Lsi Industries Inc (LYTS) SEC Filing 10-Q Quarterly report for the period ending Tuesday, March 31, 2020

Exhibit 99.1

LSI INDUSTRIES REPORTS FISCAL THIRD QUARTER 2020 RESULTS

AND DECLARES QUARTERLY CASH DIVIDEND

CINCINNATI, OH, April 23, 2020 -- LSI Industries Inc. (NASDAQ: LYTS, or the “Company”) a leading U.S. based manufacturer of indoor/outdoor lighting and graphics solutions, today announced results for the fiscal third quarter 2020.

Third Quarter 2020 Highlights

LSI generated improved profitability on modestly lower sales during the fiscal third quarter, given an increased focus on a higher-value sales mix, together with targeted, structural reductions in operating expenses. The Company reported net income of $1.9 million, or $0.07 per diluted share, in the fiscal third quarter, versus a net loss of ($3.2) million or ($0.12) per diluted share in the prior-year period. Fiscal third quarter results include a non-recurring $3.7 million pre-tax gain resulting from sale of the LSI North Canton, Ohio facility in March, 2020, as well as $0.7 million of restructuring expense. Excluding these recurring items, LSI reported an adjusted net loss of ($1.1) million, or ($0.04) per diluted share, compared to an adjusted net loss of ($2.2) million or ($0.08) per diluted share in the prior year period.

The Company reported fiscal third quarter adjusted EBITDA of $1.7 million, versus $0.7 million in the prior-year period. LSI generated free cash flow of $3.5 million in the third quarter, contributing to a further reduction in long-term debt outstanding during the period. As of March 31, 2020 LSI had total net debt of $7.1 million or 0.5x trailing twelve month Adjusted EBITDA. The schedule reconciling GAAP and non-GAAP financial results is included later in the release.

Within the Graphics Segment, sales increased on a year-over-year basis for the tenth consecutive quarter, supported by a combination of new and existing programs serving customers within the petroleum vertical. Within the Lighting segment, the continued migration toward a higher-value product mix resulted in slightly lower sales during the period, although segment operating income remained consistent with prior-year levels.

The Company declared a regular cash dividend of $0.05 per share payable May 12, 2020 to shareholders of record on May 4, 2020.