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Daktronics(DAKT) - 2025 Q3 - Quarterly Results
DAKTDaktronics(DAKT)2025-03-05 14:17

Financial Performance - Sales for Q3 2025 were 149.5million,a12.2149.5 million, a 12.2% decrease from Q3 2024[4] - Operating loss for Q3 2025 was 3.6 million, compared to operating income of 8.0millioninQ32024;adjustedoperatingincomewas8.0 million in Q3 2024; adjusted operating income was 1.2 million[4] - Net loss for the quarter was 17.2million,whileadjustednetincomewas17.2 million, while adjusted net income was 0.5 million[4] - Gross profit margin was 24.6%, slightly up from 24.5% in Q3 2024[20] - The gross profit for the nine months ended January 25, 2025, was 152.3million,downfrom152.3 million, down from 167.1 million in the same period of 2024[38] - Net loss for the three months ended January 25, 2025, was 17.2million,comparedtoanetincomeof17.2 million, compared to a net income of 10.7 million for the same period in 2024[38] - Adjusted net income for the nine months ended January 25, 2025, was 31,332,000,comparedto31,332,000, compared to 45,970,000 for the same period in 2024, reflecting a decrease of 31.9%[52] Orders and Backlog - Product and service orders totaled 186.9millionforthequarter,adecreaseof2.7186.9 million for the quarter, a decrease of 2.7% from Q3 2024; year-to-date orders increased by 1.2%[4] - Product order backlog was 273.2 million as of January 25, 2025, compared to 236.0millionattheendofQ22025[4]−OrdersfortheCommercialsegmentincreasedby18.7236.0 million at the end of Q2 2025[4] - Orders for the Commercial segment increased by 18.7% to 40,983,000 for the three months ended January 25, 2025, compared to 34,524,000intheprioryear[46]ExpensesandCashFlow−Operatingexpensesincreasedto34,524,000 in the prior year[46] Expenses and Cash Flow - Operating expenses increased to 40.4 million in Q3 2025 from 33.7millioninQ32024,reflectinginvestmentsinITandsalesteamexpansion[21]−NetcashprovidedbyoperatingactivitiesfortheninemonthsendedJanuary25,2025,was33.7 million in Q3 2024, reflecting investments in IT and sales team expansion[21] - Net cash provided by operating activities for the nine months ended January 25, 2025, was 74,839,000, an increase of 39.0% compared to 53,789,000forthesameperiodin2024[48]−FreecashflowfortheninemonthsendedJanuary25,2025,was53,789,000 for the same period in 2024[48] - Free cash flow for the nine months ended January 25, 2025, was 60,383,000, up from 40,268,000intheprioryear,representinga50.140,268,000 in the prior year, representing a 50.1% increase[48] Leadership and Strategy - The leadership transition includes the appointment of Brad Wiemann as Interim CEO and Howard Atkins as Acting CFO to support business transformation efforts[6][7] - The company aims to achieve revenue growth faster than the addressable market, estimated at 7-10%, and expand operating margins to 10-12% by fiscal 2028[11] Assets and Liabilities - As of January 25, 2025, cash, restricted cash, and marketable securities totaled 132.2 million, while total current and long-term debt was 42.5million[25]−Thecompany’slong−termdebt,net,asofJanuary25,2025,was42.5 million[25] - The company’s long-term debt, net, as of January 25, 2025, was 41,019,000, down from 53,164,000asofApril27,2024[54]−TotalassetsasofJanuary25,2025,were53,164,000 as of April 27, 2024[54] - Total assets as of January 25, 2025, were 524.2 million, a slight decrease from $527.9 million as of April 27, 2024[40] Inventory and Tax - Inventory levels decreased by 18.3% since the end of the 2024 fiscal year on April 27, 2024[28] - The effective income tax rate for Q3 2025 was 3.7%, down from 15.0% in Q3 2024[24]