LNN - Earnings call transcript Q2 2021

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Operator

Good morning. My name is Tom and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindsay Corporation's Second Quarter Fiscal Year 2021 earnings call.

During this call, management may make forward-looking statements that are subject to risks and uncertainties which reflect management's current beliefs, estimates of future economic circumstances, industry conditions, company performance and financial results.

Forward-looking statements include the information concerning possible or assumed future results of operations of the company and those statements preceded by, followed by or including the words expectation, outlook, could, may, should or similar expressions.

claim in of Reform the XXXX. we forward-looking Safe Act statements, contained statements Private these the the protection Harbor of For Securities Litigation note recorded. Please is event this being like to now I call turn over would Mr. to the Randy Wood, Executive and President Chief Officer. ahead. go Please

Randy Wood

continue morning Brian Thank is into our second me our the Brian gets Chief Financial details Welcome quarter you everyone. to our call. earnings and like With I'd before of strategic good Ketcham, area to share today key comments. Officer. And smart opening our the we Taranis. partners, our results, some of In trigger innovation, quarter executing and with of elements second platform Microsoft

We are machine forward will autonomous the and crop peace recognition the image used move improve leveraging for security the and continue the of agronomic to field. mind give to customers and the machine new they This including computing analysis need management and diagnostics. of edge speed both accuracy and in of technologies health

to kilowatt FieldNET and irrigation make XXX water XXXX on around conserve save Advisor. through set the remotely In fish March release other like our management and with our to Road the water ESG remote leverage We have progress allows and hardware billion segment. of of to helping product hours new monitoring in social and also from of we and customers great service. Connect we municipalities, elements energy speed environmental, our continued states, over the many same platform us of goal the of This of infrastructure or and world event on broad a and of a FieldNET lines our will Back to over our improve ability X.X governance, provide This billion the many tools reliability. gallons improve hosted safety range the we announced market to in to assets initiatives. space, monitor roadways stakeholders our platform

on us XX% of than That we're billion the is goal the exceed atmosphere. remove from also water confirm track our over savings to will meet safety, on to vehicles. agricultural operations of of tons equivalent energy and pounds million pleased traffic allowing our that more passenger our transportation we to over We've focused launched metric carbon from by are council and annual addressing We our the goal XXX,XXX and X.X our or internal ESG in X.X the sustainability customers to emissions both management, production. internal engaged operations savings

and will We share will finalized. release spring we our to specific as have goals on this our more strategies next later and are sustainability report they

We pandemic continue protocols nine work of home facilities running all and our factories to operational response part be that for roles remotely. performed plan. option maintaining can at follow as are from and our of we are Currently all our safety

safety transportation, in that sustainable appreciate your We As recognize for we continue safety we make nonnegotiable acknowledge through their and our in to and to moment the and us each our other our and well. would stated are is on of have take work the will decisions our execution past, focus a for employees customers a like and our and us, keep teams counting I of safe. do nature deliver continued team so dedication, that to production essential business our The continued agriculture pandemic. support global means business. to

see customer These exports leading North to income flow sales order report intentions season of into and strong from commodity over we that and strong fundamentals, backlog remained XXXX North in partially were strong will the supply Turning prices carry quarter. could subsidies property that the from offset growers income reached growth seats in constraints benefited support levels near and market Commodity third farm growing and net environment. American to Conditions demand projected income, in in continuation record large The higher as drivers irrigation sentiment This the to prices net indicates to released increase quarter. including government to a in be for marketing COVID to and and planting reduction a our America to programs. China year expenditures. is willingness the capital order by in farm drove would high support lower government relief will tied slightly supply market this equipment recently positive that XXXX. positive when net compared to strong a increased drove income farm lead

