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Dec 31, 2022
LSI Q2 2023 Earnings Report
LSI Industries experienced significant growth in sales and profitability, driven by strong commercial demand and effective cost management.
Key Takeaways
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.
LSI
LSI
LSI Revenue by Segment
Revenue by Segment
Lighting Segment Revenue
CapyFin.comDisplay Solutions Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income