This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

LSI Industries Inc. Reports Operating Results For The Second Quarter And First Half Ended December 31, 2012

Stocks in this article: LYTS

Cash Dividend Actions

In December 2012, the Board of Directors accelerated payment into December 2012 of the fiscal 2013 second quarter regular quarterly cash dividend of $0.06 per share.  Also, an additional cash dividend of $0.12 per share was paid in December 2012. The indicated annual cash dividend rate for fiscal 2013 is $0.24 per share. The declaration and amount of any cash and stock dividends will be determined by the Board of Directors in its discretion based upon its evaluation of earnings, cash flow requirements and future business developments and opportunities, including acquisitions, if any. 

Company Comments

Robert J. Ready, Chief Executive Officer, commented, "As I write this message early in the third quarter, I am pleased to say that we now have before us a world-class opportunity that has the potential to have a major positive impact on our lighting revenues later this fiscal year. But first I want to comment briefly on our second quarter. Results were heavily impacted by a number of accounting elements. First, we took a goodwill impairment charge of $2.14 million in our Electronic Components Segment in connection with our acquisition of Virticus. This was a non-cash charge and should not be interpreted as a reduction in our intermediate and long-term outlook for this important part of our company. Virticus is making solid progress and is an important part of our 'one-stop' capabilities. Second, during the quarter we also conducted a careful and rigorous analysis of our inventory, particularly as it related to our technologically advanced solid-state products and components. We have been on the leading edge of developing new solid-state LED products, including technology advances, since we entered the market with the acquisition of SACO Technologies in 2006. As such, we have had to cope with adjusting our inventory levels and obsolescence factors on a different and more rapid basis than our conventional lines of lighting products. After careful review, we decided to take the conservative, and we believe appropriate, position of providing an additional inventory reserve in the aggregate amount of $1.9 million (approximately $1.6 million after a U.S.-only tax benefit) during the second quarter. The result of these inventory reserves is an improved quality of an already strong, debt-free balance sheet. As a further accounting action, we reduced the contingent earn-out liability related to the acquisition of Virticus, and thereby recorded pre-tax income of $705,000 ($511,000 after income tax effect) primarily under the category of Corporate Administrative expenses. We believe these actions were appropriate and will provide greater clarity and visibility into the earnings of LSI Industries as we move through the second half of fiscal 2013 and into fiscal 2014.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs