Daktronics(US:DAKT)2022-06-08 18:03Financial Data and Key Metrics Changes - The order volume reached an all-time record of $846 million for the year and $286 million for the fourth quarter, rebounding from pandemic lows [5] - Sales for the year increased to $611 million from $482 million, representing a 26.7% year-over-year increase [9] - Gross profit as a percentage of net sales was 19.1% for fiscal 2022, down from 25% the previous year, primarily due to supply chain disruptions and inflationary challenges [11] - Operating expenses increased to $112.7 million for fiscal 2022, up 8.9% from $103.5 million in fiscal 2021 [12] - For the fourth quarter, net sales increased 38.8% to $162.2 million compared to $116.9 million in the same quarter of the previous year [13] Business Line Data and Key Metrics Changes - The Live Events business unit saw a rebound as sports and entertainment venues returned to normal operations [6] - High School Park and Recreation business unit growth was driven by increased adoption of video displays [7] - The Commercial business unit experienced strong demand from out-of-home advertising customers [8] - Transportation order levels increased as project planning resumed to pre-pandemic levels [8] Market Data and Key Metrics Changes - The International business unit also saw growth due to recovery in out-of-home and sports venue areas [8] - The company faced challenges with supply chain disruptions, particularly in semiconductor availability and shipping logistics [22][23] Company Strategy and Development Direction - The company plans to invest approximately $30 million in capital expenditures for fiscal 2023 to increase capacity and automation [18] - There is a focus on long-term profitable value creation and adapting to evolving customer needs through technology investments [28][30] - The company aims to grow its international business and enhance its market share in various sectors [29] Management's Comments on Operating Environment and Future Outlook - Management expects continued volatility in supply chain and production costs through fiscal 2023 [27] - There is optimism about long-term growth despite current challenges, with a focus on creating shareholder value [31] - The company is adjusting pricing and production schedules in response to inflationary pressures and supply chain issues [25][26] Other Important Information - The cash position at the end of the year was $22 million, with $26.8 million used from operations to increase inventory levels [15][16] - Capital spend for the year was $20.4 million, with investments in production capacity and automation [17] Q&A Session Summary Question: Is there a lag in adjusting pricing and production schedules due to supply chain issues? - Management confirmed there is a lag in seeing price increases reflected in backlog and sales due to active quotes [34] Question: Should gross margin be expected to improve slightly in the upcoming quarter? - Management indicated that while predicting future margins is challenging, they believe processes and actions taken will support gross margin growth over time [35]