UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025, OR (Exact name of registrant as specified in its charter) Ohio 31-0888951 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 10000 Alliance Road, Cincinnati, Ohio 45242 (Address of principal executive offices) (Zip Code) (513) 793-3200 Registrant ...

LSI Industries Inc. (NASDAQ:LYTS) Q3 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants James Galeese - Chief Financial Officer James Clark - President and Chief Executive Officer Conference Call Participants Aaron Spychalla - Craig-Hallum Capital Group LLC Amit Dayal - H.C. Wainwright & Co. Leanne Hayden - Canaccord Genuity Group Inc. Operator Greetings and welcome to the LSI Industries Third Quarter 2025 Results Conference Call. At this time all participants are in a listen only ...

Fiscal Third Quarter 2025 Results Conference Call April 24, 2025 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. Forward-looking statements often address our expected future business, financial performance, financial condition and results of operations, often cont ...

LSI Industries (LYTS) Q3 2025 Earnings Call April 24, 2025 11:00 AM ET Company Participants James Galeese - Executive VP & CFOJames Clark - President and Chief Executive OfficerLeanne Hayden - Senior Associate - Equity Research Conference Call Participants Aaron Spychalla - Research AnalystAmit Dayal - Managing Director & Senior Technology Analyst Operator As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jim Golis. Please go ahead. James Galeese Welcome, everyo ...

分组1 - LSI reported quarterly earnings of $0.13 per share, matching the Zacks Consensus Estimate, but down from $0.18 per share a year ago [1] - The company posted revenues of $132.48 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 0.40% and up from $108.19 million year-over-year [2] - LSI shares have declined approximately 18.6% since the beginning of the year, compared to an 8.6% decline in the S&P 500 [3] 分组2 - The earnings outlook for LSI is mixed, with the current consensus EPS estimate at $0.18 on revenues of $138.6 million for the upcoming quarter and $0.70 on revenues of $556.39 million for the current fiscal year [7] - The Building Products - Lighting industry, to which LSI belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - LSI reported fiscal Q3 2025 sales of $132.5 million, a 22% increase year-over-year from $108.2 million[4]. - Net income for Q3 2025 was $3.9 million, or $0.13 per diluted share, compared to $5.4 million, or $0.18 per diluted share in Q3 2024[5][27]. - Adjusted EBITDA for the quarter was $11.3 million, representing 8.5% of net sales[5]. - Free cash flow generated in Q3 2025 was $4.7 million, supported by ongoing profitability and working capital efficiency[6]. - Operating income as reported for the three months ended March 31, 2025, was $6.2 million, a decrease of 19% from $7.7 million in 2024[34]. - Net income as reported for the three months ended March 31, 2025, was $3.9 million, down 28% from $5.4 million in 2024[34]. - The diluted earnings per share (EPS) as reported for the three months ended March 31, 2025, was $0.13, a decrease of 28% from $0.18 in 2024[34]. - Adjusted operating income for the three months ended March 31, 2025, was $9.7 million, a decrease of 4% from $10.0 million in 2024[34]. - Adjusted net income for Q3 2025 was $6,331,000, representing 4.8% of total sales[40]. Segment Performance - Display Solutions segment sales increased by 70% year-over-year, contributing significantly to overall sales growth[11]. - Lighting segment net sales decreased by 9% to $59.0 million, while operating margin improved by 110 basis points to 13.3%[13][27]. - The Lighting Segment reported sales of $58,967,000, down 9% from $64,881,000 in Q3 2024[38]. - Comparable Display Solutions sales increased by 15% to $49,728,000 in Q3 2025 from $43,305,000 in Q3 2024[38]. - Total organic net sales remained flat at $108,695,000 in Q3 2025 compared to $108,186,000 in Q3 2024[38]. Cash Flow and Capital Management - Free cash flow for Q3 2025 was $4,716,000, a significant decrease from $11,152,000 in Q3 2024[37]. - Capital expenditures for Q3 2025 were $(690,000), a 46% decrease from $(1,277,000) in Q3 2024[37]. Acquisitions and Market Position - The company completed the acquisition of Canada's Best Holdings for $24 million, enhancing its market presence in Canada[6][12]. - The book-to-bill ratio was 1.06, with a backlog increase of 15% year-over-year, indicating strong future demand[7][10]. Assets and Liabilities - LSI's total assets increased to $380.9 million, up from $348.8 million in the previous quarter[26]. - Current assets as of March 31, 2025, were $185.5 million, with current liabilities of $89.2 million, resulting in working capital of $96.3 million[29]. - Long-term debt as of March 31, 2025, was $51.8 million, while shareholders' equity stood at $221.7 million[29]. Dividends - The company declared a quarterly cash dividend of $0.05 per share, payable on May 13, 2025[8]. - The Board of Directors declared a quarterly cash dividend of $0.05 per share, with an indicated annual cash dividend rate of $0.20 per share[31]. Non-GAAP Measures - Free cash flow and organic sales growth are included as non-GAAP financial measures to assess operating performance[32]. - The company plans to include amortization expense related to acquired intangible assets as an add-back to its non-GAAP reconciliation starting in fiscal 2025[35]. Debt and Financial Ratios - The net debt to adjusted EBITDA ratio rose to 1.0 in Q3 2025 from 0.2 in Q3 2024[37].

Financial Performance - Net sales for the three months ended December 31, 2024, were $147.734 million, a 35.5% increase from $109.005 million in the same period of 2023[10] - Gross profit for the six months ended December 31, 2024, was $68.508 million, slightly up from $68.125 million in 2023, indicating a stable gross margin[10] - Operating income for the three months ended December 31, 2024, was $8.459 million, compared to $7.819 million in 2023, reflecting an 8.2% increase[10] - Net income for the six months ended December 31, 2024, was $12.329 million, down from $13.934 million in 2023, representing a decrease of 11.5%[10] - Basic earnings per share for the three months ended December 31, 2024, was $0.19, a decrease from $0.20 in the same period of 2023[10] - For the three months ended December 31, 2024, total revenue was $58.2 million, a decrease of 34.9% compared to $89.5 million for the same period in 2023[36] - For the six months ended December 31, 2024, total revenue was $116.6 million, down 30.9% from $169.2 million for the same period in 2023[36] Assets and Liabilities - Total current assets as of December 31, 2024, were $163.405 million, slightly up from $162.499 million as of June 30, 2024[16] - Total liabilities as of December 31, 2024, were $127.430 million, down from $129.438 million as of June 30, 2024[19] - The company’s total assets as of December 31, 2024, were $344.545 million, a decrease from $348.800 million as of June 30, 2024[19] - The company’s long-term debt decreased to $34,615,000 as of December 31, 2024, from $50,658,000 in June 2024[19] - The Company reported a total debt of $38,186,000 as of December 31, 2024, down from $54,229,000 as of June 30, 2024[63] Shareholders' Equity - Shareholders' equity increased to $217.115 million as of December 31, 2024, compared to $204.355 million as of June 30, 2024, indicating a growth of 6.2%[19] - The balance of shareholders' equity at December 31, 2024, was $217,115,000, reflecting an increase from $204,355,000 at June 30, 2024, which is an increase of approximately 6.2%[23] Cash Flow and Dividends - Cash flows provided by operating activities increased to $21,737,000 for the six months ended December 31, 2024, compared to $19,868,000 in 2023, representing an increase of about 9.0%[26] - Total cash and cash equivalents at the end of the period increased to $4,712,000 from $2,660,000, marking a significant increase of approximately 77.0%[26] - Cash dividends paid increased to $2,973,000 in 2024 from $2,826,000 in 2023, representing an increase of approximately 5.2%[26] - Cash dividends paid for the six months ended December 31, 2024, were $3,000,000, compared to $2,800,000 for the same period in 2023[65] Acquisition and Goodwill - The company acquired EMI for $59,000 during the period, indicating ongoing market expansion efforts[26] - The company acquired EMI Industries, LLC for $50.0 million, funded by cash on hand and a $75 million revolving line of credit, expected to expand market reach in grocery and restaurant sectors[42] - The acquisition of EMI resulted in a preliminary allocation of $49.9 million to identifiable assets and liabilities, with $12.4 million recorded as goodwill[43] - Goodwill from the acquisition of EMI is $15.67 million, with significant components including customer relationships valued at $7.49 million and tradename at $4.88 million[44] - The gross amount of accounts receivable acquired from EMI was $11.9 million[43] - The company incurred acquisition-related costs of $1.0 million included in selling and administrative expenses[42] Segment Performance - The Lighting Segment reported net sales of $58.21 million for the three months ended December 31, 2024, down from $64.80 million in 2023, a decline of approximately 10.5%[54] - The Display Solutions Segment saw a significant increase in net sales to $89.52 million for the three months ended December 31, 2024, compared to $44.21 million in 2023, representing an increase of about 102.5%[54] - EMI generated net sales of $18.1 million and operating income of $0.7 million for the period from April 18, 2024, to June 30, 2024[44] Expenses and Costs - The company reported depreciation and amortization expenses of $5,958,000 for the six months ended December 31, 2024, up from $4,728,000 in 2023, indicating an increase of about 26.0%[26] - Stock compensation expense for the six months ended December 31, 2024, was $2,188,000, compared to $2,034,000 in 2023, reflecting an increase of approximately 7.6%[26] - The Company expects to record annual amortization expenses of $5,739,000 in 2025, decreasing to $4,497,000 after 2029[62] - The Company recorded interest payments of $1,460,000 for the six months ended December 31, 2024, compared to $1,006,000 in 2023[69] Tax and Compliance - The effective tax rate for the three months ended December 31, 2024, was 23.2%, up from 20.1% in 2023[78] - The Company is in compliance with all loan covenants as of December 31, 2024[64] Inventory and Accrued Expenses - Total inventories as of December 31, 2024, were $69.43 million, slightly down from $70.91 million as of June 30, 2024[57] - Total accrued expenses as of December 31, 2024, were $42.66 million, a decrease from $43.44 million as of June 30, 2024[58]

Fiscal Second Quarter 2025 Results Conference Call January 23, 2025 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. Forward-looking statements often address our expected future business, financial performance, financial condition and results of operations, often c ...

Financial Data and Key Metrics Changes - Net sales for Q2 were above $147 million, with adjusted EBITDA exceeding $13 million and free cash flow of almost $9 million, resulting in a trailing twelve months (TTM) net debt ratio of 0.6 times leverage [9][25]. - Total sales increased by 36% year-over-year, with comparable organic sales rising by 14% [24][25]. - Adjusted earnings per share for Q2 were $0.26 compared to $0.24 in the previous year, and adjusted EBITDA was $13.3 million, which is 20% higher than the prior year quarter [25][26]. Business Line Data and Key Metrics Changes - The Display Solutions segment saw total sales double, with organic growth of 50%, driven by demand resurgence in grocery and continued implementations in the refueling vertical [24][30]. - Sales in the grocery vertical increased over 60%, influenced by the release of previously held programs and the phase-out of R448 technology [30]. - The Lighting segment experienced sales below the prior year due to fluctuations in demand across project sizes, although small project activity remained strong [31][32]. Market Data and Key Metrics Changes - The company reported strong project activity in the refueling/c-store vertical, contributing to approximately 1,000 refueling/c-store sites serviced in Q2, marking the highest quarter in many years [28]. - The resurgence in the grocery vertical was significant, with many projects that had been on hold now moving forward due to increased clarity in the market [12][30]. - The company noted that its Latin America business has started to pick up momentum post-COVID, indicating a recovery in that market [109]. Company Strategy and Development Direction - The company is committed to its Fast Forward plan, focusing on profitable growth and operational efficiency while integrating the acquired EMI business [22][113]. - There is a strong emphasis on new product development, with plans to launch around 40 new products this year, including the next-generation outdoor lighting product, V-LOCITY [20][66]. - The company aims to maintain a vertical market orientation, enhancing its capabilities to offer more goods and services to targeted markets [21]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued order activity, particularly in the Display Solutions and grocery segments, although they acknowledged some uncertainty regarding the sustainability of the surge in demand [40][41]. - There are expectations for improved operational efficiency and margins as the company continues to ramp up production and integrate EMI [47][48]. - Management highlighted the importance of maintaining strong relationships with customers and adapting to changes in the market, including potential impacts from tariffs [52][56]. Other Important Information - The company has reduced its net debt to $33 million, significantly lowering its leverage ratio from 1.3 to 0.6 times since the acquisition of EMI [26]. - The company is actively engaged in larger projects, including data centers and chip manufacturing facilities, although these projects are progressing more slowly than anticipated [17][32]. - Management noted that they have contingency plans in place to address potential supply chain disruptions and have proactively moved some sourcing to mitigate risks [59][60]. Q&A Session Summary Question: Expectations for strength in the second half and seasonality - Management indicated that they expect elevated order rates to continue, particularly in the Display Solutions and grocery segments, although not at the same rate as Q2 [40][41]. Question: Trajectory of gross margins and EBITDA margins - Management acknowledged inefficiencies in Q2 due to rapid ramp-up but anticipates improvements in margins moving forward as operational efficiencies are regained [47][48]. Question: Impact of proposed tariffs - Management believes their domestic focus will mitigate the impact of tariffs, as they have shifted from 20% domestic sourcing to 70% [52][56]. Question: Surge in order activity across verticals - The majority of the surge was related to the grocery market, but there was also significant activity in the petroleum c-store space and QSR projects [94][96]. Question: Delivery delays and managing customer expectations - Management confirmed that they have not experienced delays in product delivery and have maintained efficiency in capacity utilization [100][101]. Question: Changes in permitting and supply chain issues - Permitting has normalized, and the company has effectively managed its supply chain to minimize disruptions [105][106].

Company Performance - LSI reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.20 per share, and down from $0.20 per share a year ago, representing an earnings surprise of -10% [1] - The company posted revenues of $147.73 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 14.99%, compared to year-ago revenues of $109.01 million [2] - Over the last four quarters, LSI has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - LSI shares have added about 1.9% since the beginning of the year, underperforming the S&P 500's gain of 3.5% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for stock performance [4] - The current consensus EPS estimate for the coming quarter is $0.21 on revenues of $132.16 million, and for the current fiscal year, it is $0.86 on revenues of $537.54 million [7] Industry Context - The Building Products - Lighting industry, to which LSI belongs, is currently in the top 12% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact LSI's stock performance [5][6]