Thu, May 8, 8:03 PM (15 days ago)
**LSI Industries Inc. (LYTS) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $132.5M, up 22% YoY, driven by a 70% increase in Display Solutions and a 9% decline in Lighting. - **Profit Margins:** Gross profit margin decreased to 25% in Q1 2025 from 29% in Q1 2024 due to product mix and transitory impacts. - **Cash Flow:** Operating cash flow was $28.6M in Q1 2025, down from $32.3M in Q1 2024. - **Earnings:** Net income was $3.9M in Q1 2025, down from $5.4M in Q1 2024. Adjusted net income was $6.3M, down from $7.1M. - **Earnings per Share (EPS):** Diluted EPS was $0.13 in Q1 2025, down from $0.18 in Q1 2024. **Segment Performance:** - **Display Solutions:** Revenue up 70% YoY to $73.5M, with organic growth of 15% and acquisitions contributing $23.8M. - **Lighting:** Revenue down 9% YoY to $59.0M due to fewer large projects, but small project activity increased. **Acquisitions:** - **EMI Industries:** Acquired in Q4 2024 for $50M, contributing $22.4M in Q1 2025. - **Canada’s Best Holdings (CBH):** Acquired in Q3 2025 for $27.4M, contributing $1.4M in Q1 2025. **Liquidity & Capital Resources:** - **Cash Position:** $4.3M in cash and cash equivalents as of March 31, 2025. - **Debt:** $55.4M in total debt, with $32.2M available under the revolving line of credit. - **Dividends:** Declared a quarterly dividend of $0.05 per share. **Outlook & Uncertainties:** - **Growth Opportunities:** Continued investment in commercial initiatives and acquisitions. - **Risks:** Trade policies, supply chain disruptions, and market fluctuations. **Future Operations Impact:** - **Strategic Initiatives:** Focus on organic growth, acquisitions, and cost management. - **Financial Goals:** Maintain strong liquidity, manage debt, and generate positive cash flow. **Management's Discussion:** - **Strategic Focus:** Drive growth through acquisitions and organic initiatives. - **Financial Strategy:** Maintain liquidity, manage debt, and invest in growth opportunities. **Conclusion:** LSI Industries showed mixed results in Q1 2025, with strong revenue growth in Display Solutions offset by declines in Lighting and margin pressures. The company remains focused on strategic acquisitions and organic growth while managing financial health and liquidity.