LYTS - Earnings call transcript Q4 2022

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Operator

Greetings and welcome to LSI Industries' Fiscal Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jim Galeese, Chief Financial Officer. you. Thank

begin. may You

James Galeese

In and Investor of before conference this our for morning, call will for reconciliation and the Information fourth call I'll the the XX-K. prepared www.lsicorp.com. begin Chief and press conclusion call year Clark. commentary be fiscal call everyone, we also responses release, to Safe Jim these remarks will the statement, a materially. conference on management's business a fiscal results well portion posted at for Such may detailing fourth summarizing statements statements and We recent of release, press press forward-looking Today's XXXX conference results. full refer complete risks that, quarter and presentation I results. as and of XX-Q. and in today's release market improved results. remarks, and you release open LSI President will that contained At questions. could our outlook. our With measures as in operating XX-K in quarter with full transparency are A include thank Harbor actual line about most and morning, of year this included which non-GAAP throughout joining. our opportunities appears our involve this we contained with website morning's differ to questions the over certain call turn results and you presentation non-GAAP today's in issued our note conjunction Relations referenced GAAP Please is Good opened corporate this our our Executive to Officer,

James Clark

us morning Jim for you today. and you, Thank all. Thank good joining

we're is had and here our As story great short The year full version you a year. we of the quarter results. fourth know, discussing

short back ago Before let take three into a we the specifics, you me XXXX. years go to

energy-saving, grocery growth, value for fit. for like space. look the the of had of vertical a low with choosy to wanted that stores, that market level, compete was and was matched signage were lighting, to development in with feel a was perfect flat. management disrupted double-digit sustainable in and We which up their the competencies, guys Whole we ingredients company The shareholders new as bit a outdoor provided a new and we our coupled $XXX bigger with markets, it design better selected. approximately a out right vertical achieve. pandemic, million company on $XXX by LSI time our buildings. We market well were would grocery. grocers customer big we high in a the could execute a to teetering our and make add remodel customers sat was recognize markets the felt and with there We momentum the company put Market, and workforce, was groceries were in maintenance our down good million, vertical before entrants, We our we together on We XXXX, focus in we and and around trying team, we example that traditional on experiences made our The the Sales Back will company's a the a graphics and Amazon. with change before a that engaged were a a company. EBITDA where selection to at differentiate Fresh commitment plan, agents, was and real about be key to our relationship looked differentiation specific opportunity being of store As set X%, and ourselves for XXXX. believed we value we EBITDA strengthen Foods, different efficiency, core and A partner. opportunities

offered quality, modern interior of and to efficiency graphics, engaging the the we store. signage high lighting, indoors, with indoor high Moving

of We that also off on offered lot solution and burden them store the product management team focus allowed -- project the a to full management a other and took activities. turnkey

the into JSI and further as solutions providing. grocery we looked complement Looking great to a vertical, and value ways we're we already for our increase the identify grow fixtures to

the was a to and refrigerated part is added XXXX, and our create stores JSI from as able With a feel replacing time we come look the forward. propel the acquisition continuity is strong we're these the vertical history. can C solutions have markets, other only first in the number products one that represent standalone the grocery This possible year in and displays grocery vertical of opportunities feel and of in company's one when May as growth to we us continue refueling stations and be for best market company. just The we

sales our Given into our reach. EBITDA in fourth as total of within by XXXX. of the pricing and of for $XXX for sales underpinned a million over the would margin of year, robust $XXX Great first goal today, well very adjusted pipeline all discipline, a theme management, execution celebrate and each adjusted quarter, be our million as fourth X.X% we $XXX million work with XXXX. And with and sales quarter X.X% clearly all in this quarter consecutive quarters revenue EBITDA we the

or we'll assured be be target. to our can sitting out down in next the You two, plan next quarter

said, reason to have celebrate. I we good As

those merely not shown put We our results. plans we the action about plans, into have and but talked have

overseas. chain to our that in ability number the we moved deliver of At much with almost half materials our in of we to on chain Along our Going of back supply were around our the The while were move, coming $XX of made products today domestic year. and XX% sourcing say interfering the I'm we around is our to transportation We also levels. XX% inventory million reassure from happy XXXX, of American and to our possible. XX%, decided first supply that time, the North almost increase that lumpiness to chain by the time. to suppliers. decision as strategically as our inventory with delays supply increased

for availability. lot you will that mean customers parts some flow of uncertainty which has And improved share the -- we partner. start of of we and that some manufacturing our manufacturing As our It our cannot sense and take have our tune quarter market you I and resulted of inventory down competitors. good the our expect for already customers, half stickiness Simply know, be bringing doing to we took our I was said, we did and positive to impacted have may not commitments out processes. the remain and in noticed. fourth our by We new our in reliability time. of maintaining levels and performance level so, not It it these as in basis, expect process maintain with on free cash overall levels profitability, have year. But in inventory delivery. stop strong our a a elevated bit maintained. just third we created inefficiencies which the as that are improved performance and and With and was put, does by to was noted, cash the flow, and a limited this processes because that a in higher noticed makes agents, reduced a comparable This first effectiveness on-time inventory level

continue and participation, and opportunities None without flow of Given has The a of create a to execution people constant and any that around business this person. charge this truly continue order and people not X.X%. to to and good company can I around debt see or I note that, you our remarkable. but can and The can continues this to reminds and economy, good down excited times. have with times exhausting. The a it engagement, and LSI the closing, debt look momentum take the is to provide. of cash are last in recognize because hard not people want strong team also years saying and our leadership dedication we've into and agents you you of I'm solid our times. at hope We're as are we be I'm that the we our $XX been the just year strong strong almost million the other the about tell that close great will easy see to you take debt would possible partners. along I people, few good leading narrative our me X,XXX continue our leaders. we new of broader on business confident have create In times I of employees people LSI strong of and that be the continues consider team pleased This hard thank corner But quote below perform. improved create and robust developed. activity is and say to ratio will

turn We look have over to closer that, at call runway front I'll for us. numbers. the a of Galeese With of a back lot Jim in the

James Galeese

$XXX finished quarter. of growth. prior Jim. you, a both improved fourth segments QX from with million, significant We Fiscal Thank year, XX% fiscal over earnings fourth XX% growth quarter with a Net sequentially XXXX increase reportable also sales were significantly. strong record generating a

million, last share and diluted adjusted $X.XX increasing productivity year. points with As target share to our to selling basis increased operating price focus EBITDA management Margin EBITDA XXXX sales. adjusted were verticals was last improving in fourth impacts all discipline points levels and $XX.X per the inflationary attained growth and year to the XX% our XXX or expansion over non-GAAP sales basis margin business a aligned X.X% earnings compared fiscal XXX throughout contributed market $X.XX strong expansion. cost highest margin versus with adjusted of year. last to quarter, and And per Incremental

to income growth all million, at year, last level throughout sales to XX% the year, earnings EBITDA despite XXXX. to four share year-over-year year. Sales increased generating For to year, record above million. fiscal increase quarters environment. and the significant the adjusted Adjusted prior versus challenging $XXX Adjusted improved above and million, $X.XX $XX business XX% with fiscal net a diluted or $XX per to earnings operating XX% executed a a increased high $X.XX

fiscal the to in inventory, of these in purposeful And levels calls of challenges higher the half results allowed to discussed adjusted highest supply sales first EPS chain attainment conversion improving number support reduce EBITDA the supply decision the invest of a cash. mitigate fact, chain earnings us growth. in QX, previous to specifically to to In in contributing We inventory and year, in a years. represent and rate

key increases the lightning for for income from substantial the in to the adjusted net increased net million debt successfully flow serve to prior XX-month and growth vertical XX% cash both with quarter, segment to continuing margin increased trailing regular in price cash shareholders $X.XX declared QX reflecting Improved points fourth payable XXX on share XXth. and a August both per dividend flow basis inflation. and segments in generated reduce in QX, times. A Sales $X strong As of achieved free leverage sequentially $XX Xth to additional of sales in the of Lighting year-over-year markets. segment was to record QX, quarter, EBITDA a September to Shifting year. lowering quarter. operating X.X year, for improving debt in gross XX% rate aligning cash selling performance, the prior result, ratio million of long-term volume to above