Transportation shortage input physical in and will continue the into industry. the year. These quarter. and continue expect minimize increases during implemented price actively inbound demand to were and the this primarily high have other components do on costs, of also Multiple steel suppliers managed see fees We some due our quarter. dealers and we We've costs across customers, expedite to delivery component disruptions seen rapid input been tight the daily increased to delays but to quarter. escalation material third trucking nationwide the

continue put We cost pressure the to term volume market increases. to short of orders of and incoming margin the mature and This developing QX. segments. International quarter into due both a costs again trail will the had in Irrigation pace slightly strong continue to

the of market but New be favorable farm for both a currency terms to Australia markets. Pacific and We growth the recovery in with record competitive strong due bright seeing Zealand both, in strong a and soybean Asia continues to volume region Brazil and income, are revenue spot and domestic exports signs very China of growth across yield. market,

the have this impact we still could market, the their but year planting This seasons. on safrinha some into see corn continued strength fall and late winter second The or due to delayed crop harvest. soybean was

confirmations funnel another plans. do Zipper are states and projects give due valued of on saw the response Road does quarter. but actively pandemic million We're some year have pre-pandemic these recognition anticipated primarily sales, gap. at our fiscal volume year-over-year their strong in while country levels. XXXX. focusing defer out quarter close revenue we seeing We delays see Zipper project the Construction revenue we sales but sales we funnel basis. as remain safety Road $XX had states cycle close road seeing in a where the not increase move in throughout tenders, awards also We infrastructure, this to now the the are to managing We're to as managing project on in to of lease did and projects to resources Moving response. an lost we In down the COVID it continues lengthen improve improvement below

impact program that from pedestrians. all and term congestion and could on on positive fund We local XX, revealed for which the increased shipments at roadmap bridges, to predict Biden Biden This the reducing streets a believe large, do estimated American billion some to will project improve stimulus infrastructure is of challenging On of plan segment. $X we modernize $XXX valued in our the safe to aging carbon improvements significance crashes have for billion and cyclists $XX emphasis eight-year gridlock longer job upgrading stability that infrastructure timing complex the provide and containing emissions, road and includes However, traffic a remains billion safety. March regional funding state and roads dollars. an our administration to and package for projects This this trillion fatalities $XX environment. especially President addressing an

the road funding, long local and the There in approvals also timing a is magnitude there benefit of the is ahead timing pending see so potential, some while in is could wait temporarily that to course terms governments but freeze situations, program and funding. of uncertain. of Of legislation market

quarter results. Now, I'll over call to financial review second the turn to our Brian

Brian Ketcham

foreign the second $XX engineering overall to of the million irrigation $X.X revenue resulted volumes supported the approximately several quarter you, or million increase sales net services prior $XX prices. million Improve quarter related by good $X.XX Thank compared Irrigation morning, for year. currency last $XX.X for that of the same year. the year, million year. offset Total $X.XX quarter XX% quarter. compared operating per America insignificant from in or increase the everyone. for XX% $XX.X were by sales prior resulted the second same compared of to lower same million XX% XX.X% international quarter Randy increase increased partially last revenues average and last year. quarter to selling equipment $XX.X or compared operating was sales segment volumes of million volume. of In The higher and of earnings the year prior in diluted quarter Net increase second increased million million compared of million earnings million, irrigation compared irrigation $XX.X $XXX.X Total revenues impact $XX.X quarter of XXXX $XX.X improved irrigation margin for for XX% $X.X per income $XXX.X million in XX% equipment higher sales to to share of in compared margins diluted XX.X% or the year. last were quarter This segment year. revenues repeat. markets. to higher equipment same million project The the from to higher an to did fiscal translation of increased of $XXX.X markets, irrigation revenues primarily share irrigation million or last was in $XX.X million a North or the or to international and was sales not the differences The the increased

However, the of this freight impact somewhat by improvement raw higher and was tempered costs. material

to his Randy multiple escalating have cost. As increases in pass implemented we price the comments, mentioned along

dates pricing actions. of compression However, orders we we margin backlog through experienced have to our effective work of the prior received the as

relatively Higher the safety has income flat XX% margin was same Road costs. to in led System resulted compared of quarter to $X.X compared continue lease raw revenues from has XX.X% indicates cost last increased sales while other quarter million prior quarter remained million for timing million, We increase until year. increase segment XX% the X% third to was segment compared material offset than implementing Zipper road The fully the higher from pass-throughs received rational. our and mix of higher the impact the to pricing industry proactively negative last consistently expect prior an quarter sales same for revenue Zipper price or Infrastructure second realized. quarter of this Infrastructure margin and from of Road differences $XXX,XXX of global Lindsay year. by and sales environment quarter partially operating year. are operating the year. that margin sales dealers the $X.X for the and the primarily second $XX pressure the products in increased increases Positive into revenue, sales to Infrastructure Feedback other was were lease of the compared or

building a for of included addition, the year $X.X million a on sale had prior been of that held In gain the sale.

