Lindsay Corporation (NYSE:LNN) Q1 2020 Earnings Conference Call - Final Transcript

Jan 09, 2020 • 11:00 am ET


Lindsay Corporation (NYSE:LNN) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is Andrea, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindsay Corporation First Quarter Fiscal Year 2020 Earnings call. 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 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.

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 one results. Before we go to that overview, I'll make a few introductory comments. For the domestic irrigation business in the first quarter, farmer sentiment continued to be impacted by the unresolved trade issues and lower commodity prices.

On the positive side, the recent market facilitation payments administered through USDA have helped farmer income in this challenging environment. In addition, the expected US, China phase-one trade deal completion this month does provide potential for stronger commodity prices moving forward. Our innovate and collaborate strategic direction in irrigation continues to progress. Last fiscal year, we launched Pivot Watch and it is exciting to see the market interest continued to increase for this product.

In addition to the farmer interest for this product that is sold through the Lindsay dealer network Farmers Edge, we will be deploying Pivot Watch to their irrigated customers to support their agronomic capabilities. This will allow as applied irrigation information to be fed to their farm command platform through FieldNET by integrating these two digital platforms. The goal is to have this fully connected water management solution on 2 million acres by the end of 2021. Our collaboration partnerships continued to expand and we see them as key enablers to further the current FieldNET market leadership position. Our sales data shows a direct correlation of our FieldNET penetration percent to the market share of our pivot business. For this reason, we see our technology leadership position has been an important part of our overall growth strategy.

For the infrastructure business, we continue to see favorable signs that the Road Zipper business is moving in a positive direction. In our first quarter, we secured a multi-year leased in Germany. Also currently there are potential projects in our sales funnel across significantly more countries than we've had in prior years, which reflects our desire to expand our geographical footprint. We also continue to focus on our shift-left