was fiscal stock JSI and efforts, with XX% programs printed quotation order not product cases XX% marketing ratio year. multiple multiple in the graphics quarter the project year, and a the with in over investment versus approximately users, last supports driven had our Solution also activity, by grocery three Lighting sales in for increased both quarter display book-a-bill the month by channels. the by a channel products, lighting XXXX partners prior by year, favorable expanded led restaurant utilizing and key only selling and led availability, distributor our through both double-digit several and enters in selling Display demand effective continued was XX%, across Growth and continued and growth multiple Growth quick-serve vertical. solution momentum new Fourth backlog This grocery fiscal strong incremental For our several factors; segment inventory. verticals X above increased growth sales approach last market balanced with accounts. with enabled end verticals. chains, grocery solid our but was for for we're national realized

our from supporting through and the received and We begun fiscal menu to QSR board the continue Activity XXXX resulting have -- in and execute successfully will program major run performance. digital awards beyond. additional XXXX both initiated fiscal for

the increased Display the quarter the fiscal down rebranding fiscal acquisition, XX% program full occurred increased site Display except in is back XXXX. proposal in as Program turnkey remain remains realized to Fundamentals we slightly XXXX $XX.X company because product market and the a first the sales. very favorable for both Solution including I and now Rico. refueling, Solution which We more call recently will of impact million this All ongoing sales installation for XXXX. return million major revenue a JSI delays. operating was the high for or activity X.X% received the new XXXX vertical solution, fiscal sales increased For oil verticals including construction to the half and our in providing of year, fourth enter however, level, at Puerto markets from services moderator. of a we segment a which income Solutions outlook Fiscal in positive will than program anticipate of locations $XX the fiscal this generate Display of

Operator

Thank Please time, you. line gentlemen, Dayal this Wainwright. your question. Ladies of H.C. with Our we proceed from question-and-answer will session. Instructions] [Operator conducting Amit a first and the comes question be with at

Amit Dayal

you. questions morning of Appreciate everyone. questions. taking my Good you outlook. just the my on based Thank Most are

like $XXX it it XXXX? For be could there. you're that fiscal next revenue to for Would looks too the million XXXX, number to that in assume hit year, relative target you aggressive almost

James Clark

are we to to and hear Well, make quarter a first always -- very will just generated lot the $XXX about or we're on I where not the There's hit and on what based it. momentum going Amit, want to we trying say sure positive all, always of the deliver trying I I but environmentally, we've be way that our I'm joining I'm we we're thanks certainly we say. in to -- feel challenges. don't the last first on -- positive commit can there's for year. about good to million, still the years, to you. over feel that, few of I

Amit Dayal

operating income If know, fiscal then guys? at by XXXX revenues operating while you of over more significantly, improved for has can grew level we sort I And Understood. think, EBITDA grew adjusted expect adjusted this XXX%, leverage XX%. you least by, steady the in your a margins for of fashion

James Galeese

a hard This Yes, needed Yes, our hi, we Jim you work we couple identified here. if years, is of Amit. on to that Galeese margin worked we've go back expansion.

And several look so we've if what do EBITDA initiatives this you of at that initiatives proud operational both And accident. very and in work our maintain we're to where years accomplished last It's it's levers, levers, going we're over area, can commercial and no of that. continue forward. and multiple to the moving both and enhance to operating and we see involved margins continue those both we

Amit Dayal

Understood.

was quarter fourth the Is XXXX? entering the of ratio book-to-bill quarter X.X. first stronger it Your entering

James Galeese

Amit. sorry, I'm

James Clark

It was book-to-bill X.X-- at ratio

James Galeese

QX but into and right -- a daily it's we're remaining look obviously, we take that -- at it at mean, I level. coming it, yes, its level at And that

Amit Dayal

in guys, maybe the give more a And mix, little could revenue just the different of a is granularity bit percentage the on backlog you maybe sources? in from what mix, terms

James Galeese

it unbalanced. two segments we're back And we And Solutions Display reportable today, were It's XX/XX. years, staying and Our couple It's are there. go there. if Lighting. stays you a XX/XX;

large is and to now, that standpoint, from smaller projects and of work couple We mixed right a But most it's Display a of then XX/XX it have Solutions. we product. Lights tend infill