to land option of $X.X buildings liquidity, Turning balance we and a the sheet capital for during quarter million performance and which related to the included had the million purchase expenditures $XX exercise in Turkey. provides to the in our of geographically This facility EMEA future manufacturing us take positioned is purchase opportunities operation to greater flexibility region. the strategically well growth advantage and and

end available facility. under our $XXX.X available liquidity total quarter and Our in million with and $XXX.X cash the revolving of million credit was the million marketable a securities second at $XX

Our at all total end debt almost second $XXX.X matures was of in which XXXX. of quarter, the the million

to time your Additionally, the financial to limit facilities a I of of ratio borrowings questions. this the the debt-to-EBITDA take at to like our well X.X. At a of including were to operator within of gross the would covenant we end call compared over the X.X leverage turn quarter covenants

Operator

Thank the Jones Nathan from And ahead. Please with you. comes [Operator question go first Instructions] Stifel.

Nathan Jones

Good everyone. morning,

Brian Ketcham

Nathan. Good morning,

Randy Wood

Good morning, Nathan.

Nathan Jones

talk from really about about growth irrigation, Just there, the Can obviously to what contribution topline price strong you growth growth? XX% the starting in was year-over-year.

Brian Ketcham

in digits this is Yes and was it would the say Brian. range. I mid-single

that at first prior first of we quarter in increase price backlog had that As we end a put you in to recall the the came large the place. orders

as for and So incrementally would the as quarter. impact well price in the quarter digits quarter-to-quarter, say on I year-over-year, mid-single about

Nathan Jones

third price from that now all backlog shipped And of the would that fiscal you more that quarter? be like double-digits probably to in expect contribution you probably

Brian Ketcham

it to Yes, will continue increase.

lot implemented it's both by price. where and multiple how have of in increases approaching we month at been are have is total that price XX% as we we but basis we is range, that's month in mentioned, As in feathered

Nathan Jones

know really about some in some mean think given have dynamics know I got relatively good. lower recall does. margin XX increases, that are incremental it can things that want you revenues said talk of worse dealing you get the margin they last year. costs the you price about inflation, you these price and revenues of to you you is as engineering forward, really, up margins. maintain Okay. with talk a area the why these reason put or of and and shipping I of a XX% Irrigation, had the you I doesn’t level I low which in increases go And like kind that Can as better of margin is If we then we an there incremental short than low that would there? Is I have some that was or term?

Brian Ketcham

I think Yes, XX% past, the we said plus incremental generally Irrigation that in range. in as margins in

significant say really particular primarily the helped on margins incremental have did year-over-year this on business. some in year we You side. know improvement What margin quarter, international I U.S. headwind, the is this pretty would the

forward last but expectation comp plus cost with but range, compared favorable increases going Some I some be XX would of seeing. to that are headwind in that have the say a may again the that we have to would been year, continuing

Nathan Jones

quarter incremental you think margin will stops as pricing? straight know you find up Do catching will hit up. a have are two you eventually where a you going still we you that on better a when or quarter know you That here

Brian Ketcham

time point to at sure incremental which expect and as in am not Yes, point, would that margin if we some stabilized. up knows gain when hopefully I comes that cost steel catch anybody this

Nathan Jones

helpful. pass that's Great, along. I'll Thank it you.

Operator

from Please Brian William comes ahead. go question with next Our Drab Blair.

