LSI Industries Reports Fourth Quarter and Full-Year Fiscal 2021 Results and Declares Quarterly Cash Dividend
LSI Industries (NASDAQ: LYTS) reported strong fourth quarter and fiscal year 2021 results, with net sales increasing by 53% in Q4 and 3% for the year, totaling $316 million. The net income for Q4 was $0.2 million, while full-year net income decreased to $5.9 million from $9.6 million in the previous year. Adjusted EPS rose to $0.12 in Q4 and $0.36 for the year, up from $0.07 and $0.15 respectively. The company also declared a cash dividend of $0.05 per share. Notably, the acquisition of JSI Store Fixtures boosted growth, particularly in the Display Solutions segment.
- Q4 net sales increased 53% year-over-year.
- Organic sales growth of 39% in Q4.
- Adjusted EPS improved to $0.12 in Q4 from $0.07 in the prior year.
- Acquisition of JSI is expected to drive significant revenue synergies.
- Display Solutions segment sales surged 93% in Q4.
- Net income for fiscal year 2021 decreased to $5.9 million from $9.6 million in the previous year.
- Including acquisition-related expenses, diluted EPS fell to $0.01 in Q4.
CINCINNATI, Aug. 19, 2021 (GLOBE NEWSWIRE) -- LSI Industries Inc. (NASDAQ: LYTS, or the “Company”), a leading U.S. based manufacturer of commercial lighting and display solutions, today announced results for the fourth quarter and full-year fiscal 2021.
FOURTH QUARTER 2021 SUMMARY
- Net Sales increased
53% versus Prior Year, organic sales increased39% - Completed acquisition of JSI Store Fixtures on May 21, 2021
- Net Income of
$0.2 million ; Adjusted Net Income of$3.3 million - Diluted EPS of
$0.01 , including$0.08 of acquisition related expense - Adjusted EPS
$0.12 versus$0.07 prior year
FISCAL YEAR 2021 SUMMARY
- Net Sales increased
3% from prior year to$316 million - Net Income of
$5.9 million ; Adjusted Net Income of$9.8 million - Diluted EPS of
$0.21 ; Adjusted EPS of$0.36 versus$0.15 prior year - EBITDA of
$16.1 million ; Adjusted EBITDA of$21.1 million - Free Cash Flow
$25.8 million
LSI generated significant year-over-year growth in net sales and profitability during the fiscal fourth quarter, capitalizing on both improved demand across both its lighting and display markets while continuing to expand its presence within higher growth, higher-margin verticals. Fourth quarter and fiscal 2021 results include approximately five weeks of financial contributions from the JSI Store Fixtures (“JSI”) acquisition completed on May 21, 2021.
The Company reported net income of
LSI reported adjusted net income of
For the twelve months ended June 30, 2021, LSI reported net income of
As of June 30, 2021, the Company had
The Company declared a regular cash dividend of
MANAGEMENT COMMENTARY
James A. Clark, President and Chief Executive Officer commented, “We have continued to expand our presence within growing, high-value lighting and display markets, while positioning the business to capitalize on early indications of a broader sector recovery. Our collective focus on launching new products, customer engagement, technological innovation and operational discipline contributed to strong year-over year growth in adjusted EBITDA and profitability during both the fourth quarter and full-year fiscal 2021, creating significant momentum as we look ahead to fiscal 2022.
“The LSI team delivered
“In May, we completed the acquisition of JSI, a transaction that serves to materially increase our total addressable market opportunity within the growing grocery and convenience store verticals, while driving meaningful revenue synergies across our combined product portfolio. This business combination creates a leading integrated provider of lighting and display solutions to the North American grocery, convenience, and specialty store channels, one uniquely positioned to capitalize on a multi-year period of growth and investment in these markets," continued Clark.
“Both the LSI and JSI teams have demonstrated professionalism and leadership throughout the business combination, resulting in a seamless integration process. We are exceptionally pleased with the high-caliber of our new colleagues, their customer-centric culture, and their commitment to product innovation, all of which aligns with how we do business. In the short period since closing on the transaction, our integration team has identified incremental revenue synergies, together with immediate cost savings not previously identified.
“We have renamed the 'Graphics' segment to 'Display Solutions' to reflect the comprehensive offering the business combination provides. Beginning with these fourth quarter results, we will publish under the 'Lighting' and 'Display Solutions' segments,” noted Clark.
