LSI Industries Inc. (Nasdaq:LYTS)
today:
- reported third quarter net sales of $66,152,000, an increase of
5% as compared to $62,937,000 in the same period of the prior
fiscal year;
- reported a third quarter pre-tax non-cash goodwill impairment
charge of $272,000;
- reported a third quarter net loss of $(315,000) or $(0.01) per
share as compared to a net loss of $(377,000) or $(0.02) per share
for the same period of the prior fiscal year;
- reported nine month net sales of $211,953,000, an increase of
7% as compared to $197,206,000 in the same period of the prior
fiscal year; and
- reported a nine month net loss of $(935,000) or $(0.04) per
share as compared to net income of $1,719,000 or $0.07 per share
for the same period of the prior fiscal year
Financial Highlights |
|
|
|
|
|
|
(In thousands, except per share data;
unaudited) |
Three Months Ended |
Nine Months Ended |
|
March 31 |
March 31 |
|
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
Net Sales |
$ 66,152 |
$ 62,937 |
5% |
$ 211,953 |
$ 197,206 |
7% |
|
|
|
|
|
|
|
Operating Income (loss) |
$ (506) |
$ 94 |
n/m |
$ (188) |
$ 3,491 |
n/m |
|
|
|
|
|
|
|
Net Income (loss) |
$ (315) |
$ (377) |
n/m |
$ (935) |
$ 1,719 |
n/m |
|
|
|
|
|
|
|
Earnings (loss) per share (diluted) |
$ (0.01) |
$ (0.02) |
n/m |
$ (0.04) |
$ 0.07 |
n/m |
|
|
|
|
|
|
|
3/31/13 |
6/30/12 |
Working Capital |
$ 77,671 |
$ 83,702 |
Total Assets |
$ 168,366 |
$ 175,226 |
Long-Term Debt |
$ nil |
$ nil |
Shareholders' Equity |
$ 142,046 |
$ 149,368 |
Third Quarter Fiscal 2013 Results
Net sales in the third quarter of fiscal 2013 were $66,152,000,
an increase of 5% as compared to last year's third quarter net
sales of $62,937,000. Lighting Segment net sales increased
1.4% to $47,372,000 with sales to national accounts and niche
markets decreasing 4.3%, sales to the Commercial / Industrial
lighting market increasing 6.1%, sales of $784,000 related to LED
video screens increasing 246.9%, and lighting sales to
international markets of $3,850,000 decreasing 3.5%. In the
other reportable business segments, Graphics Segment net sales
increased 46.6% to $13,110,000, Electronic Components Segment net
sales decreased 4.6% to $4,395,000 and net sales of the All Other
Category decreased 52.3% to $1,275,000. The Company's third
quarter net sales to the petroleum / convenience store market were
approximately $17.4 million, representing a $2.3 million or 15.4%
increase over the same period of the prior fiscal year. The Company
reported a non-cash $272,000 goodwill impairment in the Electronic
Components Segment in the third quarter of fiscal 2013 with no
corresponding impairment in the third quarter of fiscal
2012. The fiscal 2013 third quarter net loss of $(315,000), or
$(0.01) per share, compares to the fiscal 2012 third quarter net
loss of $(377,000), or $(0.02) per share. Earnings per share
represents diluted earnings per share.
Nine Month Fiscal 2013 Results
Net sales in the first nine months of fiscal 2013 were
$211,953,000, an increase of 7% as compared to last year's nine
month net sales of $197,206,000. Lighting Segment net sales
increased 5.0% to $156,906,000 with sales to national accounts and
niche markets increasing 4.4%, sales to the Commercial / Industrial
lighting market decreasing 2.2%, sales of $5,802,000 related to LED
video screens increasing 268.8%, and lighting sales to
international markets of $11,831,000 increasing 15.6%. In the
other reportable business segments, Graphics Segment net sales
increased 16.5% to $34,387,000, Electronic Components Segment net
sales increased 14.2% to $15,108,000 and net sales of the All Other
Category increased 10.0% to $5,552,000. The Company's fiscal
2013 nine month net sales to the petroleum / convenience store
market were approximately $59.0 million, representing a $6.3
million or 12.0% increase over the same period of the prior fiscal
year. In the first nine months of fiscal 2013, the Company reduced
the contingent earn-out liability related to the March 2012
acquisition of Virticus Corporation and recorded pre-tax income of
$705,000 primarily in the Corporate Administrative expenses, with
no comparable item in the first nine months of fiscal
2012. The Company reported a $2,413,000 goodwill impairment in
the Electronic Components Segment in the first nine months of
fiscal 2013 as compared to a $258,000 goodwill impairment in the
Graphics Segment in the first nine months of fiscal 2012. The
fiscal 2013 nine month net loss of $(935,000), or $(0.04) per
share, compares to fiscal 2012 nine month net income of $1,719,000,
or $0.07 per share. Earnings per share represents diluted
earnings per share.
Balance Sheet
The balance sheet at March 31, 2013 included current assets of
$101.9 million, current liabilities of $24.2 million and working
capital of $77.7 million, which includes cash of $13.9
million. The current ratio was 4.2 to 1. The Company has
shareholders' equity of $142.0 million, no long-term debt, and
borrowing capacity on its commercial bank facilities as of March
31, 2013 of $34.7 million. With continued strong cash flow, a
sound and conservatively capitalized balance sheet, and $35 million
in credit facilities, LSI Industries believes its financial
condition is sound and capable of supporting the Company's planned
growth, including acquisitions, if any.
Cash Dividend Actions
The Board of Directors declared a regular quarterly cash
dividend of $0.06 per share payable May 14, 2013 to shareholders of
record as of May 7, 2013. The indicated annual cash dividend
rate for fiscal 2013 is $0.24 per share. The declaration and
amount of any cash and stock dividends will be determined by the
Board of Directors in its discretion based upon its evaluation of
earnings, cash flow requirements and future business developments
and opportunities, including acquisitions, if any.
Company Comments
Robert J. Ready, Chief Executive Officer, commented, "Looking at
the third quarter ended March 31, 2013, from a segment viewpoint,
Lighting increased 1.4% ($658,000), Graphics increased 46.6%
($4,170,000), Electronics decreased 4.6% ($214,000), and the All
Other Category decreased 52.3% ($1,399,000). Taken as a whole,
total net sales increased 5.1%, or $3,218,000 from the same
quarterly period of the prior fiscal year. Before an
additional goodwill impairment and reversal of the tax impact of a
contingent earnout liability, we operated at a breakeven basis
during the most recent quarter. We would have had better
operating results had we not made a major transition to stronger
lighting sales representation in several geographic
markets. While this action caused a short-term negative effect
on sales, we believe it will result in the enhancement of our
long-term market position.
"What about the future? We see a very strong future for LSI
Industries. This optimism is being driven by (i) our flow of
new products (particularly solid-state LED lighting solutions),
(ii) our recently acquired and implemented capability to integrate
controls into products that address the fast growing lighting
controls part of the market, (iii) the generally favorable growth
prospects for our niche and commercial / industrial lighting
markets and (iv) our recent changes in independent sales
representation in the C & I lighting market.
"Particularly important is demand that is being driven by
energy-efficient lighting and graphics renovation
projects. LSI is one of the leading lighting and graphics
companies that is dedicated to providing a wide range of advanced
solid-state LED products to the marketplace. At present,
approximately 35% of our total lighting sales are from this
platform. In certain of our niche markets this percentage is
substantially higher. We introduced our Sterling™ (XSB) LED
area light in April. This patented design features angled LED
optical assemblies which are purposely positioned to deliver light
with precision control for greater uniformity, increased
distance between pole assemblies and greater overall lumen
performance than any of our previous LED designs. As a result,
fewer light assemblies are required, translating into lower energy
and installation costs with a faster payback.
"Later this quarter we will be introducing additional
cost-effective advanced solid-state LED products for both indoor
and outdoor applications that are specifically targeted to
accelerate the momentum we have already achieved in the retail
petroleum / convenience store market. We believe our new canopy
fixture will once again establish a new standard in value and
performance the way the LSI Scottsdale did in 1995. This high
performance solid-state LED product has tremendous
potential. Also, we have been selected by a large oil company
as the primary source for a new national rollout program that will
begin during our fourth quarter and will continue throughout the
next fiscal year. The program involves both graphics and
lighting elements and employs our newest LED products.
"In the second quarter press release, I mentioned our recent
move to upgrade our independent sales representation in our
lighting business in a number of important geographic
markets. We are now able to better extend our influence into
the specification-grade part of the C & I lighting
market. These changes give us stronger representation in a
number of large markets, including Boston, New York, Washington DC,
New Jersey, San Diego, Salt Lake City, Detroit, South Carolina, New
Hampshire, Maine and Vermont. During the third and fourth
quarters of fiscal 2013 the transition plan has and will continue
to result in some temporary loss of sales volume which will
gradually be offset by the new rep groups as they come on
line. As we move into fiscal 2014 we fully expect to see the
benefits of this strategic move to larger and more powerful selling
agencies. For our commercial / industrial lighting part of the
business, we believe these agency changes combined with our new LED
and controls products could generate sales increases of between 25%
and 50% from the current base of about $100 million over the next
couple of fiscal years.
