South Dakota | 0-23246 | 46-0306862 |
(State or other jurisdiction | (Commission | (I.R.S. Employer |
Incorporation or organization) | File Number) | Identification Number) |
DAKTRONICS, INC. | ||
By: /s/ Sheila M. Anderson | ||
Sheila M. Anderson, Chief Financial Officer | ||
Date: | February 21, 2017 | |
For more information contact: | ||
INVESTOR RELATIONS: | ||
Sheila Anderson, Chief Financial Officer | ||
(605) 692-0200 | ||
Investor@daktronics.com | ||
Daktronics, Inc. and Subsidiaries Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
January 28, 2017 | January 30, 2016 | January 28, 2017 | January 30, 2016 | |||||||||||||
Net sales | $ | 115,719 | $ | 123,816 | $ | 442,857 | $ | 431,705 | ||||||||
Cost of goods sold | 92,403 | 101,787 | 336,166 | 338,662 | ||||||||||||
Gross profit | 23,316 | 22,029 | 106,691 | 93,043 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling expense | 14,678 | 13,784 | 45,828 | 42,873 | ||||||||||||
General and administrative | 8,599 | 7,908 | 26,007 | 24,194 | ||||||||||||
Product design and development | 6,973 | 5,883 | 21,142 | 19,826 | ||||||||||||
30,250 | 27,575 | 92,977 | 86,893 | |||||||||||||
Operating (loss) income | (6,934 | ) | (5,546 | ) | 13,714 | 6,150 | ||||||||||
Nonoperating income (expense): | ||||||||||||||||
Interest income | 183 | 230 | 559 | 794 | ||||||||||||
Interest expense | (56 | ) | (113 | ) | (174 | ) | (203 | ) | ||||||||
Other (expense) income, net | (305 | ) | 7 | (250 | ) | (667 | ) | |||||||||
(Loss) income before income taxes | (7,112 | ) | (5,422 | ) | 13,849 | 6,074 | ||||||||||
Income tax (benefit) expense | (1,985 | ) | (3,469 | ) | 4,416 | 1,083 | ||||||||||
Net (loss) income | $ | (5,127 | ) | $ | (1,953 | ) | $ | 9,433 | $ | 4,991 | ||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 44,102 | 44,021 | 44,071 | 43,933 | ||||||||||||
Diluted | 44,102 | 44,021 | 44,206 | 44,357 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | (0.12 | ) | $ | (0.04 | ) | $ | 0.21 | $ | 0.11 | ||||||
Diluted | $ | (0.12 | ) | $ | (0.04 | ) | $ | 0.21 | $ | 0.11 | ||||||
Cash dividends declared per share | $ | 0.07 | $ | 0.10 | $ | 0.24 | $ | 0.30 |
Daktronics, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands) | |||||||
January 28, 2017 | April 30, 2016 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 48,377 | $ | 28,328 | |||
Restricted cash | 206 | 198 | |||||
Marketable securities | 28,034 | 24,672 | |||||
Accounts receivable, net | 71,637 | 77,554 | |||||
Inventories, net | 61,922 | 69,827 | |||||
Costs and estimated earnings in excess of billings | 33,204 | 30,200 | |||||
Current maturities of long-term receivables | 2,229 | 3,172 | |||||
Prepaid expenses and other assets | 5,968 | 6,468 | |||||
Income tax receivables | 255 | 4,812 | |||||
Total current assets | 251,832 | 245,231 | |||||
Long-term receivables, less current maturities | 2,876 | 3,866 | |||||
Goodwill | 7,866 | 8,116 | |||||
Intangibles, net | 5,334 | 7,721 | |||||
Investment in affiliates and other assets | 3,570 | 2,414 | |||||
Deferred income taxes | 9,677 | 9,437 | |||||
29,323 | 31,554 | ||||||
PROPERTY AND EQUIPMENT: | |||||||
Land | 2,093 | 2,155 | |||||
Buildings | 65,219 | 65,247 | |||||
Machinery and equipment | 83,508 | 82,973 | |||||
Office furniture and equipment | 5,578 | 14,746 | |||||
Computer software and hardware | 50,642 | 48,917 | |||||
Equipment held for rental | 374 | 374 | |||||
Demonstration equipment | 7,770 | 8,026 | |||||
Transportation equipment | 6,863 | 6,596 | |||||
222,047 | 229,034 | ||||||
Less accumulated depreciation | 155,096 | 155,871 | |||||
66,951 | 73,163 | ||||||
TOTAL ASSETS | $ | 348,106 | $ | 349,948 | |||
Daktronics, Inc. and Subsidiaries Consolidated Balance Sheets (continued) (in thousands) | |||||||
January 28, 2017 | April 30, 2016 | ||||||
(unaudited) | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | 38,688 | 43,441 | |||||
Accrued expenses | 25,560 | 23,532 | |||||