Brian Drab

give but these you us for know much, can gets harder am as plus so modeling morning, year? for XX% giving see numbers us are to this good revenue you I modeling. to that? you and taking any pricing Irrigation give And so big going moving are the sense questions. now, thanks it can Again year, where in growth around formal Hi, help any my – you guidance roughly I is

Brian Ketcham

and saw would -- of in I driven you get that’s quarter the we demand. know that’s season fourth into continue replacement you second you as our planting that kind percentage a the then say to basis, into Brian, would Yes storm third that the by we growth and on expect -- the generally when quarter, post

the backlog the third have subject be seeing, today, to would supply again of are some chain our we for So, quarter. the that that kind got with expectation we of constraints

Brian Drab

-- is lot come down From replacement given the third that’s quarter, driven you saying? year-over-year by are but the that quarter for you growth the said what might of little, that fourth a

Brian Ketcham

positive think impact lot in demand different some the from fundamentals still is fourth prices the commodity into there Yes, the falls Ag and of a commodities, quarter. I off but level

be going and happens it's again So dependent on to what primarily activity. replacement with storms

Brian Drab

Okay, know that reminds ask, me Brian, Irrigation revenue? to always replacement thanks. the of of mention of you like breakdown your I question And that

Brian Ketcham

Yes.

at Conversion time As the we replacement XX%. it Irrigation first XX% dry and the during quarter, would or expect was for land the at the for quarter. at increased XX% was

Brian Drab

pipeline start there anymore next in is a will pipeline we you in 'XX can specifically And and the you hit? pipeline Road when just will large projects some thanks. things may healthy. for that Okay, fiscal the see very be think coming The may that then big or projects now. one be on Zipper might the more comment Is

Brian Ketcham

Yes, this Brian again. is

of You know the what cover fiscal about as of the in shifted as million pipeline now his to the And said that that we've we the projects projects that gap year. began around mentioned projects had of had line $XX half we of XXXX. last into we have is, comments, in had would had sight we Randy year, UK

say fiscal experienced U.S. for just that some continues certain funnel we the the at the delaying look the with is XXXX related last that we of is we've COVID us overall, for to very our XXXX, states see we're projects, year. those in delays and improve. in but is recreated what going balance is encouraged by as primarily in being, project gap of sales by let's that, But pipeline, year So to remain that UK the probably municipalities

Brian Drab

sure the had, maybe we at idea $XX conversation understand I in the just like make million pushed XXXX. differently? large my be $XX had could I Road our there's or got it million million can one the Zipper I Is is to $XX to that slightly the $XX and I and projects, in that think Okay, million fiscal to I'm that $XX said this revenue ballpark notes, year, next year, that impression in gets range the you maybe, more frame looking not? million I that

Randy Wood

it's Yes, the I'd of at lower that end say range.

we so So, have XX plus.

Brian Drab

okay. helpful. you. Very it, Got Thank

Operator

with & question comes Boenning Ryan ahead. The next Please Scattergood. go Connors from

Ryan Connors

picture questions. of Hey, bigger couple great. A

can have priorities, you fits I would this the this had past irrigation into you on tractors, in are around I rates the where or up, about again are versus irrigated then on if or time wonder different low cycle, make First, less versus period cycles interest Anything which that this now irrigation us perspective priority? cetera. we time, positive. et mean combines, is give more irrigation, unique a land any know Randy budget of and drought values a so but other last I

So just around? irrigation a trying where think get this the to time into you puzzle fits for feel

Randy Wood

Yes, versus unique see Ryan. I up being cycle prior up it this in don't cycles

the Nebraska. only footprint to were some up equipment the at against run season their that If we factory see that the I hitting leveraging if space, we spring, see seeing of Lindsay, it in pre-delivery. of caveat other purchase. a the a into we got world. our then we or we're releases transition and parts combine capital past global plan availability. But spring But companies to public capacity the And QX the enter well. going And some they you start in manage QX that increases to deliveries rate might run in up see through our at planting And they're getting your The in factories can might until sales get global were where in we're reveal of on that assumes irrigation know from to we be as a our or demand well. to government as tractor machines and

what on So delivery might money they take driver tax can their think here this take one year. be, they of the in I where

