LSI Industries Introduces Strategic Plan Update, Five-Year Financial Targets
08 Mars 2023 - 11:00PM
Business Wire
“Fast Forward” Strategy to Deliver $800 million
in Net Sales and $100 million Adjusted EBITDA by FY28
LSI Industries Inc. (Nasdaq: LYTS, “LSI” or the “Company”) a
leading U.S. based manufacturer of indoor/outdoor lighting and
display solutions, today introduced its long-term strategic growth
plan, including new, five-year financial targets through FY28.
MANAGEMENT COMMENTARY
“During the last three years, our team has demonstrated
significant progress on our business transformation strategy, one
that emphasizes targeted commercial expansion within higher-value,
growth-oriented vertical markets, improved operational efficiency,
and a disciplined approach toward capital allocation,” stated James
A. Clark, President and Chief Executive Officer of LSI Industries.
“During this period of transformation, we’ve built a balanced,
integrated lighting and display solutions platform, introduced a
record number of new products, strengthened our partner and
end-user relationships, expanded our procurement and sourcing
capabilities, and successfully integrated a significant strategic
acquisition with the purchase of JSI.”
“Having built a strong foundation for profitable growth, LSI
will now seek to build scale through its distinct vertical market
model, positioning us to deliver superior value to both customers
and shareholders,” continued Clark. “Today, with the introduction
of our Fast Forward strategy, we are publishing new, five-year
financial targets. Over the next five years, we project net sales
growth of more than 60%, Adjusted EBITDA growth of more than 100%
and Adjusted EBITDA margin expansion of approximately 250+ basis
points, or 12.5% of net sales. We anticipate sales growth will be
evenly balanced across both organic and inorganic investments.”
“In the current fiscal year 2023 ended June 30, 2023, we project
net sales of approximately $490-$500 million and Adjusted EBITDA of
$47-$49 million, or ~9.5% to 10% of net sales,” concluded
Clark.
FAST FORWARD STRATEGY OVERVIEW
LSI’s Fast Forward Strategy seeks to deliver sustained
commercial expansion, operational excellence and disciplined
capital allocation, consistent with the Company’s focus on
long-term value creation. Key elements of the Strategy include the
following:
- Seek to expand “customer share” within existing
verticals through a combination of new customer originations;
increasing penetration of existing customer accounts; and expansion
within adjacent, complimentary new applications/solutions
- Seek to expand “market share” into new high-value
verticals, utilizing existing solutions in addition to
adjacent, complementary new applications/solutions
- Continue the ongoing launch of vertical/customer specific new
products, and build and scale new competencies and solutions, some
of which acquired through targeted acquisitions
INTRODUCING FY28 FINANCIAL TARGETS
In conjunction with the launch of LSI’s Fast Forward Strategy,
the Company has introduced FY28 financial targets for net sales,
Adjusted EBITDA, and Adjusted EBITDA margin.
FY23e
FY28e
5-Year Growth
Net Sales ($MM)
$490-$500
$800
60%+
Adjusted EBITDA ($MM)
$47-$49
$100
100%+
Adjusted EBITDA Margin (%)
9.5%-10%
12.5%
250 bps+
Consistent with the Company’s focus on disciplined capital
allocation, LSI is committed to maintaining a long-term ratio of
net debt to trailing twelve-month adjusted EBITDA of at or below
3.0x.
In conjunction with this press release, accompanying
presentation materials are available in the Investor Relations
section of LSI’s corporate website at www.lsicorp.com.
ABOUT LSI INDUSTRIES
Headquartered in Greater Cincinnati, LSI is a publicly held
company with shares listed on the NASDAQ Stock Market under the
symbol LYTS. The Company manufactures non-residential lighting and
display solutions. Non-residential lighting consists of
high-performance, American-made lighting solutions. The Company’s
strength in outdoor lighting applications creates opportunities to
introduce additional solutions to its valued customers. Display
solutions consist of graphics solutions, digital signage, and
technically advanced food display equipment for strategic vertical
markets. LSI’s team of internal specialists also provide
comprehensive project management services in support of large-scale
product rollouts. The Company employs approximately 1,600 people at
11 manufacturing plants in the U.S. and Canada. Additional
information about LSI is available at www.lsicorp.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements.
Forward-looking statements may be identified by words such as
“target,” “commit,” “estimates,” “anticipates,” “encourage,”
“projects,” “plans,” “expects,” “can,” “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. For details on the uncertainties that may cause our actual
results to be materially different than those expressed in our
forward-looking statements, visit https://investors.lsicorp.com as
well as our Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q which contain risk factors.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230308005812/en/
INVESTOR CONTACT Noel Ryan, IRC 720.778.2415
LYTS@vallumadvisors.com
LSI Industries (NASDAQ:LYTS)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
LSI Industries (NASDAQ:LYTS)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024