Financial Performance - LSI Industries' Q4FY25 sales increased by 20% year-over-year, reaching $155.1 million compared to $129.0 million in Q4FY24 [14, 22] - Organic sales grew by 11%, driven by improved demand across key vertical markets [12, 14, 21] - Adjusted EBITDA increased by 21% compared to the prior year, leading to a margin improvement of 250 basis points from Q3FY25 [15, 21] - Net income adjusted reached $10.6 million in Q4FY25, compared to $8.3 million in Q4FY24 [23] - For the full year FY25, total net sales reached $573.4 million, compared to $469.6 million in FY24 [22] Segment Performance - Display Solutions sales increased by 29%, with 10% organic sales growth, driven by Refueling / C-Store (+23%) and Grocery (+31%) [29] - Lighting revenues increased by 12% due to improved project order rates, with a 20% growth in backlog exiting the year [17] Balance Sheet and Cash Flow - The company generated free cash flow of $8.5 million in Q4FY25, with a trailing twelve-month (TTM) free cash flow of $34.7 million [50, 52] - Net debt stood at $45.1 million through Q4FY25, with a net leverage ratio of 0.8x [50, 55, 56]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Fiscal 2025 Fourth Quarter Highlights](index=1&type=section&id=Fiscal%202025%20Fourth%20Quarter%20Highlights) LSI Industries demonstrated strong performance in Q4 FY2025, achieving significant growth in sales and profitability, primarily driven by improved demand in the lighting and display solutions markets, alongside a substantial increase in adjusted EBITDA margin Fiscal 2025 Fourth Quarter Key Financial Data | Metric | Amount ($ million) | Change (YoY) | | :------------------- | :-------------- | :---------- | | Net Sales | 155.1 | +20% | | Net Income | 8.2 | - | | Adjusted Net Income | 10.6 | - | | Diluted EPS | 0.26 | - | | Adjusted Diluted EPS | 0.34 | - | | EBITDA | 15.5 | - | | Adjusted EBITDA | 17.0 | - | - Adjusted EBITDA margin improved by **250 basis points** from the prior fiscal quarter, reaching **11.0%**[4](index=4&type=chunk)[6](index=6&type=chunk) [Fiscal 2025 Full Year Highlights](index=1&type=section&id=Fiscal%202025%20Full%20Year%20Highlights) LSI achieved record sales in fiscal year 2025, driven by organic growth and strategic acquisitions, while also generating strong adjusted EBITDA and free cash flow, maintaining a healthy balance sheet Fiscal 2025 Full Year Key Financial Data | Metric | Amount ($ million) | Change (YoY) | | :------------------- | :-------------- | :---------- | | Net Sales | 573.4 | +22% | | Net Income | 24.4 | - | | Adjusted Net Income | 32.9 | - | | Diluted EPS | 0.79 | - | | Adjusted Diluted EPS | 1.07 | - | | EBITDA | 48.3 | - | | Adjusted EBITDA | 55.0 | - | | Free Cash Flow | 34.7 | - | - Net sales reached a record **$573.4 million**, representing a **22% year-over-year increase**[5](index=5&type=chunk)[6](index=6&type=chunk) - Net debt to trailing twelve-month adjusted EBITDA ratio was **0.8x**, indicating a healthy balance sheet[6](index=6&type=chunk)[8](index=8&type=chunk) [Management Commentary & Business Review](index=2&type=section&id=Management%20Commentary%20%26%20Business%20Review) [Overall Performance and Strategic Focus](index=2&type=section&id=Overall%20Performance%20and%20Strategic%20Focus) Management highlighted balanced performance across both lighting and display solutions segments in Q4, with improved sales and profitability, achieving record full-year sales through acquisitions and focusing on long-term value creation and operational discipline - Fourth-quarter order activity increased **11% year-over-year**, with a book-to-bill ratio of **1.0**[12](index=12&type=chunk) - Backlog at fiscal year-end grew **13% year-over-year**[12](index=12&type=chunk) - The company is in the early stages of a cross-selling initiative aimed at expanding its addressable market and deepening customer relationships[13](index=13&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) LSI's Display Solutions and Lighting segments both achieved significant growth in Q4, with Display Solutions benefiting from acquisitions and vertical market demand, and Lighting from improved project order rates [Display Solutions Segment](index=3&type=section&id=Display%20Solutions%20Segment) The Display Solutions segment achieved strong growth in Q4, driven by organic sales and the contribution from the Canada's Best acquisition, with notable performance in the gas/convenience store and grocery vertical markets, and EMI Industries also succeeding Display Solutions Segment Fiscal 2025 Fourth Quarter Sales Growth | Metric | Q4 FY2025 Sales ($ million) | Year-over-Year Growth | | :------------------- | :--------------------------------- | :------- | | Total Sales | 82.3 | +29% | | Organic Sales | - | +10% | | Gas/Convenience Store Vertical Sales | - | +23% | | Grocery Vertical Sales | - | +31% | - EMI Industries, as part of LSI, achieved record sales in its first year and improved its adjusted EBITDA margin by over **200 basis points**[15](index=15&type=chunk) - The grocery display business saw its Q4 operating margin improve by over **200 basis points sequentially** from Q3[16](index=16&type=chunk) [Lighting Segment](index=3&type=section&id=Lighting%20Segment) The Lighting segment achieved sales growth and improved profitability in Q4, primarily due to better project order rates, and despite anticipated increased tariff impacts in Q1 FY2026, the company plans to offset these through price increases and cost reduction measures Lighting Segment Fiscal 2025 Fourth Quarter Performance | Metric | Q4 FY2025 Sales Growth | Adjusted Operating Income Growth | Operating Margin Improvement (YoY) | | :------------------- | :----------------------- | :----------------- | :------------- | | Sales | +12% | - | - | | Adjusted Operating Income | - | +32% | - | | Operating Margin | - | - | +250 basis points | - Backlog at the end of fiscal 2025 increased **20% year-over-year**[18](index=18&type=chunk) - Increased tariff impacts are anticipated in Q1 FY2026, but the company plans to partially offset higher costs through implemented price increases and other cost reduction measures[19](index=19&type=chunk) [Acquisitions and Market Expansion](index=1&type=section&id=Acquisitions%20and%20Market%20Expansion) LSI continues to advance its vertical market strategy through the successful integration of EMI Industries (acquired April 2024) and the recent acquisition of Canada's Best Holdings (acquired March 2025), expanding its geographic reach and entering new market verticals including banking - Integrated EMI Industries (acquired April 2024) and Canada's Best Holdings (acquired March 2025) during fiscal 2025[5](index=5&type=chunk)[17](index=17&type=chunk) - The Canada's Best acquisition provided geographic expansion capabilities and established a presence in additional market verticals, including banking[17](index=17&type=chunk) [Outlook and Strategic Plan](index=2&type=section&id=Outlook%20and%20Strategic%20Plan) LSI is well-positioned for fiscal 2026, committed to achieving the goals outlined in its 2028 "Fast Forward Plan," focusing on advancing its vertical market strategy, expanding addressable markets, entering new verticals, enhancing operational excellence, and maintaining a disciplined capital allocation approach - LSI is well-positioned for fiscal 2026 to achieve the goals outlined in its 2028 "Fast Forward Plan"[19](index=19&type=chunk) - The company is committed to advancing its vertical market strategy, with a focus on expanding addressable markets, pursuing new vertical entries, and enhancing operational excellence[19](index=19&type=chunk) [Financial Results](index=5&type=section&id=Financial%20Results) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) LSI achieved growth in net sales and gross profit for both Q4 and the full fiscal year 2025, with an increase in Q4 operating income, though full-year net income slightly decreased due to various expenses Consolidated Statements of Operations (Q4 & Full Year FY2025 vs. Q4 & Full Year FY2024) | Metric | Three Months Ended June 30, 2025 ($ thousand) | Three Months Ended June 30, 2024 ($ thousand) | Twelve Months Ended June 30, 2025 ($ thousand) | Twelve Months Ended June 30, 2024 ($ thousand) | | :--------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Net Sales | 155,066 | 129,007 | 573,377 | 469,638 | | Cost of Sales | 114,298 | 95,173 | 431,016 | 335,962 | | Gross Profit | 40,433 | 33,834 | 141,785 | 133,168 | | Selling and Administrative Expenses | 25,648 | 21,257 | 94,000 | 87,281 | | Operating Income | 11,944 | 9,011 | 35,769 | 35,517 | | Income Before Income Taxes | 11,777 | 7,887 | 33,038 | 33,099 | | Net Income | 8,172 | 5,668 | 24,383 | 24,977 | | Diluted Earnings Per Share | 0.26 | 0.19 | 0.79 | 0.83 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, LSI maintained a healthy balance sheet with increased total assets and stockholders' equity, a strong current ratio, and manageable long-term debt Consolidated Balance Sheets (As of June 30, 2025 vs. June 30, 2024) | Metric | June 30, 2025 ($ thousand) | June 30, 2024 ($ thousand) | | :------------------- | :--------------------- | :--------------------- | | Current Assets | 194,166 | 162,499 | | Property, Plant and Equipment, Net | 31,154 | 32,959 | | Other Assets | 171,042 | 153,342 | | Total Assets | 396,362 | 348,800 | | Current Liabilities | 97,349 | 79,207 | | Long-Term Debt | 44,986 | 50,658 | | Other Long-Term Liabilities | 23,305 | 14,580 | | Stockholders' Equity | 230,722 | 204,355 | | Total Liabilities and Stockholders' Equity | 396,362 | 348,800 | - As of June 30, 2025, the current ratio was **2.0 to 1**[29](index=29&type=chunk) [Cash Flow and Capital Allocation](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) LSI generated robust free cash flow in both Q4 and the full fiscal year 2025, prioritizing capital allocation for organic expansion, acquisition-related investments, and debt reduction, resulting in a healthy net debt to adjusted EBITDA ratio Free Cash Flow (Q4 & Full Year FY2025 vs. Q4 & Full Year FY2024) | Metric | Three Months Ended June 30, 2025 ($ thousand) | Three Months Ended June 30, 2024 ($ thousand) | Twelve Months Ended June 30, 2025 ($ thousand) | Twelve Months Ended June 30, 2024 ($ thousand) | | :------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Cash Flow from Operating Activities | 9,499 | 11,096 | 38,118 | 43,393 | | Capital Expenditures | (950) | (762) | (3,465) | (5,388) | | Free Cash Flow | 8,549 | 10,334 | 34,653 | 38,005 | Net Debt to Adjusted EBITDA Ratio (As of June 30, 2025 vs. June 30, 2024) | Metric | June 30, 2025 ($ thousand) | June 30, 2024 ($ thousand) | | :--------------------------- | :--------------------- | :--------------------- | | Total Debt | 48,557 | 54,229 | | Less: Cash | (3,457) | (4,110) | | Net Debt | 45,100 | 50,119 | | Adjusted EBITDA - Trailing Twelve Months | 55,067 | 51,436 | | Net Debt to Adjusted EBITDA Ratio | 0.82 | 0.97 | - In fiscal 2025, LSI prioritized capital allocation towards organic expansion, acquisition-related investments, and debt reduction[8](index=8&type=chunk) [Cash Dividend Declaration](index=2&type=section&id=Cash%20Dividend%20Declaration) The Board declared a regular quarterly cash dividend of $0.05 per share for Q4 FY2025, representing an indicative annual dividend rate of $0.20 per share, with future dividends subject to Board discretion based on earnings, cash flow needs, financial condition, and strategic opportunities - The Board of Directors declared a regular quarterly cash dividend of **$0.05 per share** for Q4 FY2025[9](index=9&type=chunk)[31](index=31&type=chunk) - The indicative annual cash dividend rate is **$0.20 per share**[31](index=31&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%26%20Reconciliations) [Explanation of Non-GAAP Measures](index=7&type=section&id=Explanation%20of%20Non-GAAP%20Measures) LSI utilizes non-GAAP financial measures such as adjusted operating income, net income, EPS, EBITDA, adjusted EBITDA, net debt to adjusted EBITDA ratio, free cash flow, and organic sales growth to provide a clearer view of ongoing operational performance by excluding certain non-recurring or non-operating items - Non-GAAP measures exclude items such as long-term performance-based compensation expense, acquisition intangible asset amortization expense, business growth opportunity expenses, acquisition costs, lease expense for acquired leases, and restructuring and severance costs[32](index=32&type=chunk) - These metrics are used by management and parties interested in the company to evaluate business operating performance[32](index=32&type=chunk) [Reconciliation of Operating Income, Net Income, and EPS](index=8&type=section&id=Reconciliation%20of%20Operating%20Income%2C%20Net%20Income%2C%20and%20EPS) This section details the reconciliation of GAAP operating income, net income, and diluted EPS to their adjusted non-GAAP counterparts for Q4 and the full fiscal years 2025 and 2024, highlighting the impact of various adjustments Reconciliation of Operating Income, Net Income, and EPS (Q4 & Full Year FY2025 vs. Q4 & Full Year FY2024) | Metric | Three Months Ended June 30, 2025 ($ thousand) | Three Months Ended June 30, 2024 ($ thousand) | Twelve Months Ended June 30, 2025 ($ thousand) | Twelve Months Ended June 30, 2024 ($ thousand) | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Reported Operating Income | 11,944 | 9,011 | 35,769 | 35,517 | | Adjusted Operating Income | 15,120 | 12,576 | 48,361 | 46,395 | | Reported Net Income | 8,172 | 5,668 | 24,383 | 24,977 | | Adjusted Net Income | 10,577 | 8,304 | 32,883 | 32,294 | | Reported Diluted EPS | 0.26 | 0.19 | 0.79 | 0.83 | | Adjusted Diluted EPS | 0.34 | 0.28 | 1.07 | 1.07 | - Beginning in Q1 FY2025, LSI includes acquisition intangible asset amortization expense as an add-back for non-GAAP reconciliation[34](index=34&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA, Free Cash Flow, and Net Debt](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%2C%20Free%20Cash%20Flow%2C%20and%20Net%20Debt) This section provides detailed reconciliations of net income to EBITDA and adjusted EBITDA for Q4 and the full fiscal years 2025 and 2024, along with calculations for free cash flow and the net debt to adjusted EBITDA ratio Reconciliation of Net Income to Adjusted EBITDA (Q4 & Full Year FY2025 vs. Q4 & Full Year FY2024) | Metric | Three Months Ended June 30, 2025 ($ thousand) | Three Months Ended June 30, 2024 ($ thousand) | Twelve Months Ended June 30, 2025 ($ thousand) | Twelve Months Ended June 30, 2024 ($ thousand) | | :--------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Reported Net Income | 8,172 | 5,668 | 24,383 | 24,977 | | Reported Operating Income | 11,944 | 9,011 | 35,769 | 35,517 | | EBITDA | 15,499 | 11,867 | 48,344 | 45,516 | | Adjusted EBITDA | 17,087 | 14,044 | 55,067 | 51,436 | | Adjusted EBITDA as a Percentage of Sales | 11.0% | 10.9% | 9.6% | 11.0% | [Organic vs. Inorganic Sales Growth](index=11&type=section&id=Organic%20vs.%20Inorganic%20Sales%20Growth) This section disaggregates net sales for Q4 and the full fiscal year 2025 into organic and inorganic components, illustrating comparable sales and the contribution of recent acquisitions (EMI and Canada's Best Holdings) to overall growth Organic vs. Inorganic Sales (Q4 FY2025 vs. Q4 FY2024) | Metric | Q4 FY2025 ($ thousand) | Q4 FY2024 ($ thousand) | Percentage Change | | :------------------- | :------------------------ | :------------------------ | :--------- | | Lighting Segment | 72,743 | 65,095 | 12% | | Display Solutions Segment | 82,323 | 63,912 | 29% | | Total Net Sales | 155,066 | 129,007 | 20% | | Less: EMI | 22,819 | 18,074 | - | | Less: Canada's Best Holdings | 7,180 | - | - | | Total Organic Net Sales | 125,067 | 110,933 | 11% | Organic vs. Inorganic Sales (YTD FY2025 vs. YTD FY2024) | Metric | YTD FY2025 ($ thousand) | YTD FY2024 ($ thousand) | Percentage Change | | :------------------- | :-------------------- | :-------------------- | :--------- | | Lighting Segment | 248,356 | 262,413 | -5% | | Display Solutions Segment | 325,021 | 207,225 | 57% | | Total Net Sales | 573,377 | 469,638 | 22% | | Less: EMI | 94,830 | 18,073 | - | | Less: Canada's Best Holdings | 8,549 | - | - | | Total Organic Net Sales | 469,998 | 451,565 | 4% | - Organic net sales for Q4 FY2025 increased **11% year-over-year** to **$125.1 million**[37](index=37&type=chunk) [Eight-Quarter Adjusted Net Income Reconciliation](index=12&type=section&id=Eight-Quarter%20Adjusted%20Net%20Income%20Reconciliation) This section provides a comprehensive reconciliation of net income to adjusted net income for eight consecutive quarters from Q1 FY2024 to Q4 FY2025, detailing non-GAAP adjustments and their impact on quarterly EPS Eight-Quarter Adjusted Net Income Reconciliation (Q1 FY2024 to Q4 FY2025) | Quarter | Reported Net Income ($ thousand) | Reported Diluted EPS | Adjusted Net Income ($ thousand) | Adjusted Diluted EPS | | :------- | :------------------ | :--------------- | :-------------------- | :--------------- | | Q1 FY2024 | 8,028 | 0.27 | 9,610 | 0.32 | | Q2 FY2024 | 5,906 | 0.20 | 7,249 | 0.24 | | Q3 FY2024 | 5,375 | 0.18 | 7,131 | 0.24 | | Q4 FY2024 | 5,668 | 0.19 | 8,304 | 0.28 | | Q1 FY2025 | 6,682 | 0.22 | 7,981 | 0.26 | | Q2 FY2025 | 5,647 | 0.18 | 7,996 | 0.26 | | Q3 FY2025 | 3,883 | 0.13 | 6,331 | 0.20 | | Q4 FY2025 | 8,172 | 0.26 | 10,577 | 0.34 | [Company Information](index=4&type=section&id=Company%20Information) [About LSI Industries](index=4&type=section&id=About%20LSI%20Industries) LSI Industries is a US-based manufacturer of commercial lighting, graphics, and display solutions, providing American-made products and comprehensive project management services for strategic vertical markets - LSI is headquartered in Cincinnati and listed on the Nasdaq Stock Market under the ticker symbol **LYTS**[22](index=22&type=chunk) - The company manufactures advanced lighting, graphics, and display solutions, including non-residential indoor and outdoor lighting, printed graphics, digital graphics, refrigerated, and custom displays[22](index=22&type=chunk) - The company employs approximately **2,000 people** across **19 manufacturing facilities** in the United States and Canada[22](index=22&type=chunk) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Details for the Q4 FY2025 conference call are provided, including webcast and dial-in access, along with replay information - The conference call was held on **August 21, 2025, at 11:00 AM ET**, to review the company's