Lindsay Corporation (NYSE:LNN) Q3 2020 Earnings Conference Call - Final Transcript

Jul 02, 2020 • 11:00 am ET


Lindsay Corporation (NYSE:LNN) Q3 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is Eric, and I will be your conference operator for today. At this time, I'd like to welcome everybody to Lindsay Corporation Third Quarter Fiscal Year 2020 Earnings Call. All participants today will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions].

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 and forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

I'd now like to turn the conference 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, our Chief Financial Officer. I will start with addressing the impact of COVID-19 to our employees and business. Our highest priority continues to be our employee health and safety. To the best of our knowledge, we have had nine employees globally with confirmed cases of COVID-19. Fortunately, I can report that eight of these employees have recovered and one was just diagnosed.

We continue to proactively implement health and safety measures according to health organization recommendations and local government regulations. At our sites, key actions that we've taken include, ensuring employees are practicing social distancing according to guidelines, use of face coverings, enhanced cleaning and sanitation efforts and staggered production schedules.

Our company continues to work from home for roles that can be done outside of the Lindsay site. Our businesses continue to be classified as business essential, and as a result of that, all nine manufacturing plants are operational and running according to the local demand level.

In terms of business impact related to COVID-19 in the third quarter, the primary impact has been some project delays, but not cancellations. We continue to operate the rapid response team structure across the company that was put in place to address COVID-19-related issues, and mitigate potential risks to the business going forward.

Before I provide an update on each of the businesses, I'd like to take this opportunity to thank our employees, who continue to deliver our commitments to our customers in this new environment.

The third quarter in the domestic irrigation business had an earlier spring in most of our key regions. At the end of the quarter, USDA corn planted acreage estimate was 93% complete versus 64% the prior year. This past quarter has seen several unfavorable factors such as, reduced ethanol use that has driven commodity prices to a lower level. Even though, we have seen farmer sentiment reflect this significant decline in commodity