Lindsay Corp (LNN) 2023 Q4 法說會逐字稿

Hello, and welcome to the Lindsay Corporation Fourth Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Randy Wood, President and CEO. Please go ahead.

您好，歡迎參加 Lindsay Corporation 2023 年第四季財報電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將會議交給總裁兼執行長蘭迪伍德 (Randy Wood)。請繼續。

Thank you, Anne. Good morning, everyone. Welcome to our fourth quarter and full year earnings call. With me today is Brian Ketcham, our Chief Financial Officer.

謝謝你，安妮。大家，早安。歡迎參加我們的第四季和全年財報電話會議。今天和我在一起的是我們的財務長 Brian Ketcham。

Fiscal 2023 marked a year of significant achievements for Lindsay. Our teams executed extremely well across both of our business segments, which helped deliver record full year net earnings and earnings per share results. Fourth quarter performance was highlighted by strong irrigation results, specifically in Brazil, which recorded record levels of revenue and operating income. Our commercial efforts, including price management, coupled with the efficiency initiatives and organic growth in our international regions helped drive record operating income and operating margins within our irrigation business. These strong income results were achieved despite difficult year-over-year comps and a lower top line when compared to 2022.

2023 財政年度是 Lindsay 取得重大成就的一年。我們的團隊在兩個業務領域都表現得非常出色，這有助於實現創紀錄的全年淨利潤和每股收益結果。第四季業績突出的是強勁的灌溉業績，特別是在巴西，其收入和營業收入創下了歷史新高。我們的商業努力，包括價格管理，加上國際地區的效率舉措和有機成長，幫助我們的灌溉業務實現了創紀錄的營業收入和營業利潤。儘管同比比較困難且營收較 2022 年有所下降，但仍取得了這些強勁的營收成果。

Turning to market outlook. Similar to the comments I made last quarter, our market outlook for Lindsay's business segments and key end markets remains positive in the near term. As it relates to our North American irrigation end markets, current commodity prices and U.S. net farm income projections should continue to support healthy demand as we begin our fiscal 2024. While income for growers dipped slightly when compared to the record levels we saw a year ago, growers will be profitable this year. While customers did take a wait-and-see approach this spring, we're seeing evidence of a strong fall selling season based on year-over-year order trends.

轉向市場前景。與我上季發表的評論類似，我們對 Lindsay 業務部門和關鍵終端市場的市場前景在短期內仍然樂觀。由於與我們的北美灌溉終端市場相關，在我們開始2024 財年時，當前的大宗商品價格和美國農場淨收入預測應會繼續支持健康的需求。雖然種植者的收入與一年前的創紀錄水平相比略有下降，種植者今年將獲利。雖然今年春天客戶確實採取了觀望態度，但我們看到基於同比訂單趨勢的秋季銷售旺季的證據。

Within our international irrigation markets, we experienced strong growth during the fourth quarter, particularly across Brazil and South America. We expect international sales volume levels to remain robust in fiscal 2024, supported by strong fundamentals in the mature markets and the continued expansion and project potential in the emerging and developing markets where irrigation presents significant opportunities for yield enhancement to address food security and weather uncertainty.

在我們的國際灌溉市場中，我們在第四季度經歷了強勁的成長，特別是在巴西和南美洲。我們預計2024 財年國際銷售水準將保持強勁，這得益於成熟市場強勁的基本面以及新興和發展中市場的持續擴張和項目潛力，在這些市場中，灌溉為提高產量提供了重大機會，以解決糧食安全和天氣不確定性問題。

Turning to infrastructure. We continue to see positive near-term and long-term market opportunities driven by federal funding provided by the Infrastructure Investments and Jobs Act in the United States. This funding as it continues to be distributed will support necessary investments in roadway infrastructure, and we believe this will ultimately broaden our infrastructure sales and leasing pipeline. While comparisons were difficult relative to the prior year, where we benefited from a number of non-repetitive Road Zipper project wins, our focus on funnel management did generate leasing growth in 2023. Going forward, we see secular demand strength to both sales and leasing for Road Zipper and expect solid earnings support from our line of road safety products.

轉向基礎設施。我們繼續看到由美國《基礎設施投資和就業法案》提供的聯邦資金推動的積極的近期和長期市場機會。這筆資金繼續分配將支持道路基礎設施的必要投資，我們相信這最終將擴大我們的基礎設施銷售和租賃管道。雖然與前一年相比很難進行比較，去年我們受益於一系列非重複性Road Zipper 專案的勝利，但我們對漏斗管理的關注確實在2023 年帶來了租賃成長。展望未來，我們看到銷售和租賃的長期需求強勁Road Zipper 並期望我們的道路安全產品系列提供堅實的收入支援。

Moving to innovation and technology. Our team continues their deliberate focus of delivering customer first innovation, which will continue to strengthen our growth profile and projections. We were pleased to complete our acquisition of FieldWise during the fourth quarter of this year. FieldWise is a market leader in agricultural technology products with a focus on subscription-based precision irrigation solutions. This allows Lindsay to reach an expanded set of irrigation technology customers while accessing previously untapped growth markets and sales channels, opportunities like FieldWise, strengthen Lindsay's irrigation market position but also advance our integrated technology capabilities and overall ability to reach a broader set of customers and service providers globally.

轉向創新和技術。我們的團隊繼續專注於提供客戶至上的創新，這將繼續加強我們的成長概況和預測。我們很高興在今年第四季完成了對 FieldWise 的收購。 FieldWise 是農業技術產品的市場領導者，專注於基於訂閱的精準灌溉解決方案。這使Lindsay 能夠接觸到更多的灌溉技術客戶，同時進入以前未開發的成長市場和銷售管道，FieldWise 等機會不僅增強了Lindsay 的灌溉市場地位，而且還提高了我們的綜合技術能力和整體能力，以接觸更廣泛的客戶和服務全球供應商。

In the area of sustainability, we were pleased to release the fifth edition of our annual ESG report in our fourth quarter. This highlights our continued progress on our environmental, social and governance goals contributing to our mission of conserving natural resources, expanding our world's potential and enhancing quality of life. I'd like to thank our employees and team members for their ongoing hard work and dedication and advancing our vision to become the innovation and market leader in our core irrigation and infrastructure segments. I'd also like to thank our loyal customers and dedicated dealers around the world. Without the trust and confidence, we would not be able to achieve the record results we've delivered.

在永續發展領域，我們很高興在第四季度發布了第五版年度 ESG 報告。這凸顯了我們在環境、社會和治理目標方面不斷取得的進展，有助於我們保護自然資源、擴大世界潛力和提高生活品質的使命。我要感謝我們的員工和團隊成員持續的辛勤工作和奉獻精神，並推動我們成為核心灌溉和基礎設施領域的創新和市場領導者的願景。我還要感謝我們在世界各地的忠實客戶和敬業的經銷商。如果沒有信任和信心，我們將無法取得創紀錄的成果。

I'd like to now turn the call over to Brian to discuss our fourth quarter and full year financial results. Brian?

我現在想把電話轉給布萊恩，討論我們第四季和全年的財務表現。布萊恩？

Thank you, Randy, and good morning, everyone. Total revenues for the fourth quarter of fiscal 2023 decreased 12% to $167.1 million compared to $190.2 million in the same quarter last year. Net earnings for the quarter were $19.2 million or $1.74 per diluted share, each growing more than 7%, respectively, compared to net earnings of $17.9 million or $1.62 per diluted share in the prior year.

謝謝你，蘭迪，大家早安。 2023 財年第四季的總營收為 1.671 億美元，較去年同期的 1.902 億美元下降 12%。本季淨利潤為 1,920 萬美元或稀釋後每股收益 1.74 美元，分別增長超過 7%，而上一年淨利潤為 1,790 萬美元或稀釋後每股收益 1.62 美元。

Total revenues for the full year decreased 13% to $674.1 million compared to record revenues in the prior fiscal year of $770.7 million. Net earnings for fiscal 2023 were $72.4 million or $6.54 per diluted share compared to net earnings of $65.5 million or $5.94 per diluted share in the prior fiscal year. Performance that marked year-over-year growth of 11% and 10%, respectively. As Randy mentioned, this level of earnings is a record for the company, which is significant as efforts we've made to enhance our profitability have taken hold, irrespective of lower year-over-year top line performance.

與上一財年創紀錄的 7.707 億美元收入相比，全年總收入下降 13% 至 6.741 億美元。 2023 財年淨利為 7,240 萬美元，即稀釋後每股收益 6.54 美元，而上一財年淨利為 6,550 萬美元，即稀釋後每股收益 5.94 美元。業績年增 11% 和 10%。正如蘭迪所提到的，這一盈利水平對公司來說是創紀錄的，這很重要，因為我們為提高盈利能力所做的努力已經取得了成效，儘管同比營收業績有所下降。

Turning to our segment results. Irrigation segment revenues for the fourth quarter decreased 5% to $143.6 million compared to $150.5 million in the same quarter last year. North America irrigation revenues of $60.2 million decreased 25% compared to last year's fourth quarter. The decrease in North America is primarily attributable to lower unit sales volumes, while average selling prices were comparable with the prior year fourth quarter. Unit sales volumes in the prior year fourth quarter reflected an exceptional level of storm damage replacement demand, while unit sales volumes in the current year reflected a more normal seasonal demand profile. As previously noted, the incremental revenue impact from last year's storm damage replacement demand was estimated at approximately $20 million.

轉向我們的部門業績。第四季灌溉部門營收下降 5%，至 1.436 億美元，去年同期為 1.505 億美元。北美灌溉收入為 6,020 萬美元，比去年第四季下降 25%。北美地區的下降主要是由於單位銷售下降，而平均售價與去年第四季相當。去年第四季的單位銷售量反映了風暴損壞更換需求的異常水平，而今年的單位銷售量反映了更正常的季節性需求狀況。如前所述，去年風暴損壞更換需求對增量收入的影響估計約為 2,000 萬美元。

In international irrigation markets, revenues of $83.4 million increased 18% compared to last year's fourth quarter. The increase was primarily from higher sales volumes in Brazil, Argentina and the Middle East compared to the prior year fourth quarter. As we indicated on our third quarter call, we anticipated sales volumes in Brazil to increase in the fourth quarter. supported by the new government financing plan that was announced in June.

