Who is LSI?• LSI helps manufacturers make their products faster, cheaper, and better, safer, and more efficiently by automating their processes or assembly lines by using modern industrial electronics and computers• LSI offers complete services to manufacturers including engineering, design, fabrication, programming, construction and installation management, and commissioning services
Who is LSI?We turn something like this: Into something like this:
Who is LSI?• LSI is by far the largest control system integrator within 200 miles of Memphis (you have to travel to Nashville, St. Louis, or Dallas to find comparable size and capability).• LSI has the controls capability of a 1300 engineer engineering firm (most have ~10% Controls engineers)
Who is LSI? Branch LocationsLSI is an established system integratorfounded in 1985 and now employs over130 people located in 6 offices around theU.S and in China. • Bartlett, TN (Headquarters) • Jackson, TN • Rossville, GA • Golden, CO • Decatur, AL • Guangzhou, China ** helped build Fedex hub
LSI and Memphis and Midsouth ExpansionsLSI has played a critical role (we are the prime contractor for our scope of work)in building plants or expanding capabilities in plants in Memphis since 2008, andmany of these were PILOT projects: o Riviana Foods (new) – LSI customer [PILOT] o KTG (expansion) – LSI customer [PILOT] o Mitsubishi Electric (new) [PILOT] o Nucor Steel (expansion) – LSI customer [PILOT] o Electrolux (new) – Future LSI customer [PILOT] o American Snuff (move and expansion) [PILOT] o Candle Lamp (expansion) – LSI customer o Lucite (Mitsubishi Rayon expansion) – LSI Customer [PILOT] o City Brewing Company (re-opening of Coors plant) – LSI Customer [PILOT] o Cargill (expansion) – LSI Customer [PILOT]Plants in the Memphis area, but outside of Memphis: o Schulz (Tunica) – LSI customer o Green Tech Automotive (Hernando) – LSI customer o Soladigm (Olive Branch) – LSI customer
LSI has grown in sales… Sales by Year $30,000,000.00 $25,000,000.00Sales in Dollars $20,000,000.00 $15,000,000.00 $10,000,000.00 $5,000,000.00 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sales $5,565,500. $9,293,000. $10,439,000 $10,918,000 $14,717,000 $20,616,000 $16,362,000 $21,850,000 $27,000,000 Based on the average growth rate achieved from 2004 to 2011, LSI will surpass the $100MM mark in 7 years
And in the number of employees… Employees by Year 140 120 100Employees 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 Employees 54 56 63 63 76 86 102 127 Hiring has kept pace with sales!
What is fueling our growth?• Re-shoring of manufacturing operations from places like China and Mexico is driving demand for automation to make manufacturing in the US more globally competitive• Engineering staffs at our clients’ sites have been reduced by the economic downturns in 2001-2003 and 2008-2010• We are excellent at what we do
Local and Global StrengthLSI has received a commitment within the last month for a large project withan international company with operations in North America, SouthAmerica, Europe, and Asia. LSI will be performing process control andautomation projects globally for this new client.Project management functions will be served out of Colorado andMemphis, and engineering functions will be done at a minimum of 3 locations– Colorado, Memphis, and Guangzhou.LSI will be compensated in the $8MM-$12MM range for this effort over thenext 12-18 months. Very few integrators have the staff, breadth, and depth ofapplication and management talent to execute a project of this magnitude inthis timeline across the globe.