Lindsay Corp (LNN) 2023 Q3 法說會逐字稿

Good day, and welcome to the Lindsay Corporation Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Randy Wood, President and Chief Executive Officer. Please go ahead.

美好的一天，歡迎參加 Lindsay Corporation 2023 年第三季度收益電話會議。 （操作員說明）請注意，該事件正在被記錄。我現在想將會議交給總裁兼首席執行官蘭迪·伍德 (Randy Wood)。請繼續。

Thank you, and good morning, everyone. Welcome to our fiscal 2023 3rd quarter earnings call. With me today is Brian Ketcham, our Chief Financial Officer. I'd like to start by looking at market conditions in North American irrigation where we're really seeing 2 themes playing off 1 another. Firstly, market fundamentals remain strong. And although net farm income is projected to decline versus last year, it's still well above historical averages and will represent the third highest income level over the past 10 years. .

謝謝大家，大家早上好。歡迎參加我們的 2023 財年第三季度財報電話會議。今天和我在一起的是我們的首席財務官 Brian Ketcham。我想首先了解北美灌溉的市場狀況，我們確實看到兩個主題相互競爭。首先，市場基本面依然強勁。儘管農場淨收入預計將比去年有所下降，但仍遠高於歷史平均水平，並將代表過去 10 年來第三高的收入水平。 。

Commodity prices have also seen support recently due to crop quality concerns caused by the drought. While some parts of the country have received much needed precipitation, we have seen drought spread across the Midwest driving the USDA to announce earlier this month that 64% of the U.S. corn crop was currently impacted by drought. This market tailwind has been partially offset by tepid customer sentiment that has been driven by inflation, interest rates, general economic uncertainty and commodity prices still below last year's highs.

由於乾旱引起的農作物質量問題，大宗商品價格最近也得到了支撐。雖然美國部分地區已經獲得了急需的降水，但我們看到干旱在整個中西部蔓延，促使美國農業部本月早些時候宣布，美國 64% 的玉米作物目前受到干旱影響。這種市場順風已被通脹、利率、總體經濟不確定性和仍低於去年高點的大宗商品價格驅動的不溫不火的客戶情緒部分抵消。

In our view, the short-term uncertainties have influenced customer behavior and caused an unexpected shift in seasonal order patterns. While market feedback indicated quotation volume remained generally consistent with the prior year, our order volume was impacted by customers who have taken a more cautious wait-and-see approach for the near term. For us, this means some of the spring volume we anticipated will shift into the fall installation season.

我們認為，短期不確定性影響了客戶行為，並導致季節性訂單模式發生意外變化。雖然市場反饋顯示報價量與去年基本保持一致，但我們的訂單量受到客戶近期採取更加謹慎觀望態度的影響。對我們來說，這意味著我們預期的一些春季銷量將轉移到秋季安裝季節。

Our operational focus, pricing discipline and spending efficiencies in the quarter did allow us to expand operating margins and maintain business quality in spite of the deleveraging driven by lighter volumes.

儘管銷量減少推動了去槓桿化，但本季度我們的運營重點、定價紀律和支出效率確實使我們能夠擴大運營利潤並保持業務質量。

Moving on to International Irrigation. We continue to see strong project demand connected to global food security and shifting climate patterns. We recently confirmed 250 project units in the Middle East and there are also several additional large projects in the Europe, Middle East and Africa region that are actively being designed and quoted. Our global footprint, differentiated technology and strong project experience position us to be confident in our ability to identify and win these competitive projects.

轉向國際灌溉。我們繼續看到與全球糧食安全和氣候模式變化相關的強勁項目需求。我們最近在中東確認了250個項目單元，此外歐洲、中東和非洲地區還有幾個大型項目正在積極設計和報價。我們的全球足跡、差異化技術和豐富的項目經驗使我們對識別和贏得這些有競爭力的項目的能力充滿信心。

Brazil continues to be a strong market, and we were pleased with customer interest at the recent Agri Show, which is a large selling show in the region. This market will be further supported by an aggressive government financing program that was released this week for the upcoming season. Total program funding for irrigation investments was increased approximately 25%, making over BRL 2.3 billion available for irrigators. The interest rate on these loans was maintained at 10.5%, which makes them attractive options to support continued investment.

巴西仍然是一個強勁的市場，我們很高興看到客戶對最近舉行的農業展的興趣，這是該地區的大型銷售展會。本週發布的針對即將到來的季節的積極政府融資計劃將進一步支持該市場。灌溉投資的計劃總資金增加了約 25%，為灌溉者提供了超過 23 億雷亞爾。這些貸款的利率維持在 10.5%，這使其成為支持持續投資的有吸引力的選擇。

We were also honored to host a delegation from the Mato Grosso state in our global headquarters last month. This important growing region in Brazil has over 29.6 million acres of production, but less than 1.5% of that land is irrigated, representing a significant opportunity for development. Irrigation also creates the potential to grow 3 crops per year, which accelerates the payback of the irrigation investment. And as mentioned, we're confident in our strategic value add with growers and our ability to win competitive projects in this growth market.

上個月，我們還很榮幸在我們的全球總部接待了來自馬托格羅索州的代表團。巴西這一重要的種植區擁有超過 2,960 萬英畝的生產面積，但其中只有不到 1.5% 的土地得到灌溉，這代表著重大的發展機會。灌溉還創造了每年種植 3 種作物的潛力，從而加速了灌溉投資的回報。如前所述，我們對種植者的戰略增值以及在這個增長市場中贏得競爭項目的能力充滿信心。

Turning to innovation and technology. We were pleased to announce our partnership with Pessl instruments in the quarter. In conjunction with our FieldNET platform, growers will now be able to access Pessl field monitoring systems, including weather stations and soil moisture probes, providing real-time insights into crop water needs. Additionally, growers utilizing FieldNET adviser will be able to utilize Pessl field monitoring systems to enhance the predictive analytics provided by the platform.

轉向創新和技術。我們很高興地宣布本季度與 Pessl 儀器建立合作夥伴關係。與我們的 FieldNET 平台相結合，種植者現在將能夠訪問 Pessl 田間監測系統，包括氣象站和土壤濕度探測器，從而實時了解作物的用水需求。此外，使用 FieldNET Advisor 的種植者將能夠利用 Pessl 田間監測系統來增強該平台提供的預測分析。

Moving to Infrastructure. We continue to see positive mid- and long-term market fundamentals driven by aging infrastructure and funding provided by the Infrastructure Investments and Jobs Act. This funding will support incremental investments in roadway infrastructure, but like many other companies in this space, we're seeing delays in how quickly that funding is getting to the market. We believe this funding will have more significant impact in the 2024 construction season with steady growth through 2025 and 2026.

轉向基礎設施。我們繼續看到，在老化的基礎設施以及《基礎設施投資和就業法案》提供的資金的推動下，積極的中長期市場基本面。這筆資金將支持道路基礎設施的增量投資，但與該領域的許多其他公司一樣，我們看到資金進入市場的速度出現了延遲。我們相信這筆資金將對 2024 年施工季節產生更顯著的影響，並在 2025 年和 2026 年保持穩定增長。

Even with the IIJA delays, overall transportation and construction contract awards leading into the spring have encouragingly increased over the prior year. This serves as a leading indicator for sales activity and continues to show signs of strengthening. The Road Zipper sales funnel remain steady. And although we do not currently expect any large project will be delivered in our fourth quarter, we do see incremental growth in our lease portfolio due to additional projects in new states. This should drive a stronger backlog going into fiscal year '24.

儘管 IIJA 有所延遲，但進入春季的總體運輸和建築合同授予量仍較上一年出現了令人鼓舞的增長。這是銷售活動的領先指標，並繼續顯示出走強的跡象。 Road Zipper 銷售渠道保持穩定。儘管我們目前預計第四季度不會交付任何大型項目，但由於新州的額外項目，我們確實看到了我們的租賃組合的增量增長。這應該會推動 24 財年的積壓量增加。

I'd now like to turn the call over to Brian to discuss our third quarter financial results. Brian?

我現在想把電話轉給布萊恩，討論我們第三季度的財務業績。布萊恩？

Thank you, Randy, and good morning, everyone. Total revenues for the third quarter of fiscal 2023 were $164.6 million compared to $214.3 million in the same quarter last year. Most of the decline in consolidated revenues came from the Irrigation segment as Infrastructure revenues were down slightly compared to the prior year. .

謝謝你，蘭迪，大家早上好。 2023 財年第三季度的總收入為 1.646 億美元，而去年同期為 2.143 億美元。綜合收入的下降大部分來自灌溉部門，因為基礎設施收入與上年相比略有下降。 。

Operating income for the quarter was $27 million compared to $35.2 million in the same quarter last year. Operating margin for the quarter was 16.4% of sales consistent with the prior year quarter. This solid operating margin performance was supported by gross margin improvement exhibited in both business segments, while operating expenses were comparable to the prior year.

本季度營業收入為 2700 萬美元，去年同期為 3520 萬美元。本季度營業利潤率為銷售額的 16.4%，與去年同期持平。這一穩健的營業利潤率表現得益於兩個業務部門毛利率的改善，而營業費用與上一年相當。

Net earnings for the quarter were $16.9 million or $1.53 per diluted share compared to net earnings of $25.1 million or $2.28 per diluted share in the prior year. Lower net earnings resulted largely from lower operating income. Earnings performance was also impacted by foreign currency transaction losses in the current year compared to gains in the prior year and from a higher effective income tax rate compared to the prior year. This increase in the effective tax rate reflected a greater proportion of earnings in higher rate foreign jurisdictions, primarily Brazil, compared to the prior year.

本季度淨利潤為 1,690 萬美元，即稀釋後每股收益 1.53 美元，而上一年淨利潤為 2,510 萬美元，即稀釋後每股收益 2.28 美元。淨利潤下降主要是由於營業收入下降。與上一年相比，本年度的外幣交易損失以及與上一年相比更高的有效所得稅率也影響了盈利表現。有效稅率的增加反映了與上一年相比，較高稅率的外國司法管轄區（主要是巴西）的收入比例更大。

Moving on to the Irrigation segment performance for the quarter. Irrigation segment revenues for the third quarter were $142.6 million compared to $188.7 million in the same quarter last year. North America irrigation revenues were $75 million compared to $96.2 million in the same quarter last year. The decline in revenues resulted primarily from lower unit sales volumes while average selling prices were comparable to the prior year.

接下來是本季度灌溉部門的業績。第三季度灌溉部門收入為 1.426 億美元，去年同期為 1.887 億美元。北美灌溉收入為 7500 萬美元，而去年同期為 9620 萬美元。收入下降主要是由於單位銷量下降，而平均售價與上年相當。

Lower unit sales volumes resulted primarily from farmers delaying capital investment decisions for the reasons Randy cited earlier. We believe this will result in farmers deferring purchases to later in the calendar year when the profitability of the current crop year becomes more apparent.

