The following is a summary of the LSI Industries, Inc. (LYTS) Q3 2024 Earnings Call Transcript:
Financial Performance:
LSI Industries saw an 8% decrease in total sales for Q3 of FY 2024 but had a 14% increase in adjusted net income YoY.
The adjusted gross margin improved by 160 basis points, contributing to net income and margin expansion.
Adjusted EBITDA margin grew by 80 basis points to 10.4% with adjusted earnings per share increasing by $0.02 to $0.21 a share.
The acquisition of EMI Industries is expected to be immediately accretive to LSI on an adjusted earnings per share basis.
Business Progress:
LSI announced the acquisition of EMI Industries, aligning with their strategic goal to reach $800 million in sales and 12.5% in EBITDA by 2028.
The company plans to focus on significant organic growth, and aims to overcome the ongoing slowdown in the grocery vertical.
Operational synergies between EMI and LSI's JSI component are being explored, along with new product development opportunities.
Integration of EMI into LSI has begun, with both companies expected to reap substantial benefits.
In terms of their labour costs, despite current wage inflation trends, LSI doesn't anticipate any significant changes due to their approach of offering competitive wages and prioritizing employees.
More details: LSI Industries IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.