LSI Industries Inc. · NASDAQ:LYTS
LSI Industries — Investor Presentation (January 2025)
42 slides from LSI Industries's investor presentation, January 2025
Slide 1: Investor Presentation Fast Forward January 2025
NASDAQ: LYTS INVESTOR PRESENTATION FAST FORWARD JANUARY 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. In t
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Company Overview – FY2024 Revenue $470M
COMPANY OVERVIEW – FY2024 REVENUE $470M • Expanded market leadership by driving targeted vertical acquisitions (EMI and JSI) and advanced solution development. Serving Our Marketplace From • Leading vertically integrated commercial indoor/outdoor 16 Manufacturing lighting and display solutions compa
Slide 5: Uniquely Positioned In Target Markets
Uniquely Positioned In Target Markets • Conglomerates • Vertical / Application Solutions Driven • Standard / High Volume • End-User Driven Specifications • “Telephone Book” Portfolio • Competency with Modification and Customization • Convert Focused Specialist to Standard Volume • Strong Engineering
Slide 6: Vertical Market Focus
VERTICAL MARKET FOCUS Vertical Markets Automotive Refueling & C-Store QSR Retail & Grocery Parking Sports Complex Warehouse Market Driven Portfolio Lighting Solutions Display Solutions Services Indoor Outdoor Controls • Printed Graphics • Creative Services • Facades and Cladding • Site Surveys • Hig
Slide 7: Innovation
INNOVATION Customer / Market Driven Opportunities Strong Vertical Alignment • 40+ New or Improved Products Launched Annually • 100+ New or Improved Products Over the Last 4 Years International PCT Application No. • 30+% of Sales Come from New Products PCT/US2022/031165 • Robust Product Development P
Slide 8: Professional Services
PROFESSIONAL SERVICES Program Management • Program Managed LSI Digital Menu Boards at More than 6,500 Locations for One of the Largest Fast-Food • Surveys Chains in North America • Take-Offs / Specifications • $100 Million, Three-Year Award Through Calendar Year-End 2022. Positioned LSI for $30 Mill
Slide 9: Strong Customer Engagement
STRONG CUSTOMER ENGAGEMENT • We provide integrated lighting and display solutions to a growing base of long-tenured customer brands • Our marketing, technical and program management expertise provide customers with a one-stop solution that is unique in the markets we serve • Our customer contracts r
Slide 10: Sustained Multi-Year Growth
SUSTAINED MULTI-YEAR GROWTH • Sales growth in +11.3% +55.9% refueling, C-store, QSR, 4-Year CAGR 4-Year CAGR and other higher- Adj. Operating Income ($M) Adj. Operating Margin (%) margin targeted $497.0 8.8% verticals, driven by $455.1 $469.6 8.4% improved operational 70 9% 8% $315.6 60 $305.6 5.5%
Slide 11: Key Messages
KEY MESSAGES Strong commercial execution, improved Recovery in grocery vertical contributes to Organic revenue organic revenue growth inflection in Display Solutions demand growth +14% on Q2FY25 sales 36% above PY driven by strong Organic Display Solutions revenue increased 50% y/y performance in Re
Slide 12: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) Vertical market strategy supports $147.7 9.1% 7.9% balanced organic $11.7 growth $9.9 $8.5 $109.0 $7.8 Display Solutions, generated more than 50% organic sales growth, supported by Q2FY24 Q2FY25 Q2FY24 Q2FY25 increased sales a
Slide 13: Strong Cash Generation, Balance Sheet Discipline
STRONG CASH GENERATION, BALANCE SHEET DISCIPLINE Free Cash Flow ($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 $7.3 Margin Ma
Slide 14: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Disciplined working capital management supporting $83.3 $86.8 $84.9 strong free cash generation $75.8 $77.2 Working capital and inventory levels remain steady with days EMI Acquisition Margin Rate of WC and DIO declining, as Margin Ra
Slide 15: Fast Forward: Roadmap to FY28
FAST FORWARD Roadmap to FY28
Slide 16: Measuring Our Progress [FY20-FY23]
MEASURING OUR PROGRESS [FY20-FY23] In 2020, LSI launched The Path Forward, a value-creation framework designed to accelerate revenue growth, margin realization, and profitability – Achieved goals two years early Adj. EBITDA ($M) Adj. EBITDA Margin (%) $500 $497 60 12% 10.4% 10.0% 50 10% $306 40 $50
Slide 17: Measuring Our Progress [FY20-FY23]
MEASURING OUR PROGRESS [FY20-FY23] Established a High “Say-Do”, Delivered Continuous Improvement on Strategic Plan The Path Forward delivered on its initial targets ahead of plan, driven by organizational improvements across operations, manufacturing and sales/marketing Implemented vertical market
Slide 18: Measuring Our Progress [FY20-FY23]
MEASURING OUR PROGRESS [FY20-FY23] Revenue Growth ($M) Adjusted EBITDA ($M) / Margin (%) Adjusted Diluted EPS ($) $100 $497 $497 ($M) Adjusted EBITDA ($MM) Adjusted EBITDA Margin (%) $0.99 $91 $306 $60 10.4% 12.0% $50 10.0% $40 8.0% $30 5.1% $52 6.0% $20 4.0% $0.15 $10 $15 2.0% 2020* M&A Organic 202
Slide 19: Introducing Our Fast Forward Initiative
