Daktronics, Inc. (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
reported results for its fiscal year and fourth quarter 2024 ended
on April 27, 2024.
Fiscal Q4 and full year 2024 financial
highlights:
- Sales increased to a new record of
$215.9 million for the fiscal fourth quarter, a 2.9 percent
increase compared to the fiscal 2024 fourth quarter's record
revenue; full-year sales were $818.1 million, an 8.5 percent
increase from the prior year
- Gross margin
for the fourth quarter improved 90 basis points to 25.7 percent
from 24.8 percent in the year-earlier period; full year gross
profit as a percentage of net sales increased 710 basis points to
27.2 percent as compared to 20.1 percent for fiscal 2023, the
highest level since 2009
- Operating
income for the fiscal fourth quarter grew 6.4 percent to $19.4
million as compared to the fourth quarter of fiscal 2023 and
full-year operating income quadrupled to $87.1 million as compared
to fiscal 2023
- Product order
backlog was $316.9 million at April 27, 2024 compared to
$400.7 million at the end of the fourth quarter of fiscal 2023 as
past periods' overbuilt backlog continues to be worked down to
market expected manufacturing lead times(1)
- New product
and service orders for the fourth quarter were $205.8 million, a
14.6 percent increase from $179.5 million in the year-earlier
period; full-year product and service orders were $740.2
million(1), an increase of 8.7 percent as compared to $681.0
million in fiscal 2023;
Reece Kurtenbach, Daktronics' Chairman,
President and Chief Executive Officer, commented, “We both started
and finished fiscal 2024 strong, delivering results that
demonstrate the impact of our more profitable business model across
a range of key financial metrics. Throughout the year, our teams
were laser focused on advancing and extending the operating
improvements we introduced in fiscal 2023. We managed the
fluctuations that come with the project-based and seasonal nature
of our business to outperform even last year’s atypically high
level of backorder fulfillment. Good order availability and a
strong win rate from our demand creation teams across our product
lines, combined with improved manufacturing efficiency and our
strong on-time delivery to customer sites, resulted in expanded
gross and operating profitability and a marked increase in cash
flow generation.”
Mr. Kurtenbach added, "Our orders grew 14.6
percent in the fourth quarter and 8.7 percent for the year, and we
have entered fiscal 2025 committed to capture growing market
demand, leveraging our recognized leadership position and our
strong balance sheet.”
Outlook
Kurtenbach added, “In fiscal 2024, we raised the
baseline profitability of the business, strengthened our
positioning with our customers, and reinforced our competitive
differentiation, particularly against foreign competitors. Building
upon these strengths, we are focused in fiscal 2025 on strategic
priorities which will continue to transform and strengthen our
business model to enhance our earnings power. These important
drivers for our outlook are to prioritize among our end markets,
attack structural cost and to improve our operating model. We are
excited to share some early information about these initiatives
today."
(1) Orders and backlog metrics are not measures
defined by accounting principles generally accepted in the United
States of America ("GAAP"), and our methodology for determining
orders and backlog may vary from the methodology used by other
companies in determining their orders and backlog amounts. For more
information related to backlog, see Part I, Item 1. Business of our
Annual Report on Form 10-K for the fiscal year ended April 27,
2024.
He continued, "Our critical priorities for
fiscal 2025 are to execute a broad digital transformation to
modernize our service systems for field service automation, to
advance our enterprise performance planning capabilities, and to
improve and automate quoting and sales processes. All three
objectives are aligned with our goal of expanding growth and
profitability. In the platform and product realm, where Daktronics
has always been a market leader, our priorities for the year are to
extend our market leadership and emphasize higher margin product
areas that are key to winning more profitable business. As part of
this effort, we are pursuing growth opportunities to further
penetrate our serviceable addressable market – we recently launched
our new Flip-Chip COB (Chip on Board) LED display family, the next
step in evolving our narrow-pixel pitch (NPP) product for the
fastest growing segment of the market. We are also working to add
professional control system and other content-related services to
drive monthly recurring revenue and help our customers derive
higher return on investment and lower total cost of ownership from
their hardware investments. At the same time, to lower overall
costs, we are focused on increasing our operational effectiveness
by improving our manufacturing utilization, aligning production
schedules, and further improving installation methods. Together,
all of these advancements are aligned to support our goals of
increasing customer satisfaction and improving operational
efficiencies to drive future profitable growth.
We believe these initiatives and investments in
digital transformation priorities support our long-term growth and
operating margin targets. Our teams remain focused on driving
penetration in the most profitable segments and reducing the
overall cost to deliver. We are committed to reallocating resources
and capital investment toward end markets, and revenue
opportunities within those markets, that generate returns
meaningfully in excess of our cost of capital."
Fourth Quarter and Year to Date
Results
Orders for the fourth quarter of fiscal 2024
increased 14.6 percent as compared to the fourth quarter of fiscal
2023 driven by strong demand in the Live Events and Transportation
business units and solid growth in the International business unit.
Orders for the full fiscal 2024 year increased 8.7 percent as
compared to fiscal 2023 for the same reasons.
Net sales for the fourth quarter of fiscal 2024
increased by 2.9 percent as compared to the fourth quarter of
fiscal 2023. Net sales for fiscal 2024 increased 8.5 percent as
compared to fiscal 2023. Sales growth was driven by the conversion
of our strong backlog, improved stabilization of supply chains, and
increased manufacturing capacity.
Gross profit as a percentage of net sales
increased to 25.7 percent for the fourth quarter of fiscal 2024 as
compared to 24.8 percent in the fourth quarter of fiscal 2023.
Gross profit as a percentage of net sales increased to 27.2 percent
for fiscal 2024 as compared to 20.1 percent in the prior year. The
gross profit improvement is due to strategic pricing, greater
efficiency of sales volume generation over the cost structure, and
a more stable operating environment.
Operating expenses for the fourth quarter of
fiscal 2024 were $36.0 million compared to $33.9 million for the
fourth quarter of fiscal 2023, an increase of 6.1 percent.
Operating expenses were $135.3 million for the full fiscal 2024
year as compared to $130.0 million for the full fiscal 2023 year,
an increase of 4.1 percent. Operating expenses for the year
increased because of incentive compensation and due to staffing
increases. During the third quarter of fiscal year 2023, we
recorded a $4.6 million non-cash goodwill impairment charge, and we
had no goodwill impairment charge in fiscal 2024.
The above changes resulted in an operating
margin of 9.0 percent for the fourth quarter of fiscal 2024
compared to 8.7 percent for the fourth quarter of fiscal 2023 and
an operating margin of 10.6 percent for fiscal 2024 as compared to
2.8 percent for fiscal 2023.
The increase in interest (expense) income, net
for the fourth quarter of fiscal 2024 compared to the same period
one year ago was primarily due to the closing in May 2023 on the
financing transactions at higher values and interest rates than
were in effect under our previous line of credit during the 2023
fourth quarter.
For the fourth quarter and for the fiscal 2024,
the Company recorded a non-cash charge of $5.0 million and $16.6
million, respectively, for the change in fair value of a
convertible note payable, which is accounted for under the fair
value option. This convertible note was entered into during the
first quarter of fiscal 2024 and no type of instrument was
outstanding during fiscal 2023.
The Company recorded non-cash impairment charges
for investments in affiliates of $5.3 million and $6.4 million in
the fourth quarter and fiscal 2024, respectively, as compared to
$4.5 million for the fourth quarter and fiscal 2023.
Our effective tax rate for fiscal 2024 was 35.9
percent. The effective income tax rate for fiscal 2024 was
primarily impacted due to the fair value adjustment to expense that
is not deductible for tax purposes. Additional other items
impacting the rate were valuation allowances on equity investments,
state taxes, as well as prior year provision to return adjustments
reduced in part by tax benefits from permanent tax credits. Our
effective tax rate for fiscal 2023 was 48.7 percent. The effective
income tax rate for fiscal 2023 was impacted due to valuation
allowances on equity investments and on foreign net operating
losses in Ireland, goodwill impairment, state taxes, a mix of taxes
in foreign countries where the tax rate is higher than in the
United States, as well as a prior year provision to return
adjustments reduced in part by tax benefits from permanent tax
credits.
Balance Sheet and Cash Flow
Cash, restricted cash and marketable securities
totaled $81.7 million at April 27, 2024, and $54.7 million of
long-term debt was outstanding as of that date. The long-term debt
includes the face value of the debt of $38.9 million, the $16.6
million adjustment to fair value, and $(0.8) million of debt
issuance costs, net. There were no draw-downs on our asset-based
revolving credit facility during fiscal year 2024 and $34.2 million
was available to draw at April 27, 2024. In fiscal year 2024,
we generated $63.2 million from operations and used $17.0 million
for purchases of property and equipment. At the end of the fiscal
2024 fourth quarter, our working capital ratio was 2.1 to 1.
Inventory levels dropped 7.7 percent since the end of the 2023
fiscal year on April 29, 2023. Management’s focus remains on
managing working capital to fund the expected growth of the company
with its current sources of liquidity.
Webcast Information
The company will host a conference call and
webcast to discuss its financial results today at 10:00 a.m.
(Central Time). This call will be broadcast live at
http://investor.daktronics.com and be available for replay shortly
after the event.
About Daktronics
Daktronics has strong leadership positions in,
and is the world's largest supplier of, large-screen video
displays, electronic scoreboards, LED text and graphics displays,
and related control systems. The company excels in the control of
display systems, including those that require integration of
multiple complex displays showing real-time information, graphics,
animation, and video. Daktronics designs, manufactures, markets and
services display systems for customers around the world in four
domestic business units: Live Events, Commercial, High School Park
and Recreation, and Transportation, and one International business
unit. For more information, visit the company's website at:
www.daktronics.com, email the company at investor@daktronics.com,
call (605) 692-0200 or toll-free (800) 843-5843 in the United
States, or write to the company at 201 Daktronics Dr., P.O. Box
5128, Brookings, S.D. 57006-5128.
Safe Harbor Statement
Cautionary Notice: In addition to statements of
historical fact, this news release 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. These forward-looking statements reflect the Company's
expectations or beliefs concerning future events. The Company
cautions that these and similar statements involve risk and
uncertainties which could cause actual results to differ materially
from our expectations, including, but not limited to, changes in
economic and market conditions, management of growth, timing and
magnitude of future contracts and orders, fluctuations in margins,
the introduction of new products and technology, the impact of
adverse weather conditions, increased regulation and other risks
described in the company's SEC filings, including its Annual Report
on Form 10-K for its 2024 fiscal year. Forward-looking statements
are made in the context of information available as of the date
stated. The Company undertakes no obligation to update or revise
such statements to reflect new circumstances or unanticipated
events as they occur.
For more information contact:INVESTOR
RELATIONS:Sheila M. Anderson, Chief Financial OfficerTel (605)
692-0200Investor@daktronics.com
LHA Investor Relations Carolyn Capaccio / Jody Burfening
DAKTIRTeam@lhai.com
Daktronics, Inc. and Subsidiaries |
Consolidated Statements of Operations |
(in thousands, except per share amounts) |
(unaudited) |
|
|
Three Months Ended |
|
Year Ended |
|
April 27, 2024 |
|
April 29, 2023 |
|
April 27, 2024 |
|
April 29, 2023 |
Net sales |
$ |
215,880 |
|
|
$ |
209,862 |
|
|
$ |
818,083 |
|
|
$ |
754,196 |
|
Cost of sales |
|
160,501 |
|
|
|
157,718 |
|
|
|
595,640 |
|
|
|
602,841 |
|
Gross profit |
|
55,379 |
|
|
|
52,144 |
|
|
|
222,443 |
|
|
|
151,355 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Selling |
|
15,114 |
|
|
|
14,789 |
|
|
|
56,954 |
|
|
|
56,655 |
|
General and administrative |
|
11,555 |
|
|
|
10,758 |
|
|
|
42,632 |
|
|
|
38,747 |
|
Product design and development |
|
9,283 |
|
|
|
8,334 |
|
|
|
35,742 |
|
|
|
29,989 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,576 |
|
|
|
35,952 |
|
|
|
33,881 |
|
|
|
135,328 |
|
|
|
129,967 |
|
Operating income |
|
19,427 |
|
|
|
18,263 |
|
|
|
87,115 |
|
|
|
21,388 |
|
|
|
|
|
|
|
|
|
Nonoperating (expense)
income: |
|
|
|
|
|
|
|
Interest (expense) income, net |
|
(466 |
) |
|
|
(199 |
) |
|
|
(3,418 |
) |
|
|
(920 |
) |
Change in fair value of convertible note |
|
(4,980 |
) |
|
|
— |
|
|
|
(16,550 |
) |
|
|
— |
|
Other expense and debt issuance costs write-off, net |
|
(6,814 |
) |
|
|
(4,876 |
) |
|
|
(13,096 |
) |
|
|
(7,211 |
) |
|
|
|
|
|
|
|
|
Income before income taxes |
|
7,167 |
|
|
|
13,188 |
|
|
|
54,051 |
|
|
|
13,257 |
|
Income tax (benefit) expense |
|
4,649 |
|
|
|
(8,211 |
) |
|
|
19,430 |
|
|
|
6,455 |
|
Net income |
$ |
2,518 |
|
|
$ |
21,399 |
|
|
$ |
34,621 |
|
|
$ |
6,802 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
46,257 |
|
|
|
45,659 |
|
|
|
45,901 |
|
|
|
45,404 |
|
Diluted |
|
46,872 |
|
|
|
45,910 |
|
|
|
46,543 |
|
|
|
45,521 |
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.47 |
|
|
$ |
0.75 |
|
|
$ |
0.15 |
|
Diluted |
$ |
0.05 |
|
|
$ |
0.47 |
|
|
$ |
0.74 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daktronics, Inc. and Subsidiaries |
Consolidated Balance Sheets |
(in thousands) |
(unaudited) |
|
|
April 27, 2024 |
|
April 29, 2023 |
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
81,299 |
|
$ |
23,982 |
Restricted cash |
|
379 |
|
|
708 |
Marketable securities |
|
— |
|
|
534 |
Accounts receivable, net |
|
117,186 |
|
|
109,979 |
Inventories |
|
138,008 |
|
|
149,448 |
Contract assets |
|
55,800 |
|
|
46,789 |
Current maturities of long-term receivables |
|
298 |
|
|
1,215 |
Prepaid expenses and other current assets |
|
8,531 |
|
|
9,676 |
Income tax receivables |
|
448 |
|
|
326 |
Total current assets |
|
401,949 |
|
|
342,657 |
|
|
|
|
Property and equipment, net |
|
71,752 |
|
|
72,147 |
Long-term receivables, less current maturities |
|
562 |
|
|
264 |
Goodwill |
|
3,226 |
|
|
3,239 |
Intangibles, net |
|
840 |
|
|
1,136 |
Debt issuance costs, net |
|
2,530 |
|
|
3,866 |
Investment in affiliates and other assets |
|
21,163 |
|
|
27,928 |
Deferred income taxes |
|
25,862 |
|
|
16,867 |
TOTAL ASSETS |
$ |
527,884 |
|
$ |
468,104 |
|
|
|
|
|
|
Daktronics, Inc. and Subsidiaries |
Consolidated Balance Sheets (continued) |
(in thousands) |
(unaudited) |
|
|
April 27, 2024 |
|
April 29, 2023 |
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current portion of long-term debt |
$ |
1,500 |
|
|
$ |
— |
|
Accounts payable |
|
60,757 |
|
|
|
67,522 |
|
Contract liabilities |
|
65,524 |
|
|
|
91,549 |
|
Accrued expenses |
|
43,028 |
|
|
|
36,005 |
|
Warranty obligations |
|
16,540 |
|
|
|
12,228 |
|
Income taxes payable |
|
4,947 |
|
|
|
2,859 |
|
Total current liabilities |
|
192,296 |
|
|
|
210,163 |
|
|
|
|
|
Long-term warranty obligations |
|
21,388 |
|
|
|
20,313 |
|
Long-term contract liabilities |
|
16,342 |
|
|
|
13,096 |
|
Other long-term obligations |
|
5,759 |
|
|
|
5,709 |
|
Long-term debt, net |
|
53,164 |
|
|
|
17,750 |
|
Deferred income taxes |
|
143 |
|
|
|
195 |
|
Total long-term liabilities |
|
96,796 |
|
|
|
57,063 |
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
Preferred Shares, no par value, authorized 50 shares; no shares
issued and outstanding |
|
— |
|
|
|
— |
|
Common stock, no par value, authorized 115,000 shares; 48,121 and
47,396 shares issued as of April 27, 2024 and April 29,
2023, respectively |
|
65,525 |
|
|
|
63,023 |
|
Additional paid-in capital |
|
52,046 |
|
|
|
50,259 |
|
Retained earnings |
|
138,031 |
|
|
|
103,410 |
|
Treasury stock, at cost, 1,907 shares as of April 27, 2024 and
April 29, 2023, respectively |
|
(10,285 |
) |
|
|
(10,285 |
) |
Accumulated other comprehensive loss |
|
(6,525 |
) |
|
|
(5,529 |
) |
TOTAL SHAREHOLDERS'
EQUITY |
|
238,792 |
|
|
|
200,878 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
527,884 |
|
|
$ |
468,104 |
|
|
|
|
|
|
|
|
|
Daktronics,
Inc. and Subsidiaries |
Consolidated
Statements of Cash Flows |
(in thousands) |
(unaudited) |
|
|
|
Year Ended |
|
April 27, 2024 |
|
April 29, 2023 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net income |
$ |
34,621 |
|
|
$ |
6,802 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
19,291 |
|
|
|
16,993 |
|
Loss (gain) on sale of property, equipment and other assets |
|
44 |
|
|
|
(691 |
) |
Share-based compensation |
|
2,090 |
|
|
|
2,027 |
|
Equity in loss of affiliates |
|
3,764 |
|
|
|
3,332 |
|
Provision for doubtful accounts, net |
|
373 |
|
|
|
1,009 |
|
Deferred income taxes, net |
|
(9,069 |
) |
|
|
(3,633 |
) |
Non-cash impairment charges |
|
6,359 |
|
|
|
9,049 |
|
Change in fair value of convertible note |
|
16,550 |
|
|
|
— |
|
Debt issuance costs write-off |
|
3,353 |
|
|
|
— |
|
Change in operating assets and liabilities |
|
(14,135 |
) |
|
|
(19,864 |
) |
Net cash provided by operating activities |
|
63,241 |
|
|
|
15,024 |
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Purchases of property and equipment |
|
(16,980 |
) |
|
|
(25,385 |
) |
Proceeds from sales of property, equipment and other assets |
|
174 |
|
|
|
822 |
|
Proceeds from sales or maturities of marketable securities |
|
550 |
|
|
|
3,490 |
|
Purchases of equity and loans to equity investees |
|
(5,050 |
) |
|
|
(4,315 |
) |
Net cash used in investing activities |
|
(21,306 |
) |
|
|
(25,388 |
) |
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Borrowings on notes payable |
|
41,172 |
|
|
|
378,694 |
|
Payments on notes payable |
|
(19,434 |
) |
|
|
(360,944 |
) |
Debt issuance costs |
|
(7,205 |
) |
|
|
(991 |
) |
Borrowings on long-term obligations |
|
— |
|
|
|
1,233 |
|
Principal payments on long-term obligations |
|
(410 |
) |
|
|
(305 |
) |
Proceeds from exercise of stock options |
|
1,302 |
|
|
|
21 |
|
Tax payments related to RSU issuances |
|
(303 |
) |
|
|
(140 |
) |
Net cash provided by financing activities |
|
15,122 |
|
|
|
17,568 |
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES
ON CASH |
|
(69 |
) |
|
|
(522 |
) |
NET INCREASE IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH |
|
56,988 |
|
|
|
6,682 |
|
|
|
|
|
CASH, CASH EQUIVALENTS AND
RESTRICTED CASH: |
|
|
|
Beginning of period |
|
24,690 |
|
|
|
18,008 |
|
End of period |
$ |
81,678 |
|
|
$ |
24,690 |
|
|
|
|
|
|
|
|
|
Daktronics,
Inc. and Subsidiaries |
Net Sales
and Orders by Business Unit |
(in thousands) |
(unaudited) |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
April 27,2024 |
|
April 29,2023 |
|
DollarChange |
|
PercentChange |
|
April 27,2024 |
|
April 29,2023 |
|
DollarChange |
|
PercentChange |
Net
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
38,998 |
|
$ |
43,458 |
|
$ |
(4,460 |
) |
|
(10.3 |
)% |
|
$ |
161,626 |
|
$ |
170,590 |
|
$ |
(8,964 |
) |
|
(5.3 |
)% |
Live Events |
|
104,906 |
|
|
91,530 |
|
|
13,376 |
|
|
14.6 |
|
|
|
338,508 |
|
|
284,900 |
|
|
53,608 |
|
|
18.8 |
|
High School Park and Recreation |
|
36,409 |
|
|
35,621 |
|
|
788 |
|
|
2.2 |
|
|
|
170,349 |
|
|
141,748 |
|
|
28,601 |
|
|
20.2 |
|
Transportation |
|
24,173 |
|
|
18,509 |
|
|
5,664 |
|
|
30.6 |
|
|
|
85,390 |
|
|
72,306 |
|
|
13,084 |
|
|
18.1 |
|
International |
|
11,394 |
|
|
20,744 |
|
|
(9,350 |
) |
|
(45.1 |
) |
|
|
62,210 |
|
|
84,652 |
|
|
(22,442 |
) |
|
(26.5 |
) |
|
$ |
215,880 |
|
$ |
209,862 |
|
$ |
6,018 |
|
|
2.9 |
% |
|
$ |
818,083 |
|
$ |
754,196 |
|
$ |
63,887 |
|
|
8.5 |
% |
Orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
34,084 |
|
$ |
38,902 |
|
$ |
(4,818 |
) |
|
(12.4 |
)% |
|
$ |
135,251 |
|
$ |
158,028 |
|
$ |
(22,777 |
) |
|
(14.4 |
)% |
Live Events |
|
94,755 |
|
|
65,890 |
|
|
28,865 |
|
|
43.8 |
|
|
|
321,191 |
|
|
259,653 |
|
|
61,538 |
|
|
23.7 |
|
High School Park and Recreation |
|
44,581 |
|
|
47,345 |
|
|
(2,764 |
) |
|
(5.8 |
) |
|
|
148,505 |
|
|
144,919 |
|
|
3,586 |
|
|
2.5 |
|
Transportation |
|
20,698 |
|
|
20,939 |
|
|
(241 |
) |
|
(1.2 |
) |
|
|
80,107 |
|
|
66,751 |
|
|
13,356 |
|
|
20.0 |
|
International |
|
11,667 |
|
|
6,473 |
|
|
5,194 |
|
|
80.2 |
|
|
|
55,117 |
|
|
51,603 |
|
|
3,514 |
|
|
6.8 |
|
|
$ |
205,785 |
|
$ |
179,549 |
|
$ |
26,236 |
|
|
14.6 |
% |
|
$ |
740,171 |
|
$ |
680,954 |
|
$ |
59,217 |
|
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash
Flow* |
(in thousands) |
(unaudited) |
|
|
|
Twelve Months Ended |
|
April 27,2024 |
|
April 29,2023 |
Net cash provided by operating activities |
$ |
63,241 |
|
|
$ |
15,024 |
|
Purchases of property and
equipment |
|
(16,980 |
) |
|
|
(25,385 |
) |
Proceeds from sales of
property and equipment |
|
174 |
|
|
|
822 |
|
Free cash flow |
$ |
46,435 |
|
|
$ |
(9,539 |
) |
|
|
|
|
|
|
|
|
* In evaluating its
business, Daktronics considers and uses free cash flow as a key
measure of its operating performance. The term free cash flow is
not defined under accounting principles generally accepted in the
United States of America ("GAAP") and is not a measure of operating
income, cash flows from operating activities or other GAAP figures
and should not be considered alternatives to those computations.
Free cash flow is intended to provide information that may be
useful for investors when assessing period to period results.
Reconciliation of Adjusted Operating Income* |
(in thousands) |
(unaudited) |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
April 27,2024 |
|
April 29,2023 |
|
April 27,2024 |
|
April 29,2023 |
Operating income (GAAP Measure) |
$ |
19,427 |
|
$ |
18,263 |
|
$ |
87,115 |
|
$ |
21,388 |
Plus goodwill impairment |
|
— |
|
|
— |
|
|
— |
|
|
4,576 |
Adjusted operating income
(non-GAAP measure) |
$ |
19,427 |
|
$ |
18,263 |
|
$ |
87,115 |
|
$ |
25,964 |
|
* In evaluating its
business, Daktronics considers and uses adjusted operating income
as a key measure of its operating performance. The term adjusted
operating income is not defined under GAAP and is not a measure of
operating income, cash flows from operating activities, or other
GAAP figures and should not be considered alternatives to those
computations. We define non-GAAP adjusted operating income as
operating income plus asset impairments. Management believes
non-GAAP adjusted operating income is a useful indicator of our
financial performance and our ability to generate cash flows from
operations. Our definition of non-GAAP adjusted operating income
may not be comparable to similarly titled definitions used by other
companies. The table above reconciles non-GAAP adjusted operating
income to comparable GAAP financial measures.
Reconciliation of Adjusted Net Income* |
(in thousands) |
(unaudited) |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
April 27, 2024 |
|
April 29, 2023 |
|
April 27, 2024 |
|
April 29, 2023 |
Net income |
$ |
2,518 |
|
$ |
21,399 |
|
$ |
34,621 |
|
$ |
6,802 |
Change in fair value of
convertible note |
|
4,980 |
|
|
— |
|
|
16,550 |
|
|
— |
Debt issuance costs expensed
due to fair value of convertible note, net of taxes |
|
— |
|
|
— |
|
|
2,149 |
|
|
— |
Goodwill impairment |
|
— |
|
|
— |
|
|
— |
|
|
4,576 |
Equity method affiliates
impairment |
|
5,268 |
|
|
4,473 |
|
|
6,359 |
|
|
4,473 |
Adjusted net income |
$ |
12,766 |
|
$ |
25,872 |
|
$ |
59,679 |
|
$ |
15,851 |
|
|
|
|
|
|
|
|
|
|
|
|
* Adjusted net
income. We disclose adjusted net income as a non-GAAP financial
measurement in order to report our results exclusive of items that
are non-recurring or not core to our operating business. We believe
presenting this non-GAAP financial measurements provides investors
with a consistent way to analyze our performance.
Reconciliation of Long-term Debt |
(in thousands) |
(unaudited) |
|
Long-term debt consists of the following: |
|
|
April 27,2024 |
|
April 29,2023 |
ABL credit facility/prior line of credit |
$ |
— |
|
|
$ |
17,750 |
Mortgage |
|
13,875 |
|
|
|
— |
Convertible note |
|
25,000 |
|
|
|
— |
Long-term debt, gross |
|
38,875 |
|
|
|
17,750 |
Debt issuance costs, net |
|
(761 |
) |
|
|
— |
Change in fair value of
convertible note |
|
16,550 |
|
|
|
— |
Current portion |
|
(1,500 |
) |
|
|
— |
Long-term debt, net |
$ |
53,164 |
|
|
$ |
17,750 |
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