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Sep 30, 2022
LSI Q1 2023 Earnings Report
LSI Industries reported strong Q1 2023 results with significant growth in net sales and profitability.
Key Takeaways
LSI Industries reported a strong first quarter with a 19% increase in net sales to $127.1 million and a 100% increase in net income to $6.3 million. Adjusted EBITDA increased by 76% to $13.3 million, representing 10.5% of sales. The company also generated $10.1 million in free cash flow and reduced net debt leverage to 1.7x.
Net sales increased by 19% year-over-year to $127.1 million.
Net income doubled to $6.3 million, with diluted EPS of $0.22.
Adjusted EBITDA grew by 76% year-over-year to $13.3 million, representing 10.5% of sales.
Free cash flow was $10.1 million, driven by growth in operating cash flow and improved working capital management.
LSI
LSI
LSI Revenue by Segment
Revenue by Segment
Lighting Segment Revenue
CapyFin.comDisplay Solutions Revenue
CapyFin.com Forward Guidance
LSI enters the fiscal second quarter with continued momentum and is well-positioned to build on the success of the last two years. They continue to win additional business in both new and existing market verticals as evidenced by a growing backlog of activity. Relationships with their partners and customers have never been stronger, as they increasingly recognize the value of our solutions and our on-going commitment to satisfy their unique requirements.
Positive Outlook
- Continued momentum entering the fiscal second quarter.
- Well-positioned to build on the success of the last two years.
- Winning additional business in both new and existing market verticals.
- Growing backlog of activity.
- Stronger relationships with partners and customers.
Challenges Ahead
- Shipments of digital menu board systems to quick-serve restaurant (QSR) customers were delayed due to site installation scheduling changes and temporary component availability issues.
- Total Display Solution sales were constrained during the first quarter
- Site scheduling and component supply chain challenges for the last eighteen months
- Temporary component availability issues
- Widely recognized inflationary headwinds