/LINDSAY" ennummining minution minuting 2™ Quarter Fiscal 2021 Earnings Slide Deck 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. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company fi ...

/LINDSAY" ennummining minution minuting 1st Quarter Fiscal 2021 Earnings Slide Deck 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. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company f ...

Lindsay Corporation (NYSE:LNN) Q1 2021 Earnings Conference Call January 7, 2021 11:00 AM ET Company Participants Randy Wood - President and CEO Brian Ketcham - SVP and CFO Conference Call Participants Brian Drab - William Blair Nathan Jones - Stifel Ryan Connors - Benning and Scattergood Jon Braatz - Kansas City Capital Chris Shaw - Moness, Crespi & Hardt Bill Baldwin - Baldwin Anthony Securities Operator Good morning. My name is Matt and I will be your conference operator today. At this time, I'd like to w ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-13419 Lindsay Corporation (Exact name of registrant as specified in its charter) Delaware 47-0554096 (State or other jurisdiction of incorporat ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) Lindsay Corporation operates in water management and road infrastructure, with key segments: Irrigation and Infrastructure - The company operates through two primary reporting segments: Irrigation and Infrastructure[8](index=8&type=chunk) - The Irrigation segment manufactures and markets center pivot, lateral move, and hose reel irrigation systems under brands including Zimmatic®, Perrot™, and Greenfield®, enhanced with technologies like GPS guidance and FieldNET® remote management[9](index=9&type=chunk)[11](index=11&type=chunk)[17](index=17&type=chunk) - The Infrastructure segment focuses on manufacturing and marketing products like the Quickchange® Moveable Barrier™ (Road Zipper System®), crash cushions, and other road safety equipment[10](index=10&type=chunk)[28](index=28&type=chunk)[32](index=32&type=chunk) International Irrigation Sales Contribution | Fiscal Year | Percentage of Total Irrigation Segment Revenues | | :--- | :--- | | 2020 | ~36% | | 2019 | ~38% | Order Backlog (as of August 31) | Year | Total Backlog ($ in millions) | Amount Not Expected to be Fulfilled in Next Fiscal Year ($ in millions) | | :--- | :--- | :--- | | 2020 | $58.7 | $6.3 | | 2019 | $55.4 | $10.0 | Capital Expenditures | Fiscal Year | Amount ($ in millions) | | :--- | :--- | | 2020 | $21.4 | | 2019 | $23.2 | | 2018 | $11.1 | | 2021 (Est.) | $15.0 - $20.0 | [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) Agricultural industry, international operations, government funding, and product liability litigation present key risks to the company - Irrigation revenues are highly cyclical and dependent on factors like agricultural commodity prices, farm income, and weather conditions[70](index=70&type=chunk)[71](index=71&type=chunk) - International sales are subject to risks from foreign market conditions, trade barriers (such as U.S.-China tariffs), and currency exchange rate fluctuations[74](index=74&type=chunk)[75](index=75&type=chunk)[78](index=78&type=chunk) - The COVID-19 pandemic presents risks related to workforce, customer demand, supply chain disruptions, and potential economic downturns[78](index=78&type=chunk) - Infrastructure revenues depend heavily on government spending for transportation projects, which can be subject to reduction or delay[80](index=80&type=chunk) - The company is defending product liability lawsuits and a Department of Justice investigation related to its X-Lite® end terminal product, which could result in significant damages and reputational harm[88](index=88&type=chunk)[89](index=89&type=chunk) [Properties](index=15&type=section&id=Item%202.%20Properties) Corporate headquarters are leased in Omaha, with owned and leased manufacturing facilities located across the U.S. and internationally Significant Company Properties | Segment | Location | Ownership | Size (sq. ft.) | Description | | :--- | :--- | :--- | :--- | :--- | | Corporate | Omaha, NE | Lease | 55,000 | Corporate headquarters | | Irrigation | Lindsay, NE | Own | 300,000 | Principal U.S. manufacturing plant | | Irrigation | Corlu, Turkey | Lease | 283,000 | Manufacturing plant | | Irrigation | Tianjin, China | Lease | 163,000 | Manufacturing plant | | Infrastructure | Milan, Italy | Own | 45,000 | Manufacturing plant | | Infrastructure | Rio Vista, CA | Own | 30,000 | Manufacturing plant | [Legal Proceedings](index=16&type=section&id=Item%203.%20Legal%20Proceedings) Routine legal proceedings are ongoing, with specific disclosures for environmental remediation and infrastructure products litigation - The company is involved in routine commercial, product liability, and other legal proceedings, which are not expected to have a material effect on the business[100](index=100&type=chunk) - Specific disclosures regarding significant legal matters, including infrastructure products litigation and environmental remediation, are provided in Note 16 to the consolidated financial statements[100](index=100&type=chunk)[101](index=101&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=17&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Common stock trades on NYSE (LNN); a share repurchase program is active, and dividends were paid during the fiscal year - The company's common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol LNN[105](index=105&type=chunk) - As of August 31, 2020, **$63.7 million** remained available under the company's share repurchase program, with no shares repurchased during fiscal years 2020, 2019, or 2018[106](index=106&type=chunk) Dividends Paid | Fiscal Year | Total Dividends Paid ($ in millions) | | :--- | :--- | | 2020 | $13.6 | | 2019 | $13.4 | [Selected Financial Data](index=19&type=section&id=Item%206.