LSI(US:LYTS)2025-08-21 16:00Financial Data and Key Metrics Changes - The company reported total sales of just over $573 million for the fiscal year, representing a 22% increase over the prior year [5][22] - Adjusted EBITDA for the full year was $55 million, nearly 10% of sales, with a net debt leverage ratio of 0.8 times [6][22] - Fourth quarter sales increased 20% to $155 million, with adjusted EBITDA rising to $17 million or 11% of sales [15][22] - Organic growth for the fourth quarter, excluding acquisitions, was 11% [15] Business Line Data and Key Metrics Changes - The Lighting segment saw a 12% increase in sales during the fourth quarter, while the Display Solutions segment experienced a 28% increase, with organic growth of 10% [16][20] - The Grocery segment reported a 31% increase in sales for the fourth quarter, driven by resumed investments in store renovations [21] - The company launched over 25 new products in the lighting segment, with the velocity lighting product being particularly successful [7] Market Data and Key Metrics Changes - Total orders increased by 11% year-over-year, with a backlog 13% above the prior year [17] - The Lighting backlog was approximately 20% higher than last year [19] - The company noted marked improvements in demand levels across various markets, including warehousing, automotive, and outdoor applications [17] Company Strategy and Development Direction - The company is focused on advancing its Fast Forward strategic plan, emphasizing internal talent development and optimizing business processes [12] - Cross-selling initiatives are a core element of the strategy, aiming to deepen customer relationships and drive sustainable growth [13] - The company aims to offer a broader set of integrated solutions to meet evolving customer needs [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on the momentum from 2025 as it heads into 2026 [14] - The operating environment is described as stable, with expectations for continued growth in the grocery segment despite some remaining market turmoil [30] - Management highlighted the importance of maintaining a high say-do ratio and accountability within the company culture as key drivers of growth [11] Other Important Information - The company declared a regular cash dividend of $0.05 per share payable on September 10 for shareholders of record on September 2 [23] - The integration of acquired companies, EMI and Canada's Best Store Fixtures, has exceeded expectations, contributing positively to cross-selling activities [10] Q&A Session Summary Question: Can you discuss the opportunity in the C store and refueling market? - The company mentioned thousands of site locations involved in a large program, with ongoing projects expected to continue into 2026 [26][28] Question: Is the grocery market fully recovered after the merger fallout? - Management indicated that while the market is stable, it has not fully recovered, but there is potential for further growth [30] Question: What is the status of cross-selling initiatives and margin expansion at EMI? - The company has seen over 200 basis points improvement in EMI's performance and expects further improvements in the coming year [31] Question: How do you view your market share relative to competitors? - The company believes it has significant growth opportunities in various segments, maintaining a single-digit market share in many areas [68]