5 Things to Know:  September 14

In a deep dive into Ohio-based LSI Industries Inc.'s Form 10-K, filed with the SEC on September 11, the Inside Lighting I-Team has unearthed a list of nuanced minutiae that provides some insights into the company's inner workings. Going beyond the headline figures, our team has distilled eleven insights from the 72-page annual report, revealing subtle operational adjustments and financial intricacies that might otherwise escape casual observation.

For fiscal year 2024, which ended June 30, LSI Industries reported total revenue of $469.6 million, with the lighting segment contributing $262.4 million.

1. LSI's April acquisition of EMI accounted for $18.1 million in net sales and $700,000 in operating income in the first 10 weeks after the acquisition.
2. The company's Display Solutions segment saw an 8% decline in sales, largely due to lower demand in the grocery vertical attributed to the lengthy regulatory review of a proposed merger between Kroger and Albertsons (referred to generally in the annual report as "two large grocery store chains.")
3. Despite a 6% decline in overall net sales, the company maintained comparable adjusted operating income year-over-year through cost controls and operational efficiencies.
4. The company's effective tax rate increased to 24.5% from 22.7% primarily due to increases in state, local and foreign income taxes.
5. The company recorded $300,000 in foreign exchange currency transaction losses through its Mexican and Canadian subsidiaries.
6. Capital expenditures increased to $5.4 million in fiscal 2024 from $3.2 million in fiscal 2023.
7. The company has $36.2 million available on its $75 million revolving line of credit as of June 30, 2024.
8. The company's operating lease liabilities increased significantly to $16.8 million from $9.5 million, largely due to the EMI acquisition.
9. The company has $43.1 million in open purchase orders primarily related to inventory as of June 30, 2024.
10. The company's Canadian operations have $300,000 in net operating loss carryforwards.
11. The company has a $100,000 valuation allowance against Oregon tax credits not expected to be used.

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Poor nighttime lighting in public areas is causing women to limit activities such as exercise and commuting, according to The Guardian. Research, including a 2023 survey from Transport for New South Wales, found that 59% of women felt unsafe walking after dark due to inadequate lighting, compared to 31% of men. This issue has sparked calls for better lighting in cities like Sydney, where women report avoiding parks and public spaces in early mornings or late evenings.

Experts cited by The Guardian argue that insufficient lighting not only affects women’s sense of safety but also limits their engagement with communities and physical activities. Claire Watson, a runner in Sydney, shared how she often skips exercising in public parks due to poor lighting conditions. Studies from Monash University also highlighted that poor lighting impacts women’s health by discouraging outdoor activities, especially during winter months.

The Guardian reports that inadequate lighting in parks and public transport affects women's safety and freedom. This article sheds light on the issue. #LightingForSafety #UrbanPlanninghttps://t.co/97ZFs8Q9XA

— Inside Lighting (@InsLighting) September 14, 2024

Despite the growing demand for safer public spaces, The Guardian reports that authorities have been hesitant to improve lighting due to concerns about costs and wildlife. However, urban planners advocate for solutions like sensor-activated lights or selective illumination, as implemented in Melbourne’s Royal Botanic Gardens, where lighting has encouraged safe nighttime running.

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United States senators John Hickenlooper (D-CO) and Mike Crapo (R-ID) introduced the Dark and Quiet Skies Act of 2024 to establish a Center of Excellence for Dark and Quiet Skies. The center will focus on mitigating satellite interference with astronomical and scientific observations, collaborating with the satellite industry to develop best practices and voluntary guidelines to reduce both optical and radio interference. The act aims to protect federally-funded scientific research observing celestial bodies and encourage the development of new technologies to limit interference from satellites.

The bill does not directly address the shielding of light sources on Earth, a measure often discussed in the context of light pollution. Instead, it focuses exclusively on satellite interference with research activities, including optical and radio observations. The proposed Center of Excellence will conduct research, promote international cooperation, and publish findings in a publicly accessible repository to advance interference mitigation techniques.

The next legislative step for the bill, currently referred to the Senate Committee on Commerce, Science, and Transportation, involves committee review. If approved, it will proceed to a full Senate vote, followed by consideration in the House of Representatives. After passing both chambers of Congress, the bill would require the president's signature to become law.

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New Orleans is looking to address thousands of streetlight outages by developing a citywide "master plan," according to Fox 8 New Orleans. With over 2,700 reports of streetlight issues in the past year, the city is soliciting vendors to create a comprehensive system for tracking and fixing outages. City Council President Helena Moreno emphasized the importance of reliable street lighting for both safety and the city's image, stating that functional lights reflect a "vibrant" and "functional" New Orleans.

As reported by Fox 8 New Orleans, the city is seeking proposals from vendors to assist with engineering, cost analysis, and piloting new streetlight technologies, including theft-resistant designs. The plan aims to shift from reactive fixes to proactive maintenance, ensuring long-term functionality. Proposals are due by September 23, ahead of preparations for the upcoming Super Bowl.