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LSI Industries Reports Fiscal Fourth Quarter 2019 Results and Declares Quarterly Cash Dividend

CINCINNATI, Aug. 22, 2019 (GLOBE NEWSWIRE) — LSI Industries Inc. (NASDAQ:  LYTS, or the “Company”) a leading U.S. based mostly producer of indoor/outside lighting and graphics options, at present announced results for the fiscal fourth quarter 2019.

Fourth Quarter 2019 Summary

  • Gross sales of $81.5 million; EPS $zero.03; EBITDA $2.2 million; Adjusted EBITDA $3.three million
  • Order price mid-single digits above final yr; elevated backlog
  • Free Cash Circulate $4.Eight million; Debt reduction of $4.three million, internet leverage ratio 2.7x
  • New Windsor, NY manufacturing transfer full; value savings beginning fiscal Q2
  • New Windsor, NY constructing sale/closing expected in September; proceeds to be $12 million

Internet gross sales have been $81.5 million in the fiscal fourth quarter 2019, a decrease of two% in comparison with $83.4 million within the fourth quarter 2018.  Reported internet revenue was $zero.9 million, or $0.03 per diluted share, versus a lack of $(2.7 million), or $(zero.10) per diluted share, within the fourth quarter 2018.  Reported fiscal fourth quarter 2019 outcomes embrace pre-tax restructuring costs and a positive tax adjustment that resulted in a internet favorable influence of $zero.03 per share in the period.  The tax adjustment relates to the pending sale of the New Windsor facility. 

Adjusted EBITDA was $3.three million in fiscal fourth quarter 2019, versus $3.6 million in the same interval of 2018.  Free cash move for the quarter was $4.8 million, reflecting continued emphasis on stability sheet management.  Cash stream generated within the quarter served to scale back excellent debt by $Four.3 million.  Reconciliation of our GAAP and non-GAAP monetary results is included later in this launch. 

Earlier in August, 2019, the Company secured remaining approval from the city of New Windsor, NY for the sale of its manufacturing facility.  The Firm presently anticipates the formal sale of the property to be accomplished on or before September 30, 2019 for about $12 million, in step with prior estimates. 

The Company declared a daily money dividend of $zero.05 per share payable September 12, 2019 to shareholders of document on September three, 2019.

Administration Commentary

James A. Clark, President and Chief Government Officer commented, “Our fourth quarter displays the preliminary impression of our restructuring which began last yr. Sales and Adjusted EBITDA efficiency represents a stair-step enchancment from the third quarter, though slightly under prior yr.  Our sales performance versus prior yr was the perfect in 5 quarters; finishing the New Windsor production switch improves capability utilization and generates an annual value savings; and our new product pipeline is creating, with several key launches scheduled over the subsequent several quarters.  We generated robust free money movement in the fourth quarter that resulted in further debt discount, reflecting our ongoing dedication to disciplined stability sheet management.  We completed the fiscal yr with complete debt under $40 million, and proceeds from the sale of the New Windsor facility will provide liquidity to further scale back our debt from current ranges in addition to spend money on the business. 

“Our gross sales group has embraced the give attention to larger value, performance-based market purposes.  They’re aggressively driving this plan in collaboration to end-users with our sales company partners.   Our fourth quarter order ebook increased on a mid-single digit basis when compared to prior yr, with bookings reflecting an enhancing mix, and worth realization resulting from the Might worth improve announcement.  Our sales group remains a excessive priority, and we’re committed to increasing and strengthening our promoting capabilities.  

“Our shift toward higher-end applications is also driving a more focused product development roadmap,” said Clark.  “We’ve got a number of key new merchandise scheduled for release within the first half of calendar 2020, and I’m inspired by the elevated emphasis on defining market necessities, and the efforts to scale back our velocity to market.  This strategy can also be allowing us to objectively evaluate and handle certain purposes and merchandise that aren’t performing to expectations.  We’ve added several key assets to the product management perform which can speed up our product roadmap plans. 

“In addition to creating a more targeted gross sales and product improvement strategy, we proceed to drive actions in our operations and supply chain to enhance asset utilization and scale back prices.  The transfer of manufacturing operations from our New Windsor facility to present amenities in Ohio and Kentucky was completed through the fiscal fourth quarter, and all new strains are projected to be working at pre-transfer ranges by the top of September 2019.  In addition, several structural enhancements to our provide chain have been carried out, generating decrease stock levels and improved vendor lead-times. 

“We are committed to disciplined stability sheet administration, as evidenced by our continued concentrate on debt reduction.  Wanting ahead, our capital allocation priorities embrace debt reduction, investment in high-impact initiatives that help our ongoing business transformation and continued cost of our quarterly cash dividend.

“While fiscal year 2019 was a period of significant change and disruption for our business, we are motivated by evidence of multiple progress points that validate the actions we have taken thus far,” concluded Clark.  “Entering fiscal year 2020, significant work remains ahead of us, however, we are encouraged that momentum has begun to build, supported by a team committed to achieving consistent, balanced results across our key market verticals and product segments.”

CONFERENCE CALL

A conference call might be held at the moment at 11:00 A.M. ET to evaluation the Firm’s financial results, talk about current events and conduct a question-and-answer session.  A webcast of the conference call and accompanying presentation supplies will probably be out there within the Investor Relations section of LSI Industries’ web site at www.lsi-industries.com.  People may also participate by teleconference dial-in.  To take heed to a stay broadcast, go to the location no less than 15 minutes prior to the scheduled begin time so as to register, download, and install any mandatory audio software.

Details of the conference name are as follows:

Call Dial-In: (844) 400-1698
Conference ID: 1091289

To take heed to a replay of the teleconference by way of webcast, please visit the Investor Relations part of LSI Industries’ website at www.lsi-industries.com.

ABOUT LSI INDUSTRIES

LSI Industries Inc. is a U.S.-based producer of lighting, graphics and know-how solutions for each indoor and outside purposes.  We’re a number one solutions provider to the primary end-markets we serve, including petroleum, automotive, fast serve restaurants, grocery, banking, retail, renovation, parking and warehousing.  Our products are marketed throughout North America by way of a community of unbiased gross sales representatives and distributors, as well as by means of national accounts.  We companion with our clients to offer a full range of design help, engineering, set up and challenge management providers.  Headquartered in Blue Ash, Ohio, LSI presently employs over 1,200 staff and operates seven amenities throughout america. 

FORWARD-LOOKING STATEMENTS

Ahead-looking statements may be recognized by phrases resembling “estimates,” “anticipates,” “encourage,” “projects,” “plans,” “expects,” “can,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” or the unfavorable versions of these phrases and comparable expressions and by the context by which they are used.  For details on the uncertainties which will trigger our precise results to be materially totally different than these expressed in our forward-looking statements, go to http://www.lsi-industries.com/fls as well as our Annual Reports on Type 10-Okay and Quarterly Reports on Type 10-Q which include danger elements. 

INVESTOR CONTACT

Noel Ryan, IRC
720.778.2415
lyts@vallumadvisors.com

Financial Highlights
 
Three Months Ended
June 30
      Twelve Months Ended
June 30
  (Unaudited)  
  2019       2018     % Change   (In hundreds, besides per share knowledge)     2019       2018     % Change
$    81,522     $    83,409     -2%   Internet Sales   $    328,852     $    342,023     -4%
                         
    (280 )       (2,128 )   n/m   Working (Loss) as reported       (19,890 )       (21,652 )   n/m
                         
   —         —            Goodwill impairment       20,165         28,000      
    1,082        —            Restructuring and plant closure costs       three,073        —       
    26         37           Severance prices       560         128      
   —          three,136           Transition and re-alignment costs       120         3,136      
                         
$    828     $    1,045     -21%   Operating Revenue as adjusted   $    4,zero28     $    9,612     -58%
                         
$    862     $    (2,664 )   n/m   Internet Revenue (Loss) as reported   $    (16,339 )   $    (19,541 )   n/m
                         
$    77     $    487     -84%   Internet Revenue as adjusted   $    985     $    5,714     -83%
                         
$    0.03     $    (0.10 )   n/m   Revenue (Loss) per share (diluted) as reported   $    (0.63 )   $    (zero.76 )   n/m
                         
$    zero.00     $    0.02     -100%   Earnings per share (diluted) as adjusted   $    zero.04     $    zero.22     82%

 

    (quantities in hundreds)
    6/30/19   6/30/18
Working Capital   $    71,105   $    67,882
Complete Belongings   $    201,100   $    229,517
Lengthy-Time period Debt   $    39,541   $    45,360
Shareholders’ Fairness   $    119,937   $    139,251

Fourth Quarter Fiscal 2019 Results

Internet gross sales in the fourth quarter of fiscal 2019 have been $81,522,000, down 2% from final yr’s fourth quarter internet gross sales of $83,409,000.  Lighting Phase internet gross sales of $57,243,000 decreased 7% whereas Graphics Phase internet sales of $24,279,000 increased 11% from final yr’s fourth quarter internet sales. The Company recorded pre-tax restructuring and plant closure prices of $1,082,000 associated to the closure of its New Windsor, New York facility in the Lighting Phase and $26,000 of severance costs. The fiscal 2019 fourth quarter internet revenue of $862,000, or $zero.03 per share, compares to fiscal 2018 fourth quarter internet lack of $(2,664,000) or $(zero.10) per share.  Earnings per share represents diluted earnings per share.

Fiscal 2019 Results

Internet sales in fiscal 2019 have been $328,852,000, down 4% from fiscal 2018 internet sales of $342,023,000.  Lighting Phase internet gross sales of $235,114,000 decreased 10% whereas Graphics Phase internet sales of $93,738,000 elevated 15% from fiscal 2018 internet sales. The Firm recorded pre-tax restructuring and plant closure costs of $3,073,000 related to the closure of its New Windsor, New York and Hawthorne, California amenities within the Lighting Phase and recorded a pre-tax goodwill impairment additionally within the Lighting Phase of $20,165,000. The Company additionally recorded $560,000 of severance costs and recorded a further $120,000 of transition and re-alignment prices. The fiscal 2019 internet loss of $(16,339,000), or $(0.63) per share, compares to the fiscal 2018 internet loss of $(19,541,000) or $(0.76) per share.  Earnings per share represents diluted earnings per share.

Stability Sheet

The stability sheet at June 30, 2019 included current belongings of $111.0 million, current liabilities of $39.9 million and working capital of $71.1 million, which incorporates money of $1.zero million together with an asset held on the market of $7.5 million.  When the asset held for sale is faraway from working capital, the present ratio was 2.59 to 1 which presents a extra consultant comparability to earlier durations. The stability sheet also included shareholders’ equity of $119.9 million and $39.5 million of long-term debt. It is the Firm’s priority to constantly generate adequate money movement coupled with an accepted credit facility to adequately fund operations.

Cash Dividend Actions

The Board of Administrators declared a daily quarterly cash dividend of $0.05 per share in reference to the fourth quarter of fiscal 2019 payable September 12, 2019 to shareholders of document as of the shut of business on September 3, 2019.  The indicated annual cash dividend fee is $0.20 per share. The Board of Administrators has adopted a policy relating to dividends which offers that dividends might be decided by the Board of Administrators in its discretion based mostly upon its analysis of earnings each on a GAAP and non-GAAP basis, cash stream requirements, monetary condition, debt ranges, inventory repurchases, future business developments and alternatives, and different elements deemed relevant by the Board.

Non-GAAP Monetary Measures

This press release consists of changes to GAAP working revenue, internet revenue and earnings per share for the three and twelve months ended June 30, 2019 and 2018.  Operating revenue, internet revenue and earnings per share, which exclude the impression of goodwill impairment, severance costs, the tax impression from the discount of deferred tax belongings, the tax impression from the anticipated sales of the New Windsor, New York Belongings, transition and re-alignment costs, and restructuring, and plant closure costs, are non-GAAP financial measures.  We exclude these non-recurring gadgets as a result of they don’t seem to be representative of the continued outcomes of operations of our enterprise.  Also included on this press release are non-GAAP monetary measures including Earnings earlier than Interest, Taxes, Depreciation and Amortization (EBITDA and Adjusted EBITDA) and Free Cash Circulate. We consider that these are helpful as supplemental measures in assessing the operating performance of our enterprise.  These measures are utilized by our administration, together with our chief operating determination maker, to guage enterprise outcomes, and are ceaselessly referenced by those who comply with the Firm.  Under is a reconciliation of those non-GAAP financial measures to the web revenue and earnings per share reported for the durations indicated along with the calculation of EBIDTA, Adjusted EBITDA and Free Cash Circulate.

FOURTH QUARTER       YEAR-TO-DATE
  2019         2018       (In hundreds, besides per share knowledge)     2019         2018    
  Diluted
EPS
     Diluted
EPS 
        Diluted
EPS
    Diluted
EPS
        Reconciliation of internet revenue to adjusted internet revenue        
$    862   $    zero.03     $   (2,664 ) $    (zero.10 )   Internet Revenue (Loss) as reported   $    (16,339 ) $    (0.63 )   $    (19,541 ) $    (0.76 )
                         
    (36 )    —             —      Goodwill impairment       15,325       zero.59         17,361       0.67  
                         
    1,025       zero.04            —      Restructuring and plant closure prices       2,410       zero.09            —   
                         
    54      —          27      —      Severance costs       426       0.02         92      —   
                         
    (three )    —          2,261   $    0.09      Transition and re-alignment costs     91      —          2,261   $    zero.09  
                         
            Tax impression from the anticipated sale of New
Windsor Belongings 
           
    (1,825 )     (0.07 )          —            (928 )     (zero.04 )          —   
                         
            Tax Influence from the reduction of the Deferred
Tax Belongings
           
   —       —          863       zero.03          —       —          5,541       0.22  
                         
$    77   $    0.00     $    487   $    zero.02     Internet Revenue adjusted   $    985   $    zero.04     $    5,714   $    zero.22  
      NOTE: All changes are internet of tax apart from the adjustment of the deferred tax belongings and
the Tax influence from the anticipated sale of the New Windsor Belongings
     
     

 

  Three Months Ended
June 30   (Unaudited; In hundreds)   Twelve Months Ended
June 30       EBITDA         2019       2018     % Change       2019       2018     % Change     $    (280 )   $    (2,128 )   -87%   Working Revenue as reported   $    (19,890 )   $    (21,652 )   -8%                 2,434         2,582         Depreciation and Amortization       10,221         10,222           $    2,154     $    454     n/m   EBITDA   $    (9,669 )   $    (11,430 )   -15.4%                                   Three Months Ended
June 30   (Unaudited; In hundreds)   Twelve Months Ended
June 30       Adjusted EBITDA         2019       2018     % Change       2019       2018     % Change     $    828     $    1,zero45     -21%   Working Revenue as adjusted   $    Four,zero28     $    9,612     -58%                 2,434         2,582         Depreciation and Amortization       10,221         10,222           $    3,262     $    3,627     -10.1%   Adjusted EBITDA   $    14,249     $    19,834     -28.2%                                                                             Three Months Ended
June 30   (Unaudited; In hundreds)   Twelve Months Ended
June 30       Free Cash Stream         2019       2018     % Change       2019       2018     % Change     $    5,106     $    3,611     41%   Cash Stream From Operations   $    11,491     $    11,500     n/m                 (270 )       (1,228 )       Capital Expenditures       (2,618 )       (3,406 )         $    Four,836     $    2,383     102.9%   Free Cash Move   $    Eight,873     $    Eight,094     9.6%  

Condensed Consolidated Statements of Operations

Three Months Ended
June 30   Twelve Months Ended
June 30 (Unaudited)   2019       2018     (In hundreds, besides per share knowledge)   2019       2018   $    81,522     $    83,409     Internet Sales $    328,852     $    342,023                       63,414         63,103     Value of Merchandise Bought     253,621         252,789      —         —      Severance Prices     77        —        649        —      Restructuring Prices     1,441        —                        17,459         20,306     Gross Revenue     73,713         89,234                       17,480         19,298     Selling and Administrative Costs     72,470         79,750      —         —      Goodwill Impairment     20,165         28,000       26        —      Severance Prices     483        —        233        —      Restructuring Prices     365        —       —          3,136       Transition and re-alignment costs     120         three,136                       (280 )       (2,128 )    Operating (Loss)      (19,890 )       (21,652 )                     (45 )      —      Different (Revenue) Expense     138        —        528         460      Curiosity Expense      2,240         1,680                       (763 )       (2,588 )    (Loss) Before Taxes      (22,268 )       (23,332 )                     (1,625 )       76      Revenue (Benefit) Tax      (5,929 )       (3,791 )                 $    862     $    (2,664 )   Internet Revenue (Loss) $    (16,339 )   $    (19,541 )         Weighted Common Widespread Shares Excellent           26,187         25,959     Primary      26,109         25,866       26,219         25,959     Diluted     26,109         25,866                 Revenue (Loss) Per Share   $    zero.03     $    (zero.10 )   Primary  $    (zero.63 )   $    (0.76 ) $    zero.03     $    (zero.10 )   Diluted $    (0.63 )   $    (0.76 )

 

    (quantities in hundreds)
    6/30/19   6/30/18
Current Belongings (Much less Belongings Held for Sale)   $    103,468   $    110,081
Belongings Held for Sale       7,512      — 
Property, Plant and Gear, internet       31,976       43,703
Different Belongings       58,144       75,733
Complete Belongings   $    201,100   $    229,517
 
Present Liabilities   $    39,875   $    42,199
Lengthy-Term Debt       39,541       45,360
Different Long-Term Liabilities       1,747       2,707
Shareholders’ Equity       119,937       139,251
    $    201,100   $    229,517

 

 

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