LSI(LYTS) - 2026 Q1 - Quarterly Results

Financial Performance - LSI reported fiscal 2026 first quarter net sales of $157.3 million, an increase of 14% year-over-year, with organic growth of 7%[3][6][28] - Net income for the first quarter was $7.3 million, or $0.23 per diluted share, compared to $6.7 million, or $0.22 per diluted share in the prior year, representing a 9% increase in net income[3][6][28] - Adjusted EBITDA for the first quarter was $15.6 million, reflecting a 17% increase year-over-year, with an adjusted EBITDA margin of 10.0%[4][6] - Net sales for Q3 2025 reached $157,249,000, a 14% increase from $138,095,000 in Q3 2024[33] - Adjusted operating income for Q3 2025 was $14,025,000, reflecting an 18% growth compared to $11,898,000 in Q3 2024[33] - Adjusted net income for Q3 2025 was $9,731,000, a 22% increase from $7,981,000 in Q3 2024[34] - Diluted earnings per share (EPS) as adjusted rose to $0.31 in Q3 2025, up 19% from $0.26 in Q3 2024[34] - EBITDA for Q3 2025 was $14,172,000, representing a 17% increase from $12,071,000 in Q3 2024[36] - Organic net sales for Q3 2025 were $148,330,000, a 7% increase from $138,095,000 in Q3 2024[37] Segment Performance - The Lighting segment achieved 18% year-over-year sales growth, while the Display Solutions segment saw an 11% increase in sales[15][28] - The Lighting Segment reported sales of $69,053,000, an 18% increase from $58,437,000 in Q1 2025[37] - Total Display Solutions sales increased by 11% to $88,196,000 in Q3 2025, compared to $79,658,000 in Q3 2024[37] Cash Flow and Debt Management - The company expects to return to positive cash flow during the fiscal second quarter after increased working capital investments impacted free cash generation in the first quarter[5] - Free cash flow for Q3 2025 was negative $292,000, a significant decline from positive $11,087,000 in Q3 2024, indicating a 103% decrease[36] - LSI's ratio of net debt to trailing twelve-month adjusted EBITDA was 0.8x, indicating a strong balance sheet[5][6] - The net debt to adjusted EBITDA ratio remained stable at 0.8 for both September 30, 2025, and 2024[36] Strategic Initiatives - LSI amended and extended its credit facility, increasing availability from $75 million to $125 million, ensuring ample liquidity for strategic growth initiatives[17] - LSI's acquisition of Canada's Best Holdings in March 2025 contributed to improved demand and sales growth across its segments[8][10] - The company continues to focus on high-value verticals, with ongoing development activity in the refueling/c-store and grocery verticals, indicating a positive long-term outlook[11][12][18] Dividend Information - The company declared a quarterly cash dividend of $0.05 per share, payable on November 25, 2025, with an indicated annual cash dividend rate of $0.20 per share[7][30]