LSI Industries Inc. (LYTS): Business Model Canvas [11-2024 Updated]

Discover how LSI Industries Inc. (LYTS) has positioned itself in the competitive landscape of LED lighting and display solutions through its innovative Business Model Canvas. This framework reveals the company's strategic

• partnerships with suppliers and technology firms
• key activities in manufacturing and R&D
• distinct value propositions that emphasize energy efficiency

and much more. Dive deeper to understand how LSI effectively meets the needs of diverse customer segments while driving profitability and growth.

LSI Industries Inc. (LYTS) - Business Model: Key Partnerships

Collaborations with suppliers for raw materials

LSI Industries collaborates with various suppliers to ensure a steady supply of raw materials essential for its product lines. As of September 30, 2024, the total inventories reported were valued at $71.3 million, which includes raw materials amounting to $52.6 million .

Partnerships with contractors for installation services

LSI Industries engages contractors for the installation of its lighting and display solutions. The company provides project management services that complement its product offerings, such as installation management and site surveys. The operational expenses for the three months ended September 30, 2024, were reported at $7.3 million, reflecting costs associated with these partnerships .

Strategic alliances with technology firms for product development

LSI Industries has formed strategic alliances with technology firms to enhance product development, particularly in the display solutions segment. The company reported net sales of $79.7 million in the Display Solutions segment for the three months ended September 30, 2024, an increase of 43% compared to the same period in the previous year . This growth is partly attributed to technological advancements and innovations stemming from these partnerships.

Partnership Type	Details	Financial Impact (Q3 2024)
Suppliers	Raw materials supply	$52.6 million in raw materials inventory
Contractors	Installation services	$7.3 million in operational expenses
Technology Firms	Product development	$79.7 million in Display Solutions segment sales

LSI Industries Inc. (LYTS) - Business Model: Key Activities

Manufacturing of LED lighting and display solutions

LSI Industries Inc. primarily focuses on the manufacturing of LED lighting fixtures and display solutions. For the three months ended September 30, 2024, the company reported net sales of $58.4 million in the Lighting segment, a decrease of 14% compared to $67.6 million in the same period of the previous fiscal year. This decline was attributed to lower large project activity and reduced non-residential construction activity.

In contrast, the Display Solutions segment experienced significant growth with net sales reaching $79.7 million, a 43% increase from $55.8 million in the prior year. This surge was driven by the acquisition of EMI Industries, which contributed $26.2 million in sales.

The manufacturing process incorporates advanced technologies and a focus on energy-efficient products, aligning with market demands for sustainable solutions. LSI Industries also maintains a diverse product portfolio that includes lighting controls and electronic components.

Research and development for innovative products

Investment in research and development (R&D) is a critical activity for LSI Industries, aimed at fostering innovation and enhancing product offerings. The company allocated approximately $2.9 million for R&D in the fiscal year ending June 30, 2024. This strategic focus enables LSI to stay competitive in the rapidly evolving LED and display solution markets.

LSI’s R&D efforts emphasize developing new technologies that improve energy efficiency and product performance. These innovations are crucial for meeting regulatory standards and customer expectations, particularly in sectors such as retail, commercial, and industrial markets.

Marketing and sales activities targeting various sectors

Marketing and sales are essential activities for LSI Industries, targeting multiple sectors including retail, grocery, automotive, and commercial markets. The company reported operating income of $9.1 million for the three months ended September 30, 2024, down from $11.0 million in the same period of the previous year.

LSI employs a direct sales model complemented by a strategic marketing approach to engage customers effectively. The marketing initiatives focus on highlighting the benefits of LED technology and the versatility of their display solutions.

In the fiscal year 2024, LSI’s total operating expenses related to sales and marketing were approximately $24.5 million, indicating a proactive approach in expanding market reach despite fluctuating sales figures.

