LSI Industries Q3 Net Sales Up 14%

By Chris Stiles • Friday, April 24 01:46 • Permanent Link

LSI Industries reported fiscal third-quarter net sales of $150.5 million, up 14% from a year earlier, as the newly completed Royston Group acquisition added six days of revenue. Excluding Royston, sales rose 9%.

Net income came in at $2.1 million, or $0.06 per diluted share, compared with adjusted net income of $9.6 million, or $0.28 per diluted share. The company said about $6.5 million of non-recurring items, mainly tied to the Royston deal, weighed on reported profit.

Adjusted EBITDA increased 34% year over year to $15.0 million, while the adjusted EBITDA margin improved to 10.0% from 8.5%, a gain of 150 basis points. EBITDA was $7.5 million.

The quarter included $6.6 million of sales from Royston, along with $0.1 million of net income, $0.6 million of adjusted net income, $0.4 million of EBITDA and $0.9 million of adjusted EBITDA. LSI said its own business generated $143.9 million of sales, $2.0 million of net income and $14.1 million of adjusted EBITDA before Royston’s stub-period contribution.

Free cash flow, excluding non-recurring acquisition-related items, was $11.8 million in the quarter.

LSI ended the period with a net debt-to-trailing 12-month pro forma adjusted EBITDA ratio of 2.7x and said it had about $100 million of cash and credit availability at March 31.

The company declared a quarterly cash dividend of $0.05 per share, payable May 12 to shareholders of record May 4. The market has reacted to these announcements by moving the company's shares -3.09% to a price of $18.81. Check out the company's full 8-K submission here.

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