Sidoti Conference January 12, Dennis Wells CEO & President Ron Stowell - CFO

Transcription

1 Sidoti Conference January 12, 2015 Dennis Wells CEO & President Ron Stowell - CFO

2 SAFE HARBOR STATEMENT Our remarks today will be related to our expectations with regard to a number of activities in which the Company is engaged. Reliance should not be placed upon such forward-looking statements because they involve risks and uncertainties which may cause our actual results to differ materially from those which we are going to talk about or which we may imply. Those risks and uncertainties are discussed in our Forms 10-K and 10-Q filed with the Securities and Exchange Commission, and in recent Press Releases which have been issued. We do not have any material non-public information that will be discussed today. 2

3 My Background: Lighting & Lighting Controls 30+ Year Veteran of the Industry Schneider Electric ($15B Global Company) Acuity Brand Lighting ($2B US Company) Fulham Global Lighting Components Graphics France Power Solutions Glantz Dynamic Solutions Samsung Smart Signs Qualifications as LSI CEO Accounting, Manufacturing, Marketing, Sales VP - Mergers & Acquisitions President, COO 3

4 What excites me about LSI? People Top Notch.lighting, graphics, technology experts I would stack them up against any I know. Just ask our customers that come in for design help Products 50%+ of our Lighting Sales in LED.excellent position We are an Imaging Company with tremendous graphics capabilities We are working on tomorrow s technology products today Facilities & Production Centers We are not a sign shop.we are a graphics & image creation center We are not a metal bending shop.we an LED production center We are not a printed circuit board house..we are a technology center We have THE BEST equipment at our disposal I know..i've been around.we are in a good position! I have competed against LSI.and now I know why LSI excels! 4

5 Execution of this growth strategy Cross Training of our Sales Forces Technology and New Product Introductions Promote Install & Project Management capabilities Increased Marketing around this strategy 5

6 Before : Traditional Lighting After : LED Lighting Renovation: LED New Construction : LED 6

7 Great Work! This is simply amazing and I truly appreciate everyone s effort to make this happen. Please pass along the thanks for making a significant impact on the appearance and energy savings at Wendy s restaurants 7

8 The Market Trends are in our favor looking forward Non-Residential Construction Spending is rising PMI has improved GDP is on the incline Interest Rates remain low Unemployment is dropping 8

9 The Market Dynamics for our Lighting Division are especially positive Price of Electricity continues to rise Move towards Green building increasing Renovation of existing Buildings with energy efficient products SSL (LED) Lighting will continue to be a larger percentage of new sales New Build Lighting Renovation Market for existing. $300B 9

10 The Market Dynamics for our Graphics Division are also very positive There are over 30,000 Sign Shops in the US However, few have Image capabilities like LSI We compete in this high end image part of the market Significant activity regarding re-image and re-fresh Demand for Digital Signage is growing rapidly We are in a good position as this market rebounds This division is now profitable 10

11 We Believe our Technology Division is key to our Future LSI - Controls Lighting Controls are strategic for LSI LSI - ADL Going Forward LSI-ADL is our Tech Center for PCB, Drivers, Sensors Smart Lighting Grids in the Retail Environment Smart Graphics and Digital Signage with Sensor Technology Our Customer Base is asking for this technology today LSI will be relevant in tomorrow s connected world Chief Technology Officer hire is eminent 11

12 INVESTOR CONSIDERATIONS SUMMARY Our Assessment: Underachiever/Prime Turnaround Candidate Solid Business and Framework to Build Upon Great Opportunity to Improve Performance We Plan To: Increase Revenue Growth Reduce Operating Expenses Improve Profit Margins and Earnings Pursue Technology Opportunities Maintain a Strong Balance Sheet Increase the Cash Dividend Rate 12