LSI Industries Inc. (NASDAQ:LYTS)
today:
- reported FY 2016 net sales of $322,196,000, an increase of 5%
as compared to $307,857,000 in the prior fiscal year;
- reported FY 2016 net income of $9,482,000, or $0.37 per share,
an increase of 84% as compared to net income of $5,151,000, or
$0.21 per share, for the prior fiscal year;
- reported fourth quarter FY 2016 net sales of $80,844,000 an
increase of 6% as compared to $76,073,000 in the same period
of the prior fiscal year;
- reported fourth quarter FY 2016 net income of $1,428,000, or
$0.06 per share, a decrease of 13% as compared to $1,643,000, or
$0.07 per share, for the same period of the prior fiscal year;
and
- declared a regular quarterly cash dividend of $0.05 per share
payable September 7, 2016 to shareholders of record August 29,
2016.
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Financial
Highlights |
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(In thousands, except
per |
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Three Months Ended |
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Year Ended |
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share data;
unaudited) |
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June 30 |
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June 30 |
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2016 |
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2015 |
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% Change |
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2016 |
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2015 |
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% Change |
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Net Sales |
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$ |
80,844 |
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$ |
76,073 |
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6 |
% |
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$ |
322,196 |
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$ |
307,857 |
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5 |
% |
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Operating Income |
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as reported |
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$ |
2,081 |
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$ |
2,193 |
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(5 |
)% |
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$ |
13,956 |
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$ |
7,533 |
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85 |
% |
Severance costs (income) |
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68 |
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421 |
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(84 |
)% |
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469 |
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1,083 |
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(57 |
)% |
Self-insured death benefit |
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-- |
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-- |
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n/m |
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-- |
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1,000 |
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n/m |
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Loss on sale of assets, net |
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-- |
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-- |
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n/m |
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-- |
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222 |
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n/m |
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Operating Income |
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as adjusted (a) |
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$ |
2,149 |
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$ |
2,614 |
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(18 |
)% |
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$ |
14,425 |
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$ |
9,838 |
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47 |
% |
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Net Income as
reported |
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$ |
1,428 |
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$ |
1,643 |
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(13 |
)% |
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$ |
9,482 |
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$ |
5,151 |
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84 |
% |
Net Income as
adjusted |
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$ |
1,483 |
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$ |
1,912 |
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(22 |
)% |
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$ |
9,800 |
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$ |
6,719 |
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46 |
% |
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Financial
Highlights (continued) |
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(In thousands, except
per |
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Three Months Ended |
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Year Ended |
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share data;
unaudited) |
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June 30 |
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June 30 |
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2016 |
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2015 |
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% Change |
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2016 |
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2015 |
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% Change |
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Earnings per share |
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(diluted) as reported |
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$ |
0.06 |
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$ |
0.07 |
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(14 |
)% |
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$ |
0.37 |
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$ |
0.21 |
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76 |
% |
Earnings per share |
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(diluted) as adjusted |
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$ |
0.06 |
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$ |
0.08 |
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(25 |
)% |
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$ |
0.38 |
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$ |
0.27 |
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41 |
% |
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6/30/16 |
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6/30/15 |
Working
Capital |
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$ |
88,510 |
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$ |
80,813 |
Total
Assets |
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$ |
195,560 |
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$ |
180,690 |
Long-Term
Debt |
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$ |
nil |
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$ |
nil |
Shareholders’
Equity |
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$ |
155,520 |
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$ |
142,952 |
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(a) The Company incurred net pre-tax severance expense (income)
of $68,000 and $421,000, and $469,000 and $1,083,000 in the fourth
quarter and twelve month periods of fiscal 2016 and fiscal 2015,
respectively. The Company sold a manufacturing facility as
well as a subsidiary in the first quarter of fiscal 2015, both of
which netted to a pre-tax net loss of $222,000. Additionally,
the Company recorded a $1,000,000 self-insured death benefit
expense in the third quarter of fiscal 2015 related to the
Company’s former Chairman and Chief Executive Officer. Operating
income, net income, and earnings per share (diluted) before
severance costs, a self-insured death benefit, the sale of assets
and tax effect of the utilization of a long-term capital loss are
Non-GAAP financial measures (see page 4).
Management Comments and Outlook
Dennis W. Wells, Chief Executive Officer and President,
commented, “During the fourth quarter of fiscal 2016, LSI continued
to make strides towards achieving long-term sustained growth.
Revenues during the quarter increased 6%, reflecting initiatives we
previously put into place aimed at muscle-building our sales and
marketing teams. Gross margin was 24.5%, down slightly from
25.0% a year ago. We can do better, and we expect to resume
our recent trend of improving this key metric.
“During fiscal 2016, revenues for the full year increased 5%
year-over-year, the gross margin improved 180 basis points to
26.0%, and net income was up 84%. Looking back at the full
year, I am pleased with the many accomplishments that the LSI team
achieved. We added key senior executives; enhanced our
engineering talent; continued to strengthen our sales and marketing
teams; introduced new LED lighting and control products; and
improved internal processes aimed at reducing costs, increasing
manufacturing efficiency and improving product quality. I am
very pleased to announce that earlier this month we were notified
that all of our lighting factories had received ISO 9001-2015
certification and registration. We also invested $10 million
in capital equipment during the year, which we are confident will
provide a solid ROI to the business going forward. The LSI
Business System, introduced in fiscal year 2015, continued to drive
operating efficiencies, with over 100 Kaizen events taking
place. Our financial position strengthened throughout the
year, with our cash position growing to $33.8 million as of June
30, 2016, compared to $26.4 million a year ago.
“We are entering fiscal 2017 well-positioned to achieve
above-market revenue growth and further improve operating
efficiencies through the use of the LSI Business System, all while
maintaining a strong balance sheet with an eye towards increasing
cash dividends. Our backlog is healthy and our quotation
pipeline remains strong. We have the right team in place, and
our products offer a compelling solution to customers. The
strategy of Lighting + Graphics + Technology = Image is continuing
to gain traction among key customers in our petroleum and other key
markets. Major initiatives underway during fiscal 2017
include the ongoing pursuit of operating efficiencies; facility
consolidation; and investments in Digital Signage and Smart
Lighting. Further, we believe that the Company is now
well-positioned to pursue external growth opportunities. We
have developed a disciplined acquisition strategy which we look
forward to implementing.
“As I have previously mentioned, my overall mission remains that
of developing shareholder value through higher sales, earnings, and
cash dividends as LSI moves forward. I look forward to
reporting the results of fiscal 2017 as the year unfolds.”
Fourth Quarter Fiscal 2016 Results
Net sales in the fourth quarter of fiscal 2016 were $80,844,000,
an increase of 6% as compared to last year’s fourth quarter net
sales of $76,073,000. Lighting Segment net sales increased
6.0% to $58,882,000, Graphics Segment net sales increased 12.1% to
$17,090,000, and Technology Segment net sales (excluding
significant intersegment net sales) decreased 8.0% to
$4,872,000. After consideration of the Technology Segment’s
intersegment sales in support of LED products manufactured and sold
by the Lighting Segment, this segment’s net sales increased 3.1% in
the fourth quarter as compared to the prior year. In the
fourth quarters of fiscal 2016 and fiscal 2015 the Company recorded
a pre-tax severance cost expense of $68,000 and $421,000,
respectively. The fiscal 2016 fourth quarter net income of
$1,428,000, or $0.06 per share, decreased 13% as compared to the
fiscal 2015 fourth quarter net income of $1,643,000 or $0.07 per
share. Earnings per share represents diluted earnings per
share.
Fiscal 2016 Results
Net sales in fiscal 2016 were $322,196,000, an increase of 5% as
compared to last year’s net sales of $307,857,000. Lighting
Segment net sales increased 3.2% to $226,889,000, Graphics Segment
net sales increased 18.7% to $77,039,000, Technology Segment net
sales (excluding significant intersegment net sales) decreased
20.6% to $18,268,000 and All Other Category net sales decreased to
zero as a result of the sale early in fiscal 2015 of the only
subsidiary reported therein. After consideration of the
Technology Segment’s intersegment sales in support of LED products
manufactured and sold by the Lighting Segment, this segment’s net
sales increased 3.0% in fiscal 2016. The Company recorded
$469,000 and $1,083,000 of pre-tax severance costs in fiscal 2016
and fiscal 2015, respectively. Also in the fiscal 2015 the
Company recorded a $1,000,000 pre-tax self-insured death benefit, a
$343,000 pre-tax gain on the sale of a manufacturing facility in
the Graphics Segment, sold a subsidiary that had been reported in
the All Other Category for $1,928,000 and recorded a pre-tax loss
of $565,000 in Corporate Administrative expenses, and recorded a
$101,000 income tax benefit related to the utilization of a portion
of this long-term capital loss, all with no comparable items in
fiscal 2016. The fiscal 2016 net income of $9,482,000, or
$0.37 per share, increased 84% from fiscal 2015 net income of
$5,151,000, or $0.21 per share. Earnings per share represents
diluted earnings per share.
Balance Sheet
The balance sheet at June 30, 2016 included current assets of
$127.7 million, current liabilities of $39.2 million and working
capital of $88.5 million, which includes cash of $33.8
million. The current ratio was 3.3 to 1. The Company
has shareholders’ equity of $155.5 million, no long-term debt, and
borrowing capacity on its commercial bank facility as of June 30,
2016 of $29.3 million. With continued strong cash flow, a
sound and conservatively capitalized balance sheet, and $30 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 $0.05 per share in connection with the fourth quarter
of fiscal 2016 payable September 7, 2016 to shareholders of record
as of August 29, 2016. The indicated annual cash dividend
rate is $0.20 per share. The Board of Directors has adopted a
policy regarding dividends which indicates that dividends will be
determined by the Board of Directors in its discretion based upon
its evaluation of earnings, cash flow requirements, financial
condition, debt levels, stock repurchases, future business
developments and opportunities, and other factors deemed
relevant.
Non-GAAP Financial Measures
This press release includes adjustments to GAAP net income and
earnings per share for the three and twelve month periods ended
June 30, 2016 and June 30, 2015. Adjusted net income and
earnings per share, which exclude the impact of severance costs, a
self-insured death benefit, the sale of a manufacturing facility,
the sale of a subsidiary, and the tax benefit of utilization of a
portion of the related long-term capital loss are non-GAAP
financial measures. 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. 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 these non-GAAP
financial measures to the net income and earnings per share
reported for the periods indicated.
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(in thousands, except per
share data; unaudited) |
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Fourth
Quarter |
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Diluted |
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Diluted |
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FY 2016 |
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EPS |
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FY 2015 |
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EPS |
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Reconciliation of net
income to |
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adjusted net income: |
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Net income and earnings |
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per share as reported |
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$ |
1,428 |
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$ |
0.06 |
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$ |
1,643 |
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$ |
0.07 |
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Adjustment for net severance
costs, |
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inclusive of the income tax
effect |
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55 |
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-- |
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269 |
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0.01 |
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Adjusted net income and earnings
per share |
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$ |
1,483 |
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$ |
0.06 |
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$ |
1,912 |
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$ |
0.08 |
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(in thousands, except per
share data; unaudited) |
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Twelve Month
Period |
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Diluted |
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Diluted |
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FY 2016 |
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EPS |
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FY 2015 |
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EPS |
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Reconciliation of net
income to adjusted net income: |
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Net income and earnings per share
as reported |
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$ |
9,482 |
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$ |
0.37 |
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$ |
5,151 |
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$ |
0.21 |
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Adjustment for severance
costs, |
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inclusive of the income tax
effect |
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318 |
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0.01 |
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691 |
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0.03 |
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Adjustment for self-insured death
benefit |
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expense, inclusive of the income
tax effect |
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-- |
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-- |
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637 |
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0.03 |
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Adjustment for the gain on the |
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sale of a manufacturing
facility, |
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inclusive of the income tax
effect |
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-- |
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-- |
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(224 |
) |
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(0.01 |
) |
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Adjustment for the loss on sale of
a subsidiary |
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-- |
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-- |
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565 |
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0.02 |
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Income tax effect of utilization of
a |
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long-term capital loss |
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-- |
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-- |
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(101 |
) |
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-- |
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Adjusted net income and earnings
per share |
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$ |
9,800 |
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$ |
0.38 |
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$ |
6,719 |
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$ |
0.27 |
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"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,
the results of asset impairment assessments, the Company’s ability
to maintain an effective system of internal control over financial
reporting, our ability to remediate any material weaknesses in our
internal control over financial reporting and any other risk
factors that are identified herein. 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
We are a customer-centric company that positions itself as a
value-added, trusted partner in developing superior image solutions
through our world-class lighting, graphics, and technology
capabilities. Our core strategy of "Lighting + Graphics +
Technology = Complete Image Solutions" differentiates us from our
competitors.
We are committed to advancing solid-state LED technology to make
affordable, high performance, energy-efficient lighting and custom
graphic products that bring value to our customers. We have a
vast offering of innovative solutions for virtually any lighting or
graphics application. In addition, we provide sophisticated
lighting and energy management control solutions to help customers
manage their energy performance. Further, we provide a full
range of design support, engineering, installation and project
management services to our customers.
We are a vertically integrated U.S.-based manufacturer
concentrating on serving customers in North America and Latin
America. Our major markets include commercial / industrial
lighting, petroleum / convenience store and multi-site retail
(including automobile dealerships, restaurants and national retail
accounts). Headquartered in Cincinnati, Ohio, LSI has
facilities in Ohio, California, Kansas, Kentucky, New York, North
Carolina, Oregon, Rhode Island and Texas. The Company’s
common shares are traded on the NASDAQ Global Select Market under
the symbol LYTS.
For further information, contact either Dennis
Wells, Chief Executive Officer and President, 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 |
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|
Twelve Months Ended |
|
(in thousands, except
per |
|
|
June 30 |
|
|
June 30 |
|
share data;
unaudited) |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
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|
|
|
|
|
|
Net sales |
|
$ |
80,844 |
|
$ |
76,073 |
|
$ |
322,196 |
|
$ |
307,857 |
|
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|
Cost of products and
services sold |
|
|
60,997 |
|
|
57,092 |
|
|
238,525 |
|
|
233,408 |
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Gross profit |
|
|
19,847 |
|
|
18,981 |
|
|
83,671 |
|
|
74,449 |
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Selling and administrative
expenses |
|
|
17,766 |
|
|
16,788 |
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|
69,715 |
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|
66,916 |
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Operating income |
|
|
2,081 |
|
|
2,193 |
|
|
13,956 |
|
|
7,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income) expense,
net |
|
|
(21 |
) |
|
2 |
|
|
(48 |
) |
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
2,102 |
|
|
2,191 |
|
|
14,004 |
|
|
7,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
674 |
|
|
548 |
|
|
4,522 |
|
|
2,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
1,428 |
|
$ |
1,643 |
|
$ |
9,482 |
|
$ |
5,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
$ |
0.07 |
|
$ |
0.38 |
|
$ |
0.21 |
|
Diluted |
|
$ |
0.06 |
|
$ |
0.07 |
|
$ |
0.37 |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
25,201 |
|
|
24,571 |
|
|
24,988 |
|
|
24,496 |
|
Diluted |
|
|
25,934 |
|
|
24,969 |
|
|
25,592 |
|
|
24,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
(in thousands,
unaudited) |
|
|
June 30, |
|
|
June 30, |
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
Current Assets |
|
$ |
127,743 |
|
$ |
117,660 |
|
Property, Plant and Equipment,
net |
|
|
47,462 |
|
|
43,188 |
|
Other Assets |
|
|
20,355 |
|
|
19,842 |
|
|
|
$ |
195,560 |
|
$ |
180,690 |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
$ |
39,233 |
|
$ |
36,847 |
|
Long-Term Debt |
|
|
-- |
|
|
-- |
|
Other Long-Term Liabilities |
|
|
807 |
|
|
891 |
|
Shareholders’ Equity |
|
|
155,520 |
|
|
142,952 |
|
|
|
$ |
195,560 |
|
$ |
180,690 |
|
|
|
|
|
|
|
|
|
CONTACT:
DENNIS WELLS 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