On August 15, 2024, LSI Industries Inc (LYTS, Financial) released its 8-K filing detailing the financial results for its fiscal 2024 fourth quarter and full year ended June 30, 2024. LSI Industries Inc provides corporate visual image solutions to the petroleum and convenience store industry, with operating segments including Lighting and Display Solutions. The company generates maximum revenue from the Lighting segment, which manufactures and markets outdoor and indoor lighting and lighting controls for various markets.
Fourth Quarter Performance
LSI Industries Inc reported net sales of $129.0 million for the fourth quarter, surpassing the analyst estimate of $126.99 million. This includes $18.1 million from the recent acquisition of EMI Industries. Excluding EMI, sales declined due to lower demand in the grocery vertical, primarily influenced by a proposed merger of two large industry participants.
Fourth quarter net income was $5.7 million, or $0.19 per diluted share, aligning with the analyst estimate of $0.19 per share. Adjusted net income was $7.3 million, or $0.24 per diluted share, and Adjusted EBITDA was $14.0 million, representing 10.9% of net sales.
Full-Year Fiscal 2024 Results
For the full fiscal year, LSI Industries Inc reported net sales of $469.6 million, slightly above the analyst estimate of $467.64 million. The company achieved an adjusted diluted earnings per share of $0.95, exceeding the annual estimate of $0.83. Adjusted EBITDA for the year was $51.4 million, maintaining a margin rate of 11.0%, which is 60 basis points higher than the prior year.
Full-year free cash flow was $38.0 million, enabling the company to reinvest in both organic and inorganic growth initiatives. The company exits fiscal 2024 with a healthy balance sheet, including a net leverage ratio of 1.0x and approximately $50 million of cash and availability under its existing credit facility.
Management Commentary
"The fiscal fourth quarter concludes a pivotal year for our business, as we continued to expand our vertical market capabilities, including the acquisition of EMI Industries," stated James A. Clark, President, and CEO of LSI. "Executing on our multi-year value-creation strategy, we have continued to develop leading positions across growing industry verticals, strengthened relationships across key partners and channels, and further improved our quality of earnings."
Financial Highlights
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $129.0M | $123.6M | $469.6M | $497.0M |
| Net Income | $5.7M | $8.4M | $25.0M | $25.8M |
| Adjusted EPS | $0.24 | $0.30 | $0.95 | $0.99 |
| Adjusted EBITDA | $14.0M | $11.7M | $51.4M | $42.0M |
Analysis and Outlook
LSI Industries Inc's performance in fiscal 2024 demonstrates its ability to navigate market fluctuations and maintain strong financial health. The acquisition of EMI Industries has bolstered its integrated display solutions offering, contributing to the company's revenue and adjusted earnings per share. The company's focus on quality of earnings and operational discipline has resulted in appreciable margin rate expansion.
Looking ahead, LSI Industries Inc is well-positioned to continue its growth trajectory in fiscal 2025. The company expects growth to resume within the grocery vertical and has a strong backlog in the refueling/c-store market. The recent acquisition of EMI is anticipated to provide significant commercial synergy potential, further enhancing the company's market position.
For more detailed insights and financial data, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from LSI Industries Inc for further details.