“Fiscal fourth quarter sales for our Display Solutions segment increased
“The Lighting segment generated sales growth of
“We are well positioned entering fiscal 2022,” noted Clark. “The cross-selling opportunities between LSI and JSI are significant, creating a pathway for multi-year growth. These acquisition-related synergies, together with organic investments in sales, marketing, and new products, positions us to create substantial value for our customers, employees and investors,” concluded Clark.
CONFERENCE CALL
A conference call will be held today at 11:00 A.M. ET to review the Company’s financial results and conduct a question-and-answer session.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of LSI Industries’ website at www.lsicorp.com. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software.
Details of the conference call are as follows:
| Call Dial-In: | 877-407-4018 | |
| Conference ID: | 13721147 | |
| Call Replay: | 844-512-2921 | |
| Replay Passcode: | 13721147 |
A replay of the conference call will be available between August 19, 2021 and September 2, 2021. To listen to a replay of the teleconference via webcast, please visit the Investor Relations section of LSI Industries’ website at www.lsicorp.com
ABOUT LSI INDUSTRIES
Headquartered in Greater Cincinnati, LSI is a publicly held company traded over the NASDAQ Stock Exchange under the symbol LYTS. The company manufactures non-residential lighting and retail display solutions. Non-residential lighting consists of high-performance, American-made lighting solutions. The Company’s strength in outdoor lighting applications creates opportunities for it to introduce additional solutions to its valued customers. Retail display solutions consist of graphics solutions, digital signage and technically advanced food display equipment for strategic vertical markets. LSI’s team of internal specialists also provide comprehensive project management services in support of large-scale product rollouts. The company employs about 1,400 people at 11 manufacturing plants in the U.S. and Canada. Additional information about LSI is available at www.lsicorp.com.
FORWARD-LOOKING STATEMENTS
For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit https://investors.lsicorp.com as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors.
Financial Highlights
| Three Months Ended June 30 | Twelve Months Ended June 30 | |||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| 2021 | 2020 | % Change | (In thousands, except per share data) | 2021 | 2020 | % Change | ||||||||||||||||
| $ | 97,015 | $ | 63,470 | 53 | % | Net Sales | $ | 315,612 | $ | 305,558 | 3 | % | ||||||||||
| 1,046 | 1,846 | -43 | % | Operating Income as reported | 8,030 | 13,076 | -39 | % | ||||||||||||||
| 2,938 | - | Acquisition costs | 2,938 | - | ||||||||||||||||||
| 660 | 105 | Stock compensation expense | 1,977 | 599 | ||||||||||||||||||
| 20 | 273 | Severance costs | 41 | 346 | ||||||||||||||||||
| (17 | ) | 329 | Restructuring and plant closure costs (gains) | (14 | ) | (7,038 | ) | |||||||||||||||
| $ | 4,647 | $ | 2,553 | 82 | % | Operating Income as adjusted | $ | 12,972 | $ | 6,983 | 86 | % | ||||||||||
| $ | 198 | $ | 1,513 | -87 | % | Net Income as reported | $ | 5,868 | $ | 9,592 | -39 | % | ||||||||||
| $ | 3,315 | $ | 1,825 | 82 | % | Net Income as adjusted | $ | 9,763 | $ | 4,089 | 139 | % | ||||||||||
| $ | 0.01 | $ | 0.06 | -83 | % | Earnings per share (diluted) as reported | $ | 0.21 | $ | 0.36 | -42 | % | ||||||||||
| $ | 0.12 | $ | 0.07 | 71 | % | Earnings per share (diluted) as adjusted | $ | 0.36 | $ | 0.15 | 140 | % | ||||||||||
| (amounts in thousands) | ||||||
| June 30, | June 30, | |||||
| 2021 | 2020 | |||||
| Working Capital | $ | 54,113 | $ | 51,209 | ||
| Total Assets | $ | 286,821 | $ | 172,263 | ||
| Long-Term Debt | $ | 68,178 | $ | - | ||
| Other Long-Term Liabilities | $ | 16,578 | $ | 11,914 | ||
| Shareholders' Equity | $ | 131,170 | $ | 125,700 | ||
Three Months Ended June 30, 2021 Results
Net sales for the three months ended June 30, 2021 were
Twelve Months Ended June 30, 2021 Results
Net sales for the twelve months ended June 30, 2021 were
Balance Sheet
The balance sheet at June 30, 2021 included current assets of
Cash Dividend Actions
The Board of Directors declared a regular quarterly cash dividend of
Non-GAAP Financial Measures
This press release includes adjustments to GAAP operating income, net income and earnings per share for the three and twelve months ended June 30, 2021 and 2020. Operating income, net income and earnings per share, which exclude the impact of acquisition costs, stock compensation expense, severance costs and restructuring and plant closure costs (gains), are non-GAAP financial measures. We exclude these items because we believe they are not representative of the ongoing results of operations of the business. Also included in this press release are non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA and Adjusted EBITDA), Free Cash Flow and Organic Sales Growth. We believe that these are useful as supplemental measures in assessing the operating performance of our business. These measures are used by our management, including our chief operating decision maker, to evaluate business results, and are frequently referenced by those who follow the Company. These non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, the non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations, in that they do not reflect all amounts associated with our results as determined in accordance with U.S. GAAP. Therefore, these measures should be used only to evaluate our results in conjunction with corresponding GAAP measures. Below is a reconciliation of these non-GAAP measures to net income and earnings per share reported for the periods indicated along with the calculation of EBITDA, Adjusted EBITDA, Free Cash Flow and Organic Sales Growth.
