LSI Industries Inc. Announces Potential Changes to Certain Non-Cash Impairment Charges and a Delay in Filing Form 10-Q for the Quarter Ended March 31, 2009

• Press Release
• Source: LSI Industries Inc.
• On 4:57 pm EDT, Monday May 11, 2009

CINCINNATI, May 11, 2009 (GLOBE NEWSWIRE) -- LSI Industries Inc. (Nasdaq:LYTS - News) today announced that it is re-evaluating goodwill impairment tests performed in June 2008 and December 2008 to determine if the appropriate amount of non-cash goodwill impairment charges were recorded. Until this analysis is complete, the Company will not be able to file Form 10-Q for the period ended March 31, 2009. Today, the Company filed a Form 12(b)-25 with the Securities Exchange Commission to request a five day extension of time to file this Form 10-Q.

Related Quotes

Symbol	Price	Change
LYTS	7.72	+0.35

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Goodwill impairment expense in the amount of $27,149,000 and $12,669,000 in the quarters ended June 30, 2008 and December 31, 2008, respectively, was recorded in the financial statements of the Company. Based upon a preliminary analysis as of this date, it appears that the Company recorded approximately $400,000 too much impairment in these two periods, on a net basis. As a result, we intend to restore approximately $400,000 of goodwill to the balance sheet as of March 31, 2009 with a related reduction of non-cash pre-tax impairment expense of approximately $400,000 will be reversed on the Company's consolidated statements of operations.

LSI was unable to timely finalize its accounting documentation and analysis related to these goodwill impairment tests by the prescribed filing date without unreasonable effort and expense, primarily due to the complexities of the goodwill impairment testing as required under SFAS No. 142 and the need to re-evaluate the prior calculations. The Company currently anticipates filing the Form 10-Q on or before May 18, 2009, although there can be no assurance in this regard.

The aforementioned revision to the Company's impairment charges does not affect cash, liquidity, the cash dividend policy, tangible net worth, or the borrowing capability of LSI Industries. Adjusting for the change to the goodwill impairment calculations, the Company's revised balance sheet at March 31, 2009 is expected to be materially unchanged with current assets of $89.8 million, current liabilities of $17.1 million and working capital of $72.7 million, and the current ratio remains at 5.26 to 1. Goodwill is expected to be reported at $1.8 million, an increase of approximately $0.4 million, and shareholders' equity is expected to be revised upward to $131.5 million. The Company has no long-term debt, and has borrowing capacity on its commercial bank facilities as of March 31, 2009 of $47 million. With continued strong cash flow, a sound and conservatively capitalized balance sheet, and $47 million in credit facilities, LSI Industries believes its financial condition is sound and capable of supporting the Company's planned growth, including acquisitions.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This document contains certain forward-looking statements that are subject to numerous assumptions, risks or uncertainties. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Forward-looking statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "expects," "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. Such statements are based upon current expectations of the Company and speak only as of the date made. Actual results could differ materially from those contained in or implied by such forward-looking statements as a result of a variety of risks and uncertainties. These risks and uncertainties include, but are not limited to, the impact of competitive products and services, product demand and market acceptance risks, reliance on key customers, financial difficulties experienced by customers, the adequacy of reserves and allowances for doubtful accounts, fluctuations in operating results or costs, unexpected difficulties in integrating acquired businesses, and the ability to retain key employees of acquired businesses. The Company has no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

About the Company

LSI Industries is an Image Solutions company, dedicated to advancing solid-state LED technology in lighting and graphics applications. We combine integrated technology, design, and manufacturing to supply high quality, environmentally friendly lighting fixtures and graphics elements for commercial, retail and specialty niche market applications. LSI is a U.S. manufacturer with marketing / sales efforts throughout the world with concentration currently on North American, South American, Asian, Australian, New Zealand and European markets.

Building upon its success with the Crossover(r) LED canopy fixture, LSI's Lighting Segment is committed to producing affordable, high performance, energy efficient lighting products, including solid-state LED light fixtures, for indoor and outdoor use. The Graphics Segment designs, produces, markets and manages a wide array of custom indoor and outdoor graphics programs including signage, menu board systems, decorative fixturing, LED displays and digital signage, and large format billboard and sports screens using solid-state LED technology. In addition, we provide design support, engineering, installation and project management for custom rollout programs for today's retail environment. The Company's technology R&D operation located in Montreal, Canada designs, produces and supports high performance light engines and large format billboard, sports and entertainment video screens using solid-state LED technology.

LSI's major markets are the commercial / industrial lighting, petroleum / convenience store, multi-site retail (including automobile dealerships, restaurants and national retail accounts), sports and entertainment markets. LSI employs approximately 1,200 people in facilities located in Ohio, New York, North Carolina, Kansas, Kentucky, Rhode Island, Tennessee, Texas and Montreal, Canada. The Company's common shares are traded on the NASDAQ Global Select Market under the symbol LYTS.

The LSI Industries Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3646

Additional note: Today's news release, along with past releases from LSI Industries, is available on the Company's internet site at www.lsi-industries.com or by email or fax, by calling the Investor Relations Department at (513) 793-3200.

LSI Industries Inc.
Bob Ready, Chief Executive Officer and President
Ron Stowell, Vice President, Chief Financial Officer,
and Treasurer
(513) 793-3200