LSI Industries Inc. (NASDAQ: LYTS) has reported its financial results for the fourth quarter and full year of fiscal 2024 ended June 30, 2024. The company's net sales for the fourth quarter were $129.0 million, representing a 4% increase from the prior year. Net income for the same period was $5.7 million, which included $1.0 million of acquisition-related expense. Adjusted net income for the quarter stood at $7.3 million or $0.24 per diluted share. The company's EBITDA was reported at $11.9 million, with adjusted EBITDA at $14.0 million or 10.9% of sales. LSI also generated free cash flow of $10.3 million during the fourth quarter.
For the full fiscal year 2024, LSI Industries reported net sales of $469.6 million. Net income for the year was $25.0 million or $0.83 per diluted share, while adjusted net income was $28.6 million or $0.95 per diluted share. The company's EBITDA was $45.5 million, with adjusted EBITDA at $51.4 million or 11.0% of sales, representing a 60 basis points increase year-over-year. LSI also generated free cash flow of $38.0 million for the full fiscal year.
The company successfully completed the acquisition of EMI Industries for $50 million in cash during the fourth quarter, which contributed $18.1 million in net sales for the quarter. However, excluding EMI, sales declined versus the prior year period, primarily due to lower demand in the grocery vertical. The company attributed the lower grocery sales activity to the proposed merger of two large industry participants, which remains under regulatory review at this time.
LSI Industries' President and CEO, James A. Clark, highlighted the company's solid financial performance in the fourth quarter, emphasizing the strong execution despite fluctuating demand levels. The company achieved adjusted EBITDA of over $51 million for the full fiscal year, maintaining its record prior-year level, and expanded the EBITDA margin by sixty basis points to 11.0%. LSI also exited the fiscal year with a healthy balance sheet and a net leverage ratio of 1.0x, including the acquisition of EMI in April. The company had approximately $50 million of cash and availability under its existing credit facility as of June 30, 2024.
LSI Industries declared a regular cash dividend of $0.05 per share payable on September 3, 2024, to shareholders of record on August 26, 2024.
Clark expressed optimism about the company's prospects in fiscal 2025, indicating expectations for growth resumption in the grocery vertical and a strong display solutions backlog for the refueling/c-store market. He also highlighted the company's continued investment in innovation, with over twenty-five new or enhanced products introduced in fiscal 2024 and a steady pipeline slated for launch in fiscal 2025.
The company's fourth quarter display solutions sales increased by 22% compared to the prior year period, driven by the partial quarter impact of the EMI acquisition. LSI Industries also experienced generally stable demand conditions across most of its vertical markets in the fourth quarter, with sales 4% below the prior year.
As a result of these announcements, the company's shares have moved 0.3% on the market, and are now trading at a price of $14.77. If you want to know more, read the company's complete 8-K report here.
