LSI Industries Inc. (Nasdaq:LYTS)
today:
- reported second quarter net sales of $76,123,000, an increase
of 7% as compared to $71,082,000 in the same period of the prior
fiscal year;
- reported second quarter net income of $870,000 or $0.04 per
share as compared to a net loss of $(2,450,000) or $(0.10) per
share for the same period of the prior fiscal year;
- reported first half net sales of $156,609,000, an increase of
7% as compared to $145,801,000 in the same period of the prior
fiscal year;
- reported first half net income of $2,735,000 or $0.11 per share
as compared to a net loss of $(620,000) or $(0.03) per share for
the same period of the prior fiscal year; and
- declared a regular quarterly cash dividend of $0.06 per share
payable February 11, 2014 to shareholders of record February 4,
2014
Financial Highlights |
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(In thousands, except per share data;
unaudited) |
Three Months Ended |
Six Months Ended |
|
December 31 |
December 31 |
|
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
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Net Sales |
$ 76,123 |
$ 71,082 |
7% |
$ 156,609 |
$ 145,801 |
7% |
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Operating Income (loss) |
$ 1,511 |
$ (2,709) |
n/m |
$ 4,350 |
$ 318 |
n/m |
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Net Income (loss) |
$ 870 |
$ (2,450) |
n/m |
$ 2,735 |
$ (620) |
n/m |
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Earnings (loss) per share (diluted) |
$ 0.04 |
$ (0.10) |
n/m |
$ 0.11 |
$ (0.03) |
n/m |
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12/31/13 |
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6/30/13 |
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Working Capital |
$ 77,353 |
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$ 76,703 |
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Total Assets |
$ 171,974 |
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$ 169,179 |
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Long-Term Debt |
$ nil |
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$ nil |
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Shareholders' Equity |
$ 142,512 |
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$ 141,690 |
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Second Quarter Fiscal 2014 Results
Net sales in the second quarter of fiscal 2014 were $76,123,000,
an increase of 7% as compared to last year's second quarter net
sales of $71,082,000. Lighting Segment net sales increased
6.8% to $57,380,000, Graphics Segment net sales increased 23.0% to
$12,954,000, Electronic Components Segment net sales decreased
17.9% to $4,073,000 and All Other Category net sales decreased 7.1%
to $1,716,000. In the second quarter 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 second quarter of fiscal
2014. The Company reported a non-cash $2,141,000 goodwill
impairment in the Electronic Components Segment in the second
quarter of fiscal 2013, with no corresponding impairment in the
second quarter of fiscal 2014. The fiscal 2014 second quarter
net income of $870,000, or $0.04 per share, compares to a fiscal
2013 second quarter net loss of $(2,450,000), or $(0.10) per
share. Earnings per share represents diluted earnings per
share.
First Half Fiscal 2014 Results
Net sales in the first half of fiscal 2014 were $156,609,000, an
increase of 7% as compared to last year's first half net sales of
$145,801,000. Lighting Segment net sales increased 6.7% to
$116,851,000, Graphics Segment net sales increased 26.7% to
$26,962,000, Electronic Components Segment net sales decreased
14.6% to $9,153,000 and net sales of the All Other Category
decreased 14.8% to $3,643,000. In the first half 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 half
of fiscal 2014. The Company reported a $2,141,000 goodwill
impairment in the Electronic Components Segment in the first half
of fiscal 2013 with no corresponding impairment in the first half
of fiscal 2014. The fiscal 2014 first half net income of
$2,735,000, or $0.11 per share, compares to a fiscal 2013 first
half net loss of $(620,000), or $(0.03) per share. Earnings
per share represents diluted earnings per share.
Balance Sheet
The balance sheet at December 31, 2013 included current assets
of $105.7 million, current liabilities of $28.3 million and working
capital of $77.4 million, which includes cash of $10.9
million. The current ratio was 3.7 to 1. The Company has
shareholders' equity of $142.5 million, no long-term debt, and
borrowing capacity on its commercial bank facilities as of December
31, 2013 of $35 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 February 11, 2014 to
shareholders of record as of February 4, 2014. The indicated
annual cash dividend rate for fiscal 2014 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, "Net sales
of solid-state LED lighting products for the second quarter of
fiscal 2014 reached a record at $25.5 million as compared to $17.5
million for the same period of the prior fiscal year. For the
second quarter of fiscal 2014 this volume represented 44.5% of the
Lighting Segment's total net sales. This is the highest such
percentage in LSI's history. Clearly, our line of LED
products, many of which have been only recently introduced, is
receiving outstanding reception with our customers. This is
the case in both our niche markets and the broader commercial /
industrial marketplace. We have additional LED product
introductions planned for the third and fourth quarters of this
fiscal year and look forward to capitalizing on our leadership
position in the LED-driven "lighting revolution" that is upon
us.
"We ended the second quarter with a past due backlog (orders
that have missed customers' delivery dates) of approximately $4
million in lighting products. This sales volume will
contribute to the third quarter but, under normal conditions,
should have been shipped in the second quarter. We
underestimated the demand for our lighting products and, as a
result, experienced manufacturing inefficiencies and higher than
normal expenses as we worked to meet the needs of our
customers. This resulted in lower than normal profit margins
and caused the past due backlog. We are rapidly reducing the
product backlog and have instituted a number of procedures, made
recent capital expenditures, and taken action to improve our
manufacturing efficiencies. We have a razor-sharp focus on
improving our gross profit and operating margins as we move into
the second half of fiscal 2014. The demand for our lighting
products is there and we need to achieve a higher level of margins
and return for our shareholders. This is a primary objective
for fiscal 2014 and beyond.
"Net sales in our Graphics Segment increased to $13.0 million,
up 23% from the same period of the prior year. The operating
loss for this business segment was reduced to $275,000, a
substantial improvement from the $1.1 million loss for the second
quarter of fiscal 2013. We see an improving environment for
our Graphics business, including graphic identification products
that contain solid-state LED light sources and LED lighting for
signage products.
"We continue to maintain a debt-free and strong balance sheet,
and place high value on our cash dividend policy. I believe
that fiscal 2014 promises to be a year of growth for LSI Industries
and I look forward to reporting our progress."
Non-GAAP Financial Measures
This press release includes adjustments to GAAP net income for
the three and six month periods ended December 31,
2012. Adjusted net income (loss) and earnings (loss) per
share, which excludes the impact of goodwill impairment and
reversal of a contingent Earn-Out liability, 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) |
Second Quarter |
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Diluted |
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Diluted |
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FY 2014 |
EPS |
FY 2013 |
EPS |
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Reconciliation of net income (loss) to
adjusted net income (loss): |
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Net income (loss) and
earnings (loss) per share as reported |
$ 870 |
$ 0.04 |
$ (2,450) |
$ (0.10) |
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Adjustment for the reversal of a
contingent Earn-Out liability, inclusive of the income tax
effect |
-- |
-- |
(511) |
(0.02) |
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Adjustment for goodwill impairment,
inclusive of the income tax effect |
-- |
-- |
1,552 |
0.06 |
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Adjusted net income (loss)
and earnings (loss) per share |
$ 870 |
$ 0.04 |
$ (1,409) |
$ (0.06) |
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(in thousands, except per share data;
unaudited) |
First Half |
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Diluted |
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Diluted |
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FY 2014 |
EPS |
FY 2013 |
EPS |
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Reconciliation of net income (loss) to
adjusted net income: |
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Net income (loss) and earnings (loss) per
share as reported |
$ 2,735 |
$ 0.11 |
$ (620) |
$ (0.03) |
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Adjustment for the reversal of
a contingent Earn-Out liability, inclusive of the income tax
effect |
-- |
-- |
(511) |
(0.02) |
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Adjustment for goodwill impairment,
inclusive of the income tax effect |
-- |
-- |
1,552 |
0.06 |
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Adjusted net income and earnings per
share |
$ 2,735 |
$ 0.11 |
$ 421 |
$ 0.02 |
"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 |
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Three Months Ended |
Six Months Ended |
|
December 31 |
December 31 |
(in thousands, except per share data;
unaudited) |
2013 |
2012 |
2013 |
2012 |
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Net sales |
$ 76,123 |
$ 71,082 |
$ 156,609 |
$ 145,801 |
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Cost of products and services sold |
59,366 |
57,200 |
120,730 |
114,048 |
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Gross profit |
16,757 |
13,882 |
35,879 |
31,753 |
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Selling and administrative expenses |
15,246 |
14,450 |
31,529 |
29,294 |
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Goodwill impairment |
-- |
2,141 |
-- |
2,141 |
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Operating income (loss) |
1,511 |
(2,709) |
4,350 |
318 |
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Interest expense (income), net |
12 |
(18) |
24 |
2 |
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Income (loss) before income taxes |
1,499 |
(2,691) |
4,326 |
316 |
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Income tax expense (benefit) |
629 |
(241) |
1,591 |
936 |
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Net income (loss) |
$ 870 |
$ (2,450) |
$ 2,735 |
$ (620) |
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Income (loss) per common share |
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Basic |
$ 0.04 |
$ (0.10) |
$ 0.11 |
$ (0.03) |
Diluted |
$ 0.04 |
$ (0.10) |
$ 0.11 |
$ (0.03) |
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Weighted average common shares
outstanding |
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Basic |
24,373 |
24,307 |
24,363 |
24,306 |
Diluted |
24,627 |
24,391 |
24,530 |
24,382 |
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Condensed Consolidated Balance
Sheets |
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(in thousands, unaudited) |
December 31, |
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June 30, |
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2013 |
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2013 |
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Current Assets |
$ 105,694 |
|
$ 102,913 |
|
Property, Plant and Equipment, net |
45,506 |
|
45,350 |
|
Other Assets |
20,774 |
|
20,916 |
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$ 171,974 |
|
$ 169,179 |
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Current Liabilities |
$ 28,341 |
|
$ 26,210 |
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Long-Term Debt |
-- |
|
-- |
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Other Long-Term Liabilities |
1,121 |
|
1,279 |
|
Shareholders' Equity |
142,512 |
|
141,690 |
|
|
$ 171,974 |
|
$ 169,179 |
|
CONTACT: BOB READY OR
RON STOWELL
(513) 793-3200
LSI Industries (NASDAQ:LYTS)
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부터 6월(6) 2024 으로 7월(7) 2024
LSI Industries (NASDAQ:LYTS)
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부터 7월(7) 2023 으로 7월(7) 2024