UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 22, 2020 LINDSAY CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-13419 47-0554096 (State of Incorporation) (Commission File Number) (IRS Employer Identification Number) 18135 Burke Street, Suite 100 Omaha, Nebraska 68022 (Address of principal executive offices) (Zip Code) (402) 829-6800 (Registrant’s telephone number, including area code) Not applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $1.00 par value LNN New York Stock Exchange, Inc. Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):October 22, 2020
LINDSAY CORPORATION(Exact name of registrant as specified in its charter)
Delaware 1-13419 47-0554096
(State of Incorporation)
(CommissionFile Number)
(IRS EmployerIdentification Number)
18135 Burke Street, Suite 100
Omaha, Nebraska 68022(Address of principal executive offices) (Zip Code)
(402) 829-6800(Registrant’s telephone number, including area code)
Not applicable(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of thefollowing provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading
Symbol(s) Name of each exchange
on which registeredCommon Stock, $1.00 par value LNN New York Stock Exchange, Inc.
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of thischapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any newor revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 22, 2020, Lindsay Corporation (the "Company”) issued a press release announcing the Company’s results of operations for its fourthquarter and fiscal year ended August 31, 2020. A copy of the press release is furnished herewith as Exhibit 99.1.
In addition, a copy of the slide presentation to be used during the Company’s fiscal 2020 fourth quarter and year-end investor conference call at11:00 a.m. Eastern Time on October 22, 2020 is furnished herewith as Exhibit 99.2.
Item 9.01. Financial Statements and Exhibits.
99.1 Press Release, dated October 22, 2020, issued by the Company.
99.2 Slide Presentation for Fiscal 2020 Fourth Quarter and Year-End Investor Conference Call on October 22, 2020.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
In accordance with General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form 8-K, includingExhibits 99.1 and 99.2 relating to Item 2.02 and attached hereto, is being "furnished” and, as such, shall not be deemed to be "filed” for purposes ofSection 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall itbe deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly setforth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by theundersigned hereunto duly authorized. Dated: October 22, 2020 LINDSAY CORPORATION
By: /s/ Brian L. Ketcham Brian L. Ketcham, Senior Vice President and Chief Financial Officer
Exhibit 99.1
18135 BURKE ST. OMAHA, NE 68022 TEL: 402-829-6800 FAX: 402-829-6836
For further information, contact: LINDSAY CORPORATION: THREE PART ADVISORS:Brian Ketcham Hala ElsherbiniSenior Vice President & Chief Financial Officer 972-458-8000402-827-6579
Lindsay Corporation Reports Fiscal 2020 Fourth Quarter and Full Year Results • Irrigation and Infrastructure segments deliver fourth quarter revenue growth • Fourth quarter revenues grow to $128.4 million and EPS improves to $1.35 • Margin improvement objective achieved with full year operating margin of 11.4 percent
OMAHA, Neb., October 22, 2020—Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructureequipment and technology, today announced results for its fourth quarter and fiscal year, which ended on August 31, 2020.
Fourth Quarter and Full Year Summary
Revenues for the fourth quarter of fiscal 2020 were $128.4 million, an increase of $26.5 million, or 26 percent, compared to revenues of $101.9 millionin the prior year fourth quarter. Net earnings for the quarter were $14.7 million, or $1.35 per diluted share, compared with net earnings of $1.5 million, or$0.14 per diluted share, for the prior year fourth quarter. Net earnings for the prior year fourth quarter adjusted to eliminate costs associated with theFoundation for Growth initiative and a valuation adjustment for indirect tax credits were $5.8 million, or $0.54 per diluted share.1
Revenues for the year ended August 31, 2020, were $474.7 million, an increase of $30.6 million, or 7 percent, compared to revenues of $444.1 millionin the prior year. Net earnings for the year were $38.6 million, or $3.56 per diluted share, compared with net earnings of $2.2 million, or $0.20 per dilutedshare, in the prior year. Net earnings for the prior year adjusted to eliminate costs associated with the Foundation for Growth initiative and a valuationadjustment for indirect tax credits were $15.6 million, or $1.45 per diluted share.1
“We were pleased to see fourth quarter revenue growth in both our Irrigation and Infrastructure segments, highlighted by the successful executionof our large Road Zipper® project with Highways England in the U.K.,” said Tim Hassinger, President and Chief Executive Officer. “I am proud of theLindsay team for achieving our 2020 operating margin goal, especially given the additional market challenges presented by the coronavirus pandemic. Weachieved another key objective related to culture, measured through an organizational health assessment conducted by a major consulting firm.”