%20Selected%20Financial%20Data) A five-year summary of key financial and operational data highlights fiscal 2020's significant increase in profitability Selected Financial Data (Years ended August 31) | ($ in millions, except per share data) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Operating revenues | $474.7 | $444.1 | $547.7 | | Gross profit | $152.5 | $114.6 | $151.5 | | Operating income | $54.2 | $6.1 | $39.0 | | Net earnings | $38.6 | $2.2 | $20.3 | | Diluted net earnings per share | $3.56 | $0.20 | $1.88 | | Cash dividends per share | $1.26 | $1.24 | $1.21 | | Total assets | $570.5 | $500.3 | $499.8 | | Long-term debt | $115.9 | $116.1 | $116.3 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2020 revenues grew 7% to $474.7 million, driven by a 42% Infrastructure segment surge, resulting in dramatically improved net earnings Fiscal 2020 vs. 2019 Performance Highlights | Metric | Fiscal 2020 | Fiscal 2019 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $474.7M | $444.1M | +7% | | - Irrigation Revenues | $343.5M | $351.5M | -2% | | - Infrastructure Revenues | $131.2M | $92.6M | +42% | | Gross Margin | 32.1% | 25.8% | +6.3pp | | Operating Income | $54.2M | $6.1M | +786% | | Net Earnings | $38.6M | $2.2M | +1678% | | Diluted EPS | $3.56 | $0.20 | +1680% | - The increase in infrastructure revenue was primarily driven by higher Road Zipper System® sales, including approximately **$27.0 million** from a single project in the United Kingdom[144](index=144&type=chunk) - Fiscal 2019 results were negatively impacted by **$15.1 million** in pre-tax costs related to the 'Foundation for Growth' initiative, which did not repeat in fiscal 2020[130](index=130&type=chunk)[131](index=131&type=chunk)[146](index=146&type=chunk) - The company's cash, cash equivalents, and marketable securities increased to **$140.9 million** at year-end, with net cash from operations totaling **$46.0 million** for fiscal 2020[149](index=149&type=chunk)[151](index=151&type=chunk) - The company has **$115.0 million** in Senior Notes due 2030 and an undrawn **$50.0 million** revolving credit facility[157](index=157&type=chunk)[158](index=158&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Foreign currency exchange rate volatility is the primary market risk, mitigated by derivative instruments used for hedging - The company's main market risk is foreign currency exchange rate volatility; a hypothetical **10% adverse change** in exchange rates is estimated to decrease operating income by approximately **$0.6 million**[168](index=168&type=chunk) - The company uses derivative financial instruments, such as forward exchange contracts, to hedge exposures in the ordinary course of business and does not engage in speculative trading[166](index=166&type=chunk)[169](index=169&type=chunk) [Financial Statements and Supplementary Data](index=28&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited consolidated financial statements for fiscal year 2020, along with the independent auditor's report, are presented here [Consolidated Statements of Earnings](index=31&type=section&id=Consolidated%20Statements%20of%20Earnings) This section presents the company's consolidated statements of earnings for the fiscal years ended August 31, 2020, 2019, and 2018 Consolidated Earnings (Years ended August 31) | ($ in thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Operating revenues | 474,692 | 444,072 | 547,705 | | Gross profit | 152,543 | 114,608 | 151,462 | | Operating income | 54,202 | 6,115 | 39,012 | | Net earnings | 38,629 | 2,172 | 20,277 | [Consolidated Balance Sheets](index=33&type=section&id=Consolidated%20Balance%20Sheets) This section provides the company's consolidated balance sheets as of August 31, 2020 and 2019, detailing assets, liabilities, and equity Consolidated Balance Sheet Highlights (as of August 31) | ($ in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 121,403 | 127,204 | | Inventories, net | 104,792 | 92,287 | | Total current assets | 347,935 | 313,490 | | Total assets | 570,526 | 500,314 | | **Liabilities & Equity** | | | | Total current liabilities | 102,395 | 82,131 | | Long-term debt | 115,682 | 115,846 | | Total liabilities | 272,008 | 232,105 | | Total shareholders' equity | 298,518 | 268,209 | [Consolidated Statements of Cash Flows](index=35&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's consolidated statements of cash flows for the fiscal years ended August 31, 2020, 2019, and 2018 Consolidated Cash Flows (Years ended August 31) | ($ in thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 46,034 | 3,797 | 33,934 | | Net cash (used in) provided by investing activities | (38,514) | (21,219) | 18,105 | | Net cash used in financing activities | (13,438) | (14,642) | (11,252) | [Notes