LSI Industries Inc. (Nasdaq:LYTS)
today:
- reported first quarter net sales of $65,495,000, a decrease of
18% as compared to $79,851,000 in the same period of the prior
fiscal year;
- reported first quarter net income of $1,324,000 or $0.05 per
share, as compared to net income of $4,268,000 or $0.18 per share
for the same period of the prior fiscal year; and
- declared a regular quarterly cash dividend of $0.06 per share
payable November 15, 2011 to shareholders of record November 8,
2011.
Financial Highlights |
|
|
|
(In thousands, except per |
Three Months
Ended |
share data; unaudited) |
September 30 |
|
2011 |
2010 |
% Change |
|
|
|
|
Net Sales |
$65,495 |
$79,851 |
(18)% |
|
|
|
|
Operating Income |
$2,178 |
$6,622 |
(67)% |
|
|
|
|
Net Income |
$1,324 |
$4,268 |
(69)% |
|
|
|
|
Earnings Per Share (diluted) |
$0.05 |
$0.18 |
(72)% |
|
|
|
|
|
9/30/11 |
6/30/11 |
|
Working Capital |
$85,079 |
$84,524 |
|
Total Assets |
$173,943 |
$176,021 |
|
Long-Term Debt |
$ -- |
$1,064 |
|
Shareholders' Equity |
$151,402 |
$151,218 |
|
First Quarter Fiscal 2012 Results
Net sales in the first quarter of fiscal 2012 were $65,495,000,
a decrease of 18% as compared to first quarter fiscal 2011 net
sales of $79,851,000. Lighting Segment net sales increased 1%
to $49,171,000 with sales to national accounts and niche markets
decreasing 1%, sales to the Commercial / Industrial lighting market
increasing 3%, sales related to LED video screens decreasing 80%,
and lighting sales to the international markets increasing
47%. In the other reportable business segments, Graphics
Segment net sales decreased 58% to $10,488,000, Electronic
Components Segment net sales decreased 4% to $4,404,000 and net
sales of the All Other Category decreased 17% to $1,432,000. A
7-Eleven program in fiscal 2011 to install LED lighting and signage
throughout its retail store system accounted for $19.5 million of
net sales in the first quarter last year. This program was
completed in the second quarter of fiscal 2011. Net sales to
7-Eleven in the first quarter of fiscal 2012 were significantly
less than the prior year, particularly in the Graphics
Segment. The fiscal 2012 first quarter net income of
$1,324,000, or $0.05 per share, compares to fiscal 2011 first
quarter net income of $4,268,000 or $0.18 per share. In the
first quarter of fiscal 2012, the Company recorded a pre-tax
non-cash goodwill impairment expense of $(258,000), but had no
corresponding expense in the first quarter of fiscal
2011. Earnings per share represents diluted earnings per
share.
Balance Sheet
The balance sheet at September 30, 2011 included current assets
of $105.5 million, current liabilities of $20.4 million and working
capital of $85.1 million. The current ratio was 5.17 to
1. The Company has shareholders' equity of $151.4 million, no
long-term debt, and has borrowing capacity on its commercial bank
facilities as of September 30, 2011 of $35 million. With
continued strong cash flow, a sound and conservatively capitalized
balance sheet, and $35 million in credit facilities, LSI Industries
believes its financial condition is sound and capable of supporting
the Company's planned growth, including acquisitions.
Cash Dividend Actions
The Board of Directors declared a regular quarterly cash
dividend of $0.06 per share payable November 15, 2011 to
shareholders of record as of November 8, 2011. The indicated
annual cash dividend rate for fiscal 2012 is $0.24 per
share. LSI Industries has paid regular cash dividends since
1989. The declaration and amount of any cash and stock
dividends will be determined by the Board of Directors in its
discretion based upon its evaluation of earnings, cash flow
requirements and future business developments and opportunities,
including acquisitions.
Company Comments
Robert J. Ready, Chief Executive Officer, commented, "Overall
our fiscal 2012 first quarter sales were weak as we worked to
replace higher project sales from the 7-Eleven program during the
same period of the prior fiscal year and continued to struggle with
a difficult environment in the graphics market. On the
lighting side, we are very pleased to report that growth in LED
lighting products was very strong, and made up for much of the
7-Eleven business that was completed last year. Additionally,
Lighting Segment sales to all end markets in the international
market grew 47% (to $3.1 million) over first quarter sales of
fiscal 2011, a strong indication that our product offering and
growth strategies are very viable. Our LED-based lighting
products continue to be well received as we invest in this
solid-state technology and continue to introduce new
products. I am pleased to report that we recently shipped two
high profile digital video orders in the first quarter. LSI
was chosen to update the main video displays and provide end zone
LED digital signage for the U.S. Bank Arena, a multi-function
17,500 seat arena located in Cincinnati. Separately, LSI has
designed the high definition LED canvas for the Yamaha piano used
in Elton John's "Million Dollar Piano" show at Caesar's Palace in
Las Vegas. This cutting edge piano uses a high resolution LED
video screen and transparent custom-shaped acrylic prisms to create
a dynamic visual display.
"We have taken additional cost-reducing actions to cope with
weak market conditions in our graphics business. Recent
product price increases in our lighting business have generally
offset higher raw materials and other costs. We believe we are
efficient and cost competitive as an American-made
manufacturer. The markets we serve continue to be cautious
about making commitments to large scale projects, we think probably
due to concerns about the strength of the domestic economy. We
are maintaining market share in our niche markets and gaining
ground in the broad Commercial / Industrial lighting
market. As has been demonstrated in recent quarterly results,
favorable operating leverage and higher sales produce much higher
earnings on a percentage basis.
"We continue to broaden our product lines while, at the same
time, are looking to reduce manufacturing and other
costs. From a positioning standpoint, we are right-sized to
weather the difficult current market conditions and ready to serve
future growth. We have a number of exciting initiatives
underway to stimulate sales, including broadening our sales reach
to new geographic markets.
"LSI's balance sheet remains strong and unlevered and cash flow
is comfortable to cover working capital and cash dividends.
"We look forward to reporting the results of our many sales
initiatives in the future."
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995
This document contains certain forward-looking statements that
are subject to numerous assumptions, risks or
uncertainties. The Private Securities Litigation Reform Act of
1995 provides a safe harbor for forward-looking
statements. Forward-looking statements may be identified by
words such as "estimates," "anticipates," "projects," "plans,"
"expects," "intends," "believes," "seeks," "may," "will," "should"
or the negative versions of those words and similar expressions,
and by the context in which they are used. Such statements,
whether expressed or implied, are based upon current expectations
of the Company and speak only as of the date made. Actual
results could differ materially from those contained in or implied
by such forward-looking statements as a result of a variety of
risks and uncertainties over which the Company may have no
control. These risks and uncertainties include, but are not
limited to, the impact of competitive products and services,
product demand and market acceptance risks, potential costs
associated with litigation and regulatory compliance, reliance on
key customers, financial difficulties experienced by customers, the
cyclical and seasonal nature of our business, the adequacy of
reserves and allowances for doubtful accounts, fluctuations in
operating results or costs whether as a result of uncertainties
inherent in tax and accounting matters or otherwise, unexpected
difficulties in integrating acquired businesses, the ability to
retain key employees of acquired businesses, unfavorable economic
and market conditions, and the results of asset impairment
assessments. You are cautioned to not place undue reliance on
these forward-looking statements. In addition to the factors
described in this paragraph, the risk factors identified in our
Form 10-K and other filings the Company may make with the SEC
constitute risks and uncertainties that may affect the financial
performance of the Company and are incorporated herein by
reference. The Company does not undertake and hereby disclaims
any duty to update any forward-looking statements to reflect
subsequent events or circumstances.
About the Company
Leadership. Strength. Innovation. Those are the
key values behind the smart vision upon which LSI Industries Inc.
was founded when established in 1976. Today LSI demonstrates
this in our dedication to advancing technology throughout all
aspects of our business. We are a vertically integrated
manufacturer who combines integrated technology, design and
manufacturing to produce the most efficient, high quality products
in all of our facilities across the United States.
We are committed to advancing solid-state technology to produce
affordable, high performance, energy efficient lighting and custom
graphic products that bring value to our customers. We have a
vast offering of innovative solutions for virtually any lighting or
graphics application. Further, we can provide design support,
engineering, installation and project management for custom
graphics rollout programs for today's retail environment.
LSI is a U.S. manufacturer with marketing / sales efforts
throughout the world with concentration currently on North America,
Latin America, Australia, New Zealand, Asia, Europe and the Middle
East. Our major markets include the commercial / industrial
lighting, petroleum / convenience store, multi-site retail
(including automobile dealerships, restaurants and national retail
accounts), sports and entertainment markets. Headquartered in
Cincinnati, Ohio, LSI has facilities in Ohio, New York, North
Carolina, Kansas, Kentucky, Rhode Island, Texas and Montreal,
Canada. The Company's common shares are traded on the NASDAQ
Global Select Market under the symbol LYTS.
The LSI Industries Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3646
For further information, contact either Bob
Ready, Chief Executive Officer, or Ron Stowell, Vice President,
Chief Financial Officer, and Treasurer at (513) 793-3200.
Additional note: Today's news
release, along with past releases from LSI Industries, is available
on the Company's internet site at www.lsi-industries.com or by
email or fax, by calling the Investor Relations Department at (513)
793-3200. More information on LSI's quarterly earnings,
including additional financial analysis and an earnings overview
presentation, will also be available at this site after the
Investor Call to be held at 3:00 p.m. Eastern Time today.
Condensed Consolidated Income
Statements |
|
|
|
|
|
|
Three Months Ended |
(in thousands, except
per |
September 30 |
share data; unaudited) |
2011 |
2010 |
|
|
|
Net sales |
$65,495 |
$79,851 |
|
|
|
Cost of products and services sold |
50,031 |
59,229 |
|
|
|
Gross profit |
15,464 |
20,622 |
|
|
|
Selling and administrative expenses |
13,028 |
14,000 |
|
|
|
Goodwill or intangible asset impairment |
258 |
-- |
Operating income |
2,178 |
6,622 |
|
|
|
Interest expense, net |
40 |
22 |
|
|
|
Income before income taxes |
2,138 |
6,600 |
|
|
|
Income tax expense (benefit) |
814 |
2,332 |
|
|
|
Net income |
$1,324 |
$4,268 |
|
|
|
Income (loss) per common share |
|
|
Basic |
$0.05 |
$0.18 |
Diluted |
$0.05 |
$0.18 |
|
|
|
Weighted average common shares
outstanding |
|
|
Basic |
24,294 |
24,281 |
Diluted |
24,360 |
24,289 |
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets |
|
|
(in thousands, unaudited) |
September 30, |
June 30, |
|
2011 |
2011 |
Current Assets |
$105,506 |
$106,100 |
Property, Plant and Equipment, net |
43,757 |
44,284 |
Other Assets |
24,680 |
25,637 |
|
$173,943 |
$176,021 |
|
|
|
Current Liabilities |
$20,427 |
$21,576 |
Long-Term Debt |
-- |
1,064 |
Other Long-Term Liabilities |
2,114 |
2,163 |
Shareholders' Equity |
151,402 |
151,218 |
|
$173,943 |
$176,021 |
CONTACT: BOB READY OR
RON STOWELL
(513) 793-3200
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