Amit Dayal

in such Thank this a type to strong environment. see you, Jim. good of execution Really

offline. congratulations take that. questions I'll on So, you. other Thank my

James Galeese

Amit. you, Thank

Operator

George the your with Our next question. question Please of Canaccord. Gianarikas with proceed from line comes

George Gianarikas

it. my Appreciate questions. taking Hey, guys. Thanks for

maybe the comfortable start, marketplace? curious you led Just and that then as decision the loosening in reduce such what marketplace to continue, Thanks. down to things seeing to in inventories to your get felt the Are chain share I'm supply that inventory? a to bringing then position you gain increasing suggests

James Clark

joining. for you thank George, Yes,

hit head, more couple reliable. just supply kind issues of strengthen the You and seeing on we're the nail a get of the

got $XX we And million heavy. we so to that we I think ever knew be. about wanted excessively don't where is

that see likely you're we're heavier I year-over-year on us carrying for a to comparable, come a inventory, to think to going in. going on years basis

James Galeese

levels. historical From

James Clark

we is it to historical have -- reason and had of that that had. out is. variation some or weaker from of be of reducing we chain be in some -- And do And diligent all or anything the that, about improvement. positions It definitely that levels. we seen Yes, taking take not for like supply has it to with transportation to but is want sales we the and some nothing want volume to that. advantage That's and

those it Just we as of an see items have stabilized some and opportunity.

George Gianarikas

an with? maintain curious higher I'm versus some math as do have assuming how just Is to that works you technology there's to Just obsolescence inventory there opportunity for levels? that guys? even versus balance still you'd out buybacks you How that deal I'm to

James Clark

last at had at us we is really sufficient a availability we way it just was is and to Yes, carry product. ship the to through right, made to advantage don't that. manage things. I sure we driven backwards we availability, years, of we made want that to us been able is the we from that and inventory be over key try what risk. One couple And inventory And so said, competitive couple we try -- not significant and felt a you we the of the looked to that components about highest the for that's have were the our think working orders that ones by sure

want use something we've not done last at get really do and performance, also products. towards is line. obsolete. uniformity to our reengineering the The on element we And at is in that years over is cost, moving part looked parts down of We something three our reengineering was product that second just but we across look But technology obsolescence. upside that

went ago, a obsolescence. with big And from for XX% us have and for then about reliable XX/XX offshore we lever XX% those, and who more this back Today, that us stock to where the move the that's So, subject particular, North could on of supply part XX/XX anything is to pre-pandemic, like about But our up in against even offshore. getting four in onshore we're were third to said, chain very obsolescence. hedging careful if is, I be years domestic would offshore was in We about we plan. about known, it you but did we're tried we were offshore, America. we

And just give us that down take bit. of so of kind all inventory little three opportunity those a an levers to

James Galeese

George, couple challenges. the Jim the process new in, ongoing really Galeese here. done a last of that, supply phase the number launched job nice despite In And we've a right. chain record on phase we've years, of products, out

So, to the we new moving go of just effectively. confident forward that we're phase-out or to we're technology be as inventory situation phase-in to continue able manage to products through changes going

George Gianarikas

so issues buttress hearing macroeconomic kind alluded full the second really steam and been your do Just from the the we're you weakness, to about has mean and much about share the strength customers any opinion in with results. great any that seeing that from in you to next mean, Or gaining some how you reading to guys call the business? balance up your are are juxtapose or what in the to you are strength you I paper of weakness? market read you putting economic about the -- I of question ahead? you're things business, that do yourselves And on you able you've versus anecdotes in

James Clark

happened early all terms a immune economy. or obviously, not to in No, go those type kinds publishing QX, business, slowdown certainly through the buy We're there's of look giving we're broader lot whether upgrades in are here at the we're that broader consumers But the QX before anything the we're to -- on in want We're gasoline slowdown of supply inflation we if by it. seeing a chain -- we places, aware look in in the -- at out know to not out different a made work points narrative we're us could from a we and, the as have demand seeing -- we're of I QX here, we all groceries, impact, new be we're seeing though, not you, here. to momentum work all do. of seeing pain issues not to you all quote although you not this, decisions at just and and the honestly, seeing that. things. evidenced preloaded machine, car, and if it's you want do to to When availability certainly numbers we're activity. just there to hard relative times We're look was economy, will ready the the is tell and I of, we're kind that our of

George Gianarikas

Got you, focus sort it. given can margin over what sales that year? you've the last we million or accompany assumed on should just that shown that targets of targets, us have leverage that And I similar $XXX your

James Clark

think you I three a Galeese more Jim mentioned lot capacity, say. is, got We when become did the as capacity we that restructuring and We levers get One margin. locations we've kept. more operations. did I'll But years we our earlier, we and can sold things some hits know, improves. to there's ago. we we get we absorb we bigger, utilization two efficient number efficient, properties. of some that we still We of of left that, Yes, maintain is as that And that consolidated we continue in pull a

to stabilize or the challenges automatically more you think, higher just storing, have we already and from that those right well you're very great. availability things efficiency as right that's and an chain of type those But But is, not is issues, work second you're because all the stabilize, we just do the have, believe, out there's to thing work now, things. in, need as put inventory the in assure built more still that's stabilizes. I we'll as benefit supply continue things supply lot of stabilize, standpoint, type reduce stabilizes, of that it's inventory, The continues as the things. around, workforce to us. to those those kind And of inventory. workforce a I chain inefficiency of the now worked moving reducing we more the Obviously, for

We have some benefit natural and margin. that efficiencies you'll will see that in

George Gianarikas

Thank maybe final question. you. And a

Any You little a of-- expect announced that great the buybacks, ended? is could buyback? you be which be number us open to on great. that. a it if Do guidance of Is timing you Thank And finished give guidance with certain that? on that'd you.

James Clark

team the is make look buyback just not said, it a and open that as did Board was our at a we Yes, sense. as definitely stock levels and at it trading ended and the management at,

more are bit says, the at us higher -- of And them or Our focus then the reason the that debt investments investments we be I as -- have debt of other and would productivity. and take -- well-defined. look the the money we terms gain pyramid. the capital investment we debt we can top that served of can that we and time. pretty do. activities think at opportunities. listen, make all might paying it little in we down we for kind opportunistic a being market, models make goes naturally reloading gives a in be market But flexible, generate that have best price the mix, We're why able your are some of only kind debt up, that return And some in maybe And buyback doing than hey, on because is think stock us, and to investment,

table, We it's less makes But the if that And else. sense. assured plans So, price get did up, as to we our mix. still it stock want it. trigger any would top as at pull or goes and again, less for can make the the depressed if have it the two, sense. it's be we're financial specific on I we three -- still optics to in act today, -- But you looking say can't it settled now, have right or top stock stock don't on we anything the obviously,

George Gianarikas

Well, a executing congratulations the thanks environment. quarter on tough and great time in a for taking and Thanks.

James Clark

George it say know you for thank was Yes, challenge. and enough taking the can't I a time. I

the appreciate I So, extra effort.

George Gianarikas

course. Of

Operator

from line Please of the Capital question next Rick - Accretive with Fearon proceed Partners. question. your comes Our

Richard Fearon

morning, on Jim another terrific congrats you. and Good Thank Jim quarter. and

James Clark

Thank you, Rick.

Richard Fearon

first question of growth much the ago, Jim constituting And company's transformed apparent forecasting that off So, of affairs of it's is started today just years round revenue you orders, three number business, into comparing more base. customers state the that today. a the by LSI's diversified more larger

out of the the commentary stability forecasting sales versus And ago, so that, transformation of whether with today company? of ironed around just as lumpiness years of wondered about your some three is predictability the the the the of sales, you it, see

James Clark

gamut -- have I forecasting question, I what market all that become ceiling our Environmentally, tiles commitments another is And do or stable, works. point, great then mean, trying more suppliers we've or much it sheetrock, customers surprise of, run not acoustical immune the a from a what the do time. would to our anybody's wire, a just from And new instability seen offset what that asphalt progress their it's company's them. and a better terms do, our think to point, our company's kind much current that don't what a and and I the another and much think economic of salespeople, agents and will we're the all yes, we'll standpoint, by from -- copper point lot that of we it. only environment. Rick, visibility, perspective our is and in is at it's better, in do, one parking agents I their better it's to it's rods. will but customers, think There's general, our so forecast And

activity and mentioned through to we've a bold what making I said you And But and be. the quote to forecasting as on remains strong. before, we follow order cars and time tell that the and So, to future it, statements every think strong, be cautious we historic it our I've said of very levels, activity in relative -- our any can book-to-bill this lot our remains there's elevated. remains I see beginning,

So, to will forecast be eight we're on indicators But more try just to and strong, be -- that optimistic. I don't out of guy generally, all six say I'm those I going but to me caught. very don't than spot I to for gets to want weeks, the say that be that

Richard Fearon

targeted? we talk And there that the provides to you cyclicality able verticals grocery things about regarding to Understood. I the less vertical, you some a additional Are the focus off which seem another speak that alluded is the it that to or petroleum. vis-à-vis some outside opportunities hold guess sales would verticals you to And of grow question, that on can you've the about greater these least leads in that Are hear at little probably should identified? today to you've that? to

James Clark

would federal, of Even that in powerful and do kind so go the offering there, using, to manage lot It's And important in Petro, remained just stations, the is holding went And They an in getting sure with and deployments petro, part refueling. around saw make of good. opportunities growth not just and It's to element start we are permitting of of been our refueling saw little slower menu state, were up infrastructure, my which identified these, it projects. to had projects. to already about win. of of When be guys, just, grocery have It's where specifics a be. vertical a one just under was the it's couple and to I won million have in with identified purposes. pandemic talked about forget, another ground in it's is component it's had mean I of in comments them, we still we've before that just we stay specific I rather if us that on our all narrowly combination of such Grocery these the on pressure, activity, big we're a because frankly, kind component It's management pandemic are something I for verticals frankly, shovel verticals, weaker. hold think we $XXX going and necessarily a we're that. and of for project any don't our put great disruption I I'd it's digital aren't very just converted, But bit underlying which municipality, that's the terms in nationwide grocery. local That's it them contract do with out and we frankly, accelerated And element that, and broader it is that same C one ability can was would not focused that that element for where tempo the folks It's expanded and wallet, us. off store formula not excess on share agents, our in they these some any to groceries, think the our we formula solution guys, create now we're that a on the that the and a petroleum recover. us. beginning, we right, an the with for like and want opportunity they're high interest. serves mean, side. things that a a quote. board, the far grocery. it's forecasted more

has for us. but very the under pressure, is projects are So, but we're be. up, Warehouse our it. that that's able automotive been times in win general the strong And that. relative that just, something share is frankly, under in pressure market that taking we we've think coming to serve right we been would it's almost to of Automotive, in now big we thought where four thesis a we've

of to because of that demand. we a came parts, our were important. uniformity shift between we caught, lot demand make that's So, what's meet The different most and products, and we our way able the again, weren't

So, don't others. like smaller going so not we're good to a we detract in, case do we're in of that from to group, it's the with I'll it Rick, verticals are in under just meet But our want If experimenting legs that a some this, in say things attention and that terms we're doing XX pan. velocity anybody We we going that of can don't we want in it flash the XX, requirements sustainability. we're of have to things growth invest, seven, and five go years.

Richard Fearon

you're sense. ago couple been experiencing regarding those have Thanks alleviated the of makes growth for as some that Understood, geographic then Jim. quarters a in slowdowns color, and And Mexico, well? that

James Clark

representation again, mean, or I'll of back still no it's Mexico, interest. Yes, expected. but we has up loss half what talk Again, I about on Mexico opened specifically of projects

broader fact is situation, do months up in has us approvals and that said, and ago, transactions In paperwork you -- release, desk, us, transactions up good of assets project, there. a Galeese's great Canada to estate very -- opened comments the which getting with nothing again, notice like customer permitting And Puerto Jim from a not and real With transfer size and government activity to of broadly up that a in in everything across but new customer, it's opened six Canada, that. but things with it kind this we've a project, good a in our we Rico when only picked for too. press had is petroleum definitely and

Richard Fearon

international And on to it's additional opening exciting just, up. I congrats mean, Yes, that. markets hear

The keeping continues lot to doing is the that going. momentum things kind just really Definitely improvement encouraging. be of and really two that So, -- other a with And respect to regarding impressive. questions margins curious margin I'm that's of right.

able your when of bundled niche-oriented the improve been gross can margin kind business, might to to on continue be higher these identify you're sort other in add sales ground of you've together projects on If that that margins?

James Clark

get site, Yes, it as want of doing by walk wallet, something we're where is, we great their as in delays I share right, else to of we're we managing it to we we're a management, mean, work accelerate goes back background, that solve confidence problems many of which pivot and might in us when gives the project And else. when can around we the customer, we're question. broader if flexibility delayed and happen going frankly to somewhere when on that while logistics tremendous can. to are And the something the

have have add. way We that to and -- things do think we're to it of contributing markets list constantly out a our a we a but scratching and list vertical of in, things we trying off could figure and we

the fortunate or have successful companies to and able are JSI a things with And ways we're you sideline. great it is in sourced example. might were that sometimes them products JSI company good with able we engineer was, kind very portfolio. to And the we to such get might a together these will. be that add sometimes conversations of, and be purposely to on if our strong

We have to like are of continue that, that. cards in. then that fall just in this and stock we the And we terms pursuing. in just a there's can and stock others we that the as have were out back list questions we to then invest we're it's lot things elevated, a goes those price after investments, of that to in And remains prioritization, reduction, debt place. there are on have about talking we long those things as some And of think focus do buyback,

Richard Fearon

where from repurchases. a just from is the valuations this frustrating, you addressed perspective, multiple encourage company is already trades at our all, compared into And kind are the of of one management all retire an to I your you're the it, be as that -- just than today's as you it's I Jim, of and of multiples loathe, like about to the times that the got some at for company have -- they trade it continues some buying which of and an those seems certainly but even should you're of sales shares. course, should of sit team -- to what And larger. And some sales, and we to benefit, commentary. with XX% sales, Thanks this even buying prices, soon JSI, comment, grows, to back there's business it's But it LSI that. that the dividend of is think of competitors, extraordinary come since more Board of opportunity you've discount. retiring And at a trades really that part like question less certainly, EBITDA would The -- believe your stock opportunity, payment. as just more JSI last more grow are this albeit, being perspective,

company about in as clearly grows as what up reflects that of EPS. going there more to a the is just So, my forward. those dynamic their count stock becomes course, profitable, valuation benefit be don't company dividends And extraordinary of anyway, to then. continue your share opportunity. valuation price, there's need an the shares you And think and encourage the well. paid I the improves to the some reducing And goes mind

some of belabor about the but continue not you deploying just to So, repurchases. thinking to encourage capital it further, into stock

James Clark

know me, management want fall Board. by ears, and to not if to execute rises we very it. I not the And you repurchase that will opportunity, best against on We not you to execute And appreciate deaf be team, if the the not optimistic. against I'll can I be this does stock that by want comment, by it assured, Rick. the --

Richard Fearon

Yes, you and at I value absolutely take on that. face

on Jim. for quarter hard So, work thanks, the And congrats and fantastic again. thanks a

James Clark

Thank you.

Operator

question-and-answer session. concludes the for This to call to I'd back hand our closing like management remarks.

James Clark

a year here. want of end I we're year. say happy this is -- that into actually new just new fiscal to We're year, the our

would But trying I'm a of work whole at I constantly thanks dynamic those for the listening how Our it. they the And as first quarter we as that very by is and angles. much from are all look how starting all outstanding and are we encouraged possible as solve in the it. team business things that almost have X,XXX very, I We're as to thank people is strong minute want or a also the team, the people be team, or I None just in, here. that to to effort. do. if take say just every And here, of team of and we members very and thanks. say chair, the they're didn't effort stronger solid we you members, do to to employees the are know off family want tell strong only that to how good want different this people And as and folks employees can't of now. I put management problems

thank forward the So, are next to for that for you call. or transcript, people reading on call the the and all interest the look the we'll taking

Operator

Thank participation. Ladies gentlemen, and your you for does today’s teleconference. conclude this

at this disconnect wonderful your time a lines and day. have may You

LSI Industries (LYTS) 18 Aug 222022 Q4 Earnings call transcript