Lindsay Corporation (NYSE:LNN) Q3 2018 Earnings Conference Call - Final Transcript
Jun 28, 2018 • 11:00 am ET
Good morning. My name is Anita, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindsay Corporation Third Quarter 2018 Earnings Call. [Operator Instructions] Please note, this event is being recorded.
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 performances and financial results. Forward-looking statements include the information concerning possible or assumed future results of operations 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.
I would now like to turn the conference over to Mr. Tim Hassinger, President and Chief Executive Officer. Mr. Hassinger, please go ahead.
Good morning and thank you for joining our call. With me on today's call is Brian Ketcham, Chief Financial Officer; and Lori Zarkowski, our Chief Accounting Officer. As you know, the objective of this call is to discuss our quarter three results.
Before we jump into that overview, I will make a few introductory comments. In our past quarter's earnings call, I provided an overview of the foundation for growth initiative we launched earlier this calendar year. In this call, I said that we were focused in four primary areas.
Those areas are, one, our manufacturing footprint with the desired result being to optimize our cost structure. Two, G&A. This work stream is focused on gaining efficiencies in our back office activities. Three, sourcing. The primary focus is to move towards a centralized approach for our buying activities. And four, commercial. We're identifying and implementing actions to optimize our channel management processes.Overall, the goal that we want to achieve from these projects is very clear. We want to simplify the way we conduct our business and aligned to that, improve our productivity to build a foundation for growth. With that goal in mind, we are planning to take the following actions.
We intend to divest the business and all associated assets, including the manufacturing plants for Watertronics and LAKOS. Also, we plan to divest irrigation specialist, our company owned dealership in the Pacific Northwest. In addition, we announced that we will close our Crown Point manufacturing plant in the Omaha area later this year. This plant is dedicated to the infrastructure business and because of this change, this work will transfer to our Lindsay Nebraska plant that is only a two hour drive away from the Crown Point plant.
This action creates further leverage across our manufacturing footprint. These moves simplify our operations and are aligned to our internal evaluation process of determining if a business is meeting margin expectations and or if it is providing leverage to our core businesses. Through this evaluation process, we have kept the discipline that when a business does not