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Daktronics(DAKT) - 2023 Q2 - Quarterly Report
2022-12-12 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, No Par Value DAKT Nasdaq Global Select Market Preferred Stock Purchase Rights DAKT Nasdaq Global Select Market FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 29, 2022 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXC ...
Daktronics(DAKT) - 2023 Q1 - Quarterly Report
2022-09-01 16:00
Financial Performance - Net sales for the first quarter of fiscal 2023 were $171.9 million, an increase of $27.2 million or 18.8% compared to the same period last year [84]. - The gross profit margin decreased to 15.0% in the first quarter of fiscal 2023 from 22.2% in the same period last year, primarily due to inflationary pressures and supply chain disruptions [86]. - The contribution margin for the first quarter of fiscal 2023 was $11.4 million, representing a decline of 44.3% compared to $20.4 million in the prior year [89]. - Contribution margin decreased to $11.4 million, representing 6.6% of net sales, down from 14.1% in the prior year, with a dollar change of $(9.0) million [91]. - Operating loss for the first quarter of fiscal 2023 was $(5.5) million, a significant decline from a profit of $5.7 million in the same period last year, reflecting a 197.5% change [91]. - Net cash used in operating activities was $(22.8) million, compared to $(1.0) million in the prior year, a difference of $(21.8) million attributed to changes in net operating assets and liabilities [98]. - Net cash used in investing activities totaled $(10.4) million, significantly higher than $(1.9) million in the same period last year, with property and equipment purchases amounting to $10.7 million [100]. - Effective tax rate decreased to 15.8% from 25.2% year-over-year, driven by increased estimated tax credits [96]. Order and Backlog - As of July 30, 2022, the product order backlog was $469.1 million, up from $285.3 million on July 31, 2021, and $471.6 million at the end of fiscal 2022 [82]. - Order volume decreased by 6.3% in the first quarter of fiscal 2023 compared to the previous year, with strong bookings in specific sectors like shopping centers and sports venues [85]. Costs and Expenses - Increased input costs have led the company to implement price increases in the latter half of fiscal 2022 and early fiscal 2023 [78]. - Warranty costs as a percentage of sales increased to 1.6% from 1.2% year-over-year [88]. - General and administrative expenses increased by 24.7% to $9.4 million, primarily due to personnel expenses and $1.0 million in professional fees related to shareholder engagement [91]. Capital Expenditures and Investments - Projected total capital expenditures for fiscal 2023 are approximately $30 million, aimed at enhancing manufacturing capacity and automation [112]. - Company plans to invest an additional $2.0 million in current affiliates over the next year [113]. - The company is planning additional cash use for capital spending to grow manufacturing capacity amid ongoing supply chain challenges [78]. Market Conditions - The international market has experienced softening demand due to inflationary pressures and geopolitical events [85]. - The company expects supply chain conditions to persist throughout fiscal 2023, impacting lead times and order fulfillment [84]. Working Capital and Financing - Working capital increased to $118.5 million as of July 30, 2022, up from $103.9 million as of April 30, 2022 [104]. - As of July 30, 2022, the company had $24.1 million advanced on its line of credit, with an agreement to temporarily expand it by $10 million [107]. Risk Exposure - The company has not reported any material changes in its exposure to interest rate, foreign currency, and commodity risks during the first three months of fiscal 2023 [118]. Accounting and Reporting - For a summary of recently issued accounting pronouncements and their effects on financial results, refer to the Notes to the Condensed Consolidated Financial Statements [117].
Daktronics(DAKT) - 2022 Q4 - Annual Report
2022-06-15 16:00
Company Overview - The company employs 2,477 people globally and has evolved from a small operation to a leader in the display industry since its founding in 1968[17]. - The company has invested in display technologies and new markets since becoming publicly traded in 1994, indicating a commitment to growth and innovation[17]. - The company focuses on four domestic business units: Commercial, Live Events, High School Park and Recreation, and Transportation, along with an International business unit[20]. - The company has a tradition of applying engineering resources to anticipate and respond to market needs, employing engineers in various fields to enhance product reliability and serviceability[24]. - The majority of the company's products are manufactured in the United States, with additional facilities in China and Ireland, emphasizing quality control and cost-effectiveness[25]. - The company offers a range of products including video displays, scoreboards, message displays, and intelligent transportation systems, showcasing its diverse product portfolio[32]. Product Development and Innovation - The company emphasizes ongoing product innovations and technological advancements to maintain competitiveness in the large format electronic display industry[24]. - The company has invested in developing new video technology with varied pixel density for improved image quality and expanded product offerings[81]. - The company utilizes the Venus® Control Suite software for managing message displays, which can scale to control large networks of displays[45]. - The company has developed the Vanguard® family of dynamic message displays for road management applications, enhancing traffic direction and information dissemination[46]. - The company’s mobile and modular display systems are designed for both indoor and outdoor events, highlighting its adaptability to various market needs[36]. Financial Performance - Net sales for the quarter ended April 30, 2022, were $610.97 million, an increase from $482.03 million in the same quarter of the previous year, representing a growth of 26.7%[333]. - Gross profit for the quarter was $116.70 million, down from $120.58 million year-over-year, indicating a decrease of 3.2%[333]. - Operating income for the quarter was $4.05 million, a significant decline from $17.11 million in the prior year, reflecting a decrease of 76.3%[333]. - Net income for the quarter was $0.59 million, a sharp drop from $10.93 million in the same quarter last year, representing a decline of 94.6%[336]. - Basic earnings per share (EPS) for the quarter was $0.01, compared to $0.24 in the previous year, indicating a decrease of 95.8%[333]. - Total operating expenses increased to $112.65 million from $103.48 million year-over-year, marking an increase of 8.3%[333]. - The company reported total assets of $440.9 million as of April 30, 2022, compared to $375.2 million a year prior, marking an increase of about 17%[328]. - Total current assets rose to $317.6 million as of April 30, 2022, up from $265.0 million a year earlier, indicating a year-over-year increase of about 20%[328]. Supply Chain and Market Challenges - The company has been affected by supply chain disruptions and inflationary pressures since late fiscal 2021, impacting production and costs[57]. - The company faced supply chain disruptions due to the COVID-19 pandemic, impacting the availability and prices of raw materials, particularly semiconductors[304]. - The company has been impacted by global inflation and shortages in key production materials, which may affect future operations[304]. - The company expects to fulfill the backlog within the next 24 months, although timing may be impacted by supply chain disruptions[69]. Currency and Financial Instruments - Approximately 15.9% of net sales for fiscal 2022 were derived from currencies other than U.S. dollars, highlighting exposure to foreign currency fluctuations[298]. - The notional amount of foreign currency agreements as of April 30, 2022, was $11.3 million, with all contracts maturing within ten months[299]. Employee and Operational Metrics - The company employed approximately 2,246 full-time employees and 231 part-time and temporary employees as of April 30, 2022[84]. - The company’s manufacturing facilities comply with industry-specific requirements, including environmental rules and safety standards[71]. - The company’s ability to compete depends on customer-centric product quality, technical expertise, and cost-effective solutions[78]. Revenue Recognition and Accounting Policies - Daktronics, Inc. recognized revenue based on the percentage of costs incurred for uniquely configured contracts, which requires significant management estimates[316]. - Revenue for uniquely configured systems is recognized over time using the cost incurred input method, reflecting the costs incurred to date compared to estimated total costs for each contract[370]. - The company recognizes revenue when a performance obligation is satisfied, with variability in contract assets and liabilities depending on billing schedules and revenue recognition timing[365]. - The company evaluates contract modifications based on the five-step revenue model, treating them as separate contracts when additional goods or services are distinct[371]. Future Outlook and Strategy - The company plans to focus on new product development and market expansion strategies to improve future performance[335]. - The company expects to maintain or improve margins while generating cash flow from operations to fund future operations and capital expenditures[400]. - The company anticipates utilizing a portion of its line of credit, which was recently extended to April 2025, to support continued investment in capacity to meet expanding demand[401].
Daktronics(DAKT) - 2022 Q4 - Earnings Call Transcript
2022-06-08 18:03
Daktronics, Inc. (NASDAQ:DAKT) Q4 2022 Earnings Conference Call June 8, 2022 11:00 AM ET Company Participants Reece Kurtenbach - Chairman, President and CEO Sheila Anderson - Chief Financial Officer Conference Call Participants Operator Good day, ladies and gentlemen, and welcome to the Daktronics Fiscal Year 2022 Fourth Quarter Earnings Results Conference Call. As a reminder, this conference call is being recorded today, Wednesday, June 8, 2022 and is available on the company's website at www.daktronics.co ...
Daktronics(DAKT) - 2022 Q4 - Earnings Call Presentation
2022-06-08 15:33
FOURTH QUARTER FISCAL 2022 NASDAQ: DAKT SAFE HARBOR STATEMENT In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. All forward-looking statements involve risks and uncertainties which may be out of our control and may cause actual results to differ materially. Such risks include changes in economic conditions, changes in the competitiv ...
Daktronics(DAKT) - 2022 Q3 - Quarterly Report
2022-03-09 16:00
Financial Performance - For the third quarter of fiscal 2022, net sales reached $139.6 million, an increase of $45.4 million or 48.2% compared to the same period last year [87]. - Net sales for the nine months ended January 29, 2022, increased to $448,767, a 22.9% increase from $365,150 in the same period last year [103]. - The Live Events segment saw a significant sales increase of 33.9%, reaching $150,840 compared to $112,626 in the prior year [103]. - The total gross profit for the three months ended January 29, 2022, was $22.3 million, representing 16.0% of net sales, down from 25.4% in the same period last year [90]. - Gross profit margin decreased to 19.3% for the nine months ended January 29, 2022, down from 25.5% in the same period last year [106]. - Operating income for the nine months ended January 29, 2022, was $4,365, a decrease of 72.7% compared to $15,972 in the previous year [113]. - Contribution margin for the three months ended January 29, 2022, was $9.6 million, or 6.9% of net sales, a decrease from 12.7% in the prior year [93]. - Contribution margin for the nine months ended January 29, 2022, was $49,748, representing 11.1% of net sales, a decrease of 12.4% compared to the previous year [113]. - Contribution margin for the third quarter of fiscal 2022 was $9,573, representing 6.9% of net sales, down from 12.7% in the same quarter last year [95]. Orders and Backlog - As of January 29, 2022, the product order backlog was $353 million, up from $195 million on January 30, 2021, and $282 million at the end of the second quarter of fiscal 2022 [86]. - Orders across all business units increased significantly, with Live Events orders rising by 617.6% year-over-year [87]. - Orders for the nine months ended January 29, 2022, increased by 62.5% to $560,242, reflecting strong demand recovery across all markets [103]. Costs and Expenses - Warranty costs as a percentage of sales increased to 2.4% from 1.6% year-over-year [91]. - General and administrative expenses for the nine months ended January 29, 2022, increased by 16.0% to $24,100, primarily due to personnel-related expenses [114]. - Interest expense decreased significantly as there were no outstanding amounts due on the line of credit, compared to $15.0 million last year [99]. Cash Flow and Capital Expenditures - Net cash used in operating activities was $25.5 million for the first nine months of fiscal 2022, a decrease of $73.7 million compared to $48.2 million provided in the same period of fiscal 2021 [121]. - Cash decreased by $48.7 million primarily due to increases in accounts receivable, contract assets, and inventory to support increased order volume during supply chain disruptions [120]. - Net cash used in investing activities totaled $19.9 million in the first nine months of fiscal 2022, compared to $6.8 million in the same period of fiscal 2021 [122]. - The company plans to project total capital expenditures of approximately $25 million for fiscal 2022, focusing on manufacturing equipment and expanded capacity [131]. - The company expects to utilize a portion of its line of credit, which expires in November 2022, to support operations amid ongoing supply chain challenges [133]. Supply Chain and Inflation - The company anticipates continued supply chain disruptions and inflationary pressures affecting financial performance throughout fiscal 2022 and into fiscal 2023 [81]. - The company anticipates ongoing supply chain disruptions and inflationary challenges will impact profitability and cash flows [132]. - The company plans to carry higher inventory levels to mitigate supply chain volatility and expects cash flow impacts due to longer lead times and project delays [79]. - The company is exploring various strategies to manage cash flow, including increasing prices, reducing capital expenditures, and negotiating longer payment terms with suppliers [80]. Tax Rate - The company recorded an effective tax rate of 32.2% for the third quarter of fiscal 2022, a significant decrease from 82.0% in the same quarter of the previous year [101]. - The effective tax rate was 9.4% for the nine months ended January 29, 2022, down from 21.3% for the same period in the previous year [118]. Stock and Working Capital - The company repurchased 600 shares of common stock at a total cost of $3,000 during the nine months ended January 29, 2022 [128]. - Working capital was $113.9 million as of January 29, 2022, down from $118.4 million as of May 1, 2021 [124]. - The company recorded losses for equity method affiliates and foreign currency volatility, impacting other income and expenses [117].
Daktronics(DAKT) - 2022 Q2 - Earnings Call Presentation
2021-12-02 06:38
SECOND QUARTER FISCAL 2022 NASDAQ: DAKT SAFE HARBOR STATEMENT In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. All forward-looking statements involve risks and uncertainties which may be out of our control and may cause actual results to differ materially. Such risks include changes in economic conditions, changes in the competitiv ...
Daktronics(DAKT) - 2022 Q2 - Earnings Call Transcript
2021-12-01 18:14
Daktronics, Inc. (NASDAQ:DAKT) Q2 2022 Earnings Conference Call December 1, 2021 11:00 AM ET Company Participants Sheila Anderson - Chief Financial Officer Reece Kurtenbach - Chairman, President and CEO Conference Call Participants Operator Good day, ladies and gentlemen, and welcome to the Daktronics Fiscal Year 2022 Second Quarter Earnings Results Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded today, Wednesday, December 1, 2021, ...
Daktronics(DAKT) - 2022 Q2 - Quarterly Report
2021-11-30 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___. Commission File Number: 0-23246 Daktronics, Inc. (Exact Name of Registrant as Specified in its Charter) South Dakota 46-0306862 (State or Other Jurisdictio ...
Daktronics(DAKT) - 2022 Q1 - Quarterly Report
2021-08-31 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___. Commission File Number: 0-23246 Daktronics, Inc. (Exact Name of Registrant as Specified in its Charter) South Dakota 46-0306862 (State or Other Jurisdiction o ...