"Our balance sheet is solid and without debt. Cash flow is
strong and comfortably funds our working capital, capital
expenditures, product development, and cash dividend
requirements. We remain committed to our strategy of product
technology development for the niche, commercial and retail markets
that we serve worldwide."
Non-GAAP Financial Measures
This press release includes adjustments to GAAP net income for
the three and nine month periods ended March 31, 2013 and
2012. Adjusted net income (loss) and earnings (loss) per
share, which excludes the impact of goodwill impairment, reversal
of a contingent Earn-Out liability, and acquisition deal costs and
related expenses, are non-GAAP financial measures. We believe
that it is useful as a supplemental measure in assessing the
operating performance of our business. This measure is used by
our management, including our chief operating decision maker, to
evaluate business results. We exclude these non-recurring
items because they are not representative of the ongoing results of
operations of our business. Below is a reconciliation of this
non-GAAP measurement to the net income reported for the periods
indicated.
(in thousands, except per share data;
unaudited) |
Third Quarter |
|
FY 2013 |
Diluted EPS |
FY 2012 |
Diluted EPS |
Reconciliation of net (loss) to adjusted net
(loss): |
|
|
|
|
|
|
|
|
|
Net (loss) and (loss) per share as
reported |
$ (315) |
$ (0.01) |
$ (377) |
$ (0.02) |
|
|
|
|
|
Adjustment for the reversal of
a contingent Earn-Out liability, inclusive of the income tax
effect |
(40) |
-- |
-- |
-- |
|
|
|
|
|
Adjustment for the acquisition deal costs
and related expenses, inclusive of the income tax effect |
-- |
-- |
376 |
0.02 |
|
|
|
|
|
Adjustment for goodwill impairments,
inclusive of the income tax effect |
334 |
0.01 |
-- |
-- |
|
|
|
|
|
Adjusted net (loss) and (loss) per
share |
$ (21) |
$ 0.00 |
$ (1) |
$ 0.00 |
|
|
|
|
|
(in thousands, except per share data;
unaudited) |
Nine Months |
|
FY 2013 |
Diluted EPS |
FY 2012 |
Diluted EPS |
Reconciliation of net income (loss) to
adjusted net income: |
|
|
|
|
|
|
|
|
|
Net income (loss) and earnings (loss) per
share as reported |
$ (935) |
$ (0.04) |
$ 1,719 |
$ 0.07 |
|
|
|
|
|
Adjustment for the reversal of
a contingent Earn-Out liability, inclusive of the income tax
effect |
(551) |
(0.02) |
-- |
-- |
|
|
|
|
|
Adjustment for the acquisition deal costs
and related expenses, inclusive of the income tax effect |
-- |
-- |
376 |
0.02 |
|
|
|
|
|
Adjustment for goodwill impairment,
inclusive of the income tax effect |
1,886 |
0.08 |
258 |
0.01 |
|
|
|
|
|
Adjusted net income and earnings per
share |
$ 400 |
$ 0.02 |
$ 2,353 |
$ 0.10 |
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995
This document contains certain forward-looking statements that
are subject to numerous assumptions, risks or
uncertainties. The Private Securities Litigation Reform Act of
1995 provides a safe harbor for forward-looking
statements. Forward-looking statements may be identified by
words such as "estimates," "anticipates," "projects," "plans,"
"expects," "intends," "believes," "seeks," "may," "will," "should"
or the negative versions of those words and similar expressions,
and by the context in which they are used. Such statements,
whether expressed or implied, are based upon current expectations
of the Company and speak only as of the date made. Actual
results could differ materially from those contained in or implied
by such forward-looking statements as a result of a variety of
risks and uncertainties over which the Company may have no
control. These risks and uncertainties include, but are not
limited to, the impact of competitive products and services,
product demand and market acceptance risks, potential costs
associated with litigation and regulatory compliance, reliance on
key customers, financial difficulties experienced by customers, the
cyclical and seasonal nature of our business, the adequacy of
reserves and allowances for doubtful accounts, fluctuations in
operating results or costs whether as a result of uncertainties
inherent in tax and accounting matters or otherwise, unexpected
difficulties in integrating acquired businesses, the ability to
retain key employees of acquired businesses, unfavorable economic
and market conditions, and the results of asset impairment
assessments. You are cautioned to not place undue reliance on
these forward-looking statements. In addition to the factors
described in this paragraph, the risk factors identified in our
Form 10-K and other filings the Company may make with the SEC
constitute risks and uncertainties that may affect the financial
performance of the Company and are incorporated herein by
reference. The Company does not undertake and hereby disclaims
any duty to update any forward-looking statements to reflect
subsequent events or circumstances.
