Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q3 2023 Earnings Presentation
17 slides from Lsi Industries's earnings presentation, Apr 27, 2023
Slide 1: Third Quarter Fiscal 2023 Results Conference Call
Third Quarter Fiscal 2023 Results Conference Call April 27, 2023
Slide 2: Disclaimer
DISCLAIMER This presentation contains “forward-looking statements”—that is, statements related to future events within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In t
Slide 3: Key Messages
KEY MESSAGES Sustained commercial & operational Diversified revenue mix supports stable growth Strong F3Q23 results momentum Lighting Segment sales increased 17% y/y, Net sales +7% y/y; adj. operating income +47% supported by strength across indoor and outdoor highlighted by y/y y/y; adjusted EBITDA
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) Exceeded record, prior-year $117.5 $7.7 $8.8 $110.1 comparison, $5.2 $6.0 demonstrating strong execution on commercial and F2Q22 F2Q23 operational priorities Reported Operating Income Adjusted Operating In come F3Q22 F3Q23 2 A
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Segment Sales ($M) Lighting Segment Adj. Gross Margin ($M) 17% y/y sales growth – leveraging growing $66.7 $57.1 position in targeted $20.3 vertical markets $16.7 Margin Rate Indoor lighting sales Margin Rate 30.4% 29.2% +29% y/y; Outdoor lighting +18% y/y F3Q22 F3Q2
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Segment Sales ($M) Display Solutions Segment Adj. Gross Margin ($M) 4% y/y sales decline due to timing of QSR digital signage program $53.0 $50.8 $11.9 $10.2 Adjusted EBITDA margin +260 bps y/y to 13.3% MarginMargin Rate Rate Margin Rate 30.6% 23.5%
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Reduced total working capital 6% sequentially $83.4 $84.3 $90.5 $84.9 $79.8 Reduced total inventory by 8% sequentially and 14% Margin MarginRate Rate below prior-year period 30.6% 22.1% Supply chain continues to 3Q22 F4Q22 F1Q23 F2Q23
Slide 8: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Free Cash Flow ($M)(1,2) During last 12 months, free cash flow $11.7 generation of ~$39 $10.1 $8.9 million; $9 y/y $8.0 improvement in F3Q23 free cash flow $3.3 Margin MarginRate Rate 30.6% 22.1% During last 12 months, F3Q22 F4Q22 F1Q23 F2Q23 F3Q23 Reduced net debt 2 ou
Slide 9: Fast Forward Financial Targets [FY23-FY28]
FAST FORWARD FINANCIAL TARGETS [FY23-FY28] Revenue Growth ($M) Adjusted EBITDA / Margin ($M) $160 $800 12.5% $150 9.5%-10.0% $490 $100 $47-$49 2023e* M&A Organic 2028 2023e* 2028 Growth Targeted Commercial Expansion Focused Operational Excellence Long-Term Value Creation Durable Revenue Growth Stabl
Slide 10: Fast Forward Strategic Priorities
FAST FORWARD STRATEGIC PRIORITIES Enterprise Growth Partner of Choice Business Excellence Capital Allocation Expand Our Vertical Markets and Build & Leverage Partners and Focus on Total Value Creation Balanced & Disciplined Approach Solutions Offering Ecosystems to Driving Shareholder Value ü Deeper
Slide 11: Appendix
APPENDIX
Slide 12: Statement on Non-GAAP Financial Measures
STATEMENT ON NON-GAAP FINANCIAL MEASURES This presentation includes adjustments to GAAP operating income, net income and earnings per share for the three months ended March 31, 2022 and 2021. Operating income, net income and earnings per share, which exclude the impact of acquisition costs, stock co
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q4 2022 Q1 2023 Q2 2023 Q3 2023 Lighting Segment Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net Sales [a] 127,470 127,069 128,804 117,470 Net Sales [a] 67,786 67,534 66,833 66,707 Operating Income 7,175 10,021 9,038 7,732 Operating Income 7,022 9,157 6,755 6,529 Acquisiti
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Three Months Ended Nine Months Ended March 31 March 31 2023 2022 (In thousands, except per share data) 2023 2022 Diluted Diluted Diluted Diluted EPS EPS Reconciliation of net income to adjusted net income EPS EPS $ 4,669 $ 0.16 $ 3,618 $ 0.13 Net income as reported $ 17,347 $
Slide 15: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2022 Q3 2023 Lighting Segment Q3 2022 Q3 2023 Net Sales [a] 110,111 117,470 Net Sales [a] 57,126 66,707 Gross Margin 26,793 32,204 Gross Margin 16,654 20,278 Severance costs - - Severance costs - Restructuring and plant closure costs (gains) - - Restructurin
Slide 16: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Total consolidated current assets $ 158,558 $ 158,917 $ 170,407 $ 149,025 $ 145,823 Total consolidated current liabilities $ 75,171 $ 74,619 $ 79,935 $ 64,109 $ 66,036 Consolidated working capital $ 83,387 $ 84,298 $ 90,472 $ 84,916 $ 7
Slide 17: Thank you, LSI Investor Relations
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations