Lindsay(US:LNN)2024-10-24 19:36Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $155 million, a decrease of 7% compared to Q4 2023. Net earnings for the quarter were $12.7 million or $1.17 per diluted share, down from $19.2 million or $1.74 per diluted share in the prior year [7][8] - For the full fiscal year, total revenues were $607.1 million, a decrease of 10% compared to the previous year. Net earnings for fiscal 2024 were $66.3 million or $6.01 per diluted share, down from $72.4 million or $6.54 per diluted share in the prior year [7][8] Business Line Data and Key Metrics Changes - Irrigation segment revenues for Q4 were $125.9 million, a decrease of 12% year-over-year. North America irrigation revenues increased by 2% to $61.7 million, driven by higher unit sales volumes [8][9] - International irrigation revenues decreased by 23% to $64.2 million, primarily due to lower revenues in Brazil and other Latin American markets [9][10] - Infrastructure segment revenues for Q4 increased by 24% to $29.1 million, driven by higher Road Zipper System sales and lease revenues [11][12] Market Data and Key Metrics Changes - In North America, irrigation volume was slightly up due to storm damage replacement demand, while international markets, particularly Brazil, faced softness due to lower grower profitability [3][4] - The company anticipates continued demand challenges in Brazil and Latin America until farm profitability improves [4][10] Company Strategy and Development Direction - The company is focused on increasing U.S. infrastructure spending and expects positive near-term market opportunities driven by federal funding from the Infrastructure Investments and Jobs Act [5][12] - Investments in technology and innovation are prioritized, with a focus on growing recurring revenue streams from connected devices [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the irrigation market outlook, noting potential headwinds unless there is a significant improvement in net farm income in 2025 [3][4] - The company is actively managing its project pipeline and expects to see growth in international projects, particularly in the MENA region [6][12] Other Important Information - The company completed share repurchases totaling $22.5 million for the year, reflecting a commitment to returning capital to shareholders [13][14] - Total available liquidity at the end of Q4 was $240.9 million, including $190.9 million in cash and cash equivalents [13] Q&A Session Summary Question: Can you comment on the decremental margins for the quarter and the year? - Management indicated that the decremental margins were primarily related to the international irrigation business, with significant impacts from lower revenues in Brazil [15][16] Question: What is the revenue expectation for the Middle East project that started shipping in Q4? - Approximately $14 million was shipped in Q4, with an anticipated $80 million to be shipped throughout fiscal 2025 [17][18] Question: How do you expect the tax rate to trend in fiscal 2025? - The expected tax rate for fiscal 2025 is around 25%, influenced by shifts in income from various jurisdictions [24] Question: What is the outlook for the Road Zipper funnel? - The Road Zipper funnel is expected to grow, supported by federal funding and increased project activity [26][30] Question: Can you elaborate on the storm-related revenues? - Storm damage activity in Q4 was characterized as slightly above average, with expectations for continued demand due to recent hurricanes [34][36]