to Consolidated Financial Statements](index=36&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, new standards, legal contingencies, and segment performance, including X-Lite® litigation and environmental liabilities - The company adopted ASC 842 (Leases) in fiscal 2020, recording a right-of-use asset of **$26.2 million** and a lease liability of **$29.5 million** upon adoption[233](index=233&type=chunk) - The company is defending multiple product liability lawsuits and a Department of Justice investigation related to its X-Lite® end terminal; no loss has been deemed probable, so no accrual has been made[295](index=295&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk) - An environmental remediation liability of **$16.1 million** is accrued for the cleanup of the Lindsay, Nebraska facility site[299](index=299&type=chunk)[302](index=302&type=chunk) Segment Operating Income (Fiscal Year 2020) | ($ in thousands) | Operating Revenues | Operating Income | | :--- | :--- | :--- | | Irrigation | 343,529 | 40,214 | | Infrastructure | 131,163 | 43,771 | | Corporate | N/A | (29,783) | | **Total** | **474,692** | **54,202** | [Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) Disclosure controls were effective as of August 31, 2020, and a prior material weakness was successfully remediated - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of August 31, 2020[335](index=335&type=chunk) - A material weakness related to indirect tax credits in a foreign jurisdiction, identified in fiscal 2019, was remediated as of August 31, 2020[336](index=336&type=chunk)[337](index=337&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of August 31, 2020, and received an unqualified opinion from its independent auditor, KPMG LLP[339](index=339&type=chunk)[340](index=340&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, and Related Matters](index=66&type=section&id=Items%2010-14) Information on directors, executive compensation, and corporate governance is incorporated by reference from the 2020 Proxy Statement - Information required for Items 10 through 14 is incorporated by reference from the company's definitive Proxy Statement to be filed for its 2020 Annual Meeting of Stockholders[354](index=354&type=chunk)[357](index=357&type=chunk)[358](index=358&type=chunk) - The company has adopted a Code of Ethical Conduct applicable to its principal executive officer and senior financial officers, which is available on its website[356](index=356&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=68&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) Financial statements, schedules, and exhibits, including consolidated statements and an Exhibit Index, are listed as part of the Form 10-K - This section contains the list of financial statements and schedules included in the report, such as the Consolidated Statements of Earnings and the Valuation and Qualifying Accounts schedule[364](index=364&type=chunk)[365](index=365&type=chunk)[367](index=367&type=chunk) - An Exhibit Index is provided, listing all documents filed with the Form 10-K, including corporate governance documents, material contracts, and certifications[373](index=373&type=chunk)

Lindsay Corporation (NYSE:LNN) Q4 2020 Earnings Conference Call October 22, 2020 11:00 AM ET Company Participants Tim Hassinger - President and CEO Brian Ketcham - SVP and CFO Randy Wood - COO Conference Call Participants Nathan Jones - Stifel Brian Drab - William Blair Jon Braatz - Kansas City Capital Operator Good morning. My name is Gareth, and I will be your conference operator today. At this time, I would like to welcome everybody to the Lindsay Corporation Fourth Quarter Fiscal Year 2020 Earnings Call ...

4th Quarter Fiscal 2020 Earnings Slide Deck ZLINDSAY 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. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Ex ...

Part I – FINANCIAL INFORMATION [ITEM 1 – Financial Statements](index=3&type=section&id=ITEM%201%20%E2%80%93%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including operations, balance sheets, cash flows, and detailed notes on accounting policies and other financial items [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations | Metric | Three months ended May 31, 2020 ($ in millions) | Three months ended May 31, 2019 ($ in millions) | Nine months ended May 31, 2020 ($ in millions) | Nine months ended May 31, 2019 ($ in millions) | | :--------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Operating revenues | 123.1 | 121.1 | 346.3 | 342.2 | | Gross profit | 39.7 | 30.0 | 107.2 | 83.1 | | Operating income | 15.8 | 4.5 | 36.7 | 2.1 | | Net earnings | 10.1 | 2.9 | 24.0 | 0.7 | | Basic EPS | 0.93 | 0.27 | 2.21 | 0.06 | | Diluted EPS | 0.93 | 0.27 | 2.21 | 0.06 | | Cash dividends declared per share | 0.32 | 0.31 | 0.94 | 0.93 | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income | Metric | Three months ended May 31, 2020 ($ in millions) | Three months ended May 31, 2019 ($ in millions) | Nine months ended May 31, 2020 ($ in millions) | Nine months ended May 31, 2019 ($ in millions) | | :------------------------------------------ | :------------------------------------------------ | :------------------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Net earnings | 10.1 | 2.9 | 24.0 | 0.7 | | Foreign currency translation adjustment, net | (2.6) | (1.8) | (3.8) | 0.1 | | Total comprehensive income | 7.6 | 1.1 | 20.4 | 0.9 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets | Metric | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | August 31, 2019 ($ in millions) | | :-------------------------------- | :---------------------------- | :---------------------------- | :------------------------------- | | Total assets | 557.5 | 505.9 | 500.3 | | Total liabilities | 274.5 | 235.5 | 232.1 | | Total shareholders' equity | 283.0 | 270.4 | 268.2 | | Cash and cash equivalents | 102.5 | 110.8 | 127.2 | | Inventories, net | 113.3 | 91.1 | 92.3 | | Operating lease right-of-use assets | 27.7 | — | — | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Condensed Consolidated Statements of Shareholders' Equity | Metric | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | August 31, 2019 ($ in millions) | | :-------------------------------- | :---------------------------- | :---------------------------- | :------------------------------- | | Total shareholders' equity | 283.0 | 270.4 | 268.2 | | Net earnings (9 months) | 24.0 | 0.7 | N/A | | Cash dividends (9 months) | (10.2) | (10.0) | N/A | | Share-based compensation expense (9 months) | 4.1 | 3.1 | N/A | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows | Metric | Nine months ended May 31, 2020 ($ in millions) | Nine months ended May 31, 2019 ($ in millions) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Net cash provided by (used in) operating activities | 16.0 | (19.6) | | Net cash used in investing activities | (28.9) | (18.2) | | Net cash used in financing activities | (9.9) | (11.2) | | Cash and cash equivalents, end of period | 102.5 | 110.8 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Note 1 – Basis of Presentation](index=9&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) - The Company adopted ASU 2016-02 (Leases) in Q1 fiscal 2020, recognizing a right-of-use asset of **$26.2 million** and a lease liability of **$29.5 million**[25](index=25&type=chunk) - ASU No. 2016-13 (Credit Losses) will be effective in Q1 fiscal 2021 but is not expected to have a material impact[24](index=24&type=chunk) [Note 2 – Revenue Recognition](index=10&type=section&id=Note%202%20%E2%80%93%20Revenue%20Recognition) Total Operating Revenues by Segment | Segment | Three months ended May 31, 2020 ($ in millions) | Three months ended May 31, 2019 ($ in millions) | Nine months ended May 31, 2020 ($ in millions) | Nine months ended May 31, 2019 ($ in millions) | | :---------- | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Irrigation | 93.5 | 98.6 | 267.9 | 282.0 | | Infrastructure | 29.6 | 22.4 | 78.3 | 60.2 | | **Total** | **123.1** | **121.1** | **346.3** | **342.2** | - Contract liabilities increased to **$16.9 million** at May 31, 2020, from **$13.1 million** at May 31, 2019[31](index=31&type=chunk) - The Company recognized **$13.5 million** of revenue from advance payments for the nine months ended May 31, 2020, significantly up from **$0.8 million** in the prior year[31](index=31&type=chunk) [Note 3 – Acquisitions and Divestitures](index=10&type=section&id=Note%203%20%E2%80%93%20Acquisitions%20and%20Divestitures) - Acquired Net Irrigate, LLC on April 8, 2020, for **$4.5 million**, consisting of cash and an earn-out payment[32](index=32&type=chunk) - Sold an infrastructure manufacturing facility building in Q2 fiscal 2020 for **$3.9 million**, resulting in a **$1.2 million** gain[35](index=35&type=chunk) [Note 4 – Net Earnings per Share](index=11&type=section&id=Note%204%20%E2%80%93%20Net%20Earnings%20per%20Share) Net Earnings per Share | Metric | Three months ended May 31, 2020 | Three months ended May 31, 2019 | Nine months ended May 31, 2020 | Nine months ended May 31, 2019 | | :-------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Basic net earnings per share | $0.93 | $0.27 | $2.21 | $0.06 | | Diluted net earnings per share | $0.93 | $0.27 | $2.21 | $0.06 | - Certain stock options and restricted stock units were excluded from diluted EPS calculation due to their anti-dilutive effect (e.g., **115k stock options** for 3 months ended May 31, 2020)[37](index=37&type=chunk) [Note 5 – Income Taxes](index=12&type=section&id=Note%205%20%E2%80%93%20Income%20Taxes) Income Tax Expense (Benefit) | Period | Income Tax Expense (Benefit) ($ in millions) | | :-------------------------- | :------------------------------------------ | | Three months ended May 31, 2020 | 2.2 | | Three months ended May 31, 2019 | 0.3 | | Nine months ended May 31, 2020 | 6.4 | | Nine months ended May 31, 2019 | (0.8) | - The estimated annual effective income tax rate decreased to **23.6%** for the nine months ended May 31, 2020, from **42.6%** in 2019, primarily due to a change in earnings mix between U.S. and foreign operations[39](index=39&type=chunk) [Note 6 – Inventories](index=12&type=section&id=Note%206%20%E2%80%93%20Inventories) Inventories, Net | Category | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | August 31, 2019 ($ in millions) | | :-------------------------- | :---------------------------- | :---------------------------- | :------------------------------- | | Raw materials and supplies | 50.8 | 44.7 | 49.0 | | Work in process | 7.8 | 6.9 | 