Lindsay Corporation (NYSE:LNN) Q2 2023 Earnings Call Transcript

Randy Wood: Thanks Adam.

Operator: Our next question comes from Nathan Jones, I am sorry, from Brett Kearney from Gabelli Funds. Brett, please go ahead.

Brett Kearney: Hi guys. Good morning. Thanks for taking my question.

Randy Wood: Good morning Brett.

Brett Kearney: With the new TAU-XR crash cushion, just wondering how that was received, I think you guys were recently out at a convention traffic expo. And also, I know you guys talked about a strong funnel for the Road Zipper offering, and you have developed a lot of good relationships across the state and local Department of Transportation levels in the country. Are you able to kind of tie in some of your other road safety, crash cushion projects to those conversations, or is it kind of a different sales cycle?

Randy Wood: Yes. Brett, I think the TAU-XR was launched at AABS and that was, I think very well received, and it really opens up our channel to have access to a different product segment that had been a gap for us. So, I think it did generate a lot of excitement and allows our dealers and Lindsay to participate in some of the bids and tenders in certain parts of the country where we maybe had to sit on the sidelines historically. So, we do have big plans for that product line. In terms of the Road Zipper and the road safety products, there is some overlap there, but they are really targeting two different ends of the construction spectrum for the most part when we look at Road Zipper and the construction application at least.

So, there is some overlap, but we do view those as being fairly independent markets. And when we go-to-market in those two market segments differently, different commercial teams focused on some of those activities. So, we do our best to meet the customers where they want us to be for those product lines.

Brett Kearney: Excellent. And then with the appointment of Brian, the VP Strategy, Business Development, do you guys feel the focus there will be primarily opportunities in the North America market and probably more skewed towards the irrigation side of the portfolio or also encompassing infrastructure?

Randy Wood: I would say right now that Brian doesn’t have a lot of obstacles. As a global company, I think we are more than capable and willing to look at the globe for good opportunities. We do see a lot of good opportunities for industry consolidation. We see a lot of good technology innovation opportunities, a lot of bolt-on opportunities. We see some transformational stuff. So, I think Brian is really not going to be limited in his ability to look around the world for anything that we think could grow Lindsay in both infrastructure or irrigation. Having said that, are some of the near-term opportunities easier to identify in irrigation, I think there is maybe a little more target-rich environment there. But Brian’s got €“ Brian’s got an open book to look at all opportunities that we think will create value for shareholders and our customers.

Brett Kearney: Excellent. Very helpful. Thanks so much Randy.

Randy Wood: Thanks Brett.

Operator: We will follow now with a question from Brian Drab from William Blair. Brian Drab, please go ahead.

Blake Keating: Hi. Good morning. This is Blake Keating on for Brian.

Randy Wood: Hi Blake.

Blake Keating: I just wanted to ask about the outlook for Brazil. I know you guys said it won’t impact full year revenue, but I was just curious how much revenue was delayed and timing of that revenue being recognized?