About the Company
Leadership. Strength. Innovation. Those are the
key values behind the smart vision upon which LSI Industries Inc.
was founded when established in 1976. Today LSI demonstrates
this in our dedication to advancing technology throughout all
aspects of our business – in both product solutions and production
techniques. We are committed to American innovation through
technology.
We are a vertically integrated manufacturer who combines
assimilated technology, design and manufacturing to produce the
most efficient, high quality products possible. We are
dedicated to advancing solid-state technology to make affordable,
high performance, energy efficient lighting and custom graphic
products that bring value to our customers. In addition, we
can provide sophisticated lighting and energy management control
solutions to help customers manage their energy performance.
Further, we offer design support, engineering, installation
and project management for custom graphics rollout programs for
today's retail environment.
LSI is proud to be an American company with an American work
force, building an American product. We are a U.S.
manufacturer with marketing / sales efforts throughout the world
with concentration currently on North America, Latin America,
Australia, New Zealand, Asia, Europe and the Middle East. Our
major markets include the commercial / industrial lighting,
petroleum / convenience store, multi-site retail (including
automobile dealerships, restaurants and national retail accounts),
sports and entertainment markets. Headquartered in Cincinnati,
Ohio, LSI has facilities in Ohio, Kansas, Kentucky, New York, North
Carolina, Oregon, Rhode Island, Texas and Montreal,
Canada. The Company's common shares are traded on the NASDAQ
Global Select Market under the symbol LYTS.
As we redefine LSI Industries' place in the markets we serve, we
will emphasize our commitment to preserving the foundation of a
well-managed, financially strong and creatively unique company with
even stronger emphasis on a growing technology base. Through
the Leadership, Strength and Innovation that is core to our
culture, we move forward continuing our transition to a
technology-reliant company with lighting and graphics and the
ability to provide the stronger performance our many partners
expect.
For further information, contact either Bob
Ready, Chief Executive Officer, or Ron Stowell, Vice President,
Chief Financial Officer, and Treasurer at (513) 793-3200.
Additional note: Today's news release, along
with past releases from LSI Industries, is available on the
Company's internet site at www.lsi-industries.com or by email or
fax, by calling the Investor Relations Department at (513)
793-3200.
Condensed Consolidated
Statements of Operations |
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
March 31 |
March 31 |
(in thousands, except per share data;
unaudited) |
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Net sales |
$ 66,152 |
$ 62,937 |
$ 211,953 |
$ 197,206 |
|
|
|
|
|
Cost of products and services sold |
52,231 |
49,621 |
166,279 |
153,500 |
|
|
|
|
|
Gross profit |
13,921 |
13,316 |
45,674 |
43,706 |
|
|
|
|
|
Selling and administrative expenses |
14,155 |
13,222 |
43,449 |
39,957 |
|
|
|
|
|
Goodwill impairment |
272 |
-- |
2,413 |
258 |
|
|
|
|
|
Operating income (loss) |
(506) |
94 |
(188) |
3,491 |
|
|
|
|
|
Interest expense, net |
21 |
31 |
23 |
108 |
|
|
|
|
|
Income (loss) before income
taxes |
(527) |
63 |
(211) |
3,383 |
|
|
|
|
|
Income tax expense (benefit) |
(212) |
440 |
724 |
1,664 |
|
|
|
|
|
Net income (loss) |
$ (315) |
$ (377) |
$ (935) |
$ 1,719 |
|
|
|
|
|
Income (loss) per common share |
|
|
|
|
Basic |
$ (0.01) |
$ (0.02) |
$ (0.04) |
$ 0.07 |
Diluted |
$ (0.01) |
$ (0.02) |
$ (0.04) |
$ 0.07 |
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
|
Basic |
24,312 |
24,300 |
24,308 |
24,297 |
Diluted |
24,410 |
24,360 |
24,372 |
24,352 |
|
|
Condensed Consolidated
Balance Sheets |
(in thousands, unaudited) |
March 31, |
June 30, |
|
2013 |
2012 |
Current Assets |
$ 101,907 |
$ 106,623 |
Property, Plant and Equipment, net |
44,672 |
42,526 |
Other Assets |
21,787 |
26,077 |
|
$ 168,366 |
$ 175,226 |
|
|
|
Current Liabilities |
$24,236 |
$22,921 |
Long-Term Debt |
-- |
-- |
Other Long-Term Liabilities |
2,084 |
2,937 |
Shareholders' Equity |
142,046 |
149,368 |
|
$ 168,366 |
$ 175,226 |
CONTACT: BOB READY OR
RON STOWELL
(513) 793-3200
LSI Industries (NASDAQ:LYTS)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
LSI Industries (NASDAQ:LYTS)
Historical Stock Chart
Von Jul 2023 bis Jul 2024