NASDAQ$LYTS

LSI Industries Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

LSI Industries achieved improved earnings on lower sales, driven by a transition towards higher-value sales mix.

LSI Industries reported improved earnings in Q2 2020 despite lower sales. Net income increased to $1.7 million, and EPS reached $0.07. The company also generated strong free cash flow of $13.8 million and reduced net debt to $9.2 million.

  • Sales of $82.4 million reflects success in demand-shaping initiatives.
  • EPS of $0.07 vs. $(0.61) prior year; Adjusted EPS of $0.06 vs $0.03 prior year.
  • Net Income of $1.7 million compared to net loss of $(15.8) million last year.
  • Free Cash Flow of $13.8 million.

Headline financials

Total Revenue

$82.4M

Previous: $89.5M-8.0%
EPS (adj)

$0.06

Previous: $0.03+100.0%
Net Debt to Adj. EBITDA

0.7

No prior period
Capital Expenditures

-$764K

Previous: -$931K+17.9%
Free Cash Flow

$979K

Previous: -$16.7M+105.9%
Net Income

$1.74M

Previous: -$15.8M+111.0%
Operating Income

$1.76M

Previous: -$20.3M+108.7%
Gross Profit

$20M

Previous: $19.7M+1.6%
Cash & Equivalents

$1.25M

Previous: $9.56M-86.9%
Total Assets

$187M

Previous: $225M-16.8%
Stock-Based Comp

$199K

Previous: $176K+13.1%

Revenue & EPS history

LSI · Revenue · Quarterly

$82.4M

Q2 2020-8%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

LSI · $53.4M total across 1 segment · Q2 2020

  • Lighting Segment
    $53.4M-16.1%

Forward guidance

LSI Industries is focused on gaining share in select vertical markets and generating profitable growth through accelerating innovation and focused sales efforts.

Tailwinds

  • The company is focused on higher margin applications and solutions.
  • The business continues to generate strong free cash flow from operations.
  • The graphics segment has now reported nine consecutive quarters of year-over-year growth.
  • The company was awarded a four-year contract extension with ChevronTexaco.
  • Recent product launches include: the next generation Alliance high bay; new distribution area light; new controls platform and configuration app for mobile devices; Low Profile recessed troffer with Lutron Wireless Integral fixture control; field selectable Troffers; and Pole retro-fit kits.

Headwinds

  • The company is pivoting away from low margin commodity business.
  • This approach contributed to a near-term decline in total sales.
  • Execution of our change in commercial policy is evident in the Lighting Segment where we elected to exit a supply relationship with a low-margin retail account during the fiscal second quarter.
  • While this unfavorably impacts sales short-term, the improved mix contributed to a 420 basis point improvement in the Lighting Segment gross margin rate in the quarter, resulting in increased adjusted operating income.
  • Advancements in graphics technology and the Company’s improved operating productivity have reduced the quantity of floor space required by the business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+4.0%

Avg return

Earnings day

+4.9%

Avg return

5 days after

+4.2%

Avg return

30 days after

67%

44 / 66 earnings

Positive

+25.8%

Q4 2023

Best reaction

-14.3%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+9.2%+12.5%+12.4%
Q2 2026+14.2%-1.8%-14.8%
Q1 2026-10.0%-17.0%-18.5%
Q3 2025-7.0%-4.0%-1.2%
Q2 2025+25.0%+8.4%-2.6%
Q1 2025+12.1%+14.3%+10.8%
Q4 2024+0.9%-2.8%+3.7%
Q3 2024+1.2%+0.1%+9.5%
Q2 2024+2.4%+1.9%+4.8%
Q1 2024-10.1%-12.3%-10.1%
Q4 2023+25.8%+24.5%+15.0%
Q3 2023+2.3%+6.7%-6.6%
Q2 2023+10.3%+5.2%+11.6%
Q1 2023+15.4%+29.4%+51.8%
Q4 2022+9.9%+11.7%+13.8%
Q3 2022+22.9%+28.2%+15.7%
Q2 2022+22.3%+24.8%+8.3%
Q1 2022-5.5%-4.3%-15.8%
Q4 2021+8.6%+13.8%+5.1%
Q3 2021+5.6%-0.1%-6.2%
Q2 2021+21.5%+17.4%+8.4%
Q1 2021-7.4%-1.4%+11.0%
Q4 2020+6.6%+5.9%+7.9%
Q3 2020+9.1%+15.5%+12.9%
Q2 2020+5.7%+0.8%-8.4%
Q1 2020+6.1%+6.3%+16.7%
Q4 2019+8.6%+8.4%+29.5%
Q3 2019+1.5%+4.9%+9.3%
Q2 2019-12.5%-14.1%-10.6%
Q1 2019+2.9%+0.0%-3.6%
Q4 2018+22.6%+28.3%+17.1%
Q3 2018+5.3%+6.0%+0.0%
Q2 2018+18.3%+21.2%+22.5%
Q1 2018+2.5%+7.1%+4.9%
Q4 2017+6.0%-23.5%-25.5%
Q3 2017-5.1%-6.2%-8.7%
Q2 2017+8.7%+3.3%+10.6%
Q1 2017-14.3%-18.2%-4.1%
Q4 2016-10.7%-10.9%-11.9%
Q3 2016-4.6%
Q2 2016+9.6%
Q1 2016+15.7%
Q4 2015+2.9%
Q3 2015+3.2%
Q2 2015+9.1%
Q1 2015+2.0%
Q4 2014-1.3%
Q3 2014-4.0%
Q2 2014-8.5%
Q1 2014+4.7%
Q4 2013-0.7%
Q3 2013+1.9%
Q2 2013-0.6%
Q1 2013-5.8%
Q4 2009-5.2%
Q4 2008-5.2%
Q4 2010-5.2%
Q4 2012-3.5%
Q3 2011-6.3%
Q3 2012-6.3%
Q2 2011+3.9%
Q2 2012+3.9%
Q4 2011+8.6%
Q1 2011+8.6%
Q1 2012+8.6%
Q3 2010+5.5%

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