單位銷量下降主要是由於蘭迪之前提到的原因，農民推遲了資本投資決策。我們認為，這將導致農民將購買推遲到日曆年晚些時候，屆時當前作物年度的盈利能力變得更加明顯。

In the international irrigation markets, revenues were $67.5 million compared to $92.5 million in the same quarter last year. This decrease resulted primarily from lower sales volumes in Brazil, Australia, Ukraine and Russia compared to the prior year third quarter. We expect sales volumes in Brazil to increase in the fourth quarter, supported by the new subsidized government financing program that Randy mentioned.

在國際灌溉市場，收入為 6750 萬美元，而去年同期為 9250 萬美元。這一下降主要是由於巴西、澳大利亞、烏克蘭和俄羅斯的銷量與去年第三季度相比有所下降。我們預計，在蘭迪提到的新補貼政府融資計劃的支持下，第四季度巴西銷量將增加。

Total irrigation segment operating income for the third quarter was $30.7 million compared to $39.6 million in the same quarter last year. Operating margin represented 21.6% of sales, marking an increase from 21.0% of sales in the prior year. This increase in operating margin resulted from gross margin expansion driven by improved price realization and operating performance compared to the prior year.

第三季度灌溉部門的總營業收入為 3,070 萬美元，而去年同期為 3,960 萬美元。營業利潤率佔銷售額的 21.6%，較上年佔銷售額的 21.0% 有所上升。營業利潤率的增長是由於與上一年相比，價格實現和經營業績的改善推動了毛利率的增長。

Moving to the Infrastructure segment. Infrastructure segment revenues for the third quarter were $22 million compared to $25.6 million in the same quarter last year. An increase in Road Zipper lease revenue was more than offset by lower Road Zipper project sales and lower sales of road safety products compared to the prior year. Infrastructure segment operating income for the third quarter was $3.6 million compared to $3.8 million in the same quarter last year. Operating margin for the quarter was 16.2% of sales, which increased from 14.8% of sales in the prior year. This improved operating margin performance resulted from gross margin expansion attributed to a more favorable margin mix of revenue and from improved price realization compared to the prior year.

轉向基礎設施領域。第三季度基礎設施部門收入為 2200 萬美元，而去年同期為 2560 萬美元。與上一年相比，Road Zipper 租賃收入的增長被 Road Zipper 項目銷售額的下降和道路安全產品銷售額的下降所抵消。第三季度基礎設施部門營業收入為 360 萬美元，去年同期為 380 萬美元。本季度營業利潤率為銷售額的 16.2%，高於去年同期的 14.8%。營業利潤率表現的改善得益於更有利的收入利潤率組合帶來的毛利率擴張以及與上一年相比價格實現的改善。

Turning to the balance sheet and liquidity. Our balance sheet remains very solid, and our total available liquidity at the end of the quarter was $194 million with $144 million in cash, cash equivalents and marketable securities, with an additional $50 million of undrawn capacity on our revolving credit facility. Through solid operating performance and effective working capital management, we expect our improved free cash flow generation to continue for the balance of fiscal 2023. This stronger cash flow will be strategically beneficial as it will further enhance our ability to act opportunistically by investing in growth opportunities, creating meaningful value for our shareholders.

轉向資產負債表和流動性。我們的資產負債表仍然非常穩健，季度末的可用流動資金總額為 1.94 億美元，其中現金、現金等價物和有價證券為 1.44 億美元，循環信貸額度還有 5000 萬美元的未提取能力。通過穩健的經營業績和有效的營運資本管理，我們預計 2023 財年的自由現金流生成將繼續改善。這種更強勁的現金流將具有戰略意義，因為它將進一步增強我們通過投資增長機會採取機會主義行動的能力，為我們的股東創造有意義的價值。

At this time, I'd like to turn the call over to the operator to take your questions.

現在我想把電話轉給接線員來回答你的問題。

(Operator Instructions) The first question comes from Nathan Jones with Stifel.

（操作員說明）第一個問題來自 Stifel 的 Nathan Jones。

I would like to start off on the commentary that you made about farmer uncertainty shifting demand from what's normally a spring selling season into the fall. I think that's maybe the first time ever I've heard an irrigation supply, I talk about demand shifting into the fall where you're typically seeing the crop grown people aren't out there, generally installing equipment on top of that crop. Can you just give us some more detail on the dynamics around that and why it is that you think that demand shift into the fall, I would have thought that if it was shifting, it would have probably shifted into next spring.

我想首先談談您對農民的不確定性將需求從通常的春季銷售季節轉移到秋季的評論。我想這可能是我第一次聽說灌溉供應，我談到需求轉移到秋季，你通常會看到農作物種植者不在那裡，通常在農作物上安裝設備。您能否給我們提供一些有關動態的更多詳細信息，以及為什麼您認為需求會轉移到秋季，我本以為如果發生轉移，它可能會轉移到明年春天。

Yes, I can take that one, Nathan. And it really comes down to what we've seen historically in terms of behavior, and you understand the seasonality of our business. We have installations going into spring and then season of use through summer, fall harvest and then we have a fall selling and installation season. And we really still believe firmly in the fundamentals of the ag market. And if you look at net farm income, as we said in our comments, this is going to be the third highest net cash farm income in the last 10 years.