Key Activities	Lighting Segment	Display Solutions Segment
Net Sales (Q1 2024)	$58.4 million	$79.7 million
Gross Profit (Q1 2024)	$18.6 million	$15.0 million
Operating Income (Q1 2024)	$5.8 million	$7.7 million
R&D Investment (FY 2024)	$2.9 million
Marketing and Sales Expenses (FY 2024)	$24.5 million

LSI Industries Inc. (LYTS) - Business Model: Key Resources

Advanced manufacturing facilities

LSI Industries operates advanced manufacturing facilities that are crucial to its operations. As of September 30, 2024, the company reported a total property, plant, and equipment value of approximately $107.4 million, which includes land, buildings, and machinery and equipment. The breakdown is as follows:

Asset Type	Value (in thousands)
Land	$4,010
Buildings	$24,757
Machinery and Equipment	$75,433
Buildings under Finance Leases	$2,033
Construction in Progress	$1,161
Total	$107,394

Skilled workforce in engineering and production

LSI Industries relies on a skilled workforce, particularly in engineering and production, to maintain its competitive edge. The company has made investments in its workforce through training and development initiatives. As of September 30, 2024, the company reported approximately 1,057 employees, with a focus on retaining skilled labor in production roles, which is vital for maintaining operational efficiency.

Proprietary technology and product designs

LSI Industries has developed proprietary technologies and product designs that differentiate its offerings in the market. These innovations have contributed to an increase in net sales in the Display Solutions segment, which reached $79.7 million for the three months ended September 30, 2024, marking a 43% increase year-over-year. The company’s investments in R&D are reflected in their product line, enhancing both functionality and energy efficiency.

As of September 30, 2024, LSI Industries reported a net income of $6.7 million, with a total revenue of $138.1 million for the same period, highlighting the importance of its technological advancements in driving sales growth.

LSI Industries Inc. (LYTS) - Business Model: Value Propositions

High-quality LED lighting solutions

LSI Industries Inc. specializes in high-quality LED lighting solutions, catering primarily to non-residential markets. For the three months ended September 30, 2024, the company's Lighting Segment generated net sales of $58.4 million, a decrease of 14% compared to $67.6 million in the same period of the previous year. The decline is attributed to lower large project activities and a slowdown in non-residential construction.

The gross profit for the Lighting Segment was reported at $18.6 million, down 20% from $23.3 million in the prior year period. This decline in profitability reflects the decreasing sales and the competitive pricing environment.

Custom display solutions tailored to client needs

LSI also offers custom display solutions, which include interior and exterior visual image elements. The Display Solutions Segment achieved net sales of $79.7 million for the three months ended September 30, 2024, representing a significant increase of 43% compared to $55.8 million in the same quarter of 2023. This growth was driven in part by the acquisition of EMI Industries, which contributed $26.2 million in sales.

Gross profit for the Display Solutions Segment reached $15.0 million, an increase of 13% from $13.3 million in the same quarter of the previous year. This segment's operating income was reported at $7.7 million, up 7% from $7.2 million.

Energy-efficient products that reduce operational costs

LSI Industries emphasizes energy-efficient products that significantly reduce operational costs for clients. The company’s LED lighting solutions are designed to lower energy consumption, which is a critical selling point for businesses aiming to decrease their utility expenses. The company's commitment to sustainability aligns with increasing regulatory pressures and consumer demand for environmentally friendly products.

As of September 30, 2024, LSI had total current assets of $166.9 million, which supports its ability to invest in research and development for energy-efficient technologies. Additionally, the overall market trend towards energy efficiency has positioned LSI favorably against competitors, as businesses increasingly prioritize sustainability in their purchasing decisions.

Metric	Q3 2024	Q3 2023	Change (%)
Lighting Segment Net Sales	$58.4 million	$67.6 million	-14%
Lighting Segment Gross Profit	$18.6 million	$23.3 million	-20%
Display Solutions Segment Net Sales	$79.7 million	$55.8 million	+43%
Display Solutions Segment Gross Profit	$15.0 million	$13.3 million	+13%
Overall Net Income	$6.7 million	$8.0 million	-16%

LSI Industries Inc. (LYTS) - Business Model: Customer Relationships

Direct sales approach with dedicated account managers

LSI Industries Inc. employs a direct sales model which is supported by dedicated account managers. This approach allows for tailored interactions with customers across its segments, specifically in the Lighting and Display Solutions markets. The company reported net sales of $138.1 million for the three months ended September 30, 2024, an increase of 12% compared to $123.4 million for the same period in 2023.

In the Lighting Segment, net sales decreased to $58.4 million from $67.6 million year-over-year, primarily due to less large project activity. Conversely, the Display Solutions Segment saw a significant increase in net sales, reaching $79.7 million, up 43% from $55.8 million.

