Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q2 2023 Earnings Presentation
15 slides from Lsi Industries's earnings presentation, Jan 26, 2023
Slide 1: Second Quarter Fiscal 2023 Results Conference Call
Second Quarter Fiscal 2023 Results Conference Call January 26, 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 growth across key performance Vertical market strategy driving sustained sales Strong F2Q23 indicators growth Net sales +16% y/y; adj. operating income +79% Strong organic share gains in targeted vertical performance led by y/y; adjusted net income +80% y/y; supported by marke
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) Project wins in both $10.6 $128.8 existing vertical markets $9.0 $111.1 and underserved $5.9 markets with profitable $4.4 growth potential Adjusted EBITDA +54% F2Q22 F2Q23 y/y; Adjusted EBITDA F2Q22 F2Q23 Reported Operating In
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Segment Sales ($M) Lighting Segment Adj. Gross Margin ($M) 17% y/y sales growth – leveraging growing $66.8 $57.3 position in targeted $20.5 $16.9 vertical markets Margin Rate Indoor lighting sales Margin Rate 29.5% 30.6% +32% y/y; Outdoor lighting +20% y/y F2Q22 F2Q2
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Segment Sales ($M) Display Solutions Segment Adj. Gross Margin ($M) 15% y/y sales growth – strong activity within $62.0 $53.9 refueling/c-store and $13.7 grocery $8.6 MarginRate Margin Rate Proven performance Margin Rate 22.1% 30.6% resulted in addi
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Reduced total working capital 6% sequentially $90.5 Reduced total inventory $83.4 $84.3 $84.9 by 9% sequentially $78.9 Margin Rate Margin Rate 30.6% 22.1% Continuing supply chain stabilization supports F2Q22 3Q22 F4Q22 F1Q23 F2Q23 tar
Slide 8: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Free Cash Flow ($M)(1,2) During last 12 months, FCF Conversion FCF Conversion FCF Conversion FCF Conversion free cash flow 39% 75% 76% 68% generation in excess of $30 million; $18 y/y $8.0 $10.1 $8.9 improvement in F2Q23 $3.3 Margin Rate Margin Rate free cash flow 30.6%
Slide 9: Investment Summary
INVESTMENT SUMMARY American-Made Company Positioned for Profitable Growth EXPAND Our Vertical • Integrated Lighting and Display Solutions Company with Adjacent Focus Growth Opportunities in Services Businesses • Strong Foundation With Entrenched Position in Target Vertical Market CHANGE Applications
Slide 10: Appendix
APPENDIX
Slide 11: 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 and six months ended December 31, 2022, and 2021. Operating income, net income and earnings per share, which exclude the impact of acquisition cos
Slide 12: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net Sales [a] 110,111 127,470 127,069 128,804 Operating Income 5,161 7,175 10,021 9,038 Acquisition costs 21 112 - - Consulting Expense: Commercial Growth Initiatives - - 303 486 Severance costs/Restructruing costs 5 8 12 33 Stoc
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Lighting Segment Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net Sales [a] 57,126 67,786 67,534 66,833 Operating Income 4,959 7,022 9,157 6,755 Severance costs/Restructruing costs 4 5 13 18 Stock compensation expense 104 85 42 113 Adjusted Operating Income 5,067 7,112 9,212 6,886 Depreci
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Three Months Ended Six Months Ended December 31 December 31 2022 2021 (In thousands, except per share data) 2022 2021 Diluted Diluted Diluted Diluted EPS EPS Reconciliation of net income to adjusted net income EPS EPS $ 6,417 $ 0.22 $ 3,105 $ 0.11 Net income as reported $ 12,
Slide 15: For additional questions, please contact 720.778.2415
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations