Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q2 2022 Earnings Presentation
18 slides from Lsi Industries's earnings presentation, Jan 27, 2022
Slide 1: Second Quarter Fiscal 2022 Results Conference Call
Second Quarter Fiscal 2022 Results Conference Call January 27, 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 Accelerating operational Strong organic and inorganic Lighting Segment driven by momentum growth price and volume growth Sales exceeded $100 million for the second Significant y/y growth in sales and Lighting segment sales +27% y/y; significant consecutive quarter; operating income prof
Slide 4: Consolidated F2Q22 Financial Results
CONSOLIDATED F2Q22 FINANCIAL RESULTS • Broad-based sales growth Total Net Sales ($M) Operating Income ($M) across both Lighting and Display Solutions +45% y/y total growth segments +19% y/y organic growth • Volume recovery, price $111.1 adjustments and cost $76.4 +65% growth y/y discipline contribut
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Sales ($M) Lighting Adj. Gross Margin ($M) • Lighting sales increased 27% y/y, supported by improved customer demand across major $57.3 $51.3 30.4% 30.2% 29.5% channels $45.1 • Product availability initiative creating actionable opportunities to secure short lead-tim
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Sales ($M) Display Solutions Adj. Gross Margin ($M) • Display Solutions sales increased 72% y/y, or 7%, excluding JSI acquisition +72% y/y total growth +7% y/y organic growth • QSR/retail digital signage 19.2% $55.1 $53.9 and JSI grocery/c-store 16.
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT • Increased working capital Total Working Capital ($M) a result of JSI acquisition, together with inventory $78.9 build ahead of improved $67.1 end-market demand $63.8 $50.9 • Product availability initiative positioning LSI to capitalize on unmet demand • Inves
Slide 8: Inventory Investment Drives Commercial Growth
INVENTORY INVESTMENT DRIVES COMMERICAL GROWTH • Product availability Free Cash Flow Bridge - First Half Fiscal 2022 ($MM) initiative drove near-term $8.2 inventory build; expect a reduction in working capital as supply chain performance stabilizes • Planned, $13M inventory build during the first hal
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, 2021 and 2020. Operating income, net income and earnings per share, which exclude the impact of stock compensati
Slide 12: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q2 2021 Q1 2022 Q2 2022 Lighting Segment Q2 2021 Q1 2022 Q2 2022 Net Sales [a] 76,387 106,397 111,143 Net Sales [a] 45,126 51,260 57,276 Operating Income 2,686 4,444 4,422 Operating Income 2,134 4,339 4,623 Acquisition costs - - 340 Restructuring costs (gains)
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Debt 10,437 7,919 - - - - 68,178 78,271 86,601 Less: Cash 1,248 820 3,517 9,463 13,584 23,528 2,282 2,570 914 Net Debt Outstanding 9,189 7,099 (3,517) (9,463) (13,584) (23,528) 65,896 75,70
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q2 2021 Q1 2022 Q2 2022 Net Sales [a] 76,387 106,397 111,143 Gross Margin 19,706 24,510 25,448 Severance costs 5 - - Restructuring and plant closure costs (gains) - - - Adjusted Gross Margin [b] 19,711 24,510 25,448 Adjusted Gross Margin % [b] / [a] 25.8% 23.0%
Slide 15: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION ©2022 LSI INDUSTRIES 15
Slide 16: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION YTD YTD Q2 2021 Q2 2022 % Variance Q2 2021 Q2 2022 % Variance Lighting Segment $ 45,126 $ 57,276 26.9% $ 90,531 $ 108,536 19.9% Display Solutions Segment $ 31,261 $ 53,867 72.3% $ 55,862 $ 109,004 95.1% Total Net Sales $ 76,387 $ 111,143 45.5% $ 146,393 $ 217,540 48.6% Less:
Slide 17: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q1 2022 Q2 2022 Total consolidated current assets $ 140,912 $ 146,643 Total consolidated current liabilities $ 73,802 $ 67,791 Consolidated working capital $ 67,110 $ 78,852 Less: JSI current assets 27,783 28,664 JSI current liabilities 11,594 13,579 Working capital excluding
Slide 18: Thank you, for additional questions please contact
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations