LSI Industries Inc.

Welcome to the LSI industry's third quarter 2025 results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jim Gillies. Please go ahead.

Welcome, everyone, and thank you for joining today's call. We issued a press release before the market opened this morning detailing our fiscal 25 third quarter results. In addition to this release, we also posted a conference call presentation in the investor relations section of our corporate website. Information contained in this presentation will be referenced throughout today's conference call. Included are certain non-GAAP measures for improved transparency of our operating results. A complete reconciliation of GAAP and non-GAAP results is contained in our press release and 10-Q. Please note that management's commentary and responses to questions on today's conference call may include forward-looking statements about our business outlook. Such statements involve risks and opportunities, and actual results could differ materially. I refer you to our Safe Harbor Statement, which appears in this morning's press release, for more details. Today's call will begin with remarks summarizing our fiscal third quarter results. At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn the call over to LSI President and Chief Executive Officer Jim Clark.

Thank you, Jim, and good morning, all. Thank you for joining us this morning. Today we'll be discussing our third quarter 2025 earnings results. First, let me say we had a very busy quarter. The entire LSI team delivered some very solid results. We achieved sales growth of 22% through some very choppy customer demand schedules. Although our margin was impacted by manufacturing and logistics inefficiencies created by these choppy schedules, our team has been able to serve our customers well, and I'm confident we will regain this margin as things stabilize. The service levels we are able to provide our customers continue to demonstrate why our vertical model and full-service approach is such a compelling benefit. One-stop shopping with a partner you can trust. In the quarter, we completed the acquisition of Canada's best store fixtures in Ontario, Canada, and we welcomed the entire team into the LSI family. We held our national sales meeting in February in Cincinnati, which we have all our LSI sales marketing and product development folks together for four days, introducing our new products, discussing customer and market opportunities, and developing strategies to retain existing customers and pursue new business opportunities. All these efforts resulted in net sales for the quarter at 132.5 million. That is sales growth of 22% year over year, driven by strong performance in the display solutions business. Total sales in display solutions increased by 70 percent versus the prior year, including 15 percent organic growth in segments with 20 percent growth in grocery and some strong long-term projects in petroleum sea store market space. Last Friday, we celebrated the one-year anniversary of EMI joining LSI, and the business continues to perform very well, and we have worked on cross-selling opportunities and overall margin improvements in the EMI business. Very encouraging. Lighting sales lagged a bit on a year-over-year basis, but margins continue to do very well with 110 basis point improvement in operating margins. Most of the headwinds in lighting sales have been driven by a slowdown in large project activities, whereas these sales haven't been lost, but they've very frequently been put on pause with various construction delays and other factors. The good news in lighting is we've seen a strong rebound in the third quarter with large project order activity and our book to bill ratio for the third quarter being better than 1.13 times as we've seen a number of larger project activities in quotes convert to orders. We're exiting the quarter with a lighting backlog of 18% above prior year. This is very encouraging on the large project front and it's a trend we would like to see continue. Jim Gilles will provide additional financial details in a minute. So now let me change gears and turn to the remainder of our fiscal year 2025 and the remainder of our calendar year 2025. Back in 2019, LSI as a company was highly dependent on foreign source products and components, particularly in our lighting segment. At that time, we were approximately 80% foreign source and 20% domestic source. In that same year, 2019, we made the decision to onshore and reshore a lot of our manufacturing and sourcing activities. And today, we stand about 70% domestic product and components and 30% foreign sourced. The reason why I bring this up is the trade and tariff activities. Now, while no one is immune from the impact of this ongoing trade war, I do believe LSI will have an advantage to many of our competitors who rely solely on or heavily on foreign sourced products. We believe suppliers from China who provide direct imports of finished goods will be heavily impacted, and that should bode well for our value-oriented products and create an opportunity for some new customers to experience the LSI difference. Lastly, on the subject of procurement, our folks have been working for the past few months to identify alternative sources for foreign-sourced items that could be impacted, and they continue to look for ways in which we can leverage our current position. More to come on this, but again, I think this could be an advantage for our company, and we look forward to seeing how it will play out. I think the most important message I'm trying to convey is we have a plan. We cannot control tariffs, how they'll be applied and to whom. We can't control the amount of the tariffs or how other countries will react, but we do have a team of folks who are committed to minimizing impact to our customers and trying to turn this situation into an advantage for our company, our customers, our partners, and our shareholders. We accomplished a lot in this quarter. We continue to build a stronger, more capable business with a strong platform equipped to deliver profitable growth consistent with our objectives outlined in our fast-forward plan. We're using the experiences of our management team to effectively integrate Canada's best store fixtures and continue our work with EMI. We believe that we have significant growth opportunities in front of us, and we remain committed to growing our business while balancing the needs of our customers, shareholders, and employees alike. With that, I'll turn the call over to Jim Glees for a closer look at our financials. Jim?