Fourth Quarter Segment Results
Irrigation segment revenues for the fourth quarter of fiscal 2020 were $75.6 million, an increase of $6.1 million, or 9 percent, compared to $69.5 millionin the prior year fourth quarter. North America irrigation revenues of $39.8 million decreased $1.8 million, or 4 percent, compared to the prior year. Thedecrease resulted primarily from lower engineering services revenue related to a project in the prior year that did not repeat. An increase in irrigationequipment unit volume and higher sales of replacement parts was offset by the impact of lower average selling prices. International irrigation revenues of$35.8 million increased $7.8 million, or 28 percent. The increase resulted primarily from higher sales volumes in Brazil, Australia and the Middle East whichwere partially offset by the unfavorable effects of foreign currency translation of approximately $3.4 million compared to the prior year.
Irrigation segment operating margin was 7.7 percent of sales in the fourth quarter, compared to 5.0 percent of sales (9.0 percent adjusted)1 in theprior year fourth quarter. Operating margin in the current year fourth quarter was negatively impacted by expense of approximately $1.6 million, related toan increase in the environmental remediation liability and severance costs. 1 Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of document.
Infrastructure segment revenues for the fourth quarter of fiscal 2020 were $52.8 million, an increase of $20.4 million, or 63 percent, compared to$32.4 million in the prior year. The increase resulted from higher Road Zipper System® sales compared to the prior year, including the large project withHighways England in the U.K.
Infrastructure segment operating margin was 38.0 percent of sales in the fourth quarter, compared to 28.8 percent of sales in the prior year fourthquarter. Operating margin improvement resulted primarily from increased sales in higher margin product lines and from improved cost and pricingperformance.
The backlog of unfilled orders at August 31, 2020 was $58.7 million compared with $55.4 million at August 31, 2019. Included in these backlogs areamounts of $6.3 million and $10.0 million, respectively, that are not expected to be fulfilled within the subsequent twelve months.
Outlook
“The recent increase in agricultural commodity prices along with additional government support payments to farmers under the expandedCoronavirus Food Assistance Program have raised estimates for U.S. farm income,” said Mr. Hassinger. “This supports an improved outlook for NorthAmerica irrigation equipment demand for the fall selling season. We expect growth in international irrigation led by continued momentum in Brazil andother markets as well as new agricultural development being driven by heightened food security concerns as a result of the global coronaviruspandemic.”
Mr. Hassinger added, “Our infrastructure business achieved a record year in fiscal 2020, in large part due to our success in implementing the “shiftleft” strategy to expand our addressable market for Road Zipper® systems. We continue to be encouraged by the execution of this strategy, which hasresulted in a higher quality sales funnel.”
Fourth Quarter Conference Call
Lindsay’s fiscal 2020 fourth quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate inthe call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 internationally, and requesting the Lindsay Corporation call. Additionally, the conferencecall will be simulcast live on the Internet and can be accessed via the investor relations section of the Company’s Web site, www.lindsay.com. Replays ofthe conference call will remain on our Web site through the next quarterly earnings release. The Company will have a slide presentation available toaugment management’s formal presentation, which will also be accessible via the Company’s Web site.
About the Company
Lindsay Corporation (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology.Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber andtransportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic® center pivot and lateral moveagricultural irrigation systems and FieldNET® remote irrigation management and scheduling technology, as well as irrigation consulting and design andindustrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve roadsafety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems®, Road Zipper® and Snoline™ brands. For moreinformation about Lindsay Corporation, visit www.lindsay.com.
Concerning Forward-looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties and which reflect management’s current beliefs andestimates of future economic circumstances, industry conditions, Company performance and financial results. You can find a discussion of many ofthese risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission.Forward-looking statements include information concerning possible or assumed future results of operations and planned financing of the Companyand those statements preceded by, followed by or including the words “anticipate,” “estimate,” “believe,” “intend,” “expect,” “outlook,” “could,”“may,” “should,” “will,” or similar expressions. For these statements, the Company claims the protection of the safe harbor for forward-lookingstatements contained in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-lookinginformation contained in this press release.
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LINDSAY CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited) Three Months Ended August 31,
Years EndedAugust 31,
(in thousands, except per share amounts) 2020 2019 2020 2019 Operating revenues $ 128,405 $ 101,885 $474,692 $444,072 Cost of operating revenues 83,038 70,398 322,149 329,464
Gross profit 45,367 31,487 152,543 114,608
Operating expenses: Selling expense 9,343 6,886 31,444 30,820 General and administrative expense 14,921 17,152 52,947 63,737 Engineering and research expense 3,647 3,389 13,950 13,936
Total operating expenses 27,911 27,427 98,341 108,493
Operating income 17,456 4,060 54,202 6,115 Other income (expense):
Interest expense (1,185) (1,215) (4,759) (4,767) Interest income 544 472 1,956 2,402 Other income (expense), net 1,641 (1,052) (2,556) (1,643)
Total other income (expense) 1,000 (1,795) (5,359) (4,008)
Earnings before income taxes 18,456 2,265 48,843 2,107 Income tax expense (benefit) 3,782 762 10,214 (65)
Total operating income $ 17,456 $ 4,060 $ 54,202 $ 6,115
The Company manages its business activities in two reportable segments as follows:
Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well asvarious innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and schedulingtechnology, irrigation consulting and design and industrial IoT solutions.
Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and endterminals, and road marking and road safety equipment.
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LINDSAY CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands)
August 31,2020
August 31,2019
ASSETS Current assets:
Cash and cash equivalents $ 121,403 $ 127,204 Marketable securities 19,511 — Receivables, net of allowance of $2,780 and $2,635, respectively 84,604 75,551 Inventories, net 104,792 92,287 Assets held-for-sale — 2,744 Other current assets 17,625 15,704
Total current assets 347,935 313,490
Property, plant, and equipment, net 79,581 68,968 Intangible assets, net 23,477 24,382 Goodwill 68,004 64,387 Operating lease right-of-use assets 27,457 — Deferred income tax assets 9,935 11,758 Other noncurrent assets 14,137 17,329
Total assets $ 570,526 $ 500,314
LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:
Accounts payable $ 29,554 $ 29,434 Current portion of long-term debt 195 209 Other current liabilities 72,646 52,488
Shareholders’ equity: Preferred stock — — Common stock 18,918 18,870 Capital in excess of stated value 77,686 71,684 Retained earnings 499,724 474,740 Less treasury stock - at cost (277,238) (277,238) Accumulated other comprehensive loss, net (20,572) (19,847)
Total shareholders’ equity 298,518 268,209
Total liabilities and shareholders’ equity $ 570,526 $ 500,314
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LINDSAY CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Years EndedAugust 31,
(in thousands) 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 38,629 $ 2,172 Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 19,396 14,018 Gain on sale of property and equipment (1,158) 26 Loss on sale of businesses — 301 Provision (benefit) for uncollectible accounts receivable 589 (496) Deferred income taxes 1,384 (5,686) Share-based compensation expense 5,616 4,195 Valuation adjustment for indirect tax credits — 2,795 Foreign currency transaction loss 1,102 709 Other, net 1,446 246
Changes in assets and liabilities: Receivables (9,523) (7,969) Inventories (14,039) (16,187) Other current assets (6,612) 173 Accounts payable (691) 2,119 Other current liabilities 16,673 2,629 Other noncurrent assets and liabilities (6,778) 4,752
Net cash provided by operating activities 46,034 3,797
CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (21,445) (23,211) Proceeds from sale of assets held-for-sale 3,955 — Purchases of marketable securities available-for-sale (28,041) — Proceeds from maturities of marketable securities available-for-sale 8,548 — Proceeds from settlement of net investment hedges 1,503 2,262 Payments for settlement of net investment hedges — (327) Acquisition of business, net of cash acquired (3,034) — Other investing activities, net — 57
Net cash used in investing activities (38,514) (21,219)
CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of stock options 1,545 177 Common stock withheld for payroll tax obligations (1,111) (1,124) Principal payments on long-term debt (227) (205) Payment of debt issuance costs — (115) Dividends paid (13,645) (13,375)
Cash and cash equivalents, end of period (13,438) (14,642)
Effect of exchange rate changes on cash and cash equivalents 117 (1,519)
Net change in cash and cash equivalents (5,801) (33,583) Cash and cash equivalents, beginning of period 127,204 160,787
Cash and cash equivalents, end of period $121,403 $127,204
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LINDSAY CORPORATION AND SUBSIDIARIESRECONCILIATION 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 from businessdivestitures, associated with the Company’s Foundation for Growth Initiative (“FFG costs”), and (2) a valuation adjustment for indirect tax credits in aforeign jurisdiction (“valuation adjustment”), (b) the impact on operating income of FFG costs and the valuation adjustment, and (c) the impact onsegment operating income of FFG costs and the valuation adjustment. Management believes adjusted net earnings, adjusted diluted earnings per shareand adjusted operating income are important indicators of the Company’s business performance because they exclude items that may not be indicativeof, or may be unrelated to, the Company’s underlying operating results, and provide a useful baseline for analyzing trends in the business. Non-GAAPmeasures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.These adjusted financial measures should not be considered in isolation or as a substitute for reported net earnings, diluted earnings per share andoperating income. These non-GAAP financial measures reflect an additional way of viewing the Company’s operations that, when viewed with the GAAPresults and the following reconciliations to the corresponding GAAP financial measures, management believes provides a more complete understandingof the Company’s business.