是的，我可以接受，內森。這實際上取決於我們歷史上所看到的行為，並且您了解我們業務的季節性。我們的安裝進入春季，然後是夏季的使用季節，秋季收穫，然後是秋季的銷售和安裝季節。我們仍然堅信農業市場的基本面。如果你看一下農場淨收入，正如我們在評論中所說，這將是過去 10 年來第三高的農場淨現金收入。

There's going to be a lot of profits in the segment. And customers in the spring, where we're active in quoting. They were looking at specific fields, specific machines. They just weren't ready to pull the trigger, and we've confirmed that over and over again. Our time -- with our time in the market. So our view is there's a lot of machines in the funnel, if you will, that are ready to go. And as customers wrap up harvest and they finalize their tax situation, there's going to be more of that fall to December 31 type of business that they're going to be willing to invest in.

該領域將會有很多利潤。而春季的客戶，我們積極報價。他們正在研究特定的領域、特定的機器。他們只是還沒有準備好扣動扳機，我們已經一遍又一遍地證實了這一點。我們的時間——我們在市場上的時間。所以我們的觀點是，如果你願意的話，漏斗中有很多機器已經準備好了。隨著客戶結束收穫並最終確定稅務情況，他們將願意投資更多截至 12 月 31 日的秋季業務類型。

So to me, again, when this segment is profitable, they've proven historically, they're going to make investments and an investment in irrigation system is one of the best ROI investments they can make and our belief is that business will shift to the fall.

因此，對我來說，再次，當這個細分市場盈利時，他們從歷史上已經證明，他們將進行投資，而對灌溉系統的投資是他們可以進行的最佳投資回報率投資之一，我們相信業務將轉向秋天。

Okay. So what you're saying is not that it shifts to during the growing season, you're saying it after the harvest late fall kind of late in your fiscal first quarter or early into your fiscal second quarter?

好的。那麼，您所說的並不是在生長季節期間發生的變化，而是在秋末收穫之後，即第一財季末或第二財季初？

Exactly. It would probably be in that fiscal year first quarter for us. That will be post harvest installations, you got it.

確切地。對我們來說，這可能是在該財年的第一季度。這將是收穫後的安裝，你明白了。

Got it. That makes more sense. And then my follow-up question was on gross margins. Obviously, they've been pretty volatile over the last couple of years, we've followed the price changes in steel. They've started to settle down here a bit more into kind of that low 30s area. Is that an area where you think gross margins are sustainable? Does the drop in demand here in '23 give you any pause for concern on pricing that might put the pressure on gross margin? Or just any more commentary you can give us around that. .

知道了。這更有意義。然後我的後續問題是毛利率。顯然，過去幾年它們的波動相當大，我們一直在關注鋼材價格的變化。他們已經開始在這裡定居下來，更接近 30 多歲的區域。您認為該領域的毛利率是可持續的嗎？ 23 年需求下降是否會讓您暫停考慮可能給毛利率帶來壓力的定價？或者您可以就此向我們提供更多評論。 。

Yes, Nathan, this is Brian. Yes, I think first of all, on gross margin, it can vary quarter-to-quarter just due to the seasonality of the business and also can go up and down depending on the project activity. But I would say, over the last few quarters as the inflationary environment has stabilized, our gross margin. We've seen the enhancement as we've gotten the full price realization. I think this most recent quarter reflected more improvement actually in our international business as some of that price realization was a little bit later to curve than what we had seen in North America.

是的，內森，這是布萊恩。是的，我認為首先，就毛利率而言，它可能會因業務的季節性而按季度變化，也可能會根據項目活動而上下波動。但我想說，在過去幾個季度，隨著通脹環境的穩定，我們的毛利率有所穩定。當我們獲得全價實現時，我們已經看到了增強。我認為最近一個季度反映了我們國際業務的實際改善，因為部分價格實現的曲線比我們在北美看到的要晚一些。

But if you look at it across the course of the year, I think gross margins in that 30% to 31% range would be expected. Again, depending on level of project activity in one quarter or another. If you had a project on the infrastructure side, obviously, that would drive higher margins. A large project on the irrigation side might be somewhat dilutive.

但如果你從全年來看，我認為毛利率在 30% 到 31% 的範圍內是可以預期的。同樣，取決於一個季度或另一個季度的項目活動水平。如果你有一個基礎設施方面的項目，顯然，這會帶來更高的利潤。灌溉方面的大型項目可能會有所稀釋。

Our next question comes from Brian Drab with William Blair.

我們的下一個問題來自布萊恩·德拉布和威廉·布萊爾。

Can I just follow on to Nathan's question there on gross margin, just to be clear. The comment that you just made on gross margin, which I think you just said like 30%, 31% range over a year. Is that something sustainable going forward like into fiscal '24, fiscal '25? Is this the idea -- is it above where the [Street] expectation is and has been?

我可以繼續回答內森關於毛利率的問題嗎，只是為了澄清一下。您剛才對毛利率的評論，我認為您剛剛說過一年內毛利率在 30% 到 31% 之間。這是否會像 24 財年、25 財年那樣可持續發展？這是這個想法嗎——它是否高於[街道]的期望現在和過去的水平？

Yes, Brian, our expectation we would be able to maintain that. I think as we've come through this inflationary environment, we have -- and with demand levels picking up, particularly internationally. We've seen the margins improve, gross margin and operating margins. So our expectation is that would carry forward into next year.

是的，布萊恩，我們期望能夠保持這一點。我認為，當我們經歷了這種通脹環境時，隨著需求水平的上升，尤其是國際上的需求水平的上升。我們看到利潤率、毛利率和營業利潤率都有所提高。所以我們的期望是這將延續到明年。

Okay. And then just on margins still. You mentioned that some of this demand could end up shifting into the early fall in the Irrigation segment. And does that potentially help your capacity absorption in that period relative to a normal year where margin could be supported in your fiscal fourth quarter as a result of that or maybe early part of fiscal '24?

