Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q3 2024 Earnings Presentation
15 slides from Lsi Industries's earnings presentation, Apr 25, 2024
Slide 1: Fiscal Third Quarter 2024 Results Conference Call
Fiscal Third Quarter 2024 Results Conference Call April 25, 2024
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 Focused Execution on Earnings Quality Display Solutions Segment Update Solid execution F3Q24 sales (8%) below PY, while adjusted net Demand strength within refueling, c-store and QSR delivering sustained income +14% above PY, given continued price offset by fewer new project releases in
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) Continue to advance 8.2% 7.5% high-value vertical $117.5 $8.8 $8.8 market strategy $108.2 $7.7 $7.7 Lighting applications demand remains stable; Display Solutions mixed, with refueling/c-store F3Q23 F3Q24 remaining strong, and
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Segment Sales ($M) Lighting Segment Adj. Gross Margin ($M) Solid Lighting performance, as 33.2% LSI continued to deliver above- $66.7 $64.9 30.4% market growth in F3Q24 $20.3 $21.6 Project quotation levels remain healthy. Quote-to-order conversion period lengthening,
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Segment Sales ($M) Display Solutions Segment Adj. Gross Margin ($M) Strong growth in the refueling / $50.8 23.5% c-store and QSR verticals offset 22.6% $43.3 by continued delay in grocery $11.9 vertical $9.8 Within refueling / c-store, F3Q24 Margin
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Working capital increased sequentially, driven by increased $79.8 $73.3 $76.2 $75.8 $77.2 cash balance. Non-cash working capital has declined 4% vs. PY We continue to align inventory Margin MarginRate Rate levels with current demand 3
Slide 8: Strong Cash Generation, Balance Sheet Discipline
STRONG CASH GENERATION, BALANCE SHEET DISCIPLINE Free Cash Flow ($M)(1) During last 12 months, free cash $46.4 $45.4 flow generation of ~$43 million, $38.8 $43.8 $43.3 representing 84% free cash flow conversion (as % of TTM Adjusted EBITDA) $15.6 $11.7 $11.2 Margin Rate Margin Rate $9.2 $7.3 During
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 rolling five quarters ending March 31, 2024. Gross Margin, operating income, net income, and earnings per share, which exclude the impact
Slide 11: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Lighting Segment Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Sales [a] 117,470 123,636 123,441 109,005 108,186 Net Sales [c] 66,707 71,377 67,641 64,796 64,881 Gross Margin 32,204 35,864 36,589 31,536 31,210 Gross Margin
Slide 12: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Lighting Segment Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Sales [a] 117,470 123,636 123,441 109,005 108,186 Net Sales [a] 66,707 71,377 67,641 64,796 64,881 Operating Income 7,732 10,237 11,028 7,819 7,660 Operating In
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Diluted Diluted Diluted Diluted Diluted LSI Industries Q3 2023 EPS Q4 2023 EPS Q1 2024 EPS Q2 2024 EPS Q3 2024 EPS Net Income Reported $ 4,669 $ 0.16 $ 8,415 $ 0.28 $ 8,028 $ 0.27 $ 5,906 $ 0.20 $ 5,375 $ 0.18 Consulting Expense: Commercial Growth Initiatives 59 - 13 - - - 76
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Working Capital Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Total consolidated current assets $ 145,823 $ 149,876 $ 154,192 $ 141,393 $ 143,485 Total consolidated current liabilities $ 66,037 $ 76,562 $ 77,973 $ 65,554 $ 66,261 Consolidated working capital $ 79,786 $ 73,314 $ 76,
Slide 15: For Additional Questions, Please Contact
For Additional Questions, Please Contact 720.778.2415 Thank you, LSI Investor Relations