LSI Industries Inc. (NASDAQ:LYTS) Q1 2023 Results Conference Call November 2, 2022 11:00 AM ET
Company Participants
James Galeese - EVP and CFO
James Clark - President and CEO
Conference Call Participants
Richard Fearon - Accretive Capital Partners
Amit Dayal - H.C. Wainwright & Co, LLC
Operator
Ladies and gentlemen, greetings and welcome to the LSI Industries Fiscal First Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Jim Galeese, CFO. Please go-ahead.
James Galeese
Good morning, everyone, and thank you for joining. We issued a press release before the market opened this morning, detailing our fiscal first 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 first quarter GAAP and non-GAAP results is contained in our press release and 10-K.
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 first quarter results. At the conclusion of these prepared remarks, we will open the line for questions.
With that, I'll turn the call over to LSI President and Chief Executive Officer, Jim Clark.
James Clark
Thank you, Jim. Good morning all. Thank you for joining us today. As you've likely seen from our press release, we had a strong first quarter and I'm very pleased with the efforts and the results of the company and our entire team.
Sales were up almost 20% at $127 million compared to the same quarter last year. Net income doubled and adjusted EBITDA top 10.5% all on-top of more than $10 million in free-cash flow. Again, just a solid performance in a challenging market by a great team of folks across the company. Our Display Solutions segment sales were strong, but they were a big constrained this quarter as we were impacted by both a supply-chain issue, specifically, one supplier who provides the graphics component and ongoing permitting issues that continue to occur across the country. Despite those challenges, orders for the first quarter were up 12% on the prior year. Our gross margin rate increased 450 basis points and operating income improved more than 70% as opposed to the same period a year-ago.