Lsi Industries Inc (LYTS) 10-K Annual Report September 2017

·	reported FY 2017 net sales of $331,392,000, an increase of 3% over $322,196,000 in the prior fiscal year. Excluding the acquisition of Atlas Lighting Products, organic sales declined 3% year-over-year;

reported FY 2017 net income of $3,000,000, or $0.12 per share, a decrease of 68% as compared to net income of $9,482,000, or $0.37 per share, for the prior fiscal year. On a Non-GAAP basis, net income was $4,974,000 or $0.19 per share, a decrease of 49% or $0.19 per share, compared to the prior year Non-GAAP results. Non-GAAP results exclude adjustments related to the impairment of an intangible asset, restructuring and plant closure costs, acquisition deal costs, fair market inventory write-up, and severance costs (see Non-GAAP Financial Measures);

·	reported fourth quarter FY 2017 net sales of $83,419,000 an increase of 3% as compared to $80,844,000 in the same period of the prior fiscal year. Excluding the acquisition of Atlas Lighting, organic sales declined 11% in the fourth quarter year-over-year;

reported fourth quarter FY 2017 net income of $696,000, or $0.03 per share, a decrease of 51% as compared to $1,428,000, or $0.06 per share, for the same period of the prior fiscal year. On a Non-GAAP basis, net income was $519,000 or $0.02 per share, a decrease of 65% or $0.04 per share compared to the prior year fourth quarter Non-GAAP results. Non-GAAP results exclude adjustments related to acquisition deal costs, restructuring and plant closure costs, and severance costs (see Non-GAAP Financial Measures); and

·	declared a regular quarterly cash dividend of $0.05 per share payable September 6, 2017 to shareholders of record August 28, 2017.

Financial Highlights	(In thousands, except per share data; unaudited)
	Three Months Ended June 30						Year Ended June 30
	2017		2016		% Change		2017		2016		% Change
Net Sales	$	83,419	$	80,844		3%	$	331,392	$	322,196		3%
Operating Income as reported	$	499	$	2,081		(76)%	$	3,609	$	13,956		(74)%
Impairment of intangible asset		--		--		n/m		479		--		n/m
Acquisition deal costs		128		--		n/m		1,608		--		n/m
Fair market value inventory write-up		--		--		n/m		155		--		n/m
Restructuring and plant closure costs		101		--		n/m		897		--		n/m
Severance costs		284		68		318%		506		469		8%
Operating Income as adjusted (a)	$	1,012	$	2,149		(53)%	$	7,254	$	14,425		(50)%

Net Income as reported	$	696	$	1,428		(51)%	$	3,000	$	9,482		(68)%
Net Income as adjusted	$	519	$	1,483		(65)%	$	4,974	$	9,800		(49)%

Earnings per share (diluted) as reported	$	0.03	$	0.06		(50)%	$	0.12	$	0.37		(68)%
Earnings per share (diluted) as adjusted	$	0.02	$	0.06		(67)%	$	0.19	$	0.38		(50)%

	6/30/17	6/30/16
Working Capital	$61,704	$88,510
Total Assets	$256,680	$195,560
Long-Term Debt	$49,698	$ nil
Shareholders' Equity	$ 160,078	$ 155,520

(a) The Company recorded a $479,000 pre-tax impairment of an intangible asset in fiscal 2017. The Company also recorded pre-tax acquisition deal costs of $128,000 and $1,608,000 in the fourth quarter and twelve month periods of fiscal 2017, respectively. The Company recorded a $155,000 fair market value inventory

Management Comments and Outlook

Dennis W. Wells, Chief Executive Officer and President, commented, "In spite of difficult market conditions and inflationary pressures, fiscal 2017 represented a year of significant progress for LSI. We continued to invest in our LED Lighting portfolio and Digital Signage with positive results. Our lean efforts are providing meaningful savings, although masked by a soft market and heavy inflation. We completed the highly-strategic acquisition of Atlas, broadening our abilities into the stock and flow portion of the market.

"Notable softness in several market segments where LSI has a strong market position, specifically petroleum and retail, was responsible for the organic decline. This served to mask the growth generated in other target segments and products. Our LED Lighting products grew by 20% and LED now comprises 78% of total lighting sales. We introduced several new LED lighting products during the year, many of which include controls-enhanced solutions. Our recently introduced Mirada family of LED Fixtures has been received positively. These fixtures are ideal for parking lot, strip mall, auto dealership, and general site illumination purposes.

On our Smart Lighting advancement, our Lighting Controls sales grew by 50%, led by AirLink™ in partnership with Lutron using factory installed components. We continue to be encouraged by the feedback we are receiving from the beta installation of our SmartVision® platform, and we will be commercializing this system at the NACS/PEI show in October.

The following information was filed by Lsi Industries Inc (LYTS) on Thursday, August 17, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Lsi Industries Inc provided additional information to their SEC Filing as exhibits

Exhibit 10.9: Material Contract

Exhibit 21: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: LYTS
CIK: 763532
Form Type: 10-K Annual Report
Accession Number: 0001437749-17-015804
Submitted to the SEC: Fri Sep 08 2017 5:13:23 PM EST
Accepted by the SEC: Fri Sep 08 2017
Period: Friday, June 30, 2017
Industry: Electric Lighting And Wiring Equipment