Lindsay Corporation (NYSE:LNN) Q3 2019 Earnings Conference Call Transcript

Jul 09, 2019 • 11:00 am ET

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Lindsay Corporation (NYSE:LNN) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Gary, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindsay Corporation Third Quarter 2019 Earnings Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (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 reflects 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 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 call over to Mr. Tim Hassinger, President and Chief Executive Officer. Please go ahead.

Executive
Timothy L. Hassinger

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. The objective of this call is to discuss our quarter three results. Before we go to that overview, I'll make a few introductory comments.

The ag market conditions this past quarter continued to be a challenging environment given the continued lower commodity prices, uncertainty surrounding the trade disputes and an unusually wet spring throughout many parts of the US. All of this caused a carryover of a low farmer sentiment from the prior quarter. As we said in the prior earnings call, with all of this uncertainty going on, we were seeing a wait-and-see buying attitude for mechanized irrigation.

Our March sales reflected a continuation of the market environment that we witnessed in Q2. However, we did see a sales uptick in April and May versus the prior year as many farmers waited to address their irrigation needs shortly before planting. Given the importance of March in this quarter, the sales increases in April and May were not able to offset the low sales in March. However, it was encouraging to see an increase in demand in the last two months of the quarter. In addition with the recent increase in commodity prices, it's our expectation that this will favorably impact farmer sentiment going forward.

A highlight in innovation from Lindsay is the recent launch of Pivot Watch. This product offers a low-cost entry point for many farmers to help manage their irrigation operations. This offering helps us reach a group of farmers that have not ever used a telemetry-based product before and it positions us for further penetration of FieldNET Advisor. Something that we are focused on doing and getting better at is leveraging technology across our various markets that we serve. Pivot Watch is a great example of taking technology that has been effectively used in the oil and