Three months ended Twelve months ended
(in thousands, except per share amounts) August 31,
Average shares outstanding - diluted 10,816 10,810 * The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction.
Three months ended August 31, 2019 Operating income reconciliation Consolidated Irrigation Infrastructure Corporate Operating income - reported GAAP measure $ 4,060 $ 3,463 $ 9,340 $ (8,743) FFG costs 1,947 — — 1,947 Valuation adjustment 2,795 2,795 — —
Operating revenues $ 101,885 $ 69,504 $ 32,381 $ — Operating income as a percent of operating revenues 4.0% 5.0% 28.8% N/A Adjusted operating income as a percent of operating revenues 8.6% 9.0% 28.8% N/A
Operating revenues $ 444,072 $ 351,498 $ 92,574 $ — Operating income as a percent of operating revenues 1.4% 8.5% 17.9% N/A Adjusted operating income as a percent of operating revenues 5.4% 9.5% 18.1% N/A
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4t h Quar t e r Fi s ca l 2020 Ear ni ngs Sl i de Deck Exhi bi t 99. 2
Saf e- Har bor St a t em ent Thi s pr es ent a t i on cont a i ns f or war d- l ooki ng s t a t em ent s t ha t a r e s ubj ec t t o r i s ks and uncer t a i nt i es and whi ch r e f l ec t m anagem ent ’ s cur r ent be l i e f s and es t i m at es of f ut ur e econom i c c i r cum s t ances , i ndus t r y condi t i ons , Com pany per f or m ance , f i nanc i a l r es ul t s and pl anned f i nanc i ng. You can f i nd a di s cus s i on of m any of t hes e r i s ks and uncer t a i nt i es i n t he annua l , quar t e r l y and cur r ent r epor t s t ha t t he Com pany f i l es wi t h t he Secur i t i e s and Exchange Com m i s s i on. I nves t or s s houl d under s t and t ha t a num ber of f ac t or s coul d caus e f ut ur e econom i c and i ndus t r y condi t i ons , and t he Com pany’ s ac t ua l f i nanc i a l condi t i on and r es ul t s of oper a t i ons , t o di f f e r m at e r i a l l y f r om m anagem ent ’ s be l i e f s expr es s ed i n t he f or war d- l ooki ng s t a t em ent s cont a i ned i n t hi s pr es ent a t i on. Thes e f ac t or s i nc l ude but a r e not l i m i t ed t o t hos e out l i ned i n t he " Ri s k Fac t or s ” s ec t i ons of t he Com pany’ s m os t r ecent annua l r epor t on For m 10- K f i l edwi t h t he Secur i t i e s and Exchange Com m i s s i on and t he Com pany’ s quar t e r l y r epor t on For m 10- Q f or t he f i s ca l quar t e r ended Febr uar y 29, 2020, and i nves t or s a r e ur ged t o r evi ew t hes e f ac t or s when cons i der i ng t he f or war d- l ooki ng s t a t em ent s cont a i ned i n t hi s pr es ent a t i on. For t hes e s t a t em ent s , t he Com pany c l a i m s t he pr ot ec t i on of t he s a f e har bor f or f or war d- l ooki ng s t a t em ent s cont a i ned i n t he Pr i va t e Secur i t i e s Li t i ga t i on Ref or m Act of 1995. For f ul l f i nanc i a l s t a t em ent i nf or m at i on, pl eas e s ee t he Com pany’ s ea r ni ngs r e l eas e da t ed Oct ober 22, 2020.
Four t h Quar t e r Sum m ar y *Pl eas e s ee Reg G r econc i l i a t i on of GAAP oper a t i ng i ncom e, ne t ea r ni ngs and di l ut ed ea r ni ngs per s har e t o adj us t ed f i gur es a t end of pr es ent a t i on. Revenue Oper a t i ng I ncom e Di l ut ed EPS Revenues i nc r eas ed $26. 5 m i l l i on com par ed t o pr i or year I r r i ga t i on i nc r eas ed $6. 1 m i l l i on I nf r as t r uc t ur e i nc r eas ed $20. 4 m i l l i on Oper a t i ng i ncom e i ncr eas ed $8. 7 m i l l i on com par ed t o adj us t ed pr i or year r es ul t s * I r r i ga t i on decr eas ed $0. 5 m i l l i on i nc l udi ng nega t i ve i m pac t of addi t i ona l expens es of $1. 6 m i l l i on I nf r as t r uc t ur e i nc r eas ed $10. 8 m i l l i on Cor por a t e expens e i nc r eas ed $1. 6 m i l l i on due m ai nl y t o i nc r em ent a l i ncent i ve expens e GAAP Adj us t ed* GAAP Adj us t ed* Am ount s i n m i l l i ons , except pe r s har e am ount s FY19 FY20 FY19 FY20
Fi s ca l 2020 Sum m ar y *Pl eas e s ee Reg G r econc i l i a t i on of GAAP oper a t i ng i ncom e, ne t ea r ni ngs and di l ut ed ea r ni ngs per s har e t o adj us t ed f i gur es a t end of pr es ent a t i on. Revenue Oper a t i ng I ncom e Di l ut ed EPS Revenues i nc r eas ed $30. 6 m i l l i on com par ed t o pr i or year I r r i ga t i on decr eas ed $8. 0 m i l l i on I nf r as t r uc t ur e i nc r eas ed $38. 6 m i l l i on Oper a t i ng i ncom e i ncr eas ed $30. 2 m i l l i on com par ed t o adj us t ed pr i or year r es ul t s * I r r i ga t i on i nc r eas ed $6. 9 m i l l i on I nf r as t r uc t ur e i nc r eas ed $27. 0 m i l l i on Cor por a t e expens e i nc r eas ed $3. 7 m i l l i on due m ai nl y t o i nc r em ent a l i ncent i ve expens e GAAP Adj us t ed* GAAP Adj us t ed* Am ount s i n m i l l i ons , except pe r s har e am ount s FY19 FY20 FY19 FY20
Four t h Quar t e r and FY20 Fi nanc i a l Sum m ar y *Pl eas e s ee Reg G r econc i l i a t i on of GAAP oper a t i ng i ncom e, ne t ea r ni ngs and di l ut ed ea r ni ngs per s har e t o adj us t ed f i gur es a t end of pr es ent a t i on.
Cur r ent M ar ke t Fac t or s Gl oba l com m odi t y pr i ces dec l i ned s i gni f i cant l y ea r l i e r i n t he year as a r es ul t of t he COVI D- 19 pandem i c but have r ecent l y r ecover ed as t he dem and envi r onm ent has i m pr oved and pr oduc t i on es t i m at es f r om t he U. S. ha r ves t have dec l i ned. 2020 Net Far m I ncom e i s pr oj ec t ed by t he USDA t o be $102. 7 bi l l i on, an i nc r eas e of 22. 7% f r om 2019. The i nc r eas e i s com i ng pr i m ar i l y f r om hi gher Feder a l gover nm ent di r ec t f a r m pr ogr am paym ent s . Under t he U. S. - Chi na Phas e 1 t r ade dea l , Chi na pl edged t o i nc r eas e pur chas es of U. S. agr i cul t ur a l pr oduc t s by $32 bi l l i on over t wo year s . Year - t o- da t e expor t s t o Chi na have i nc r eas ed over t he pr i or year but r em ai n be l ow com m i t m ent s i n t he t r ade dea l . Et hanol dem and has i m pr oved s i nce f a l l i ng ea r l i e r i n t he year but r em ai ns l ower t han a year ago. Food s ecur i t y has becom e an i ncr eas ed concer n i n ce r t a i n i nt e r na t i ona l m ar ke t s . I r r i ga t i on I nf r as t r uc t ur e The f i ve - year $305 bi l l i onU. S. hi ghway bi l l enac t ed i n Decem ber 2015 ( t he " FAST Act ” ) was s e t t o expi r e Sept em ber 30, however Congr es s and t he Adm i ni s t r a t i on have appr oved t he Cont i nui ng Appr opr i a t i ons Act , whi ch ext ended t he FAST Act f or one year . Thi s pr ovi des f undi ng ce r t a i nt y f or r oad and br i dge pr oj ec t s over t hi s pe r i od. Cons t r uc t i on ac t i vi t y has s l owed gl oba l l y becaus e of t he COVI D- 19 pandem i c . Our " s hi f t l e f t ” s t r a t egy cont i nues t o ga i n t r ac t i on i n i nc r eas i ng t he addr es s abl e m ar ke t f or Road Zi pper Sys t em ® s a l es and l eas e oppor t uni t i es . St a t es cont i nue t he t r ans i t i on t o new f eder a l M ASH t es t i ng s t andar ds f or r oad s a f e t y pr oduc t s . Al m os t a l l our r oad s a f e t y pr oduc t of f e r i ngs i n t he U. S. have now r ece i ved M ASH e l i gi bi l i t y but a r e pendi ng appr ova l i n ce r t a i n s t a t es .
