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Dec 31, 2023
LSI Q2 2024 Earnings Report
LSI Industries reported solid second quarter results, driven by durability of vertical market strategy and sustained margin expansion.
Key Takeaways
LSI Industries reported net income of $5.9 million, or $0.20 per diluted share, on sales of $109.0 million in the second quarter. Adjusted gross profit margin increased 240 basis points to 29.0% over the prior-year period. The Company reported Adjusted EBITDA of $11.1 million for the quarter, delivering an Adjusted EBITDA margin rate of 10.1%.
Net Sales of $109.0 million.
Net Income of $5.9 million, or $0.20 per diluted share.
Adjusted Net Income of $6.4 million, or $0.21 per diluted share.
Free Cash Flow of $7.3 million.
LSI
LSI
LSI Revenue by Segment
Revenue by Segment
Lighting Segment Revenue
CapyFin.comDisplay Solutions Revenue
CapyFin.com Forward Guidance
LSI is well-positioned to capitalize on an expected acceleration in project activity as market conditions normalize and expects overall grocery demand to begin increasing in the fiscal third quarter and accelerate throughout the fiscal fourth quarter and into fiscal 2025.
Positive Outlook
- Strong multi-year demand outlook within key verticals, particularly c-store and grocery verticals.
- Nation’s largest c-store chain committed to growing its sale of fresh food and proprietary beverages.
- Second largest c-store chain has announced plans to increase fresh food revenue by a compounded annual growth rate of 10% over the next five years.
- Completed the relocation to new, larger display case manufacturing facility.
- Received final regulatory approval on new refrigerated display case line which utilizes the environmentally friendly R-290 technology.
Challenges Ahead
- Pending FTC approval of the proposed merger of the second and third-largest grocery chains in the United States has led to a temporary slowing of project activity within grocery vertical.
- Second quarter performance was unfavorably impacted by the delay in grocery vertical spending within Display Solutions segment.
- Consolidated second quarter sales were 3% below strong prior year levels due to decrease in Display Solutions segment sales.
- Lighting Segment net sales decreased 3%.
- Display Solutions Segment net sales decreased 29%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income