Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q1 2024 Earnings Presentation
16 slides from Lsi Industries's earnings presentation, Nov 2, 2023
Slide 1: Fiscal First Quarter 2024 Results Conference Call
Fiscal First Quarter 2024 Results Conference Call November 2, 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 Focused Strategy Execution Display Solutions Segment Update Strong F1Q24 results F1Q24 sales 3% below PY due to Display Display Solutions segment declined 6% y/y, as Solutions project timing; adjusted EBITDA +13%; industry events in the Grocery vertical disrupting highlighted by adjuste
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) Strong focus on quality 10.3% of earnings, led by 8.6% operating and EBITDA $127.1 $123.4 $11.0 $12.7 $10.0 $10.9 margin expansion +23% y/y growth in adjusted net income +13% y/y growth in adjusted F1Q23 F1Q24 EBITDA F1Q23 F1Q
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Segment Sales ($M) Lighting Segment Adj. Gross Margin ($M) Lighting demand driven by outdoor applications, $67.5 $67.6 specifically parking and 34.4% automotive 33.0% $23.3 $22.3 Sales driven by continued Margin Rate healthy activity in key 30.4% verticals and market
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Segment Sales ($M) Display Solutions Segment Adj. Gross Margin ($M) Display Solutions delivered improved profitability and margin expansion on modest $59.5 24.5% sales decline $55.8 20.9% Sales growth evident within $13.7 $12.5 refueling/c-store, QS
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Working capital declined 13% $88.0 $87.4 vs. PY, driven by Y/Y and sequential decline in product $82.3 inventories $76.2 DIO reduced 9 days versus PY $73.3 Margin MarginRate Rate 30.6% 22.1% Project inventory should remain at current
Slide 8: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Free Cash Flow ($M)(1) During last 12 months, free cash flow generation of ~$45 million, representing 85% $15.6 free cash flow conversion (as $11.7 % of TTM Adjusted EBITDA) $10.1 $9.2 $8.9 Margin MarginRate Rate During last 12 months, 30.6% 22.1% Reduced net debt outst
Slide 9: Appendix
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Slide 10: 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, 2023, and 2022. Gross Margin, operating income, net income, and earnings per share, which exclude the impact of long-t
Slide 11: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Sales [a] 127,069 128,804 117,470 123,636 123,441 Operating Income 10,021 9,038 7,732 10,237 11,028 Consulting Expense: Commercial Growth Initiatives 303 486 75 - 19 Severance costs/Restructruing costs 12 33 20 353 Lo
Slide 12: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Lighting Segment Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Sales [a] 67,534 66,833 66,707 71,377 67,641 Operating Income 9,157 6,755 6,529 9,192 8,753 Severance costs/Restructruing costs 13 18 - 20 - Long-Term Performance Based Compensation 42 113 97 119 92 Adjusted Operati
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Diluted Diluted Diluted Diluted Diluted LSI Industries Q1 2023 EPS Q2 2023 EPS Q3 2023 EPS Q4 2023 EPS Q1 2024 EPS Net Income Reported $ 6,262 $ 0.22 $ 6,417 $ 0.22 $ 4,669 $ 0.16 $ 8,415 $ 0.28 $ 8,028 $ 0.27 Consulting Expense: Commercial Growth Initiatives 226 0.01 399 0.0
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Lighting Segment Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Sales [c] 67,534 66,833 66,707 71,377 67,641 Gross Margin 22,280 20,457 20,278 23,746 23,280 Severance costs/Restructruing costs 13 18 - - - Adjusted Gross Margin [d] 22,293 20,475 20,278 23,746 23,280 Adjusted Gros
Slide 15: Working Capital and Inventory
WORKING CAPITAL AND INVENTORY Free Cash Flow Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Cash Flow from Operations $ 10,583 $ 9,481 $ 12,486 $ 17,038 $ 10,592 Less: Capital Expenditures $ (434) $ (561) $ (759) $ (1,454) $ (1,393) Free Cash Flow $ 10,149 $ 8,920 $ 11,727 $ 15,584 $ 9,199 Net Debt Outstan
Slide 16: Thank you, LSI Investor Relations
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations