Earnings Call Transcript - LNN Q4 2022

Operator, Operator

Good morning. My name is MJ, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindsay Corporation Fourth Quarter Fiscal Year 2022 Earnings Call. All participants will be in listen-only mode. After today’s presentation, there will be an opportunity to ask questions. During this call, management may make forward-looking statements that are subject to risks and uncertainties, which reflect management's current beliefs, estimates of future economic circumstances, industry conditions, company performance and financial results. Forward-looking statements include the information concerning possible or assumed future results of operation of the company and those statements preceded by, followed by or including the words expectation, outlook, could, may, should or similar expressions. For these statements, we claim the protection of the Safe Harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Please note this event is being recorded. I would now like to turn the call over to Mr. Randy Wood, President and Chief Executive Officer.

Randy Wood, President & CEO

Thank you and good morning, everyone. Welcome to our fourth quarter and full-year earnings call, and with me today is Brian Ketcham, our Chief Financial Officer. Fiscal 2022 was a dynamic year where we recognized record revenues and earnings per share. It was a year marked by robust demand in our global irrigation business, highlighted by tremendous growth in our international regions. In our infrastructure business, our teams demonstrated tremendous perseverance and finished the year strong, delivering two Road Zipper systems projects. We continue to make investments in our global footprint, and this has allowed us to take advantage of global market tailwinds in high growth markets, including Brazil and the Middle East. Despite inflationary pressures, logistics challenges, and supply chain shortages, we were able to prioritize investments this year to support the strong demand in our irrigation business to make sure products were available when our customers needed them the most. Navigating and rising above these challenges each day are our people, who are relentless in their pursuit to support our customers and our business around the world. We thank our teams for all they're doing to contribute to the success of our customers and our company. I'm very proud of the job they've done. In the area of sustainability, in July, we released the fourth edition of our annual environment social and governance or ESG report. This report highlights the progress we're making in establishing and meeting our goals in important areas that include investing in sustainable technologies; improving our operational footprint; empowering our people; engaging in our local communities; and operating with integrity. I'm encouraged by the progress we've made and look forward to continuing to provide solutions that address some of the world's most pressing issues. Turning to irrigation market conditions, the market continues to see a combination of factors impacting customer sentiment and business growth. In North America, commodity prices and net farm income are projected to remain strong. Droughts across broad geographies continue to highlight the opportunity for irrigated agriculture, and a strong storm season also drove demand in North America in our fourth quarter. Customers continue to deal with rising costs that include inputs, labor, and costs of capital. This will have some impact on market upside, but we would not expect this to create significant headwind at this time. In international markets, we see some of the same strong market fundamentals connected to global commodity prices and farm income having a positive impact in the mature markets that include Australia, New Zealand, Western Europe, and Brazil. Brazil continued to set shipping records, and our business there has more than doubled on a year-over-year basis. We continue to see project activity across Central Asia and the Middle East connected to food security. Our global manufacturing and commercial footprint allows us to participate and win these large projects around the world. Moving to infrastructure, macro indicators remain strong in the U.S. with the states having full access to the infrastructure bill funds. The increased funding has translated to state and local government contract awards increasing by 16% on a year-over-year basis. The purchasing power of this increase has been partially offset by the impact of inflation, which has required some projects to be delayed, rescoped, or rebid. We continue to actively manage the Road Zipper sales funnel and have returned to pre-pandemic travel and customer engagement levels. This has allowed us to start moving projects through the funnel and, as previously communicated, one project in the Northeast started shipping in the fourth quarter and will continue into the first quarter of 2023. I'll now turn the call over to Brian to review our fourth quarter and full-year financial results.

Brian Ketcham, CFO

Thank you, Randy, and good morning, everyone. Total revenues for the fourth quarter of fiscal 2022 increased 24% to $190.2 million, compared to $153.6 million in the same quarter last year. Net earnings for the quarter were $17.9 million or $1.62 per diluted share, compared to net earnings of $5.8 million or $0.53 per diluted share in the prior year. Total revenues for the full year of fiscal 2022 increased 36% to $770.7 million, compared to $567.6 million in the prior fiscal year. Net earnings for fiscal 2022 were $65.5 million or $5.94 per diluted share, compared to net earnings of $42.6 million or $3.88 per diluted share in the prior fiscal year. Irrigation segment revenues for the fourth quarter increased 20% to $150.5 million, compared to $125.3 million in the same quarter last year. North America irrigation revenues of $80.1 million increased 50%, compared to last year's fourth quarter. The increase in North America irrigation revenues resulted from a combination of higher irrigation equipment unit sales volume and higher average selling prices. Higher unit sales volumes resulted primarily from increased storm damage replacement demand, compared to the prior year fourth quarter. In international irrigation markets, revenues of $70.4 million were slightly lower, compared to last year's fourth quarter, and this includes unfavorable effects of foreign currency translation differences of approximately $3.5 million. Strong sales growth in Brazil, Europe, and other markets more than offset Egypt project sales of $17 million in the prior year that did not repeat. Total irrigation segment operating income for the fourth quarter was $24.2 million, an increase of 129%, compared to the prior year fourth quarter and operating margin was 16.1% of sales, compared to 8.4% of sales in the prior fourth quarter. The increase in operating income and operating margin resulted from higher unit sales volumes, improved price realization, and lower inflationary headwinds compared to the prior year fourth quarter. For the full fiscal year, total irrigation segment revenues increased 41% to $665.8 million, compared to $471.4 million in the prior year. North America irrigation revenues of $355.7 million increased 30%, compared to the prior year, and international irrigation revenues of $310.1 million increased 57%, compared to the prior year. Irrigation segment operating income for the full fiscal year was $105.8 million, an increase of 67%, compared to the prior year. And operating margin was 15.9% of sales, compared to 13.4% of sales in the prior fiscal year. Infrastructure segment revenues for the fourth quarter increased 40% to $39.7 million, compared to $28.4 million in the same quarter last year. The increase resulted from higher Road Zipper System project sales, which were partially offset by lower lease revenue, compared to the prior year. During the quarter, we delivered approximately $16 million of a $24 million barrier replacement project in Massachusetts and expect deliveries to continue in the first quarter of fiscal 2023. Infrastructure segment operating income for the fourth quarter increased 97% to $11.5 million, compared to $5.8 million in the same quarter last year. Infrastructure operating margin for the quarter was 28.8% of sales, compared to 20.5% of sales in the prior year. Improved current year results reflect the increase in Road Zipper System sales compared to the prior year fourth quarter. For the full fiscal year, infrastructure segment revenues increased 9% to $104.9 million, compared to $96.3 million in the prior year. Infrastructure operating income for the full fiscal year was $18.3 million, compared to $20.2 million in the prior year. And operating margin for the year was 17.5% of sales, compared to 21.0% of sales in the prior year. Results for the full year reflect a less favorable margin mix of revenues compared to the prior year, as well as the impact of under-absorbed fixed overhead costs in the first half of the current year. Turning to the balance sheet and liquidity, our total available liquidity at the end of the fiscal year was $166.5 million, with $116.5 million in cash, cash equivalents, and marketable securities, and $50 million available under our revolving credit facility. At the end of the fiscal year, we were well within the financial covenants of our borrowing facilities, including a gross funded debt-to-EBITDA leverage ratio of 1.0, compared to a covenant limit of 3.0. We are well positioned going forward to invest in growth opportunities that create value for our shareholders. At this time, I'd like to turn the call over to the operator to take your questions.

Operator, Operator

Thank you. We will now begin with the question-and-answer session. Today's first question comes from Nathan Jones of Stifel. Please go ahead.

Nathan Jones, Analyst

Good morning, everyone.

Brian Ketcham, CFO

Good morning, Nate.

Randy Wood, President & CEO

Hi, Nathan.

Nathan Jones, Analyst

I wanted to start off with a quick question about LIFO. Were there LIFO charges in the fourth quarter? I believe it was around $20 million for the full year in LIFO charges. Can you share any expectations for 2023, whether that would involve charges or income?

Brian Ketcham, CFO

Yes, Nathan, this is Brian. Looking at the fourth quarter compared to last year, we experienced about a $6 million negative impact from LIFO, with $5 million of that attributed to irrigation. In the first and second quarters of this year, we encountered some negative LIFO headwinds as well. However, in the third and fourth quarters, there has been very little, if any, benefit from LIFO primarily due to ongoing inflation. Although inflation has moderated, our inventory levels have not yet declined since the end of the second quarter, resulting in no LIFO impact in our fourth quarter. As we consider 2023, if we see continued deflation in raw materials or a decrease in inventory levels, we would anticipate experiencing some LIFO benefits, although it is difficult to predict the magnitude of that at this time.

Nathan Jones, Analyst

Could you just give us the aggregate number for the ‘22 LIFO charge?

Brian Ketcham, CFO

Yes. So for ‘22, it was $8.8 million in total.

Nathan Jones, Analyst

Okay. Thank you.

Brian Ketcham, CFO

With about $6 million of that being in irrigation.

Nathan Jones, Analyst

Okay. Next one I want to ask is on price costs. Coil steel prices come down pretty significantly, though some other types have remained elevated, breakups have come down, probably electronic and labor is still going up. Can you just talk about kind of what direction you are seeing your overall cost go on a net basis?

Brian Ketcham, CFO

Yes. To your point, I think the steel coil has fallen over the last several months. It still remains higher than it was in the fall of 2020. At that same time, over the last several months, structural steel continued to increase over that period of time. And as you mentioned, other components, electronics, as well as labor costs have increased. What I would say right now and kind of what we experienced in our fourth quarter is costs have stabilized for the time being. And our view going forward is we may continue to have some slight inflation. But overall, our cost outlook is stable, at least for the first half of the fiscal year.

Nathan Jones, Analyst

And just last one before I pass it on. Can you talk about the impact of price that you increased in ‘22 on 2023's revenue? What under level of growth you're expecting from carryover price?

Brian Ketcham, CFO

Yes. We expect in our first and second quarters to still have a little price benefit. I'd say first quarter maybe high single-digits, second quarter mid single-digits and then being relatively flat year-over-year as we lap the price increases from 2022. And that all depends also on what happens with raw material prices. But assuming a stable raw material pricing environment, that's kind of our outlook on the price impact going into 2023.

Nathan Jones, Analyst

Okay. Thanks very much, Brian.

Operator, Operator

The next question comes from Ryan Connors of Northcoast Research. Please go ahead.

Ryan Connors, Analyst

Hey, good morning. Thanks for taking my question.

Brian Ketcham, CFO

Good morning, Ryan.

Ryan Connors, Analyst

I wanted to apologize if I missed this. I know you discussed storm damage, but did you provide a quantification of the impact of the storm damage in the quarter?

Randy Wood, President & CEO

Yes, good morning, this is Randy. And I'll take that question. And we haven't broken it out, Ryan. But what we can say is it was up fairly significantly this year versus prior years. And we always have some storm damage and it's moved around from the Southeast to the Midwest in different years. There was some strong storm activity in the Midwest regions, but we haven't broken that out in terms of volume specifically.

Ryan Connors, Analyst

Okay, okay. And then is that generally a positive or a negative from a mix standpoint? I mean those would seem to be they want to replace those machines quickly. Is the pricing sort of normal for those? Or is it a little better than other orders?

Randy Wood, President & CEO

It's not a sales type where we attempt to get stronger pricing, I would say there's less competitive pressure on price in those purchase decisions because it's more about timing and how quickly can you get the machine delivered, installed, and get it irrigating again. So I would say pricing is normal, Ryan, but it's maybe less competitive just because timing is so important and price is less sensitive at that time.

Ryan Connors, Analyst

Got it. I wanted to ask about the issue of channel inventories. I know center pivots aren't necessarily held inventory by dealers, there's sort of more made to order. But in terms of parts and aftermarket supplies, there has been a lot of industrial companies talking about destocking cycles. Is there anything of note to mention there for you in terms of your parts and aftermarket product?

Randy Wood, President & CEO

In our view, there really isn't anything that would be substantial or drive a difference in our results, Ryan. Our dealers don't necessarily stock full machines. We do see some inventory go out in the summer months just so dealers have it on the shelf if they need to respond to storm damage very, very quickly. All of those machines, I would say, for the most part, have now been delivered and installed, but it shouldn't have a material impact on us going forward.

Ryan Connors, Analyst

Got it. And then one last one, more of a bigger picture question, but the whole issue of water scarcity, obviously, very front and center. And you've talked in the past about that being "good things" for you as long as it doesn't get too bad and water availability becomes an actual problem. Where do we stand on that spectrum of how bad that's gotten? And then also, if you could comment on some of these programs that have come out, I know the Department of Interior announced that program to actually pay farmers to reduce water consumption as part of that latest infrastructure bill. So if you can comment on that as well, that would be helpful.

