LSI(LYTS)2025-02-07 21:01Financial 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]