LSI Industries Reports Fiscal 2024 First Quarter Results and Declares Quarterly Cash Dividend, Net Sales $123.4 Million

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LSI Industries Inc. (Nasdaq: LYTS, “LSI” or the “Company”) a leading U.S. based manufacturer of commercial lighting and display solutions, today reported financial results for the fiscal 2024 first quarter ended September 30, 2023.


  • Net Income +28% y/y to $8.0 million, or $0.27 per diluted share
  • Adjusted Net Income +23% y/y to $8.7 million or $0.29 per diluted share
  • Net Sales $123.4 million; Lighting sales steady versus prior year
  • EBITDA of $13.4 million; Adjusted EBITDA $15.1 million or 12.2% of sales
  • Free Cash Flow $9.2 million
  • Ratio of net debt to TTM Adjusted EBITDA of 0.5x as of September 30, 2023

LSI delivered significant year-over-year growth in margin realization, operating income, and profitability in the fiscal first quarter, driven by disciplined price and cost management, as well as general stability across the Company’s diverse vertical markets.

The Company reported fiscal first quarter net income of $8.0 million, or $0.27 per diluted share, on net sales of $123.4 million. Adjusted net income was $8.7 million, or $0.29 per diluted share, versus $7.1 million or $0.25 per diluted share last year. Net sales of $123.4 million was 3% below prior year.

LSI reported Adjusted EBITDA of $15.1 million in the fiscal first quarter, an increase of 13% versus the prior-year period. Adjusted EBITDA margin rate improved 170 basis points year-over-year to 12.2% in the fiscal first quarter, driven by a higher-value sales mix, continued price discipline, and effective cost management.

The Company generated free cash flow of $9.2 million and $45.4 million, respectively, for the three and twelve months ended September 30, 2023. The strong cash flow allowed the Company to continue to reduce net debt. In the quarter net debt decreased to $25.1 million from $68.5 million last year, resulting in a reduction in the ratio of net debt to trailing twelve-month adjusted EBITDA to 0.5x.

The Company declared a regular cash dividend of $0.05 per share payable on November 21, 2023, to shareholders of record on November 13, 2023.


“Our Company delivered solid first quarter results, driven by strong execution across all facets of our business,” stated James A. Clark, President, and Chief Executive Officer of LSI. “Our commercial and operational execution continues at a high level, advancing our position in key vertical markets, while managing the timing of customer programs and projects,” continued Clark. “Predicting program and project timing remains a challenge, as macro and sector-specific factors shift the timing of customer capital investments. Importantly, we’ve built our business to flex and adapt to these fluctuations, while ensuring we are well equipped to support the unique needs of every customer.

“Profitable growth remains a central pillar of our value creation strategy,” continued Clark. “Over the last several years we have focused on expanding our position within high-value verticals where our solutions-based approach has supported margin expansion and a higher quality of earnings. We continued to make progress in this regard during the fiscal first quarter, with adjusted operating margin and adjusted EBITDA margins exceeding 10% and 12% respectively. The drivers of improvement are broad based, with multiple factors contributing to building sustainable customer relationships and durable business processes.

“Over the last year LSI has generated more than $45 million in free cash flow, including more than $9 million in the fiscal first quarter. We continue to strengthen our balance sheet in the reduction of our net leverage from 1.7x to 0.5x in the last twelve months. We continue to apply a disciplined approach to capital allocation, one that prioritizes debt reduction and high-return organic investments, inorganic growth, and a stable return of capital program.

“Innovation has been an important part of our growth in sales and profitability the last several years and is a critical part of our future growth” Clark stated. “At the recent NACS (National Association of Convenience Stores) trade show, we featured three innovative products utilizing patented technologies that provide differentiated solutions for the refueling/c-store and other retail markets. NACS is one of the nation’s largest trade shows and presented the opportunity to share our value proposition with both new and existing customers.

“For example, the ‘Archer’ is a linear perimeter lighting system that provides an optically managed curtain of light around the building exterior, maintaining the character of the building at night. Our canopy lighting fixtures provide an option to utilize ‘Forward Throw’ optics technology to illuminate a secured path from refueling pumps to the C-store entrance. This combination provides a lighting solution that provides a safer, more inviting environment for both customers and employees, deters potential crime, all driving store sales growth through increased customer traffic. This is just one example of working collaboratively with our customers to develop innovative solutions to important problems and creating recognized value.

“We also highlighted the new mobile refrigeration display case utilizing the R290 non-toxic refrigerant free of ozone depleting properties. Expansion of our JSI display case products into the c-store market is an important part of our organic growth initiatives.

“Reviewing segment performance, first quarter Lighting Segment sales were held steady when compared to the strong prior year quarter, reflecting both increased market penetration, together with healthy activity levels within our market verticals. Lighting adjusted gross margin rate improved 140 basis points to 34.4% in the period, driven by steady volume, favorable pricing/mix, and cost management. Project quotation levels remain steady entering the fiscal second quarter, and the pricing environment remains stable.

“The first phase of the large EV battery plant project, referenced in last quarter’s earnings call, is nearing completion,” continued Clark. “Initial feedback on this multi-million-dollar lighting project from both the contractor and end-customer is very positive. Our enhanced customer service for this order included on-site pre-installation product inspection and technical assistance throughout the installation process. Last week we received the order for the second of the two-plant complex. The second facility is similar in size and lighting specification requirements. Shipment activity will begin in late fiscal second quarter and be complete by the end of the fiscal third quarter.

“We continue to invest in both product and non-product initiatives for the Lighting Segment. A record number of agency, distributor, and contractor partner personnel visited our lighting locations for multi-day training on new products and specific vertical-market applications. In-person training on specific products/solutions is an integral component of our comprehensive training and communications platform used to inform and educate others on our value proposition.

“Fiscal first quarter results for our Display Solutions segment reflect improved profitability and margin expansion on a modest sales decline. Favorable program pricing and prudent cost management were responsible for the 360-basis point adjusted gross margin rate improvement. Sales growth was realized in the Refueling/C-Store vertical, as well as QSR with Digital Signage applications, offsetting a modest decline in Grocery-related sales.

“We successfully secured several new significant programs during the first quarter which have been progressing through the development and approval phase throughout the last twelve months,” added Clark. “One of the world’s largest oil companies has selected LSI to lead an image refresh program for seven distinct brands with a network of over 7,000 domestic locations. Coincidentally, we just recently completed the final sites for the comprehensive brand refresh program this Company started with us seven years ago. The new imaging upgrade will apply LSI’s new ‘Archer’ and ‘Forward Throw’ technology described above, and the customer is targeting to complete the refresh in four and a half years, significantly faster than the previous seven-year program cycle. The lifecycle for image programs continues to shorten, as our customers recognize the value of maintaining the quality of their brand. This program engagement, which will include both Lighting and Display products, is currently underway with an initial 150 flagship locations.

“Our continued collaboration with several large oil companies, relationships that were instrumental in our commercial expansion into Mexico and Puerto Rico in recent years, has led to the next step in our international expansion,” continued Clark. “We have been awarded programs establishing our presence into six Central American countries and Jamaica. The expansion involves rebranding more than 1,400 sites, with the plan to complete all renovation work over the next three years. The program scope will range from a combination of complete turnkey solutions, including site surveys through installation, to sites where we will supply product only. The retrofit solution will be specific for each site, with some sites having both Lighting and Display Solutions, while other sites will require Display Solutions only.

“While the forward outlook for Display Solutions remains very positive, the near-term activity will be impacted by program timing. The more recent timing issues of site permitting and customer installation scheduling, combined with the growing industry disruption caused by the pending merger of the nation’s two largest grocery chains, along with record prior year shipments, will adversely impact Display sales in the fiscal second quarter when compared to the prior year. We are working closely with our customers to ensure we are positioned to service on-going changes in program order release activity and short-term delivery requirements. Despite the near-term volatility in activity levels, the underlying demand outlook for this business remains strong.”

Clark concluded, “We continue to realize tangible progress on the initiatives that position our Company for profitable growth and to achieve our 2028 Fast Forward sales and profitability objectives. We will maintain our management focus on strong commercial and operational execution, margin management, and cash generation, allowing us to successfully manage through any short-term market disruptions associated with program timing.”


A conference call will be held today at 11:00 A.M. ET to review the Company’s financial results and conduct a question-and-answer session.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of LSI Industries’ website at Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software.

Details of the conference call are as follows:

Domestic Live: 877-407-4018
International Live: 201-689-8471

To listen to a replay of the teleconference, which will be available through November 16, 2023:

Domestic Replay: 844-512-2921
International Replay: 412-317-6671
Conference ID: 13741905


Headquartered in Cincinnati, LSI Industries (Nasdaq: LYTS) specializes in the creation of advanced lighting, graphics, and display solutions. The Company’s American-made products, which include lighting, print graphics, digital graphics, refrigerated and custom displays, aim to help businesses stand out in a competitive market. With a workforce of nearly 1,600 employees and 11 facilities throughout North America, LSI is dedicated to providing top-quality solutions to its clients. Additional information about LSI is available at

Learn more here.