Ryan Connors

metric That's interesting. that on past versus side? of third okay, irrigation I other a purchases. one And been it, then, cash Got the quick about percentage? What know are purchases a financed helpful. has

is, that holding so right about So that anyway well? about case And rates tailwind now? is level? that because doing moving and they're is that interest of the customers any Is the cash a or what purchases more to the question kind actually

Randy Wood

and haven't direction over an think operating shift financing and could. rates. looking make their they that doesn't to we time, we they what band a those outside then up talking then the that where percentage low not And purchases, line think it dealers, ability we're their of that if seen I liquidity a down their UCC-X a more interest and on but Yes, is same third significant changes on there's filings But that the at using see points operating doesn't right and or in in are line, of now. growers customers to really lot customers but and see few line. sense more significantly quarter-by-quarter, finance versus we roughly purchases we a and to talking to borrow could shift I it transition are And see

Ryan Connors

Got it.

so toll we've lot more a financed toll a idea, of good does of this is toll I bridges one toll few and over the then as federally other way Yes, as well. out roads infrastructure. that picture, seem times, regressive going on Zipper It being infrastructure. side sort favor vision just to Okay, I some big deployed like there's want somewhat had roads roads. take a infrastructure Road are finance Again, solution. of road on under your a Zipper of and guess on heard toll get been and talk The of to Road real

goes how put You Is that, if involved that a you find want Road maximize read from and toll that a be do or would cash you is that. up away to anyway? I for you roads, flowing headwind mean, on ways asset, Zipper world the to throughput

Randy Wood

are definitely demand on And place. issues, are government or would think to road, funded ways I if going a I that that solution matters the think involved. a a driving it congestion road be we individual road federal in state if it's but to somebody find that toll puts or don't there

a So congestion fix matter I think traffic owns road, Ryan. gridlock to issues, we play a who role, no that make the we

no So for or us. I downside upside do that see being

Ryan Connors

okay had. your for time. it, Got Thanks I all that’s

Randy Wood

right, All you. thank

Operator

Braatz The Jon ahead. next question comes with Kansas go from Capital. City Please

Jon Braatz

Good morning Randy and Brian.

Randy Wood

Jon. morning, Good

Jon Braatz

hearing might wondering that what's was ability from those for delay put I that so the and outlook providers, outlook seeing? your might steel what and cost be the Brian, your costs, you steel you're continued to recover you, increases, might

Randy Wood

noise I a say. should number there, is a out there's of Well, of different, lot

December I stabilizes. think But it to June in of know those a seen then futures, if you are out timeframe. taking number and projections just the that looks look at all May peaks mills the November, maybe that. there's capacity I the in back when way it that May, indicated But, like timeframe, steel we've

lot then projected infrastructure. I you of further could even that go So be. I And that and think steel a unknown is, up from up. other supports, drives it's see where demand prices then If to the think keeping steel

So don't in real term on see factors. based of we all any the steel near in relief those

Jon Braatz

pressure Brian, third you mentioned will that and you Okay. continue versus the into talking quarter And and are when year-over-year? you in the or is saw margin what quarter, second when the

Randy Wood

cost It's our Jon. that at recouping got the we've increases really looking

Jon Braatz

Okay.

Randy Wood

intend to generally. our We protect margins

those And costs playing a bit on so said, as increases. along been we've catch up little we've passing

quarter, a of to million generally the we push backlog continue in the the to that continues increases, dollar $X.X orders of delay million it $X the it put guess expect we've, because but we quarter, had. to third recovery. would actual margin continue would that drives our was to into we And, through increase that So, that I second headwinds every

Jon Braatz

good. okay, Okay,

about million. more Your costs, up accruals? is allocated of think reflective compensation not $X.X or unusual anything were in you're expenses, they that there if Was there I incentive corporate maybe

Brian Ketcham

was expense Yes, had of of that Tim's a the million his be that related to at was and incremental of the beginning year through drove of this the to onetime quarter retirement onetime They bash and no that $X.X calendar equity re-measured in and comp expense a $X.X Jon, to year. that the so some million. continues

Jon Braatz

Okay.

we what forward? see So will going maybe

Brian Ketcham

I out quarter think if you $X.X took would of the rate. second that run be probably that number million more representative the of

Jon Braatz

Okay.

expenses Tim’s no So additional related to Tim?

