is maintaining frequent communication and providing important updates. Beginning in early March, we have: • Created a global task force and communication strategy • Implemented social distancing p
Slide 11: Executing Long-Term Value Creation
Executing Long-Term Value Creation • Deepening customer relationships through technology differentiation • Solutions and growth aligned to market megatrends…. designed to sustain and protect our evolving world • Foundation for Growth initiative driving margin expansion ONE LINDSAY • Empowered global
Slide 12: Foundation for Growth Initiative
Foundation for Growth Initiative Objectives • Raise operating margin floor • Innovation leader in core markets • Renewed culture and identity 1 2 3 4 Commercial Global Manufacturing Lower G&A Excellence Sourcing Optimization Expenses 5 Cultural Changes 6 Strategic Choices Margin improvement Cost Str
Slide 13: Foundation for Growth Execution
Foundation for Growth Execution Accomplishments through Q2 Fiscal 2020 • Divested four non-core businesses • Closed and sold an infrastructure facility; consolidated activity into an existing irrigation facility • Established a centralized shared services organization • Made tangible progress
Slide 14: Summary Balance Sheet
Summary Balance Sheet ($ in millions) February 29, 2020 February 28, 2019 August 31, 2019 Cash, cash equivalents and marketable securities $120.0 $102.8 $127.2 Current assets $325.0 $317.2 $313.5 Current liabilities $87.8 $82.5 $82.1 Net working capital $237.2 $234.7 $231.4 Long-term debt $116.0 $11
Slide 15: Summary of Cash Flow
Summary of Cash Flow ($ in millions) YTD FY20 YTD FY19 Net earnings $13.9 ($2.2) Depreciation / amortization $9.4 $6.9 Other non-cash adjustments $2.8 $1.0 Changes in assets and liabilities: Receivables ($5.7) ($18.2) Inventories ($14.2) ($22.2) Other working capital ($8.4) ($5.1) Net cash provided
Slide 16: Capital Allocation – A Balanced Approach
Capital Allocation – A Balanced Approach Allocation Plan Allocation History • Targeted cash balance of $60-75 $700,000 million, including international $ in thousands = Source of Cash = Use of Cash accounts $600,000 $114.4 $16.3 • To support cyclical and seasonal $121.9 66% of cash from operations r
Slide 17: Attractive Long-Term Megatrends
Attractive Long-Term Megatrends Water Conservation Advancing Technology Improve Road Safety Population Growth Alternative Fuels Increase Yields 17
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) The non-GAAP tables below disclose (a) the impact on diluted earnings per share of consulting fees, severance costs and loss from
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) (Continued) For the three months ended February 28, 2019 Operating income reconciliation Consolidated Irrigation Infrastructure Co