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
: Wonder if we could talk a little bit more about the North American irrigation number. I think probably people are surprised at how good that was,
frankly, being up 5% organically, given the pretty atrocious weather that farmers had to deal with during the quarter. I'm specifically interested in
your commentary that April and May picked back up. I think the weather was pretty lousy then, there was a lot of flooding going on. Is there any
color you can give us on what you think was underlying that? Whether there are differences geographically with some of the flooded areas pretty
poor and there was strength in other areas of the country? Or just any other color you can give us on what I think is, frankly, a pretty strong number
here.
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JULY 09, 2019 / 3:00PM, LNN.N - Q3 2019 Lindsay Corp Earnings Call
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Okay. That's helpful. Maybe if we could concentrate on some of those, I guess, softer areas in Nebraska, Missouri where the flooding was pretty
bad. Can you talk about what your expectations are for any catch-up there? Is this something where farmers are unlikely to plant those fields? You
probably don't see any catch-up of that in the back half of the year, you maybe have to wait till next year for that to catch up? And would you
expect to see some catch-up spending even if it stretches out into the next selling season?
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Okay. So I think the message there is that the severe weather that we've had hear is maybe not as big an impact on your business as I -- certainly,
I was expecting?
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Just some follow-up questions here on that 11% to 12% margin target. And you guys have said that would be on the trough volume which you
thought was 2017. I think you guys have said that, that 11% to 12% did contemplate the divestitures that you've made. So I assume that the revenue
number has to as well. And it looks like you've divested $80 million to $90 million worth of revenue, which would actually probably put 2019
revenue slightly above where that pro forma number would have been from 2017. So maybe you can comment on what the right way for us to
look at that in terms of the volume -- the base volume from 2017 that you're looking at for comparison?
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: So is it -- is that the volume that you need to get back to primarily domestic irrigation volume that you're talking about? Because it would seem
that the actual overall revenue number is kind of already at that base from 2017 if you include the divestitures.
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Tim, I do just have a follow-up question on the engineering stuff in the Pacific Northwest. Is that separate and outside of any actual engineering
for irrigation systems? Should there be irrigation systems that follow that engineering? Or is this completely a separate thing?
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Okay. So there should be some higher-margin revenue that follows this in future quarters?
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