LSI Industries Inc. Reports Operating Results for the Third Quarter and Nine Month Period Ended March 31, 2013

LSI Industries Inc. Reports Operating Results for the Third Quarter and Nine
Month Period Ended March 31, 2013

CINCINNATI, April 29, 2013 (GLOBE NEWSWIRE) -- LSI Industries Inc.
(Nasdaq:LYTS) today:

  *reported third quarter net sales of $66,152,000, an increase of 5% as
    compared to $62,937,000 in the same period of the prior fiscal year;
    
  *reported a third quarter pre-tax non-cash goodwill impairment charge of
    $272,000;
    
  *reported a third quarter net loss of $(315,000) or $(0.01) per share as
    compared to a net loss of $(377,000) or $(0.02) per share for the same
    period of the prior fiscal year;
    
  *reported nine month net sales of $211,953,000, an increase of 7% as
    compared to $197,206,000 in the same period of the prior fiscal year; and
    
  *reported a nine month net loss of $(935,000) or $(0.04) per share as
    compared to net income of $1,719,000 or $0.07 per share for the same
    period of the prior fiscal year

Financial Highlights                                             
(In thousands, except
per share data;        Three Months Ended         Nine Months Ended
unaudited)
                      March 31                   March 31
                      2013     2012     % Change 2013      2012      % Change
Net Sales              $ 66,152 $ 62,937 5%       $ 211,953 $ 197,206 7%
                                                                
Operating Income       $ (506)  $ 94     n/m      $ (188)   $ 3,491   n/m
(loss)
                                                                
Net Income (loss)      $ (315)  $ (377)  n/m      $ (935)   $ 1,719   n/m
                                                                
Earnings (loss) per    $ (0.01) $ (0.02) n/m      $ (0.04)  $ 0.07    n/m
share (diluted)

                             
                             
                    3/31/13   6/30/12
Working Capital      $ 77,671  $ 83,702
Total Assets         $ 168,366 $ 175,226
Long-Term Debt       $ nil     $nil
Shareholders' Equity $ 142,046 $ 149,368

Third Quarter Fiscal 2013 Results

Net sales in the third quarter of fiscal 2013 were $66,152,000, an increase of
5% as compared to last year's third quarter net sales of $62,937,000.Lighting
Segment net sales increased 1.4% to $47,372,000 with sales to national
accounts and niche markets decreasing 4.3%, sales to the Commercial /
Industrial lighting market increasing 6.1%, sales of $784,000 related to LED
video screens increasing 246.9%, and lighting sales to international markets
of $3,850,000 decreasing 3.5%.In the other reportable business segments,
Graphics Segment net sales increased 46.6% to $13,110,000, Electronic
Components Segment net sales decreased 4.6% to $4,395,000 and net sales of the
All Other Category decreased 52.3% to $1,275,000.The Company's third quarter
net sales to the petroleum / convenience store market were approximately $17.4
million, representing a $2.3 million or 15.4% increase over the same period of
the prior fiscal year. The Company reported a non-cash $272,000 goodwill
impairment in the Electronic Components Segment in the third quarter of fiscal
2013 with no corresponding impairment in the third quarter of fiscal 2012.The
fiscal 2013 third quarter net loss of $(315,000), or $(0.01) per share,
compares to the fiscal 2012 third quarter net loss of $(377,000), or $(0.02)
per share.Earnings per share represents diluted earnings per share.

Nine Month Fiscal 2013 Results

Net sales in the first nine months of fiscal 2013 were $211,953,000, an
increase of 7% as compared to last year's nine month net sales of
$197,206,000.Lighting Segment net sales increased 5.0% to $156,906,000 with
sales to national accounts and niche markets increasing 4.4%, sales to the
Commercial / Industrial lighting market decreasing 2.2%, sales of $5,802,000
related to LED video screens increasing 268.8%, and lighting sales to
international markets of $11,831,000 increasing 15.6%.In the other reportable
business segments, Graphics Segment net sales increased 16.5% to $34,387,000,
Electronic Components Segment net sales increased 14.2% to $15,108,000 and net
sales of the All Other Category increased 10.0% to $5,552,000.The Company's
fiscal 2013 nine month net sales to the petroleum / convenience store market
were approximately $59.0 million, representing a $6.3 million or 12.0%
increase over the same period of the prior fiscal year. In the first nine
months of fiscal 2013, the Company reduced the contingent earn-out liability
related to the March 2012 acquisition of Virticus Corporation and recorded
pre-tax income of $705,000 primarily in the Corporate Administrative expenses,
with no comparable item in the first nine months of fiscal 2012.The Company
reported a $2,413,000 goodwill impairment in the Electronic Components Segment
in the first nine months of fiscal 2013 as compared to a $258,000 goodwill
impairment in the Graphics Segment in the first nine months of fiscal
2012.The fiscal 2013 nine month net loss of $(935,000), or $(0.04) per share,
compares to fiscal 2012 nine month net income of $1,719,000, or $0.07 per
share.Earnings per share represents diluted earnings per share.

Balance Sheet

The balance sheet at March 31, 2013 included current assets of $101.9 million,
current liabilities of $24.2 million and working capital of $77.7 million,
which includes cash of $13.9 million.The current ratio was 4.2 to 1.The
Company has shareholders' equity of $142.0 million, no long-term debt, and
borrowing capacity on its commercial bank facilities as of March 31, 2013 of
$34.7 million.With continued strong cash flow, a sound and conservatively
capitalized balance sheet, and $35 million in credit facilities, LSI
Industries believes its financial condition is sound and capable of supporting
the Company's planned growth, including acquisitions, if any.

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.

Company Comments

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.

"Later this quarter we will be introducing additional cost-effective advanced
solid-state LED products for both indoor and outdoor applications that are
specifically targeted to accelerate the momentum we have already achieved in
the retail petroleum / convenience store market. We believe our new canopy
fixture will once again establish a new standard in value and performance the
way the LSI Scottsdale did in 1995.This high performance solid-state LED
product has tremendous potential.Also, we have been selected by a large oil
company as the primary source for a new national rollout program that will
begin during our fourth quarter and will continue throughout the next fiscal
year.The program involves both graphics and lighting elements and employs our
newest LED products.

"In the second quarter press release, I mentioned our recent move to upgrade
our independent sales representation in our lighting business in a number of
important geographic markets.We are now able to better extend our influence
into the specification-grade part of the C & I lighting market.These changes
give us stronger representation in a number of large markets, including
Boston, New York, Washington DC, New Jersey, San Diego, Salt Lake City,
Detroit, South Carolina, New Hampshire, Maine and Vermont.During the third
and fourth quarters of fiscal 2013 the transition plan has and will continue
to result in some temporary loss of sales volume which will gradually be
offset by the new rep groups as they come on line.As we move into fiscal 2014
we fully expect to see the benefits of this strategic move to larger and more
powerful selling agencies.For our commercial / industrial lighting part of
the business, we believe these agency changes combined with our new LED and
controls products could generate sales increases of between 25% and 50% from
the current base of about $100 million over the next couple of fiscal years.

"Our balance sheet is solid and without debt.Cash flow is strong and
comfortably funds our working capital, capital expenditures, product
development, and cash dividend requirements.We remain committed to our
strategy of product technology development for the niche, commercial and
retail markets that we serve worldwide."

Non-GAAP Financial Measures

This press release includes adjustments to GAAP net income for the three and
nine month periods ended March 31, 2013 and 2012.Adjusted net income (loss)
and earnings (loss) per share, which excludes the impact of goodwill
impairment, reversal of a contingent Earn-Out liability, and acquisition deal
costs and related expenses, are non-GAAP financial measures.We believe that
it is useful as a supplemental measure in assessing the operating performance
of our business.This measure is used by our management, including our chief
operating decision maker, to evaluate business results.We exclude these
non-recurring items because they are not representative of the ongoing results
of operations of our business.Below is a reconciliation of this non-GAAP
measurement to the net income reported for the periods indicated.

(in thousands, except per share      Third Quarter
data; unaudited)
                                    FY 2013 Diluted EPS FY 2012 Diluted EPS
Reconciliation of net (loss) to                                 
adjusted net (loss):
                                                               
Net (loss) and (loss) pershare as   $ (315) $ (0.01)    $ (377)  $ (0.02)
reported
                                                               
Adjustment for the reversal of
acontingent Earn-Out liability,     (40)     --        --      --
inclusive of the income tax effect
                                                               
Adjustment for the acquisition deal
costs and related                    --     --          376      0.02
expenses,inclusive of the income
tax effect
                                                               
Adjustment for goodwill impairments, 334      0.01        --      --
inclusive of the income tax effect
                                                               
Adjusted net (loss) and (loss) per   $ (21)   $ 0.00      $ (1)    $ 0.00
share
                                                               
(in thousands, except per share      Nine Months
data; unaudited)
                                    FY 2013 Diluted EPS FY 2012  Diluted EPS
Reconciliation of net income (loss)                             
to adjusted net income:
                                                               
Net income (loss) and earnings       $ (935)  $ (0.04)    $ 1,719  $ 0.07
(loss) per share as reported
                                                               
Adjustment for the reversal of
acontingent Earn-Out liability,     (551)    (0.02)      --      --
inclusive of the income tax effect
                                                               
Adjustment for the acquisition deal
costs and related                    --     --          376      0.02
expenses,inclusive of the income
tax effect
                                                               
Adjustment for goodwill impairment,  1,886    0.08        258      0.01
inclusive of the income tax effect
                                                               
