CINCINNATI–(BUSINESS WIRE)– LSI Industries Inc. (NASDAQ: LYTS, “LSI” or the “Company”) a leading U.S. based manufacturer of indoor/outdoor lighting and display solutions, today announced results for the third quarter of fiscal year 2022.
FISCAL THIRD QUARTER 2022
Net sales +53% y/y to $110.1 million, organic net sales +12% y/y
Lighting sales +25% y/y; Display Solutions sales +100% y/y
Net Income +146% y/y to $3.6 million, or $0.13 per diluted share
Adjusted net income +130% y/y to $4.2 million, or $0.15 per diluted share
Adjusted EBITDA +92% y/y to $8.5 million
Announces $15 million share repurchase authorization
LSI在第三财季的净销售额和盈利能力均实现了强劲的同比增长, 在照明和显示解决方案业务的广泛商业需求的推动下, increased price realization, and contributions from the JSI Store Fixtures acquisition (“JSI”) completed in May 2021.
The Company reported third quarter net sales of $110.1 million, an increase of 53% versus the prior year period. Net sales excluding contributions from the JSI acquisition, increased 12% versus fiscal third quarter of 2021.
LSI reported net income of $3.6 million, or $0.13 per diluted share in the third quarter, versus $1.5 million, or $0.05 per diluted share, in the prior-year period. Adjusted net income was $4.2 million, or $0.15 per diluted share for the third quarter of fiscal 2022, compared to $1.8 million, or $0.07 per diluted share, last year.
The Company reported Adjusted EBITDA of $8.5 million in the fiscal third quarter, an increase of 92% versus the prior-year period. A reconciliation of GAAP and non-GAAP financial results is included in this press release.
LSI generated free cash flow of $3.3 million in the quarter, including $6.400万美元的可自由支配投资，用于增加库存，以支持现有的积压水平和订单率. At the end of the third quarter, the Company’s ratio of net debt to trailing twelve month Adjusted EBITDA declined to 2.6x, compared to 2.8x at the end the fiscal second quarter 2022.
The Company declared a regular quarterly cash dividend of $0.05 per share payable May 17, 2022 to shareholders of record on May 9, 2022.
MANAGEMENT COMMENTARY
“LSI团队在第三财季取得了出色的业绩，收入和盈利能力同比增长显著, accomplished in an ongoing challenging operating environment,” stated James A. Clark, President, and Chief Executive Officer of LSI. “Sales exceeded $100 million for the third consecutive quarter, contributing to operating income, net income, and diluted earnings per share all more than double prior year results. 我们调整后的营业利润率提高了190个基点，调整后的EBITDA利润率提高了160个基点.”
“Throughout the last year, 我们有意增加库存水平，以确保在全球供应链长期中断期间产品的可用性,” continued Clark. “As order rates and backlog levels accelerated, LSI装备精良，以额外的库存加上美国的制造能力来支持不断增长的需求. Last quarter, 我们继续通过利用短交付时间的项目机会来确保新业务的成功. For example, LSI成功地为全国最大的仓库零售商之一确保了相当多的皇冠足球即时比分照明, as an existing supplier could not meet specified delivery requirements. As the existing provider of exterior lighting to this customer, we capitalized on this service gap, while demonstrating the benefit of our fully integrated vertical market solutions. 在市场需求增加和施工安装进度紧张的时期，产品可用性一直是LSI的优势.”
“第三季度，我们大多数主要垂直市场的销售和订单活动都有所增加,” continued Clark. “Within the grocery sector, 我们继续为全国最大的连锁杂货店之一提供价值1700万美元的冷藏展示设备订单, shipping to approximately 200 locations. To date, we have already received $12 million in additional orders from the same grocery customer, for shipment scheduled in fiscal 2023. Within the c-store market, customer inquiries for introduction to JSI display products is growing rapidly, 计划在第四财政季度开始在一家大型连锁商店进行初步试点.”
“In the fiscal third quarter, LSI在快餐店(QSR)市场赢得了一个重要的合同，其大型品牌专注于鸡肉市场,” continued Clark. “Under the terms of the contract, LSI将为该客户提供外部免下车数字菜单板系统和内部数字标牌, who currently operates more than 2,500 restaurants worldwide. In addition, we were recently awarded an extension to our existing large QSR program, 扩大该计划，为客户在加拿大的地点提供菜单板解决方案. Revenue from this large existing QSR program is now expected to extend into fiscal 2024.”
“Within our Lighting segment, sales increased 25% in the third quarter, representing the fourth consecutive quarter of double-digit growth, when compared to prior year. 销售增长基础广泛，所有主要垂直市场均报告同比增长. Our new and feature/function enhanced products, including our own controls platform, are having a significant impact. Customers embrace not only the products designed for specific applications, 但也有多种价位的产品定位，以满足不同的项目预算需求. The Lighting gross margin rate of 29.2% for the third quarter was consistent sequentially with the second quarter, reflecting our ability to effectively align price to input and transit cost inflation.
“Within our Display Solutions segment, sales grew 100% compared to the prior year, including contributions from the JSI acquisition. 在这个细分市场的三个主要产品类别中，查询和报价活动都很高, including conventional graphics, digital signage, and display fixtures. Similar to Lighting, we are experiencing growth in our target vertical markets including Grocery and QSR. The Display Solution gross margin rate improved 430 bps, reflecting both the accretion effect of JSI and improvements to core business margins.
“In addition, 我们今天宣布，我们的董事会批准了一项1500万美元的股票回购计划, 与我们平衡的资本配置方式和对股东价值创造的承诺相一致. 这一授权反映了我们对终端市场潜在实力的持续信心, together with the significant profitable growth opportunities for LSI moving forward.
“In summary, our business is in a strong position as we look to the fourth quarter and year ahead,” stated Clark. “Third quarter order rate was strong, achieving a book-to-bill ratio over 1.0. As a result, 我们进入第四财政季度的积压比第三季度有所增加, while being significantly above prior year levels. Market indicators remain favorable and quote levels remain at a high level. On balance, recent market share gains with new and existing customers, together with effective and consistent operational execution, supported by improved demand fundamentals across our end markets, position us to drive sustained growth for the balance of the year and into fiscal 2023.”
CONFERENCE CALL
A conference call will be held today at 11:00 a.m. ET to review the Company’s financial results and conduct a question-and-answer session.
电话会议的网络广播和随附的演示材料将在LSI工业公司网站的投资者关系部分提供.londonstudentlettings.com. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
Details of the conference call are as follows:
Call Dial-In:
1-877-407-4018
Conference ID:
13728792
Call Replay:
1-844-512-2921
Replay Passcode:
13728792
电话会议的重播将在2022年4月28日至2022年5月12日之间播出. To listen to a replay of the teleconference via webcast, please visit the Investor Relations section of LSI’s website at s5d.londonstudentlettings.com.
ABOUT LSI INDUSTRIES
Headquartered in Greater Cincinnati, LSI是一家上市公司，股票在纳斯达克股票市场上市，代码为LYTS. The Company manufactures non-residential lighting and display solutions. Non-residential lighting consists of high-performance, American-made lighting solutions. 公司在户外照明应用方面的实力为其尊贵的客户提供了更多解决方案的机会. Display solutions consist of graphics solutions, digital signage, and technically advanced food display equipment for strategic vertical markets. LSI的内部专家团队还提供全面的项目管理服务，以支持大规模产品的推出. The Company employs about 1,400 people at 11 manufacturing plants in the U.S. and Canada. Additional information about LSI is available at s5d.londonstudentlettings.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “encourage,” “projects,” “plans,” “expects,” “can,” “intends,” “believes,” “seeks,” “may,” “will,” “should,或这些词和类似表达的否定版本，以及它们使用的上下文. 有关不确定性的详细信息，这些不确定性可能导致我们的实际结果与前瞻性陈述中所表达的结果存在重大差异, visit http://investors.lsicorp.以及我们的10-K表格年度报告和10-Q表格季度报告，其中包含风险因素.
Three Months Ended March 31, 2022 Results
Net sales for the three months ended March 31, 2022 were $110.1 million, up 53% from the three months ended March 31, 2021 reported net sales of $72.2 million. Lighting Segment net sales of $57.1 million increased 25% and Display Solutions Segment net sales of $53.0 million increased 100% from last year’s third quarter net sales. Net income for the three months ended March 31, 2022 was $3.6 million, or $0.13 per share, compared to $1.5 million or $0.05 per share for the three months ended March 31, 2021. Earnings per share represents diluted earnings per share.
Nine Months Ended March 31, 2022 Results
Net sales for the nine months ended March 31, 2022 were $327.7 million, up 50% from the nine months ended March 31, 2021 reported net sales of $218.6 million. Lighting Segment net sales of $165.7 million increased 22% and Display Solutions Segment net sales of $162.0 million increased 97% from last year’s net sales. Net income for the nine months ended March 31, 2022 was $9.9 million, or $0.35 per share, compared to $5.7 million or $0.21 per share for the nine months ended March 31, 2021. Earnings per share represents diluted earnings per share.
Balance Sheet
The balance sheet at March 31, 2022 included current assets of $158.6 million, current liabilities of $75.2 million and working capital of $83.4 million, which includes cash of $1.2 million. The current ratio was 2.1 to 1. The balance sheet also included shareholders’ equity of $142.5 million and long-term debt of $81.4 million. It is the Company’s priority to continuously generate sufficient cash flow, coupled with our credit facility, to adequately fund operations.
Cash Dividend Actions
The Board of Directors declared a regular cash dividend of $0.05 per share for the third quarter of fiscal 2022, payable May 17, 2022 to shareholders of record as of the close of business on May 9, 2022. The indicated annual cash dividend rate is $0.20 per share. 董事会通过了一项皇冠足球即时比分股息的政策，该政策规定股息将由董事会根据其对GAAP和非GAAP基础上的收益评估自行决定, cash flow requirements, financial condition, debt levels, stock repurchases, future business developments and opportunities, and other factors deemed relevant by the Board.
Non-GAAP Financial Measures
This press release includes adjustments to GAAP operating income, net income and earnings per share for the three and nine months ended March 31, 2022 and 2021. Operating income, net income and earnings per share, which exclude the impact of stock compensation expense, acquisition costs, severance costs and restructuring costs, are non-GAAP financial measures. 我们排除了这些项目，因为我们认为它们不能代表业务的持续运营结果. Also included in this press release are non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA and Adjusted EBITDA), Free Cash Flow and Organic Net Sales. 我们相信，这些都是有用的补充措施，以评估我们的业务经营业绩. These measures are used by our management, including our chief operating decision maker, to evaluate business results, and are frequently referenced by those who follow the Company. These non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, 非公认会计准则衡量标准不是基于任何一套全面的会计规则或原则. Non-GAAP measures have limitations, 因为它们并没有反映与我们的结果相关的所有金额，这些金额是根据美国法律确定的.S. GAAP. Therefore, 这些指标应仅用于结合相应的GAAP指标评估我们的业绩. 以下是这些非公认会计准则指标与所述期间报告的净收入和每股收益以及EBITDA计算的对账表, Adjusted EBITDA, Free Cash Flow and Organic Net Sales.