Brian Ketcham

No.

Jon Braatz

Okay.

Brian Ketcham

behind. All

Jon Braatz

Okay.

Okay. tax bit lower a than little And were us looking I of suppose then rate the for? most

Brian Ketcham

things Yes, of couple there.

was one tax shift think I in more free facility, earnings a is Turkey our of which zone. in a in

Jon Braatz

Yep.

Brian Ketcham

and probably we would estimated we that the then quarters, That down credits return was that third items R&D brought and of other some quarter, that the had some XX% items, fourth would what what discrete be higher I around than onetime rate tax additional but completed and say, had kind we'd we our say. as affected

Jon Braatz

very Brian, great. much. thank Okay, sounds you

Operator

The comes go Chris from question next Monness Please ahead. Crespi. Shaw with

Chris Shaw

Hi, everyone. doing? are How good morning you

Randy Wood

Great, Chris.

Chris Shaw

board that lumpiness mentioned I’d XX% and developing. really that I things big the guess was it remember remind was a is like the I and was ask should in different I reasoning geographies the about you something And that up that it's last weak some mature, the know results couple through, international? last what there's some a expect me last year year comp across quarter, lot, quarter. I the about doing all with the came was to for projects second we the growth said Can for you But there of well. international, down for and you year in the mean, year remainder there. the like

Brian Ketcham

don't of mentioned mature there call my we But what it's think anything increase very nice it's in and particular overall in in a improving in a regions but was supporting this of in I market the in the of we've Randy would quarter, that was of seen this over rebound seen think it mentioned markets the in large and prices most international quarter still China markets, much terms overall in couple the, just I comments, has Brazil, improvement year, quarters. all say the project, Europe, in project market it's as market are, last last our We've both Zealand, and think regions. in pretty challenged. I being nothing commodity been Chris, Yes, particular strong. the New both Australia, the I I And the

Chris Shaw

And then across all you quarter me at disrupted broadly of sort year impact? understand year-over-year the your I third sort maybe year, last the more conference was business remind looking I last business? third guess, that in COVID also called Just of the any there the impact you could and out the can so quarter

Brian Ketcham

to $X range recall it had, something that like delivery million we -- because million there to mean, Yes, was I if I I just got fourth. that a shifted was of delayed, I think $X think right, third border got closings issue but that in from was

Chris Shaw

Right, that’s needed. all I Thanks.

Operator

Baldwin comes Baldwin Anthony Please The William Securities. next with from question go ahead.

William Baldwin

color. much. Excuse can just very me, some thank I you if Yes, ask to give going I would you mean

can overall your capabilities, the years, ahead the important that looking expand any FieldNET you right as earnings? to over irrigation next be you can how provide then As is revenues color to several and your

Randy Wood

Yes, a earnings future more a service, looked and revenue with if at capability and as subscription innovative to a that. path. And manage our And stickiness and stab have Randy. you we up as time like plan renewals, you grows, we become view FieldNET your technology base Anytime monitor ladder. natural recurring in it more we the a pivot installed of this you field, very does can that irrigation stream is you through Advisor retain growth FieldNET think significant types to over your at your and almost to create I'll scheduling. it the allows control the that there, a subscription you well, take then and add the does start to your as technology products buy with

health monitoring, machine that the feel that agronomic will subscription artificial out tier engine with intelligence customer our that's roll both we smart to to. base we another create of imagery As up analysis, really pivot going buy platform

Internet see growth technology creates do innovation this many industrial and space, going and So our our this being our Things, key recurring do see of as companies we we those as forward. to strategy in revenue and stream grows

William Baldwin

It growers FieldNET it the of this based Randy, pivot base what installed a have percent looks of at all center are amount that this time? of how tremendous you those of like using systems, your -- opportunity. disclosed many of your aspect on offers some time

Randy Wood

see the that market and We penetration in XX% range itself being climbing.

