Exhibit 99
FOR IMMEDIATE RELEASE
DATE: SEPTEMBER 9, 2005 | CONTACT: BOB READY OR
RON STOWELL
(513) 793-3200 |
LSI INDUSTRIES INC. REVISES OPERATING RESULTS
FOR THE YEAR ENDED JUNE 30, 2005 BY $0.02 PER SHARE
Cincinnati, September 9, 2005 – LSI Industries Inc. (Nasdaq:LYTS) today revised operating results for the year and fourth quarter ended June 30, 2005.
Financial Highlights
(In thousands, except per
share data; unaudited)
| Three Months Ended
June 30
| Year Ended
June 30
|
|---|
| Revised
| Previously
Reported
| Revised
| Previously
Reported
|
|---|
| Net Sales | | | $ | 71,992 | | $ | 71,992 | | $ | 282,440 | | $ | 282,440 | |
| Operating Income | | | $ | 6,808 | | $ | 7,583 | | $ | 23,026 | | $ | 23,801 | |
| Net Income | | | $ | 4,106 | | $ | 4,575 | | $ | 14,636 | | $ | 15,105 | |
| Earnings Per Share (diluted) | | | $ | 0.20 | | $ | 0.23 | | $ | 0.73 | | $ | 0.75 | |
| Revised
6/30/05
| Previously
Reported
6/30/05
|
|---|
| Working Capital | | | $ | 67,189 | | $ | 67,189 | |
| Total Assets | | | $ | 172,637 | | $ | 172,637 | |
| Debt | | | $ | -- | | $ | -- | |
| | | | | | | | | |
| Shareholders' Equity | | | $ | 138,040 | | $ | 138,509 | |
As a result of the Company changing the distribution method for its deferred compensation plan in April 2004 from one of issuing shares of Company stock to terminated participants to one of issuing cash, it was determined that this plan is now subject to variable accounting. Therefore the shares in this plan were required to be “marked-to-market” which resulted in a $469,000 non-cash net of tax expense and a similar net long-term liability being recorded to reflect the market price of the Company’s common shares at June 30, 2005. The attached condensed income statements and balance sheets reflect the revision. The Company intends to change its deferred compensation plan so as to eliminate variable accounting treatment.
Bob Ready, President and Chief Executive Officer, commented, “We had a great year in fiscal 2005 and, naturally, I was very disappointed to learn yesterday evening that it was concluded that a $0.02 per share adjustment was required. I want to reassure shareholders that this non-cash charge is highly technical in nature and does not in any way reflect on our general operations. We remain optimistic about the outlook for our business and look forward to higher sales and earnings for fiscal 2006.”
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LSI Industries Inc. Fiscal 2005 Results
September 9, 2005
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
This document contains certain forward-looking statements that are subject to numerous assumptions, risks or uncertainties. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “may,” “will,” “should” or the negative versions of those words and similar expressions, and by the context in which they are used. Such statements are based upon current expectations of the Company and speak only as of the date made. Actual results could differ materially from those contained in or implied by such forward-looking statements as a result of a variety of risks and uncertainties. These risks and uncertainties include, but are not limited to, the impact of competitive products and services, product demand and market acceptance risks, reliance on key customers, financial difficulties experienced by customers, the adequacy of reserves and allowances for doubtful accounts, fluctuations in operating results or costs, unexpected difficulties in integrating acquired businesses, and the ability to retain key employees of acquired businesses. The Company has no obligation to update any forward-looking statements to reflect subsequent events or circumstances.
About the Company
LSI Industries is an Image Solutions company, combining integrated design, manufacturing, and technology to supply its own high quality lighting fixtures and graphics elements for applications in the retail, specialty niche, and commercial markets. The Company’s Lighting Segment produces high performance products dedicated to the outdoor, architectural outdoor, indoor, architectural indoor and accent/downlight markets. The Graphics Segment provides a vast array of products and services including signage, menu board systems, active digital signage, decorative fixturing, design support, engineering and project management for custom programs for today’s retail environment. LSI’s major markets are the petroleum / convenience store, multi-site retail (including automobile dealerships, restaurants and national retail accounts) and the commercial / industrial lighting markets. LSI employs approximately 1,600 people in fifteen facilities located in Ohio, California, New York, North Carolina, Kansas, Kentucky, Oregon, Rhode Island, Tennessee, Texas and Washington. The Company’s common shares are traded on the Nasdaq National Market under the symbol LYTS.
For further information, contact either Bob Ready, Chief Executive Officer and President, or Ron Stowell, Vice President, Chief Financial Officer, and Treasurer at (513) 793-3200.
Additional note: Today’s news release, along with past releases from LSI Industries, is available on the Company’s internet site at www.lsi-industries.com or by email or fax, by calling the Investor Relations Department at (513) 793-3200.
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LSI Industries Inc. Fiscal 2005 Results
September 9, 2005
LSI INDUSTRIES INC.
Condensed Income Statements
(in thousands, except per
share data; unaudited)
| Three Months Ended
June 30
| Year Ended
June 30
|
|---|
| 2005
| 2004
| 2005
| 2004
|
|---|
| Net sales | | | $ | 71,992 | | $ | 66,690 | | $ | 282,440 | | $ | 241,405 | |
| Cost of products sold | | | | 52,886 | | | 52,432 | | | 210,144 | | | 181,883 | |
| Gross profit | | | | 19,106 | | | 14,258 | | | 72,296 | | | 59,522 | |
| | | | | | | | | | | | | | | |
| Selling and administrative expenses | | | | 12,298 | | | 12,304 | | | 49,084 | | | 45,488 | |
| | | | | | | | | | | | | | | |
| Goodwill Impairment | | | | -- | | | -- | | | 186 | | | -- | |
|
| |
| |
| |
| |
| Operating income | | | | 6,808 | | | 1,954 | | | 23,026 | | | 14,034 | |
| | | | | | | | | | | | | | | |
| Interest (income) expense, net | | | | (13 | ) | | 66 | | | 153 | | | 237 | |
|
| |
| |
| |
| |
| Income before income taxes | | | | 6,821 | | | 1,888 | | | 22,873 | | | 13,797 | |
| | | | | | | | | | | | | | | |
| Income tax expense | | | | 2,715 | | | 725 | | | 8,237 | | | 5,107 | |
|
| |
| |
| |
| |
| Net income | | | $ | 4,106 | | $ | 1,163 | | $ | 14,636 | | $ | 8,690 | |
|
| |
| |
| |
| |
| Earnings per common share | | |
| | | | | | | | | | | | | | | |
| Basic | | | $ | 0.21 | | $ | 0.06 | | $ | 0.74 | | $ | 0.44 | |
|
| |
| |
| |
| |
| Diluted | | | $ | 0.20 | | $ | 0.06 | | $ | 0.73 | | $ | 0.43 | |
|
| |
| |
| |
| |
| Weighted average common shares outstanding | | |
| | | | | | | | | | | | | | | |
| Basic | | | | 19,818 | | | 19,735 | | | 19,782 | | | 19,717 | |
|
| |
| |
| |
| |
| Diluted | | | | 20,226 | | | 20,046 | | | 20,087 | | | 20,038 | |
|
| |
| |
| |
| |
Condensed Balance Sheets
(in thousands, unaudited)
| June 30, 2005
| June 30, 2004
|
|---|
| Current Assets | | | $ | 98,804 | | $ | 97,123 | |
| Property, Plant and Equipment, net | | | | 51,084 | | | 54,152 | |
| Other Assets | | | | 22,749 | | | 23,457 | |
|
| |
| |
| | | | $ | 172,637 | | $ | 174,732 | |
|
| |
| |
| | | | | | | | | |
| Current Liabilities | | | $ | 31,615 | | $ | 32,399 | |
| Other Long-Term Liabilities | | | | 2,982 | | | 13,470 | |
| Shareholders' Equity | | | | 138,040 | | | 128,863 | |
|
| |
| |
| | | | $ | 172,637 | | $ | 174,732 | |
|
| |
| |
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