CINCINNATI - LSI Industries Inc. (NASDAQ:LYTS), a prominent manufacturer of commercial lighting and display solutions in the U.S., announced its financial outcomes for the fiscal fourth quarter and the entire year ending June 30, 2024. The company reported a net sales increase of 4% to $129.0 million in the fourth quarter, compared to the prior year, with a net income of $5.7 million, which includes $1.0 million in acquisition-related expenses.
The adjusted net income for the quarter was $7.3 million, or $0.24 per diluted share. EBITDA for the quarter was $11.9 million, with adjusted EBITDA at $14.0 million, representing 10.9% of net sales. The company generated $10.3 million in free cash flow for the quarter and completed the acquisition of EMI Industries for $50 million in cash.
For the full fiscal year 2024, LSI Industries recorded net sales of $469.6 million, with a net income of $25.0 million, or $0.83 per diluted share. The adjusted net income reached $28.6 million, equating to $0.95 per diluted share. The annual EBITDA was $45.5 million, and the adjusted EBITDA was $51.4 million, marking an improvement of 60 basis points year-over-year to 11.0% of net sales. The company's free cash flow stood at $38.0 million for the year.
Despite a decline in grocery vertical sales owing to a pending merger of two large industry players, LSI's acquisition of EMI is expected to enhance its integrated display solutions offering and is immediately accretive to its adjusted earnings per share. The company also reported a solid backlog for display solutions, particularly in the refueling/convenience store market, and anticipates growth in the grocery vertical within the next year.
LSI Industries has declared a regular cash dividend of $0.05 per share, payable on September 3, 2024, to shareholders of record on August 26, 2024.
The company's balance sheet remains healthy, with a net leverage ratio of 1.0x, including the EMI acquisition. As of June 30, 2024, LSI had approximately $50 million of cash and availability under its existing credit facility.
This report is based on a press release statement from LSI Industries Inc.
InvestingPro Insights
LSI Industries Inc. appears to be navigating a challenging economic landscape with a strategic approach, as evidenced by the recent financial data. The company's P/E Ratio (Adjusted) for the last twelve months as of Q2 2024 stands at -28.29, a reflection of the market's tempered expectations for future earnings growth. However, the PEG Ratio of 1.53 suggests that investors may still see potential in the company's earnings growth trajectory relative to its peers.
On the balance sheet front, LSI Industries maintains a Price / Book ratio of 0.84, indicating that the stock may be undervalued compared to the company's net asset value. This could be a point of interest for value-oriented investors. Moreover, the company's commitment to shareholder returns is highlighted by the declaration of a regular cash dividend, despite a notable 100% decline in dividend growth over the last twelve months as of Q2 2024.
InvestingPro Tips indicate that investors should closely monitor the company's next earnings date on November 13, 2024, as it could provide further insights into the company's operational performance and strategic initiatives. Additionally, with the InvestingPro Fair Value estimated at $0.05, it may suggest a cautious stance on the stock's current valuation.
For those seeking more detailed analysis and additional insights, InvestingPro offers 15+ InvestingPro Tips that could help in making more informed investment decisions regarding LSI Industries Inc.
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