NASDAQ$LYTS

LSI Industries Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

LSI Industries experienced significant growth in sales and profitability, driven by strong commercial demand and effective cost management.

LSI Industries reported a strong fiscal second quarter with a 16% increase in net sales to $128.8 million and a 107% increase in net income to $6.4 million. The company's adjusted EBITDA margin reached 10.1%, driven by volume growth, improved pricing, and disciplined cost management. LSI also generated $8.9 million in free cash flow and reduced net debt to $60.1 million.

  • Net sales increased by 16% year-over-year to $128.8 million.
  • Net income rose by 107% year-over-year to $6.4 million, with diluted EPS at $0.22.
  • Adjusted EBITDA increased by 54% year-over-year, reaching $13.0 million with a margin of 10.1%.
  • Free cash flow for the quarter was $8.9 million, contributing to a reduction in net debt to $60.1 million.

Headline financials

Total Revenue

$129M

Previous: $111M+15.9%
EPS (adj)

$0.26

Previous: $0.15+73.3%
Capital Expenditures

-$561K

Previous: -$448K-25.2%
Free Cash Flow

$5.86M

Previous: $2.66M+120.4%
Net Income

$6.42M

Previous: $3.11M+106.7%
Operating Income

$9.04M

Previous: $4.42M+104.4%
Gross Profit

$34.1M

Previous: $25.4M+34.2%
Cash & Equivalents

$2.77M

Previous: $914K+202.5%
Total Assets

$296M

Previous: $303M-2.4%
Stock-Based Comp

$864K

Previous: $1.13M-23.5%

Revenue & EPS history

LSI · Revenue · Quarterly

$129M

Q2 2023+15.9%vs Q2 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

LSI · $129M total across 2 segments · Q2 2023

  • Lighting Segment
    $66.8M+16.6%
  • Display Solutions
    $62M+15.0%

Forward guidance

LSI Industries anticipates continued positive free cash flow generation in the second half of the fiscal year, positioning the company to further reduce debt levels and increase availability under its existing credit facility. Despite ongoing pressures on the general economy, LSI remains optimistic about the second half of the fiscal year and the long-term prospects of its markets.

Tailwinds

  • Continued positive free cash flow generation is expected.
  • Further debt reduction is anticipated.
  • Increased availability under the existing credit facility is expected.
  • Demand levels in key vertical markets remain favorable.
  • Customers increasingly recognize the value of LSI's solutions.

Headwinds

  • Ongoing pressures on the general economy may present challenges.
  • Potential delays and changes to customer installation schedules.
  • Permitting and component availability issues may persist.
  • Unspecified uncertainties may cause actual results to differ materially.
  • No specific negative impacts were detailed other than general economic pressures.

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 2023

Historical avgQ2 2023

+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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