Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Q4 FY2021 Earnings Presentation
20 slides from Lsi Industries's earnings presentation, Aug 19, 2021
Slide 1: Fourth Quarter & Fiscal Year 2021 Results Conference Call
Fourth Quarter & Fiscal year 2021 Results Conference Call August 19, 2021
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 Advancing Business Completed acquisition of JSI Ongoing recovery in core lighting Transformation Store Fixtures(1) and display markets Continued strategic focus on higher margin Completed acquisition of JSI on May 21, 2021; Achieved net sales growth of +53% y/y vertical market applicati
Slide 4: Consolidated F4Q21 Financial Results
CONSOLIDATED F4Q21 FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) • Generated strong y/y growth across all key +53% y/y Reported Operating Income Adjusted Operating Income financial performance growth $97.0 metrics $63.5 $4.6 • Product pricing remains firm and volume growth is $2.6 str
Slide 5: Consolidated FY2021 Financial Results
CONSOLIDATED FY2021 FINANCIAL RESULTS Total Net Sales ($M) Operating Income ($M) • Steady improvement in results as fiscal year $315.6 Reported Operating Income Adjusted Operating Income progressed $13.1 $13.0 • Strong momentum across the business entering $8.0 $7.0 F1Q22 $305.6 • Adjusted net incom
Slide 6: Lighting Segment Update
LIGHTING SEGMENT UPDATE Lighting Sales ($M) Lighting Adj. Gross Margin ($M) • F4Q21 Lighting sales improved 30% y/y and 15% $52.7 29.1% sequentially, given $45.7 28.6% GM Rate $40.6 improved end-market GM Rate demand $15.3 $14.2 $11.6 • Consecutive price increases holding, offsetting continued commo
Slide 7: Display Solutions Segment Update
DISPLAY SOLUTIONS SEGMENT UPDATE Display Solutions Sales ($M) Display Solutions Adj. Gross Margin ($M) • Display Solutions sales increased 54% y/y on an $44.3 organic basis; increased $7.6 93% y/y, including JSI $26.5 • Operating income $22.9 $4.6 $3.9 increased 70% y/y • Digital signage activity re
Slide 8: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT Total Working Capital ($M) Total Inventory ($M) • Increased working capital a result of JSI acquisition, together with inventory build ahead of improved $61.1 end-market demand $58.9 • Increased sales and $54.1 lengthening lead-times for key components $48.8 co
Slide 9: Stable Free Cash Flow Generation
STABLE FREE CASH FLOW GENERATION Free Cash Flow – FY20 vs. FY21 ($M) • Stable cash flow generation supports financial flexibility Free Cash Flow, Including Asset Sales Free Cash Flow, Excluding Asset Sales • Generated positive free cash flow in F4Q21 of $2.7 million, despite planned $47.1 million, i
Slide 10: Disciplined Balance Sheet Management
DISCIPLINED BALANCE SHEET MANAGEMENT Net Debt Outstanding ($M) Total Cash and LOC Availability ($M)(1) • Cash and availability under $100 million LOC was $32 LOC Availability Cash Balance million at the end of F4Q21 Net Cash Position • Deployed $90 million toward JSI acquisition in $123.5 May 2021 $
Slide 11: Investment Summary
INVESTMENT SUMMARY American-Made Company Positioned for Profitable Growth EXPAND Our Vertical • Integrated Lighting / Graphics Solutions Company with Adjacent Growth Focus Opportunities in Services Businesses • Strong Foundation With Entrenched Position in Target Vertical Market CHANGE Applications;
Slide 12: Appendix
APPENDIX
Slide 13: 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 twelve months ended June 30, 2021 and 2020. Operating income, net income and earnings per share, which exclude the impact of restructuring and
Slide 14: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q4 2020 Q3 2021 Q4 2021 LSI Industries YTD Q4 2020 YTD Q4 2021 Net Sales [a] 63,470 72,204 97,015 Net Sales [a] 305,558 316,612 Operating Income 1,846 2,096 1,046 Operating Income 13,076 8,030 Acquisition costs - - 2,938 Acquisition costs - 2,938 Restructuring
Slide 15: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Debt 39,541 23,181 10,437 7,919 - - - - 68,178 Less: Cash 966 1,579 1,248 820 3,517 9,463 13,584 23,528 2,282 Net Debt Outstanding 38,575 21,602 9,189 7,099 (3,517) (9,463) (13,584) (23,528
Slide 16: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION LSI Industries Q4 2020 Q3 2021 Q4 2021 LSI Industries YTD Q4 2020 YTD Q3 2021 YTD Q4 2021 Net Sales [a] 63,470 72,204 97,015 Net Sales [a] 305,558 218,597 315,612 Gross Margin 15,769 18,092 22,904 Gross Margin 73,530 56,070 78,974 Severance costs 93 - 10 Severance costs 104 5
Slide 17: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q4 2020 Q3 2021 Q4 2021 Diluted EPS Diluted EPS Diluted EPS Net Income $ 1,513 $ 0.06 $ 1,472 $ 0.05 $ 198 $ 0.01 Acquisition costs - - - - 2,161 0.08 Restructuring and plant closure (gains) costs 231 0.01 - - (13) - Severance costs 192 0.01 - - 15 - Stock compensation expens
Slide 18: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q4 2020 Q4 2021 % Variance Q3 2021 Q4 2021 % Variance YTD Q4 2020 YTD Q4 2021 % Variance Lighting Segment $ 40,559 $ 52,729 30.0% $ 45,740 $ 52,729 15.3% $ 206,199 $ 189,000 -8.3% Display Solutions Segment $ 22,911 $ 44,286 93.3% $ 26,464 $ 44,286 67.3% $ 99,359 $ 126,612 27.
Slide 19: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Q3 2021 Q4 2021 Total consolidated current assets $ 116,402 $ 125,008 Total consolidated current liabilities $ 55,305 $ 70,895 Consolidated working capital $ 61,097 $ 54,113 Less: JSI current assets - 22,911 JSI current liabilities - 8,341 Working capital excluding JSI $ 61,0
Slide 20: Thank you, for additional questions please contact
For additional questions, please contact 720.778.2415 Thank you, LSI Investor Relations