LSI Industries Inc. (NASDAQ:LYTS) Q1 2024 Earnings Call Transcript

And this is where you have a unique skill set. You kind of proved yourself capable of assimilating another business with JSI really successfully. So, it sounds like the M&A funnel now is open and you’re reviewing some interesting things. And I just wondered if there’s any personnel adjustments or engagements with investment bankers or anything of the sort that you think could be used for that you may be considering at this point, or do you feel like you’re in a good spot in terms of your reviewing process?

Jim Clark: Rick, good morning, and thank you for the question. Listen, here’s what I would say is our ears are always open. There’s plenty of partnership opportunities out there, and we’re always listening to the folks that we work with today and others from a banking standpoint and that type of thing. I think the current environment, none of us have really had to face these kind of headwinds in decades. So, the financial partners that are aware of that can react to the current environment and have a perspective on what the future looks like in the past or are our most valuable partners. In terms of personnel in the company, we have been training for this since day 1. Everybody that’s here are truly hands-on people. There are no — there’s kind of no ivory tower positions here.

Everybody has a skill set and they can be called to action at any time and the — not only are they available and capable, they’re willing. And we — I think we’ve got a diverse group of people here that would really help with any type of integration and value extraction and our ability to kind of get feet on the ground and immediately start working on the value we see in any type of M&A work. And then lastly, taking all of this backwards, as I just mentioned with George’s comments or question, the environment just feels richer to us right now. I like the folks that are able to talk about how they’ve grown, but how they see their future and how we could work together. And it’s not just here you go, add on to this. It’s here you go, and here’s how I think we can accelerate each other’s business.

And I really value that in the folks that we meet with. And then lastly, I would say, and I think you’re aware of it and everyone on the call, this vertical strategy allows us to really kind of cast a wide net relative to the things we’re looking at. It’s focused. Don’t get me wrong. It’s focused and it’s got a good point to it, but it’s not so narrow that we’re just looking at a lighting company or we’re just looking at a display solution company. I mean, I think that JSI was a great example where it caught some folks, they didn’t see — they didn’t see it immediately, but I think they see it now. And we’ve had a number of conversations like that also. So, I’m excited. It never moves as quickly as you wanted to and it has to be right for us and right for the other company and we need that value out of it.

It could be next quarter or it could be next year.

Richard Fearon: Thanks for the additional color, Jim. And regarding the JSI and the great fit that’s kind of evolved there, you see new R-290 capabilities that the company has helping to open up some new doors, especially as you look to penetrate the C-Store vertical with those displays?