INTRODUCING OUR FAST FORWARD INITIATIVE Current Focus Forward Focus Applications Outside and Inside the Building Vertical and Horizontal Application Specific New Entrenched Presence in Attractive End-Market Verticals Products Accelerating Growing Well Above Industry Average Complementary Bol
Slide 20: Fast Forward Expand End-Market Focus
FAST FORWARD EXPAND END-MARKET FOCUS Current Focus Forward Focus Expansion in Services Adjacent Opportunities Tied to Our Vertical Market Strategy Safety & Security Leverage Trends in Energy, Infrastructure and Evolving Consumer Habits Apply Technological Developments Identify and Grow N
Slide 21: Fast Forward Financial Targets [FY23-FY28]
FAST FORWARD FINANCIAL TARGETS [FY23-FY28] Revenue Growth ($M) Adjusted EBITDA ($M) / Margin (%) $160 $800 Adjusted EBITDA ($MM) Adjusted EBITDA Margin (%) 12.5% $143 $497 10.4% $100 $52 FY23 (A) FY28 2023 M&A Organic 2028 Growth Targeted Commercial Expansion Focused Operational Excellence Long-Term
Slide 22: Acquisition of EMI Industries
LSI Industries Acquisition of EMI Industries
Slide 23: Transaction Overview
TRANSACTION OVERVIEW Transaction Highlights Strategic Highlights LSI has acquired EMI Industries (“EMI”) for $50 million cash on The bolt-on acquisition of EMI is a “strategic sequel” April 18, 2024 to the platform acquisition of JSI store fixtures in 2021 Transaction funded through availability on
Slide 24: Leading Retail Display Solutions Company
LEADING RETAIL DISPLAY SOLUTIONS COMPANY EMI’s unique value proposition EMI operates five U.S. based facilities that house design, EMI provides vertically merges product design, engineering and manufacturing activities integrated design, engineering and manufacturing capabilities with installation a
Slide 25: Highly Complementary Solutions Offering
HIGHLY COMPLEMENTARY SOLUTIONS OFFERING Product Offering C-Store Grocery Restaurants Solutions Offering Concept Phase Design & Engineering Millwork Products Metal Products Refrigeration EMI produces custom millwork with EMI designs and engineers metal-based EMI is experienced in both custom and Cust
Slide 26: Expanding Solution Set Within Target Verticals
EXPANDING SOULTION SET WITHIN TARGET VERTICALS Through Acquisition, LSI Continues to Enhance the Value Proposition to the Customer Grocery Case Study C-Store Case Study LSI LSI has strong presence has a strong presence within the store in the exterior interior, led by grocery refueling station and d
Slide 27: Significant Multi-Year Synergy Potential
SIGNIFICANT MULTI-YEAR SYNERGY POTENTIAL Facilities 11 5 16 Employees 1525 320 1,845 Annual Revenue(1) $473.6 million $87.0 million $560.6 million Annual Adj. EBITDA(1) $51.5 million $5.5 million $57.0 million TTM Adj. EBITDA Margin(1) 10.9% 6.3% 10.2% (1) Reflects LSI TTM performance through Q2FY24
Slide 28: Vertical Applications
& Nr \ NENT STE NV Ww NON \ X \VZ / AVAN lA V YX v A /aslar ar Wreic\ IT INET TNS Y ENT TICN cat Seam eases ads VERTICAL heeee | APPLICATIONS
Slide 29: Refueling & Convenience Store
REFUELING & CONVENIENCE STORE CANOPY FASCIA LED ACM FASCIA PRINTED 3D CANOPY LOGOS UNDER CANOPY INDOOR LIGHTING ILLUMINATION GRAPHICS LED ILLUMINATION LED FIXTURES DIMENSIONAL SIGNAGE & GRAPHICS DIGITAL MENUS GRAB-N-GO REFRIGERATION / METAL / MILWORKS FIXTURES C-STORE INTERIOR AREA, SOFFIT, & WALL M
Slide 30: Grocery
GROCERY AREA LIGHTING DIMENSIONAL & POLES SIGNAGE & GRAPHICS PEDESTRIAN & WALL MOUNTED LIGHTING TASK & DECORATIVE LIGHTING PARKING LOT & BUILDING INDOOR LIGHTING FRESH REFRIGERATION DIMENSIONAL FIXTURES SIGNAGE & GRAPHICS INTERIOR PRODUCE DISPLAY STORE INTERIOR ©2025 LSI INDUSTRIES 30
Slide 31: Automotive
AUTOMOTIVE HIGH BAY LIGHTING WALL MOUNTED & TASK LIGHTING FAÇADE FIXTURES OUTDOOR VEHICLE DELIVERY FIXTURES SERVICE BAY ARCHITECTURAL & TROFFER LIGHTING GRAPHIC & AREA LIGHTS / POLES DIGITAL SIGNAGE SOLUTIONS EXTERIOR COMPLEX SHOWROOM ©2025 LSI INDUSTRIES 31
Slide 32: Quick Serve Restaurants (QSR)
QUICK SERVE RESTAURANTS (QSR) DRIVE THRU LIGHTING AREA LIGHTS / POLES DIGITAL SIGNAGE WALL MOUNTED & DIGITAL FAÇADE FIXTURES MENU SERVICE DRIVE-THRU DIGITAL SIGNAGE & MENU SERVICE INDOOR LIGHTING DIMENSIONAL SIGNAGE & GRAPHICS EXTERIOR BUILDING & LOT INTERIOR ©2025 LSI INDUSTRIES 32
Slide 33: Investment Conclusion
& INVESTMENT CONCLUSION
Slide 34: Investment Summary
INVESTMENT SUMMARY 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 Deeper Penetration in
Slide 35: Appendix
APPENDIX
Slide 36: 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 37: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION LSI Industries Q2 2024 Q2 2025 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 38: 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 39: 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 40: 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 41: 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 42: For Additional Questions, Please Contact
For Additional Questions, Please Contact 720.778.2415 Thank You, LSI Investor Relations
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