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LSI Industries Inc. Reports Operating Results (10-Q)

January 31, 2011 | About:
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10qk

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LSI Industries Inc. (LYTS) filed Quarterly Report for the period ended 2010-12-31.

Lsi Industries has a market cap of $183.9 million; its shares were traded at around $7.65 with a P/E ratio of 30.6 and P/S ratio of 0.72. The dividend yield of Lsi Industries stocks is 2.61%.Hedge Fund Gurus that owns LYTS: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns LYTS: Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Fiscal 2011 second quarter net sales of $74,805,000 increased $5.4 million or 7.8% as compared to the same period of fiscal 2010. See Note 4 to the financial statements for discussion of the retroactive reclassification of the Company s reportable business segments. Net sales were favorably influenced by increased net sales of the Lighting Segment (up $3.8 million or 8.7%), Graphics Segment (up $1.5 million or 7.6%), and the Electronic Components Segment (up $0.9 million or 19.7%). Net sales were unfavorably influenced by decreased All Other Category net sales (down $0.7 million or 35.7%). In the second quarter of fiscal 2010, the Company recorded certain pre-tax acquisition-related fair value inventory adjustments totaling $87,000 -- see the paragraph below regarding Non-GAAP Financial Measures. There were no such similar significant expenses in fiscal 2011. Net sales to the Petroleum / Convenience Store market, the Company s largest niche market, were $34,976,000 or 47% of total net sales and $31,925,000 or 46% of total net sales in the second quarter of fiscal 2011 and 2010, respectively. The $3.1 million or 10% increase is primarily due to increased net sales to customers other than 7-Eleven, Inc., who is replacing traditional canopy, site and sign lighting with solid-state LED lighting ($1.5 million decrease). The Company has completed 7-Eleven s conversion to solid-state LED lighting at the non-petroleum retail sites in the second quarter of fiscal 2011, with some additional sites flowing over to the Company s second half of fiscal 2011 . Net sales to this petroleum / convenience store customer are reported in both the Lighting and Graphics segments.

Fiscal 2011 first half net sales of $154,626,000 increased $17.6 million or 12.8% as compared to the same period of fiscal 2010. See Note 4 to the financial statements for discussion of the retroactive reclassification of the Company s reportable business segments. Net sales were favorably influenced by increased net sales of the Lighting Segment (up $11.6 million or 14.0%), Graphics Segment (up $5.4 million or 13.2%), and the Electronic Components Segment (up $2.2 million or 28.7%). Net sales were unfavorably influenced by decreased All Other Category net sales (down $1.7 million or 36.0%). In the first half of fiscal 2010, the Company recorded certain pre-tax acquisition deal costs and acquisition-related fair value inventory adjustments totaling $1,126,000 -- see the paragraph below regarding Non-GAAP Financial Measures. There were no such similar significant expenses in fiscal 2011. Net sales to the Petroleum / Convenience Store market, the Company s largest niche market, were $69,944,000 or 45% of total net sales and $52,890,000 or 39% of total net sales in the first half of fiscal 2011 and 2010, respectively. The $17.1 million or 32% increase is primarily due to a program with 7-Eleven, Inc., who replaced traditional canopy, site and sign lighting with solid-state LED lighting ($10.2 million increase). The Company has substantially completed the conversion to solid-state LED lighting at the non-petroleum retail sites in the second quarter of fiscal 2011, with some additional sites flowing over to the Company s third fiscal quarter. Net sales to this petroleum / convenience store customer are reported in both the Lighting and Graphics segments.

Second quarter fiscal 2011 LED net sales of $17,585,000 were down $0.9 million or 5.1% from the same period of the prior year. The $17,585,000 total LED net sales and the $0.9 million reduction are primarily the result of Lighting Segment LED net sales of $16,017,000 (up $2.0 million or 14%), Graphics Segment LED net sales of $1,166,000 (down $3.1 million or 73%, primarily due to lower LED sports screen sales) and All Other Category LED net sales of $402,000 (up $0.2 million or 71%). First half fiscal 2011 LED net sales of $34,258,000 were down $2.3 million or 6.2% from the same period of the prior year. The $34,258,000 total LED net sales and the $2.3 million reduction are primarily the result of Lighting Segment LED net sales of $28,674,000 (up $7.3 million or 34%), Graphics Segment LED net sales of $4,291,000 (down $9.6 million or 69%, primarily due to lower LED sports screen sales) and All Other Category LED net sales of $1,293,000 (level with the prior year).

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