CINCINNATI, June 20, 2007 (PRIME NEWSWIRE) -- LSI Industries Inc. (Nasdaq:LYTS) today announced that, based upon preliminary information and strong fourth quarter to date operating results, it is increasing its sales and earnings guidance for fiscal 2007.
More specifically, for the fiscal year ending June 30, 2007, management expects diluted earnings per share to be between $0.90 and $0.92 per share, an increase of between 27% and 30% over fiscal 2006. This higher guidance compares to management's previous guidance of $0.86 to $0.88 per share and analysts' "street" estimates ranging from $0.83 to $0.91 per share. Net sales for fiscal 2007 are now expected to be between $332 million to $336 million compared to the previous guidance range of $325 million to $335 million. Net sales and diluted earnings per share for the prior fiscal year were $280 million and $0.71, respectively.
In summary, diluted per share earnings are expected to increase between 27% and 30% over fiscal 2006 on a net sales increase of between 18% and 20%. The Company plans to release its fiscal 2007 operating results on August 23, 2007.
For the fourth quarter of fiscal 2007, management expects diluted per share earnings of between $0.27 and $0.29, an increase of between 23% and 32% over the same period of the prior fiscal year. Analysts' "street" guidance for the fourth quarter ranges from $0.20 to $0.24 per share. Net sales for the fourth quarter are now expected to be between $89 million and $93 million compared to the previous guidance range of $81 million to $91 million. Net sales and diluted earnings per share for the fourth quarter of the prior fiscal year were $72 million and $0.22, respectively.
Company Comments
Robert J. Ready, President and CEO, said, "As we have commented many times in the past, our business is subject to a number of customer decisions that can and do affect quarterly results, particularly as these decisions are related to large national re-imaging programs. The fourth quarter is a positive example of the highly favorable operating leverage we enjoy when volume increases as a result of higher program rollouts. We are currently in the early stages of several high-volume rollout programs that bode well for fiscal 2008.
"The Company's operating and growth strategies are working well and we expect fiscal 2008 and beyond to be very rewarding and exciting as we execute new opportunities, including our commitment to solid-state LED lighting and graphics. Soon, we will be providing the financial community with more information regarding our LED initiatives related to digital outdoor billboards, other digital signage, and LED-based commercial lighting fixtures and products.
"Our financial condition is strong. At March 31, 2007 shareholders' equity was $172 million, long-term debt of only $6.5 million has since been paid off, and the Company currently has unused commercial bank credit facilities in place totaling $57 million. We continue to review potential acquisition opportunities."
The Company's strong cash flow and balance sheet support our cash dividend policy. It is likely we will recommend to the board of directors another increase in the cash dividend rate during fiscal 2008 consistent with policy. Since establishing a regular cash dividend in 1989, the Company has increased its regular cash dividend rate fourteen times."
"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. The Company's Technology Segment develops and designs high performance light engines, digital signage and other products using LED lighting technology, including large format LED video screens for the entertainment and sports markets. 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 1,700 people in fifteen facilities located in Ohio, California, New York, North Carolina, Kansas, Kentucky, Rhode Island, Tennessee, Texas and Montreal, Canada. The Company's common shares are traded on the NASDAQ Global Select Market under the symbol LYTS.
The LSI Industries Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3646
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.