Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q2 2024 Earnings Presentation
15 slides from Lsi Industries's earnings presentation, Jan 25, 2024
Slide 1: Fiscal Second Quarter 2024 Results Conference Call
Fiscal Second Quarter 2024 Results Conference Call January 25, 2024
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 Continue to advance F2Q24 sales 15% below PY as expected, due to Significant y/y decline in segment sales due to Display Solutions project timing; despite sales expected, temporary pause in grocery vertical vertical market decl
Slide 4: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) Delivered stable margin realization, $128.8 8.2% 8.0% sustained profitability, $109.0 $10.6 $9.0 despite sales decline $7.8 $8.7 Solid performance in Lighting offset by anticipated disruption in F2Q23 F2Q24 Display Solutions,
Slide 5: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Segment Sales ($M) Lighting Segment Adj. Gross Margin ($M) Sales outperformed the 35.0% broader non-resi market 30.6% driven by continued healthy $66.8 $64.8 activity in key verticals $20.5 $22.7 Segment gross margin rate Margin Rate improved 440 basis points to 30.4
Slide 6: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Segment Sales ($M) Display Solutions Segment Adj. Gross Margin ($M) Performance was unfavorably 22.1% impacted by the previously 20.1% mentioned pause in grocery $62.0 $13.7 vertical spending $8.9 $44.2 Used “pause” to prepare for return Margin Rate
Slide 7: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Working capital declined 13% vs. PY, driven by Y/Y and $84.9 $79.8 sequential decline in product $76.2 $75.8 $73.3 inventories Aligning inventory levels with Margin MarginRate Rate 30.6% 22.1% current demand conditions; anticipate inv
Slide 8: Strong Cash Generation, Balance Sheet Discipline
STRONG CASH GENERATION, BALANCE SHEET DISCIPLINE Free Cash Flow ($M)(1) During last 12 months, free $46.4 $45.4 cash flow generation of ~$44 $43.8 $38.8 million, representing 85% $30.4 free cash flow conversion (as % of TTM Adjusted EBITDA) $15.6 $11.7 $9.2 $8.9 $7.3 Margin Rate Margin Rate During l
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 December 31, 2023, and 2022. Gross Margin, operating income, net income, and earnings per share, which exclude the impact of long-te
Slide 11: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Lighting Segment Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net Sales [a] 128,804 117,470 123,636 123,441 109,005 Net Sales [a] 66,833 66,707 71,377 67,641 64,796 Operating Income 9,038 7,732 10,237 11,028 7,819 Operating In
Slide 12: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Diluted Diluted Diluted Diluted Diluted Diluted LSI Industries Q1 2023 EPS Q2 2023 EPS Q3 2023 EPS Q4 2023 EPS Q1 2024 EPS Q2 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 $ 5,906 $ 0.20 Consulting Expense: Commercial
Slide 13: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Lighting Segment Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net Sales [a] 128,804 117,470 123,636 123,441 109,005 Net Sales [c] 66,833 66,707 71,377 67,641 64,796 Gross Margin 34,139 32,204 35,864 36,589 31,536 Gross Margin
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Working Capital Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total consolidated current assets $ 149,025 $ 145,823 $ 149,876 $ 154,192 $ 141,393 Total consolidated current liabilities $ 64,134 $ 66,037 $ 76,562 $ 77,973 $ 65,554 Consolidated working capital $ 84,891 $ 79,786 $ 73,
Slide 15: For Additional Questions, Please Contact
For Additional Questions, Please Contact 720.778.2415 Thank you, LSI Investor Relations