LSI INDUSTRIES INC. |
(Exact name of Registrant as specified in its Charter) |
Ohio
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0-13375
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31-0888951
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No. )
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10000 Alliance Road, Cincinnati, Ohio |
45242
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(Address of Principal Executive Offices)
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(Zip Code)
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(Former name or former address, if changed since last report.)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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LSI INDUSTRIES INC.
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By:
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/s/ Ronald S. Stowell | |
Ronald S. Stowell | |||
Vice President, Chief Financial Officer and Treasurer
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(Principal Accounting Officer) |
CONTACT:
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BOB READY OR
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FOR IMMEDIATE RELEASE
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RON STOWELL
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DATE: APRIL 28, 2011
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(513) 793-3200
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reported third quarter net sales of $64,628,000, an increase of 21% as compared to the same period of the prior fiscal year;
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reported third quarter net income of $2,115,000 or $0.09 per share, as compared to a net loss of $(2,532,000) or $(0.10) per share for the same period of the prior fiscal year;
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reported nine month net sales of $219,284,000, an increase of 15% as compared to the same period of the prior fiscal year;
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reported nine month net income of $9,331,000 or $0.38 per share, as compared to net income of $697,000 or $0.03 per share for the same period of the prior fiscal year; and
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declared a regular quarterly cash dividend of $0.05 per share payable May 17, 2011 to shareholders of record May 10, 2011.
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Three Months Ended
March 31
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Nine Months Ended
March 31
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2011
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2010
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% Change
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2011
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2010
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% Change
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Net Sales
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$ | 64,628 | $ | 53,466 | 21 | % | $ | 219,284 | $ | 190,516 | 15 | % | ||||||||||||
Operating Income (Loss)
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$ | 2,483 | $ | (3,814 | ) | n/m | $ | 13,754 | $ | 1,616 | 751 | % | ||||||||||||
Net Income (Loss)
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$ | 2,115 | $ | (2,532 | ) | n/m | $ | 9,331 | $ | 697 | 1,239 | % | ||||||||||||
Earnings (Loss) Per Share (diluted)
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$ | 0.09 | $ | (0.10 | ) | n/m | $ | 0.38 | $ | 0.03 | 1,167 | % |
3/31/11
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6/30/10
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Working Capital
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$ | 81,392 | $ | 73,568 | ||||
Total Assets
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$ | 180,702 | $ | 173,845 | ||||
Long-Term Debt
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$ | 1,073 | $ | 1,099 | ||||
Shareholders’ Equity
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$ | 150,738 | $ | 144,218 |
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Page 1 of 8
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Page 2 of 8
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Our business model is based on providing a broad base of customers and industries with world class cost-effective and energy-efficient advanced lighting and graphics solutions. We are a leader in providing solid-state LED based products and are successfully broadening our base of customers around new energy efficient technologies.
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Our manufacturing processes are among the most modern and efficient in the lighting and graphics industries. During the past two years, we have made substantial investments in modern and efficient production equipment for both our lighting and graphics divisions. We are proud of our American-made products and low cost production capabilities.
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New product development is centered on cost savings, energy conservation and advanced technologies. We are a leader in designing, engineering, manufacturing, and selling solid-state LED based lighting fixtures and systems. Our products are designed for both the broad Commercial and Industrial market as well as our niche markets such as petroleum stations, convenience stores, and quick service restaurants. Expect to see some important new product announcements later this quarter.
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Our graphics business has some of the most advanced capabilities available in the industry. Here, we are broadening our market reach by increasing our sales and marketing efforts and expanding the customer classes served. Through careful cost controls, we are well-positioned to see dramatic improvement in profits when sales increase. Of course, we will maintain our ability to serve national account roll-out programs as they become available.
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Many of the markets we serve have been under-spending on lighting and graphics during the recent recessionary period. As a result, we believe there is substantial pent-up demand and that LSI Industries' ability to provide image refreshment and energy savings through its lighting and graphics divisions working together represents a great business opportunity.
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Our previously announced multi-year program with BP Products North America to provide LED-based canopy products is moving forward and is on plan to continue shipments during the current quarter.
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Our iZone Technology Center in Cincinnati has proven to be a valuable resource as an education center and idea generator where we can demonstrate to our customers our advanced technologies and products. We plan to introduce a similar, but smaller, facility at our Montreal location.
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We are increasing our efforts to enter new geographic markets. Recently, we restructured our sales and marketing approach to the Canadian market. Our Australian distribution channel is reporting record results and we continue to develop opportunities in the European and Middle-East markets.
