November 2, 2022
LSI’s Lighting Segment Continues Impressive Run
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Overall company sales produce the sixth consecutive quarter of double-digit sales growth
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Quarterly lighting segment sales jump 32% compared to same quarter last year
Today, LSI Industries reported results for its 2023 first quarter period that ended on September 30. The company’s financials continue to demonstrate a healthy and rapid recovery from industry wide challenges relating to COVID and supply chain. Revenue growth to start the new fiscal year was robust and so were LSI’s other key financial indicators.
Overall performance:
LSI showed strong growth among many key performance metrics. Sales, operating income and profits were all healthy numbers with favorable comparisons to Q1 2022. The company has also shown two years of dedication and solid progress with reducing debt.
LSI has two revenue-producing business units, the Lighting Segment and the Display Solutions Segment. The Lighting Segment represents 53% of total LSI Industries revenue for the quarter.
Comparing overall performance in Q1 2023 to the same quarter last fiscal year:
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Total net sales +19% to $127.1 million
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Net income doubled to $6.3 million. Adjusted Net Income of $7.1 million.
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EBITDA of $12.4 million; Adjusted EBITDA $13.3 million or 10.5% of sales
Lighting Segment performance for the quarter:
Lighting Segment net sales for Q1 2023 were $67.5 million, an increase of 32% versus the same quarter a year ago.
Management commentary: "Our Lighting segment had an outstanding quarter with sales increasing over 30%, gross margin rate improving 290 bps, and operating income increasing 109% compared to the same quarter last year. Demand for our products was strong across all channels, including double-digit sales growth in both project business and shipments to distributor stock."
When evaluating segment profit margins, it’s important to recognize that, in addition to the two revenue producing segments, that LSI reports a Corporate Segment, which appears to be a reservoir for shared company overhead. The Corporate Segment operated at a $4.9 million net loss for the quarter, but the total company adjusted operating income was still a robust $13.3 million or 10.5% of sales.
Additional Lighting Segment management commentary:
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LSI's efforts over the last two years to strengthen the lighting offering for select vertical market applications continues to position LSI to win additional business.
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While sales for both indoor and outdoor products increased significantly, first quarter sales for key indoor applications increased by more than doubled versus the prior year, driven primarily by new product introductions.
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LSI continues meet the demanding delivery/service requirements of the market, capitalizing on supply chain capabilities, and recently reduced lead-times for certain key products.
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First quarter Lighting orders increased 11% compared to the prior year period
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LSI claims that it exited the quarter (on September 30) with a healthy backlog.
