Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q1 2022 Earnings Presentation
19 slides from Lsi Industries's earnings presentation, Nov 3, 2021
Slide 1: First Quarter Fiscal 2022 Results Conference Call
First Quarter Fiscal 2022 Results Conference Call November 3, 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 Continuing to advance vertical Strong operational & financial JSI acquisition performed in-line market strategy execution with expectations Achieved net sales growth of +52% y/y, New product development; sales and JSI sales of $23 million in F1Q22, reflecting including a full quarter of
Slide 4: Consolidated F1Q22 Financial Results
CONSOLIDATED F1Q22 FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) • Generated strong organic +52% y/y total growth and inorganic y/y growth +19% y/y organic growth across key financial performance metrics $106.4 +100% growth y/y • Impact of selling price $70.0 adjustments increased $4.
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Sales ($M) Lighting Adj. Gross Margin ($M) • Lighting sales increased 13% y/y, supported by $52.7 improved customer $51.3 $15.5 demand a across all key $15.3 categories $45.4 • Lighting generated Adj. EBITDA +10% y/y $13.8 • Outdoor lighting category generated 19% sa
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Sales ($M) Display Solutions Adj. Gross Margin ($M) • Display Solutions sales +124% y/y total growth increased 124% y/y, or 29%, +29% y/y organic growth excluding JSI acquisition $55.1 • JSI generated total sales of $44.3 $9.0 $23.4 million $7.6 $24
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) • Increased working capital a result of JSI acquisition, together with inventory $67.1 build ahead of improved $54.1 end-market demand $50.9 $39.5 • Increased sales and lengthening lead-times for key components contributed to growth i
Slide 8: Free Cash Flow Generation
FREE CASH FLOW GENERATION Free Cash Flow ($M) • Stable cash flow generation supports financial flexibility $10.6 • Free cash flow negative in F1Q22 due to near-term $7.2 inventory investments $5.3 • Interim inventory build will $2.7 decline as supply chain performance stabilizes 2 • Maintain full-ye
Slide 9: Disciplined Balance Sheet Management
DISCIPLINED BALANCE SHEET MANAGEMENT Net Debt Outstanding ($M) Total Cash and LOC Availability ($M) • Cash and availability under $100 million credit facility LOC Availability Cash Balance was $22 million at the end $75.7 of F1Q22 $34.1 • Deployed $90 million $65.9 toward JSI acquisition in May 2021
Slide 10: 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 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 September 30, 2021 and 2020. Operating income, net income and earnings per share, which exclude the impact of acquisition costs, stoc
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q1 2021 Q4 2021 Q1 2022 Lighting Segment Q1 2021 Q4 2021 Q1 2022 Net Sales [a] 70,006 97,015 106,397 Net Sales [a] 45,405 52,729 51,260 Operating Income 2,202 1,046 4,444 Operating Income 3,588 3,809 4,339 Acquisition costs - 2,938 - Restructuring and plant clo
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Debt 23,181 10,437 7,919 - - - - 68,178 78,271 Less: Cash 1,579 1,248 820 3,517 9,463 13,584 23,528 2,282 2,570 Net Debt Outstanding 21,602 9,189 7,099 (3,517) (9,463) (13,584) (23,528) 65,
Slide 15: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q1 2021 Q4 2021 Q1 2022 Net Sales [a] 70,006 97,015 106,397 Gross Margin 18,272 22,904 24,510 Severance costs 3 10 - Restructuring and plant closure costs (gains) - (17) - Adjusted Gross Margin [b] 18,275 22,897 24,510 Adjusted Gross Margin % [b] / [a] 26.1% 23
Slide 16: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q1 2021 Q4 2021 Q1 2022 Diluted EPS Diluted EPS Diluted EPS Net Income $ 1,990 $ 0.07 $ 198 $ 0.01 $ 3,133 $ 0.11 Stock compensation expense 380 0.01 485 0.02 407 0.02 Acquisition costs - - 2,161 0.08 - - Severance costs - - 15 - - - Restructuring and plant closure (gains) co
Slide 17: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q1 2021 Q1 2022 % Variance Lighting Segment $ 45,405 $ 51,260 12.9% Display Solutions Segment $ 24,601 $ 55,137 124.1% Total Net Sales $ 70,006 $ 106,397 52.0% Less: JSI Store Fixtures - 23,347 Total Organic Net Sales $ 70,006 $ 83,050 18.6% Q1 2021 Q1 2022 % Variance Display
Slide 18: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q4 2021 Q1 2022 Total consolidated current assets $ 125,008 $ 140,912 Total consolidated current liabilities $ 70,895 $ 73,802 Consolidated working capital $ 54,113 $ 67,110 Less: JSI current assets 22,911 27,783 JSI current liabilities 8,341 11,594 Working capital excluding
Slide 19: For additional questions, please contact 720.778.2415
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations