LSI Industries Inc. (NASDAQ:LYTS) Q2 2021 Results Earnings Conference Call January 21, 2021 11:00 AM ET Company Participants Jim Galeese - Chief Financial Officer Jim Clark - President and Chief Executive Officer Conference Call Participants Andrew Scutt - ROTH Capital Partners Sameer Joshi - H.C. Wainwright Jed Dorsheimer - Canaccord Genuity Operator Greetings, and welcome to LSI Industries Fiscal Second Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. A question-and- ...

SECOND QUARTER FISCAL 2021 RESULTS CONFERENCE CALL PRESENTATION January 21, 2021 DISCLAIMER Forward-Looking Statements 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 performanc ...

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 SEPTEMBER 30, 2020 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________________ TO ________________. Commission File No. 0-13375 LSI Industries Inc. (Exact name of registrant as specified in its charter) Ohio 31-0888951 (State or ot ...

Financial Data and Key Metrics Changes - Sales for the fiscal first quarter were $70 million, improving sequentially from Q4 but below the prior year as projected [18] - Net income was $2 million compared to $4.5 million in the same quarter last year, with prior year results including a non-recurring pretax gain of $4.8 million from a facility sale [18] - Adjusted net income increased 29% to $2.1 million versus $1.6 million in the same period last year [18] - Adjusted EBITDA was $4.7 million, representing 6.8% of sales, which is 90 basis points above last year [19] - The company generated $7.2 million of free cash flow in Q1, exiting with a total cash balance of $9.5 million and $75 million availability on the revolving credit facility [19] Business Line Data and Key Metrics Changes - The Graphics Segment experienced a sharp rebound, with sales just 4% below prior year levels, primarily due to ongoing project schedule delays [20] - Graphics sales in Mexico increased 88% year-over-year in the first quarter, with strong new business development activity [20] - Lighting sales were impacted by a pandemic-driven slowdown, but quotation and order activity increased steadily throughout the first quarter, generating an increased backlog entering Q2 [21] - Adjusted gross margin for lighting improved by 290 basis points to 30.5%, driven by a focus on higher value market applications and new product introductions [21] Market Data and Key Metrics Changes - The company noted fluctuations in construction activity depending on the region due to COVID, but reported little to no project cancellations [7] - There has been an increase in requests for short lead time projects, with the company able to respond effectively due to U.S.-based manufacturing and supply chain diversification [7] - The company is focusing on key vertical markets including petroleum, automotive, grocery, and warehousing, with notable wins in outdoor projects for a major e-retailer [9] Company Strategy and Development Direction - The company aims to become a $500 million entity with double-digit EBITDA by 2025, focusing on expanding vertical market presence, enhancing customer engagement, building services business, and accelerating growth through acquisitions [15] - The company is committed to moving away from price-sensitive, highly commoditized business towards higher value market applications [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current environment, highlighting strong financial positioning with nearly $85 million of immediate liquidity available [16] - The management remains optimistic about future growth, both organically and through M&A, indicating that the best days are ahead [17] Other Important Information - The company declared a regular cash dividend of $0.05 per share, payable on November 17 to shareholders of record on November 9 [19] - The company introduced a new digital wallet solution for contactless payments at approximately 11,000 U.S. locations, which is expected to create further opportunities [14] Q&A Session Summary Question: Is the fiscal first quarter still expected to be the weakest for the year? - Management confirmed that Q1 was in line with expectations, noting challenges but no cancellations in project orders [25] Question: Is the new digital wallet product a one-time sale or does it have recurring revenue? - The digital wallet solution does not have a recurring revenue component, but management sees potential for future opportunities in contactless payment solutions [28] Question: What specific products are driving gross margin gains in the Lighting Segment? - Management indicated that higher-margin, project-related outdoor products are driving margin improvements, with a focus on optical control and customer value [34] Question: Can you provide details on the projects with the world's largest e-retailer? - Management confirmed opportunities in both retrofit and new facilities, emphasizing the importance of performance and being a good neighbor in project execution [36] Question: What is the timeline for completing the $100 million QSR program? - Management anticipates two years remaining in the schedule for the QSR program, with potential for follow-on business [41] Question: What characteristics are being sought in potential acquisition candidates? - Management is looking for opportunities that fit well with the LSI brand, focusing on adjacencies and broader solutions rather than traditional core lighting solutions [43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED JUNE 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission File No. 0-13375 LSI INDUSTRIES INC. (Exact name of Registrant as specified in its charter) Ohio (State or other jurisdiction of incorporation or organization) 10 ...

Fourth Quarter & Full-Year Fiscal 2020 Results August 20, 2020 DISCLAIMER Forward-Looking Statements and Non-GAAP Financial Measures This presentation includes "forward-looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "out ...

Financial Data and Key Metrics Changes - Net income for Q4 was $1.5 million, up from $900,000 in the previous year, with earnings per diluted share increasing to $0.06 from $0.03 [22] - EBITDA rose to $3.9 million compared to $2.2 million in the prior year, while sales declined by 22% due to pandemic impacts [22][24] - Adjusted net income for the full year was $3.2 million, compared to $1 million in fiscal 2019, with adjusted earnings per share increasing to $0.12 from $0.04 [26] Business Line Data and Key Metrics Changes - In the lighting segment, adjusted operating income increased by 5% to $2.9 million, with a gross margin improvement of 520 basis points to 28.6% despite a sales decline to $41 million [27] - The graphics segment saw adjusted operating income rise to $2.2 million from $800,000 last year, with a sales decline of 6% due to pandemic-related delays [28] Market Data and Key Metrics Changes - The company reported strong cash flow generation, with $11.5 million of free cash flow in Q4, resulting in a cash balance of $3.5 million at the end of fiscal 2020, compared to net debt of $39.5 million at the end of Q4 fiscal 2019 [24] - The company maintained a strong graphics backlog and did not expect changes to large, multi-year customer program commitments despite potential project installation delays [28] Company Strategy and Development Direction - The company is shifting focus from low-value products to higher-value solutions, with plans to introduce 20 new products in 2021 [15][19] - Three new vertical markets will be added to the company's focus over the next year, aiming to enhance competitive positioning [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty due to COVID-19 but expressed confidence in the company's ability to adapt and create opportunities [19] - The company is prepared to pivot quickly based on market conditions and has multiple scenarios planned for growth [32][33] Other Important Information - The company eliminated nearly $40 million in debt over the last 12 months and is currently debt-free [10] - The company declared a regular cash dividend of $0.05 per share payable on September 8 for shareholders of record on August 31 [26] Q&A Session Summary Question: Outlook for growth in fiscal '21 - Management indicated that it is difficult to forecast growth due to the current state of flux but is prepared to pivot based on market reactions [32][33] Question: New verticals and resources for growth - Management is validating potential new verticals but did not disclose specifics, emphasizing the importance of building a better company before expanding [34][35] Question: Sustainability of lower operating costs - Management believes structural cost reductions can be maintained, with potential for additional opportunities, but also plans to make investments that may affect costs [36] Question: Margin expansion in the graphics segment - Management sees opportunities for margin improvement in the graphics segment as projects mature and efficiencies are gained [41] Question: Gross margin targets by segment - Management has targets for gross margin improvement but did not disclose specific figures, focusing on continuous improvement and efficiency [44][45] Question: Future communication strategies - Management expressed interest in hosting virtual meetings to discuss strategic initiatives but has not advanced plans significantly [51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2020 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________________ TO ________________. Commission File No. 0-13375 LSI Industries Inc. (Exact name of registrant as specified in its charter) Ohio 31-0888951 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q Commission File No. 0-13375 LSI Industries Inc. (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's telephone number, including area code) Securities registered pursuant to Section 12(b) of ...

[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements) The company's Q1 net income rose to $4.5 million, driven by a facility sale gain and improved operations [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales grew to $88.7 million, with a $4.8 million restructuring gain boosting net income to $4.5 million Consolidated Statements of Operations Highlights (Q1 FY2020 vs Q1 FY2019) | Metric | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | **Net Sales** | $88,701 thousand | $84,957 thousand | | **Gross Profit** | $21,855 thousand | $21,261 thousand | | **Operating Income** | $6,839 thousand | $2,934 thousand | | **Net Income** | $4,475 thousand | $1,749 thousand | | **Diluted EPS** | $0.17 | $0.07 | - A significant **restructuring gain of $4.8 million** was recognized in the quarter, which was the primary driver for the substantial increase in operating income[12](index=12&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $203.5 million while long-term debt was significantly reduced to $23.2 million Balance Sheet Summary | Metric | September 30, 2019 | June 30, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $107,538 thousand | $110,980 thousand | | **Total Assets** | $203,521 thousand | $201,100 thousand | | **Total Current Liabilities** | $45,172 thousand | $39,875 thousand | | **Long-Term Debt** | $23,181 thousand | $39,541 thousand | | **Total Shareholders' Equity** | $123,158 thousand | $119,937 thousand | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved to $6.4 million, with asset sales funding significant debt repayment Cash Flow Summary (Three Months Ended Sep 30) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $6,359 thousand | $2,188 thousand | | **Net Cash from Investing Activities** | $11,983 thousand | ($648) thousand | | **Net Cash from Financing Activities** | ($17,729) thousand | ($556) thousand | | **Increase in Cash** | $613 thousand | $984 thousand | - The company received **$12.3 million from the sale of assets**, which was the primary driver of positive cash flow from investing activities[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail new accounting standards adoption and segment performance, highlighting a facility sale gain - The company adopted ASU 2016-02, "Leases," effective July 1, 2019, resulting in the recognition of **right-of-use assets of $10.4 million** and **lease liabilities of $10.8 million** on the balance sheet[41](index=41&type=chunk)[42](index=42&type=chunk) Segment Performance (Three Months Ended Sep 30, 2019) | Segment | Net Sales | Operating Income | | :--- | :--- | :--- | | **Lighting** | $63,191 thousand | $9,159 thousand | | **Graphics** | $25,510 thousand | $1,017 thousand | | **Corporate & Eliminations** | N/A | ($3,337) thousand | - In Q1 FY2020, the company sold its New Windsor, New York facility, resulting in **net proceeds of $12.3 million** and a **gain of $4.8 million**, which is classified under restructuring activities[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales grew 4.4%, with a facility sale gain masking flat adjusted operating income [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Lighting segment income surged from a facility sale, while Graphics income fell despite sales growth - Lighting Segment sales increased by **2.9% to $63.2 million**, with operating income surging to **$9.2 million from $3.9 million**, mainly due to the **$4.8 million gain** on the sale of the New Windsor facility[85](index=85&type=chunk)[88](index=88&type=chunk) - Graphics Segment sales grew **8.4% to $25.5 million**, but operating income decreased by **57.4% to $1.0 million**, impacted by unfavorable customer program mix and costs related to the transition from print to digital[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - On an adjusted basis, excluding the facility sale gain and other one-time costs, the company's **operating income was $2.3 million**, compared to $3.5 million in the prior-year period[84](index=84&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity improved with stronger operating cash flow and debt reduction, maintaining ample credit availability - Cash from operating activities **increased by $4.2 million YoY to $6.4 million**, driven by strategies to reduce accounts receivable DSO, increase inventory turns, and manage supplier payment terms[99](index=99&type=chunk) - The company has a **$75 million revolving line of credit** expiring in Q3 of fiscal 2022, with **$23.2 million borrowed** and **$51.8 million available** as of September 30, 2019[59](index=59&type=chunk)[102](index=102&type=chunk) - A regular quarterly cash dividend of **$0.05 per share** was declared in November 2019, continuing the indicated annual rate of $0.20 per share[107](index=107&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure remained materially unchanged from the previous fiscal year-end - There have been **no material changes** in the Company's exposure to market risk since June 30, 2019[109](index=109&type=chunk) [Controls and Procedures](index=28&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of the quarter-end - The Chief Executive Officer and Chief Financial Officer concluded that as of September 30, 2019, the company's **disclosure controls and procedures were effective**[111](index=111&type=chunk) - During the quarter, the company enacted additional controls related to the adoption of the **new lease accounting standard (ASU 2016-02)**[112](index=112&type=chunk) [PART II. Other Information](index=29&type=section&id=PART%20II.%20Other%20Information) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not conduct any unregistered sales of equity securities during the quarter - There were **no unregistered sales of equity securities** or use of proceeds to report for the quarter[114](index=114&type=chunk) [Other Information](index=29&type=section&id=ITEM%205.%20Other%20Information) Details key outcomes from the Annual Shareholders Meeting, including director elections and plan approvals - At the Annual Meeting on November 5, 2019, shareholders approved the **2019 Omnibus Award Plan**, which authorizes up to **2,650,000 new shares** for equity awards[114](index=114&type=chunk)[115](index=115&type=chunk) - Shareholders **elected all six director nominees**, ratified the appointment of Grant Thornton LLP as the independent auditor, and approved the company's executive compensation on an advisory basis[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[122](index=122&type=chunk) [Exhibits](index=30&type=section&id=ITEM%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including certifications and XBRL data - The exhibits filed with this report include incentive plan agreements, **CEO and CFO certifications** (Rule 13a-14(a) and Section 1350), and XBRL interactive data files[123](index=123&type=chunk)