LSI(LYTS) - 2026 Q2 - Quarterly Results

Financial Performance - LSI reported net sales of $147.0 million for the second quarter of fiscal 2026, consistent with the prior year period [3]. - The company achieved a net income of $6.3 million, or $0.20 per diluted share, with adjusted net income of $8.4 million, or $0.26 per adjusted diluted share [4]. - Adjusted EBITDA for the second quarter was $13.4 million, representing 9.1% of net sales, an increase from the prior-year period [4]. - Operating income as reported for the second quarter was $8,865, reflecting a 5% increase from $8,459 in the prior year [34]. - Adjusted EBITDA for the six months ended December 31, 2025, was $29,033, representing a 9% increase from $26,726 in 2024 [36]. - Net income as reported for the three months ended December 31, 2025, was $6,348, a 12% increase from $5,647 in 2024 [34]. - Earnings per share (diluted) as reported for the second quarter was $0.20, an 8% increase from $0.18 in the prior year [34]. Cash Flow and Debt Management - Free cash flow generated in the second quarter was $23.3 million, contributing to a reduction in total debt by $22.7 million [5]. - Free cash flow for the three months ended December 31, 2025, was $23,300, a significant increase of 164% compared to $8,825 in the same period of 2024 [36]. - The ratio of net debt to trailing twelve-month adjusted EBITDA improved to 0.4x as of December 31, 2025 [5]. - The net debt to adjusted EBITDA ratio improved to 0.4 as of December 31, 2025, down from 0.6 in 2024 [36]. Segment Performance - The Lighting segment experienced a 15% increase in sales, while the Display Solutions segment saw a 10% decrease compared to the prior year [27]. - Orders in the Lighting segment were 10% above the prior year, resulting in a book-to-bill ratio above 1.0x [16]. - Organic sales in the Lighting Segment for Q2 2026 were $66,673, a 15% increase from $58,210 in Q2 2025 [37]. - The company anticipates continued year-over-year revenue growth in both the Lighting and Display Solutions segments entering the second half of fiscal 2026 [16]. Dividend and Balance Sheet - The company declared a quarterly cash dividend of $0.05 per share, payable on February 10, 2026 [31]. - LSI's balance sheet showed current assets of $187.3 million and long-term debt of $27.9 million as of December 31, 2025 [29]. - Total net sales for the six months ended December 31, 2025, were $304,251, a 6% increase from $285,829 in the same period of 2024 [34]. - Total organic net sales for the six months ended December 31, 2025, were $289,004, a 1% increase from $285,829 in 2024 [37].