Adjusted net income and earnings per $ 400    $ 0.02      $ 2,353  $ 0.10
share

"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, whether expressed or implied, 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 over which the
Company may have no control.These risks and uncertainties include, but are
not limited to, the impact of competitive products and services, product
demand and market acceptance risks, potential costs associated with litigation
and regulatory compliance, reliance on key customers, financial difficulties
experienced by customers, the cyclical and seasonal nature of our business,
the adequacy of reserves and allowances for doubtful accounts, fluctuations in
operating results or costs whether as a result of uncertainties inherent in
tax and accounting matters or otherwise, unexpected difficulties in
integrating acquired businesses, the ability to retain key employees of
acquired businesses, unfavorable economic and market conditions, and the
results of asset impairment assessments.You are cautioned to not place undue
reliance on these forward-looking statements.In addition to the factors
described in this paragraph, the risk factors identified in our Form 10-K and
other filings the Company may make with the SEC constitute risks and
uncertainties that may affect the financial performance of the Company and are
incorporated herein by reference.The Company does not undertake and hereby
disclaims any duty to update any forward-looking statements to reflect
subsequent events or circumstances.

About the Company

Leadership.Strength.Innovation.Those are the key values behind the smart
vision upon which LSI Industries Inc. was founded when established in
1976.Today LSI demonstrates this in our dedication to advancing technology
throughout all aspects of our business – in both product solutions and
production techniques.We are committed to American innovation through
technology.

We are a vertically integrated manufacturer who combines assimilated
technology, design and manufacturing to produce the most efficient, high
quality products possible.We are dedicated to advancing solid-state
technology to make affordable, high performance, energy efficient lighting and
custom graphic products that bring value to our customers.In addition, we can
provide sophisticated lighting and energy management control solutions to help
customers manage their energy performance. Further, we offer design support,
engineering, installation and project management for custom graphics rollout
programs for today's retail environment.

LSI is proud to be an American company with an American work force, building
an American product.We are a U.S. manufacturer with marketing / sales efforts
throughout the world with concentration currently on North America, Latin
America, Australia, New Zealand, Asia, Europe and the Middle East.Our major
markets include the commercial / industrial lighting, petroleum / convenience
store, multi-site retail (including automobile dealerships, restaurants and
national retail accounts), sports and entertainment markets.Headquartered in
Cincinnati, Ohio, LSI has facilities in Ohio, Kansas, Kentucky, New York,
North Carolina, Oregon, Rhode Island, Texas and Montreal, Canada.The
Company's common shares are traded on the NASDAQ Global Select Market under
the symbol LYTS.

As we redefine LSI Industries' place in the markets we serve, we will
emphasize our commitment to preserving the foundation of a well-managed,
financially strong and creatively unique company with even stronger emphasis
on a growing technology base.Through the Leadership, Strength and Innovation
that is core to our culture, we move forward continuing our transition to a
technology-reliant company with lighting and graphics and the ability to
provide the stronger performance our many partners expect.

For further information, contact either Bob Ready, Chief Executive Officer, 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.

Condensed Consolidated Statements of Operations
                                                                 
                                      Three Months Ended Nine Months Ended
                                      March 31            March 31
(in thousands, except pershare data;  2013      2012      2013      2012
unaudited)
                                                                 
Net sales                              $ 66,152  $ 62,937  $ 211,953 $ 197,206
                                                                 
Cost of products and services sold     52,231    49,621    166,279   153,500
                                                                 
Gross profit                           13,921    13,316    45,674    43,706
                                                                 
Selling and administrative expenses    14,155    13,222    43,449    39,957
                                                                 
Goodwill impairment                    272       --       2,413     258
                                                                 
Operating income (loss)                (506)     94        (188)     3,491
                                                                 
Interest expense, net                  21        31        23        108
                                                                 
Income (loss) before income taxes      (527)     63        (211)     3,383
                                                                 
Income tax expense (benefit)           (212)     440       724       1,664
                                                                 
Net income (loss)                      $ (315)   $ (377)   $ (935)   $ 1,719
                                                                 
Income (loss) per common share                                   
Basic                                  $ (0.01)  $ (0.02)  $ (0.04)  $ 0.07
Diluted                                $ (0.01)  $ (0.02)  $ (0.04)  $ 0.07
                                                                 
Weighted average common shares outstanding                         
Basic                                  24,312    24,300    24,308    24,297
Diluted                                24,410    24,360    24,372    24,352



Condensed Consolidated Balance Sheets
(in thousands, unaudited)         March 31, June 30,
                                  2013      2012
Current Assets                     $ 101,907 $ 106,623
Property, Plant and Equipment, net 44,672    42,526
Other Assets                       21,787    26,077
                                  $ 168,366 $ 175,226
                                           
Current Liabilities                $24,236   $22,921
Long-Term Debt                     --        --
Other Long-Term Liabilities        2,084     2,937
Shareholders' Equity               142,046   149,368
                                  $ 168,366 $ 175,226

CONTACT: BOB READY OR
         RON STOWELL
         (513) 793-3200

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