4.5 | | Finished goods and purchased parts, net | 59.5 | 47.7 | 46.8 | | Total inventory value before LIFO adjustment | 118.1 | 99.3 | 100.4 | | Less adjustment to LIFO value | (4.8) | (8.2) | (8.1) | | **Inventories, net** | **113.3** | **91.1** | **92.3** | [Note 7 – Long-Term Debt](index=12&type=section&id=Note%207%20%E2%80%93%20Long-Term%20Debt) Outstanding Principal Balances of Long-Term Debt | Debt Type | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | August 31, 2019 ($ in millions) | | :-------------------------- | :---------------------------- | :---------------------------- | :------------------------------- | | Series A Senior Notes | 115.0 | 115.0 | 115.0 | | Elecsys Series 2006A Bonds | 1.4 | 1.6 | 1.6 | | **Total debt** | **116.4** | **116.6** | **116.6** | | Less current portion | (0.2) | (0.2) | (0.2) | | Less unamortized debt issuance costs | (0.5) | (0.5) | (0.5) | | **Total long-term debt** | **115.7** | **115.9** | **115.8** | - Principal payments on debt due within 1 year are **$0.2 million**[42](index=42&type=chunk) [Note 8 – Financial Derivatives](index=13&type=section&id=Note%208%20%E2%80%93%20Financial%20Derivatives) Fair Values of Derivative Instruments | Derivative Type | Balance sheet location | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | August 31, 2019 ($ in millions) | | :-------------------------------- | :----------------------- | :---------------------------- | :---------------------------- | :------------------------------- | | Foreign currency forward contracts (hedging) | Other current assets | — | 0.5 | 1.1 | | Foreign currency option contracts (non-hedging) | Other current assets | 0.9 | 0.0 | 0.0 | | Foreign currency forward contracts (non-hedging) | Other current liabilities | (0.5) | (0.0) | — | - For the nine months ended May 31, 2020, settled foreign currency forward contracts (net investment hedges) resulted in an after-tax net gain of **$1.1 million**[44](index=44&type=chunk) - At May 31, 2020, the Company had no foreign currency forward contracts qualifying as a hedge of a net investment in foreign operations[45](index=45&type=chunk) [Note 9 – Leases](index=14&type=section&id=Note%209%20%E2%80%93%20Leases) Operating Lease Costs and Information | Metric | Three months ended May 31, 2020 ($ in millions) | Nine months ended May 31, 2020 ($ in millions) | | :-------------------------------- | :----------------------------------------------- | :---------------------------------------------- | | Operating lease cost | 1.5 | 4.4 | | Variable lease cost | 0.1 | 0.3 | | **Total lease cost** | **1.6** | **4.7** | | Operating cash outflows from operating leases | 1.2 | 4.0 | | Weighted average lease term | 9.2 years | 9.2 years | | Weighted average discount rate | 3.2% | 3.2% | Operating Lease Balance Sheet Information (May 31, 2020) | Classification | Amount ($ in millions) | | :-------------------------- | :---------------------- | | Operating lease ROU assets | 27.7 | | Operating lease short-term liabilities | 5.0 | | Operating lease long-term liabilities | 26.3 | | **Total lease liabilities** | **31.4** | [Note 10 – Fair Value Measurements](index=15&type=section&id=Note%2010%20%E2%80%93%20Fair%20Value%20Measurements) Financial Assets and Liabilities Measured at Fair Value (May 31, 2020) | Category | Level 1 ($ in millions) | Level 2 ($ in millions) | Level 3 ($ in millions) | Total ($ in millions) | | :-------------------------- | :----------------------- | :----------------------- | :----------------------- | :--------------------- | | Cash and cash equivalents | 102.5 | — | — | 102.5 | | Marketable securities: Corporate bonds | — | 14.6 | — | 14.6 | | Marketable securities: U.S. treasury securities | — | 4.5 | — | 4.5 | | Derivative assets | — | 0.9 | — | 0.9 | | Derivative liabilities | — | (0.5) | — | (0.5) | | Earn-out liability | — | — | 1.2 | 1.2 | - Approximately **67%** of the Company's marketable securities investments mature within one year, and **33%** mature within one to three years[58](index=58&type=chunk) [Note 11 – Commitments and Contingencies](index=16&type=section&id=Note%2011%20%E2%80%93%20Commitments%20and%20Contingencies) - The Company is defending multiple product liability lawsuits related to its X-Lite® end terminal, including a lawsuit filed by the Missouri Highways and Transportation Commission (MHTC) on June 9, 2020, alleging defective design and failure to warn[61](index=61&type=chunk)[62](index=62&type=chunk) - The Department of Justice is investigating the Company regarding the X-Lite® end terminal and potential violations of the federal civil False Claims Act, which could have a material adverse effect[65](index=65&type=chunk) Environmental Remediation Liabilities | Category | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | August 31, 2019 ($ in millions) | | :-------------------------- | :---------------------------- | :---------------------------- | :------------------------------- | | Other current liabilities | 1.2 | 1.2 | 1.2 | | Other noncurrent liabilities | 14.3 | 14.9 | 14.7 | | **Total environmental remediation liabilities** | **15.4** | **16.1** | **15.9** | [Note 12 – Warranties](index=17&type=section&id=Note%2012%20%E2%80%93%20Warranties) Product Warranty Accrual Balance | Metric | Three months ended May 31, 2020 ($ in millions) | Three months ended May 31, 2019 ($ in millions) | Nine months ended May 31, 2020 ($ in millions) | Nine months ended May 31, 2019 ($ in millions) | | :-------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Product warranty accrual balance, beginning of period | 9.0 | 8.0 | 9.0 | 7.1 | | Liabilities accrued for warranties during the period | 2.7 | 2.6 | 6.4 | 5.5 | | Warranty claims paid during the period | (2.0) | (2.0) | (5.6) | (4.3) | | Changes in estimates | 0.1 | 0.0 | 0.1 | 0.4 | | **Product warranty accrual balance, end of period** | **9.8** | **8.7** | **9.8** | **8.7** | [Note 13 – Share-Based Compensation](index=17&type=section&id=Note%2013%20%E2%80%93%20Share-Based%20Compensation) Share-Based Compensation Expense | Period | Share-Based Compensation Expense ($ in millions) | | :-------------------------- | :---------------------------------------------- | | Three months ended May 31, 2020 | 1.5 | | Three months ended May 31, 2019 | 0.8 | | Nine months ended May 31, 2020 | 4.1 | | Nine months ended May 31, 2019 | 3.2 | [Note 14 – Other Current Liabilities](index=18&type=section&id=Note%2014%20%E2%80%93%20Other%20Current%20Liabilities) Other Current Liabilities | Category | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | August 31, 2019 ($ in millions) | | :-------------------------- | :---------------------------- | :---------------------------- | :------------------------------- | | Compensation and benefits | 17.1 | 13.5 | 14.0 | | Contract liabilities | 16.0 | 11.7 | 14.8 | | Warranties | 9.8 | 8.7 | 9.0 | | Tax related liabilities | 6.7 | 2.1 | 1.5 | | Operating lease liabilities | 5.0 | — | — | | Deferred revenue - lease | 3.5 | 0.2 | 3.0 | | Dealer related liabilities | 3.5 | 3.7 | 3.2 | | Accrued insurance | 1.5 | 1.6 | 1.5 | | Accrued environmental liabilities | 1.2 | 1.2 | 1.2 | | Other | 7.3 | 6.4 | 4.4 | | **Total other current liabilities** | **71.7** | **49.1** | **52.5** | [Note 15 – Share Repurchases](index=18&type=section&id=Note%2015%20%E2%80%93%20Share%20Repurchases) - No shares were repurchased during the three and nine months ended May 31, 2020 and 2019[72](index=72&type=chunk) - The remaining amount available under the share repurchase program was **$63.7 million** as of May 31, 2020[72](index=72&type=chunk) [Note 16 – Industry Segment Information](index=18&type=section&id=Note%2016%20%E2%80%93%20Industry%20Segment%20Information) - The Company operates in two reportable segments: Irrigation (manufacturing and marketing of irrigation systems and technology solutions) and Infrastructure (manufacturing and marketing of road safety equipment, steel tubing, and railroad structures)[74](index=74&type=chunk)[76](index=76&type=chunk) Segment Operating Revenues and Income | Segment | Three months ended May 31, 2020 ($ in millions) | Three months ended May 31, 2019 ($ in millions) | Nine months ended May 31, 2020 ($ in millions) | Nine months ended May 31, 2019 ($ in millions) | | :-------------------------- | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | **Operating Revenues:** | | | | | | Irrigation | 93.5 | 98.6 | 267.9 | 282.0 | | Infrastructure | 29.6 | 22.4 | 78.3 | 60.2 | | **Total Operating Revenues** | **123.1** | **121.1** | **346.3** | **342.2** | | **Operating Income:** | | | | | | Irrigation | 15.0 | 11.0 | 34.4 | 26.3 | | Infrastructure | 8.6 | 3.5 | 23.7 | 7.3 | | Corporate | (7.7) | (10.1) | (21.3) | (31.5) | | **Total Operating Income** | **15.8** | **4.5** | **36.7** | **2.1** | Total Assets by Segment (May 31, 2020) | Segment | Total Assets ($ in millions) | | :---------- | :---------------------------- | | Irrigation | 313.2 | | Infrastructure | 105.8 | | Corporate | 138.4 | | **Total** | **557.5** | [ITEM 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial performance, condition, and outlook, including COVID-19 impact, operating results, liquidity, and capital resources [Concerning Forward-Looking Statements](index=20&type=section&id=Concerning%20Forward-Looking%20Statements) - The report contains forward-looking statements, for which the Company claims protection under the Private Securities Litigation Reform Act of 1995[78](index=78&type=chunk) - Readers are advised not to place undue reliance on forward-looking statements, as actual results may differ materially due to various risks and uncertainties detailed in the Company's 10-K and 10-Q filings[78](index=78&type=chunk) [COVID-19 Impact](index=20&type=section&id=COVID-19%20Impact) - The Company's facilities have generally remained open as 'business essential' during the COVID-19 pandemic, resulting in limited impact on manufacturing operations to date[79](index=79&type=chunk) - For the three months ended May 31, 2020, COVID-19 caused approximately **$14.0 million** in shipment and project delays, but associated costs were not material[79](index=79&type=chunk) - The ultimate financial impact of COVID-19 remains uncertain and depends on evolving factors such as the outbreak's duration, government actions, and changes in customer demand[80](index=80&type=chunk) [Accounting Policies](index=20&type=section&id=Accounting%20Policies) - There were no changes in the Company's critical accounting policies during the nine months ended May 31, 2020[83](index=83&type=chunk) [Recent Accounting