Daktronics, Inc. Announces Record Quarterly Results; Record Sales, Record Net Income, and Strong Backlog Highlight First Quarter.Business Editors BROOKINGS, S.D.--(BUSINESS WIRE)--Aug. 20, 2003 Daktronics, Inc. (Nasdaq:DAKT), a worldwide leader in the scoreboard, electronic display and large screen video display industry, announced record fiscal 2004 first quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $48.9 million and net income of $4.3 million or $.22 per diluted share, compared with first quarter net sales of $44.1 million and net income of $3.1 million, or $.16 per diluted share, one year ago. Both sales and net income were the highest of any quarter in the Company's history. Backlog at the end of the quarter was approximately $56 million, compared with a backlog of approximately $50 million at the end of the first quarter last fiscal year. The timing of large orders can cause significant fluctuations in the Company's backlog. "We are very pleased with the financial results for the first quarter," said Jim Morgan, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Daktronics. "Our top line increased nearly 11 percent and net income grew by 37 percent over the same quarter the previous year. We attribute the increase in net income to excellent, on-site, project management that provided significant savings on installation costs on multiple large contracts. We also realized greater than expected cost savings on certain raw materials. While achieving record sales and earnings for the quarter, we were also able to book quality orders and build a strong backlog with which to enter the second quarter. "This fall, we are turning on new football systems at many high school and collegiate facilities, as well as three National Football League venues. Fans at Lambeau Field • • [ , home of the Green Bay Packers, Soldier Field • • [ , home of the Chicago Bears This article is about a stadium. For a highway in Hamilton, Ontario, see Lincoln M. Alexander Parkway. , new home of the Philadelphia Eagles "Interest in our commercial and transportation products also remains strong. Commercial backlog increased nicely with the booking of standard product orders, as well as orders for two significant horse racing horse racing, trials of speed involving two or more horses. It includes races among harnessed horses with one of two particular gaits, among saddled Thoroughbreds (or, less frequently, quarterhorses) on a flat track, or among saddled horses over a turf course with systems in Paris and southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , which were announced earlier. Daktronics includes orders and revenues from gaming, horse and dog racing dog racing, trials of speed between dogs. Now contested on oval tracks, the sport developed from the ancient practice of coursing, in which specially trained dogs chase game animals in the open field. facilities in its commercial market. We also remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future demand for our transportation display systems," Morgan stated. "We estimate net sales for the second quarter of fiscal 2004 will be in the range of $50 to $55 million, with earnings in the range of $.15 to $.22 per share. Based on our current strong backlog, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. order potential for the foreseeable future, and an expectation that economic conditions will remain stable during the next nine months, our estimates for fiscal 2004 revenues remain unchanged. We estimate revenues between $195 million and $210 million for the fiscal year and that annual earnings will also increase over the previous fiscal year, taking into consideration the probability of lower average gross margins during the fiscal year," Morgan added. "We elected to pay down additional debt during the quarter in anticipation of further improvement in cash flows, while at the same time increasing our cash position," said Bill Retterath, chief financial officer. "We expect the lower debt level will reduce interest expense on an annual basis by more than two hundred thousand dollars. In addition, the combination of the effects of the higher than expected gross margin and the maintenance of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. at 22 percent of net sales, contributed to a 8.8 percent net income margin, which is also a record for the Company," Retterath said. Noteworthy sports projects booked in the first quarter include display systems for Citizens Bank Park, Philadelphia, Penn.; Bradley Center Current arenas in the National Basketball Association Western Conference Eastern Conference , Milwaukee, Wisc.; HHH HHH Hubert H. Humphrey HHH Hash House Harriers HHH Hot Hot Heat (band) HHH Hunter Hearst Helmsley (aka Triple H) HHH Hou Hsiao-Hsien (Taiwanese film director) Metrodome, Minneapolis, Minn.; Minute Maid Park • • [ , Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the ; World Arena, Colorado Springs The World Arena in Colorado Springs, Colorado is a 7,343-seat multi-purpose arena. The arena opened in 1997. In addition to the main arena, the adjacent Ice Hall contains two practice rinks, one NHL-sized and one Olympic-sized. , Colo.; Frisco Star Center, Frisco, Texas Frisco is a city in Collin County and Denton County, Texas (USA). It is a northern suburb of Dallas. As of the 2000 census, the city population was 33,714, while according to 2007 estimate, the city's population is approximately 95,000. ; Memorial Coliseum For other similar named athletic facilities, see . Memorial Coliseum (or Veterans Memorial Coliseum in some cases) can refer to:
Current arenas in the National Hockey League Western Conference Eastern Conference , Raleigh, N.C.; Southern California Racing, Del Mar Del Mar is the name of several places in the United States of America:
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. ; U.S. Naval Academy, Annapolis, Md.; Ohio University Ohio University, main campus at Athens; state supported; coeducational; chartered 1804, opened 1809 as the first college in the Old Northwest. There are additional campuses at Chiillicothe, Lancaster, and Zanesville, as well as facilities throughout the state. , Athens, Ohio
Athens is a historic college town in the southeastern part of the U.S. state of Ohio, best known as the home of Ohio University. ; Stanford University Stanford University, at Stanford, Calif.; coeducational; chartered 1885, opened 1891 as Leland Stanford Junior Univ. (still the legal name). The original campus was designed by Frederick Law Olmsted. David Starr Jordan was its first president. , Stanford, Calif.; University of Oklahoma University of Oklahoma, abbreviated OU, is a coeducational public research university located in the U.S. state of Oklahoma. Founded in 1890, it existed in Oklahoma Territory near Indian Territory 17 years before the two became the state of Oklahoma. , Norman, Okla.; University of North Texas, Denton, Texas Denton is a city in the United States and the county seat of Denton County, Texas. According to the 2000 U.S. Census, the city population was 80,537, making it the eleventh largest city in the Dallas/Fort Worth Metroplex. ; Fresno State University, Fresno, Calif.; U.S. Military Academy, West Point, N.Y.; Troy State University, Troy, Ala.; Harlingen Consolidated ISD See IDD. , Harlingen, Texas Harlingen is a city in Cameron County in the heart of the Rio Grande Valley of south Texas, United States. The city covers more than 34 mi² (88 km²) and is the second largest city in Cameron County and the third largest in the Rio Grande Valley after Brownsville and McAllen. ; Union Public Schools, Tulsa, Okla.; Fawcett Stadium  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. , Canton, Ohio Canton is a city in the U.S. state of Ohio and the county seat of Stark CountyGR6. The municipality is located in northeastern Ohio and is situated on the Nimishillen Creek, approximately 24 miles (38 km) south of Akron[4] ; Hippodrome de Paris Vincennes, Paris, France; and Arena Monterrey, Monterrey, Mexico. Noteworthy commercial and transportation orders booked in the first quarter include Isle of Isle of For names of actual isles, see the specific element of the name; for example, Wight, Isle of. Capri Casino, Vicksburg, Miss.; J.H. Snyder Co., Los Angeles, Calif.; Branson Plaza, Branson, Mo.; Connecticut DOT, Newington, Conn.; Oregon DOT, Salem, Ore.; New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. DOT, Staten Island Staten Island (1990 pop. 378,977), 59 sq mi (160 sq km), SE N.Y., in New York Bay, SW of Manhattan, forming Richmond co. of New York state and the borough of Staten Island of New York City. , N.Y.; New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of DOT, Long Island City, N.Y.; North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. DOT, Smithfield, N.C.; Minnesota DOT, Roseville, Minn.; Commonwealth of Pennsylvania, Pittsburgh, Penn.; and Tucson Airport Authority, Tucson, Ariz. The Company will webcast its quarterly conference call at 10:00 am (central) on Wednesday, August 20. To listen to the webcast, go to the home page of www.daktronics.com, and click on the icon at the bottom right corner of the screen. Completion of a short registration form, along with Windows(R) Media Player software, are required to hear the webcast. A replay of the teleconference via the internet will also be accessible shortly after the conclusion of the conference call through www.daktronics.com. A replay of the teleconference accessible by telephone will be available for one week starting at noon Central Time on August 20. To access the replay, call toll-free in the U.S. and Canada 800-633-8284 and enter code 21155991. International callers can dial 402-977-9140 and enter code 21155991 to hear the replay by phone. Daktronics has strong leadership positions in, and is one of the world's largest suppliers of electronic scoreboards, computer-programmable displays, large screen video displays, and control systems. The Company excels in the control of large display systems, including those that require integration of complex multiple displays showing real time information, graphics, animation and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in sport, business and transportation applications, and celebrates its 35th year in business in 2003. For more information, visit the Company's worldwide web site at http://www.daktronics.com, email the Company at sales@daktronics.com, call toll-free 1-800-DAKTRONICS (800-325-8766) in the U.S., or write to the Company at 331 32nd Avenue, P.O. Box 5128, Brookings, SD 57006-5128. Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. reflecting the Company's expectations or beliefs concerning future events which could materially affect company performance in the future. The Company cautions that these and similar statements involve risk and uncertainties including changes in economic and market conditions, management of growth, timing and magnitude of future contracts, and other risks noted in the company's SEC filings which may cause actual results to differ materially. 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.
Daktronics, Inc.
Consolidated Statements of Income
(Dollars in thousands except earnings per share)
(unaudited)
Three Months Ended
------------------------------
August 2, 2003 August 3, 2002
(13 weeks) (14 weeks)
-------------- ---------------
Net sales $ 48,918 $ 44,107
Cost of goods sold 31,468 28,783
-------------- ---------------
Gross profit 17,450 15,324
-------------- ---------------
Operating expenses:
Selling 6,429 6,807
General and administrative 2,122 1,682
Product design and development 2,205 1,830
-------------- ---------------
10,756 10,289
-------------- ---------------
Operating income 6,694 5,035
Nonoperating income (expense):
Interest income 227 184
Interest expense (234) (255)
Other income (expense), net 444 194
-------------- ---------------
Income before income taxes and minority
interest 7,131 5,158
Income tax expense 2,812 2,024
-------------- ---------------
Income before minority interest 4,319 3,134
Minority interest in income (loss) of
subsidiary (11) -
-------------- ---------------
Net income $ 4,308 $ 3,134
============== ===============
Weighted average number of shares and
common equivalent shares 19,804 19,292
============== ===============
Earnings per share:
Basic $ 0.23 $ 0.17
============== ===============
Diluted $ 0.22 $ 0.16
============== ===============
Daktronics, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
August 2, May 3,
2003 2003
(Unaudited)
------------ -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 11,182 $ 9,277
Accounts receivable, less allowance for
doubtful accounts 24,716 25,912
Current maturities of long-term receivables 2,466 2,650
Inventories 17,827 14,863
Costs and estimated earnings in excess of
billings 16,611 11,467
Prepaid expenses and other 694 756
Deferred income taxes 4,122 3,801
------------ -----------
Total current assets 77,618 68,726
------------ -----------
Advertising rights, net 394 385
Long term receivables, less current maturities 8,286 6,711
Goodwill, net of accumulated amortization 1,081 1,043
Intangible and other assets 859 873
------------ -----------
10,620 9,012
------------ -----------
PROPERTY AND EQUIPMENT:
Land 654 654
Buildings 12,288 12,281
Machinery and equipment 14,382 13,762
Office furniture and equipment 13,845 13,495
Equipment held for rental 3,345 3,476
Transportation equipment 2,529 2,185
------------ -----------
47,043 45,853
Less accumulated depreciation 22,393 21,064
------------ -----------
24,650 24,789
------------ -----------
TOTAL ASSETS $ 112,888 $ 102,527
============ ===========
Daktronics, Inc.
Consolidated Balance Sheets (Continued)
(Dollars in thousands)
August 2, May 3,
2003 2003
(Unaudited)
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable, bank $ 283 $ 180
Accounts payable 12,911 9,312
Accrued expenses 8,969 7,790
Current maturities of long-term debt 2,374 2,951
Billings in excess of costs and estimated
earnings 7,840 5,528
Customer deposits 2,448 1,709
Income taxes payable 3,486 1,556
------------- -------------
Total current liabilities 38,311 29,026
------------- -------------
Long-term debt, less current maturities 2,254 5,449
Deferred revenue 896 1,338
Deferred income taxes 1,443 1,296
------------- -------------
4,593 8,083
------------- -------------
TOTAL LIABILITIES 42,904 37,109
Minority interest in subsidiary 120 115
------------- -------------
SHAREHOLDERS' EQUITY:
Common stock 14,883 14,654
Additional paid-in capital 746 746
Retained earnings 54,258 49,950
Treasury stock, at cost (9) (9)
Accumulated other comprehensive loss (14) (38)
------------- -------------
TOTAL SHAREHOLDERS' EQUITY 69,864 65,303
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 112,888 $ 102,527
============= =============
Daktronics, Inc.
Consolidated Statements of Cash Flows
(Dollars in thousands)
(unaudited)
Three Months Ended
----------------------
August 2, August 3,
2003 2002
(13 weeks) (14 weeks)
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 4,308 $ 3,134
Adjustments to reconcile net income to net
cash provided
By operating activities:
Depreciation 1,532 1,327
Amortization 43 59
(Gain) loss on sale of property and
equipment (311) 222
Minority interest in income of subsidiary 4 -
Provision for doubtful accounts 177 372
Deferred income taxes (credit) (174) (287)
Other - 167
Net change in operating assets and
liabilities 971 (2,087)
---------- ----------
Net cash provided by operating activities 6,550 2,907
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (1,748) (1,291)
Proceeds from sale of property and equipment 666 517
---------- ----------
Net cash used in investing activities (1,082) (774)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowing on notes payable 103 184
Proceeds from long-term debt 107 -
Principal payments on long-term debt (3,879) (1,308)
Proceeds from exercise of stock options and
warrants 82 130
---------- ----------
Net cash used in financing activities (3,587) (994)
---------- ----------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 24 (4)
---------- ----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,905 1,135
CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD 9,277 2,097
---------- ----------
CASH AND CASH EQUIVALENTS END OF PERIOD $ 11,182 $ 3,232
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