Note 5 - Business Segment Information

12 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Segment Reporting [Text Block]

NOTE 5 — BUSINESS SEGMENT 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 leadership team reporting directly to the CODM with responsibilities for managing the performance across the segments.

The Company’s methods for measuring profitability under GAAP on a reportable segment basis and used by the CODM to assess performance is adjusted net income. These measurements are used to monitor performance compared to prior periods and forecasted results. The CODM does not look at disaggregated expenses at the segment level. The CODM does review expenses on a consolidated basis which is consistent with the categories of expense reported on the consolidated statements of operations.

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, non-digital signage, menu board systems, millwork and metal display fixtures, refrigerated displays, heated 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 Unallocated corporate expenses net of tax line item. These activities primarily include 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 net sales in the fiscal year ended  June 30, 2026, 2025, or 2024. There was no concentration of accounts receivable at  June 30, 2026, 2025, or 2024.

Summarized financial information for the Company’s reportable business segments is provided for the indicated periods and as of June 30, 2026, June 30, 2025 and June 30, 2024:

(In thousands)	Twelve Months Ended
	June 30, 2026
	Lighting			Display			Total
Total sales	$	281,169		$	424,526		$	705,695
Inter-segment sales		(14,946	)		(1,352	)		(16,298	)
Net Sales		266,223			423,174			689,397
Other segment items *		(236,788	)		(384,235	)		(621,023	)
Adjusted net income		29,435			38,939			68,374
Unallocated corporate expenses								(20,242	)
Interest expense								(5,928	)
Long-term performance based compensation								(3,458	)
Amortization expense of acquired intangible assets								(7,220	)
Severance costs and restructuring costs								(63	)
Acquisition costs								(8,340	)
Lease expense on the step-up basis of acquired leases								(508	)
Foreign currency translation loss on intercompany loan								(329	)
Tax rate difference between reported and adjusted net income								293
Net Income							$	22,579

(In thousands)	Twelve Months Ended
	June 30, 2025
	Lighting			Display			Total
Total sales	$	268,332		$	325,914		$	594,246
Inter-segment sales		(19,975	)		(894	)		(20,869	)
Net Sales		248,357			325,020			573,377
Other segment items *		(222,588	)		(302,403	)		(524,991	)
Adjusted net income		25,769			22,617			48,386
Unallocated corporate expenses								(12,374	)
Interest expense								(3,129	)
Long-term performance based compensation								(3,951	)
Amortization expense of acquired intangible assets								(4,745	)
Severance costs and restructuring costs								(240	)
Acquisition costs								(900	)
Lease expense on the step-up basis of acquired leases								(285	)
Foreign currency translation loss on intercompany loan								489
Tax rate difference between reported and adjusted net income								1,132
Net Income							$	24,383

(In thousands)	Twelve Months Ended
	June 30, 2024
	Lighting			Display			Total
Total sales	$	285,264		$	208,023		$	493,287
Inter-segment sales		(22,851	)		(798	)		(23,649	)
Net Sales		262,413			207,225			469,638
Other segment items *		(233,643	)		(188,514	)		(422,157	)
Adjusted net income		28,770			18,711			47,481
Unallocated corporate expenses								(13,031	)
Interest expense								(2,156	)
Long-term performance based compensation								(3,272	)
Amortization expense of acquired intangible assets								(3,671	)
Severance costs and restructuring costs								(396	)
Acquisition costs								(735	)
Tax rate difference between reported and adjusted net income								757
Net Income							$	24,977

* Costs of products and services sold, selling and administrative expenses, other income and expense and income tax expense.

	Twelve Months Ended
(In thousands)	June 30
	2026			2025			2024
Capital expenditures:
Lighting Segment	$	2,192		$	1,883		$	3,555
Display Solutions Segment		2,852			1,499			1,386
	$	5,044		$	3,382		$	4,941
Total segment capital expenditures:	$	5,044		$	3,382		$	4,941
Other unallocated capital expenditures		98			83			447
Consolidated capital expenditures:	$	5,142		$	3,465		$	5,388
Income tax expense:
Lighting Segment	$	6,064		$	7,318		$	7,172
Display Solutions Segment		4,062			8,292			4,424
	$	10,126		$	15,610		$	11,596
Total segment income tax expense:	$	10,126		$	15,610		$	11,596
Other unallocated income tax benefit		(1,231	)		(6,955	)		(3,474	)
Consolidated income tax expense:	$	8,895		$	8,655		$	8,122
Depreciation and Amortization:
Lighting Segment	$	5,089		$	5,060		$	5,167
Display Solutions Segment		11,066			7,190			4,480
	$	16,155		$	12,250		$	9,647
Total segment depreciation and amortization:	$	16,155		$	12,250		$	9,647
Other unallocated depreciation and amortization		410			325			352
	$	16,565		$	12,575		$	9,999

	June 30, 2026		June 30, 2025
Identifiable Assets:
Lighting Segment	$	139,921	$	132,960
Display Solutions Segment		675,628		253,299
	$	815,549	$	386,259
Total segment assets:	$	815,549	$	386,259
Deferred tax assets		-		7,302
Corporate and Eliminations		14,315		2,801
Consolidated assets:	$	829,864	$	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.