Slide 1: Fiscal Fourth Quarter 2023 Results Conference Call
Fiscal Fourth Quarter 2023 Results Conference Call August 17, 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 Strong commercial and operational execution Lighting; sales growth continues; Long-term Strong F4Q23 results F4Q23 sales 3% below PY due to Display market demand fundamentals remain intact Solutions project timing, while TTM sales +9% ; Lighting Segment sales increased 5% y/y, highlight
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) 8.4% Delivered record $497.0 fiscal fourth quarter $455.1 5.5% $37.0 $42.0 and full-year 2023 9.5% $25.0 results 6.4% $21.2 $127.5 $123.6 $11.7 $8.1 $10.2 $7.2 Strong full-year growth in net sales, operating income, adjusted E
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Segment Sales ($M) Lighting Segment Adj. Gross Margin ($M) 5% y/y sales growth on $272.5 31.9% challenged PY comparison – $233.4 30.0% $86.8 leveraging growing position in targeted vertical markets $70.1 33.3% 31.1% Strong demand within Margin Rate $67.8 $71.4 Parkin
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Segment Sales ($M) Display Solutions Segment Adj. Gross Margin ($M) 12% y/y sales decline due to 22.3% project timing in F4Q23, but $221.7 $224.5 increased 13% for the full- 17.6% $50.2 year 2023, excluding $100 23.2% $39.1 million digital menu boar
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Reduced total working $90.5 capital in F4Q23 by 10% y/y $84.9 $84.3 and 5% sequentially $79.8 $75.5 Reduced total inventory by more than $10 million in Margin MarginRate Rate fiscal 2023, supporting a 30.6% 22.1% reduction in working
Slide 8: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Free Cash Flow ($M)(1) During last 12 months, free cash flow generation of ~$46 $15.6 million; $8 y/y improvement in F4Q23 free cash flow $11.7 $10.2 During last 12 months, $8.9 $8.0 Margin MarginRate Rate Reduced net debt 30.6% 22.1% outstanding by $44 million; net lev
Slide 9: Appendix
APPENDIX
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 March 31, 2022 and 2021. Operating income, net income and earnings per share, which exclude the impact of acquisition costs, stock co
Slide 11: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net Sales [a] 127,470 127,069 128,804 117,470 123,636 Operating Income 7,175 10,021 9,038 7,732 10,237 Acquisition costs 112 - - - - Consulting Expense: Commercial Growth Initiatives - 303 486 75 - Severance costs/Restruc
Slide 12: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Lighting Segment Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net Sales [a] 67,786 67,534 66,833 66,707 71,377 Operating Income 7,022 9,157 6,755 6,529 9,192 Severance costs/Restructruing costs 3 13 18 - 20 Stock compensation expense 90 42 113 97 119 Adjusted Operating Income 7,11
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Three Months Ended Twelve Months Ended June 30 June 30 2023 2022 (In thousands, except per share data) 2023 2022 Diluted Diluted Diluted Diluted EPS EPS Reconciliation of net income to adjusted net income EPS EPS $ 8,415 $ 0.28 $ 5,176 $ 0.18 Net income as reported $ 25,762 $
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Full Year LSI Industries Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 22 FY 23 Net Sales [a] 127,470 127,069 128,804 117,470 123,636 455,121 496,979 Gross Margin 32,458 34,738 34,139 32,204 35,864 109,209 136,945 Severance costs - 13 18 - - - 31 Adjusted Gross Margin [b] 32,458
Slide 15: Working Capital and Inventory
WORKING CAPITAL AND INVENTORY Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total consolidated current assets $ 158,917 $ 170,407 $ 149,025 $ 145,823 $ 149,876 Total consolidated current liabilities $ 74,619 $ 79,935 $ 64,109 $ 66,036 $ 74,333 Consolidated working capital $ 84,298 $ 90,472 $ 84,916 $ 79,7
Slide 16: For additional questions, please contact 720.778.2415
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations