8-K
LINDSAY CORP NYSE false 0000836157 0000836157 2021-04-06 2021-04-06

 

 

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):

April 6, 2021

 

 

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 April 6, 2021, Lindsay Corporation (the “Company”) issued a press release announcing the Company’s results of operations for its second quarter ended February 28, 2021. 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 2021 second quarter investor conference call at 11:00 a.m. Eastern Time on April 6, 2021 is furnished herewith as Exhibit 99.2.

 

Item 9.01.

Financial Statements and Exhibits.

 

99.1    Press Release, dated April 6, 2021, issued by the Company.
99.2    Slide Presentation for Fiscal 2021 Second Quarter Investor Conference Call on April 6, 2021.
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: April 6, 2021

    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    214-442-0016
  402-827-6579   

Lindsay Corporation Reports Fiscal 2021 Second Quarter Results

 

   

Second quarter operating income increased 83 percent on a 26 percent increase in revenues

 

   

Improved agricultural market conditions drive improved Irrigation performance

 

   

Infrastructure results fueled by increase in Road Zipper System® sales and leases

OMAHA, Neb., April 6, 2021—Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its second quarter of fiscal 2021, which ended on February 28, 2021.

Second Quarter Summary

Revenues for the second quarter of fiscal 2021 were $143.6 million, an increase of $29.8 million, or 26 percent, compared to revenues of $113.8 million in the prior year second quarter. Net earnings for the quarter were $11.9 million, or $1.08 per diluted share, compared with net earnings of $5.5 million, or $0.51 per diluted share, for the prior year second quarter.

“Second quarter results were aided by improved agricultural market conditions as commodity prices reached their highest level in several years. We experienced strong demand for irrigation equipment throughout the quarter in North America as well as most international markets,” said Randy Wood, President and Chief Executive Officer. “Improved results in our infrastructure business resulted from higher Road Zipper System® sales and lease revenue,” Mr. Wood continued.

Second Quarter Segment Results

Irrigation segment revenues for the second quarter of fiscal 2021 increased $25.1 million, or 27 percent, to $118.6 million compared to $93.5 million in the prior year second quarter. North America irrigation revenues increased $13.1 million, or 19 percent, to $80.2 million compared to the prior year second quarter.    The increase resulted primarily from higher irrigation equipment unit sales volume and higher average selling prices. The increase was partially offset by revenue from engineering project services in the prior year that did not repeat. International irrigation revenues of $38.4 million increased $12.0 million, or 45 percent, compared to the prior year second quarter. The increase resulted from higher unit sales volumes in several international markets.

Irrigation segment operating income was $18.0 million, an increase of $7.9 million, or 79 percent, compared to the prior year second quarter. Operating margin was 15.2 percent of sales, compared to 10.8 percent of sales in the prior year second quarter. The increase resulted primarily from the impact of higher irrigation system unit volume and was partially offset by the impact of higher raw material and freight costs.

Infrastructure segment revenues for the second quarter of fiscal 2021 increased $4.7 million, or 23 percent, to $25.0 million, compared to $20.3 million in the prior year second quarter. The increase resulted primarily from higher Road Zipper System® sales and lease revenue.

Infrastructure segment operating income was $6.3 million, an increase of $0.4 million, or 8 percent, compared to the prior year second quarter. Operating margin was 25.4 percent of sales, compared to 29.0 percent of sales in the prior year second quarter. Prior year operating income included a gain of $1.2 million on the sale of a building that had been held for sale.


The backlog of unfilled orders at February 28, 2021 was $101.4 million compared with $104.4 million at February 29, 2020. Included in these backlogs are amounts of $2.7 million and $5.5 million, respectively, that are not expected to be fulfilled within the subsequent twelve months. The decrease in backlog is due to two large infrastructure orders in the prior year totaling $38 million that did not repeat, while order backlogs in North America and international irrigation are higher compared to the prior year.

Outlook

“Solid agricultural market fundamentals set the stage for improved irrigation equipment demand for the balance of the year. Significantly higher raw material and freight costs, along with supply chain constraints, continue to present challenges but our teams have been effective in working through these issues,” said Mr. Wood. “In our infrastructure business, while our sales pipeline remains robust, we expect continued coronavirus-related delays in road construction activity and projects.