I r r i ga t i on Segm ent – Four t h Quar t e r Sum m ar y 7 Nor t h Am er i ca r evenue decr eas ed $1. 7 m i l l i on Engi neer i ng s e r vi ces pr oj ec t i n pr i or year di d not r epea t I ncr eas e i n i r r i ga t i on equi pm ent uni t vol um e Hi gher s a l es of r epl acem ent par t s Lower aver age s e l l i ng pr i ces I nt e r na t i ona l r evenue i ncr eas ed $7. 8 m i l l i on Hi gher s a l es vol um es i n Br az i l , Aus t r a l i a and t he M i ddl e Eas t Unf avor abl e cur r ency i m pac t of $3. 4 m i l l i on Oper a t i ng i ncom e decr eas ed $0. 5 m i l l i on com par ed t o adj us t ed pr i or year r es ul t s * Addi t i ona l expens es of $1. 6 m i l l i on r e l a t ed t o an i nc r eas e i n t he envi r onm ent a l r em edi a t i on l i abi l i t y and s ever ance cos t s Exc l udi ng t hes e addi t i ona l expens es , oper a t i ng m ar gi n was 9. 8% Revenue Oper a t i ng I ncom e GAAP Adj us t ed* Nor t h Am er i ca I nt e r na t i ona l FY19 FY20 FY19 FY20 *Pl eas e s ee Reg G r econc i l i a t i on of GAAP oper a t i ng i ncom e, ne t ea r ni ngs and di l ut ed ea r ni ngs per s har e t o adj us t ed f i gur es a t end of pr es ent a t i on. Am ount s i n m i l l i ons
I nf r as t r uc t ur e Segm ent – Four t h Quar t e r Sum m ar y Tot a l r evenue i ncr eas ed $20. 4 m i l l i on I ncr eas e i n Road Zi pper Sys t em ® s a l es Hi ghways Engl and pr oj ec t J apan bar r i e r or der Road s a f e t y pr oduc t s r evenue com par abl e t o pr i or year I m pac t of COVI D- 19- r e l a t ed de l ays wer e m i t i ga t ed by pul l i ng f or war d ot her pr oj ec t s Oper a t i ng i ncom e i ncr eas ed $10. 8 m i l l i on and oper a t i ng m ar gi n i nc r eas ed t o 38. 0% Pos i t i ve m i x i m pac t f r om hi gher - m ar gi n Road Zi pper Sys t em s a l es I m pr oved cos t and pr i c i ng per f or m ance Revenue Oper a t i ng I ncom e GAAP Adj us t ed* FY19 FY20 FY19 FY20 *Pl eas e s ee Reg G r econc i l i a t i on of GAAP oper a t i ng i ncom e, ne t ea r ni ngs and di l ut ed ea r ni ngs per s har e t o adj us t ed f i gur es a t end of pr es ent a t i on. Am ount s i n m i l l i ons
COVI D- 19 Upda t e I nnova t i ve M ar ke t Leader – Sus t a i nabl e Sol ut i ons Li nds ay’ s pr oduc t s and t echnol ogi es s uppor t t he f ol l owi ng c r i t i ca l i nf r as t r uc t ur e s ec t or s as def i ned by t he Depar t m ent of Hom el and Secur i t y ( CI SA. gov) and ot her gl oba l gover nm ent agenc i es : Food and Agr i cul t ur e – our i r r i ga t i on bus i nes s s uppor t s t he pr oduc t i on of f ood and t he cons er va t i on of wat e r and ener gy Tr ans por t a t i on Sys t em s – our i nf r as t r uc t ur e bus i nes s s uppor t s t he m ovem ent of peopl e and goods e f f i c i ent l y, s a f e l y and s ecur e l y Li nds ay’ s pr oduc t i on f ac i l i t i e s a r e cons i der ed " bus i nes s es s ent i a l ” and wi l l r em ai n oper a t i ona l as l ong as we 1) have dem and f or our pr oduc t s , 2) a r e a l l owed t o r em ai n open by l oca l gover nm ent s , and 3) can pr ovi de f or t he s a f e t y of our em pl oyees . At t he pr es ent t i m e , a l l of our f ac i l i t i e s a r e oper a t i ona l . Ot her pot ent i a l bus i nes s i m pac t s as s oc i a t ed wi t h COVI D- 19 i nc l ude but a r e not l i m i t ed t o: addi t i ona l f ac i l i t y c l os ur es and t he dur a t i onof s uch c l os ur es , s uppl y cha i n di s r upt i on and addi t i ona l cos t s , l ogi s t i cs de l ays , bor der c l os ur es , wor kf or ce di s r upt i on, r educed dem and f or our pr oduc t s and s e r vi ces , de l ay i n t he i m pl em ent a t i on of pr oj ec t s and ot her e f f ec t s t ha t m ay r es ul t f r om a gener a l econom i c downt ur n. Li nds ay i s we l l pos i t i oned wi t h a s t r ong ba l ance s hee t and s uf f i c i ent l i qui di t y as we f ace t he uncer t a i nt y and cha l l enges pr es ent ed by t he COVI D- 19 pandem i c . As of Augus t 31, 2020 we have : Ava i l abl e l i qui di t y of $190. 9 m i l l i on, wi t h $140. 9 m i l l i on i n cas h, cas h equi va l ent s and m ar ke t abl e s ecur i t i e s and $50. 0 m i l l i on ava i l abl e under r evol vi ng c r edi t f ac i l i t y Tot a l debt of $115. 9 m i l l i on, of whi ch $115. 0 m i l l i on m at ur es i n 2030 A f unded debt t o EBI TDA l ever age r a t i o ( as def i ned i n our c r edi t agr eem ent s ) of 1. 5 com par ed t o a covenant l i m i t of 3. 0
COVI D- 19 Pr ot ocol s i n Pl ace I nnova t i ve M ar ke t Leader – Sus t a i nabl e Sol ut i ons Pr ot ec t i ng t he hea l t h and wel l - be i ng of our em pl oyees i s a t op pr i or i t y, a s i s m ai nt a i ni ng f r equent com m uni ca t i on and pr ovi di ng i m por t ant upda t es . Si nce t he out s e t of t he pandem i c , we have : Cr ea t ed a gl oba l t a s k f or ce and com m uni ca t i on s t r a t egy I m pl em ent ed s oc i a l di s t anc i ng pr ot ocol s I ni t i a t ed r em ot e wor k s t r a t egy f or em pl oyees not es s ent i a l t o f ac t or y oper a t i ons Res t r i c t ed dom es t i c and i nt e r na t i ona l t r ave l f or bus i nes s - es s ent i a l pur pos es Com pl e t ed an e l ec t r os t a t i c s pr ay deep c l ean a t our gl oba l headquar t e r s Pl aced ce r t a i n l i m i t a t i ons on vi s i t or s t o a l l our f ac i l i t i e s Conduc t ed s c r eeni ng ques t i onna i r es f or a l l f ac i l i t y vi s i t or s I ncr eas ed f r equency and i nt ens i t y of di s i nf ec t i ng a l l hi gh- t ouch a r eas I m pl em ent ed t em per a t ur e checks a t f ac i l i t i e s i n hi gh r i s k l oca t i ons I m pl em ent ed s t agger ed br eaks i n our f ac t or y oper a t i ons Cr ea t ed a COVI D- 19 M anager a teach f ac i l i t y t o ens ur e r i gi d di s c i pl i ne of pr ot ocol s Es t abl i s hed pr ot ocol s i n t he event of a conf i r m ed COVI D- 19 di agnos i s I m pl em ent ed vi r t ua l or phone m ee t i ng pr ot ocol s
Execut i ng Long- Ter m Val ue Cr ea t i on I nnova t i ve M ar ke t Leader – Sus t a i nabl e Sol ut i ons Deepeni ng cus t om er r e l a t i ons hi ps t hr ough t echnol ogy di f f e r ent i a t i on Sol ut i ons and gr owt h a l i gned t o m ar ke t m ega t r ends …. des i gned t o s us t a i n and pr ot ec t our evol vi ng wor l d Founda t i on f or Gr owt h i ni t i a t i ve dr i vi ng m ar gi n expans i on Em power ed gl oba l cul t ur e t hr ough Vi s i on, Va l ues and Behavi or s Fr am ewor k I nnova t i ve M ar ke t Leader – Sus t a i nabl e Sol ut i ons ONE LI NDSAY
Founda t i on f or Gr owt h I ni t i a t i ve M ar gi n i m pr ovem ent Cos t St r a t egy and Cul t ur e Obj ec t i ves Ra i s e oper a t i ng m ar gi n f l oor I nnova t i on l eader i n cor e m ar ke t s Renewed cul t ur e and i dent i t y 1 2 3 4 5 6 Com m er c i a l Exce l l ence Gl oba l Sour c i ng M anuf ac t ur i ng Opt i m i za t i on Lower G& A Expens es Cul t ur a l Changes St r a t egi c Choi ces
Founda t i on f or Gr owt h Execut i on Accom pl i s hm ent s t hr ough Fi s ca l 2020 Di ves t ed f our non- cor e bus i nes s es ; acqui r ed Net I r r i ga t e , LLC ü Es t abl i s hed a cent r a l i zed s our c i ng & s har ed s e r vi ces or gani za t i on ü Cl os ed and s ol d an i nf r as t r uc t ur e f ac i l i t y; cons ol i da t ed ac t i vi t y i nt o an exi s t i ng i r r i ga t i on f ac i l i t y ü Achi eved 1s t quar t i l e r anki ng i n or gani za t i ona l hea l t h as s es s m ent ü Del i ver ed 11. 4% oper a t i ng m ar gi n ü
