LSI(LYTS)2025-04-24 10:20Financial 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].