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Our reputation for managing and executing major national projects is unequaled. While we more actively pursue a larger base of smaller lighting and graphics projects, we are also involved at the early stages of some potentially very large projects. One of LSI's major strengths is the ability to provide both lighting and graphics to major national retailers.
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Our acquisition of AdL Technology nearly two years ago has delivered all that we expected and more. AdL supports and advances our solid-state LED development and production. We expect to expand capacity during the next 12 months.
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Page 3 of 8
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Our financial condition is strong. At March 31, 2011, our cash balance was $9.6 million, our current ratio was 4.05 to 1.0, and shareholders' equity was $150.7 million, with long-term debt of only $1.1 million. This strength, combined with our cash flow from operations, easily supports our growth, capital expenditures, cash dividends, and possible future acquisitions.
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(in thousands, except per share data; unaudited) |
Third Quarter
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FY 2011
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Diluted
EPS
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FY 2010
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Diluted
EPS
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Reconciliation of net income to adjusted net income:
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Net income (loss) as reported
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$ | 2,115 | $ | 0.09 | $ | (2,532 | ) | $ | (0.10 | ) | ||||||
Adjustment for the loss on sale of LSI Marcole,
inclusive of the income tax effect
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-- | -- | 300 | 0.01 | ||||||||||||
Adjustment for the acquisition deal costs and
acquisition-related fair value inventory adjustment,
inclusive of the income tax effect
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-- | -- | 16 | -- | ||||||||||||
Adjusted net income (loss) and earnings (loss) per share
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$ | 2,115 | $ | 0.09 | $ | (2,216 | ) | $ | (0.09 | ) |
(in thousands, except per share data; unaudited) |
Nine Month
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FY 2011
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Diluted
EPS
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FY 2010
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Diluted
EPS
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Reconciliation of net income to adjusted net income:
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Net income as reported
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$ | 9,331 | $ | 0.38 | $ | 697 | $ | 0.03 | ||||||||
Adjustment for the loss on sale of LSI Marcole,
inclusive of the income tax effect
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-- | -- | 300 | 0.01 | ||||||||||||
Adjustment for the acquisition deal costs and
acquisition-related fair value inventory adjustment,
inclusive of the income tax effect
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-- | -- | 545 | 0.02 | ||||||||||||
Adjusted net income and earnings per share
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$ | 9,331 | $ | 0.38 | $ | 1,542 | $ | 0.06 |
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Page 6 of 8
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(in thousands, except per
share data; unaudited)
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Three Months Ended
March 31
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Nine Months Ended
March 31
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2011
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2010
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2011
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2010
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Net sales
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$ | 64,628 | $ | 53,466 | $ | 219,284 | $ | 190,516 | ||||||||
Cost of products and services sold
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48,304 | 44,593 | 163,691 | 148,746 | ||||||||||||
Gross profit
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16,324 | 8,873 | 55,593 | 41,770 | ||||||||||||
Selling and administrative expenses
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13,841 | 12,687 | 41,839 | 40,154 | ||||||||||||
Operating income (loss)
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2,483 | (3,814 | ) | 13,754 | 1,616 | |||||||||||
Interest expense, net
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11 | 33 | 71 | 99 | ||||||||||||
Income (loss) before income taxes
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2,472 | (3,847 | ) | 13,683 | 1,517 | |||||||||||
Income tax expense (benefit)
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357 | (1,315 | ) | 4,352 | 820 | |||||||||||
Net income (loss)
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$ | 2,115 | $ | (2,532 | ) | $ | 9,331 | $ | 697 | |||||||
Income (loss) per common share
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Basic
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$ | 0.09 | $ | (0.10 | ) | $ | 0.38 | $ | 0.03 | |||||||
Diluted
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$ | 0.09 | $ | (0.10 | ) | $ | 0.38 | $ | 0.03 | |||||||
Weighted average common shares outstanding
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Basic
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24,291 | 24,277 | 24,286 | 24,078 | ||||||||||||
Diluted
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24,363 | 24,277 | 24,331 | 24,085 |
March 31,
2011
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June 30,
2010
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Current Assets
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$ | 108,068 | $ | 99,411 | ||||
Property, Plant and Equipment, net
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44,870 | 44,911 | ||||||
Other Assets
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27,764 | 29,523 | ||||||
$ | 180,702 | $ | 173,845 | |||||
Current Liabilities
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$ | 26,676 | $ | 25,843 | ||||
Long-Term Debt
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1,073 | 1,099 | ||||||
Other Long-Term Liabilities
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2,215 | 2,685 | ||||||
Shareholders’ Equity
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150,738 | 144,218 | ||||||
$ | 180,702 | $ | 173,845 |
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Page 8 of 8
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