在國際灌溉市場，營收為 8,340 萬美元，比去年第四季成長 18%。這一成長主要是由於巴西、阿根廷和中東地區的銷售量較去年第四季有所增加。正如我們在第三季電話會議上表示的那樣，我們預計第四季度巴西的銷量將增加。受到六月宣布的新政府融資計劃的支持。

Total irrigation segment operating income for the fourth quarter was $29.8 million, an increase of 23% compared to the prior year fourth quarter, and operating margin was 20.7% of sales compared to 16.1% of sales in the prior year. The increase in operating income and operating margin resulted from gross margin expansion driven by improved price realization, reduced inflationary impact on input costs and improved operating performance in our factories compared to the prior year fourth quarter. This record level of profitability in the fourth quarter also was bolstered by record performance in Brazil.

第四季灌溉部門總營業收入為 2,980 萬美元，比去年第四季成長 23%，營業利潤率為銷售額的 20.7%，而去年同期為 16.1%。營業收入和營業利潤率的成長是由於價格實現提高、通貨膨脹對投入成本的影響減少以及我們工廠的經營業績與去年第四季相比有所改善所推動的毛利率擴張。第四季創紀錄的獲利水準也得益於巴西創紀錄的業績。

For the full fiscal year, Total irrigation segment revenues decreased 12% to $586 million compared to $665.8 million in the prior year. North America irrigation revenues of $309.5 million decreased 13% compared to the prior year and international irrigation revenues of $276.5 million decreased 11% compared to the prior year. Operating income in the Irrigation segment for the full fiscal year was $122 million, an increase of 15% compared to the prior year. And operating margin was 20.8% of sales compared to 15.9% of sales in the prior fiscal year. The increase in operating margin resulted from gross margin expansion driven by the factors noted previously as well as from a more favorable mix of international revenues compared to the prior year.

整個財年，灌溉部門總收入下降 12%，至 5.86 億美元，而前一年為 6.658 億美元。北美灌溉收入為 3.095 億美元，比上年下降 13%，國際灌溉收入為 2.765 億美元，比上年下降 11%。灌溉部門整個財年的營業收入為1.22億美元，比上年成長15%。營業利益率為銷售額的 20.8%，而上一財年為銷售額的 15.9%。營業利潤率的成長源於先前提到的因素推動的毛利率擴張，以及與前一年相比更有利的國際收入組合。

Infrastructure segment revenues for the fourth quarter decreased 41% to $23.5 million compared to $39.7 million in the same quarter last year. The decrease resulted from lower Road Zipper system sales with the prior year fourth quarter, including a number of project sales that did not repeat in the current year fourth quarter. One project in particular that was delivered in last year's fourth quarter amounted to approximately $16 million. The impact of lower project sales was partially offset by growth in Road Zipper lease revenue and higher sales of road safety products compared to the prior year fourth quarter. Infrastructure segment operating income for the fourth quarter decreased 73% to $3.1 million compared to $11.5 million in the same quarter last year.

第四季基礎設施部門營收下降 41%，至 2,350 萬美元，去年同期為 3,970 萬美元。下降的原因是 Road Zipper 系統銷售額較去年第四季有所下降，其中包括一些在今年第四季沒有重複的項目銷售。去年第四季交付的一個專案價值約為 1,600 萬美元。與去年第四季相比，Road Zipper 租賃收入的成長和道路安全產品銷售額的增加部分抵消了專案銷售額下降的影響。第四季基礎建設部門營業收入下降 73%，至 310 萬美元，去年同期為 1,150 萬美元。

Infrastructure operating margin for the quarter was 13.3% of sales compared to 28.8% of sales in the prior year. The decrease in operating income and margin resulted from lower revenues compared to the prior year and the resulting loss in fixed cost leverage. For the full fiscal year, Infrastructure segment revenues decreased 16% to $88.1 million compared to $104.9 million in the prior year. Infrastructure operating income for the full fiscal year was $12.1 million compared to $18.3 million in the prior year. And operating margin for the year was 13.7% of sales compared to 17.5% of sales in the prior year.

本季基礎設施營運利潤率的 13.3%，而前一年為銷售額的 28.8%。營業收入和利潤率的下降是由於收入較上年減少以及由此導致的固定成本槓桿損失。整個財年，基礎建設部門的收入下降了 16%，至 8,810 萬美元，而前一年為 1.049 億美元。整個財年的基礎設施營運收入為 1,210 萬美元，而上一年為 1,830 萬美元。本年度營業利益率為銷售額的 13.7%，而前一年為銷售額的 17.5%。

Turning to the balance sheet and liquidity. Our total available liquidity at the end of the fiscal year was $216 million, which includes $166 million in cash, cash equivalents and marketable securities and $50 million available under our revolving credit facility. Our strong operating performance for the year, along with effective working capital management, resulted in free cash flow of $100.9 million or 139% of net earnings. This improved cash flow further strengthens our balance sheet and positions us well to continue executing our capital allocation strategy.

