LSI Industries Inc. (Nasdaq:LYTS)
today:
- reported third quarter net sales of $68,996,000, an increase of
4% as compared to $66,152,000 in the same period of the prior
fiscal year;
- reported a third quarter net loss of $(1,009,000) or $(0.04)
per share as compared to a net loss of $(315,000) or $(0.01) per
share for the same period of the prior fiscal year;
- reported nine month net sales of $225,605,000, an increase of
6% as compared to $211,953,000 in the same period of the prior
fiscal year;
- reported nine month net income of $1,726,000 or $0.07 per share
as compared to a net loss of $(935,000) or $(0.04) per share for
the same period of the prior fiscal year; and
- declared a regular quarterly cash dividend of $0.06 per share
payable May 13, 2014 to shareholders of record May 6, 2014
|
|
|
|
|
|
|
Financial Highlights |
|
|
|
|
|
|
(In thousands, except per |
Three Months
Ended |
Nine Months Ended |
share data; unaudited) |
March 31 |
March 31 |
|
2014 |
2013 |
% Change |
2014 |
2013 |
% Change |
|
|
|
|
|
|
|
Net Sales |
$68,996 |
$66,152 |
4% |
$225,605 |
$211,953 |
6% |
|
|
|
|
|
|
|
Operating Income (loss) |
$(946) |
$(506) |
n/m |
$3,404 |
$(188) |
n/m |
|
|
|
|
|
|
|
Net Income (loss) |
$(1,009) |
$(315) |
n/m |
$1,726 |
$(935) |
n/m |
|
|
|
|
|
|
|
Earnings (loss) per |
|
|
|
|
|
|
share (diluted) |
$(0.04) |
$(0.01) |
n/m |
$0.07 |
$(0.04) |
n/m |
|
|
|
|
|
|
|
|
3/31/14 |
6/30/13 |
Working Capital |
$ 75,651 |
$ 76,703 |
Total Assets |
$167,870 |
$169,179 |
Long-Term Debt |
$ nil |
$ nil |
Shareholders' Equity |
$140,429 |
$141,690 |
Third Quarter Fiscal 2014 Results
Net sales in the third quarter of fiscal 2014 were $68,996,000,
an increase of 4% as compared to last year's third quarter net
sales of $66,152,000. Lighting Segment net sales increased
11.9% to $53,013,000, Graphics Segment net sales decreased 24.5% to
$9,894,000, Electronic Components Segment net sales increased 15.1%
to $5,060,000 and All Other Category net sales decreased 19.3% to
$1,029,000. The Company recorded $362,000 of tax expense
related to the inability to utilize tax credits due to a change in
the New York state tax code, with no corresponding charge in the
third quarter of fiscal 2013. 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 2014. The fiscal
2014 third quarter net loss of $(1,009,000), or $(0.04) per share,
compares to a fiscal 2013 third quarter net loss of $(315,000), or
$(0.01) per share. Earnings per share represents diluted
earnings per share.
Nine Month Fiscal 2014 Results
Net sales in the first nine months of fiscal 2014 were
$225,605,000, an increase of 6% as compared to last year's nine
month net sales of $211,953,000. Lighting Segment net sales
increased 8.3% to $169,864,000, Graphics Segment net sales
increased 7.2% to $36,856,000, Electronic Components Segment net
sales decreased 5.9% to $14,213,000 and net sales of the All Other
Category decreased 15.9% to $4,672,000. 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
Corporate Administrative expenses, with no comparable item in the
first nine months of fiscal 2014. The Company recorded
$362,000 of tax expense related to the inability to utilize tax
credits due to a change in the New York state tax code, with no
corresponding charge in the first nine months of fiscal
2013. The Company reported a $2,413,000 goodwill impairment in
the Electronic Components Segment in the first nine months of
fiscal 2013, with no comparable item in the first nine months of
fiscal 2014. The fiscal 2014 nine month net income of
$1,726,000, or $0.07 per share, compares to the fiscal 2013 nine
month net loss of $(935,000), or $(0.04) per share. Earnings
per share represents diluted earnings per share.
Management Succession and Retirement Plans
As part of the Company's previously implemented management
succession and retirement plans, LSI also announced that it has
established a special committee of the independent directors for
the purpose of conducting a search for two highly qualified and
experienced senior executives. The Company plans to hire a
Chief Operating Officer (COO) and a Chief Technology Officer (CTO)
to further strengthen its executive management team. Upon the
hiring of the COO, Bob Ready will become Executive Chairman and
substantially reduce his day-to-day involvement. Upon the
hiring of the CTO, James Sferra will become an employee advisor to
the Company and substantially reduce his day-to-day
involvement. Messrs. Ready and Sferra will both work to
support a smooth transition to the senior executive team through
their on-going, multi-year participation during the transition
period. Scott Ready will remain as President. No other
management changes are contemplated at this time. The search
for a COO and CTO will commence during the current quarter.
Balance Sheet
The balance sheet at March 31, 2014 included current assets of
$101.7 million, current liabilities of $26.1 million and working
capital of $75.7 million, which includes cash of $10.4
million. The current ratio was 3.9 to 1. The Company has
shareholders' equity of $140.4 million, no long-term debt, and
borrowing capacity on its commercial bank facilities as of March
31, 2014 of $35.0 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 13, 2014 to shareholders of
record as of May 6, 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,
"Seasonality due to winter weather conditions had its usual
negative impact on operating results for the third quarter ended
March 31, 2014. Despite this seasonal effect, overall net
sales increased 4% and Lighting Segment net sales increased nearly
12%.
"Net sales of solid-state LED lighting products continue to
represent an increasing percentage of our total lighting
sales. Such technologically advanced lighting now represents
approximately 46% of total lighting sales, and in most of LSI's
niche markets the figure is substantially higher. LSI is on
target for releasing additional LED-based products during the
remainder of calendar 2014. We will also be introducing a
suite of advanced lighting control products in July at this year's
Lightfair convention.
"The commercial and industrial lighting market is also strong
and the outlook for growth is quite positive. LSI experienced
double digit growth in this large market in the first nine months
of fiscal 2014. We continue to work with our newest agents by
providing product training and promotional programs. We are
pleased with the new agency representation we put in place during
the past twelve months.
"We have not yet achieved the level of efficient manufacturing
needed to best serve our customers or shareholders. We have a
great deal of focus on this area of the business and have added new
equipment and introduced better material flow and assembly
processes. This type of problem does not get fixed overnight,
but we are already seeing some improvement in on-time performance
and other efficiency measures. This is an important key to
improving our margins and profits.
"The Graphics Segment has been negatively impacted this fiscal
year by delays in spending in the retail market.
However, the graphics business remains an important part of the
Company's strategy and we believe the outlook for calendar years
2014 and 2015 looks much stronger. In particular, this
division is working on a number of larger roll-out programs in
LSI's niche markets, including petroleum/convenience store, that
have the potential to improve the operating results quite
substantially. With regard to recent developments, the
graphics business has expanded its digital products and
services.
"As disclosed in this press release, we have set the wheels in
motion to recruit highly qualified and experienced executives to
LSI's senior executive management team. A special committee of
the independent directors will direct the search for a Chief
Operating Officer and a Chief Technology Officer. Upon hiring
of the COO, I will become Executive Chairman and concurrently
reduce my day-to-day involvement. Similarly, when the CTO is
hired, Jim Sferra will become an employee advisor to LSI and
concurrently reduce his day-to-day involvement. Both Jim and I
will work to support a smooth management transition. We look
forward to this important step in LSI's history and future."
Non-GAAP Financial Measures
This press release includes adjustments to GAAP net income
(loss) for the three and nine month periods ended March 31, 2014
and 2013. Adjusted net income (loss) and earnings (loss) per
share, which excludes the impact of the New York state tax code
change, 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) |
Third Quarter |
|
Diluted |
|
Diluted |
|
FY 2014 |
EPS |
FY 2013 |
EPS |
Reconciliation of net (loss) to adjusted
net (loss): |
|
|
|
|
|
|
|
|
|
Net (loss) and (loss) per share as
reported |
$(1,009) |
$(0.04) |
$(315) |
$(0.01) |
|
|
|
|
|
Adjustment for the New York state
tax code change |
362 |
0.01 |
-- |
-- |
|
|
|
|
|
Adjustment for the reversal of
a contingent Earn-Out liability, inclusive of the income tax
effect |
-- |
-- |
(40) |
-- |
|
|
|
|
|
Adjustment for goodwill impairments,
inclusive of the income tax effect |
-- |
-- |
334 |
0.01 |
|
|
|
|
|
Adjusted net (loss) and (loss) per
share |
$(647) |
$(0.03) |
$(21) |
$0.00 |
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data;
unaudited) |
Nine Months |
|
Diluted |
|
Diluted |
|
FY 2014 |
EPS |
FY 2013 |
EPS |
Reconciliation of net income (loss)
to adjusted net income: |
|
|
|
|
|
|
|
|
|
Net income (loss) and earnings (loss) per
share as reported |
$1,726 |
$0.07 |
$(935) |
$(0.04) |
|
|
|
|
|
Adjustment for the New York state
tax code change |
362 |
0.01 |
-- |
-- |
|
|
|
|
|
Adjustment for the reversal of
a contingent Earn-Out liability, inclusive of the income tax
effect |
-- |
-- |
(551) |
(0.02) |
|
|
|
|
|
Adjustment for goodwill impairment,
inclusive of the income tax effect |
-- |
-- |
1,886 |
0.08 |
|
|
|
|
|
Adjusted net income and earnings per
share |
$2,088 |
$0.09 |
$400 |
$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 |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
(in thousands, except per |
March
31 |
March
31 |
share data; unaudited) |
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Net sales |
$68,996 |
$66,152 |
$225,605 |
$211,953 |
|
|
|
|
|
Cost of products and services sold |
55,281 |
52,231 |
176,011 |
166,279 |
|
|
|
|
|
Gross profit |
13,715 |
13,921 |
49,594 |
45,674 |
|
|
|
|
|
Selling and administrative expenses |
14,661 |
14,155 |
46,190 |
43,449 |
|
|
|
|
|
Goodwill impairment |
-- |
272 |
-- |
2,413 |
|
|
|
|
|
Operating income (loss) |
(946) |
(506) |
3,404 |
(188) |
|
|
|
|
|
Interest expense, net |
17 |
21 |
41 |
23 |
|
|
|
|
|
Income (loss) before income taxes |
(963) |
(527) |
3,363 |
(211) |
|
|
|
|
|
Income tax expense (benefit) |
46 |
(212) |
1,637 |
724 |
|
|
|
|
|
Net income (loss) |
$ (1,009) |
$ (315) |
$ 1,726 |
$ (935) |
|
|
|
|
|
Income (loss) per common share |
|
|
|
|
Basic |
$ (0.04) |
$ (0.01) |
$ 0.07 |
$ (0.04) |
Diluted |
$ (0.04) |
$ (0.01) |
$ 0.07 |
$ (0.04) |
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
|
|
Basic |
24,401 |
24,312 |
24,376 |
24,308 |
Diluted |
24,609 |
24,410 |
24,545 |
24,372 |
|
|
|
Condensed Consolidated Balance
Sheets |
|
|
(in thousands, unaudited) |
March 31, |
June 30, |
|
2014 |
2013 |
Current Assets |
$101,746 |
$102,913 |
Property, Plant and Equipment, net |
45,058 |
45,350 |
Other Assets |
21,066 |
20,916 |
|
$167,870 |
$169,179 |
|
|
|
Current Liabilities |
$26,095 |
$26,210 |
Long-Term Debt |
-- |
-- |
Other Long-Term Liabilities |
1,346 |
1,279 |
Shareholders' Equity |
140,429 |
141,690 |
|
$167,870 |
$169,179 |
CONTACT: BOB READY OR
RON STOWELL
(513) 793-3200
LSI Industries (NASDAQ:LYTS)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
LSI Industries (NASDAQ:LYTS)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024