Core Points - Daktronics has entered into a cooperation agreement with its largest shareholder, Alta Fox Capital Management, to enhance governance and shareholder value [1][4] - Peter Feigin, recommended by Alta Fox, will be appointed as a new independent member of the Board of Directors and will join the Transformation Committee [2][5] - The company has confirmed it will host an Investor Day in 2025 to provide insights into its strategy, financial targets, and capital allocation framework [3] - Alta Fox has agreed to withdraw all litigation against Daktronics and support its reincorporation to Delaware [4] Company Overview - Daktronics is a leading U.S.-based designer and manufacturer of dynamic video communication displays and control systems, recognized as the world's largest supplier of large-screen video displays and related technologies [1][7] - The company operates in various business units, including Live Events, Commercial, High School Park and Recreation, and Transportation, as well as an International business unit [7][8] Leadership and Governance - The addition of Peter Feigin is expected to bolster Daktronics' efforts to drive long-term value, as stated by the company's Chairman and CEO [5] - Feigin brings over 25 years of sales and marketing experience, having held significant positions in the sports and entertainment industry [6]

Core Viewpoint - Daktronics, Inc. (NASDAQ: DAKT) is scheduled to report its Q3 earnings on March 5th before the market opens, indicating a significant upcoming event for investors [1]. Company Summary - Daktronics is expected to provide insights into its financial performance, which may influence investor sentiment and stock valuation [1]. Investment Strategy - The article reflects a long-term investment perspective, emphasizing a portfolio that includes a mix of growth, value, and dividend-paying stocks, with a particular focus on value investing [1].

Core Points - Daktronics, Inc. will release its third quarter fiscal 2025 financial results on March 5, 2025, before the market opens [1] - A conference call and webcast will be hosted by CEO Reece A. Kurtenbach and CFO Sheila M. Anderson at 10:00 AM CT on the same day [2] - Participants must pre-register to access the earnings call, and a recording will be available for replay later [3][4] Company Overview - Daktronics is the world's largest supplier of large-screen video displays, electronic scoreboards, and LED text and graphics displays [5] - The company operates in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, along with one International business unit [5]

Core Viewpoint - Daktronics is committed to defending its governance structure against Alta Fox's litigation while emphasizing its long-term commitment to all shareholders and the proposed reincorporation to Delaware for enhanced governance features [1][5][13]. Group 1: Company Performance and Governance - Over the past five years, Daktronics has generated annualized, compounded total returns for shareholders exceeding 23%, with a stock price increase of over 110% in the last twelve months [1]. - The proposed reincorporation to Delaware aims to adopt modern governance features, including a majority voting standard for uncontested director elections and proxy access, which the Board believes will strengthen shareholder rights [2][4]. - The Board asserts that the elimination of cumulative voting will prevent a single minority shareholder, like Alta Fox, from unduly influencing director elections, thereby ensuring a cohesive Board elected by a majority of shareholders [3][4]. Group 2: Alta Fox's Actions and Intentions - Alta Fox is accused of seeking court intervention to prevent shareholders from voting on the reincorporation, indicating a lack of genuine interest in the majority's views [5]. - The Board offered to include Alta Fox's chosen director candidate and enhance governance frameworks, but Alta Fox rejected these proposals, suggesting ulterior motives [6][10]. - Alta Fox has expressed a desire for liquidity on its Daktronics stake, yet its public stance promotes the company as potentially worth $40 per share, contrasting with its private demands for liquidity at lower prices [9][11][12]. Group 3: Board's Commitment and Future Plans - The Board is determined to protect the interests of Daktronics and its shareholders, advocating for a governance framework that benefits the majority rather than a vocal minority [13][14]. - The company intends to continue executing its business transformation plan, which is believed to create sustainable long-term value for all shareholders [14].

Core Insights - Steven Cress is a key figure in quantitative strategy and market data at Seeking Alpha, contributing to the platform's quantitative stock rating system and analytical tools [1][2][3] - The Seeking Alpha Quant Rating system aims to interpret data for investors, providing insights that save time and enhance investment decisions [1][2] - Cress has a strong background in investment research, having founded CressCap Investment Research and Cress Capital Management, and previously worked at Morgan Stanley and Northern Trust [3][4] Company Overview - Seeking Alpha utilizes a data-driven approach to investment research, focusing on removing emotional biases and simplifying complex analyses through algorithms and technologies [2] - The platform offers a daily updated grading system for stock trading recommendations, enhancing accessibility for long-term investors [2] Industry Position - With over 30 years of experience in equity research, quantitative strategies, and portfolio management, Cress is well-equipped to address various investment topics [4]

Shareholders to Vote on a Proposal to Reincorporate the Company in Delaware Reaffirms Commitment to Maintaining Headquarters and Operations in South Dakota BROOKINGS, S.D., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Daktronics, Inc. (“Daktronics,” the “Company,” “we” or “us”) (NASDAQ-DAKT), the leading U.S.-based designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide, today announced that the Company has filed a preliminary proxy statement and plan ...

BROOKINGS, S.D., Dec. 11, 2024 (GLOBE NEWSWIRE) -- Daktronics, Inc. (“Daktronics” or the “Company”) (NASDAQ-DAKT), the leading U.S.-based designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide, today issued the following statement regarding the recent press release and public comments from Alta Fox Capital Management, LLC (together with its affiliates, “Alta Fox”): In May 2023, after a competitive process with several potential financing p ...

Shares of Daktronics (NASDAQ: DAKT ) are up more than 30% since my initial recommendation in July, where I recognized the company's leading position in the US market with a promising outlookAn individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally. Through my years of analyzing co ...

Financing and Ownership - The Company entered into a Securities Purchase Agreement on May 11, 2023, selling a Convertible Note for $25,000, with the Holder owning 4,768 shares, representing 9.99% of the Company's common stock[113]. - The largest outstanding amount under the Convertible Note was $25,563, including $25,000 principal and $563 interest, with interest payments of $1,125 made in the first six months of fiscal 2025[114]. - The Holder's ownership percentage was reduced from 9.99% to 4.99% on June 7, 2023, and later increased to 14.99% on November 25, 2024, effective 61 days after notice[117][121]. Financial Performance - Net sales for the three months ended October 26, 2024, were $208.3 million, an increase of 4.5% compared to $199.4 million for the same period in 2023[148]. - Operating income for the three months ended October 26, 2024, was $15.8 million, a decrease of 18.9% from $19.4 million in the prior year[148]. - Net income increased significantly to $21.4 million, representing an increase of 888.7% compared to $2.2 million for the same period in 2023[148]. - Diluted earnings per share rose to $0.22, up 340.0% from $0.05 in the previous year[148]. - For the first six months of fiscal 2025, net sales were $434.4 million, a slight increase of 0.6% compared to the same period last year[187]. - Gross profit for the same period was $115.6 million, representing a gross margin of 26.6%, down from 29.0% in the prior year[187]. - Operating income for the first half of fiscal 2025 was $38.5 million, which is 8.9% of net sales, compared to 13.8% in the previous year[187]. Expenses and Cost Management - General and administrative expenses increased by 42.8% to $15.6 million, primarily due to higher personnel-related costs and professional fees[155]. - Product design and development expenses rose by 6.7% to $9.8 million, focusing on advancing product features and reducing costs[156]. - Selling expenses increased by 10.0% to $30,340 million, driven by higher personnel-related wages and benefits[173]. - General and administrative expenses rose by 33.1% to $27,273 million, influenced by increased staffing and professional fees[173]. - Product design and development expenses increased by 10.4% to $19,462 million, focusing on advancing product features and reducing costs[173]. Strategic Initiatives and Investments - The Company expects order volume and operating expenses in fiscal 2025 to exceed those of fiscal 2024, driven by investments in capacity and resources[136]. - Projected spending for digital and business transformation initiatives in fiscal 2025 is between $8 million and $10 million[138]. - The Company is engaged in a comprehensive review of its business strategy through the newly formed Business Transformation Office[138]. - The company incurred $4.3 million in consultant-related expenses for strategic and digital transformation initiatives during the first six months of fiscal 2025[179]. - The company plans to spend between $8 million and $10 million on capital expenditures for fiscal 2025, with total projected capital expenditures around $27 million[211]. Market and Product Development - The Company aims to grow revenue faster than the addressable market and expand operating margins, targeting returns on capital in the mid-to-high teens[138]. - The Company is focused on advancing display technologies, including micro-LED and AI-driven content creation systems, to enhance product offerings[137]. - The Company has a leadership position in the audiovisual industry, driven by increasing demand for LED display systems across various sectors[139]. - Order volume growth was driven by demand in the On-Premise, Spectacular, and Out-of-Home markets, offsetting decreases in other business units[175]. - Order bookings in the Spectacular LED video display projects increased, indicating a positive trend in demand despite overall sales challenges[191]. Cash Flow and Liquidity - Cash provided by operating activities was $62.8 million, driven by accounts receivable collection and inventory reduction[198]. - Net cash provided by operating activities increased to $62.8 million for the six months ended October 26, 2024, compared to $44.3 million for the same period in 2023, representing a $18.5 million increase[199]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $52.7 million as of October 26, 2024, up from $48.3 million a year earlier, reflecting a $4.4 million increase[199]. - Working capital increased to $242.7 million as of October 26, 2024, compared to $209.7 million as of April 27, 2024, indicating a positive change in liquidity[208]. - The company maintains a $60 million asset-based revolving credit facility with no borrowings against it as of October 26, 2024, and $5.4 million used for letters of credit[203]. Segment Performance - The Commercial segment reported net sales of $77.6 million, a decrease of 13.1% year-over-year, primarily due to fewer large projects[187][192]. - Live Events segment net sales increased to $185.8 million, reflecting a backlog fulfillment in sports-related facility upgrades[187][193]. - The international segment experienced a decline in net sales due to lower backlog and orders, impacted by geopolitical events[171]. - The international segment experienced a decline in net sales, attributed to lower backlog and orders, with a negative contribution margin of $1.0 million[187][196]. - The company recognized $1.0 million in project-related insurance reimbursement, contributing to improved gross profit margins in the Transportation segment[187][195].

BROOKINGS, S.D., Dec. 04, 2024 (GLOBE NEWSWIRE) -- Daktronics, Inc. (Nasdaq: DAKT), a leading global designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide today announced that Reece Kurtenbach, Chief Executive Officer and Sheila Anderson, Chief Financial Officer will be presenting at The Benchmark Company’s 13th Annual Discovery One-on-One Investor Conference to be held Wednesday, December 11th, 2024 at the New York Athletic Club in New Y ...