financial results and conduct a Q&A session[20](index=20&type=chunk) - A webcast and presentation materials for the conference call are available in the Investor Relations section of the LSI Industries website[21](index=21&type=chunk) [Forward-Looking Statements & Contacts](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Contacts) A disclaimer regarding forward-looking statements and contact information for investor and media inquiries are provided - For uncertainties that could cause actual results to differ materially from forward-looking statements, refer to the risk factors included in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q[23](index=23&type=chunk) - Contact information for investor and media contacts, **Bill Seymour** and **Noel Ryan**, is provided[24](index=24&type=chunk)

Financial Performance - LSI Industries Inc's Q4 FY15 net sales increased by 3% to $76073 thousand from $73858 thousand in Q4 FY14 [5] - The company's Q4 FY15 operating income as reported was $2193 thousand, compared to a loss of $946 thousand in Q4 FY14 [5] - LSI Industries Inc's full year FY15 net sales increased by 3% to $307857 thousand from $299463 thousand in FY14 [8] - The company's full year FY15 operating income as reported increased by 225% to $7533 thousand from $2318 thousand in FY14 [8] - Full year FY15 net income as reported increased by 454% to $5151 thousand from $930 thousand in FY14 [8] Segment Performance - Lighting segment net sales for Q4 FY15 were $55538 thousand, compared to $55011 thousand in Q4 FY14 [10] - Graphics segment net sales for Q4 FY15 were $15239 thousand, compared to $10603 thousand in Q4 FY14 [10] - Technology segment net sales for Q4 FY15 were $5296 thousand, compared to $8031 thousand in Q4 FY14 [10] - Lighting segment operating income for Q4 FY15 was $3545 thousand, compared to $1846 thousand in Q4 FY14 [13] - Graphics segment operating income for Q4 FY15 was $358 thousand, compared to a loss of $936 thousand in Q4 FY14 [13] Balance Sheet and Dividends - Cash dividend of $003 per share is payable on September 8th [17]

Financial Performance - The company's sales performance has stabilized, showing evidence of progress[6] - Free cash flow provides flexibility for debt reduction and business reinvestment[12] - Working capital saw a 15% reduction from its peak in the second quarter of fiscal year 2019[14] - The company's free cash flow growth supports a reduction in the net debt ratio to 2.7x[16] - Adjusted diluted earnings per share for Q4 2019 was $(0.08) compared to $0.00 in Q4 2018[19] - Adjusted EBITDA for Q4 2019 was $3.262 million, compared to $3.627 million in Q4 2018[21] Segment Performance - Lighting segment customer orders increased by a high single-digit percentage year-over-year in F4Q19[8] - The Graphics segment experienced strong sales and order levels, particularly in the petroleum vertical[10] - Lighting segment adjusted EBITDA margin was 7.9% in Q4 2019, compared to 6.1% in Q4 2018[22] - Graphics segment adjusted EBITDA margin was 4.8% in Q4 2019, compared to 8.5% in Q4 2018[22]

Fourth Quarter & Fiscal year 2021 Results Conference Call August 19, 2021 (发 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 this context, forward-looking statements often address our expected future business, financial performance, financial condition and resu ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's Q3 FY2025 financial statements show a 22.5% sales increase driven by Display Solutions, though net and operating income declined [Condensed Consolidated Statements of Operations](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q3 FY2025 net sales rose to $132.5 million, but operating income decreased to $6.2 million and net income fell to $3.9 million Consolidated Statements of Operations Highlights (In thousands, except per share data) | Metric | Q3 2025 | Q3 2024 | YoY Change | Nine Months 2025 | Nine Months 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $132,481 | $108,186 | +22.5% | $418,310 | $340,632 | +22.8% | | **Gross Profit** | $32,843 | $31,210 | +5.2% | $101,351 | $99,335 | +2.0% | | **Operating Income** | $6,235 | $7,660 | -18.6% | $23,825 | $26,507 | -10.1% | | **Net Income** | $3,883 | $5,375 | -27.8% | $16,212 | $19,309 | -16.0% | | **Diluted EPS** | $0.13 | $0.18 | -27.8% | $0.53 | $0.64 | -17.2% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets increased to $384.6 million, driven by acquisitions, with liabilities and equity also rising Balance Sheet Summary (In thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $185,511 | $162,499 | | **Goodwill** | $63,204 | $57,397 | | **Other intangible