Cash Dividend Actions
The Board of Directors declared a regular quarterly cash dividend of $0.06 per share payable May 14, 2013 to shareholders of record as of May 7, 2013. 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.
Robert J. Ready, Chief Executive Officer, commented, "Looking at the third quarter ended March 31, 2013, from a segment viewpoint, Lighting increased 1.4% ($658,000), Graphics increased 46.6% ($4,170,000), Electronics decreased 4.6% ($214,000), and the All Other Category decreased 52.3% ($1,399,000). Taken as a whole, total net sales increased 5.1%, or $3,218,000 from the same quarterly period of the prior fiscal year. Before an additional goodwill impairment and reversal of the tax impact of a contingent earnout liability, we operated at a breakeven basis during the most recent quarter. We would have had better operating results had we not made a major transition to stronger lighting sales representation in several geographic markets. While this action caused a short-term negative effect on sales, we believe it will result in the enhancement of our long-term market position.
"What about the future? We see a very strong future for LSI Industries. This optimism is being driven by (i) our flow of new products (particularly solid-state LED lighting solutions), (ii) our recently acquired and implemented capability to integrate controls into products that address the fast growing lighting controls part of the market, (iii) the generally favorable growth prospects for our niche and commercial / industrial lighting markets and (iv) our recent changes in independent sales representation in the C & I lighting market.
"Particularly important is demand that is being driven by energy-efficient lighting and graphics renovation projects. LSI is one of the leading lighting and graphics companies that is dedicated to providing a wide range of advanced solid-state LED products to the marketplace. At present, approximately 35% of our total lighting sales are from this platform. In certain of our niche markets this percentage is substantially higher. We introduced our Sterling™ (XSB) LED area light in April. This patented design features angled LED optical assemblies which are purposely positioned to deliver light with precision control for greater uniformity, increased distance between pole assemblies and greater overall lumen performance than any of our previous LED designs. As a result, fewer light assemblies are required, translating into lower energy and installation costs with a faster payback.