LSI Industries Inc. (LYTS)
F4Q2010 Earnings - Call
August 19, 2010 04:30 pm ET
Bob Ready - President & CEO
Steve Brucker - CIO
Scott Ready - President, LSI Lighting Solutions Plus
Ron Stowell - VP, CFO & Treasurer
Sean Tony - SVP, Commercial and Industrial Lighting Group
David McCauley - President, LSI Graphic Solutions Plus
Previous Statements by LYTS
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Now, without further delays, I will turn your call over to Mr. Bob Ready.
Thank you. Before I make opening comments, Steve Brucker our CIO is on the line. Steve you have got a couple of comments please.
Yes, I just wanted to welcome everyone today and let you know that, with today’s call there will not be supporting visuals on the website, as we have sometimes done in the past, but after today’s call concludes, some supporting visuals will be available on our website that you can reach www.lsi-industries.com.
And now I will proceed with the conference Bob.
Thanks Steve, good afternoon everybody its nice to have you on board this afternoon. With me today as our normal process is our CFO Ron Stowell with us. Scott Ready President of the Lighting Group, David McCauley, President of the Graphic Group. And today we also invited Sean Tony who is really our Senior Vice President In-Charge of C&I Lighting Sales, I thought it would be very appropriate to have Sean onboard based on the Q&A session, because of his tremendous involvement in what we have done in accomplishing a I think a very, very important turnaround in our C&I business. We put out a rather expensive press release as I am sure you are all aware. And so I am going to make my opening marks short.
We have made a lot of statements in there and they have a basis for giving you some direction at what's happened. When you look at the comparison of 2009, as compared to 2010, certainly fourth quarter there was a major turnaround.
A lot of things that are going on are obviously self developed. We've talked about those in the past, I am extremely confident on the basis of the changes that we've made. We have gone through a very strong reorganization both inside and out. We've made a number of major changes in strengthening our sales efforts specifically of the C&I part of our business plan. The direction for manufacturing, we have made major investments in both the Lighting Group as well as the Graphics Group. These new pieces of equipment are fully automated pieces of manufacturing equipment that gives us an opportunity to reduce our cost. We have a very straight forward approach in the manufacturing process and we've made a considerable improvement on reducing our overhead. We've reduced our inventories and as you can see by the strength of the balance sheet, the company is in really in a very good position as we start to move forward.
The exciting part of 2011 is obviously the continuation of 7-Eleven program, we are now really well ramped up now as we go into the second phase of this initial conversion of going from not only LED lighting, but there is a major improvement as far as their graphics utilization. We have some prototypes that we are working on and we’ll get into more detail on this in a few minutes for the interior store package as well.
The overall conditions of our markets are very, very mixed. This economy has still had a major impact on construction, so our whole objective is obviously directed to do whatever we can to go after market share, improve our place in the market.
The petroleum industry, is a little bit more active, we are very pleased with some of the results of our new Generation 3 product which has been very effective in showing our customer base that we now have a very great retrofit product to take the existing stock sale down and replace it with a new Crossover 3 which we call an LED stock sale.
This product now is in, samples are in the hands of all of our reps, they are going out with great success, creating more and more interest for this product as we move into 2011.
On the video board side of our business, we are continuing to be very proactive in going after school. We have a new product that we have been working on, the drill what we have shown to the internal folks sometime in the next week or so, the new design, that they cost out of it and improve the visibility and the overall direction of this new visual board.
We’ll talk more about that in the months to come, but we have got the last seven or eight months kind of redesigning the whole product line as it would relate to the kind of markets that we feel that we have a ability to penetrate.
Our international market is well on its way. Fred Jalbout as you all are aware has actually moved into the European market. He has spent the last few months establishing the roots in both the Middle East and the European market and we’ll be talking more about that in the months to come. The exciting part of that is we are getting more and more interest in our LED product line. We have gone through most of the certification of all of our LED products as a matter of fact and we’ll talk a little bit as Scott will mention that today how this, where are we are in relation to having the certification done which now will give us the opportunity to move into a more aggressive marketing and sales approach in the European and in the Middle East.