Slide 1: Fiscal Second Quarter 2025 Results Conference Call
Fiscal Second Quarter 2025 Results Conference Call January 23, 2025
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. Forw
Slide 3: Key Messages
KEY MESSAGES Strong commercial execution, improved Recovery in grocery vertical contributes to Organic revenue organic revenue growth inflection in Display Solutions demand growth +14% on Q2FY25 sales 36% above PY driven by strong Organic Display Solutions revenue increased 50% y/y performance in Re
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) Vertical market strategy supports 9.1% $147.7 7.9% balanced organic $11.7 growth $9.9 $8.5 $109.0 $7.8 Display Solutions, generated more than 50% organic sales growth, supported by Q2FY24 Q2FY25 Q2FY24 Q2FY25 increased sales a
Slide 5: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Segment Sales ($M) Display Solutions Segment Adj. Gross Margin ($M) Display Solutions segment 20.1% delivered 50% organic sales $89.5 17.7% growth, supported by rebound in grocery, continued demand $15.9 strength in refueling, c-store $44.2 and QSR
Slide 6: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Segment Sales ($M) Lighting Segment Adj. Gross Margin ($M) Lighting segment sales down $64.8 35.0% 10% y/y given challenging $58.2 prior-year comparison 32.7% $22.7 Small project activity remains healthy, while large project $19.0 activity requiring longer quote-to-c
Slide 7: Strong Cash Generation, Balance Sheet Discipline
STRONG CASH GENERATION, BALANCE SHEET DISCIPLINE Free Cash Flow ($M)(1) TTM Free Cash Flow ($M)(1) Generated free cash flow of $8.8 million, +21% y/y; TTM free $43.8 $43.3 $41.4 cash flow through Q2FY25 of $38.0 $38.9 more than $41 million $11.2 $10.3 $11.1 $8.8 Reduced net debt by $7 $7.3 Margin Ma
Slide 8: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Disciplined working capital management supporting $83.3 $86.8 $84.9 strong free cash generation $75.8 $77.2 Working capital and inventory levels remain steady with days EMI Acquisition Margin Rate of WC and DIO declining, as Margin Ra
Slide 9: Appendix
APPENDIX
Slide 10: Statement on Non-GAAP Financial Measures
STATEMENT ON NON-GAAP FINANCIAL MEASURES This presentation includes adjustments to GAAP gross margin, operating income, net income, and earnings per share for the periods ending December 31, 2023, and December 31, 2024. Gross Margin, operating income, net income, and earnings per share, which exclud
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION LSI Industries Q2 2024 Q2 2005 Net Sales 109,005 147,734 Gross Margin 31,536 34,861 Lease expense on the step-up basis of acquired leases 69 Severance costs/Restructuring costs 30 - Adjusted Gross Margin 31,566 34,930 Adjusted Gross Margin % 29.0% 23.6% Lighting Segment Q2 20
Slide 12: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION LSI Industries Q2 2024 Q2 2025 Lighting Segment Q2 2024 Q2 2025 Net Sales 109,005 147,734 Net Sales 64,796 58,210 Operating Income 7,819 8,459 Operating Income 8,857 5,972 Consulting expense: commercial growth initiatives - 81 Amortization expense of acquired intangible asset
Slide 13: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Diluted Diluted Diluted Diluted LSI Industries Q1 2024 EPS Q2 2024 EPS Q3 2024 EPS Q4 2024 EPS Net Income Reported $ 8,028 $ 0.27 $ 5,906 $ 0.20 $ 5,375 $ 0.18 $ 5,668 $ 0.19 Acquisition costs - - - - - - 722 0.02 Consulting expense: commercial growth initiatives 13 - - - - -
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION LSI Industries Q2 2024 Q2 2025 Net Income Reported $ 5,906 $ 5,647 Income tax 1,489 1,702 Interest expense, net 453 728 Other expense (income) (29) 382 Operating Income as Reported 7,819 8,459 Depreciation and amortization 2,357 3,018 EBITDA $ 10,176 $ 11,477 Consulting expen
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Free Cash Flow Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Cash flow from operations $ 9,276 $ 12,429 $ 11,096 $ 11,846 $ 9,891 Less: Capital expenditures $ (1,956) $ (1,277) $ (762) $ (759) $ (1,066) Free cash flow $ 7,320 $ 11,152 $ 10,334 $ 11,087 $ 8,825 Net Debt Outstanding
Slide 16: For Additional Questions, Please Contact
For Additional Questions, Please Contact 720.778.2415 Thank you, LSI Investor Relations