Lindsay Corporation (NYSE:LNN) Q3 2023 Earnings Call Transcript

Bill Baldwin: Okay. Thank you. On the Infrastructure side, I know you’ve gone into this previously, but it’s been a while since any commentary on it. Can you kind of give us a little bit of overview or specifics on where the project Road Zippers primarily fit into the infrastructure programs? Are those into the — where you get into early design of transportation systems were they going to be used on a permanent continuous basis? Or exactly what is the nature of the primary usage on buying the Road Zippers?

Brian Ketcham: Yes. No, it’s a great question, because Road Zipper can be used in a variety of different ways. We talked about the leasing being up, and that’s generally going to be used during the construction program. It’s a way that construction programs can be facilitated, provides worker safety during the project. So we’re seeing an uptick in that. And that’s kind of an early indicator of some of the money coming through with IIJA funding too is you’ll see that first as the road construction starts. When it comes to a permanent installation, a couple of different things that we think we’ll also see opportunities as more substantial projects get planned with expanding roadways, and especially going in and out of a city where you’ve got the flow traffic, you could use Road Zipper in a permanent installation to provide flexible lanes.

That’s an option. And then, the other one has been solving existing congestion issues. And the best example is on a bridge that’s going into a city. So those are a few examples, and this is a global solution. We’ve had success in various countries around the world and continue to see opportunities.

Bill Baldwin: Are you finding yourselves able to get in on the early design stage of these permanent projects, these projects that we’re talking about here have a more permanent nature? I know that was one of your focus is to try to get on the early design where you get Road Zipper design into the project itself.

Brian Ketcham: Yes, that was really part of that shift left strategy we implemented three years ago or so is really getting a seat at the table so that we could explain how Road Zipper can be used in a variety of different applications.

Bill Baldwin: Is that working well? Is that working for you?

Brian Ketcham: Yes, we’re definitely seeing some traction from that.

Bill Baldwin: Super. Okay. Very good. And lastly, just kind of a numbers question here. Can you provide any insight into the delta on the year-over-year on Russia and Ukraine as far as revenue decline? How much of revenue decline came out of those two areas?

Brian Ketcham: We’ve talked about it in the last couple of quarters. And in the third quarter last year, we completed the backlog of orders that we had. And if you look at it on a — just on a year-to-date basis through the first three quarters, it’s probably approaching $20 million.

Bill Baldwin: Okay. Thank you very much.

Brian Ketcham: All right. Thanks, Bill.