Lsi Industries Inc. · NASDAQ:LYTS

Lsi Industries — Q4 2022 Earnings Presentation

17 slides from Lsi Industries's earnings presentation, Aug 18, 2022

  1. Slide 1: Fourth Quarter and Fiscal 2022 Results Conference Call

    Fourth Quarter and Fiscal 2022 Results Conference Call August 18, 2022

  2. 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

  3. Slide 3: Key Messages

    KEY MESSAGES 1 Strong growth across key metrics. F4Q22 sales +31% y/y and +16% sequentially (from F3Q22); adjusted operating income +75% y/y to $8.1 million; Adjusted EBITDA +56% y/y to $10.6 million; adjusted net income +81% y/y to $6.0 million 2 Market conditions remain favorable. Continue to inve

  4. Slide 4: Consolidated Financial Results

    CONSOLIDATED FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) • Experienced strong sales volume growth across legacy LSI and JSI business $455.1 • Net sales growth of +31% y/y in F4Q22; +44% y/y in $315.6 FY22 $21.2 $127.5 • Adjusted EBITDA margin $97.0 $7.1 $8.0 +130 bps y/y to 8.3% in

  5. Slide 5: Lighting Segment Update

    LIGHTING SEGMENT UPDATE Lighting Sales ($M) Lighting Adj. Gross Margin ($M) • Lighting sales increased 29% y/y, supported by $233.4 improved supply chain and $189.0 demand growth within vertical markets $70.1 $57.0 • F4Q22 adjusted gross $67.8 margin rate of 31.1%, +210 $52.7 $21.1 $15.3 bps vs. PY

  6. Slide 6: Display Solutions Segment Update

    DISPLAY SOLUTIONS SEGMENT UPDATE • Display Solutions sales Display Solutions Sales ($M) Display Solutions Adj. Gross Margin ($M) increased 35% y/y, driven by strong demand within $39.1 $221.7 the grocery and QSR markets $126.6 $22.0 • Segment Adjusted EBITDA growth+54% y/y to $6.6 $59.7 $11.3 millio

  7. Slide 7: Disciplined Working Capital Management

    DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) • Total working capital flat sequentially, with decline in inventories offset by $83.4 $84.3 higher accounts receivable $66.7 $66.8 (due to higher sales) • As-planned inventory reduction reflects improved supply chain conditions, with

  8. Slide 8: Capital Allocation Priorities

    CAPITAL ALLOCATION PRIORITIES • Generated free cash flow of Free Cash Flow ($MM) $8.0 million, versus $2.7 million in the PY period $8.0 • Positive cash flow in $3.3 second half of fiscal 2022, ($8.2) ($9.1) following ~$20 million inventory investment in first half of the year to support growth • Re

  9. 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

  10. Slide 10: Appendix

    APPENDIX

  11. 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

  12. Slide 12: Non-GAAP Reconciliation

    Non-GAAP RECONCILIATION LSI Industries Q3 2021 Q2 2022 Q3 2022 Q4 2022 Lighting Segment Q3 2021 Q2 2022 Q3 2022 Q4 2022 Net Sales [a] 72,204 111,143 110,111 127,470 Net Sales [a] 45,740 57,276 57,126 67,786 Operating Income 2,096 4,422 5,161 7,175 Operating Income 3,797 4,623 4,959 7,022 Acquisition

  13. Slide 13: Non-GAAP Reconciliation

    Non-GAAP RECONCILIATION LSI Industries Q3 2020 Q4 2020 Q1 2021 Q1 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Debt 7,919 - - - - 68,178 78,271 86,601 84,958 79,567 Less: Cash 820 3,517 9,463 9,463 23,528 2,282 2,570 914 1,248 2,462 Net Debt Outstanding 7,099 (3,517) (9,463) (9,463) (23,528)

  14. Slide 14: Non-GAAP Reconciliation

    Non-GAAP RECONCILIATION Full Year Full Year Lighting Segment Q4 2021 Q4 2022 FY 22 FY 21 LSI Industries Q4 2021 Q4 2022 FY 22 FY 21 Net Sales [a] 52,729 67,786 233,449 189,000 Net Sales [a] 97,017 127,470 455,120 315,612 Gross Margin 15,313 21,111 70,120 57,004 Gross Margin 22,904 32,458 109,208 78,

  15. Slide 15: Non-GAAP Reconciliation

    Non-GAAP RECONCILIATION Full Year Full Year LSI Industries Q4 2021 Q4 2022 FY 22 FY 21 Lighting Segment Q4 2021 Q4 2022 FY 22 FY 21 Operating Income - Reported 1,046 7,175 21,201 8,030 Operating Income - Reported 3,809 7,022 20,942 13,328 Severance costs and Restructuring 9 8 11 26 Severance costs a

  16. Slide 16: Non-GAAP Reconciliation

    Non-GAAP RECONCILIATION Three Months Ended Twelve Months Ended June 30 June 30 2022 2021 (In thousands, except per share data) 2022 2021 Diluted Diluted Diluted Diluted EPS EPS Reconciliation of net income to adjusted net income EPS EPS $ 5,176 $ 0.18 $ 198 $ 0.01 Net income as reported $ 15,032 $ 0

  17. Slide 17: Thank you, LSI Investor Relations

    For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations

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