Lindsay Corp Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tyler Hutin - William Blair & Company L.L.C - Analyst : This is Tyler Hutin on for Brian Drab. Thank you for taking my questions

Question: Tyler Hutin - William Blair & Company L.L.C - Analyst : Yeah, just wanted to start, I appreciate the color on the South America irrigation situation. Has there been any other impact on international irrigation shipments due to geopolitical tensions or other factors?

Question: Tyler Hutin - William Blair & Company L.L.C - Analyst : Got it. And then on the previous call, you mentioned that some irrigation projects could be dilutive and infrastructure projects could be accretive. Can you just give some details on how those scenarios typicall could play out in the future?

Question: Tyler Hutin - William Blair & Company L.L.C - Analyst : Yeah. Thank you for the color and just a final question, just when it comes to data analytics in the field, I saw some articles about farmers maybe having like too much data or information overload. Just how do you and the dealers approach, farmers like that and convince them that these solutions are optimal for their operations? And that's all I have today. Thank you.

Question: Tyler Hutin - William Blair & Company L.L.C - Analyst : Sounds good. Thank you. And I'll pass it along.

Question: Nathan Jones - Stifel, Nicolaus & Company, Inc. - Analyst : Good morning, everyone.

Question: Nathan Jones - Stifel, Nicolaus & Company, Inc. - Analyst : And happy year. I want to go to Brazil, Argentina. You've had some challenges in particularly Brazil, government changeover, there was phenomenal financing wasn't available for a while. Now, they're shifting around the way that's happened. And it seems like Brazil has been down pretty significantly at least three of the last four quarters as you should have some pretty easy comps coming up. Does that lead to the expectation that we should see a pretty significant year-over-year growth for the next few quarters out of Brazil, especially? Or is that enough uncertainty in the way that phenomenon financing is going to come out for you to not be cannot be confident enough to say that?

Question: Nathan Jones - Stifel, Nicolaus & Company, Inc. - Analyst : Obviously, some issues in Argentina, what's the relative size after you guys between Brazil and Argentina and Brazil significantly bigger?

Question: Nathan Jones - Stifel, Nicolaus & Company, Inc. - Analyst : Got it on. And then I just wanted to get back to the domestic business. I thought that growth year-over-year in the first quarter was pretty encouraging. Crop prices have been on the decline through 2023, which now all else equal, would suggest that farm income will be lower in '24 than it than it was in '23. There's obviously some offsets to that with crop input and financing costs and all those kinds of things. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 04, 2024 / 4:00PM, LNN.N - Q1 2024 Lindsay Corp Earnings Call Is it reasonable to think that farm incomes down in '24 and that should probably late to domestic irrigation down in 2024? Or is that not the way you're thinking about it at this point?

Question: Nathan Jones - Stifel, Nicolaus & Company, Inc. - Analyst : Thanks Bob, . Yeah, thanks. I'll pass it on.

Question: Brian Wright - ROTH MKM Capital Partners, LLC - Analyst : Thanks. Good morning and thanks for the question. Just wondering one more on the Brazil situation, given the dryness and Mato Grasso ensuring that it could be gains still a game time decision, come February and March for the sufferina that season. As far as planning factors. Is that on -- what should we be thinking about that is a positive backdrop as far as potential and why your commentary on the strong kind of quoting -- quoting levels that you're seeing.

Question: Brian Wright - ROTH MKM Capital Partners, LLC - Analyst : Okay. Thank you. And then I guess on a follow-up, there has been talk in Brazil about putting together an incentive program to -- for the conversion of pasture land to crop plan? Or is there kind of any had no headwind or headway that's been made on the -- on regulatory or legislative front on that in the past?

Question: Brian Wright - ROTH MKM Capital Partners, LLC - Analyst : Okay. Okay, great. And then can just real quick on balance sheet question on marketable securities were up pretty nicely sequentially up to over $10 million in the quarter. Just what kind of securities are you buying there?

Question: Brian Wright - ROTH MKM Capital Partners, LLC - Analyst : Okay, great. And then I guess one last one, if I could, is inventory picked up a bit sequentially in the quarter. Just your thoughts on that?

Question: Brian Wright - ROTH MKM Capital Partners, LLC - Analyst : Okay. great, great. That also offer for North America and next quarter. So that's great. And that's all I've got. Thank you so much for the questions.

Question: Jon Braatz - Kansas city capital Group Inc - Analyst : Morning Randy, Brian.

Question: Jon Braatz - Kansas city capital Group Inc - Analyst : On the domestic international front domestic irrigation front, how does the demand profile vary for a region, a Midwest versus maybe Southeast Northwest? Are you seeing any significant difference in sort of the demand picture by geography?

Question: Jon Braatz - Kansas city capital Group Inc - Analyst : Is there something specific in the Great Lakes area -- that may be driving a different profile there from the past?

Question: Jon Braatz - Kansas city capital Group Inc - Analyst : Okay, thanks. Brian, it looks like maybe your selling prices are sort of flattish year over year, and I suspect it might continue to be that way. But we're all seeing higher costs, maybe not as significant as we've seen in most of the past couple of years. But how when you look at the cost pressures of your REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 04, 2024 / 4:00PM, LNN.N - Q1 2024 Lindsay Corp Earnings Call business, how is that -- do you think you'll be able to offset those cost pressures with productivity? Or is there going to be a little bit a little bit impact on your margins because of some rising costs?

Question: Jon Braatz - Kansas city capital Group Inc - Analyst : Okay. All right. Thank you very much.