Mr. Wood continued, “Our financial position remains strong, providing support for our innovation growth strategy across our businesses that address global megatrends and provide solutions that improve customer profitability and assist in their sustainability efforts.”

Second Quarter Conference Call

Lindsay’s fiscal 2021 second 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     Six months ended  

(in thousands, except per share amounts)

   February 28,
2021
    February 29,
2020
    February 28,
2021
    February 29,
2020
 

Operating revenues

   $ 143,577     $ 113,788     $ 252,062     $ 223,181  

Cost of operating revenues

     102,403       80,382       179,480       155,701  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     41,174       33,406       72,582       67,480  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Selling expense

     7,778       8,192       15,110       14,684  

General and administrative expense

     14,275       13,167       27,727       24,971  

Engineering and research expense

     3,312       3,405       6,402       6,907  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     25,365       24,764       49,239       46,562  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     15,809       8,642       23,343       20,918  

Other (expense) income:

        

Interest expense

     (1,205     (1,191     (2,406     (2,377

Interest income

     268       389       571       1,004  

Other expense, net

     (311     (973     (65     (1,423
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income

     (1,248     (1,775     (1,900     (2,796
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

     14,561       6,867       21,443       18,122  

Income tax expense

     2,685       1,351       2,472       4,261  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

   $ 11,876     $ 5,516     $ 18,971     $ 13,861  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 1.09     $ 0.51     $ 1.75     $ 1.28  

Diluted

   $ 1.08     $ 0.51     $ 1.74     $ 1.28  

Shares used in computing earnings per share:

        

Basic

     10,884       10,825       10,865       10,810  

Diluted

     10,981       10,857       10,934       10,843  

Cash dividends declared per share

   $ 0.32     $ 0.31     $ 0.64     $ 0.62  

 

3


LINDSAY CORPORATION AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Unaudited)

 

     Three months ended     Six months ended  

(in thousands)

   February 28,
2021
    February 29,
2020
    February 28,
2021
    February 29,
2020
 

Operating revenues:

        

Irrigation:

        

North America

   $ 80,178     $ 67,088       132,968     $ 120,675  

International

     38,394       26,406       72,961       56,145  
  

 

 

   

 

 

   

 

 

   

 

 

 

Irrigation segment

     118,572       93,494     $ 205,929     $ 176,820  

Infrastructure segment

     25,005       20,294       46,133       46,361  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

   $ 143,577     $ 113,788     $ 252,062     $ 223,181  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss):

        

Irrigation segment

   $ 18,045     $ 10,084     $ 28,678     $ 19,867  

Infrastructure segment

     6,341       5,888       10,597       14,630  

Corporate

     (8,577     (7,330     (15,932     (13,579
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating income

   $ 15,809     $ 8,642     $ 23,343     $ 20,918  
  

 

 

   

 

 

   

 

 

   

 

 

 

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 and large diameter steel tubing 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.

Certain immaterial reclassifications have been made to the prior year operating results to conform with current year presentation, as revenues and operating income from certain product lines previously included within the Infrastructure reporting segment are now included within the Irrigation reporting segment.

 

4


LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands)

   February 28,
2021
    February 29,
2020
    August 31,
2020
 

ASSETS

      

Current assets:

      

Cash and cash equivalents

   $ 110,775     $ 101,272     $ 121,403  

Marketable securities

     19,555       18,740       19,511  

Receivables, net

     94,211       80,468       84,604  

Inventories, net

     121,566       105,454       104,792  

Other current assets, net

     29,509       19,083       17,625  
  

 

 

   

 

 

   

 

 

 

Total current assets

     375,616       325,017       347,935  
  

 

 

   

 

 

   

 

 

 

Property, plant, and equipment, net

     89,221       68,762       79,581  

Intangibles, net

     22,383       23,162       23,477  

Goodwill

     68,087       64,338       68,004  

Operating lease right-of-use assets

     20,173       27,257       27,457  

Deferred income tax assets

     10,347       10,162       9,935  

Other noncurrent assets, net

     10,821       15,632       14,137  
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 596,648     $ 534,330     $ 570,526  
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities:

      

Accounts payable

   $ 39,934     $ 33,307     $ 29,554  

Current portion of long-term debt

     215       211       195  

Other current liabilities

     74,687       54,303       72,646  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     114,836       87,821       102,395  
  

 

 

   

 

 

   

 

 

 

Pension benefits liabilities

     6,182       5,868       6,374  

Long-term debt

     115,599       115,765       115,682  

Operating lease liabilities

     20,174       25,919       25,862  

Deferred income tax liabilities

     900       839       889  

Other noncurrent liabilities

     19,933       20,791       20,806  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     277,624       257,003       272,008  
  

 

 

   

 

 

   

 

 

 

Shareholders’ equity:

      

Preferred stock

     —         —         —    

Common stock

     18,990       18,918       18,918  

Capital in excess of stated value

     84,206       74,645       77,686  

Retained earnings

     511,728       481,890       499,724  

Less treasury stock - at cost

     (277,238     (277,238     (277,238

Accumulated other comprehensive loss, net

     (18,662     (20,888     (20,572
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     319,024       277,327       298,518  
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 596,648     $ 534,330     $ 570,526  
  

 

 

   

 

 

   

 

 

 

 

5


LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Six months ended  

(in thousands)

   February 28,
2021
    February 29,
2020
 

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 18,971     $ 13,861  

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     9,878       9,418  

Gain on sale of assets held-for-sale

     —         (1,191

Provision for uncollectible accounts receivable

     246       213  

Deferred income taxes

     206       1,806  

Share-based compensation expense

     4,047       2,575  

Unrealized foreign currency transaction (gain) loss

     (754     1,515  

Other, net

     1,804       (2,153

Changes in assets and liabilities:

    

Receivables

     (10,769     (5,716

Inventories

     (16,245     (14,153

Other current assets

     (9,492     (4,539

Accounts payable

     10,962       3,540  

Other current liabilities

     334       (2,183

Other noncurrent assets and liabilities

     1,940       (5,178
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     11,128       (2,185
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant, and equipment

     (16,556     (5,335

Proceeds from sale of property and equipment held-for-sale

     —         3,955  

Purchases of marketable securities available-for-sale

     (8,313     (19,978

Proceeds from maturities of marketable securities available-for-sale

     8,043       1,250  

Other investing activities, net

     (860     1,092  
  

 

 

   

 

 

 

Net cash used in investing activities

     (17,686     (19,016
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from exercise of stock options

     3,814       1,545  

Common stock withheld for payroll tax obligations

     (1,269     (1,111

Principal payments on long-term debt

     (88     (104

Dividends paid

     (6,967     (6,711
  

 

 

   

 

 

 

Net cash used in financing activities

     (4,510     (6,381
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     440       1,650  

Net change in cash and cash equivalents

     (10,628     (25,932

Cash and cash equivalents, beginning of period

     121,403       127,204  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 110,775     $ 101,272  
  

 

 

   

 

 

 

 

6

Slide 1

2nd Quarter Fiscal 2021 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 those outlined in the “Risk Factors” section of the Company’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission, 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 April 6, 2021.


Slide 3

Second Quarter Summary Revenues increased $29.8 million compared to prior year Irrigation increased $25.1 million Infrastructure increased $4.7 million Operating income increased $7.2 million compared to prior year results Irrigation increased $8.0 million Infrastructure increased $0.4 million Corporate expense increased $1.2 million Includes expense of $1.5 million related to the modification of equity awards in connection with CEO retirement Amounts in millions, except per share amounts Revenue Operating Income Diluted EPS +26% +112% +83%


Slide 4

Second Quarter and YTD Financial Summary Certain immaterial reclassifications have been made to the prior year operating results to conform with the current year presentation, as revenue and operating income from certain product lines included within the infrastructure reporting segment in the prior year are now included within the irrigation reporting segment.


