Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q1 2023 Earnings Presentation
17 slides from Lsi Industries's earnings presentation, Nov 2, 2022
Slide 1: First Quarter Fiscal 2023 Results Conference Call
First Quarter Fiscal 2023 Results Conference Call November 2, 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 growth across key performance metrics. F1Q23 sales +19% y/y; adjusted operating income +118% y/y to $10.9 million; Adjusted EBITDA +76% y/y to $13.3 million; adjusted net income +100% y/y to $7.1 million 2 Achieved sixth consecutive quarter of double-digit sales growth. Our ver
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS • Strong price and volume Total Net Sales ($M) Operating Income ($M) growth across both $127.1 reporting segments $10.9 $10.0 • Net sales growth of +19% y/y; Adjusted EBITDA +76% y/y; Adjusted net income $106.4 $4.4 $5.0 +100% y/y • Gross Profit and Adjusted EBITDA Mar
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Sales ($M) Lighting Adj. Gross Margin ($M) • Lighting sales increased 32% y/y, supported by $67.5 improved supply chain and demand growth within $51.3 $22.3 vertical markets $15.5 Adj. Gross • F1Q23 adjusted gross Adj. Gross Adj. Adj.Gross Gross Margin Margin Rate Ra
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE • Display Solutions sales Display Solutions Sales ($M) Display Solutions Adj. Gross Margin ($M) increased 8% y/y, as growth within refueling/c-store and $59.5 grocery/pharma was offset $55.1 by lower QSR/Retail sales $12.5 • F1Q23 adjusted gross $9.0 margin rate of 2
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) • Working capital includes $6.6 million growth due to higher cash balance; $90.5 excluding cash, working capital was flat versus $84.3 $83.4 F4Q22 $78.9 • Inventory increased $6.1 million, or 8%, on a sequential basis in F1Q23 to supp
Slide 8: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES • Free cash flow increased Free Cash Flow ($MM)(1) $18.3 million y/y to $10.1 million 39% 76% 76% FCF Conversion FCF Conversion FCF Conversion • Third sequential quarter of positive free cash flow, as $10.1 pace of inventory $8.0 investments to support $3.3 product avai
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 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Lighting Segment Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net Sales [a] 106,397 111,143 110,111 127,470 127,069 Net Sales [a] 51,260 57,276 57,126 67,786 67,534 Operating Income 4,444 4,422 5,161 7,175 10,021 Operating Inc
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 Q4 2022 Q1 2023 Debt 7,919 - - - - 68,178 78,271 86,601 84,958 79,567 77,546 Less: Cash 820 3,517 9,463 13,584 23,528 2,282 2,570 914 1,248 2,462 9,028 Net Debt Outstanding 7,099 (3,517) (9
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Full Year LSI Industries Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 FY 22 FY 21 Net Sales [a] 106,397 111,143 110,111 127,470 127,069 455,120 315,612 Gross Margin 24,510 25,448 26,793 32,458 34,738 109,208 78,975 Severance costs - - - - 12 - - Restructuring and plant closure cos
Slide 15: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Full Year Fourth Quarter First Quarter LSI Industries FY 22 FY 21 FY 22 FY 21 FY 23 FY 22 Operating Income - Reported 21,201 8,030 7,175 1,046 10,021 4,444 Severance costs and Restructuring 11 26 8 9 12 - Stock Compensation 3,289 1,976 823 660 551 556 Consulting Expense: Comm
Slide 16: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Three Months Ended September 30 (In thousands, except per share data) 2022 2021 Diluted Diluted Reconciliation of net income to adjusted net income EPS EPS Net income as reported $ 6,262 $ 0.22 $ 3,133 $ 0.11 Stock compensation expense 420 0.01 407 0.02 Consulting expense: Co
Slide 17: For additional questions, please contact LSI Investor Relations
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations