<PAGE> 1
FORM 10-Q
---------
SECURITIES AND EXCHANGE COMMISSION
----------------------------------
WASHINGTON, D.C. 20549
----------------------
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998.
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ----- SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
________________ TO ________________.
Commission File No. 0-13375
LSI Industries Inc.
State of Incorporation - Ohio IRS Employer I.D. No. 31-0888951
10000 Alliance Road
Cincinnati, Ohio 45242
(513) 793-3200
Indicate by checkmark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.
YES X NO
----- -----
Common Shares, no par value. Shares outstanding at April 30, 1998: 9,605,037
<PAGE> 2
LSI INDUSTRIES INC.
-------------------
FORM 10-Q
---------
FOR THE QUARTER ENDED MARCH 31, 1998
------------------------------------
INDEX
-----
<TABLE>
<CAPTION>
Begins on
Page
----
<S> <C>
PART I. Financial Information
ITEM 1. Financial Statements
--------------------
Consolidated Income Statements.................... 3
Consolidated Balance Sheets....................... 4
Consolidated Statements of Cash Flows............. 5
Notes to Financial Statements..................... 6
ITEM 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations................................... 9
PART II. Other Information
ITEM 2. Change in Securities.............................. 12
ITEM 6. Exhibits and Reports on Form 8-K.................. 12
Signatures .................................................. 13
</TABLE>
Page 2
<PAGE> 3
PART I. FINANCIAL INFORMATION
-----------------------------
ITEM 1. FINANCIAL STATEMENTS
- -----------------------------
LSI INDUSTRIES INC.
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31 March 31
------------------------- -------------------------
(in thousands, except per 1998 1997 1998 1997
share data; unaudited) --------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $ 43,386 $ 30,836 $ 135,097 $ 105,260
Cost of products sold 29,669 20,823 88,741 69,849
--------- --------- --------- ---------
Gross profit 13,717 10,013 46,356 35,411
Selling and administrative expenses 10,579 7,996 32,561 25,823
--------- --------- --------- ---------
Operating income 3,138 2,017 13,795 9,588
Interest expense 34 31 86 85
Interest (income) (40) (125) (72) (426)
Other expense 46 64 66 90
--------- --------- --------- ---------
Income before income taxes 3,098 2,047 13,715 9,839
Income tax expense 1,181 778 5,143 3,716
--------- --------- --------- ---------
Net income $ 1,917 $ 1,269 $ 8,572 $ 6,123
========= ========= ========= =========
Earnings per common share
Basic $ .20 $ .14 $ .90 $ .68
========= ========= ========= =========
Diluted $ .20 $ .14 $ .88 $ .67
========= ========= ========= =========
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
Page 3
<PAGE> 4
LSI INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
(In thousands, except share amounts) March 31, June 30,
1998 1997
--------- --------
<S> <C> <C>
ASSETS
- ------
Current Assets
Cash and cash equivalents $ 3,238 $ 2,612
Accounts receivable 28,314 27,412
Inventories 26,371 23,058
Other current assets 1,738 1,770
-------- --------
Total current assets 59,661 54,852
Property, plant and equipment, net 28,202 27,145
Goodwill and other assets 13,133 13,192
-------- --------
$100,996 $ 95,189
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
- ----------------------------------
Current Liabilities
Current maturities of long-term debt $ 190 $ 187
Accounts payable 10,762 12,337
Accrued expenses 12,720 12,136
-------- --------
Total current liabilities 23,672 24,660
Long-Term Debt 1,036 1,195
Other Long-Term Liabilities 1,515 1,366
Shareholders' Equity
Preferred shares, without par value;
Authorized 1,000,000 shares; none issued -- --
Common shares, without par value;
Authorized 30,000,000 shares;
Outstanding 9,570,510 and 9,499,231
shares, respectively 34,897 34,516
Retained earnings 39,876 33,452
-------- --------
Total shareholders' equity 74,773 67,968
-------- --------
$100,996 $ 95,189
======== ========
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
Page 4
<PAGE> 5
LSI INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
(In thousands) Nine Months Ended
March 31
-----------------------
1998 1997
-------- --------
<S> <C> <C>
Cash Flows from Operating Activities
Net income $ 8,572 $ 6,123
Non-cash items included in income
Depreciation and amortization 3,166 2,163
Deferred income taxes 90 90
Loss on disposition of fixed assets 66 61
Changes in operating assets and liabilities
Accounts receivable (456) 3,420
Inventories (2,982) (1,135)
Accounts payable and other (1,395) (4,129)
Change in liability for discontinued operations (9) (3)
-------- --------
Net cash flows from operating activities 7,052 6,590
-------- --------
Cash Flows from Investing Activities
Purchase of property, plant and equipment (3,403) (1,845)
Proceeds from sale of fixed assets 11 --
Acquisition of business, net of cash received (712) --
-------- --------
Net cash flows from investing activities (4,104) (1,845)
-------- --------
Cash Flows from Financing Activities
Increase in notes payable to bank -- 130
Payment of long-term debt (417) (149)
Cash dividends paid (2,148) (1,624)
Deferred compensation plan 42 (85)
Proceeds from issuance of common shares 201 151
-------- --------
Net cash flows from financing activities (2,322) (1,577)
-------- --------
Increase in cash and cash equivalents 626 3,168
Cash and cash equivalents at beginning of year 2,612 11,138
-------- --------
Cash and cash equivalents at end of period $ 3,238 $ 14,306
======== ========
Supplemental Cash Flow Information
Interest paid $ 112 $ 94
Income taxes paid $ 6,204 $ 3,605
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
Page 5
<PAGE> 6
LSI INDUSTRIES INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1: INTERIM FINANCIAL STATEMENTS
The interim financial statements are unaudited and are prepared in
accordance with rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant
to such rules and regulations. In the opinion of Management, the
interim financial statements include all normal adjustments and
disclosures necessary to present fairly the Company's financial
position as of March 31, 1998, and the results of its operations and
its cash flows for the periods ended March 31, 1998 and 1997. These
statements should be read in conjunction with the financial statements
and footnotes included in the fiscal 1997 annual report.
NOTE 2: RECENT PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 130 (SFAS No. 130), "Reporting
Comprehensive Income," which establishes standards for reporting and
display of comprehensive income and its components (revenues, expenses,
gains, and losses) in a full set of general-purpose financial
statements. SFAS No. 130 is effective for financial statements for
annual periods beginning after December 15, 1997 (fiscal 1999 for the
Company). The Company does not expect adoption to have a significant
impact on its financial statements.
NOTE 3: EARNINGS PER COMMON SHARE
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128 (SFAS No. 128),
"Earnings Per Share," which requires the presentation of basic and
diluted earnings per share on the face of the income statement for all
entities with complex capital structures and requires a reconciliation
of both the numerator and denominator of the basic and dilutive
earnings per share computations. The Company adopted SFAS No. 128
effective with the second quarter of fiscal year 1998. All prior period
earnings per share have been restated for the new disclosure.
The following table presents the amounts used to compute earnings per
common share and the effect of dilutive potential common shares on net
income and weighted average shares outstanding:
Page 6
<PAGE> 7
NOTE 3: EARNINGS PER COMMON SHARE (continued)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31 March 31
------------------ -----------------
1998 1997 1998 1997
------ ------ ------ ------
<S> <C> <C> <C> <C>
BASIC EARNINGS PER SHARE
- ------------------------
Net Income $1,917 $1,269 $8,572 $6,123
====== ====== ====== ======
Weighted Average Shares Outstanding
Weighted average shares
outstanding during the period,
net of treasury shares 9,557 9,016 9,541 9,009
====== ====== ====== ======
Basic Earnings per Share $ .20 $ .14 $ .90 $ .68
====== ====== ====== ======
DILUTED EARNINGS PER SHARE
- --------------------------
Net Income $1,917 $1,269 $8,572 $6,123
====== ====== ====== ======
Weighted Average Shares Outstanding
Weighted average shares
outstanding during the period,
net of treasury shares 9,557 9,016 9,541 9,009
Effect of Dilutive Securities:
Common Shares to be issued
under stock option plans and
a deferred compensation plan 255 166 220 194
------ ------ ------ ------
Average Shares Outstanding 9,812 9,182 9,761 9,203
====== ====== ====== ======
Diluted Earnings per Share $ .20 $ .14 $ .88 $ .67
====== ====== ====== ======
[see (A) and (B) below]
</TABLE>
(A) Calculated using the "Treasury Stock" method as if options were
exercised and the funds were used to purchase Common Shares at the
average market price during the period.
(B) Options to purchase 500 common shares and 14,300 common shares during
the quarters ended March 31, 1998 and 1997, respectively, and 2,361
common shares and 15,745 common shares during the nine month periods
ended March 31, 1998 and 1997, respectively, were not included in the
computation of diluted earnings per share because the exercise price
was greater than the average fair market value of the common shares.
Page 7
<PAGE> 8
NOTE 4: INVENTORIES
Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
March 31, 1998 June 30, 1997
-------------- -------------
<S> <C> <C>
Raw Materials $15,279 $10,272
Work-in-Process and
Finished Goods 11,092 12,786
------- -------
$26,371 $23,058
======= =======
</TABLE>
NOTE 5: CASH DIVIDENDS
The Company paid cash dividends of $2,148,000 and $1,624,000 in the
nine month periods ended March 31, 1998 and 1997, respectively. In
April, 1998, the Company's Board of Directors declared a $.0625 per
share regular quarterly cash dividend ($600,000) payable on May 19,
1998 to shareholders of record May 12, 1998.
NOTE 6: SHAREHOLDERS' EQUITY
The Company has a non-qualified Deferred Compensation Plan and a
certain portion of the Plan investments are in common shares of the
Company. As of March 31, 1998 a total of 32,541 common shares at a cost
of $440,100 were held in the Plan, and, accordingly, have been recorded
as treasury shares.
NOTE 7: ACQUISITION
The Company acquired the outstanding common stock of Marcole
Industries, Inc. on February 6, 1998 as well as the building and real
estate in Manchester, Tennessee from which Marcole will continue to
operate. Total purchase price was approximately $912,000, which
includes 12,000 common shares (valued at approximately $200,000) of LSI
Industries. For financial statement purposes the acquisition was
accounted for as a purchase, effective on the date of acquisition. The
new subsidiary, LSI Marcole Inc., is a manufacturer of electrical wire
harnesses for the appliance and white goods industry. The purchase
price exceeded the estimated fair value of net assets acquired by
$210,000, which is being amortized over forty years. The allocation was
based on preliminary estimates and may be revised at a later date
pending the completion of certain analysis.
Page 8
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
- --------------------------------------------------------------------------------
OF OPERATIONS
-------------
NET SALES BY BUSINESS SEGMENT
(In thousands, unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31 March 31
---------------------- -----------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Image Group $ 32,313 $ 22,461 $ 99,146 $ 73,597
Commercial / Industrial
Lighting Group 11,073 8,375 35,951 31,663
-------- -------- -------- --------
$ 43,386 $ 30,836 $135,097 $105,260
======== ======== ======== ========
</TABLE>
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1998 COMPARED WITH THREE MONTHS ENDED MARCH 31,
1997
Net sales of $43,386,000 in the third quarter of 1998 increased 41%
over third quarter net sales last year of $30,836,000. Quarterly results of the
Image Group in fiscal 1998 include the operations of the Company's new graphics
subsidiary, Grady McCauley, which was acquired June 30, 1997, and results of the
Commercial / Industrial Lighting Group include the operations of the Company's
newest subsidiary, LSI Marcole, which was acquired February 6, 1998. Image Group
net sales increased 44% and Commercial / Industrial Lighting Group net sales
increased 32% in the fiscal 1998 third quarter as compared to the prior year.
