Note 2 - Business Segment Information

12 Months Ended

Jun. 30, 2015

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 or “CODM”) in making decisions on how to allocate resources and assess performance. With a new Chief Executive Officer and a new view on how the Company will be managed, the Company realigned its operating segments to be in alignment with the financial information received by the CODM. The Company’s three operating segments are Lighting, Graphics, and Technology, each of which has a president who is responsible for that business and reports to the CODM. An All Other Category as well as Corporate and Eliminations will also be reported in the segment information. As a result of the realignment of the Company’s operating segments in the third quarter of fiscal 2015, all prior period segment information has been revised so as to be comparable with the new segment reporting structure.

The changes made and realignment of the Company’s operating segments involved the following:

1) The segment formerly known as the Electronic Components Segment was renamed as the Technology Segment.

2) The LED Video Screen product line was moved out of the Lighting Segment and into the Technology Segment.

3) The Company’s installation management business (LSI Adapt) and the menu board business (LSI Images) were moved out of the All Other Category and into the Graphics Segment.

The Lighting Segment includes outdoor, indoor, and landscape lighting utilizing both traditional and LED light sources, that have 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).

The Graphics Segment designs, manufactures and installs exterior and interior visual image elements related to traditional graphics, active digital signage along with the management of media content related to digital signage, and menu board systems that are either digital or traditional by design. These products are used in visual image programs in several markets, including the petroleum / convenience store market, multi-site retail operations, banking, and restaurants. The Graphics Segment implements, installs and provides program management services related to products sold by the Graphics Segment and by the Lighting Segment.

The Technology Segment designs, engineers, and manufactures electronic circuit boards, assemblies and sub-assemblies, various control system products used in other applications (including the control of solid-state LED lighting and metal halide lighting), and solid state LED video screens, scoreboards and advertising ribbon boards. This operating segment sells its products directly to customers (primarily in the transportation, original equipment manufacturers, sports, and medical markets) and also has significant inter-segment sales to the Lighting Segment.

The All Other Category includes only the Company’s former subsidiary that designed and produced high-performance light engines, large format video screens using solid-state LED technology, and certain specialty LED lighting. This subsidiary was sold on September 30, 2014 (See Note 15).

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 for options granted to corporate administration employees, 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 years ended June 30, 2015, 2014 and 2013. There was no concentration of accounts receivable at June 30, 2015 or 2014.   

Summarized financial information for the Company’s reportable business segments is provided for the indicated periods and as of June 30, 2015, June 30, 2014, June 30, 2013:

(In thousands)	2015			2014			2013
Net Sales:
Lighting Segment	$	219,920		$	222,604		$	200,335
Graphics Segment		64,895			50,970			53,122
Technology Segment		23,001			24,515			26,361
All Other Category		41			1,374			972
Total Net Sales	$	307,857		$	299,463		$	280,790
Operating Income (Loss):
Lighting Segment	$	14,775		$	10,524		$	11,255
Graphics Segment		1,156			(2,086	)		(950	)
Technology Segment		2,949			1,633			(2,079	)
All Other Category		(183	)		(854	)		(1,754	)
Corporate and Eliminations		(11,164	)		(6,899	)		(5,842	)
Total Operating Income	$	7,533		$	2,318		$	630
Capital Expenditures:
Lighting Segment	$	1,905		$	3,294		$	2,023
Graphics Segment		1,100			461			350
Technology Segment		1,146			726			1,586
All Other Category		4			20			115
Corporate and Eliminations		599			744			3,497
Total Capital Expenditures	$	4,754		$	5,245		$	7,571
Depreciation and Amortization:
Lighting Segment	$	2,965		$	2,779		$	4,369
Graphics Segment		979			950			902
Technology Segment		1,341			1,563			1,422
All Other Category		31			161			185
Corporate and Eliminations		1,015			773			319
Total Depreciation and Amortization	$	6,331		$	6,226		$	7,197

	June 30,		June 30,
	2015		2014
Identifiable Assets:
Lighting Segment	$	90,713	$	93,847
Graphics Segment		29,477		24,425
Technology Segment		28,423		33,440
All Other Category		--		2,860
Corporate and Eliminations		33,766		15,316
Total Identifiable Assets	$	182,379	$	169,888

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.

The Company records a 10% mark-up on intersegment revenues. Any intersegment profit in inventory is eliminated in consolidation. Intersegment revenues were eliminated in consolidation as follows:

(In thousands)	2015		2014		2013
Lighting Segment intersegment net sales	$	2,752	$	3,534	$	2,746
Graphics Segment intersegment net sales	$	559	$	1,088	$	961
Technology Segment intersegment net sales	$	29,412	$	34,238	$	26,522
All Other Category intersegment net sales	$	308	$	2,286	$	2,843

The Company considers its geographic areas to be: 1) the United States; and 2) Canada. The Company’s operations are in the United States, with one operation previously in Canada. As a result of the sale of a subsidiary on September 30, 2014, the Company no longer has a presence in Canada (See Note 15). The geographic distribution of the Company’s net sales and long-lived assets are as follows:

(In thousands)	2015		2014		2013
Net Sales (a):
United States	$	307,816	$	298,089	$	279,818
Canada		41		1,374		972
Total Net Sales	$	307,857	$	299,463	$	280,790

	June 30,		June 30,		June 30,
	2015		2014		2013
Long-Lived Assets (b):
United States	$	44,965	$	45,886	$	46,843
Canada		--		190		336
Total Long-Lived Assets	$	44,965	$	46,076	$	47,179

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.