The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Just a follow-up there on Brian's last question and a clarification. Brian, you said operating margin percentage could be down a bit, but the operating
income could be higher than last year?
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JANUARY 07, 2021 / 4:00PM, LNN.N - Q1 2021 Lindsay Corp Earnings Call
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Okay. I wanted to talk a little bit about raw material prices and its impact on margins. You really only saw steel prices start to spike up 4, 5 months
ago, which, if I recall correctly, is about how long it takes you to run it through your inventory anyway. So I wouldn't have thought you guys certainly
in the fiscal first quarter should really have been recognizing any of that increased steel pricing running through the P&L. Can you talk about how
that plays out in terms of what of the increased raw material prices you've already recognized? I would have thought that, that pricing would be
getting a little bit worse as we go forward here over the next quarter or 2?
And then also how that plays off with the price increases that you put in? Have you put in enough price increases to cover all of the increase in raw
materials? Or do we need to go back to the market with more price increases?
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: I just want to follow up a little bit on the backlog increase, 50%. It is a pretty slow period seasonally for you guys. So it does take huge numbers
probably to move that backlog around. It could be impacted by the timing on the harvest and when the buying season starts. Were there any other
factors impacting where you -- where the backlog ended at the end of November that are worth noting in terms of those -- maybe a timing impact
from the harvest or anything like that, that we should be aware of?
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Got it. And then you talked about having put through double-digit price increases, talked about robust unit demand, increases in technology
purchases. I'm just trying to get some idea or some sizing of how we should think about the revenue growth as we're going forward here.
I mean you can have some pretty big swings in revenue in this business as things go. But are we talking about mid-teens or better going forward
kind of revenue growth as an expectation? How long does it take before these double-digit price increases actually bleed through into the P&L?
Just to try and give us some idea of what kind of growth we should be expecting here going forward?
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