Daktronics, Inc. Announces Record Third Quarter Results; Quarterly Sales up 17 Percent, Net Income up 38 Percent over Previous Year.Business Editors BROOKINGS, S.D.--(BUSINESS WIRE)--Feb. 18, 2004 Daktronics, Inc. (Nasdaq:DAKT), a worldwide leader in the scoreboard, electronic display and large screen video display industry, announced record third 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 $44.7 million and net income of $2.6 million, or $.13 per diluted share, compared with third quarter net sales of $38.2 million and net income of $1.9 million, or $.10 per diluted share, one year ago. Both sales and net income were records for the Company's third quarter. Net sales, net income and earnings per share for the nine months ended Jan. 31, 2004, were $152.0 million, $13.6 million, and $.68 per diluted share, respectively, compared to $130.4 million, $9.0 million, and $.47 per diluted share, respectively, for the same period one year ago. Backlog at the end of the quarter totaled approximately $43 million, compared with backlog of approximately $51 million at the end of the third quarter last fiscal year. The reported backlog does not include $6 million for the Memphis Grizzlies/FedExForum project announced January 29, 2004, as contracts were not executed prior to the end of the quarter. The timing of large orders can cause significant fluctuations on the Company's end of quarter backlog. "Our goal remains to grow the top line at more than 15 percent per year on average, and we remain on track for that rate of sales growth this fiscal year," 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. "We are pleased with the strong third quarter results, in which sales were up 17 percent over the same period a year ago and were especially strong internationally. Typically the third quarter, November, December and January, is our weakest, because of the holidays that fall during the quarter, the lack of major sports seasons starting during the period, and weather that can affect progress at work sites. "For the quarter, sales in both sports and commercial markets were up, with commercial up significantly in percentage growth. Transportation sales were down for the quarter. Year to date, sports and commercial market sales have increased significantly, with transportation sales remaining flat compared to the previous nine months," Morgan said. "Work on various baseball projects, as well as other contracts, contributed to sports sales. We'll be turning on new systems at four major league ballparks this spring," Morgan said, "in Philadelphia, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , Cleveland and Anaheim. Several minor league and college customers have also chosen Daktronics to provide systems for their facilities for the start of this season. "Sales growth in the commercial market has been fueled by successful on-going programs with national accounts, which make up a portion of commercial sales. Additional factors include a growing interest in LED displays, many sold and installed by sign company resellers, for promotional and advertising use in an improving economy," Morgan said. "Though transportation sales were down for the quarter, we still believe that there is growth ahead for our products in these applications." "Gross margin for the third quarter was 33.0 percent as compared to 32.4 percent for the same period one year ago," said Bill Retterath, chief financial officer. "As previously announced, we expected that margins would decline from last quarter and they declined slightly more than expected due to the concentration we had in the larger multi-million dollar transactions. Partially offsetting that, our percentage of standard products increased slightly. "For the quarter, we experienced higher than expected operating costs operating costs npl → gastos mpl operacionales due to a number of factors, including costs of our international expansion where we have seen positive growth, some one-time compensation related costs and higher professional fees. We expect to see some of these costs decline as we move forward. "We also invested significantly in capital equipment during the quarter, primarily within our electronic subassembly sub·as·sem·bly n. pl. sub·as·sem·blies An assembled unit forming a component to be incorporated into a larger assembly. area and in information systems infrastructure. We are also formulating plans to add manufacturing space to our facility in Brookings to