Note 2 - Business Segment Information

12 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 2 — BUSINESS SEGMENT INFORMATION

ASC Topic 280, “Segment Reporting,” establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in financial statements. Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (the Company’s Chief Executive Officer) in making decisions on how to allocate resources and assess performance. While the Company has twelve operating segments, it has only three reportable operating business segments (Lighting, Graphics, and Electronic Components), an All Other Category, and Corporate and Eliminations.

The Lighting Segment includes outdoor, indoor, and landscape lighting that has been fabricated and assembled for the commercial, industrial and multi-site retail lighting markets, the Company’s primary niche markets (petroleum / convenience store market, automotive dealership market, and quick service restaurant market), and LED solid state digital sports video screens. LED video screens are designed and manufactured by the Company’s Lighting Segment and by LSI Saco in the All Other Category. The Lighting Segment includes the operations of LSI Ohio Operations, LSI Metal Fabrication, LSI MidWest Lighting and LSI Lightron.  These operations have been integrated, have similar economic characteristics and meet the other requirements for aggregation in segment reporting. The LSI Greenlee facility in Dallas, Texas was consolidated into the Company’s main lighting facility in Ohio in the second quarter of fiscal 2011.

The Graphics Segment designs, manufactures and installs exterior and interior visual image elements related to graphics. These products are used in visual image programs in several markets, including the petroleum / convenience store market and multi-site retail operations. The Graphics Segment includes the operations of Grady McCauley, LSI Retail Graphics and LSI Integrated Graphic Systems, which have been aggregated as such facilities manufacture two-dimensional graphics with the use of screen and digital printing, fabricate three-dimensional structural graphics sold in the multi-site retail and petroleum / convenience store markets, and each exhibit similar economic characteristics and meet the other requirements for aggregation in segment reporting.

The Electronic Components Segment designs, engineers and manufactures custom designed electronic circuit boards, assemblies and sub-assemblies, and various products used in various applications including the control of solid-state LED lighting and metal halide lighting.  Products produced by this segment may have applications in the Company’s other LED product lines such as digital scoreboards, advertising ribbon boards and billboards.  The Electronic Components Segment includes the operations of LSI ADL Technology as well as LSI Virticus.

The All Other Category includes the Company’s operating segments that neither meets the aggregation criteria, nor the criteria to be a separate reportable segment.  The Operations of LSI Images (menu board systems), LSI Adapt (implementation, installation and program management services related to products of the Graphics and Lighting Segments) and LSI Saco Technologies (designs and produces high-performance light engines, large format video screens using solid-state LED technology, and certain specialty LED lighting) are combined in the All Other Category.

The Company’s corporate administration activities are reported in a line item titled Corporate and Eliminations.  This primarily includes intercompany profit in inventory eliminations, expense related to certain corporate officers and support staff, the Company’s internal audit staff, expense related to the Company’s Board of Directors, stock option expense, certain consulting expenses, investor relations activities, and a portion of the Company’s legal, auditing and professional fee expenses. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes, and deferred income tax assets.

There were no customers or customer programs representing a concentration of 10% or more of the Company’s net sales in the fiscal year ended June 30, 2013 and 2012. The Company’s Lighting Segment and Graphics Segment net sales to 7-Eleven, Inc. represented approximately $39,952,000 or 14% in the fiscal year ended June 30, 2011. The Company had a concentration of receivables with Ahold USA totaling $5.3 million or 11.6% of total net accounts receivable as of June 30, 2013. There was no concentration of accounts receivable at June 30, 2012 or 2011.

Summarized financial information for the Company’s reportable business segments is provided for the indicated periods and as of June 30, 2013, June 30, 2012, June 30, 2011:

(In thousands)	2013			2012			2011
Net Sales:
Lighting Segment	$	206,363		$	199,610		$	197,632
Graphics Segment		46,770			42,131			67,073
Electronic Components Segment		20,333			18,515			21,449
All Other Category		7,324			8,146			7,347
Total Net Sales	$	280,790		$	268,402		$	293,501
Operating Income (Loss):
Lighting Segment	$	10,092		$	11,828		$	9,901
Graphics Segment		(1,253	)		(1,938	)		7,895
Electronic Components Segment		(916	)		3,634			7,886
All Other Category		(1,451	)		(1,114	)		(543	)
Corporate and Eliminations		(5,842	)		(6,079	)		(8,835	)
Total Operating Income	$	630		$	6,331		$	16,304
Capital Expenditures:
Lighting Segment	$	2,081		$	1,606		$	3,231
Graphics Segment		350			576			171
Electronic Components Segment		1,528			558			855
All Other Category		115			182			119
Corporate and Eliminations		3,497			514			355
Total Capital Expenditures	$	7,571		$	3,436		$	4,731
Depreciation and Amortization:
Lighting Segment	$	4,434		$	4,953		$	4,891
Graphics Segment		896			884			967
Electronic Components Segment		1,357			1,130			944
All Other Category		191			223			242
Corporate and Eliminations		319			615			833
Total Depreciation and Amortization	$	7,197		$	7,805		$	7,877

	June 30,		June 30,
	2013		2012
Identifiable Assets:
Lighting Segment	$	90,536	$	93,661
Graphics Segment		28,792		27,377
Electronic Components Segment		30,926		31,805
All Other Category		6,361		8,185
Corporate and Eliminations		12,564		14,198
Total Identifiable Assets	$	169,179	$	175,226

The segment net sales reported above represent sales to external customers.  Segment operating income, which is used in management’s evaluation of segment performance, represents net sales less all operating expenses including impairment of goodwill but excluding interest expense and interest income. Identifiable assets are those assets used by each segment in its operations. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes, and deferred income tax assets. Intersegment revenues were eliminated in consolidation as follows:

(In thousands)	2013		2012		2011
Lighting Segment intersegment net sales	$	2,746	$	2,457	$	3,530
Graphics Segment intersegment net sales	$	1,854	$	1,581	$	1,024
Electronic Components intersegment net sales	$	26,522	$	22,019	$	25,570
All Other Category intersegment net sales	$	6,710	$	5,805	$	5,568

The Company considers its geographic areas to be: 1) the United States; and 2) Canada. The majority of the Company’s operations are in the United States, with one operation in Canada. The geographic distribution of the Company’s net sales and long-lived assets are as follows:

(In thousands)	2013		2012		2011
Net Sales (a):
United States	$	279,818	$	266,590	$	289,827
Canada		972		1,812		3,674
Total Net Sales	$	280,790	$	268,402	$	293,501

	June 30,		June 30,		June 30,
	2013		2012		2011
Long-Lived Assets (b):
United States	$	46,843	$	44,286	$	46,343
Canada		336		322		298
Total Long-Lived Assets	$	47,179	$	44,608	$	46,641

a.	Net sales are attributed to geographic areas based upon the location of the operation making the sale.
b.	Long-lived assets include property, plant and equipment, and other long term assets. Goodwill and intangible assets are not included in long-lived assets.