Slide 1: Third Quarter Fiscal 2021 Results Conference Call Presentation
THIRD QUARTER FISCAL 2021 RESULTS CONFERENCE CALL PRESENTATION April 22, 2021
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 Return to y/y revenue growth, driven by Broad-based y/y gross margin rate Advancing Business Transformation Graphics segment expansion Continued strategic focus on higher margin vertical Graphics segment revenue increased 20% y/y supported market applications, customer driven new produc
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) $3.0 million y/y improvement Return to y/y growth in consolidated net sales • Return to y/y net sales growth in $2.6 $2.5 $72.2 $2.1 F3Q21 driven by continued $71.0 growth in digital QSR program ($0.5) 2• Higher operating inco
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Segment Sales ($M) Lighting Segment Gross Margin ($M) • Sales gap to prior year has Lingering pandemic-related impact, sales mix shift 530 bps y/y improvement to 31.0% of sales improved each quarter of the fiscal year $49.0 31.0% $45.7 25.7% • Project quotation level
Slide 6: Graphics Segment Update
GRAPHICS SEGMENT UPDATE • 20% y/y growth in segment sales driven by digital QSR demand; More than 4,000 additional site Graphics Segment Sales ($M) Graphics Segment Gross Margin ($M) installations extending through 20% y/y growth in sales 120 bps y/y decline to 14.9% of sales June 2022 under $100 mi
Slide 7: Improved Working Capital Management
IMPROVED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Total Inventory ($M) • Close monitoring of all non-cash working capital – generated 32% y/y reduction; inventory dollars Non-cash working capital declined 32% y/y Inventory dollars declined 7% y/y declined 7% y/y $43.6 $40.4 $0.8 • Succe
Slide 8: Stable Free Cash Flow Generation
STABLE FREE CASH FLOW GENERATION Free Cash Flow – F3Q20 vs. F3Q21 ($M) Free Cash Flow – TTM F3Q20 vs. TTM F3Q21 ($M)(1) • Generated nearly $35 million in free cash flow, less asset sales, on $10.6 $10.6 $40.4 a TTM basis $34.6 $34.5 $3.5 • As noted, prior-year free cash 2 flow contains cash proceeds
Slide 9: Disciplined Balance Sheet Management
DISCIPLINED BALANCE SHEET MANAGEMENT Net Debt Outstanding ($M) • Cash balance of $23.5 million at $62 million improvement to net cash positive in two years the end of F3Q21 • Amended current bank $23.5 agreement to extend our revolving credit facility and $13.6 increased total borrowing $9.5 availab
Slide 10: Investment Summary
INVESTMENT SUMMARY American-Made Company Positioned for Profitable Growth EXPAND Our Vertical • Integrated Lighting / Graphics Solutions Company with Adjacent Growth Opportunities in Focus Services Businesses • Strong Foundation With Entrenched Position in Target Vertical Market Applications; CHANGE
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 December 31, 2020 and 2019. Operating income, net income and earnings per share, which exclude the impact of restructuring and plant
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2020 Q2 2021 Q3 2021 Lighting Segment Q3 2020 Q2 2021 Q3 2021 Operating Income 2,631 2,686 2,096 Net Sales [a] 49,013 45,126 45,740 Restructuring and plant closure costs (gains) (3,055) - - Operating Income 1,102 2,134 3,797 Severance costs 19 21 - Restructu
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Debt 39,541 23,181 10,437 7,919 - - - - Less: Cash 966 1,579 1,248 820 3,517 9,463 13,584 23,528 Net Debt Outstanding 38,575 21,602 9,189 7,099 (3,517) (9,463) (13,584) (23,528) LSI Industries Q3 2
Slide 15: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2020 Q3 2021 Net Sales [a] 71,010 72,204 Gross Margin 15,942 18,092 Severance costs 11 - Restructuring and plant closure costs (gains) 223 - Adjusted Gross Margin [b] 16,176 18,092 Adjusted Gross Margin % [b] / [a] 22.8% 25.1% Lighting Segment Q3 2020 Q3 202
Slide 16: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q3 2020 Q2 2021 Q3 2021 Diluted EPS Diluted EPS Diluted EPS Net Income $ 1,861 $ 0.07 $ 2,208 $ 0.08 $ 1,472 $ 0.05 Restructuring and plant closure (gains) costs (2,565) (0.10) - - - - Severance costs 16 - 17 - - - Stock compensation expense (86) - 318 0.01 314 0.01 Tax impac
Slide 17: Thank you, LSI Investor Relations
For access to our full investor presentation, please visit our investor relations website at https://investors.lsicorp.com or contact our investor relations team at 720.778.2415 Thank you, LSI Investor Relations