Q3 2024 Lindsay Corp Earnings Call Transcript
Key Points
- Lindsay Corp (LNN) announced a key project win in irrigation, valued at over $100 million, the largest in the company's history.
- Strong growth in the Road Zipper System sales and leasing revenues contributed positively to the infrastructure segment.
- The company released significant enhancements to its FieldNET platform, providing growers with additional insights to optimize planning and conserve resources.
- Lindsay Corp (LNN) has a strong balance sheet with $202.7 million in available liquidity, including $152.7 million in cash and marketable securities.
- The company completed share repurchases of $17.9 million, demonstrating a commitment to returning capital to shareholders.
- Consolidated revenues for the third quarter decreased by 15% compared to the prior year, primarily due to lower irrigation segment revenues.
- North America irrigation revenues decreased by 9% year-over-year, impacted by lower unit sales volume and wet field conditions.
- International irrigation revenues decreased by 31%, with significant declines in Brazil due to suppressed commodity prices and limited access to capital.
- Irrigation segment operating income decreased by 36%, with operating margin dropping from 21.6% to 17% of sales.
- The company anticipates margin pressure in the next 12 to 18 months due to operational investments and inefficiencies.
Hello, and welcome to the Lindsay Corporation fiscal third-quarter 2024 earnings conference call. (Operator Instructions)
As a reminder, this event is being recorded. I would now like to turn the conference over to Randy Wood President and CEO of Lindsay Corporation. Please go ahead.
Thank you, and good morning, everyone, and welcome to our fiscal 2024 third quarter earnings call. With me today is Brian Ketcham our Chief Financial Officer.
Our fiscal third quarter was highlighted by steady execution, which resulted in strong operational performance. Despite market headwinds that impacted top-line revenue, we announced a key project win in irrigation and continue to be pleased with the growth of our Road Zipper sales and lease business and infrastructure. I'm proud of our teams and their execution.
Turning to our key end markets. In North America, irrigation market conditions continue to weigh on farmer sentiment, resulting in overall demand softness. High
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