LSI Industries Introduces Strategic Plan Update, Five-Year Financial Targets
“Fast Forward” Strategy to Deliver
MANAGEMENT COMMENTARY
“During the last three years, our team has demonstrated significant progress on our business transformation strategy, one that emphasizes targeted commercial expansion within higher-value, growth-oriented vertical markets, improved operational efficiency, and a disciplined approach toward capital allocation,” stated
“Having built a strong foundation for profitable growth, LSI will now seek to build scale through its distinct vertical market model, positioning us to deliver superior value to both customers and shareholders,” continued Clark. “Today, with the introduction of our Fast Forward strategy, we are publishing new, five-year financial targets. Over the next five years, we project net sales growth of more than
“In the current fiscal year 2023 ended
FAST FORWARD STRATEGY OVERVIEW
LSI’s Fast Forward Strategy seeks to deliver sustained commercial expansion, operational excellence and disciplined capital allocation, consistent with the Company’s focus on long-term value creation. Key elements of the Strategy include the following:
- Seek to expand “customer share” within existing verticals through a combination of new customer originations; increasing penetration of existing customer accounts; and expansion within adjacent, complimentary new applications/solutions
- Seek to expand “market share” into new high-value verticals, utilizing existing solutions in addition to adjacent, complementary new applications/solutions
- Continue the ongoing launch of vertical/customer specific new products, and build and scale new competencies and solutions, some of which acquired through targeted acquisitions
INTRODUCING FY28 FINANCIAL TARGETS
In conjunction with the launch of LSI’s Fast Forward Strategy, the Company has introduced FY28 financial targets for net sales, Adjusted EBITDA, and Adjusted EBITDA margin.
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FY23e |
FY28e |
5-Year Growth |
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Adjusted EBITDA ($MM) |
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Adjusted EBITDA Margin (%) |
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250 bps+ |
Consistent with the Company’s focus on disciplined capital allocation, LSI is committed to maintaining a long-term ratio of net debt to trailing twelve-month adjusted EBITDA of at or below 3.0x.
In conjunction with this press release, accompanying presentation materials are available in the Investor Relations section of LSI’s corporate website at www.lsicorp.com.
ABOUT
Headquartered in
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements may be identified by words such as “target,” “commit,” “estimates,” “anticipates,” “encourage,” “projects,” “plans,” “expects,” “can,” “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. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit https://investors.lsicorp.com as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230308005812/en/
INVESTOR CONTACT
720.778.2415
LYTS@vallumadvisors.com
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