轉向資產負債表和流動性。截至本財年末，我們可用的流動資金總額為 2.16 億美元，其中包括 1.66 億美元的現金、現金等價物和有價證券，以及循環信貸額度下的 5,000 萬美元。我們今年強勁的經營業績，加上有效的營運資本管理，帶來了 1.009 億美元的自由現金流，佔淨利的 139%。現金流量的改善進一步增強了我們的資產負債表，並使我們能夠繼續執行我們的資本配置策略。

In closing, I'd like to provide investors with an updated view of the company's longer-term financial goals and targets. Over the past 3 years, Lindsay has delivered marked growth and solid financial results across a variable macroeconomic backdrop. And we have updated our 5-year financial goals as highlighted on Page 15 of the earnings presentation. Over this period, our goal for organic revenue growth is to average greater than 7% annually. Additionally, our goals are to deliver annual operating margins greater than 14%, return on invested capital greater than 12% and earnings per share growth greater than 10%. These 5-year goals are supported by the performance momentum we've been able to deliver and our alignment to positive secular growth trends across both our irrigation and infrastructure businesses.

最後，我想向投資者提供有關公司長期財務目標的最新看法。在過去的三年裡，Lindsay 在多變的宏觀經濟背景下實現了顯著的成長和穩健的財務表現。我們也更新了收益報告第 15 頁上強調的 5 年財務目標。在此期間，我們的有機收入成長目標是平均每年超過 7%。此外，我們的目標是實現年營業利潤率超過 14%、投資資本回報率超過 12%、每股收益成長超過 10%。這些五年目標得到了我們能夠提供的業績動力以及我們與灌溉和基礎設施業務的積極長期成長趨勢的一致支持。

That concludes my remarks. And at this time, I'd like to turn the call over to the operator to take your questions.

我的發言到此結束。此時，我想將電話轉給接線員來回答您的問題。

(Operator Instructions) Today's first question comes from Nathan Jones with Stifel.

（操作員說明）今天的第一個問題來自 Stifel 的 Nathan Jones。

I guess I have to start with a question on these 5-year financial goals. And I guess, specifically, I have to start with operating margin greater than 14%. I think you did -- you just did operating margin greater than 14% for 2023. It looks like it's up at 15%. Can you just talk about the expectations from there? I mean -- and just how you come up with greater than 14% 5-year target when you are already at 15%?

我想我必須從關於這些五年財務目標的問題開始。我想，具體來說，我必須從營業利潤率大於 14% 開始。我認為你做到了——你剛剛實現了 2023 年營業利潤率超過 14%。看起來成長了 15%。您能談談那裡的期望嗎？我的意思是——當你已經達到 15% 的時候，你是如何提出高於 14% 的 5 年目標的？

Yes. I think when you look at kind of, again, where we're at today. I think this year, we did benefit from some of the raw material softening, but we also had some LIFO benefit this year that I wouldn't plan on going forward. But I guess our feeling is operating on a regular basis above 14% and then reinvesting into our business with the technology and new product development, that's kind of what our thoughts are behind the greater than 14%.

是的。我想當你再看看我們今天所處的位置。我認為今年，我們確實受益於一些原材料的疲軟，但今年我們也有一些後進先出的好處，但我不打算繼續這樣做。但我想我們的感覺是定期營運超過 14%，然後透過技術和新產品開發對我們的業務進行再投資，這就是我們超過 14% 背後的想法。

Okay. And then I guess I'll go to domestic irrigation. I mean some of your commentary was pretty bullish there Randy. Despite the fact that we've seen a few quarters in a row here of of negative growth, fairly negative growth in domestic irrigation business. I mean you talked about strong near-term demand. You talked about positive order rates year-over-year so far this quarter. I understand there was a negative impact from storm revenue year-over-year in the fourth quarter '23. But, It would seem that it's likely that you're still going to have some negative comps there in the short term in domestic irrigation. But Randy, your commentary sounded maybe a bit more bullish than that. So maybe if you can just give us some more color on the near-term expectations around the domestic side of the irrigation business.

好的。然後我想我會去家庭灌溉。我的意思是，蘭迪，你的一​​些評論非常樂觀。儘管我們已經連續幾季出現負成長，但國內灌溉業務的負成長相當嚴重。我的意思是您談到了強勁的近期需求。您談到本季迄今同比訂單率呈正值。據我了解，23 年第四季風暴收入年增了負面影響。但是，短期內國內灌溉可能仍會出現一些負面影響。但是蘭迪，你的評論聽起來可能比這更樂觀。因此，也許您能給我們更多關於國內灌溉業務的近期預期的資訊。

Sure. You bet, Nathan. And I think what we've talked about today is consistent with what we talked about earlier in the year, and we talked about this wait-and-see approach where we know customers are going to be profitable this year. And they've demonstrated when they make money, they invest money, and we know that we can battle for and win that capital when they make investments to improve their operations, to enhance yields, improve yield consistency, we know we can get those dollars. So I think this spring, we saw kind of a truncated season. And we were a little disappointed with some of the results. but we did see strong quotation demand. We just didn't see customers taking those quotations all the way to orders.

當然。你敢打賭，內森。我認為我們今天討論的內容與我們今年早些時候討論的內容是一致的，我們討論了這種觀望方法，我們知道客戶今年將盈利。他們已經證明，當他們賺錢時，他們會投資資金，我們知道，當他們進行投資以改善營運、提高收益率、提高收益率一致性時，我們可以爭取並贏得這些資本，我們知道我們可以獲得這些美元。所以我認為今年春天，我們看到了一個被縮短的季節。我們對一些結果有點失望。但我們確實看到了強勁的報價需求。我們只是沒有看到客戶將這些報價一直帶到訂單中。

So some of this was expected based on feedback from customers in our channel. And again, when they're profitable, they're going to make these investments. So we feel good about what we see in order demand right now. This is customers selling or buying based on crop they're selling this year and profits generated this year. As we move forward into next season, I think every year starts anew. So does -- do we carry a lot of optimism into next spring? I still think the yield enhancement benefits are going to be a tailwind for us. I still think customers are going to be profitable, maybe not record profit levels that we saw last year. But again, customers make money, they invest money, I think that's really given us confidence in this market, Nathan.

因此，其中一些是基於我們通路中客戶的回饋而預期的。再說一遍，當他們獲利時，他們就會進行這些投資。因此，我們對目前的訂單需求感到滿意。這是客戶根據今年銷售的作物和今年產生的利潤進行銷售或購買的客戶。當我們進入下個賽季時，我認為每一年都​​會重新開始。那麼，我們是否對明年春天抱持著很大的樂觀情緒？我仍然認為產量提高的好處將成為我們的順風車。我仍然認為客戶將會獲利，也許不會達到我們去年看到的創紀錄的利潤水平。但同樣，客戶賺錢，他們投資，我認為這確實給了我們對這個市場的信心，內森。

I know you guys don't give guidance, but do you -- I'll ask the question, would you expect to be able to generate organic revenue growth in the domestic business in fiscal '24?

我知道你們不會提供指導，但你們會——我會問一個問題，你們希望能夠在 24 財年的國內業務中實現有機收入增長嗎？

Yes, Nathan, this is Brian. I think that is our expectation. I think as Randy talked about, we saw some of this demand being deferred. And so far into the fall, it's kind of playing out that way. So -- and then we get into our second and third quarters, and we do have easier comps. So I think it's realistic to expect year-over-year unit volume growth in North America.

是的，內森，這是布萊恩。我認為這是我們的期望。我認為正如蘭迪所說，我們看到其中一些需求被推遲。一直到秋天，情況都是這樣的。所以——然後我們進入第二和第三季度，我們確實有更容易的比較。因此，我認為預計北美的銷量同比增長是現實的。

The next question comes from Brian Wright with ROTH Capital Partners.

下一個問題來自羅斯資本合夥公司的布萊恩‧賴特 (Brian Wright)。

I just wanted to follow up on the comment in the press release about the Brazilian financing switching to quarterly allocation. And just -- how to think about that having any impact on seasonality in the international sales in '24?

我只是想跟進新聞稿中有關巴西融資轉向季度分配的評論。只是 - 如何考慮這對 24 年國際銷售的季節性有什麼影響？

Yes. Brian, this is Randy. I'll take that one. And this was a fundamental change and how the program is administered in Brazil. And at the macro level, we did see aggressive finance rates 10.5%. We did see an increase -- a published increase and the amount of money that will go into the program. But historically, there was 1 tranche. It was announced in the June, July time frame. All the applications were entered, all the money was allocated. So we saw a lot of that order backlog early. And then we generally burned it down through the remainder of the year. This year, it's being administered very differently, and the government is now managing 4 tranches, quarterly tranches throughout the year. So there'll be an application process, but then that money will get metered out 4 different times across the year.

是的。布萊恩，這是蘭迪。我會接受那個。這是巴西該計畫管理方式的根本性改變。在宏觀層面，我們確實看到激進的融資利率達到 10.5%。我們確實看到了增長——公佈的增長以及將投入該計劃的資金數額。但從歷史上看，有 1 批。它是在六月、七月的時間範圍內宣布的。所有的申請都已輸入，所有的錢都已分配。所以我們很早就看到了大量訂單積壓。然後我們通常會在今年剩下的時間裡把它燒毀。今年，它的管理方式非常不同，政府現在管理 4 次，全年每季一次。因此，將會有一個申請流程，但這筆錢將在一年中分 4 次不同的時間發放。

So it does change the order pattern. And in our view, it is going to change backlog in Brazil. It's going to be more staged and spread out over the year. And we'll have to wait and see how that really corresponds into projects being shipped and revenue being recognized. Overall, it's still very good news for the market. The government continues to invest and support in agriculture, but the timing is going to look different this year and not having any historical reference point on how these quarterly tranches are going to work, it's tough to predict. But the strong market fundamentals there in our view, still will generate growth in the region.

所以它確實改變了訂單模式。我們認為，巴西的積壓情況將會改變。今年它將更加上演並分散開來。我們必須等待，看看這與正在交付的項目和確認的收入有何真正對應。總體而言，這對市場來說仍然是一個非常好的消息。政府繼續對農業進行投資和支持，但今年的時機將有所不同，並且沒有任何關於這些季度付款將如何運作的歷史參考點，很難預測。但我們認為，強勁的市場基本面仍將推動該地區的成長。

Over time after we get through this first year transition, do you think that, that will, over the long term, actually improve your visibility on that part of the business potentially?

隨著時間的推移，在我們完成第一年的過渡後，您認為從長遠來看，這實際上會提高您對該業務部分的知名度嗎？

It could and it couldn't. And I think where it can't or maybe won't is when the program is administered once a year, you've kind of got immediate demand visibility of market demand. Now as these programs are administered quarterly, we're just going to see that demand 4 different times throughout the year as opposed to a single time in the year. So I think it's good for material planning, efficiency through the factory, I'd rather have flat volume flow month-over-month, quarter-over-quarter, we can run more efficiently that way. But it's also nice to see the backlog and know what you've got in front of you.

它可以，也不能。我認為，當該計劃每年執行一次時，它不能或可能不會，您可以立即了解市場需求。現在，由於這些計劃按季度管理，我們只會在一年中 4 次不同的時間看到該需求，而不是一年中的一次。因此，我認為這對於物料計劃和工廠效率都有好處，我寧願每月、每季的流量保持平穩，這樣我們就可以更有效地運作。但看到積壓的工作並了解您面前的情況也很高興。

But I think our ability to support customers, run an efficient safe factory, I think that's going to be certainly a lot easier with the way the program is administered this year. And -- but there's no guarantee that this is how the government will continue to operate it. If they like what they see, I expect they would and could. If they see other administrative issues with managing this way, I wouldn't be surprised if they went back to the older way as well.

但我認為，透過今年該計畫的管理方式，我們支援客戶、營運高效安全工廠的能力肯定會容易得多。而且——但不能保證政府將繼續以這種方式運作。如果他們喜歡他們所看到的，我希望他們會並且能夠。如果他們發現這種管理方式有其他管理問題，如果他們也回到舊的方式，我不會感到驚訝。

Okay. That's really helpful for that color. Is there any way like can you help us with inventory, we've seen a nice reduction in inventory. Is that normalization pretty much complete? Or could that also be a benefit to cash flow in '24?

好的。這對這種顏色確實很有幫助。有什麼辦法可以幫助我們處理庫存嗎？我們已經看到庫存大幅減少。正常化已經基本完成了嗎？或者說這對 24 年的現金流也有好處嗎？

Yes, Brian. Yes, we had a very dedicated focus on inventory this year. And I would say it was really across the board. I mean, a lot of it came out of our U.S. plant, but we also had reduced inventories in Brazil and Turkey. And it was really reflective of during the pandemic and afterwards with supply chain issues and things we all carried like a lot of other companies carried more inventory than we normally would. So this is primarily reflective of just getting the inventories down to a more manageable level. And so yes, I think -- we think there's still opportunity there, but not to the level that we saw in 2023.

是的，布萊恩。是的，今年我們非常關注庫存。我想說這確實是全面的。我的意思是，其中許多來自我們的美國工廠，但我們也減少了巴西和土耳其的庫存。這確實反映了大流行期間和之後的供應鏈問題以及我們所攜帶的東西，就像許多其他公司所攜帶的庫存比我們平常更多。因此，這主要反映了將庫存降至更易於管理的水平。所以，是的，我認為——我們認為那裡仍然存在機會，但沒有達到我們在 2023 年看到的水平。

Great. Great. And one last one, if I could sneak it in. Can you just help us out with the tax rate in the quarter and then how to think about tax rate for '24?

偉大的。偉大的。最後一個，如果我能偷偷地講一下的話。你能幫我們了解本季的稅率，然後如何考慮 24 世紀的稅率嗎？

Yes. Good question. In the quarter, we had -- there was a change in U.S. tax regulations that took place during the quarter that now allows foreign tax credit for earnings in Brazil. Prior to that because Brazil wasn't compliant with the global -- or the worldwide transfer pricing rules, the U.S. was going to disallow the foreign tax credit. That got changed in the fourth quarter. So what happens then is it's a cumulative adjustment for the year, taking into account that we can take that tax credit now. So it 22 -- a little over 22% for the quarter. Going forward though, as we talked about before with the shift in the growth being stronger outside the U.S. than inside the U.S., it does drive a higher effective tax rate. And you saw that probably on a year-over-year basis in '22 versus '23. But I would say for '24, our expectation is it's probably going to be around 29% for the year.

是的。好問題。在本季度，美國稅收法規發生了變化，現在允許對巴西的收入進行外國稅收抵免。在此之前，由於巴西不遵守全球或全球轉讓定價規則，美國將禁止外國稅收抵免。這種情況在第四季發生了變化。那麼接下來會發生的是，考慮到我們現在可以享受稅收抵免，這是今年的累積調整。所以這個季度是 22——略高於 22%。不過，展望未來，正如我們之前討論的那樣，美國境外的成長轉變比美國境內的成長更為強勁，這確實會帶來更高的有效稅率。您可能會在 22 年與 23 年的逐年比較中看到這一點。但我想說，對於 24 年，我們的預期是全年可能會達到 29% 左右。

The next question comes from Brian Drab with William Blair.

下一個問題來自布萊恩·德拉布和威廉·布萊爾。

I just wanted to start first with a look at fiscal 2024 and the operating margin is being asked previously on the call, but some discussion around the long-term goal of 14% plus. what do you expect in the near term? I know you said you had the LIFO benefit that was pretty material recently. I mean could 2024 margin -- operating margin, I guess, be down then?

我只想先看一下 2024 財年，之前在電話會議上詢問了營業利潤率，但圍繞 14% 以上的長期目標進行了一些討論。您近期有何期望？我知道你說過你最近獲得了非常重要的後進先出的好處。我的意思是，2024 年的利潤率（我猜營業利益率）會下降嗎？

No, we wouldn't expect that to be the case, Brian. And let me just also state in 2023, there really wasn't any significant project volume either in irrigation or in infrastructure. And so that operating margin where we're at today is independent of large projects. And we've said on the irrigation side, some of those projects can be dilutive on the infrastructure side, some of those -- the projects are generally going to be accretive. So it can vary depending on what kind of project business that we have. But no, we are comfortable with being able to operate at this kind of level. And obviously, having the opportunity to reinvest money in R&D and new product development and those kinds of things.

不，我們沒想到會是這樣，布萊恩。我還要指出的是，到 2023 年，灌溉或基礎設施方面確實沒有任何重大工程量。因此，我們今天的營業利潤率與大型專案無關。我們已經說過，在灌溉方面，其中一些項目可能會稀釋基礎設施方面的利益，而其中一些項目通常會帶來增值。因此，它可能會根據我們擁有的專案業務類型而有所不同。但不，我們對能夠在這種層面上運作感到滿意。顯然，有機會將資金再投資於研發和新產品開發等方面。

Okay. Yes. I guess I'm just thinking about the long-term guidance, I just find -- the main question I'm walking away with is, if you are capable of that organic revenue growth of around 7%, and operating margin is maybe flat to -- I mean, I guess some people might model it trending towards slightly above 14% since that's the guidance. Where does that confidence in greater than -- how does that end up in a model that has greater than 10% EPS growth?

好的。是的。我想我只是在考慮長期指導，我發現——我要解決的主要問題是，如果你有能力實現 7% 左右的有機收入增長，而營業利潤率可能持平我的意思是，我猜有些人可能會將其模型化為略高於14% 的趨勢，因為這是指導。這種信心在哪裡——如何最終形成每股收益成長超過 10% 的模型？

Well, I think combining the revenue growth, the incremental margin that comes from that, I think -- and then the other aspect of that could potentially be share repurchase, if again, following our capital allocation policy, if that comes into play, that's another thing that would influence the EPS.

嗯，我認為結合收入成長和由此產生的增量利潤——然後，另一個方面可能是股票回購，如果再次遵循我們的資本配置政策，如果這發揮作用，那就是另一件會影響每股收益的事情。

Yes, sure. Okay. And I guess, maybe just one more for now. You talked about Brazil in terms of strong international regions. Where else are you seeing some relative strength internationally in the irrigation business?

是的，當然。好的。我想，現在也許只剩下一個了。您談到了巴西強大的國際地區。您還在哪些地方看到了國際灌溉業務的相對優勢？

I'll take that one, Brian. The -- I think in the notes we talked about the Middle East as another region where we're seeing growth and some of that business is the large military type contracts, but some of that is also a smaller project business. Some of that is business in the private markets as well, where we continue to see smaller projects coming to conclusion in Sub-Saharan Africa. So we are seeing some pretty broad widespread opportunities. And again, it goes back to food security, yield enhancements, unpredictable weather, all those factors, in our view, really support strong tailwinds in all those project-oriented markets. They're just not going to come 1 a quarter. They're going to be a little lumpy. They're a little longer-term tail in terms of closing the project, ensuring financing is in place, getting the right credit risk in place. But we do see, again, a strong funnel of those opportunities. And it's across a number of geographies, which gives us some optimism.