Slide 5

Current Market Factors As of February 2021, U.S. corn and soybean prices have reached multi-year highs as a result of lower production levels in 2020 coupled with higher demand coming primarily from increased exports to China. Estimated net farm income for 2020 of $121.1 billion increased 46 percent from the prior year. Most of the increase was attributed to higher federal government direct farm program payments. Net farm income for 2021 is estimated to decrease 8 percent to $111.4 billion. Federal government direct farm program payments are estimated to return to more historical levels while cash receipts from crops and livestock are projected to increase. Significant increases in raw material and freight costs have resulted in short-term margin pressure until increased costs are fully recovered by price increases. Constraints on availability of raw materials, labor and trucking resources extend lead times for deliveries. Irrigation Infrastructure The five-year $305 billion U.S. highway bill (the “FAST Act”) expired September 30, 2020 and was extended for one year. The extension includes an additional $13.6 billion added to the Highway Trust Fund. Construction activity has slowed globally as a result of delays in approvals and government budget constraints caused by the Covid-19 pandemic. A Federal Covid-19 relief bill signed December 27, 2020 includes $10 billion of emergency aid for state departments of transportation to help fund eligible projects. A Federal Covid-19 relief bill signed March 11, 2021 provides $350 billion in additional assistance to states and local governments. President Biden is proposing a $2 trillion infrastructure bill that includes, among other things, $135 billion to repair and rebuild bridges, highways and roads and to improve road safety.


Slide 1

Irrigation Segment 6 North America revenue increased $13.1 million Higher irrigation equipment unit sales volume Higher average selling prices Lower engineering services revenue International revenue increased $12.0 million Higher irrigation equipment unit sales volume in several regions Unfavorable currency impact of $0.6 million Operating income increased $7.9 million Higher irrigation system unit volume Negatively impacted by higher raw material and freight costs Revenue Operating Income North America International FY20 FY21 Amounts in millions Certain immaterial reclassifications have been made to the prior year operating results to conform with the current year presentation, as revenue and operating income from certain product lines included within the infrastructure reporting segment in the prior year are now included within the irrigation reporting segment. +19% +45% +79%


Slide 7

Infrastructure Segment Total revenue increased $4.7 million Higher Road Zipper System® sales and lease revenue Sales of road safety products were relatively flat with prior year Operating income increased $0.4 million Positive margin mix from higher Road Zipper System® sales and lease revenue Negative impact from higher raw material and other costs compared to the prior year Prior year included a gain of $1.2 million on the sale of a building that had been held for sale Revenue Operating Income Amounts in millions Certain immaterial reclassifications have been made to the prior year operating results to conform with the current year presentation, as revenue and operating income from certain product lines included within the infrastructure reporting segment in the prior year are now included within the irrigation reporting segment. +23% +8%


Slide 8

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 February 28, 2021, we have: Available liquidity of $180.3 million, with $130.3 million in cash, cash equivalents and marketable securities and $50.0 million available under revolving credit facility Total debt of $116.3 million, of which $115.0 million matures in 2030 A funded debt to EBITDA leverage ratio (as defined in our credit agreements) of 1.4 compared to a covenant limit of 3.0


Slide 9

Financial Flexibility Strengthening our balance sheet and managing leverage. Managing operations to minimize customer disruption and ensure continuity of supply. Business Continuity Safety First Prioritizing safety with work-from-home policy, safety practices at all locations and restricting non-essential travel. Playing Offense Positioning Lindsay to emerge a stronger company. Our COVID-19 Response Protecting the health and well-being of our employees is a top priority, as is maintaining frequent communication and providing important updates.


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Innovation Leadership: Addressing Global Megatrends Capitalizing on global megatrends Key Trends Food Security Water Scarcity Land Availability Mobility Safety Reducing Emissions Labor Savings


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Strong Commitment to Sustainable Practices Our mission is to provide solutions that conserve natural resources, enhance the quality of life for people, and expand our world’s potential. Investing in sustainable technologies Improving our operational footprint Empowering and protecting our people Engaging in our local communities Operating with integrity 1 2 3 4 5


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Summary Balance Sheet


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Summary of Cash Flow * YTD FY21 includes $8.5 million to exercise a purchase option for the land and buildings related to the Company’s manufacturing operation in Turkey *


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Capital Allocation – A Balanced Approach Allocation History (1) Other includes debt repayments, net cash sources/uses from note receivables, net investment hedges, stock compensation and related tax benefits. 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 $20-25 million in fiscal 2021 Dividend payments Synergistic acquisitions that leverage core capabilities Excess cash invested in opportunistic share repurchases Allocation Plan