The increase in Image Group sales is attributed to growth in substantially all
markets and products, particularly graphics, petroleum lighting, and quick
service restaurant, as well as to the inclusion of Grady McCauley in the
operating results in fiscal 1998. Net sales of the Image Group to the petroleum
/ convenience store market represented 50% and 53% of net sales in the third
quarters of fiscal 1998 and fiscal 1997, respectively. While sales prices were
increased, inflation did not have a significant impact on sales in 1998 as
competitive pricing pressures held price increases to a minimum.
Gross profit of $13,717,000 increased 37% over last year's gross profit
of $10,013,000, but decreased as a percentage of net sales to 31.6% in the third
quarter of fiscal year 1998 as compared to 32.5% in the same period last year.
The increase in amount of gross profit is due primarily to the 41% increase in
net sales. The decrease in gross profit percentage is related to the net effect
of changes in lighting product mix to higher margin products, to improved
manufacturing operating efficiencies in the Company's lighting business, to
incremental business taken at lower margins, and to reduced margins in the
graphics business related to program mix and under-utilized capacity. Selling
and administrative expenses increased to $10,579,000 from $7,996,000 primarily
as a result of increased sales volume and the addition of Grady McCauley. As a
percentage of net sales, selling and administrative expenses were at 24.4% in
the third quarter of fiscal 1998 as compared to 25.9% in the same period last
year.
Page 9
<PAGE> 10
The Company reported net interest income of $6,000 in the third quarter
of fiscal 1998 as compared to net interest income of $94,000 in the third
quarter of fiscal 1997 reflective of the significantly reduced amount of
short-term cash investments during the quarter. Cash which had been invested was
used at the end of fiscal 1997 for the acquisition of Grady McCauley. The
Company's effective tax rate was 38.1% in the third quarter of fiscal 1998 as
compared to 38.0% in the third quarter of fiscal 1997.
Net income of $1,917,000 increased 51% over $1,269,000 in the third
quarter of fiscal 1997. The increased net income resulted from increased gross
profit on higher net sales, partially offset by increased operating expenses,
increased income taxes, and from the reporting of a larger amount of net
interest income in fiscal 1997 as compared to 1998. Diluted earnings per share
in the third quarter of fiscal 1998 of $.20 compares to $.14 per share in the
same period in fiscal 1997. The weighted average common shares outstanding for
purposes of computing diluted earnings per share increased 7% in 1998 to
9,812,000 shares from 9,182,000 shares in 1997 primarily as a result the common
shares used in the acquisition of Grady McCauley in June 1997.
Certain recently issued accounting pronouncements will affect the
Company's future financial statements and / or disclosures. See Note 2 to these
financial statements for additional discussion.
NINE MONTHS ENDED MARCH 31, 1998 COMPARED WITH NINE MONTHS ENDED MARCH 31, 1997
Net sales of $135,097,000 in the first nine months of 1998 increased
28% over net sales of $105,260,000 in the same period last year. Results of the
Image Group in fiscal 1998 include the operations of the Company's new graphics
subsidiary, Grady McCauley, which was acquired June 30, 1997, and results of the
Commercial / Industrial Lighting Group include the operations of the Company's
newest subsidiary, LSI Marcole, which was acquired February 6, 1998. Image Group
net sales increased 35% and Commercial / Industrial Lighting Group net sales
increased 14% in the first nine months of fiscal 1998 as compared to the prior
year. The increase in Image Group sales is attributed to growth in graphics,
petroleum lighting, and quick service restaurant, as well as to the inclusion of
Grady McCauley in the operating results in fiscal 1998. Net sales of the Image
Group to the petroleum / convenience store market represented 48% and 49% of net
sales in the first nine months of fiscal 1998 and fiscal 1997, respectively.
While sales prices were increased, inflation did not have a significant impact
on sales in 1998 as competitive pricing pressures held price increases to a
minimum.
Gross profit of $46,356,000 increased 31% over last year's gross profit
of $35,411,000, and increased as a percentage of net sales to 34.3% in the first
nine months of fiscal year 1998 as compared to 33.6% in the same period last
year. The increase in gross profit is due primarily to the 28% increase in net
sales, to changes in lighting product mix to higher margin products, and to
improved manufacturing operating efficiencies in the Company's lighting
business, and to reduced margins in the graphics business related to program mix
and under-utilized capacity. The Company's graphics operations reported improved
gross profit percentage with increased sales volume and the addition of Grady
McCauley. Selling and administrative expenses increased to $32,561,000 from
$25,823,000 primarily as a result of increased sales volume and the addition of
Grady McCauley. As a percentage of net sales,
Page 10
<PAGE> 11
selling and administrative expenses were at 24.1% in the first nine months of
fiscal 1998 as compared to 24.5% in the same period last year.
The Company reported net interest expense of $14,000 in the first nine
months of fiscal 1998 as compared to net interest income of $341,000 in the
first nine months of fiscal 1997 reflective of the significantly reduced amount
of short-term cash investments during the period. Cash which had been invested
was used at the end of fiscal 1997 for the acquisition of Grady McCauley. The
Company's effective tax rate was 37.5% in the nine months of fiscal 1998 as
compared to 37.8% in the same period last year.
Net income of $8,572,000 in the first nine months of FY 1998 increased
40% over $6,123,000 in the same period last year. The increased net income
resulted from increased gross profit on higher net sales, partially offset by
increased operating expenses, increased income taxes, and from the reporting of
net interest income in fiscal 1997 as compared to net interest expense in 1998.
Diluted earnings per share in the first nine months of fiscal 1998 of $.88
compares to $.67 per share in the same period in fiscal 1997. The weighted
average common shares outstanding for purposes of computing diluted earnings per
share increased 6% in 1998 to 9,761,000 shares from 9,203,000 shares in 1997
primarily as a result the common shares used in the acquisition of Grady
McCauley in June 1997.
Certain recently issued accounting pronouncements will affect the
Company's future financial statements and / or disclosures. See Note 2 to these
financial statements for additional discussion.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1998 the Company had working capital of $36.0 million,
compared to $30.2 million at June 30, 1997. The ratio of current assets to
current liabilities increased to 2.52 to 1 from 2.22 to 1. The increased working
capital is primarily attributed to increased inventories, cash, and accounts
receivable, and reduced accounts payable, partially offset by increased accrued
expenses.
The Company generated $7.1 million of cash from operating activities in
the first nine months of fiscal 1998 as compared to $6.6 million of cash
generated from operating activities in the same period last year. The Company
generated more cash in the first nine months of fiscal 1998 primarily due to
increased net income, and increased depreciation and amortization expenses.
Additionally, significant increases in inventories and accounts receivable in
fiscal 1998 compared to either reductions or lesser increases in fiscal 1997,
and a significantly larger fiscal 1997 decrease in accounts payable and accrued
expenses contributed to the change between years in net cash flows from
operating activities. As of March 31, 1998, the Company's days sales outstanding
were at approximately 56 days as compared to 64 days at June 30, 1997.
In addition to cash generated from operations, the Company's primary
source of liquidity continues to be its lines of credit. The Company has two
revolving lines of credit totaling $24 million, all of which was available as of
April 30, 1998. The Company believes that the total of available lines of credit
plus cash flows from operating activities is adequate for the Company's
1998-1999 operational and capital expenditure needs. The Company is in
compliance with all of
Page 11
<PAGE> 12
its loan covenants. Capital expenditures of $3.4 million in the first nine
months of fiscal 1998 compare to $1.8 million in the same period last year.
Spending in fiscal year 1998 is primarily related to tooling for new products
and to expansion of certain of the Company's graphics operations. Capital
expenditures totaling approximately $4.5 million are planned for full year
fiscal 1998.
In April 1998, the Board of Directors declared a regular quarterly cash
dividend of $.0625 per share ($600,000) to be paid May 19, 1998 to shareholders
of record on May 12, 1998.
The Company has completed preliminary reviews of its business systems,
office support systems, and its facilities and equipment with respect to year
2000 programming deficiencies. The review is also extending to major suppliers
and customers. The Company currently does not anticipate material costs to be
incurred to detect, modify, or replace any affected systems. The Company
anticipates completion of this process prior to June 30, 1999.