我要那個，布萊恩。我認為在筆記中我們談到中東是另一個我們看到增長的地區，其中一些業務是大型軍事類型合同，但其中一些也是較小的項目業務。其中一些也是私人市場的業務，我們繼續看到撒哈拉以南非洲地區的小型專案即將完成。所以我們看到了一些相當廣泛的機會。再次，這又回到了糧食安全、產量提高、不可預測的天氣，我們認為所有這些因素確實為所有這些項目導向市場提供了強勁的推動力。他們只是不會每季來一次。它們會有點凹凸不平。在完成專案、確保融資到位、建立適當的信用風險方面，它們是一個有點長期的尾巴。但我們確實再次看到了這些機會的強大漏斗。而且它跨越了許多地區，這讓我們感到一些樂觀。

Great. And then just quickly on FieldWise, I'm looking at my notes, I can't remember, did that deal close? And can you give us any sense for what revenue that brings so we can model in inorganic and organic revenue?

偉大的。然後我很快就在 FieldWise 上查看我的筆記，我不記得了，這筆交易完成了嗎？您能否告訴我們帶來的收入是什麼，以便我們可以對無機和有機收入進行建模？

Yes, this is Brian. We haven't disclosed the revenue. It's small, but it's been growing rapidly. And I guess the other thing I would say is it's accretive to margins, fairly significantly. It's more the traditional SaaS-type margins, but it's a smaller business, and we haven't disclosed what the revenue is for some of it for competitive reasons.

是的，這是布萊恩。我們還沒有透露收入。它很小，但增長很快。我想我要說的另一件事是它可以相當顯著地增加利潤。這更像是傳統的 SaaS 類型的利潤，但這是一個規模較小的業務，出於競爭原因，我們還沒有透露其中一些業務的收入。

(Operator Instructions) The next question comes from Brett Kearney with Gabelli Funds.

（操作說明）下一個問題來自 Gabelli Funds 的 Brett Kearney。

With this supportive outlook over the next 5 years, I guess, how do you guys think about some of the cash that the business will generate. Brian, I know you mentioned opportunities continue to invest in new product development and technology. Just anything you can elaborate on that front, I guess, organically and inorganically.

考慮到未來 5 年的前景，我想你們如何看待這項業務將產生的一些現金。布萊恩，我知道你提到了繼續投資新產品開發和技術的機會。我想，你可以在這方面詳細闡述任何內容，無論是有機的還是無機的。

Yes. Yes. So it starts with supporting our organic growth opportunities. And we've talked about capital being part of that potentially capacity expansion in places like Brazil and Turkey. I think we're also looking at really globally modernizing investments in modernization, Industry 4.0, productivity improvements in our factories. So we are anticipating in 2024 that we're going to increase our capital expenditures. Right now, we're estimating between $30 million and $35 million for CapEx. And then longer term, there's -- as things settle down in Ukraine, Russia, as an example, there's opportunities for expand -- other geographical expansion. But then from there, M&A is clearly a priority. And FieldWise is a small example of that. But we're actively looking at opportunities where we can leverage our capabilities and increase shareholder value through M&A, increasing our annual dividend and then share repurchase is kind of the order that we go through when we look at the capital allocation.

是的。是的。因此，首先要支持我們的有機成長機會。我們已經討論過資本是巴西和土耳其等地潛在產能擴張的一部分。我認為我們也在關注真正的全球現代化投資，包括現代化、工業 4.0、工廠生產力的提升。因此，我們預期 2024 年我們將增加資本支出。目前，我們估計資本支出在 3,000 萬至 3,500 萬美元之間。從長遠來看，隨著烏克蘭和俄羅斯局勢穩定下來，還有其他地域擴張的機會。但從那時起，併購顯然是優先事項。 FieldWise 就是其中的一個小例子。但我們正在積極尋找可以利用我們的能力並透過併購增加股東價值的機會，增加我們的年度股息，然後股票回購是我們在考慮資本配置時所經歷的順序。

This concludes our question-and-answer session. I would now like to hand the call back to Mr. Randy Wood for closing remarks.

我們的問答環節到此結束。現在我想將電話轉回給蘭迪·伍德先生做總結發言。

Thank you all for joining today's conference call. I'm proud of our performance for the quarter and full fiscal year, particularly our demonstrated ability to execute both operationally and commercially to deliver improved returns and strong profitability despite softer top line revenues. However, I'm more excited about the opportunities that lie ahead for Lindsay. Our leadership in irrigation technology, including our established and growing installed base and the expanding infrastructure opportunity, both domestically and globally, provide us with a unique competitive advantage as we look to capitalize on multiple sustainable growth opportunities. We look forward to updating you on our progress at the end of our fiscal '24 first quarter. Thank you.

感謝大家參加今天的電話會議。我對我們本季和整個財年的業績感到自豪，特別是我們在營運和商業方面表現出的執行能力，以在收入疲軟的情況下實現更高的回報和強勁的盈利能力。然而，我對 Lindsay 未來的機會更感到興奮。我們在灌溉技術方面的領先地位，包括我們在國內和全球範圍內已建立和不斷增長的安裝基礎以及不斷擴大的基礎設施機會，為我們尋求利用多種可持續增長機會提供了獨特的競爭優勢。我們期待在 24 財年第一季末向您通報我們的最新進展。謝謝。

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。您現在可以斷開連線。