Wed, Sep 11, 8:05 PM (101 days ago)
LSI Industries Inc. reported a net sales decline of 6% to $469.6 million for fiscal 2024, with the Lighting Segment generating $262.4 million and the Display Solutions Segment $207.2 million. Operating income decreased 4% to $35.5 million, attributed to an 8% sales drop in Display Solutions, primarily due to reduced demand in the grocery sector. Despite lower sales, gross profit margins improved due to effective cost control, resulting in a non-GAAP adjusted operating income of $41.4 million. The company completed the acquisition of EMI Industries for $49.9 million, enhancing its market reach in grocery and quick-service restaurant verticals. Total debt increased to $54.2 million, primarily due to this acquisition. LSI reported net income of $25.0 million, down from $25.8 million, with diluted earnings per share at $0.83 compared to $0.88 in the prior year. Key risk factors include economic downturns affecting customer demand, competitive pressures, and potential disruptions in supply chains. The company maintains a strong liquidity position with a working capital of $83.3 million and a current ratio of 2.05. Future outlook remains cautious amid market volatility and operational challenges.