accommodate our planned growth into the future," Retterath said. "Our backlog of $43 million at the end of the quarter was down compared to one year ago," Morgan stated. "Looking at upcoming projects we have under letters of intent, other projects on the horizon, and anticipated orders for standard products, we expect sales for the next quarter to be in the range of $51 million to $56 million, which would put annual sales for fiscal year 2004 in the range of $203 to $208 million. We expect earnings per share for the fourth quarter to range from $.17 to $.25 per share, which would total $.85 to $.93 for the fiscal year." Noteworthy sports projects booked in the third quarter include display systems for Denton Independent School District Denton Independent School District, sometimes shortened to Denton ISD, is a school district based in Denton, Texas. The district covers the majority of the cities of Denton, Cross Roads, Corinth and a small portion of Flower Mound. , 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. ; Harper Creek Community School, Battle Creek Battle Creek, city (1990 pop. 53,540), Calhoun co., S Mich., at the confluence of the Kalamazoo and Battle Creek rivers; settled 1831, inc. as a city 1859. It is an agricultural trade center known for its cereals. , Mich.; Hickory Crawdads The Hickory Crawdads are a Minor League Baseball team in Hickory, North Carolina, USA. They are a Class A team in the South Atlantic League, and have been a farm team of the Pittsburgh Pirates since 1999. Previously, they were a Class A affiliate of the Chicago White Sox). Baseball, Hickory Hickory, city, United States Hickory, city (1990 pop. 28,301), Burke and Catawba counties, W N.C., at the foot of the Blue Ridge Mts.; inc. 1870. It is a processing and trade center for an abundant agricultural region (grain, soybeans, poultry, hogs, , N.C.; Swing of the Quad Cities The Swing of the Quad Cities is a Class A minor league baseball team, affiliated with the St. Louis Cardinals, that plays in the Midwest League. Its home games are played in Davenport, Iowa. , Davenport, Iowa Davenport is a city in the American state of Iowa that borders the Mississippi River. As of the 2000 census, the city had a total population of 98,359. A 2006 estimate tells that the city had grown slightly to 99,514. ; Rancho Cucamonga Quakes The Rancho Cucamonga Quakes are a minor league baseball team in Rancho Cucamonga, California, USA. They are a "high-A" class team in the California League, and have been a farm team of the Los Angeles Angels of Anaheim since 2001. , Rancho Cucamonga Rancho Cucamonga (răn`chō k  'kəmäng`gə), city (1990 pop. 101,409), San Bernardino co., S Calif. , Calif.; Durham Bulls The Durham Bulls are a minor league baseball team based in Durham, North Carolina. The team, which plays in the International League, is the AAA (Triple-A) affiliate of the Tampa Bay Devil Rays major-league club. , Durham,
N.C.; University of Florida University of Florida is the third-largest university in the United States, with 50,912 students (as of Fall 2006) and has the eighth-largest budget (nearly $1.9 billion per year). UF is home to 16 colleges and more than 150 research centers and institutes. , Gainesville, Fla.; Harvard University Harvard University, mainly at Cambridge, Mass., including Harvard College, the oldest American college.
Harvard CollegeHarvard College, originally for men, was founded in 1636 with a grant from the General Court of the Massachusetts Bay Colony. , Boston, Mass.; University of Central Arkansas The University of Central Arkansas is a state-run institution located in the city of Conway, the seat of Faulkner County, north of Little Rock. The school is most respected for its programs in Education, Occupational Therapy, and Physical Therapy. , Conway, Ark.; University of Dayton The University of Dayton is one of the ten largest Catholic schools in the United States and is the largest of the three Marianist universities in the nation. It is also home to one of the largest campus ministry programs in the world. , Dayton, Ohio Dayton is a city in southwestern Ohio, United States. It is the county seat and largest city of Montgomery County. As of the 2005 census estimate, the population of Dayton was 158,873. ; Pengrowth Saddledome Coordinates: Current arenas in the National Hockey League Western Conference Eastern Conference American Airlines Center | General Motors Place | HP Pavilion | Honda Center | Jobing. , Calgary, Canada; Arrowhead arrowhead, any plant of the genus Sagittaria, widely distributed marsh or aquatic herbs of the primitive family Alismataceae (water-plantain family). The name derives from the arrowhead-shaped leaves of many species. Pond of Anaheim, Anaheim, Calif.; Greensboro Coliseum Coliseum: see Colosseum. , Greensboro, N.C.; Qwest Center, Omaha, Neb.; Palace Theatre, Albany
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Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation).Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. ; Edison International Edison International (NYSE: EIX) is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and un-regulated non-utility assets Edison Mission Energy, a power producer, and Edison Capital. Field, Anaheim, Calif.; Aveiro Municipal Stadium, Aveiro, Portugal; and Qatar Equestrian equestrian a rider of horses. Stadium, Doha, Qatar. Noteworthy commercial and transportation projects booked in the third quarter include systems for Churchill Downs Churchill Downs, Ky.: see Louisville. , Louisville, Ky.; Haltheon Management Group, Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. ; Lamar Advertising, Ft. Walton Beach, Fla.; Border Buy LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , Tijuana, Mexico; National Tour, Rancho Santa Margarita Santa Margarita ("Saint Margaret") may refer to:
(2) See M Technology Association. 1. (messaging) MTA - Message Transfer Agent. Long Island Railroad, Hollis, N.Y.; Sacramento International Airport Sacramento International Airport (IATA: SMF, ICAO: KSMF, FAA LID: SMF) is a public airport located 10 miles (16 km) northwest of the central business district (CBD) of Sacramento, in Sacramento County, California, USA It is run by Sacramento County. , Sacramento, Calif.; Grapevine Grapevine - A distributed system project. Partners/Metropolitan Atlanta Rapid Transit rapid transit, transportation system designed to allow passenger travel within or throughout an urban area, usually employing surface, elevated, or underground railway systems or some combination of these. Authority, Atlanta, Ga.; N.C. State Dept STATE DEPT Department of State . of Transportation, Raleigh, N.C.; Tampa International Airport Tampa International Airport (IATA: TPA, ICAO: KTPA, FAA LID: TPA) is a public airport located six miles (10 km) west of the central business district of Tampa, in Hillsborough County, Florida, United States. , Tampa, Fla.; Silk Highway, Kuala Lumpur Kuala Lumpur (kwä`lə l  m`pr), city (1990 est. pop. ,
Malaysia; and Ben Gurion International Airport  Ben Gurion International Airport or Ben Gurion Airport (Hebrew: , Tel Aviv Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel. The Company will webcast its quarterly conference call at 10:00 am (Central) on Wednesday, Feb. 18. 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) on Feb. 18. To access the replay, call toll-free in the U.S. and Canada 800-633-8284 and enter code 21184654. International callers can dial 402-977-9140 and enter code 21184654 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 recently celebrated its 35th year in business. 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. Financial tables are included on the following pages.
Daktronics, Inc. and Subsidiaries
Consolidated Statements of Income
(in thousands, except earnings per share)
(unaudited)
Three Months Ended Nine Months Ended
--------------------- ---------------------
Jan. 31, Feb. 1, Jan. 31, Feb. 1,
2004 2003 2004 2003
(13 weeks) (13 weeks) (39 weeks) (40 weeks)
---------- ---------- ---------- ----------
Net sales $ 44,745 $ 38,220 $ 151,969 $ 130,400
Cost of goods sold 29,996 25,855 97,914 86,925
---------- ---------- ---------- ----------
Gross profit 14,749 12,365 54,055 43,475
---------- ---------- ---------- ----------
Operating expenses
Selling 6,819 5,868 19,695 18,649
General and
administrative 2,521 1,824 6,858 5,159
Product design and
development 1,893 1,534 6,177 5,086
---------- ---------- ---------- ----------
11,233 9,226 32,730 28,894
---------- ---------- ---------- ----------
Operating income 3,516 3,139 21,325 14,581
Nonoperating income
(expense):
Interest income 258 184 721 516
Interest expense (78) (195) (401) (675)
Other income (expense),
net 222 58 571 323
---------- ---------- ---------- ----------
Income before income taxes
and minority interest 3,918 3,186 22,216 14,745
Income tax expense 1,345 1,288 8,592 5,688
