Lsi Industries Inc (LYTS) SEC Filing 10-Q Quarterly Report for the period ending Wednesday, March 31, 2021

Exhibit 99.1

LSI INDUSTRIES REPORTS FISCAL THIRD QUARTER 2021 RESULTS

DECLARES QUARTERLY CASH DIVIDEND

CINCINNATI, OH, April 22, 2021

Third Quarter 2021 Summary

For the three months ended March 31, 2021, LSI reported year-over-year growth in net sales, adjusted net income, adjusted EBITDA and cash flow. LSI reported GAAP net income of $1.5 million, or $0.05 per diluted share in the fiscal third quarter, versus $1.9 million, or $0.07 per diluted share in the prior period. The Company’s prior year fiscal third quarter results included a non-recurring, pre-tax gain of $3.7 million, or $0.12 per diluted share, resulting from the sale of the North Canton, Ohio facility. Fiscal third quarter adjusted EBITDA was $4.4 million, an increase of $2.8 million when compared to the prior year period.

LSI generated free cash flow of $10.6 million for the quarter, increasing its total cash and equivalents to $23.5 million as of March 31, 2021. On March 30, 2021, LSI extended the maturity of its revolving credit facility from March 2022 to March 2026 and increased total availability by $25 million to $100 million. As of March 31, 2021, LSI had cash and total availability on its credit facility of $23.5 million and $100 million, respectively. The Company had no long-term debt at the end of the quarter.

The Company declared a regular cash dividend of $0.05 per share payable May 11, 2021 to shareholders of record on May 3, 2021.

Management Commentary

James A. Clark, President and Chief Executive Officer commented, “We reported positive year-over-year growth in net sales during the third quarter despite the lingering effects of the pandemic and weather-related disruptions that occurred in the period. Our team has continued to respond to changing market conditions, as the first two months of the quarter were sluggish but followed by a stair-step increase in market activity for March, allowing us to enter the fiscal fourth quarter with increased momentum. These efforts are reflected in our strong third quarter results, as gross margin, adjusted net income, operating cash flow and adjusted EBITDA all improved when compared to the prior year.