Sum m ar y Ba l ance Shee t
Sum m ar y of Cas h Fl ow 15
Capi t a l Al l oca t i on – Las t 10 Year s Al l oca t i on Hi s t or y Ot her i nc l udes debt r epaym ent s , ne t cas h s our ces / us es f r om not e r ece i vabl es , ne t i nves t m ent hedges , s t ock com pens a t i on and r e l a t ed t ax benef i t s . Endi ng cas h i nc l udes m ar ke t abl e s ecur i t i e s Tar ge t ed cas h ba l ance of $60- 75 m i l l i on, i nc l udi ng i nt e r na t i ona l account s To s uppor t cyc l i ca l and s eas ona l f l uc t ua t i ons i n wor ki ng capi t a l and pr oj ec t ed capi t a l expendi t ur es $115 m i l l i on i n Seni or Not es m at ur i ng on 2/ 19/ 30 a t annua l i nt e r es t r a t e of 3. 82% The Com pany’ s pr i or i t i za t i on f or cas h us e : Or gani c gr owt h i ni t i a t i ves Capi t a l expendi t ur es - expec t ed t o be $15- 20 m i l l i on i n f i s ca l 2021 Di vi dend paym ent s Syner gi s t i c acqui s i t i ons t ha t l ever age cor e capabi l i t i e s Exces s cas h i nves t ed i n oppor t uni s t i c s har e r epur chas es Al l oca t i on Pl an
At t r ac t i ve Long- Ter m M egat r ends W at er Cons er va t i on Al t e r na t i ve Fue l s I ncr eas e Yi e l ds I m pr ove Road Saf e t y Popul a t i on Gr owt h Advanc i ng Technol ogy
Regul a t i on G Reconc i l i a t i on of GAAP t o Non- GAAP Fi nanc i a l M eas ur es LI NDSAY CORPORATI ON AND SUBSI DI ARI ES RECONCI LI ATI ON OF GAAP TO NON- GAAP FI NANCI AL M EASURES ( Unaudi t ed) The non- GAAP t abl es be l ow di s c l os e ( a ) t he i m pac t on di l ut ed ea r ni ngs per s har e of ( 1) cons ul t i ng f ees , s ever ance cos t s and l os s f r om bus i nes s di ves t i t ur es , a s s oc i a t ed wi t h t he Com pany's Founda t i on f or Gr owt h I ni t i a t i ve ( " FFG cos t s " ) , and ( 2) a va l ua t i on adj us t m ent f or i ndi r ec t t ax c r edi t s i n a f or e i gn j ur i s di c t i on ( " va l ua t i on adj us t m ent ” ) , ( b) t he i m pac t on oper a t i ng i ncom e of FFG cos t s and t he va l ua t i on adj us t m ent , and ( c ) t he i m pac t on s egm ent oper a t i ng i ncom e of FFG cos t s and t he va l ua t i on adj us t m ent . M anagem ent be l i eves adj us t ed ne t ea r ni ngs , adj us t ed di l ut ed ea r ni ngs per s har e and adj us t ed oper a t i ng i ncom e a r e i m por t ant i ndi ca t or s of t he Com pany’ s bus i nes s per f or m ance becaus e t hey exc l ude i t em s t ha t m ay not be i ndi ca t i ve of , or m ay be unr e l a t ed t o, t heCom pany’ s under l yi ng oper a t i ng r es ul t s , and pr ovi de a us e f ul bas e l i ne f or ana l yz i ng t r ends i n t he bus i nes s . Non- GAAP m eas ur es us ed by t he Com pany m ay di f f e r f r om s i m i l a r m eas ur es us ed by ot her com pani es , even when s i m i l a r t e r m s a r e us ed t o i dent i f y s uch m eas ur es . Thes e adj us t ed f i nanc i a l m eas ur es s houl d not be cons i der ed i n i s ol a t i on or as a s ubs t i t ut e f or r epor t ed ne t ea r ni ngs , di l ut ed ea r ni ngs per s har e and oper a t i ng i ncom e. Thes e non- GAAP f i nanc i a l m eas ur es r e f l ec t an addi t i ona l way of vi ewi ng t he Com pany’ s oper a t i ons t ha t , when vi ewed wi t h t he GAAP r es ul t s and t he f ol l owi ng r econc i l i a t i ons t o t he cor r es pondi ng GAAP f i nanc i a l m eas ur es , m anagem ent be l i eves pr ovi des a m or e com pl e t e under s t andi ng of t he Com pany’ s bus i nes s .
Regul a t i on G Reconc i l i a t i on of GAAP t o Non- GAAP Fi nanc i a l M eas ur es LI NDSAY CORPORATI ON AND SUBSI DI ARI ES RECONCI LI ATI ON OF GAAP TO NON- GAAP FI NANCI AL M EASURES ( Unaudi t ed) ( Cont i nued)
