Note 4 - Segment Reporting Information

6 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 4 - SEGMENT REPORTING INFORMATION

The accounting guidance on 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. The Company’s two operating segments are Lighting and Display Solutions, with one executive team under the organizational structure reporting directly to the CODM with responsibilities for managing each segment. Corporate and Eliminations, which captures the Company’s corporate administrative activities, is also reported in the segment information.

The Company’s method for measuring profitability on a reportable segment basis and used by the CODM to assess performance is adjusted operating income and adjusted earnings before interest, tax, depreciation, amortization, along with other non-GAAP adjustments (adjusted EBITDA). These measurements are used to monitor performance compared to prior periods and forecasted results.

The Lighting Segment includes non-residential outdoor and indoor lighting fixtures utilizing LED light sources that have been fabricated and assembled for the Company’s markets, primarily the refueling and convenience store markets, parking lot and garage markets, quick-service restaurant market, retail and grocery store markets, the automotive market, the warehouse market, and the sports court and field market. The Company also services lighting product customers through the commercial and industrial project, stock and flow, and renovation channels. In addition to the manufacture and sale of lighting fixtures, the Company offers a variety of lighting controls to complement its lighting fixtures which include sensors, photocontrols, dimmers, motion detection and Bluetooth systems. The Lighting Segment also includes the design, engineering and manufacturing of electronic circuit boards, assemblies and sub-assemblies which are sold directly to customers.

The Display Solutions Segment manufactures, sells and installs exterior and interior visual image and display elements, including printed graphics, structural graphics, digital signage, menu board systems, millwork display fixtures, refrigerated displays, food equipment, countertops, and other custom display elements. These products are used in visual image programs in several markets including the refueling and convenience store markets, quick-service and casual restaurant market, retail and grocery store, and other retail markets. The Company accesses its customers primarily through a direct sale model utilizing its own sales force. Sales through distribution represent a small portion of Display Solutions sales. The Display Solutions Segment also provides a variety of project management services to complement our display elements, such as installation management, site surveys, permitting, and content management which are offered to our customers to support our digital signage.

The Company’s corporate administration activities are reported in the Corporate and Eliminations line item. These activities primarily include 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, equity compensation expense for various equity awards 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 (if any), and deferred income taxes. 

There were no customers or customer programs representing a concentration of 10% or more of the Company’s consolidated net sales in the three and six months ended December 31, 2025, or 2024. There was no concentration of accounts receivable at December 31, 2025, or 2024.

Summarized financial information for the Company’s operating segments is provided for the indicated periods and as of December 31, 2025, and December 31, 2024:

(In thousands)	Three Months Ended
	December 31, 2025
						Corporate
	Lighting			Display		& Elims			Total
Net sales	$	66,673		$	80,329	$	-		$	147,002
Operating income		7,547			6,076		(4,758	)		8,865
Long-term performance based compensation		81			259		662			1,002
Severance costs and restructuring costs		(1	)		2		(1	)		-
Amortization expense of acquired intangible assets		603			955		-			1,558
Acquisition costs		-			-		200			200
Expense on step-up basis of acquired assets		-			68		-			68
Adjusted operating income		8,230			7,360		(3,897	)		11,693
Depreciation Expense		658			896		115			1,669
Adjusted EBITDA	$	8,888		$	8,256	$	(3,782	)	$	13,362

(In thousands)	Six Months Ended
	December 31, 2025
						Corporate
	Lighting		Display			& Elims			Total
Net sales		135,726		168,525			-		$	304,251
Operating income		16,096		14,667			(10,926	)		19,837
Long-term performance based compensation		190		474			1,620			2,284
Severance costs and restructuring costs		17		(88	)		-			(71	)
Amortization expense of acquired intangible assets		1,206		1,906			-			3,112
Acquisition costs		-		-			420			420
Expense on step-up basis of acquired assets		-		136			-			136
Adjusted operating income		17,509		17,095			(8,886	)		25,718
Depreciation Expense		1,331		1,784			200			3,315
Adjusted EBITDA	$	18,840	$	18,879		$	(8,686	)	$	29,033

(In thousands)	Three Months Ended
	December 31, 2024
					Corporate
	Lighting		Display		& Elims			Total
Net sales	$	58,210	$	89,524	$	-		$	147,734
Operating income		5,971		8,125		(5,637	)		8,459
Long-term performance based compensation		141		358		1,170			1,669
Consulting expense: commercial growth initiatives		-		-		81			81
Amortization expense of acquired intangible assets		603		805		-			1,408
Expense on step-up basis of acquired assets		-		69		-			69
Adjusted operating income		6,715		9,357		(4,386	)		11,686
Depreciation Expense		642		835		133			1,610
Adjusted EBITDA	$	7,357	$	10,192	$	(4,253	)	$	13,296

	Six Months Ended
	December 31, 2024
(In thousands)					Corporate
	Lighting		Display		& Elims			Total
Net sales		116,646		169,183		-		$	285,829
Operating income		11,730		15,833		(9,973	)		17,590
Long-term performance based compensation		210		643		2,000			2,853
Consulting expense: commercial growth initiatives		-		-		81			81
Severance costs and restructuring costs		60		-		-			60
Amortization expense of acquired intangible assets		1,206		1,610		-			2,816
Acquisition costs		-		-		48			48
Expense on step-up basis of acquired assets		-		136		-			136
Adjusted operating income		13,206		18,222		(7,844	)		23,584
Depreciation Expense		1,286		1,682		174			3,142
Adjusted EBITDA	$	14,492	$	19,904	$	(7,670	)	$	26,726

	Three Months Ended				Six Months Ended
(In thousands)	December 31				December 31
	2025		2024		2025		2024
Capital Expenditures:
Lighting Segment	$	449	$	509	$	738	$	1,221
Display Solutions Segment		1,200		529		1,811		576
Corporate and Eliminations		35		28		102		28
	$	1,684	$	1,066	$	2,651	$	1,825
Depreciation and Amortization:
Lighting Segment	$	1,275	$	1,281	$	2,537	$	2,493
Display Solutions Segment		1,849		1,656		3,690		3,291
Corporate and Eliminations		103		81		200		174
	$	3,227	$	3,018	$	6,427	$	5,958

	December 31, 2025		June 30, 2025
Total Assets:
Lighting Segment	$	130,671	$	132,960
Display Solutions Segment		255,739		253,299
Corporate and Eliminations		9,896		10,103
	$	396,306	$	396,362

The segment net sales reported above represent sales to external customers. Identifiable assets are those assets used by each segment in its operations.

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:

Inter-segment sales	Three Months Ended				Six Months Ended
(In thousands)	December 31				December 31
	2025		2024		2025		2024
Lighting Segment inter-segment net sales	$	3,249	$	6,053	$	6,494	$	12,037
Display Solutions Segment inter-segment net sales	$	429	$	133	$	543	$	304