Lindsay Corporation (NYSE:LNN) Q2 2022 Earnings Conference Call April 5, 2022 11:00 AM ET

CompanyParticipants

Randy Wood - President, Chief Executive Officer & Chief Operating Officer

Brian Ketcham - Senior Vice President & Chief Financial Officer

Conference Call Participants

Brian Drab - William Blair

Brett Kearney - Gabelli Funds

Adam Farley - Stifel

Jon Braatz - Kansas City Capital

Chris Shaw - Crespi

Operator

Good morning. My name is Sarah and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindsay Corporation Second Quarter Fiscal 2022 Earnings Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions.

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. For these statements, we claim the protection of the safe harbor and forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Please note, this event is being recorded.

I would now like to turn the conference over to Mr. Randy Wood, President and Chief Executive Officer.

Randy Wood

Thank you and good morning, everyone. Welcome to our second quarter earnings call. With me today is Brian Ketcham, our Chief Financial Officer.

I'd like to open today's call by addressing the conflict and humanitarian crisis in Ukraine. We're deeply saddened by the unprovoked invasion of Ukraine and recognize the profound impact these events are having on many around the world. This crisis highlights the conflict between the role we play in feeding a growing world while also making decisions that align with our purpose and business results.

On March 14, we announced that we've suspended business activity in Russia and Belarus and will not accept new machine orders for delivery to these markets. We also expect significant disruptions will persist in the Ukrainian market as we are not currently able to supply goods to this region. The combined revenue for both Russia and Ukraine has historically represented less than 5% of our total revenue. Our thoughts are with those impacted by this crisis and we hope peace comes to the region soon. The global pandemic continued to impact our business and create challenges in the quarter. All our facilities remained operational. However, we did see a significant disruption in labor availability in Nebraska in the December-January timeframe as the Omicron variant surged. At times, upwards of 15% of our workforce was absent due to a positive test or mandatory quarantine periods. This impacted our ability to produce and ship in the quarter. But we are pleased to report that the spike has subsided and we were back to normal staffing levels by quarter end. Based on the revised CDC guidelines, we have now lifted restrictions at all facilities in the United States and we officially returned to our offices under a hybrid work model on March 7. We again thank our employees and dealers around the world for their ongoing resilience and focus over the past two years.