The Company acquired the outstanding common stock of Marcole
Industries, Inc. on February 6, 1998 as well as the building and real estate in
Manchester, Tennessee from which Marcole will continue to operate. Total
purchase price was approximately $912,000, which includes 12,000 common shares
(valued at approximately $200,000) of LSI Industries. For financial statement
purposes the acquisition was accounted for as a purchase, effective on the date
of acquisition. The new subsidiary, LSI Marcole Inc., is a manufacturer of
electrical wire harnesses for the appliance and white goods industry. The
purchase price exceeded the estimated fair value of net assets acquired by
$210,000, which is being amortized over forty years. The allocation was based on
preliminary estimates and may be revised at a later date pending the completion
of certain analysis.
The Company continues to seek opportunities to invest in new products
and markets, and in acquisitions which fit its strategic growth plans in the
lighting and graphics markets. The Company believes that adequate financing for
any such investments or acquisitions will be available through future borrowings
or through the issuance of common or preferred shares in payment for acquired
businesses.
PART II. OTHER INFORMATION
--------------------------
ITEM 2. CHANGE IN SECURITIES
- -----------------------------
c) During the quarterly period ended March 31, 1998, the Company
issued 12,000 Common Shares to one of the owners of a company
which was acquired. This issuance was exempt from the
registration requirements of the Securities Act of 1933 as a
private offering pursuant to Section 4.2 of that Act.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
a) Exhibits
27 Financial Data Schedule
Page 12
<PAGE> 13
b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter
for which this Report is filed.
[All other items required in Part II have been omitted because
they are not applicable or are not required.]
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
LSI Industries Inc.
-------------------
BY: /s/ Robert J. Ready
-------------------------------------
Robert J. Ready
President and Chief Executive Officer
(Principal Executive Officer)
BY: /s/ Ronald S. Stowell
-------------------------------------
Ronald S. Stowell
Vice President, Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
May 5, 1998
Page 13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM
10-Q FILED FOR THE PERIOD ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000763532
<NAME> LSI INDUSTRIES INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> MAR-31-1998
<CASH> 3,238
<SECURITIES> 0
<RECEIVABLES> 28,897
<ALLOWANCES> (583)
<INVENTORY> 26,371
<CURRENT-ASSETS> 59,661
<PP&E> 44,457
<DEPRECIATION> (16,255)
<TOTAL-ASSETS> 100,996
<CURRENT-LIABILITIES> 23,672
<BONDS> 1,036
0
0
<COMMON> 34,897
<OTHER-SE> 39,876
<TOTAL-LIABILITY-AND-EQUITY> 100,996
<SALES> 135,097
<TOTAL-REVENUES> 135,097
<CGS> 88,741
<TOTAL-COSTS> 32,561
<OTHER-EXPENSES> (6)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 86
<INCOME-PRETAX> 13,715
<INCOME-TAX> 5,143
<INCOME-CONTINUING> 8,572
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,562
<EPS-PRIMARY> 0.90
<EPS-DILUTED> 0.88
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<CIK> 0000763532
<NAME> LSI INDUSTRIES INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 14,306
<SECURITIES> 0
<RECEIVABLES> 21,847
<ALLOWANCES> (442)
<INVENTORY> 20,795
<CURRENT-ASSETS> 58,345
<PP&E> 32,823
<DEPRECIATION> (12,845)
<TOTAL-ASSETS> 79,626
<CURRENT-LIABILITIES> 17,141
<BONDS> 1,226
0
0
<COMMON> 27,995
<OTHER-SE> 31,154
<TOTAL-LIABILITY-AND-EQUITY> 79,626
<SALES> 105,260
<TOTAL-REVENUES> 105,260
<CGS> 69,849
<TOTAL-COSTS> 25,823
<OTHER-EXPENSES> 90
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (341)
<INCOME-PRETAX> 9,839
<INCOME-TAX> 3,716
<INCOME-CONTINUING> 6,123
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,123
<EPS-PRIMARY> 0.68
<EPS-DILUTED> 0.67
</TABLE>