---------- ---------- ---------- ----------
Income before minority
interest 2,573 1,898 13,624 9,057
Minority interest in
(income) loss of
subsidiary 43 (10) (31) (10)
---------- ---------- ---------- ----------
Net income $ 2,616 $ 1,888 $ 13,593 $ 9,047
========== ========== ========== ==========
Weighted average number of
fully diluted shares and
common equivalent shares 20,012 19,697 19,875 19,396
========== ========= ========= =========
Earnings per share:
Basic $ .14 $ .10 $ .73 $ .49
========== ========== ========== ==========
Diluted $ .13 $ .10 $ .68 $ .47
========== ========== ========== ==========
Daktronics, Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
Jan. 31, May 3,
2004 2003
(unaudited) (note 1)
----------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 10,027 $ 9,277
Accounts receivable, less allowance for
doubtful accounts 27,927 25,912
Current maturities of long-term receivables 3,693 2,650
Inventories 18,004 14,863
Costs and estimated earnings in excess of
billings 14,111 11,467
Prepaid expenses and other 858 756
Deferred income taxes 4,151 3,801
----------- ---------
Total current assets 78,771 68,726
----------- ---------
Advertising rights, net 636 385
Long term receivables, less current maturities 11,591 6,711
Goodwill, net of accumulated amortization 1,083 1,043
Intangible and other assets 866 873
----------- ---------
14,176 9,012
----------- ---------
PROPERTY AND EQUIPMENT:
Land 654 654
Buildings 12,390 12,281
Machinery and equipment 17,140 13,762
Office furniture and equipment 15,274 13,495
Equipment held for rental 4,074 3,476
Transportation equipment 2,793 2,185
----------- ---------
52,325 45,853
Less accumulated depreciation 25,337 21,064
----------- ---------
26,988 24,789
----------- ---------
TOTAL ASSETS $ 119,935 $102,527
=========== =========
Daktronics, Inc. and Subsidiaries
Consolidated Balance Sheets (continued)
(Dollars in thousands)
Jan. 31, May 3,
2004 2003
(unaudited) (note 1)
----------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable, bank $ 91 $ 180
Accounts payable 12,330 9,312
Accrued expenses 11,186 7,790
Current maturities of long-term debt 1,451 2,951
Billings in excess of costs and estimated
earnings 7,388 5,528
Customer deposits 2,457 1,709
Income taxes payable 250 1,556
----------- ----------
Total current liabilities 35,153 29,026
----------- ----------
Long-term debt, less current maturities 1,669 5,449
Deferred revenue 1,222 1,338
Deferred income taxes 1,760 1,296
----------- ----------
4,651 8,083
----------- ----------
TOTAL LIABILITIES 39,804 37,109
Minority Interest In Subsidiary 146 115
----------- ----------
SHAREHOLDERS' EQUITY:
Common stock 15,752 14,654
Additional paid-in capital 746 746
Retained earnings 63,543 49,950
Treasury stock, at cost (9) (9)
Accumulated other comprehensive loss (47) (38)
----------- ----------
TOTAL SHAREHOLDERS' EQUITY 79,985 65,303
----------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 119,935 $ 102,527
=========== ==========
Daktronics, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
---------------------
Jan. 31, Feb. 1,
2004 2003
(39 weeks) (40 weeks)
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 13,593 $ 9,047
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 4,540 4,214
Amortization 100 190
Minority interest in income of subsidiary 31 9
Provision for doubtful accounts 328 (440)
(Gain) loss on sale of property and
equipment (304) 743
Deferred taxes, net 113 (592)
Change in operating assets and liabilities (6,301) 943
---------- ----------
Net cash provided by operating activities 12,100 14,114
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (7,100) (3,982)
Proceeds from sale of property and equipment 688 738
---------- ----------
Net cash used in investing activities (6,412) (3,244)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments on notes payable (105) (51)
Proceeds from long-term debt 185 1,588
Principal payments on long-term debt (5,495) (6,095)
Proceeds from exercise of stock options and
warrants 463 441
---------- ----------
Net cash used in financing activities (4,952) (4,117)
---------- ----------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 14 13
---------- ----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 750 6,766
CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD 9,277 2,097
---------- ----------
CASH AND CASH EQUIVALENTS END OF PERIOD $ 10,027 $ 8,863
========== ==========
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