LSI Industries (LYTS) Q4 Earnings Beat, Adjusted EBITDA Up Y/Y
LSI Industries Inc. LYTS reported impressive results for fourth-quarter fiscal 2023 (ended Jun 30, 2023), wherein earnings and net sales surpassed the Zacks Consensus Estimate.
On a year-over-year basis, earnings rose, but net sales declined due to tepid Display Solutions’ performance.
Delving Deeper
LYTS reported earnings of 28 cents per share, which topped the consensus estimate of 17 cents by 64.7%. The metric also increased 58% from the year-ago reported figure of 18 cents per share. Adjusted earnings of 30 cents increased by 41% 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 $123.6 million beat the consensus mark of $119 million by 3.5% but decreased 3% from the prior-year quarter’s levels. Lighting Segment’s net sales of $71.4 million grew 5%, while Display Solutions’ net sales of $52.3 million fell 12% from the previous year.
Adjusted operating income increased by 45% to $11.7 million. Adjusted operating margin of 9.5% was up 310 basis points (bps) year over year. Adjusted EBITDA rose 33% to $14.1 million from a year ago. Adjusted EBITDA margin increased by 310 bps to 11.4%.
Financials
At fiscal 2023-end, LSI Industries had cash and cash equivalents of $1.8 million compared with $2.5 million at fiscal 2022-end. As of Jun 30, 2023, LSI had approximately $60 million in liquidity, including availability under its existing credit facility.
Long-term debt was $31.6 million, down from $76 million reported in the fiscal 2022-end. Net debt to adjusted EBITDA ratio was 0.65x versus 2.20x at fiscal 2022 end.
For fiscal 2023, cash provided by operating activities totaled $49.6 million versus $3.7 million in the prior-year period. Free cash flow was up to $46.4 million in fiscal 2023 versus negative $5.9 million in fiscal 2022.
Zacks Rank
LSI Industries currently carries a Zacks Rank #3 (Hold).
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