Randy Wood, President & CEO

Sure. I'll take that one, Ryan. We're in the middle of our North American regional sales and strategy meetings now. So we spent the last several weeks kind of out with each of our dealers in the North American markets. We've got a similar meeting with our Europe, Middle East, Africa channel this week in Europe. So I think we've got a lot of really good, even if it's anecdotal feedback from our people in the field. And I think there are some markets, I would put kind of the Panhandle, West Texas and on that list right now where we've had customers that haven't been able to finish a crop. I know there have been some news stories on the impact on the cattle industry as well in that part of the world. That's maybe one where we've seen a lot of stress that could impact a winter wheat and it could impact purchase and planting decisions going into next spring. So that's the one that probably stands out where we see the greatest risk. In the other parts of the country that are pivot markets where we see drought, we're not quite at a point that there's a lack of water that's going to prevent them from planting and finishing a crop next year. But we've got to continue to watch that because this drought started in the West, it's moved steadily east. And if you look at the current drought map, it's got a lot of really deep red in the middle part of the country, that's a core market area for us. So right now, that's the one area there, West Texas, Panhandle Texas that we see the greatest risk. The rest of the markets we will continue to monitor. As far as government support goes, we've always benefited as an industry. And I think the government does recognize the importance of conserving and saving water and just a blanket statement really, any program that incents customers to consume less water while producing food, fiber, and fuel is going to be good for our business. They have consistently supported our industry because of the conservation benefits that we can create. So any dollar invested in that space is going to be good for us.

Ryan Connors, Analyst

Super. Hey thanks for your time this morning.

Randy Wood, President & CEO

Alright. Thank you, Ryan.

Operator, Operator

The next question comes from Brian Drab with William Blair. Please go ahead.

Brian Drab, Analyst

Hi, thank you for taking my questions. I would like to know if you can provide more details on the guidance. From what I gathered, it seems that you view the domestic irrigation market as strong but with some uncertainties. On the international front, it appears to be potentially stronger due to food security concerns. I'm unsure about the infrastructure segment; the infrastructure bill should be beneficial, but I wonder if you could elaborate on how it might impact fiscal 2023. Are there any additional Road Zipper projects planned? Any insights on growth rates in these segments or other comments on guidance would be appreciated.

Brian Ketcham, CFO

This is Brian. I'll address that. As we look at the domestic irrigation market, we see positive agricultural fundamentals, along with some impacts from drought. We expect demand to remain steady, with a slight increase during the first three quarters of the year. However, in the fourth quarter, given the storm damage we've experienced, we don't anticipate this trend to continue. Overall, we are looking at a year-over-year volume that may be relatively flat, though it's off a strong demand base. The variable will be pricing; fluctuations in raw material costs will impact pricing. However, we believe the pricing environment will be stable. On the international irrigation front, our key developed markets are expected to continue growing thanks to solid fundamentals. We need to address about $19 million in revenue from the Egypt order in the first two quarters. There is ongoing activity in project markets, but we can't predict if another large project will emerge like the one in Egypt. Nevertheless, we expect core markets to see growth in the single-digit range from a solid base. In the infrastructure sector, we have some carry-over from the large Massachusetts project into the next year. While we do not foresee a project of similar size next year, we do have several smaller to mid-sized projects lined up. On the leasing side, we anticipate an increase based on our current outlook, and road safety products should benefit from additional funding for infrastructure. Therefore, for our infrastructure business, we are projecting mid to upper single-digit growth for the next year.

Brian Drab, Analyst

Okay. That's all very helpful. Sorry, if there's an echo. I wasn't here on the call, and I'm hearing it again. But just a couple of follow-up questions. International, because if the core markets were up single-digits. Does that mean that international irrigation might be down actually given the tough comp with Egypt?

Brian Ketcham, CFO

I think that might be the case if we didn't have another project like Egypt. Based on the current activity, we expect to see additional projects like that. However, it's difficult to predict the timing. There was $19 million from Egypt in the first two quarters of 2022.

Brian Drab, Analyst

Okay. And then just to clarify on the Infrastructure segment, you have some tough comp with the Massachusetts project. But I think at the end, you said maybe up mid single-digit? Or is that including the projects you have a tough comp with the project or is that kind of the core infrastructure business, excluding any big projects would be?

Brian Ketcham, CFO

No, that was overall. I think we may see a slight decline in projects if we don't fully replace the Massachusetts project, but we expect to see an increase in leasing and in road safety products.

Brian Drab, Analyst

Okay, okay. And then just the last question for now. There's about $8 million to $8.5 million left in that Massachusetts project?

Brian Ketcham, CFO

Yes, about $8 million.

Brian Drab, Analyst

Okay, okay. I’ll get back in line. Thank you.

