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May 31, 2020

Lindsay Q3 2020 Earnings Report

Lindsay Corporation's third quarter results for fiscal year 2020 were reported, featuring revenue growth and EPS improvement.

Key Takeaways

Lindsay Corporation reported a 2% increase in consolidated revenues to $123.1 million and an EPS of $0.93 for the third quarter of fiscal 2020. The results reflect successful execution of strategic priorities, although revenues were impacted by COVID-19 related shipment and project delays.

Consolidated revenues increased to $123.1 million, a 2% increase year-over-year.

EPS improved to $0.93, compared to $0.27 in the prior year.

COVID-19 related delays impacted revenues by approximately $14.0 million.

The company completed the acquisition of Net Irrigate, LLC, expanding the FieldNET® platform.

Total Revenue
$123M
Previous year: $121M
+1.7%
EPS
$0.93
Previous year: $0.5
+86.0%
Gross Profit
$39.7M
Previous year: $30M
+32.3%
Cash and Equivalents
$102M
Previous year: $111M
-7.5%
Free Cash Flow
$11.2M
Previous year: $11.7M
-4.2%
Total Assets
$557M
Previous year: $506M
+10.2%

Lindsay

Lindsay

Lindsay Revenue by Segment

Lindsay Revenue by Geographic Location

Forward Guidance

The company expects strong fourth quarter results in the infrastructure business, driven by the Highways England project and a large order in Japan. The outlook for fiscal year 2021 is dependent on commodity prices, farm income, export demand, and government support payments. Continued growth is expected in technology products and services.

Positive Outlook

  • Strong fourth quarter results expected in the infrastructure business.
  • Growth opportunities seen for Road Zipper Systems.
  • Continued growth expected in technology products and services.
  • Potential for additional demand in international markets due to food security concerns.
  • Highways England project and large order in Japan to drive infrastructure results.

Challenges Ahead

  • Uncertainty in North America irrigation equipment demand due to storm damage replacement and low commodity prices.
  • Demand outlook for fiscal 2021 dependent on commodity prices and farm income.
  • Export demand and government support payments could impact commodity prices and farm income.
  • Timing of additional demand in international markets remains uncertain.
  • COVID-19 related project delays impacting revenues.

Revenue & Expenses

Visualization of income flow from segment revenue to net income