8-K
LINDSAY CORP NYSE US false 0000836157 0000836157 2020-10-22 2020-10-22

 

 

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.  ☐

 

 

 


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 fourth quarter 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 at 11:00 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, including Exhibits 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 of Section 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 it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth 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 the undersigned 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

 

LOGO

  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 Elsherbini
Senior Vice President & Chief Financial Officer    972-458-8000
402-827-6579   

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 infrastructure equipment 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 million in 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 the Foundation 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 million in 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 diluted share, in the prior year. Net earnings for the prior year adjusted to eliminate costs associated with the Foundation for Growth initiative and a valuation adjustment 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 execution of our large Road Zipper® project with Highways England in the U.K.,” said Tim Hassinger, President and Chief Executive Officer. “I am proud of the Lindsay team for achieving our 2020 operating margin goal, especially given the additional market challenges presented by the coronavirus pandemic. We achieved 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 million in 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. The decrease resulted primarily from lower engineering services revenue related to a project in the prior year that did not repeat. An increase in irrigation equipment 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 which were 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 the prior year fourth quarter. Operating margin in the current year fourth quarter was negatively impacted by expense of approximately $1.6 million, related to an 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 with Highways 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 fourth quarter. Operating margin improvement resulted primarily from increased sales in higher margin product lines and from improved cost and pricing performance.

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 are amounts 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 expanded Coronavirus Food Assistance Program have raised estimates for U.S. farm income,” said Mr. Hassinger. “This supports an improved outlook for North America irrigation equipment demand for the fall selling season. We expect growth in international irrigation led by continued momentum in Brazil and other markets as well as new agricultural development being driven by heightened food security concerns as a result of the global coronavirus pandemic.”

Mr. Hassinger added, “Our infrastructure business achieved a record year in fiscal 2020, in large part due to our success in implementing the “shift left” strategy to expand our addressable market for Road Zipper® systems. We continue to be encouraged by the execution of this strategy, which has resulted 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 in the call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 internationally, and requesting the Lindsay Corporation call. Additionally, the conference call 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 of the conference call will remain on our Web site through the next quarterly earnings release. The Company will have a slide presentation available to augment 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 and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic® center pivot and lateral move agricultural irrigation systems and FieldNET® remote irrigation management and scheduling technology, as well as irrigation consulting and design and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems®, Road Zipper® and Snoline brands. For more information 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 and estimates of future economic circumstances, industry conditions, Company performance and financial results. 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 Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations and planned financing of the Company and 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-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking information contained in this press release.

 

2


LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

 

     Three Months Ended August 31,     Years Ended August 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
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

   $ 14,674     $ 1,503     $ 38,629     $ 2,172  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 1.35     $ 0.14     $ 3.57     $ 0.20  

Diluted

   $ 1.35     $ 0.14     $ 3.56     $ 0.20  

Shares used in computing earnings per share:

        

Basic

     10,835       10,786       10,823       10,781  

Diluted

     10,880       10,817       10,861       10,810  

Cash dividends declared per share

   $ 0.32     $ 0.31     $ 1.26     $ 1.24  

 

3


LINDSAY CORPORATION AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Unaudited)

 

     Three months ended     Twelve months ended  

(in thousands)

   August 31,
2020
    August 31,
2019
    August 31,
2020
    August 31,
2019
 

Operating revenues:

        

Irrigation:

        

North America

   $ 39,757     $ 41,509     $ 218,954     $ 218,627  

International

     35,824       27,995       124,575       132,871  
  

 

 

   

 

 

   

 

 

   

 

 

 

Irrigation total

     75,581       69,504       343,529       351,498  

Infrastructure

     52,824       32,381       131,163       92,574  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

   $ 128,405     $ 101,885     $ 474,692     $ 444,072  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income:

        

Irrigation

   $ 5,829     $ 3,463     $ 40,214     $ 29,804  

Infrastructure

     20,085       9,340       43,771       16,599  

Corporate

     (8,458     (8,743     (29,783     (40,288
  

 

 

   

 

 

   

 

 

   

 

 

 

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 as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, 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 end terminals, and road marking and road safety equipment.

 

4


LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED 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  
  

 

 

   

 

 

 

Total current liabilities

     102,395       82,131  
  

 

 

   

 

 

 

Pension benefits liabilities

     6,374       6,029  

Long-term debt

     115,682       115,846  

Operating lease liabilities

     25,862       —    

Deferred income tax liabilities

     889       872  

Other noncurrent liabilities

     20,806       27,227  
  

 

 

   

 

 

 

Total liabilities

     272,008       232,105  
  

 

 

   

 

 

 

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  
  

 

 

   

 

 

 

 

5


LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Years Ended August 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  
  

 

 

   

 

 

 

 

6


LINDSAY CORPORATION AND SUBSIDIARIES

RECONCILIATION 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 business divestitures, associated with the Company’s Foundation for Growth Initiative (“FFG costs”), and (2) a valuation adjustment for indirect tax credits in a foreign jurisdiction (“valuation adjustment”), (b) the impact on operating income of FFG costs and the valuation adjustment, and (c) the impact on segment operating income of FFG costs and the valuation adjustment. Management believes adjusted net earnings, adjusted diluted earnings per share and adjusted operating income are important indicators of the Company’s business performance because they exclude items that may not be indicative of, or may be unrelated to, the Company’s underlying operating results, and provide a useful baseline for analyzing trends in the business. Non-GAAP measures 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 and operating income. These non-GAAP financial measures reflect an additional way of viewing the Company’s operations that, when viewed with the GAAP results and the following reconciliations to the corresponding GAAP financial measures, management believes provides a more complete understanding of the Company’s business.

 

     Three months ended      Twelve months ended  

(in thousands, except per share amounts)

   August 31,
2019
     Diluted earnings per
share
     August 31,
2019
     Diluted earnings per
share
 

Net earnings - reported GAAP measure

   $ 1,503      $ 0.14      $ 2,172      $ 0.20  

FFG costs - pre-tax

     1,947        0.18        15,113        1.40  

Valuation adjustment - pre-tax

     2,795        0.26        2,795        0.26  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total adjustments

     4,742        0.44        17,908        1.66  

Tax effect of adjustments*

     (428      (0.04      (4,454      (0.41
  

 

 

    

 

 

    

 

 

    

 

 

 

Net earnings - adjusted

   $ 5,817      $ 0.54      $ 15,626      $ 1.45  
  

 

 

    

 

 

    

 

 

    

 

 

 

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       —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income

   $ 8,802     $ 6,258     $ 9,340     $ (6,796
  

 

 

   

 

 

   

 

 

   

 

 

 

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  
  

 

 

   

 

 

   

 

 

   

 

 

 
     Twelve months ended August 31, 2019  

Operating income reconciliation

   Consolidated     Irrigation     Infrastructure     Corporate  

Operating income - reported GAAP measure

   $ 6,115     $ 29,804     $ 16,599     $ (40,288

FFG costs

     15,113       676       188       14,249  

Valuation adjustment

     2,795       2,795       —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income

   $ 24,023     $ 33,275     $ 16,787     $ (26,039
  

 

 

   

 

 

   

 

 

   

 

 

 

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  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

7

Slide 1

4th Quarter Fiscal 2020 Earnings Slide Deck Exhibit 99.2


Slide 2

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 Exchange Commission. Investors should understand that a number of factors could cause future economic and industry conditions, and the Company’s actual financial condition and results of operations, to differ materially from management’s beliefs expressed in the forward-looking statements contained in this presentation. These factors include but are not limited to those outlined in the “Risk Factors” sections of the Company’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission and the Company’s quarterly report on Form 10-Q for the fiscal quarter ended February 29, 2020, and investors are urged to review these factors when considering the forward-looking statements contained in this presentation. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For full financial statement information, please see the Company’s earnings release dated October 22, 2020.


Slide 3

Fourth Quarter Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of presentation. Revenue Operating Income Diluted EPS Revenues increased $26.5 million compared to prior year Irrigation increased $6.1 million Infrastructure increased $20.4 million Operating income increased $8.7 million compared to adjusted prior year results* Irrigation decreased $0.5 million including negative impact of additional expenses of $1.6 million Infrastructure increased $10.8 million Corporate expense increased $1.6 million due mainly to incremental incentive expense GAAP Adjusted* GAAP Adjusted* Amounts in millions, except per share amounts FY19 FY20 FY19 FY20


Slide 4

Fiscal 2020 Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of presentation. Revenue Operating Income Diluted EPS Revenues increased $30.6 million compared to prior year Irrigation decreased $8.0 million Infrastructure increased $38.6 million Operating income increased $30.2 million compared to adjusted prior year results* Irrigation increased $6.9 million Infrastructure increased $27.0 million Corporate expense increased $3.7 million due mainly to incremental incentive expense GAAP Adjusted* GAAP Adjusted* Amounts in millions, except per share amounts FY19 FY20 FY19 FY20


Slide 5

Fourth Quarter and FY20 Financial Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of presentation.


Slide 6

Current Market Factors Global commodity prices declined significantly earlier in the year as a result of the COVID-19 pandemic but have recently recovered as the demand environment has improved and production estimates from the U.S. harvest have declined. 2020 Net Farm Income is projected by the USDA to be $102.7 billion, an increase of 22.7% from 2019. The increase is coming primarily from higher Federal government direct farm program payments. Under the U.S.-China Phase 1 trade deal, China pledged to increase purchases of U.S. agricultural products by $32 billion over two years. Year-to-date exports to China have increased over the prior year but remain below commitments in the trade deal. Ethanol demand has improved since falling earlier in the year but remains lower than a year ago. Food security has become an increased concern in certain international markets. Irrigation Infrastructure The five-year $305 billion U.S. highway bill enacted in December 2015 (the “FAST Act”) was set to expire September 30, however Congress and the Administration have approved the Continuing Appropriations Act, which extended the FAST Act for one year. This provides funding certainty for road and bridge projects over this period. Construction activity has slowed globally because of the COVID-19 pandemic. Our “shift left” strategy continues to gain traction in increasing the addressable market for Road Zipper System® sales and lease opportunities. States continue the transition to new federal MASH testing standards for road safety products. Almost all our road safety product offerings in the U.S. have now received MASH eligibility but are pending approval in certain states.


Slide 7

Irrigation Segment – Fourth Quarter Summary 7 North America revenue decreased $1.7 million Engineering services project in prior year did not repeat Increase in irrigation equipment unit volume Higher sales of replacement parts Lower average selling prices International revenue increased $7.8 million Higher sales volumes in Brazil, Australia and the Middle East Unfavorable currency impact of $3.4 million Operating income decreased $0.5 million compared to adjusted prior year results* Additional expenses of $1.6 million related to an increase in the environmental remediation liability and severance costs Excluding these additional expenses, operating margin was 9.8% Revenue Operating Income GAAP Adjusted* North America International FY19 FY20 FY19 FY20 *Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of presentation. Amounts in millions


Slide 8

Infrastructure Segment – Fourth Quarter Summary Total revenue increased $20.4 million Increase in Road Zipper System® sales Highways England project Japan barrier order Road safety products revenue comparable to prior year Impact of COVID-19-related delays were mitigated by pulling forward other projects Operating income increased $10.8 million and operating margin increased to 38.0% Positive mix impact from higher-margin Road Zipper System sales Improved cost and pricing performance Revenue Operating Income GAAP Adjusted* FY19 FY20 FY19 FY20 *Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of presentation. Amounts in millions


Slide 9

COVID-19 Update Innovative Market Leader – Sustainable Solutions Lindsay’s products and technologies support the following critical infrastructure sectors as defined by the Department of Homeland Security (CISA.gov) and other global government agencies: Food and Agriculture – our irrigation business supports the production of food and the conservation of water and energy Transportation Systems – our infrastructure business supports the movement of people and goods efficiently, safely and securely Lindsay’s production facilities are considered “business essential” and will remain operational as long as we 1) have demand for our products, 2) are allowed to remain open by local governments, and 3) can provide for the safety of our employees. At the present time, all of our facilities are operational. Other potential business impacts associated with COVID-19 include but are not limited to: additional facility closures and the duration of such closures, supply chain disruption and additional costs, logistics delays, border closures, workforce disruption, reduced demand for our products and services, delay in the implementation of projects and other effects that may result from a general economic downturn. Lindsay is well positioned with a strong balance sheet and sufficient liquidity as we face the uncertainty and challenges presented by the COVID-19 pandemic. As of August 31, 2020 we have: Available liquidity of $190.9 million, with $140.9 million in cash, cash equivalents and marketable securities and $50.0 million available under revolving credit facility Total debt of $115.9 million, of which $115.0 million matures in 2030 A funded debt to EBITDA leverage ratio (as defined in our credit agreements) of 1.5 compared to a covenant limit of 3.0


Slide 10

COVID-19 Protocols in Place Innovative Market Leader – Sustainable Solutions Protecting the health and well-being of our employees is a top priority, as is maintaining frequent communication and providing important updates. Since the outset of the pandemic, we have: Created a global task force and communication strategy Implemented social distancing protocols Initiated remote work strategy for employees not essential to factory operations Restricted domestic and international travel for business-essential purposes Completed an electrostatic spray deep clean at our global headquarters Placed certain limitations on visitors to all our facilities Conducted screening questionnaires for all facility visitors Increased frequency and intensity of disinfecting all high-touch areas Implemented temperature checks at facilities in high risk locations Implemented staggered breaks in our factory operations Created a COVID-19 Manager at each facility to ensure rigid discipline of protocols Established protocols in the event of a confirmed COVID-19 diagnosis Implemented virtual or phone meeting protocols


Slide 11

Executing Long-Term Value Creation Innovative Market Leader – Sustainable Solutions Deepening customer relationships through technology differentiation Solutions and growth aligned to market megatrends…. designed to sustain and protect our evolving world Foundation for Growth initiative driving margin expansion Empowered global culture through Vision, Values and Behaviors Framework Innovative Market Leader – Sustainable Solutions ONE LINDSAY


Slide 12

Foundation for Growth Initiative Margin improvement Cost Strategy and Culture Objectives Raise operating margin floor Innovation leader in core markets Renewed culture and identity 1 2 3 4 5 6 Commercial Excellence Global Sourcing Manufacturing Optimization Lower G&A Expenses Cultural Changes Strategic Choices


Slide 13

Foundation for Growth Execution Accomplishments through Fiscal 2020 Divested four non-core businesses; acquired Net Irrigate, LLC ü Established a centralized sourcing & shared services organization ü Closed and sold an infrastructure facility; consolidated activity into an existing irrigation facility ü Achieved 1st quartile ranking in organizational health assessment ü Delivered 11.4% operating margin ü


Slide 14

Summary Balance Sheet


Slide 15

Summary of Cash Flow 15


Slide 16

Capital Allocation – Last 10 Years Allocation History Other includes debt repayments, net cash sources/uses from note receivables, net investment hedges, stock compensation and related tax benefits. Ending cash includes marketable securities Targeted cash balance of $60-75 million, including international accounts To support cyclical and seasonal fluctuations in working capital and projected capital expenditures $115 million in Senior Notes maturing on 2/19/30 at annual interest rate of 3.82% The Company’s prioritization for cash use: Organic growth initiatives Capital expenditures - expected to be $15-20 million in fiscal 2021 Dividend payments Synergistic acquisitions that leverage core capabilities Excess cash invested in opportunistic share repurchases Allocation Plan


Slide 17

Attractive Long-Term Megatrends Water Conservation Alternative Fuels Increase Yields Improve Road Safety Population Growth Advancing Technology


Slide 18

Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION 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 business divestitures, associated with the Company's Foundation for Growth Initiative ("FFG costs"), and (2) a valuation adjustment for indirect tax credits in a foreign jurisdiction (“valuation adjustment”), (b) the impact on operating income of FFG costs and the valuation adjustment, and (c) the impact on segment operating income of FFG costs and the valuation adjustment. Management believes adjusted net earnings, adjusted diluted earnings per share and adjusted operating income are important indicators of the Company’s business performance because they exclude items that may not be indicative of, or may be unrelated to, the Company’s underlying operating results, and provide a useful baseline for analyzing trends in the business. Non-GAAP measures 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 and operating income. These non-GAAP financial measures reflect an additional way of viewing the Company’s operations that, when viewed with the GAAP results and the following reconciliations to the corresponding GAAP financial measures, management believes provides a more complete understanding of the Company’s business.


Slide 19

Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (Continued)