Guidance](index=21&type=section&id=Recent%20Accounting%20Guidance) - Refer to Note 1 – Basis of Presentation for details on recent accounting guidance adopted and not yet adopted[84](index=84&type=chunk) [Executive Overview and Outlook](index=21&type=section&id=Executive%20Overview%20and%20Outlook) Q3 Fiscal 2020 Key Financial Highlights | Metric | Three months ended May 31, 2020 | Change YoY | | :-------------------------- | :------------------------------ | :--------- | | Operating revenues | $123.1 million | +2% | | Net earnings | $10.1 million | +248% | | Diluted EPS | $0.93 | +244% | - Net earnings for the three months ended May 31, 2019, were reduced by **$2.6 million** (**$0.23 diluted EPS**) due to non-recurring 'Foundation for Growth' initiative costs[86](index=86&type=chunk) - The backlog of unshipped orders increased to **$78.6 million** at May 31, 2020, from **$52.5 million** at May 31, 2019[91](index=91&type=chunk) - Long-term growth is supported by global drivers such as population growth, expanded food production, efficient water use, and infrastructure expansion, with significant opportunities in international markets[92](index=92&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) [For the Three Months ended May 31, 2020 compared to the Three Months ended May 31, 2019](index=23&type=section&id=For%20the%20Three%20Months%20ended%20May%2031,%202020%20compared%20to%20the%20Three%20Months%20ended%20May%2031,%202019) Consolidated Financial Performance (Three Months) | Metric | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | % Change | | :-------------------------- | :---------------------------- | :---------------------------- | :------- | | Operating revenues | 123.1 | 121.1 | 2% | | Gross profit | 39.7 | 30.0 | 32% | | Gross margin | 32.2% | 24.8% | +7.4 pp | | Operating expenses | 23.9 | 25.5 | -6% | | Operating income | 15.8 | 4.5 | 254% | | Operating margin | 12.9% | 3.7% | +9.2 pp | - Irrigation segment revenues decreased **5%** to **$93.5 million**, primarily due to lower North America unit volume and unfavorable foreign currency translation (**$3.5 million**) and COVID-19 related shipment delays (**$2.0 million**) internationally[95](index=95&type=chunk)[96](index=96&type=chunk) - Infrastructure segment revenues increased **32%** to **$29.6 million**, driven by higher Road Zipper System® sales and lease revenues, despite **$12.0 million** in COVID-19 related project delays[97](index=97&type=chunk) - Operating expenses decreased by **$1.7 million**, or **6%**, primarily due to the non-recurrence of **$3.9 million** in 'Foundation for Growth' initiative costs from the prior year[99](index=99&type=chunk) [For the Nine Months ended May 31, 2020 compared to the Nine Months ended May 31, 2019](index=25&type=section&id=For%20the%20Nine%20Months%20ended%20May%2031,%202020%20compared%20to%20the%20Nine%20Months%20ended%20May%2031,%202019) Consolidated Financial Performance (Nine Months) | Metric | May 31, 2020 ($ in millions) | May 31, 2019 ($ in millions) | % Change | | :-------------------------- | :---------------------------- | :---------------------------- | :------- | | Operating revenues | 346.3 | 342.2 | 1% | | Gross profit | 107.2 | 83.1 | 29% | | Gross margin | 31.0% | 24.3% | +6.7 pp | | Operating expenses | 70.4 | 81.1 | -13% | | Operating income | 36.7 | 2.1 | 1688% | | Operating margin | 10.6% | 0.6% | +10.0 pp | | Net earnings | 24.0 | 0.7 | 3481% | - Irrigation segment revenues decreased **5%** to **$267.9 million**, primarily due to lower international project activity and **$5.6 million** unfavorable foreign currency translation[106](index=106&type=chunk) - Infrastructure segment revenues increased **30%** to **$78.3 million**, driven by higher Road Zipper System® sales and lease revenues and increased road safety product sales[107](index=107&type=chunk) - Gross profit for the nine months ended May 31, 2020, included a **$1.2 million** gain on the sale of a building held for sale[108](index=108&type=chunk) - Operating expenses decreased by **$10.6 million**, or **13%**, mainly due to the non-recurrence of **$13.2 million** in 'Foundation for Growth' initiative costs from the prior year[109](index=109&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash, cash equivalents, and marketable securities totaled **$121.5 million** at May 31, 2020[112](index=112&type=chunk) - Net cash provided by operating activities was **$16.0 million** for the nine months ended May 31, 2020, a significant improvement from cash used of **$19.6 million** in the prior year[114](index=114&type=chunk) - Cash used in investing activities increased to **$28.9 million** for the nine months ended May 31, 2020, primarily due to purchases of marketable securities, partially offset by proceeds from asset sales and decreased capital expenditures[116](index=116&type=chunk) [Capital Allocation Plan](index=27&type=section&id=Capital%20Allocation%20Plan) - Capital expenditures for fiscal 2020 are expected to be between **$15.0 million** and **$20.0 million**[118](index=118&type=chunk) - The Company paid a quarterly cash dividend of **$0.32 per common share** in Q3 fiscal 2020, up from **$0.31** in Q3 fiscal 2019[119](index=119&type=chunk) - No shares were repurchased during the nine months ended May 31, 2020 or 2019, with **$63.7 