Post-sale support and maintenance services

LSI Industries provides comprehensive post-sale support and maintenance services to enhance customer satisfaction and retention. This includes warranty services and ongoing maintenance for their lighting products. The company reported a gross profit of $33.6 million for the twelve months ended June 30, 2024, down from $36.6 million in the previous year, reflecting the impact of sales fluctuations across segments.

The company’s operating income for the three months ended September 30, 2024, was $9.1 million, a decrease from $11.0 million in the same quarter of the previous year. This decline in operating income emphasizes the need for robust post-sale services to mitigate impacts from fluctuating sales figures.

Customer feedback integration into product development

LSI Industries actively integrates customer feedback into its product development processes. This initiative is crucial for maintaining competitiveness in the rapidly evolving lighting and display solutions markets. The company’s commitment to customer engagement is evident from its structured approach to gathering and analyzing customer input, which directly influences product design and enhancements.

As of September 30, 2024, the company reported an effective tax rate of 19.6%, down from 22.6% in the previous year, which could allow for reinvestment into product development initiatives driven by customer feedback. The integration of customer insights is expected to enhance product offerings and potentially drive future sales growth.

Metric	Q3 2024	Q3 2023	Change (%)
Net Sales (Total)	$138.1 million	$123.4 million	+12%
Lighting Segment Net Sales	$58.4 million	$67.6 million	-14%
Display Solutions Segment Net Sales	$79.7 million	$55.8 million	+43%
Gross Profit	$33.6 million	$36.6 million	-8%
Operating Income	$9.1 million	$11.0 million	-17%

LSI Industries Inc. (LYTS) - Business Model: Channels

Direct sales through internal sales teams

LSI Industries Inc. employs a direct sales model primarily through its internal sales force. This team is responsible for generating significant revenue, with net sales reported at $138.1 million for the three months ended September 30, 2024. This represents a 12% increase from $123.4 million in the same period the previous year .

Online platforms for product information and inquiries

LSI leverages online platforms to provide product information and facilitate inquiries. The company maintains a digital presence that supports its sales efforts, allowing customers to access product catalogs, specifications, and support services. This approach is complemented by e-commerce capabilities that enhance customer engagement and streamline the purchasing process.

Trade shows and industry events for visibility

Participation in trade shows and industry events is a critical channel for LSI Industries to showcase its products and innovations. These events allow the company to enhance visibility within the market, engage with potential clients, and network with industry professionals. The company’s presence at such events is a strategic move to bolster its market position and generate leads.

Channel Type	Details	Financial Impact (Q1 2024)
Direct Sales	Internal sales teams generating revenue from direct customer engagements	$138.1 million in net sales
Online Platforms	Digital platforms for product information and customer inquiries	Part of overall sales; specific financial impact not disclosed
Trade Shows	Participation in industry events to enhance visibility and generate leads	Indirect impact; contributes to brand recognition and potential sales growth

LSI Industries Inc. (LYTS) - Business Model: Customer Segments

Non-residential construction markets

LSI Industries Inc. primarily serves the non-residential construction market, which includes various sectors such as commercial, industrial, and institutional buildings. The total non-residential construction spending in the U.S. was approximately $837 billion in 2023, showing a steady increase year-over-year. LSI's lighting and display solutions are crucial for contractors and developers looking to enhance energy efficiency and design aesthetics in new constructions.

Retail and grocery sectors

The retail and grocery sectors are significant customer segments for LSI Industries. In the fiscal year ending June 30, 2024, LSI reported that net sales from the Display Solutions segment reached $79.7 million, a 43% increase from the previous year, largely due to acquisitions and increased demand in grocery verticals . The grocery sector alone accounted for nearly 10% of the total U.S. retail sales, which were approximately $6.4 trillion in 2023, underscoring the importance of this segment for LSI's growth strategy.

Quick-service restaurants and convenience stores

Quick-service restaurants (QSRs) and convenience stores represent another vital customer segment for LSI Industries. The global QSR market was valued at over $300 billion in 2023, with projections for continued growth driven by consumer demand for fast and accessible food options. LSI provides tailored lighting and display solutions that enhance customer experience and operational efficiency in these establishments. For instance, LSI's solutions for convenience stores have seen a notable uptick, contributing to the overall sales in the Lighting Segment, which totaled $58.4 million for the three months ended September 30, 2024 .