好的。然後仍然處於邊緣狀態。您提到，部分需求最終可能會轉移到灌溉領域的初秋。與正常年份相比，這是否可能有助於您在該時期吸收產能，因為正常年份或可能在 24 財年早期，您的第四財季利潤率可能得到支持？

Yes. I would think from a margin standpoint, again, with our first quarter, starting in September, somewhat preharvest yet. There would be definitely some support if volumes are higher and more likely into the second quarter.

是的。我認為，從利潤率的角度來看，從九月開始的第一季度，我們還處於收穫前階段。如果銷量更高並且更有可能進入第二季度，肯定會有一些支撐。

Okay. And then just -- I mean, I guess -- last question, just on the headline really here, which is that your irrigation down more than 20% in the quarter. Just could you just go back -- you've talked about some of the dynamics here. But could you go back just to be really clear, that some of the factors and maybe rank order them for me, just so I understand, like what do you think is the biggest challenges? And I'm just thinking about like is it macro uncertainty, still farmers getting late to the field, weather conditions? What's the most important factor in kind of down the list rank order?

好的。然後 - 我的意思是，我想 - 最後一個問題，就在標題上，即本季度的灌溉量下降了 20% 以上。您能回去嗎？您已經在這裡討論了一些動態。但你能否回去明確一下，一些因素，也許還有排名，為我排序，只是為了讓我理解，比如你認為最大的挑戰是什麼？我只是在想，是不是宏觀不確定性、農民遲到了田地、天氣狀況？影響列表排名順序的最重要因素是什麼？

Yes. Brian, I can take that one. And I think the headline is really about customer sentiment and profit certainty. And I think a lot of the customers, and I spent a lot of time with them this growing season. the sentiment is, you know what, I'm pretty sure I'm going to be profitable this year. I'm not sure how profitable. And I won't know more until I lock in more of my crop. I get closer to fall harvest and see what yields are going to do. This drought that's kind of moving into Iowa, Illinois, the eastern Corn Belt right now, that provided some strong short-term support for pricing. If it rains or has rains, the market responds, and you lose a little bit of price, if it gets dry again, you're going to gain a bit of price.

是的。布萊恩，我可以接受那個。我認為標題實際上是關於客戶情緒和利潤確定性的。我認為有很多客戶，在這個生長季節我花了很多時間和他們在一起。我的情緒是，你知道嗎，我很確定今年我會盈利。我不確定利潤如何。在我鎖定更多作物之前我不會知道更多。我越來越接近秋季收穫，看看產量會如何。這場乾旱目前正在蔓延到愛荷華州、伊利諾伊州東部玉米種植帶，這為價格提供了一些強有力的短期支撐。如果下雨或下雨，市場會做出反應，你會損失一點價格，如果天氣再次乾燥，你會獲得一點價格。

So there's so many moving pieces right now if you're a grower, figuring out how to market and sell your crop and what your ultimate profitability is going to be. I think in that environment, those are the big drivers. And I think interest rates, general economic uncertainty, there's a lot of other noise in the market that I don't think contributes directly to the decision, but it's more about that profitability. And I'll wait until the fall when I know I've got my grain sold, I know when my financial position is going to be. I maybe even completed my taxes, I know I've got some room to make investments. That's really what we believe we're seeing.

因此，如果您是種植者，那麼現在有很多移動的事情，要弄清楚如何營銷和銷售您的作物以及您的最終盈利能力是多少。我認為在那種環境下，這些是重要的驅動因素。我認為利率、總體經濟不確定性以及市場上還有很多其他噪音，我認為這些噪音不會直接影響決策，但更多的是關於盈利能力。我會等到秋天，那時我知道我的糧食已經賣掉了，我知道我的財務狀況何時會怎樣。我什至可能完成了我的納稅，我知道我還有一些投資空間。這確實是我們相信我們所看到的。

Our next question comes from Ryan Connors with Northcoast Research Partners.

我們的下一個問題來自 Northcoast Research Partners 的 Ryan Connors。

My question was on the issue of can you frame for us the issue of price relative to volume? And to what extent they're a function of one another? In other words, I understand your desire to want to maintain the pricing discipline. But do you think maintaining price as the environment gets more uncertain, contributes to maybe some volume pressure? Or just curious your take on that.

我的問題是您能否為我們闡述價格相對數量的問題？它們在多大程度上是彼此的函數？換句話說，我理解您希望維持定價紀律的願望。但您認為，隨著環境變得更加不確定，維持價格是否會造成一定的銷量壓力？或者只是好奇你對此的看法。

Yes, this is Brian. I would say in the market environment that we're in today, price has not become -- price has not been the main point of discussion. As Randy mentioned, a lot of the just the uncertainty in the environment, lowering price isn't going to convince a farmer to buy right now. And so we've been disciplined on that. When you look at Brazil and the delay that we've seen there with the government transition, a lot of that was tied to waiting for this new financing program to be announced.

是的，這是布萊恩。我想說，在我們今天所處的市場環境中，價格還沒有成為討論的重點。正如蘭迪提到的，由於環境的不確定性，降低價格並不能說服農民立即購買。所以我們在這方面一直受到紀律處分。當你看看巴西以及我們在政府過渡過程中看到的延遲時，你會發現其中很大一部分與等待新的融資計劃宣布有關。

Again, lowering price is not going to drive volume in that situation. They're going to wait until they know what the financing program is all about because it's -- a lot of the purchases are highly dependent on that. So in this environment, it's not been a price environment that's going to drive additional volume. So we've been disciplined on maintaining our prices.

同樣，在這種情況下，降低價格不會增加銷量。他們將等到知道融資計劃的全部內容為止，因為很多購買都高度依賴於此。因此，在這種環境下，價格環境不會推動銷量增加。因此，我們一直嚴格遵守維持價格的原則。

I think the -- another thing that could contribute to the wait-and-see approach is just maybe prices will fall in its steel costs soften, but that's not our view today, either as we've seen the steel mills really be disciplined on their capacity. And so we're not expecting any precipitous drop in steel costs going forward either.

我認為，另一件可能導致觀望的事情是，隨著鋼鐵成本的走軟，價格可能會下跌，但這不是我們今天的觀點，因為我們已經看到鋼廠確實受到了紀律處分。他們的能力。因此，我們預計未來鋼鐵成本也不會急劇下降。

Got it. Okay. And then I take from that, Brian, that's -- that you're not aware of any others that have not taken the same approach to maintain discipline on pricing. In other words, if that's not going to be an effective strategy, I assume the market's been (inaudible) acting in terms of that.

知道了。好的。布萊恩，我從中得出的結論是，你不知道還有其他人沒有採取同樣的方法來維持定價紀律。換句話說，如果這不是一個有效的策略，我認為市場已經（聽不清）按照這種策略行事。

Yes, we're not getting any feedback from our dealers or regional sales people that we're losing orders based on price. We obviously have the ability to respond if that were the case, but that's not been the case.

是的，我們沒有從經銷商或區域銷售人員那裡得到任何關於我們因價格而失去訂單的反饋。如果是這種情況，我們顯然有能力做出回應，但事實並非如此。

Got it. Okay. And then my other 1 just was a quick 1 on Infrastructure. Especially the leasing revenue again sort of outpacing the actual product sales. Is leasing just a future for Road Zipper now? Is that just a model that seems to be really gaining traction with more customers? Or is that more of a -- is that something that will ebb and flow going forward?

知道了。好的。然後我的另一個 1 就是關於基礎設施的快速 1。尤其是租賃收入再次超過了實際產品銷售。租賃現在只是 Road Zipper 的未來嗎？這只是一種似乎真正吸引更多客戶的模式嗎？或者這更像是一種未來會潮起潮落的東西？

Ryan, this is Randy. I'll take that one. And there is going to be some ebb and flow, and we've really had a focused effort on lease because lease can be a little more predictable in terms of revenue stream. And when we work on those large sales projects for permanent installation on a bridge like Golden Gate as an example, there's a pretty long gestation period there, but leasing is really connected to the construction season. That's going to come every summer in markets where we can start to develop those leasing programs.

瑞安，這是蘭迪。我會接受那個。將會有一些潮起潮落，我們確實在租賃方面下了很大的功夫，因為租賃在收入流方面更容易預測。以金門大橋為例，當我們在金門大橋上進行永久性安裝的大型銷售項目時，那裡有一個相當長的醞釀期，但租賃確實與施工季節相關。每年夏天，我們可以開始開發這些租賃計劃的市場都會出現這種情況。

So I think in terms of revenue mix, we're going to see more opportunities in growth in that lease funnel. It's been a very specific area of strategic focus for us, and we do expect that to continue growing. But again, quarter-to-quarter, period to period, we could see more of that mix one way or the other depending on what's exiting the funnel at any given time. But leasing should certainly make it a little more smoothing out and make a little more predictable.

因此，我認為就收入組合而言，我們將在租賃渠道中看到更多增長機會。這對我們來說是一個非常具體的戰略重點領域，我們確實希望這一領域能夠繼續增長。但同樣，每個季度、每個時期，我們都可以看到更多的這種混合方式，具體取決於在任何給定時間離開漏斗的內容。但租賃肯定會讓事情變得更加平滑，並且更加可預測。

Our next question comes from Brian Wright with ROTH MKM.

我們的下一個問題來自 ROTH MKM 的 Brian Wright。

I wanted to know, you mentioned again about the investment opportunity in the capital position. And just kind of given the current environment, is that creating maybe more opportunity as far as sellers and buyers kind of getting closer to pricing kind of levels? Or we're still in the earlier stages of just looking at the landscape of what's out there?

我想知道，您又提到了資本頭寸的投資機會。考慮到當前的環境，這是否會為賣家和買家創造更多機會，讓他們更接近定價水平？或者我們仍處於早期階段，只是觀察外面的情況？

This is Brian. I'll take that. I don't think it's having necessarily an impact on valuations or pricing. We've indicated before, we see a lot of opportunities in this environment, just coming off of a couple of strong years in the ag market and where we're focused on is in the area of technology and areas that we can continue to build on our capabilities with our technology and increase market penetration of our technology.

這是布萊恩。我會接受的。我認為這不一定會對估值或定價產生影響。我們之前曾表示，我們在這種環境中看到了很多機會，剛剛結束了農業市場的幾年強勁表現，我們重點關注的是技術領域和我們可以繼續建設的領域我們的技術能力，並提高我們技術的市場滲透率。

So the increased level of focus that we've put on it with having Brian Magnusson move into a full-time role in this area, I think that's what creates optimism from our standpoint that we'll see some activity in that area.

因此，隨著布萊恩·馬格努森 (Brian Magnusson) 在該領域擔任全職職務，我們對這一問題的關注度有所提高，我認為從我們的角度來看，這就是我們會看到該領域出現一些活動的樂觀情緒的原因。

(Operator Instructions) Our next question comes from Brett Kearney with Gabelli Fund.

（操作員說明）我們的下一個問題來自 Gabelli 基金的 Brett Kearney。

You guys touched on this a bit already, but just curious, the latest update on how the drought conditions particularly in North America kind of impacting and your expectations going forward customers thinking opportunities, I guess, on that scale of -- it's an incremental opportunity for Lindsay versus getting to the level where potentially too severe going forward.

你們已經觸及了這一點，但只是好奇，關於乾旱狀況，特別是北美的干旱狀況如何影響的最新更新，以及您對未來客戶思考機會的期望，我想，在這種規模上——這是一個增量機會對於林賽來說，不要達到未來可能過於嚴厲的水平。

Sure, Brett. I'll take that one. This is Randy. If you look at the draw maps, you really see Eastern Nebraska, Kansas, just lit up with extreme drought. There's pockets in Iowa and heading now into Illinois, Indiana, and we don't have a large installed base in that eastern Corn Belt. It's a market that traditionally gets timely precipitation. We do have some seed corn growers that are mandated (inaudible) irrigation we see there. So the bigger impact is likely on supply disruption. And when we see supply disruption, then we'll see commodity price support. And if you're an irrigator, you've got good yield because you know you've been able to water when you needed it. Now you've got good price support.

當然，布雷特。我會接受那個。這是蘭迪。如果你看一下繪製的地圖，你真的會看到堪薩斯州內布拉斯加州東部剛剛被極度乾旱所照亮。愛荷華州有一些地區，現在正在進入伊利諾伊州、印第安納州，而我們在東部玉米帶沒有大型安裝基地。這是一個傳統上得到及時沉澱的市場。我們確實看到一些玉米種子種植者被強制（聽不清）灌溉。因此，更大的影響可能是供應中斷。當我們看到供應中斷時，我們就會看到大宗商品價格得到支撐。如果您是灌溉者，您就會獲得良好的產量，因為您知道自己能夠在需要時澆水。現在您已經獲得了良好的價格支持。

So in general, what we're seeing now in terms of drought is, in our view, going to be supportive for the business because it's going to be supportive of price. I don't know in my view that I would predict that eastern Corn belt market heats up for us. We did see some of that business back in that 12, 13 period during that historic drought in that part of the world. I'm not sure that it's going to get severe enough that it will drive results in the short term, but I correlate it back to strong commodity prices, irrigators are going to have strong yields. That combination is going to prop up farm income, and we feel could be very supportive for the business.

因此，總的來說，我們認為，我們現在所看到的干旱將有利於業務，因為它將有利於價格。我不知道我是否會預測東部玉米帶市場會為我們升溫。我們確實在 12、13 世紀那個地區發生歷史性乾旱期間看到了一些這樣的業務。我不確定這種情況是否會變得足夠嚴重，從而在短期內推動業績，但我將其與強勁的大宗商品價格聯繫起來，灌溉者將獲得強勁的收益。這種結合將增加農場收入，我們認為這可能對業務產生很大的支持。

Excellent. And maybe if I could just sneak in 1 additional 1 on the infrastructure side. You definitely have heard from a number of other folks on kind of the various constraints that transportation projects have had kind of moving forward, I know you guys interact at a few levels with states departments transportation. So just curious kind of the data points you're hearing and the feedback, whether it's labor or construction crews materials are kind of what some of the major bottlenecks on the road safety product [set].

出色的。也許我可以在基礎設施方面再增加 1 個。你們肯定已經從其他一些人那裡聽說過交通項目向前發展所面臨的各種限制，我知道你們在幾個層面上與國務院交通部門進行了互動。因此，您所聽到的數據點和反饋令人好奇，無論是勞動力還是施工人員的材料，都是道路安全產品的一些主要瓶頸。

Yes. I think the ones you've mentioned, we've heard about inflation early on, really impacted project flow and then some projects had to get requoted and rebid because the costs they were quoted under had moved due to inflationary concerns. Access to labor, access to equipment. We've heard both of those things and the ability to kind of get this money to the road. And I think most recently, it's really more about administration and just the paper flow and approval flow to get this money into the bank account, so it can be spent.

是的。我認為你提到的那些，我們很早就听說過通貨膨脹，確實影響了項目流程，然後一些項目不得不重新報價和重新投標，因為它們所報價的成本由於通貨膨脹問題而發生了變化。獲得勞動力、獲得設備。我們已經聽說過這些事情以及將這筆錢用於道路的能力。我認為最近，更多的是關於管理，只是將這些錢存入銀行賬戶的文件流程和審批流程，以便可以花掉。

So it's a combination of factors. But like you, Brett, we're following some of the public companies in the space, and we're hearing a lot of consistent stories working with, listening to the association of equipment manufacturers, [AED], those organizations. This does appear to be an industry phenomenon. But the good news is, and we'll talk a lot about any additional funding is supportive for strong markets. And we're okay being patient, and we do see, again, some longer-term potential going as far out as 2026, where we think we're -- we'll have some long-term stability and benefit here.

所以這是多種因素的結合。但像你一樣，Brett，我們正在關注該領域的一些上市公司，並且我們聽到了很多與設備製造商協會 [AED] 合作的一致故事。這似乎確實是一個行業現象。但好消息是，我們將大量討論任何額外資金都會支持強勁的市場。我們可以保持耐心，我們確實再次看到了一些長期潛力，遠至 2026 年，我們認為我們將在這裡獲得一些長期穩定性和收益。

Our next question comes from Bill Baldwin with Baldwin Anthony Securities.

我們的下一個問題來自鮑德溫安東尼證券公司的比爾鮑德溫。

Initially, I was going to see what you're thinking now about the level of capital expenditure here in '23. And if you can, what's kind of the nature of the projects that are being focused on in that area?

最初，我想了解一下您現在對 23 年資本支出水平的看法。如果可以的話，該領域正在關注的項目的性質是什麼？

Yes, Bill, it's Brian. For 2023, we're probably going to end up in that $15 million to $20 million range. I think we've been looking across our manufacturing footprint to look at where we can add productivity-type investments. You look at a market like Brazil and our facility in Turkey, where there could be a need for additional capacity expansion. But I would say as we go into 2024, the level of CapEx could pick up as we look at ways to continue to improve our overall efficiency. And -- but this year, we should end up in that $15 million to $20 million range.

是的，比爾，是布萊恩。到 2023 年，我們最終的支出可能會在 1500 萬美元到 2000 萬美元之間。我認為我們一直在審視我們的製造足跡，看看我們可以在哪裡增加生產力類型的投資。您看看像巴西這樣的市場和我們在土耳其的工廠，那裡可能需要額外的產能擴張。但我想說，隨著我們進入 2024 年，隨著我們尋找繼續提高整體效率的方法，資本支出水平可能會上升。但今年，我們的收入應該在 1500 萬美元到 2000 萬美元之間。

Okay. 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?

好的。在基礎設施方面，我知道您之前已經討論過這個問題，但已經有一段時間沒有對此發表評論了。您能否向我們介紹一下 Road Zippers 項目主要適合基礎設施項目的一些概述或細節？那些進入交通系統早期設計的領域，它們是否會永久連續使用？或者說購買 Road Zipper 的主要用途到底是什麼？

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 [JA] funding too is you'll see that first as the road construction starts.

是的。不，這是一個很好的問題，因為 Road Zipper 可以以多種不同的方式使用。我們談到了租賃事宜，通常會在施工期間使用。這是一種可以促進施工計劃並在項目期間提供工人安全的方式。所以我們看到了這一點的上升。這也是 [JA] 資金到位的早期指標，隨著道路建設的開始，您將首先看到這一點。

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.

當談到永久性安裝時，我們認為隨著更多重大項目的規劃和擴大道路，特別是進出交通繁忙的城市，我們也會看到一些機會，您可以在永久安裝中使用 Road Zipper 來提供靈活的車道。這是一個選擇。

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.

另一項是解決現有的擁堵問題。最好的例子是一座通往城市的橋樑。這些只是一些例子，這是一個全球解決方案。我們在世界各地的各個國家都取得了成功，並繼續看到機會。

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 this, in the project itself.

您是否發現自己能夠進入這些永久性項目的早期設計階段，我們在這裡討論的這些項目具有更永久性的性質？我知道你的重點之一是嘗試進行早期設計，在項目本身中將 Road Zipper 設計融入其中。

Yes, that was really part of that shift left strategy we implemented 3 years ago or so really getting a seat at the table so that we could explain how Road Zipper can be used in a variety of different applications.

是的，這確實是我們大約 3 年前實施的左移策略的一部分，真正獲得了席位，以便我們可以解釋 Road Zipper 如何在各種不同的應用中使用。

And is that working well? Is that working for you?

這運作良好嗎？這對你有用嗎？

Yes, we're definitely seeing some traction from that.

是的，我們確實看到了一些吸引力。

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 2 areas?

極好的。好的。非常好。最後，這裡只是一個數字問題。您能否提供有關俄羅斯和烏克蘭同比收入下降情況的任何見解？這兩個領域的收入下降了多少？

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 3 quarters. It's probably approaching $20 million.

我們在過去幾個季度討論過這個問題。去年第三季度，我們完成了積壓的訂單。如果你僅從年初至今的前三個季度來看的話。可能接近2000萬美元。

(Operator Instructions) Showing no further questions, I would like to turn the conference back over to Randy Wood for any closing remarks.

（操作員指示）由於沒有其他問題，我想將會議轉回蘭迪·伍德進行閉幕致辭。

Great, and thank you for your interest and participation in today's conference call. As mentioned, we're pleased with the underlying fundamentals of our Irrigation segment. And although the spring season did not materialize as projected, our business continues to demonstrate resiliency as shown by our strong operating margins during the quarter.

非常好，感謝您對今天的電話會議的興趣和參與。如前所述，我們對灌溉部門的基本面感到滿意。儘管春季銷售季並未按預期實現，但我們的業務繼續表現出彈性，本季度強勁的營業利潤率就表明了這一點。

International project interest remains high, and we're actively quoting several of these opportunities in various regions around the world. We continue to create value with our technology partnership strategy. And we're very excited to see the value of the collaboration with Pessl flow through to our joint customers. The Infrastructure segment is also supported by strong market fundamentals and the incremental funding available through the IIJA. As that funding is released to the market, we believe we're well positioned to capitalize on market growth.

國際項目的興趣仍然很高，我們正在世界各地積極引用其中的一些機會。我們繼續通過技術合作夥伴戰略創造價值。我們非常高興看到與 Pessl 合作的價值惠及我們的共同客戶。基礎設施部門還得到強勁的市場基本面和通過 IIJA 提供的增量資金的支持。隨著資金釋放到市場，我們相信我們已做好充分利用市場增長的準備。

This concludes our third quarter earnings call. We look forward to updating you on our continued progress at the end of our fiscal year. Thanks for joining us.

我們的第三季度財報電話會議到此結束。我們期待在本財年結束時向您通報我們的持續進展情況。感謝您加入我們。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。