LSI Industries Inc. (NASDAQ:LYTS) Q2 2023 Earnings Conference Call January 26, 2023 11:00 AM ET
Company Participants
Jim Galeese - Chief Financial Officer
Jim Clark - President and Chief Executive Officer
Conference Call Participants
George Gianarikas - Canaccord Genuity
Aaron Spychalla - Craig-Hallum
Amit Dayal - H.C. Wainwright
Operator
Greetings and welcome to the LSI Industries Fiscal Second Quarter 2023 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jim Galeese, Chief Financial Officer. Thank you, Jim. You may begin.
Jim Galeese
Good morning, everyone and thank you for joining. We issued a press release before the market opened this morning, detailing our fiscal second quarter results. In conjunction with this release, we also posted a conference call presentation in the Investor Relations portion of our corporate website at www.lsicorp.com.
Information contained in this presentation will be referenced throughout today’s conference call included are certain non-GAAP measures for improved transparency of our operating results. A complete reconciliation of second quarter GAAP and non-GAAP results is contained in our press release and 10-Q. Please note that management’s commentary and responses to questions on today’s conference call may include forward-looking statements about our business outlook. Such statements involve risks and opportunities and actual results could differ materially. I refer you to our Safe Harbor statement, which appears in this morning’s press release as well as our most recent 10-K and 10-Q. Today’s call will begin with remarks summarizing our fiscal second quarter results. At the conclusion of these prepared remarks, we will open the line for questions.
With that, I will turn the call over to LSI President and Chief Executive Officer, Jim Clark.
Jim Clark
Thank you, Jim and good morning all. Thank you for joining us on today’s call. As you have likely seen from our press release, we had another strong quarter in our Q2 fiscal ‘23. In fact, this is our seventh consecutive quarter of double-digit organic growth. It’s quite an accomplishment given the ongoing headwinds of the general economy, ongoing supply chain challenges and disruptions in the construction market. My hats off to the entire team at LSI along with our agents and partners.
Sales for the quarter were up more than 16% year-over-year, net income up over 107%. We had strong free cash flow performance and I am happy to say our net debt sits around $60 million, which is a 1.3x net leverage ratio. We are in a good spot going into the second half of the year and Jim Galeese will provide a deeper dive of the financials in a few minutes.