million** remaining available under the repurchase program[120](index=120&type=chunk) [Long-Term Borrowing Facilities](index=27&type=section&id=Long-Term%20Borrowing%20Facilities) - The Company has **$115.0 million** in Series A Senior Notes outstanding, due February 19, 2030, with a fixed annual interest rate of **3.82%**[121](index=121&type=chunk) - A **$50.0 million** unsecured Revolving Credit Facility with Wells Fargo expires May 31, 2022, with no outstanding borrowings at May 31, 2020[122](index=122&type=chunk) - The Company was in compliance with all financial loan covenants under its credit arrangements as of May 31, 2020[124](index=124&type=chunk) [Contractual Obligations and Commercial Commitments](index=28&type=section&id=Contractual%20Obligations%20and%20Commercial%20Commitments) - There have been no material changes in the Company's contractual obligations and commercial commitments since the Annual Report on Form 10-K for the fiscal year ended August 31, 2019[126](index=126&type=chunk) [ITEM 3 – Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=ITEM%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to previous filings for disclosures on market risk, indicating no material changes in the current period - There have been no material changes from the Company's quantitative and qualitative disclosures about market risk previously disclosed in its most recent Annual Report on Form 10-K[127](index=127&type=chunk) [ITEM 4 – Controls and Procedures](index=28&type=section&id=ITEM%204%20%E2%80%93%20Controls%20and%20Procedures) This section addresses the effectiveness of the company's disclosure controls and procedures, noting a material weakness and ongoing remediation efforts - The Company's disclosure controls and procedures were deemed ineffective as of May 31, 2020, due to a material weakness related to ineffective internal control over indirect tax credits in a foreign jurisdiction[128](index=128&type=chunk)[129](index=129&type=chunk) - Remediation efforts, including the implementation of new controls for tax credit valuation, are ongoing and expected to be completed during fiscal 2020[130](index=130&type=chunk) - There have been no significant changes to the Company's internal control over financial reporting during the last fiscal quarter[131](index=131&type=chunk) Part II – OTHER INFORMATION [ITEM 1 – Legal Proceedings](index=29&type=section&id=ITEM%201%20%E2%80%93%20Legal%20Proceedings) This section refers to Note 11 for detailed information on legal proceedings, including product liability lawsuits and an environmental remediation investigation - Refer to Note 11 – Commitments and Contingencies for disclosure on legal proceedings[132](index=132&type=chunk) [ITEM 1A – Risk Factors](index=29&type=section&id=ITEM%201A%20%E2%80%93%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K and prior Quarterly Report on Form 10-Q - No material changes from risk factors previously disclosed in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the fiscal quarter ended February 29, 2020[133](index=133&type=chunk) [ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=ITEM%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms that there were no unregistered sales of equity securities or use of proceeds during the reporting period - None[134](index=134&type=chunk) [ITEM 3 – Defaults Upon Senior Securities](index=29&type=section&id=ITEM%203%20%E2%80%93%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - None[135](index=135&type=chunk) [ITEM 4 – Mine Safety Disclosures](index=29&type=section&id=ITEM%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Company - Not applicable[136](index=136&type=chunk) [ITEM 5 – Other Information](index=29&type=section&id=ITEM%205%20%E2%80%93%20Other%20Information) This section states that there is no other information to report - None[137](index=137&type=chunk) [ITEM 6 – Exhibits](index=30&type=section&id=ITEM%206%20%E2%80%93%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate documents, certifications, and interactive data files - Exhibits include certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[139](index=139&type=chunk) - Interactive Data Files are provided in Inline Extensible Business Reporting Language (Inline XBRL)[139](index=139&type=chunk) [SIGNATURES](index=31&type=section&id=SIGNATURES) This section contains the official signatures for the Form 10-Q filing - The report was signed on July 2, 2020, by Brian L. Ketcham, Senior Vice President and Chief Financial Officer[143](index=143&type=chunk)

Lindsay Corporation (NYSE:LNN) Q3 2020 Earnings Conference Call July 2, 2020 11:00 AM ET Company Participants Tim Hassinger - President and CEO Brian Ketcham - SVP and CFO Conference Call Participants Nathan Jones - Stifel Nicolaus Joseph Mondillo - Sidoti & Co. Brian Drab - William Blair Chris Shaw - Monness Crespi Jon Braatz - KCCA Operator Good morning. My name is Eric, and I will be your conference operator for today. At this time, I'd like to welcome everybody to Lindsay Corporation Third Quarter Fisca ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 29, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-13419 Lindsay Corporation (Exact name of registrant as specified in its charter) Delaware 47-0554096 (State or other jurisdiction of incorporat ...