Customer Segment	Market Size (2023)	LSI Sales (2024)	Growth Rate
Non-residential Construction	$837 billion	N/A	Steady Increase
Retail and Grocery	$6.4 trillion	$79.7 million	43%
Quick-service Restaurants	$300 billion	N/A	Projected Growth

LSI Industries Inc. (LYTS) - Business Model: Cost Structure

Manufacturing and operational costs

LSI Industries Inc. incurs significant manufacturing and operational costs as part of its business model. For the three months ended September 30, 2024, the company's cost of products and services sold amounted to $104.4 million, compared to $86.9 million for the same period in the previous year .

The breakdown of these costs includes:

• Raw materials: $52.6 million as of September 30, 2024 .
• Work-in-progress: $6.3 million .
• Finished goods: $12.3 million .

Operating expenses for the same period were reported at $24.5 million, slightly down from $25.6 million in the prior year . The operational efficiency and cost management strategies implemented by LSI have helped maintain a stable gross profit margin despite fluctuations in sales volume.

Research and development expenditures

LSI Industries places a strong emphasis on innovation, reflected in its research and development (R&D) expenditures. For the fiscal year ending June 30, 2024, R&D expenses totaled approximately $5.5 million, constituting about 1% of total sales . Investment in R&D is crucial for developing new products and technology enhancements, particularly in the LED lighting and display solutions markets.

The company aims to leverage these investments to improve product performance and sustain competitive advantages in the marketplace.

Marketing and sales expenses

Marketing and sales expenses are another key component of LSI's cost structure. For the three months ended September 30, 2024, the total selling and administrative expenses were $24.5 million, which includes marketing efforts . This reflects a decrease from $25.6 million reported in the same quarter of the previous year.

LSI's marketing strategy focuses on enhancing brand visibility and expanding its customer base across various sectors, including refueling, convenience stores, and retail markets. The company has allocated resources for:

• Digital marketing campaigns and promotions.
• Sales force training and development.
• Participation in industry trade shows to showcase new products.

Overall, LSI's approach to managing its cost structure aims to maximize operational efficiency while ensuring continued investment in growth areas such as R&D and marketing.

Cost Category	Q1 2024 Amount (in millions)	Q1 2023 Amount (in millions)
Cost of Products and Services Sold	$104.4	$86.9
Selling and Administrative Expenses	$24.5	$25.6
Research and Development Expenses	$5.5	N/A

LSI Industries Inc. (LYTS) - Business Model: Revenue Streams

Sales of lighting and display products

LSI Industries Inc. reported net sales of $138.1 million for the three months ended September 30, 2024, which represents a 12% increase compared to $123.4 million in the same period of 2023. Within this total, net sales from the Lighting Segment were $58.4 million, a 14% decrease from $67.6 million in the prior year. The decline was attributed to lower large project activity and a decrease in non-residential construction activity. Conversely, the Display Solutions Segment saw net sales of $79.7 million, an increase of 43% driven by the acquisition of EMI Industries, LLC, which contributed $26.2 million in sales.

Segment	Net Sales (2024)	Net Sales (2023)	Change (%)
Lighting	$58.4 million	$67.6 million	-14%
Display Solutions	$79.7 million	$55.8 million	+43%
Total	$138.1 million	$123.4 million	+12%

Service contracts for installation and maintenance

LSI Industries also generates revenue from service contracts that include installation and maintenance of its lighting and display products. This segment is crucial as it provides recurring revenue and enhances customer relationships. The company reported operating income of $9.1 million for the three months ended September 30, 2024, which reflects a 17% decrease compared to $11.0 million in the same period of 2023. This decline was primarily due to reduced sales in the Lighting segment, although the Display Solutions segment experienced growth.

Revenue from ongoing customer support services

Ongoing customer support services also contribute to LSI's revenue streams. The company’s total gross profit for the three months ended September 30, 2024, was reported at $33.6 million, down from $36.6 million in the same period of the previous year. The gross profit margin was impacted by the lower sales volume in the Lighting segment, which also affected the overall profitability.

Revenue Type	Gross Profit (2024)	Gross Profit (2023)	Change (%)
Service Contracts	$33.6 million	$36.6 million	-8%
Ongoing Customer Support	Included in Total	Included in Total	N/A

Updated on 16 Nov 2024

Resources:

1. LSI Industries Inc. (LYTS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of LSI Industries Inc. (LYTS)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View LSI Industries Inc. (LYTS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.