Lsi Industries Inc (LYTS) 10-Q Quarterly Report November 2022

– LSI Industries Inc. (NASDAQ: LYTS, “LSI” or the “Company”) a leading U.S. based manufacturer of display solutions and indoor/outdoor lighting, today reported financial results for its fiscal 2023 first quarter.

FISCAL 2023 FIRST QUARTER

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Net Sales +19% y/y to $127.1 million

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Net Income +100% y/y to $6.3 million; Adjusted Net Income of $7.1 million

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Diluted EPS of $0.22; Adjusted EPS of $0.25

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EBITDA of $12.4 million; Adjusted EBITDA $13.3 million or 10.5%/sales

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Free Cash Flow of $10.1 million

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Debt net leverage decline of 32% y/y to 1.7x

For the fiscal first quarter 2023, LSI delivered significant year-over-year growth in net sales, driven by strong demand in the Company’s key vertical markets for both Lighting and Display Solution products. Operating Income, net income, and adjusted EBITDA each increased substantially on a year-over-year basis in the first quarter, driven by a combination of higher net sales and strong margin realization.

The Company reported fiscal first quarter net sales of $127.1 million, an increase of 19% versus the prior-year period. Reported net income was $6.3 million, or $0.22 per diluted share, versus $3.1 million, or $0.11 per diluted share in the prior-year period. Adjusted net income was $7.1 million, or $0.25 per diluted share in the fiscal first quarter, compared to $3.5 million, or $0.13 per diluted share last year.

The Company reported adjusted EBITDA of $13.3 million in the fiscal first quarter, an increase of 76% versus the prior-year period. LSI reported an adjusted EBITDA margin rate of 10.5% in the first quarter, versus 7.1% in the first quarter last year, driven by a combination of volume growth, improved price realization, disciplined cost management and a more favorable sales mix. A reconciliation of GAAP to non-GAAP financial results is included in the attached press release schedules.

LSI generated free cash flow of $10.1 million in the fiscal first quarter, driven by year-over-year growth in operating cash flow, together with improved non-cash working capital management. Improved cash flow conversion resulted in a corresponding reduction in the ratio of net debt to trailing twelve-month adjusted EBITDA to 1.7x, LSI’s lowest level in nearly two years.

The Company declared a regular cash dividend of $0.05 per share payable on November 22, 2022, to shareholders of record on November 14, 2022.

The following information was filed by Lsi Industries Inc (LYTS) on Wednesday, November 2, 2022 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Lsi Industries Inc's 10-Q Quarterly Report:

Financial - Earnings Highlight
The improvement in gross profit as a percentage of sales was driven by the increase in net sales and from targeted pricing actions to offset the impact of inflation, as well as favorable project mix.

Financial - Cash Flow Highlight
The increase in net cash flows from operating activities is primarily the result of effective management of the Companys working capital and from improved earnings.
Financial - Earnings Highlight
The increase in Non-GAAP adjusted net income is primarily the net result of an increase in sales and an increase in the gross profit as a percentage of sales.
Financial - Income Highlight
Lighting Segment operating income of $9.2 million for the three months ended September 30, 2022, increased $4.8 million from operating income of $4.3 million in the same period of fiscal 2022 primarily driven by sales volume and by an improvement in gross profit as a percentage of sales.
Revenue - Product Highlight
The increase of $2.8 million was primarily driven by an increase in sales and an improvement of gross profit as a percentage of sales.
Financial - Earnings
Also included below are Non-GAAP...Read more
Other - Other
We describe risks and uncertainties...Read more
Financial - Income
Below is a reconciliation of...Read more
Financial - Earnings
Non-GAAP adjusted net income was...Read more
Other - Other
We believe that these adjusted...Read more
Financial - Cash Flow
The $12.1 million change in...Read more
Financial - Expense
The increase in interest expense...Read more
Financial - Earnings
The improvement in gross profit...Read more
Revenue - Product
The Company?s efforts over the...Read more
Revenue - Product
Net sales were driven by...Read more
Other - Other
Impacting the effective tax rate...Read more
Other - Other
These non-GAAP measures may be...Read more
Other - Other
Net inventory in the Display...Read more
Revenue - Product
Growth was broad-based, with sales...Read more
Financial - Expense
Operating expenses of $5.6 million...Read more
Revenue - Product
The sales increase is primarily...Read more
Revenue - Product
Net sales of $127.1 million...Read more
Other - Other
Net inventories of $80.5 million...Read more
Revenue - Product
Display Solutions Segment net sales...Read more
Financial - Income
The $2.8 million of income...Read more
Financial - Income
The $1.0 million of income...Read more
Financial - Dividend
In November 2022, the Board...Read more
Financial - Earnings
Gross profit of $22.3 million...Read more
Financial - Earnings
Gross profit of $12.5 million...Read more
Financial - Income
Page 20 Operating income of...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

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

Exhibit 10.1: Material Contract

Exhibit 10.2: Material Contract

Exhibit 10.3: Material Contract

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-Q Quarterly Report
Accession Number: 0001437749-22-026026
Submitted to the SEC: Fri Nov 04 2022 4:03:28 PM EST
Accepted by the SEC: Fri Nov 04 2022
Period: Friday, September 30, 2022
Industry: Electric Lighting And Wiring Equipment