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| June 30 | June 30 | |||||||||||||||||||||||||
| 2021 | 2020 | (In thousands, except per share data) | 2021 | 2020 | ||||||||||||||||||||||
| Diluted EPS | Diluted EPS | Diluted EPS | Diluted EPS | |||||||||||||||||||||||
| Reconciliation of net income to adjusted net income | ||||||||||||||||||||||||||
| $ | 198 | $ | 0.01 | $ | 1,513 | $ | 0.06 | Net Income as reported | $ | 5,868 | $ | 0.21 | $ | 9,592 | $ | 0.36 | ||||||||||
| 2,161 | 0.08 | - | - | Acquisition costs | 2,161 | 0.08 | - | - | ||||||||||||||||||
| 485 | 0.02 | 74 | - | Stock compensation expense | 1,497 | 0.05 | 447 | 0.02 | ||||||||||||||||||
| 15 | - | 192 | 0.01 | Severance costs | 32 | - | 252 | 0.01 | ||||||||||||||||||
| (13 | ) | - | 231 | 0.01 | Restructuring and plant closure costs (gains) | (11 | ) | - | (5,557 | ) | (0.21 | ) | ||||||||||||||
| 468 | 0.02 | (185 | ) | (0.01 | ) | Tax impact due to the change in the estimated annual tax rate used for GAAP reporting purposes | 216 | 0.01 | (645 | ) | (0.02 | ) | ||||||||||||||
| $ | 3,315 | $ | 0.12 | $ | 1,825 | $ | 0.07 | Net Income adjusted | $ | 9,763 | $ | 0.36 | $ | 4,089 | $ | 0.15 | ||||||||||
| NOTE: All adjustments are net of tax except for the adjustment of the tax impact from the change in the estimated annual tax rate | ||||||||||||||||||||||||||
| Three Months Ended June 30 | (Unaudited; In thousands) | Twelve Months Ended June 30 | ||||||||||||||||||||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||||||||||
| 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||
| $ | 1,046 | $ | 1,846 | -43 | % | Operating Income as reported | $ | 8,030 | $ | 13,076 | -39 | % | ||||||||||||
| 2,171 | 2,023 | Depreciation and Amortization | 8,114 | 8,654 | ||||||||||||||||||||
| $ | 3,217 | $ | 3,869 | -17 | % | EBITDA | $ | 16,144 | $ | 21,730 | -26 | % | ||||||||||||
| 2,938 | - | Acquisition costs | 2,938 | - | ||||||||||||||||||||
| 660 | 105 | Stock compensation expense | 1,977 | 599 | ||||||||||||||||||||
| 20 | 273 | Severance costs | 41 | 346 | ||||||||||||||||||||
| (17 | ) | 329 | Restructuring and plant closure costs (gains) | (14 | ) | (7,038 | ) | |||||||||||||||||
| $ | 6,818 | $ | 4,576 | 49 | % | Adjusted EBITDA | $ | 21,086 | $ | 15,637 | 35 | % | ||||||||||||
| Three Months Ended June 30 | (Unaudited; In thousands) | Twelve Months Ended June 30 | ||||||||||||||||||||||
| Free Cash Flow | ||||||||||||||||||||||||
| 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||
| $ | 3,375 | $ | 12,613 | -73 | % | Cash Flow From Operations | $ | 28,009 | $ | 29,710 | -6 | % | ||||||||||||
| - | 118 | Proceeds from Sale of Fixed Assets | - | 20,150 | ||||||||||||||||||||
| (716 | ) | (1,201 | ) | Capital Expenditures | (2,233 | ) | (2,739 | ) | ||||||||||||||||
| $ | 2,659 | $ | 11,530 | -77 | % | Free Cash Flow | $ | 25,776 | $ | 47,121 | -45 | % | ||||||||||||
| Reconciliation of net sales to organic net sales | ||||||||||||||||||
| Q4 2020 | Q4 2021 | % Variance | Q3 2021 | Q4 2021 | % Variance | |||||||||||||