assets, net** | $79,607 | $73,916 | | **Total Assets** | **$384,565** | **$348,800** | | **Total Current Liabilities** | $89,192 | $79,207 | | **Long-term debt** | $51,789 | $50,658 | | **Total Liabilities** | **$162,852** | **$144,445** | | **Total Shareholders' Equity** | **$221,713** | **$204,355** | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Nine-month operating cash flow was $28.6 million, with investing activities using $25.3 million primarily for the CBH acquisition Cash Flow Summary (Nine Months Ended March 31, In thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash flows provided by operating activities** | $28,619 | $32,297 | | **Net cash flows used in investing activities** | ($25,321) | ($4,594) | | **Net cash flows used in financing activities** | ($3,212) | ($22,401) | | **Increase in cash and cash equivalents** | $191 | $5,347 | | **Cash and cash equivalents at end of period** | $4,301 | $7,175 | - The acquisition of Canada's Best Holdings (CBH) for **$22.8 million** (net of cash acquired) was the primary driver of cash used in investing activities[28](index=28&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Notes detail accounting policies, recent acquisitions like EMI and CBH, segment performance, and the $0.05 quarterly dividend - On April 18, 2024, the company acquired EMI Industries, LLC for **$50.0 million** to expand its presence in the Grocery, C-Store, and QSR/Restaurant markets[43](index=43&type=chunk) - On March 11, 2025, the company acquired Canada's Best Holdings (CBH) for a total consideration of **$27.4 million**, including a potential earnout, to expand its retail fixture and store design solutions[50](index=50&type=chunk) - The company paid a quarterly cash dividend of **$0.05 per share**, with an indicated annual rate of **$0.20 per share**[77](index=77&type=chunk) [Management's Discussion and Analysis (MD&A)](index=30&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes Q3 sales growth to Display Solutions' 70% increase, offsetting Lighting's decline, despite a 19% drop in operating income - Q3 net sales increased **22% YoY**, driven by a **70% increase** in the Display Solutions Segment, which included **$23.8 million** from the EMI and CBH acquisitions and **15% organic growth**[94](index=94&type=chunk) - The Lighting Segment's sales declined **9%** in Q3 due to the comparison against several large lighting projects in the prior year that did not repeat[94](index=94&type=chunk) - Q3 operating income decreased **19%** to **$6.2 million**, and adjusted operating income was **$9.7 million**[96](index=96&type=chunk) - The company generated **$27.1 million** in cash from operations in the first nine months of fiscal 2025 and had **$32.2 million** available for borrowing under its credit facility as of March 31, 2025[132](index=132&type=chunk)[133](index=133&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q3 FY2025 Display Solutions sales surged 70% with 15% organic growth, while Lighting sales fell 9%, impacting consolidated net income Display Solutions Segment Performance (Q3 YoY) | Metric | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $73,514K | $43,304K | +70% | | **Gross Profit** | $12,457K | $9,645K | +29% | | **Operating Income** | $4,510K | $4,064K | +11% | - Display Solutions' Q3 organic growth was **15%**, with acquisitions of EMI and CBH contributing an additional **$23.8 million** in sales[103](index=103&type=chunk) Lighting Segment Performance (Q3 YoY) | Metric | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $58,967K | $64,882K | -9% | | **Gross Profit** | $20,384K | $21,564K | -6% | | **Operating Income** | $7,154K | $7,268K | -2% | - Lighting Segment's gross margin improved from **33% to 35%** in Q3, driven by a higher mix of value applications, stable pricing, and cost management, despite lower sales[108](index=108&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital increased to $96.3 million, with $27.1 million in operating cash flow and $32.2 million available on the credit line - Working capital was **$96.3 million** at March 31, 2025, up from **$83.3 million** at June 30, 2024, with the current ratio remaining stable at **2.1 to 1**[129](index=129&type=chunk) - The company has a **$75 million** secured revolving line of credit expiring in Q1 of fiscal 2027, with **$32.2 million** available as of March 31, 2025[132](index=132&type=chunk) - Cash from operating activities for the nine months ended March 31, 2025, was **$27.1 million**, compared to **$32.3 million** in the prior year period[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in the company's exposure to market risk have occurred since June 30, 2024 - There have been no material changes in the company's exposure to market risk since June 30, 2024[140](index=140&type=chunk) [Controls and Procedures](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[142](index=142&type=chunk) - No changes in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[143](index=143&type=chunk) PART II. OTHER INFORMATION [Other Information](index=42&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section references prior risk factors and adds a new one concerning potential adverse impacts from changes in trade policies - A new risk factor has been added regarding potential adverse impacts from changes in United States and international trade policies, including tariffs, which could disrupt supply chains and increase costs[146](index=146&type=chunk)[147](index=147&type=chunk) [Exhibits](index=42&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with Form 10-Q, including officer certifications and Inline XBRL data files - The report includes required certifications from the Principal Executive Officer and Principal Financial Officer, as well as Inline XBRL filings[148](index=148&type=chunk)

Financial Data and Key Metrics Changes - The company achieved sales growth of 22% year-over-year, with net sales for the quarter at $132.5 million [9][19] - Adjusted EBITDA for the quarter was $11.3 million, with adjusted earnings per share of $0.20 [19][21] - Cash flow generated in the third quarter was $4.7 million, increasing the trailing twelve months cash flow to approximately $35 million [21] - The balance sheet remains strong with net debt of $51 million, resulting in a net debt to trailing twelve months adjusted EBITDA ratio of 1 times [21] Business Line Data and Key Metrics Changes - Display Solutions segment saw a 70% increase in sales compared to the prior year, with 15% organic growth [10][22] - Lighting sales lagged year-over-year, but operating margins improved by 110 basis points [11][26] - The Lighting segment's order levels increased, resulting in a book-to-bill ratio of 1.1 times [27] Market Data and Key Metrics Changes - The Refueling/C-store vertical experienced a 60% increase in sales, while Grocery vertical sales grew by 20% [22] - The company exited the quarter with a backlog 15% above the previous year [22] Company Strategy and Development Direction - The company is focused on onshoring and reshoring manufacturing, currently at 70% domestic sourcing [13] - Management believes that the ongoing trade and tariff activities may provide a competitive advantage over competitors reliant on foreign sourcing [14][16] - The company is committed to integrating acquisitions effectively and pursuing growth opportunities while balancing customer and shareholder needs [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in regaining margins as customer demand stabilizes [8][16] - The company anticipates continued favorable order rates, although performance may be choppy due to the lengthened quote to order conversion cycle [28] - Management remains optimistic about the upcoming quarter and the overall market outlook despite external challenges [85] Other Important Information - The company completed the acquisition of Canada's Best Store Fixtures for $24 million, with a potential $7 million earn-out [21] - The company continues to release over 30 new products annually, indicating strong product development velocity [80] Q&A Session Summary Question: Can you provide more details on fluctuating demand levels and customer schedules? - Management indicated that fluctuating demand is primarily around the Grocery vertical, with improvements in scheduling stability noted since early April [33][34] Question: What is the margin impact from production inefficiencies? - Management estimated a margin impact of 200 to 250 basis points due to scheduling disruptions and the EMI mix, with expectations for recovery as operations stabilize [38][40] Question: How is the company managing the tariff environment? - The company has been working on alternative sourcing and pricing strategies to mitigate tariff impacts, ensuring that costs are captured appropriately [44][46] Question: Are there opportunities for cross-selling between Display and Lighting segments? - Management confirmed that there are significant cross-selling opportunities between the two segments, particularly in vertical markets like Petroleum [52][54] Question: What is the company's acquisition strategy moving forward? - The company remains active in M&A, focusing on both incremental and transformational acquisitions to enhance growth and market presence [72][76]

Financial Performance - Total net sales increased by 22% from $1082 million in Q3FY24 to $1325 million in Q3FY25[13, 21] - Display Solutions segment sales increased by 70% from $433 million in Q3FY24 to $735 million in Q3FY25, including 15% organic sales growth[26, 27] - Lighting segment sales decreased from $649 million in Q3FY24 to $590 million in Q3FY25[35] - Adjusted EBITDA increased modestly from $112 million in Q3FY24 to $113 million in Q3FY25[14, 23] - Lighting segment adjusted gross margin increased from 332% in Q3FY24 to 346% in Q3FY25[34, 37] Business Highlights - Display Solutions experienced significant growth in Refueling/C-Store (over 60%) and Grocery (over 20%) verticals[13, 26] - Lighting experienced an 18% backlog growth due to increased project order activity, with a book-to-bill ratio of 113x[16, 20] - The company acquired Canada's Best Holding to expand geographic reach and vertical market focus[18, 26] Balance Sheet and Cash Flow - Free cash flow was $47 million in Q3FY25, with a trailing twelve-month (TTM) free cash flow of $35 million[42, 44] - Net debt was $511 million in Q3FY25, with a net leverage ratio of 10x[42, 48]

Financial Data and Key Metrics Changes - The company achieved net sales of $132.5 million for Q3 2025, representing a 22% year-over-year growth [8][15] - Adjusted EBITDA for the quarter was $11.3 million, with adjusted earnings per share of $0.20 [15] - Cash flow generated in the third quarter was $4.7 million, increasing the trailing twelve months cash flow to approximately $35 million [16] Business Line Data and Key Metrics Changes - The Display Solutions segment saw a 70% increase in sales year-over-year, with 15% organic growth [8][17] - Lighting sales lagged year-over-year but experienced a 110 basis point improvement in operating margins [9][19] - The Lighting segment's backlog increased by 18% compared to the previous year, indicating a strong rebound in large project order activity [10][19] Market Data and Key Metrics Changes - The Refueling C store vertical experienced a 60% increase in sales year-over-year, driven by ongoing customer graphics programs [17] - Sales of refrigerated and non-refrigerated display case products to the grocery vertical grew by 20% despite order fulfillment challenges [17] Company Strategy and Development Direction - The company is focused on onshoring and reshoring manufacturing, currently standing at 70% domestic sourcing and 30% foreign sourcing [11] - The acquisition of Canada's Best Store Fixtures is part of the strategy to enhance capabilities and market presence [7][16] - The company aims to leverage its unique integrated solutions approach to differentiate itself from competitors [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in regaining margins as customer demand stabilizes and operational efficiencies improve [7][10] - The company anticipates continued favorable order rates, although performance may remain choppy due to the lengthening quote-to-order conversion cycle [19][20] - Management remains optimistic about the market outlook, citing a strong backlog and recovery in lighting orders [46][67] Other Important Information - The company is actively pursuing both incremental and transformational M&A opportunities to enhance growth [55][56] - The product development team continues to release over 30 new products annually, indicating a strong commitment to innovation [58][60] Q&A Session Summary Question: Can you provide more details on fluctuating demand levels and customer schedules? - Management noted that fluctuating demand is primarily around grocery, with improvements in stability observed since early April [24][25] Question: What is the margin impact from production inefficiencies? - Management estimated a margin impact of 200 to 250 basis points due to scheduling disruptions, primarily in the grocery vertical [29][31] Question: How is the company managing the tariff environment? - Management indicated that they have established alternative sourcing and are monitoring pricing impacts due to tariffs, ensuring costs are captured appropriately [33][35] Question: Are there opportunities for cross-selling between display and lighting segments? - Management confirmed that there are significant cross-selling opportunities between display solutions and lighting customers, particularly in vertical markets [40][41] Question: What is the company's acquisition strategy moving forward? - Management stated that they remain active in M&A, focusing on both incremental and transformational opportunities to enhance business capabilities [54][56]

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]