Operator, Operator

The next question comes from Chris Shaw with Monness Crespi and Hardt. Please go ahead.

Chris Shaw, Analyst

Hi. Good morning, everyone. How are you doing?

Randy Wood, President & CEO

Great, Chris.

Chris Shaw, Analyst

Want to talk about irrigation margins. The fourth quarter margins were the highest I've found even going back to the sort of post-drought early 2011, 2012 period. Is there anything funky going on this quarter in the margin? Or is it a replacement of parts just that much higher margin?

Brian Ketcham, CFO

Well, I think. Just if you're looking at fourth quarter alone, I mean, obviously, the higher volume that we got from North America, that's not typical in our fourth quarter. That's generally our lowest quarter for North America revenue. That would be the one anomaly. Otherwise, I would say our fourth quarter margins would be more reflective of where we would expect to be. When you look at fourth quarter last year, we did have the LIFO headwinds. So stronger incremental margins than what you would typically see, but that's more because last year was lower than what you'd expect.

Chris Shaw, Analyst

Can I just ask on except for the storm season. Was it mostly with the tornadoes? I remember there being a lot of tornadoes or is it just sort of literally like the rain and hard thunderstorms and things like that?

Randy Wood, President & CEO

Yes. There wasn't a lot of direct tornado hits. These were Midwest storms. Also, there were wind-related, but a lot of those, Chris, were straight-line winds, more of that through Western and in Central Nebraska. And it was really May and June when we saw those storms roll through the biggest ones. So that's the volume that we really start shipping through June and July.

Chris Shaw, Analyst

Got it. And then just on the backlog, that's always sort of a funky number in itself, but it's down over $50 million year-over-year. Is that just sort of mostly reflecting timing and potentially just the last year? I think you had some of Egypt still in there, right? So just could you talk about it?

Brian Ketcham, CFO

Yes, when you compare it year-over-year, we had $19 million from Egypt in backlog last year. A significant part of the difference is due to timing, as last year, in an inflationary environment with many price increases in both the U.S. and Brazil, we saw orders moved up in the backlog to avoid those price hikes. The two key points are that infrastructure backlog has increased, largely due to the carryover from the Massachusetts project.

Chris Shaw, Analyst

Is that just an irrigation for the dryland and conversion volumes that have been a bit weaker this year? Are the pharma customers waiting for the higher prices to settle, or do you think there will be a recovery? It seems like there might be some improvement in 2023. I'm curious about your customers' thoughts on the higher prices and their willingness to purchase at those levels.

Randy Wood, President & CEO

When you look at some of the market research in the area of customer sentiment, you certainly see some apprehension related to where pricing has gone, some apprehension connected to where interest rates are going. So you hear that from our customers, but we always go back to the payback on an investment in irrigation. And we're really fortunate in this inflationary environment that we're seeing strong commodity support. And if you've got $6.75, $6.80 corn, your payback on a pivot, if you're going to get a 50-bushel lift, that payback is still a little over two years, which is what it's been historically. So we don't see a significant shift in the economic fundamentals of irrigated agriculture. I think that gives us an advantage maybe over some of the other capital investment decisions that a customer might be making.

Chris Shaw, Analyst

Great. Thanks a lot.

Randy Wood, President & CEO

You bet.

Operator, Operator

The next question is from Brett Kearney with Gabelli Funds. Please go ahead.

Brett Kearney, Analyst

Hi, guys. Good morning. Thanks for taking my question.

Randy Wood, President & CEO

Good morning, Brett.

Brett Kearney, Analyst

On the infrastructure side, you've pointed out what we're hearing from others in this area regarding customers at the U.S. state municipal level and the challenges in moving projects forward, especially related to rescoping projects due to inflation and labor availability. I'm curious about any early signs of deflation you might be noticing in your business. Looking ahead to next year, are you hearing or anticipating that if inflation eases and labor becomes more available in construction, it could help advance some of these projects that have been delayed?

Randy Wood, President & CEO

I think that's a good prediction, Brett. And I guess, inflation is stabilizing, implying that we're not going to continue to see the sharp increases that we've seen over the last year. I think that's certainly going to help. I think the other thing is the money is now being appropriated and actually rolling into the bank accounts of these state organizations that are able to now invest the money. So I think there are a couple of things here that have kind of delayed implementation of some of those projects, unemployment access to labor, access to equipment that builds roads and bridges is something else. It's been a bit of a headwind here. So our view would be that a lot of those hopefully get a lot better in the second half of the year. And then as we enter the 2023 road construction season and those Northern markets in particular, where we'll see a lot of those headwinds have been eliminated and hopefully create opportunity for some good market opportunity.

Brett Kearney, Analyst

Great. Thanks so much, Randy.

Randy Wood, President & CEO

You bet.

Operator, Operator

Next question is from Jon Braatz of Kansas City Capital. Please go ahead.

Jon Braatz, Analyst

Good morning, Randy, Brian.

Brian Ketcham, CFO

Good morning, Jon.

Randy Wood, President & CEO

Good morning, Jon.

Jon Braatz, Analyst

Randy, you mentioned that you recently met with the North American irrigation dealers. My question is whether this ongoing drought could influence purchase decisions going forward into 2023. When we look back at 2011 and 2012, the drought during that period really drove business growth. It's quite dry right now, and if this continues, we might be able to walk across the Mississippi River. Is there a chance that North American revenues or unit sales could be stronger than you currently anticipate?

Randy Wood, President & CEO

There's a possibility. That's for sure. It really comes back to how significant the drought is and where it is occurring. Looking back at 2012-2013, I was involved in the North American business during that time as the drought spread eastward across Iowa and then into Illinois, Ohio, and Indiana. As it continues to move east, the reality is that these investments become much easier to justify. If you consider the yield impact in those non-traditional markets, which may serve as more supplemental areas for us, the advantage of having a center pivot and irrigating a crop for just one year could lead to a payback period of about a year in some of those markets. As the drought continues to intensify and spread east, it could certainly open up those non-traditional markets for us and create additional opportunities. We believe we are well-positioned in terms of our dealer channel, technology, and innovation, which are strong motivators for customers in those regions. We feel confident that we would be ready to capitalize on any emerging market opportunities there.

Jon Braatz, Analyst

Yes. And those non-typical markets, let's say, East of Mississippi. Is the availability of water on Aquifer, is that at all an issue?

Randy Wood, President & CEO

It's going to depend on where you are North to South, and I can't give you kind of a universal answer that would apply everywhere. But for the most part, there are areas, if they needed the water either through surface or groundwater, they have access to. So we don't see that being a significant limiting factor if the customers need to irrigate because of the drought, I would say, for the most part, they're going to be able to find access to available water.

Jon Braatz, Analyst

Okay. Thank you very much, Randy.

Randy Wood, President & CEO

Thank you.

Operator, Operator

The next question comes from Brian Drab with William Blair. Please go ahead.

Brian Drab, Analyst

Yes, just one more question on the irrigation segment, given the commodity prices like input cost deal primarily have come down. What is your stance on and what you'll do with price on the center pivots in the near-term and throughout what would you predict will happen with price throughout 2023?

Brian Ketcham, CFO

Yes, Brian. Currently, we believe that the outlook for raw materials is generally stable. There has been a decrease in some hot rolled coil prices, though we continue to see inflation in structural steel and other materials. We anticipate a more significant reduction in raw material costs at some point this year. In a strong demand environment, we expect to maintain our prices, and that is our current perspective. If we need to respond to competitive pressures, we will do so, but right now, we have the opportunity to sustain our pricing.

Brian Drab, Analyst

And you have not lowered the price, is that correct? With any of the recent pullbacks in commodity input cost?

Brian Ketcham, CFO

No, that's correct. And in fact, as recently as September 1, we implemented an additional, I would say, modest price increase, but we have not lowered price at all.

Brian Drab, Analyst

Got it. Thanks very much.

Operator, Operator

This concludes our question-and-answer session. I would like to turn the conference back over to Randy Wood for closing remarks.

Randy Wood, President & CEO

Thank you all for your interest and participation today. We're very pleased with fiscal 2022 results and look forward to carrying that momentum into fiscal 2023. The Infrastructure segment continues to be supported by incremental funding provided by the Infrastructure Investment and Jobs Act. The irrigation segment continues to see strong drivers connected to high commodity prices and international project demand offset slightly, but rising input costs that may have a detrimental impact on customer sentiment. The positive ROI provided by an investment in irrigated agriculture will continue to support strong markets around the world. Both segments benefit from strategic investments in technology and innovation that improve customer profitability, while conserving resources and making our roadways safer. This concludes our fourth-quarter earnings call. We look forward to updating you on our continued progress following the close of our fiscal 2023 first quarter. Thanks for joining us.

Operator, Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.