LSI(LYTS)2025-01-23 12:48Financial Performance - LSI reported net sales of $147.7 million in Q2 2025, a 36% increase year-over-year, with organic net sales growing by 14%[4] - Net income for the second quarter was $5.6 million, or $0.18 per diluted share, while adjusted net income was $8.0 million, or $0.26 per diluted share[5] - Adjusted EBITDA reached $13.3 million, representing 9.0% of net sales, an increase of over 20% compared to the previous year[5] - Free cash flow generated in the second quarter was $8.8 million, with a trailing twelve-month free cash flow of nearly $41.4 million[6] - The company reported a net income of $5,647,000 for the three months ended December 31, 2024, a decrease of 4% from $5,906,000 in the same period of 2023[34] - Earnings per share (diluted) as reported for the three months ended December 31, 2024, was $0.18, down 7% from $0.20 in the same period of 2023[34] - FY 2024 Q1 reported net income was $8,028 million with an EPS of $0.27, while Q2 reported net income was $5,906 million with an EPS of $0.20[37] - FY 2024 Q3 reported net income was $5,375 million with an EPS of $0.18, and Q4 reported net income was $5,668 million with an EPS of $0.19[37] - FY 2025 Q1 reported net income was $6,682 million with an EPS of $0.22, while Q2 reported net income was $5,647 million with an EPS of $0.18[37] Cash Flow and Debt Management - Free cash flow for the three months ended December 31, 2024, was $8,825,000, a 21% increase from $7,320,000 in the same period of 2023[35] - The ratio of net debt to trailing twelve-month adjusted EBITDA improved to 0.6x, down from 1.3x at the time of the EMI acquisition[6] - The net debt to adjusted EBITDA ratio improved to 0.6 as of December 31, 2024, down from 1.0 in June 2024[35] Segment Performance - Display Solutions segment achieved organic sales growth of 50% in Q2, with sales to refueling/c-store customers increasing by over 60% year-over-year[11] - The grocery vertical saw sales growth exceeding 50% due to increased demand for refrigerated and non-refrigerated display cases[12] - The company experienced a 50% increase in comparable Display Solutions sales, rising from $44,209,000 to $66,133,000[35] - Lighting segment sales decreased by 10% year-over-year, attributed to a challenging comparison with the previous year’s large projects[16] Product Development and Innovation - LSI plans to launch over 40 new products in fiscal 2025, continuing its focus on innovation and meeting customer requirements[18] Dividends - The company declared a quarterly cash dividend of $0.05 per share, payable on February 11, 2025[8] - The Board of Directors declared a quarterly cash dividend of $0.05 per share, with an annual cash dividend rate of $0.20 per share[31] Adjusted Income and Expenses - Adjusted net income for FY 2024 Q1 was $9,610 million, representing an adjusted net income percentage of 7.8%, and Q2 adjusted net income was $7,249 million with a percentage of 6.7%[37] - Adjusted net income for FY 2024 Q3 was $7,131 million, with an adjusted net income percentage of 6.6%, and Q4 adjusted net income was $8,304 million with a percentage of 6.4%[37] - Adjusted net income for FY 2025 Q1 was $7,981 million, representing an adjusted net income percentage of 5.8%, and Q2 adjusted net income was $7,996 million with a percentage of 5.4%[37] Amortization and Compensation - Amortization expense of acquired intangible assets for FY 2024 Q1 was $870 million, and for Q2 it was $885 million[37] - Long-term performance-based compensation for FY 2024 Q1 was $974 million, and for Q2 it was $625 million[37] - Severance costs for FY 2024 Q1 were $256 million, while Q2 saw a reduction to $34 million[37] - The tax rate difference between reported and adjusted net income for FY 2024 Q1 was $(531) million, and for Q2 it was $(201) million[37]