| Lighting Segment | $ | 40,559 | $ | 52,729 | 30.0 | % | $ | 45,740 | $ | 52,729 | 15.3 | % | ||||||
| Display Solutions Segment | $ | 22,911 | $ | 44,286 | 93.3 | % | $ | 26,464 | $ | 44,286 | 67.3 | % | ||||||
| Total Net Sales | $ | 63,470 | $ | 97,015 | 52.9 | % | $ | 72,204 | $ | 97,015 | 34.4 | % | ||||||
| Less: | ||||||||||||||||||
| JSI | - | 9,084 | - | 9,084 | ||||||||||||||
| Total Organic Net Sales | $ | 63,470 | $ | 87,931 | 38.5 | % | $ | 72,204 | $ | 87,931 | 21.8 | % | ||||||
| Q4 2020 | Q4 2021 | % Variance | ||||||||||||||||
| Display Solutions Segment | $ | 22,911 | $ | 44,286 | 93.3 | % | ||||||||||||
| Less: | ||||||||||||||||||
| JSI | - | 9,084 | ||||||||||||||||
| Total Display Solutions Segment Organic Net Sales | $ | 22,911 | $ | 35,202 | 53.6 | % | ||||||||||||
Condensed Consolidated Statement of Operations
| Three Months Ended June 30 | Twelve Months Ended June 30 | |||||||||||||||
| (Unaudited) | ||||||||||||||||
| 2021 | 2020 | (In thousands, except per share data) | 2021 | 2020 | ||||||||||||
| $ | 97,015 | $ | 63,470 | Net Sales | $ | 315,612 | $ | 305,558 | ||||||||
| 74,118 | 47,386 | Cost of Products Sold | 236,637 | 230,944 | ||||||||||||
| 10 | 93 | Severance Costs | 15 | 104 | ||||||||||||
| (17 | ) | 222 | Restructuring (Gains) Costs | (14 | ) | 980 | ||||||||||
| 22,904 | 15,769 | Gross Profit | 78,974 | 73,530 | ||||||||||||
| 21,848 | 13,738 | Selling and Administrative Costs | 70,918 | 68,783 | ||||||||||||
| 10 | 180 | Severance Costs | 26 | 242 | ||||||||||||
| - | 5 | Restructuring Costs (Gains) | - | (8,571 | ) | |||||||||||
| 1,046 | 1,846 | Operating Income | 8,030 | 13,076 | ||||||||||||
| 44 | (120 | ) | Other Expense (Income) | (153 | ) | 513 | ||||||||||
| 96 | 78 | Interest Expense, net | 267 | 870 | ||||||||||||
| 906 | 1,888 | Income Before Taxes | 7,916 | 11,693 | ||||||||||||
| 708 | 375 | Income Tax | 2,048 | 2,101 | ||||||||||||
| $ | 198 | $ | 1,513 | Net Income | $ | 5,868 | $ | 9,592 | ||||||||
| Weighted Average Common Shares Outstanding | ||||||||||||||||
| 26,846 | 26,355 | Basic | 26,692 | 26,274 | ||||||||||||
| 27,719 | 26,649 | Diluted | 27,440 | 26,473 | ||||||||||||
| Earnings Per Share | ||||||||||||||||
| $ | 0.01 | $ | 0.06 | Basic | $ | 0.22 | $ | 0.37 | ||||||||
| $ | 0.01 | $ | 0.06 | Diluted | $ | 0.21 | $ | 0.36 | ||||||||
Condensed Balance Sheet
| (amounts in thousands) | ||||||
| June 30, | June 30, | |||||
| 2021 | 2020 | |||||
| Current Assets | $ | 125,008 | $ | 85,858 | ||
| Property, Plant and Equipment, net | 30,552 | 26,535 | ||||
| Other Assets | 131,261 | 59,870 | ||||
| Total Assets | $ | 286,821 | $ | 172,263 | ||
| Current Liabilities | $ | 70,895 | $ | 34,649 | ||
| Long-Term Debt | 68,178 | - | ||||
| Other Long-Term Liabilities | 16,578 | 11,914 | ||||
| Shareholders' Equity | 131,170 | 125,700 | ||||
| $ | 286,821 | $ | 172,263 | |||
FAQ
What were the earnings results for LSI Industries in Q4 2021?
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