LSI Industries (LYTS) Q2 Earnings Beat Estimates, Down Y/Y
LSI Industries Inc. LYTS reported mixed second-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings and net sales surpassed the Zacks Consensus Estimate. However, both the metrics declined on a year-over-year basis due to tepid Display Solutions and Lighting segment performance.
Nonetheless, strategic investments in organic growth and new product innovation aided the company's performance. Also, emphasis on cross-selling initiative bodes well.
Delving Deeper
LYTS reported earnings of 20 cents per share, which topped the consensus estimate of 7 cents by 185.7%. However, the metric declined 11% from the year-ago reported figure of 22 cents per share. Adjusted earnings of 21 cents declined 19% year over year.
LSI Industries Inc. Price, Consensus and EPS Surprise
LSI Industries Inc. price-consensus-eps-surprise-chart | LSI Industries Inc. Quote
Net sales of $109 million beat the consensus mark of $108 million by 1.2% but decreased 15% from the prior-year quarter’s levels. Lighting Segment’s net sales of $64.8 million and Display Solutions’ net sales of $44.2 million declined 3% and 29% year over year, respectively.
Operating Highlights
Adjusted operating income decreased by 18% to $8.7 million. Adjusted operating margin of 8% was down 20 basis points (bps) year over year. Adjusted EBITDA declined 15% year over year to $11.1 million from a year ago. Adjusted EBITDA margin remained at par with the year-ago figure.
Financials
As of Dec 31, 2023, LSI Industries had cash and cash equivalents of $2.7 million, up compared with $1.8 million at the end of the fiscal 2023. As of Dec 31, 2023, LSI had approximately $103 million in liquidity, including availability under its existing credit facility.
Long-term debt was $17.9 million, down from $31.6 million reported at fiscal 2023-end. The net debt to adjusted EBITDA ratio was 0.4x versus 0.65x at the end of fiscal 2023.
For the first six months of fiscal 2024, cash provided by operating activities totaled $19.9 million compared with $20.1 million in the prior-year period. Free cash flow was down to $16.5 million from $19.1 million in the prior-year period.
Zacks Rank
LSI Industries currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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