Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q3 FY2022 Earnings Presentation
18 slides from Lsi Industries's earnings presentation, Apr 28, 2022
Slide 1: Third Quarter Fiscal 2022 Results Conference Call
Third Quarter Fiscal 2022 Results Conference Call April 28, 2022
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 1 • Strong y/y sales growth and profitability in both Lighting and Display Solutions segment driven by combination of volume growth and improved price realization 2 • Generated book-to-bill ratio above 1.0 in F3Q22; exit F3Q22 with backlog sequentially higher than in F2Q22, and substant
Slide 4: Consolidated F3Q22 Financial Results
CONSOLIDATED F3Q22 FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) • Experienced strong sales volume growth across +53% y/y total growth +12% y/y organic growth legacy LSI and JSI business $110.1 • Operating margin +190 bps +146% growth y/y y/y to 5.4%; modest $72.2 increase from F2Q22;
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Sales ($M) Lighting Adj. Gross Margin ($M) • Lighting sales increased 25% y/y, supported by improved customer $57.3 $57.1 demand across major $45.7 $16.9 channels $16.7 • Growth balanced across $14.2 multiple verticals • Lighting Adj. EBITDA growth+21% y/y F3Q21 F2Q2
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Sales ($M) Display Solutions Adj. Gross Margin ($M) • Display Solutions sales increased 100% y/y; +100% y/y total growth adjusted operating +410 bps y/y $53.9 $53.0 • Began supplying display $26.5 $10.2 fixtures on $17 million order $8.6 from large
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) • Increased working capital a result of JSI acquisition, $78.9 $83.4 together with inventory $63.8 $66.7 build ahead of improved end-market demand • Product availability initiative positioning LSI to capitalize on unmet demand F2Q22,
Slide 8: Inventory Investments Drive Commercial Growth
INVENTORY INVESTMENTS DRIVE COMMERCIAL GROWTH • Generated positive free Free Cash Flow ($MM) cash flow in F3Q22, despite continued working capital $10.6 Planned inventory build of $19.4 million investments in inventory to support commercial $3.3 $2.7 demand • Expect positive free cash flow for the s
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 months ended March 31, 2022 and 2021. Operating income, net income and earnings per share, which exclude the impact of acquisition costs, stock co
Slide 12: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2021 Q2 2022 Q3 2022 Lighting Segment Q3 2021 Q2 2022 Q3 2022 Net Sales [a] 72,204 111,143 110,111 Net Sales [a] 45,740 57,276 57,126 Operating Income 2,096 4,422 5,161 Operating Income 3,797 4,623 4,959 Acquisition costs - 340 21 Severance costs - - 4 Sever
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Debt 7,919 - - - - 68,178 78,271 86,601 84,958 Less: Cash 820 3,517 9,463 13,584 23,528 2,282 2,570 914 1,248 Net Debt Outstanding 7,099 (3,517) (9,463) (13,584) (23,528) 65,896 75,701 85,6
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q3 2021 Q2 2022 Q3 2022 Lighting Segment Q3 2021 Q2 2022 Q3 2022 Net Sales [a] 72,204 111,143 110,111 Net Sales [a] 45,740 57,276 57,126 Gross Margin 18,092 25,448 26,793 Gross Margin 14,159 16,898 16,654 Severance costs - - - Severance costs - Restructuring an
Slide 15: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q3 2021 Q3 2022 Diluted EPS Net Income $ 1,472 $ 0.05 $ 3,618 $ 0.13 Stock compensation expense 314 0.01 576 0.02 Acquisition costs - - 16 - Severance costs - - 4 - Tax impact due to the change in the estimated annual tax rate used for GAAP reporting purposes 44 - - - Net Inc
Slide 16: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q3 2021 Q3 2022 % Variance Lighting Segment $ 45,740 $ 57,126 24.9% Display Solutions Segment $ 26,464 $ 52,985 100.2% Total Net Sales $ 72,204 $ 110,111 52.5% Less: JSI Store Fixtures - 29,045 Total Organic Net Sales $ 72,204 $ 81,066 12.3% ©2021 LSI INDUSTRIES 16
Slide 17: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q2 2022 Q3 2022 Total consolidated current assets $ 146,643 $ 158,558 Total consolidated current liabilities $ 67,791 $ 75,171 Consolidated working capital $ 78,852 $ 83,387 Less: JSI current assets 28,664 34,424 JSI current liabilities 13,579 17,705 Working capital excluding
Slide 18: For additional questions, please contact 720.778.2415
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations