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 reported results
for its fiscal 2024 third quarter which ended January 27,
2024.
Q3 FY2024 financial highlights:
- Year-to-date product and service orders were $534.4 million(1),
an increase of 6.6 percent as compared to $501.4 million in the
same period of fiscal 2023; during the third quarter of fiscal
2024, new product and service orders were $192.1 million, a 29.4
percent increase from $148.4 million in the year-earlier
period
- Sales of $170.3 million, a 7.9 percent decrease from the third
quarter of fiscal 2023; the year-ago period's record revenue was
driven by high backorder fulfillment as a result of recovery from
pandemic-related supply chain challenges and labor
availability
- Gross profit as a percentage of net sales of 24.5 percent as
compared to 22.6 percent in the third quarter of fiscal 2023
- Operating income of $8.0 million, a 12.9 percent increase as
compared to $7.1 million in the third quarter of fiscal 2023
- Product order backlog was $328.3 million(1) at January 27,
2024 compared to $400.7 million at the end of the fourth quarter of
fiscal 2023 and $429.1 million at the end of the third quarter of
fiscal 2023 as past periods' overbuilt backlog continues to be
worked down through reductions in manufacturing lead times
"Our teams’ strong execution of the
manufacturing, operating, sourcing and pricing improvements that we
put in place over the past two years drove efficiencies and raised
the baseline profitability of the business. As a result, we
delivered positive operating income in a seasonally low-volume
period that is historically a loss quarter despite lower volume
compared to last year’s high level of backorder fulfillment. This
performance, plus careful working capital management, generated
$8.0 million in operating income. Our orders are up 6.6 percent
year-to-date on strong third quarter growth of 29.4 percent,
reflecting strengthening demand in each of our domestic end
markets,” stated Reece Kurtenbach, Daktronicsʹ Chairman, President
and Chief Executive Officer.
FQ4 OutlookFiscal fourth
quarter seasonality is expected to be similar to pre-pandemic
patterns. Fiscal 2024 fourth quarter net sales are expected to
increase sequentially as compared to the third quarter in fiscal
year 2024 and decrease from the year-ago period, which was again a
high-volume period in which we were fulfilling backorders related
to pandemic recovery. Gross margin is expected to be similar in
comparison to the unique 2023 fourth quarter and operating margin
and cash flows are expected to be down as compared to this same
period.
Kurtenbach added, “Our year-to-date results
reflect our strengthened performance and serve as evidence that we
have successfully adapted to the business conditions that
challenged Daktronics. Our focus for the remainder of the fiscal
year is on capturing growth in our addressable end markets by
expanding our share of customer spend, adding recurring control
system and content development revenue where applicable, and
winning new customers. We are also leveraging narrow pixel pitch
and other technologies to deepen our penetration of current and
enter potential new end markets, including military. Last, we
continue to increase our nimbleness and flexibility in capacity
allocation and utilization, qualifying each of our plants around
the world for selected product manufacture and carefully assigning
capacity, adjusting utilization where necessary.”
Third Quarter
PerformanceOrders for the third quarter of fiscal 2024
increased by 29.4 percent from the third quarter of fiscal 2023
driven by strong demand in the Live Events business unit,
rebounding demand in the Spectacular and Out‐of‐Home markets in our
Commercial business unit, and solid growth in the High School Parks
and Recreation and Transportation business units. These higher
orders offset an order decrease in the International business
unit.
Net sales for the third quarter of fiscal 2024
decreased by 7.9 percent as compared to the third quarter of fiscal
2023. The third quarter of every year is characterized by
seasonally lower volume, and the decrease is attributable to the
year-ago period’s unseasonably record revenue driven by high
backorder fulfillment resulting from recovery of pandemic-related
supply chain challenges and labor availability. The sales decrease
was driven by comparatively lower volumes in the Commercial and
International business units, partially offset by order
fulfillments in the Live Events, High School Park and Recreation,
and Transportation business units.
Gross profit as a percentage of net sales
increased to 24.5 percent for the third quarter of fiscal 2024 as
compared to 22.6 percent a year earlier. 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 decreased 2.6 percent to
$33.7 million in the third quarter of fiscal 2024 as compared to
$34.6 million for the third quarter of fiscal 2023. This decrease
is primarily attributable to recording a $4.6 million non-cash
goodwill impairment charge during the third quarter of fiscal 2023
that was not repeated in the third quarter of fiscal 2024. This
decrease is partially offset by the increases in personnel-related
expenses.
Operating income percent for the third quarter
of fiscal 2024 was 4.7 percent compared to 3.8 percent for the
third quarter of fiscal 2023 due to the combined factors discussed
above.
The increase in interest (expense) income, net
for the third 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
third quarter.
For the three months ended January 27,
2024, the Company recorded $6.3 million of income for the non-cash
change in fair value of the convertible note payable, which is
accounted for under the fair value option.
The effective tax rate of 15.0 percent resulted
in $1.9 million of income tax expense for the third quarter of
fiscal 2024. Income before tax includes the impacts of the change
in the convertible note fair value; however, these changes are not
taxable for tax purposes which impacts the effective tax rate. The
reduction in the fair value adjustment during the third quarter of
fiscal 2024 resulted in a lower than normal effective tax rate.
Absent any major tax changes, we expect our full year effective tax
rate to be in the mid-twenties before the impacts of fair value
accounting for the convertible note.
Balance Sheet and Cash Flow
Cash, restricted cash and marketable securities totaled $77.2
million at January 27, 2024, and $50.0 million of long-term
debt was outstanding as of that date. The long-term debt includes
the face value of the debt of $39.3 million, the $11.6 million
adjustment to fair value, and $0.9 million of debt issuance costs,
net. There were no draw-downs on our asset-based revolving credit
facility during the first nine months of fiscal 2024 and $32.9
million available to draw at January 27, 2024. In the first
nine months of fiscal 2024, we generated $53.8 million from
operations and used $13.6 million for purchases of property and
equipment. At the end of the fiscal 2024 third quarter, our working
capital ratio was 2.2 to 1. Inventory levels dropped 6.2 percent
since the end of the 2023 fiscal year on April 29, 2023 and dropped
slightly since the end of the second fiscal quarter of 2024.
Management’s focus remains on managing working capital through
expected growth of the company.
Webcast Information The company
will host a conference call and webcast to discuss its financial
results today at 10:00 am (Central Time). This call will be
broadcast live at http://investor.daktronics.com where related
presentation materials will also be posted prior to the conference
call. A webcast will be available for replay shortly after the
event.
About DaktronicsDaktronics 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.
Safe Harbor StatementCautionary
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 2023 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
(1) Orders and backlog 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 29, 2023. this
release does not include a reconciliation of orders or backlog, as
it would be impractical to do so without unreasonable effort.
|
Daktronics, Inc. and Subsidiaries |
Consolidated Statements of Operations |
(in thousands, except per share amounts) |
(unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
January 27, 2024 |
|
January 28, 2023 |
|
January 27, 2024 |
|
January 28, 2023 |
Net sales |
$ |
170,303 |
|
|
$ |
184,975 |
|
|
$ |
602,203 |
|
|
$ |
544,334 |
|
Cost of sales |
|
128,585 |
|
|
|
143,262 |
|
|
|
435,139 |
|
|
|
445,123 |
|
Gross profit |
|
41,718 |
|
|
|
41,713 |
|
|
|
167,064 |
|
|
|
99,211 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Selling |
|
14,258 |
|
|
|
12,908 |
|
|
|
41,840 |
|
|
|
41,866 |
|
General and administrative |
|
10,589 |
|
|
|
9,861 |
|
|
|
31,077 |
|
|
|
27,989 |
|
Product design and development |
|
8,835 |
|
|
|
7,250 |
|
|
|
26,459 |
|
|
|
21,655 |
|
Goodwill impairment |
|
— |
|
|
|
4,576 |
|
|
|
— |
|
|
|
4,576 |
|
|
|
33,682 |
|
|
|
34,595 |
|
|
|
99,376 |
|
|
|
96,086 |
|
Operating income |
|
8,036 |
|
|
|
7,118 |
|
|
|
67,688 |
|
|
|
3,125 |
|
|
|
|
|
|
|
|
|
Nonoperating (expense)
income: |
|
|
|
|
|
|
|
Interest (expense) income, net |
|
(745 |
) |
|
|
(398 |
) |
|
|
(2,952 |
) |
|
|
(721 |
) |
Change in fair value of convertible note |
|
6,340 |
|
|
|
— |
|
|
|
(11,570 |
) |
|
|
— |
|
Other expense and debt issuance costs write-off, net |
|
(1,000 |
) |
|
|
(1,380 |
) |
|
|
(6,282 |
) |
|
|
(2,335 |
) |
|
|
|
|
|
|
|
|
Income before income taxes |
|
12,631 |
|
|
|
5,340 |
|
|
|
46,884 |
|
|
|
69 |
|
Income tax expense |
|
1,889 |
|
|
|
1,627 |
|
|
|
14,781 |
|
|
|
14,666 |
|
Net income (loss) |
$ |
10,742 |
|
|
$ |
3,713 |
|
|
$ |
32,103 |
|
|
$ |
(14,597 |
) |
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
46,173 |
|
|
|
45,387 |
|
|
|
45,975 |
|
|
|
45,320 |
|
Diluted |
|
50,837 |
|
|
|
45,448 |
|
|
|
46,608 |
|
|
|
45,320 |
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.23 |
|
|
$ |
0.08 |
|
|
$ |
0.70 |
|
|
$ |
(0.32 |
) |
Diluted |
$ |
0.09 |
|
|
$ |
0.08 |
|
|
$ |
0.69 |
|
|
$ |
(0.32 |
) |
Daktronics, Inc. and Subsidiaries |
Consolidated Balance Sheets |
(in thousands) |
(unaudited) |
|
|
January 27, 2024 |
|
April 29, 2023 |
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
76,764 |
|
$ |
23,982 |
Restricted cash |
|
429 |
|
|
708 |
Marketable securities |
|
— |
|
|
534 |
Accounts receivable, net |
|
100,601 |
|
|
109,979 |
Inventories |
|
140,251 |
|
|
149,448 |
Contract assets |
|
47,857 |
|
|
46,789 |
Current maturities of long-term receivables |
|
271 |
|
|
1,215 |
Prepaid expenses and other current assets |
|
7,853 |
|
|
9,676 |
Income tax receivables |
|
1,504 |
|
|
326 |
Total current assets |
|
375,530 |
|
|
342,657 |
|
|
|
|
Property and equipment, net |
|
72,406 |
|
|
72,147 |
Long-term receivables, less current maturities |
|
95 |
|
|
264 |
Goodwill |
|
3,263 |
|
|
3,239 |
Intangibles, net |
|
923 |
|
|
1,136 |
Debt issuance costs, net |
|
2,840 |
|
|
3,866 |
Investment in affiliates and other assets |
|
27,314 |
|
|
27,928 |
Deferred income taxes |
|
16,835 |
|
|
16,867 |
TOTAL ASSETS |
$ |
499,206 |
|
$ |
468,104 |
Daktronics, Inc. and Subsidiaries |
Consolidated Balance Sheets (continued) |
(in thousands) |
(unaudited) |
|
|
January 27, 2024 |
|
April 29, 2023 |
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current portion of long-term debt |
$ |
1,500 |
|
|
$ |
— |
|
Accounts payable |
|
49,489 |
|
|
|
67,522 |
|
Contract liabilities |
|
68,936 |
|
|
|
91,549 |
|
Accrued expenses |
|
36,824 |
|
|
|
36,005 |
|
Warranty obligations |
|
12,884 |
|
|
|
12,228 |
|
Income taxes payable |
|
628 |
|
|
|
2,859 |
|
Total current liabilities |
|
170,261 |
|
|
|
210,163 |
|
|
|
|
|
Long-term warranty obligations |
|
21,806 |
|
|
|
20,313 |
|
Long-term contract liabilities |
|
16,347 |
|
|
|
13,096 |
|
Other long-term obligations |
|
5,882 |
|
|
|
5,709 |
|
Long-term debt, net |
|
48,466 |
|
|
|
17,750 |
|
Deferred income taxes |
|
198 |
|
|
|
195 |
|
Total long-term liabilities |
|
92,699 |
|
|
|
57,063 |
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
Preferred Shares, no par value, authorized 50,000 shares; no shares
issued and outstanding |
|
— |
|
|
|
— |
|
Common Stock, no par value, authorized 115,000,000 shares;
46,189,311 and 45,488,595 shares issued at January 27, 2024
and April 29, 2023, respectively |
|
65,371 |
|
|
|
63,023 |
|
Additional paid-in capital |
|
51,554 |
|
|
|
50,259 |
|
Retained earnings |
|
135,513 |
|
|
|
103,410 |
|
Treasury Stock, at cost, 1,907,445 shares at January 27, 2024
and April 29, 2023, respectively |
|
(10,285 |
) |
|
|
(10,285 |
) |
Accumulated other comprehensive loss |
|
(5,907 |
) |
|
|
(5,529 |
) |
TOTAL SHAREHOLDERS'
EQUITY |
|
236,246 |
|
|
|
200,878 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
499,206 |
|
|
$ |
468,104 |
|
Daktronics, Inc. and Subsidiaries |
Consolidated Statements of Cash Flows |
(in thousands) |
(unaudited) |
|
|
Nine Months Ended |
|
January 27, 2024 |
|
January 28, 2023 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net income (loss) |
$ |
32,103 |
|
|
$ |
(14,597 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
Depreciation and amortization |
|
14,370 |
|
|
|
12,543 |
|
Loss (gain) on sale of property, equipment and other assets |
|
98 |
|
|
|
(588 |
) |
Share-based compensation |
|
1,598 |
|
|
|
1,487 |
|
Equity in loss of affiliates |
|
2,330 |
|
|
|
2,596 |
|
Provision for doubtful accounts, net |
|
659 |
|
|
|
674 |
|
Deferred income taxes, net |
|
23 |
|
|
|
13,028 |
|
Non-cash impairment charges |
|
1,091 |
|
|
|
4,576 |
|
Change in fair value of convertible note |
|
11,570 |
|
|
|
— |
|
Debt issuance costs write-off |
|
3,353 |
|
|
|
— |
|
Change in operating assets and liabilities |
|
(13,406 |
) |
|
|
(29,206 |
) |
Net cash provided by (used in) operating
activities |
|
53,789 |
|
|
|
(9,487 |
) |
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Purchases of property and equipment |
|
(13,628 |
) |
|
|
(21,809 |
) |
Proceeds from sales of property, equipment and other assets |
|
107 |
|
|
|
612 |
|
Proceeds from sales or maturities of marketable securities |
|
550 |
|
|
|
3,490 |
|
Purchases of equity and loans to equity investees |
|
(4,084 |
) |
|
|
(3,240 |
) |
Net cash used in investing
activities |
|
(17,055 |
) |
|
|
(20,947 |
) |
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Borrowings on notes payable |
|
40,485 |
|
|
|
283,115 |
|
Payments on notes payable |
|
(18,500 |
) |
|
|
(259,477 |
) |
Principal payments on long-term obligations |
|
(307 |
) |
|
|
— |
|
Debt issuance costs |
|
(6,833 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
1,147 |
|
|
|
— |
|
Tax payments related to RSU issuances |
|
(303 |
) |
|
|
(140 |
) |
Net cash provided by financing
activities |
|
15,689 |
|
|
|
23,498 |
|
|
|
|
|
EFFECT OF EXCHANGE RATE
CHANGES ON CASH |
|
80 |
|
|
|
(342 |
) |
NET INCREASE (DECREASE) IN
CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
52,503 |
|
|
|
(7,278 |
) |
|
|
|
|
CASH, CASH EQUIVALENTS AND
RESTRICTED CASH: |
|
|
|
Beginning of period |
|
24,690 |
|
|
|
18,008 |
|
End of period |
$ |
77,193 |
|
|
$ |
10,730 |
|
Daktronics, Inc. and Subsidiaries |
Net Sales and Orders by Business Unit |
(in thousands) |
(unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
(in
thousands) |
January 27, 2024 |
|
January 28, 2023 |
|
Dollar Change |
|
Percent Change |
|
January 27, 2024 |
|
January 28, 2023 |
|
Dollar Change |
|
Percent Change |
Net
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
33,292 |
|
$ |
49,967 |
|
$ |
(16,675 |
) |
|
(33.4 |
)% |
|
$ |
122,628 |
|
$ |
127,132 |
|
$ |
(4,504 |
) |
|
(3.5 |
)% |
Live Events |
|
73,393 |
|
|
67,748 |
|
|
5,645 |
|
|
8.3 |
|
|
|
233,602 |
|
|
193,370 |
|
|
40,232 |
|
|
20.8 |
|
High School Park and
Recreation |
|
28,764 |
|
|
28,312 |
|
|
452 |
|
|
1.6 |
|
|
|
133,940 |
|
|
106,127 |
|
|
27,813 |
|
|
26.2 |
|
Transportation |
|
19,605 |
|
|
17,578 |
|
|
2,027 |
|
|
11.5 |
|
|
|
61,217 |
|
|
53,797 |
|
|
7,420 |
|
|
13.8 |
|
International |
|
15,249 |
|
|
21,370 |
|
|
(6,121 |
) |
|
(28.6 |
) |
|
|
50,816 |
|
|
63,908 |
|
|
(13,092 |
) |
|
(20.5 |
) |
|
$ |
170,303 |
|
$ |
184,975 |
|
$ |
(14,672 |
) |
|
(7.9 |
)% |
|
$ |
602,203 |
|
$ |
544,334 |
|
$ |
57,869 |
|
|
10.6 |
% |
Orders:
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
34,524 |
|
$ |
28,737 |
|
$ |
5,787 |
|
|
20.1 |
% |
|
$ |
101,167 |
|
$ |
119,126 |
|
$ |
(17,959 |
) |
|
(15.1 |
)% |
Live Events |
|
95,217 |
|
|
61,011 |
|
|
34,206 |
|
|
56.1 |
|
|
|
226,436 |
|
|
193,763 |
|
|
32,673 |
|
|
16.9 |
|
High School Park and
Recreation |
|
35,385 |
|
|
28,097 |
|
|
7,288 |
|
|
25.9 |
|
|
|
103,924 |
|
|
97,574 |
|
|
6,350 |
|
|
6.5 |
|
Transportation |
|
18,924 |
|
|
13,525 |
|
|
5,399 |
|
|
39.9 |
|
|
|
59,409 |
|
|
45,812 |
|
|
13,597 |
|
|
29.7 |
|
International |
|
8,013 |
|
|
17,005 |
|
|
(8,992 |
) |
|
(52.9 |
) |
|
|
43,450 |
|
|
45,130 |
|
|
(1,680 |
) |
|
(3.7 |
) |
|
$ |
192,063 |
|
$ |
148,375 |
|
$ |
43,688 |
|
|
29.4 |
% |
|
$ |
534,386 |
|
$ |
501,405 |
|
$ |
32,981 |
|
|
6.6 |
% |
Reconciliation of Free Cash Flow* |
(in thousands) |
(unaudited) |
|
|
Nine Months Ended |
|
January 27, 2024 |
|
January 28, 2023 |
Net cash provided by (used in) operating activities |
$ |
53,789 |
|
|
$ |
(9,487 |
) |
Purchases of property and
equipment |
|
(13,628 |
) |
|
|
(21,809 |
) |
Proceeds from sales of
property and equipment |
|
107 |
|
|
|
612 |
|
Free cash flow |
$ |
40,268 |
|
|
$ |
(30,684 |
) |
* |
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. Daktronics' free cash flow may not have the same
meaning or be calculated in the same way as the same or similar
terms used by other companies. |
Reconciliation of Adjusted Operating Income* |
(in thousands) |
(unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
January 27, 2024 |
|
January 28, 2023 |
|
January 27, 2024 |
|
January 28, 2023 |
Operating income (GAAP Measure) |
$ |
8,036 |
|
$ |
7,118 |
|
$ |
67,688 |
|
$ |
3,125 |
Plus goodwill impairment |
|
— |
|
|
4,576 |
|
|
— |
|
|
4,576 |
Adjusted operating income
(non-GAAP measure) |
$ |
8,036 |
|
$ |
11,694 |
|
$ |
67,688 |
|
$ |
7,701 |
* |
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 (loss)* |
(in thousands) |
(unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
January 27, 2024 |
|
January 28, 2023 |
|
January 27, 2024 |
|
January 28, 2023 |
Net income (loss) |
$ |
10,742 |
|
|
$ |
3,713 |
|
$ |
32,103 |
|
$ |
(14,597 |
) |
Change in fair value of
convertible note |
|
(6,340 |
) |
|
|
— |
|
|
11,570 |
|
|
— |
|
Debt issuance costs expensed
due to fair value of convertible note, net of taxes |
|
— |
|
|
|
— |
|
|
2,297 |
|
|
— |
|
Adjusted net income
(loss) |
$ |
4,402 |
|
|
$ |
3,713 |
|
$ |
45,970 |
|
$ |
(14,597 |
) |
* |
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: |
|
|
January 27, 2024 |
|
April 29, 2023 |
ABL credit facility/prior line of credit |
$ |
— |
|
|
$ |
17,750 |
Mortgage |
|
14,250 |
|
|
|
— |
Convertible note |
|
25,000 |
|
|
|
— |
Long-term debt, gross |
|
39,250 |
|
|
|
17,750 |
Debt issuance costs, net |
|
(854 |
) |
|
|
— |
Change in fair value of
convertible note |
|
11,570 |
|
|
|
— |
Current portion |
|
(1,500 |
) |
|
|
— |
Long-term debt, net |
$ |
48,466 |
|
|
$ |
17,750 |
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