William Baldwin

are domestically between is a similar the two? or They there pretty internationally and difference

Randy Wood

the number America. are in International I've here numbers is you North -- the a The lower. given domestic It's number slightly

is due connectivity that of Some issues. to

more labor. lower is of growing regions those low cost due in efficiency, over access they've than and readily Some labor to less international because rate improvement we low got time, But do available slightly cost just cost at here it start and domestically. to a we see what see

William Baldwin

much. you Thank Great. very

Randy Wood

You bet. you, William. Thank

Operator

ahead. Jones Stifel. Please is The Instructions] go again Nathan next [Operator with from question

Nathan Jones

got a the ask guys, Obviously, I as to questions you've just here couple wanted good deal of flow. with, growth Hey, pretty lot business, got you've irrigation a to cash plus inflation in on demand well.

just about you're how cash on average, how wondering year, to this about could us you than any obviously cash generation thinking be expected year? lower thinking just conversion help this So you're give

Brian Ketcham

Yes, Nathan, this is Brian.

will we've increase flow continue earnings expecting fiscal quarter, cash basis, seen second for the as into here be would the capital which seasonal we we year, third. to in the a year. net the on full the complete working in But approximate think I

Nathan Jones

but the come bit to, progression that there get into it change we into as as a XQ just tend is to XQ things a result, Okay, then unusual the expect revenues on expectation we months? up from of very should seasonally going step good see the summer that I the I from to think. summer to reasonable that maybe, months, XQ, business, XQ step be that would a be lumpy, just is infrastructure anything would And we we up it or normally can on

Brian Ketcham

begins we're that administration lot really we've pre-COVID. to year indicators package tenders and of this what freeze Nathan in the the lower around by a let, have or We strong whether market. leading in than uncertainty don't large The not is being stimulus still of seen announced terms Biden the

from So that just of other and municipalities time response, COVID taking investments typically attention it away lot of time the of taking this uncertainty year. states, and of a some related in the lot thought precedence infrastructure and managing be projects the a there's is might

just traditionally are more is, think lot predict it me a of makes think go, to there could to I that QX area year, a terms little timing. these difficult of than package of and see does to time it we not in whether in that and what purchasing some the of uncertainties, I see or headwind but where most to of that's wait magnitude and entities related COVID this stimulus So going are to

Nathan Jones

how create impacted drag talk your remembered I ago be of at does us given mean, some was, idea about, how might how any to for, I Obama the then? waiting may money” that the number a you deferred here? term government. back you That make on And Stimulus. of this quite sense. just guys business point, getting you how did investments that remember Can If short led back out projects to give it see from “free long

Randy Wood

are Yes, in And I document look has I roads at poor Nathan time. have per pays statistics really in billion a the the time not you and infrastructure alarming. in over if of what in been But is each $XXX very every highways opinion. miles roughly described some would in think congestion traffic at published, in miles the jobs, I'm are plan, or XXX,XXX one good terms major those of American condition. year, the $X,XXX quite documentation, of to Therefore don't Brian it and as costs motorist poor condition, that wasted of Delays due five of says that's engaged or fuel.

$XX look that's Infrastructure it. billion other billion billion, at modernize these road problems safety, solution complex large problems, have So $XX when Lindsay to those and the projects, attached and roads allocated money are to for that or Solution you Zipper Road to a bridges, been improve $XXX

in just So some unpredictability. a of I stability it's not -- of that but see if, matter matter when, It's that how take will approved be transpire, we'd is will it released spent in it so probably terms we a length do that to think too guessing of exactly get projects, did. predict funding in and will how be out could it's we when to speculate of early long-term this that revenue and and if

Nathan Jones

Fair enough. Thanks the for questions. taking

Randy Wood

Nathan. you, Thank right. All

Operator

call over some you no questions. to Mr. closing back At this remarks. turn time, for be Wood, to more there appear the I'll

Randy Wood

progress Thank the your We will earnings third fiscal our everybody. second our call. you for continued you participation forward This of quarter on quarter. today thank and interest conclude following to updating XXXX close our look you. Well,

Operator

conference Thank is for attending presentation. The concluded. you today's now

now may You disconnect.

Lindsay (LNN) 6 Apr 212021 Q2 Earnings call transcript