Warranty obligations | 14,847 | 16,564 | |||||
Billings in excess of costs and estimated earnings | 12,080 | 10,361 | |||||
Customer deposits (billed or collected) | 14,483 | 16,012 | |||||
Deferred revenue (billed or collected) | 12,282 | 10,712 | |||||
Current portion of other long-term obligations | 453 | 585 | |||||
Income taxes payable | 1,788 | 310 | |||||
Total current liabilities | 120,181 | 121,517 | |||||
Long-term warranty obligations | 14,640 | 13,932 | |||||
Long-term deferred revenue (billed or collected) | 5,424 | 5,603 | |||||
Other long-term obligations, less current maturities | 4,099 | 4,059 | |||||
Long-term income tax payable | 3,063 | 3,016 | |||||
Deferred income taxes | 985 | 754 | |||||
Total long-term liabilities | 28,211 | 27,364 | |||||
TOTAL LIABILITIES | 148,392 | 148,881 | |||||
SHAREHOLDERS' EQUITY: | |||||||
Common stock | 52,530 | 51,347 | |||||
Additional paid-in capital | 37,294 | 35,351 | |||||
Retained earnings | 116,143 | 117,276 | |||||
Treasury stock, at cost | (1,834 | ) | (9 | ) | |||
Accumulated other comprehensive loss | (4,419 | ) | (2,898 | ) | |||
TOTAL SHAREHOLDERS' EQUITY | 199,714 | 201,067 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 348,106 | $ | 349,948 | |||
Daktronics, Inc. and Subsidiaries Consolidated Statements of Cash Flows (in thousands) (unaudited) | ||||||||
Nine Months Ended | ||||||||
January 28, 2017 | January 30, 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 9,433 | $ | 4,991 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 13,941 | 12,562 | ||||||
Impairment of intangible assets | 830 | — | ||||||
Loss (gain) on sale of property, equipment and other assets | 23 | (50 | ) | |||||
Share-based compensation | 2,204 | 2,244 | ||||||
Gain on sale of equity investee | — | (119 | ) | |||||
Provision for doubtful accounts | 898 | (110 | ) | |||||
Deferred income taxes, net | (286 | ) | 860 | |||||
Change in operating assets and liabilities | 18,336 | (17,878 | ) | |||||
Net cash provided by operating activities | 45,379 | 2,500 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (6,709 | ) | (13,389 | ) | ||||
Proceeds from sale of property, equipment and other assets | 166 | 111 | ||||||
Purchases of marketable securities | (18,098 | ) | (18,273 | ) | ||||
Proceeds from sales or maturities of marketable securities | 14,594 | 19,069 | ||||||
Acquisitions, net of cash acquired | (1,374 | ) | (2,183 | ) | ||||
Proceeds from sale of equity method investment | — | 377 | ||||||
Net cash used in investing activities | (11,421 | ) | (14,288 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Payments on notes payable | (8 | ) | (33 | ) | ||||
Proceeds from exercise of stock options | 343 | 610 | ||||||
Principal payments on long-term obligations | (912 | ) | (15 | ) | ||||
Dividends paid | (10,566 | ) | (13,158 | ) | ||||
Payments for common shares repurchased | (1,825 | ) | — | |||||
Tax payments related to RSU issuances | (261 | ) | (303 | ) | ||||
Net cash used in financing activities | (13,229 | ) | (12,899 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (680 | ) | (920 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 20,049 | (25,607 | ) | |||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of period | 28,328 | 57,284 | ||||||
End of period | $ | 48,377 | $ | 31,677 | ||||
Daktronics, Inc. and Subsidiaries Net Sales and Orders by Business Unit (in thousands) (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
January 28, 2017 | January 30, 2016 | Dollar Change | Percent Change | January 28, 2017 | January 30, 2016 | Dollar Change | Percent Change | ||||||||||||||||||||||
Net Sales: | |||||||||||||||||||||||||||||
Commercial | $ | 36,165 | $ | 29,385 | $ | 6,780 | 23.1 | % | $ | 112,342 | $ | 112,661 | $ | (319 | ) | (0.3 | )% | ||||||||||||
Live Events | 41,036 | 51,067 | $ | (10,031 | ) | (19.6 | )% | 157,032 | 149,750 | $ | 7,282 | 4.9 | % | ||||||||||||||||
High School Park and Recreation | 12,653 | 10,940 | $ | 1,713 | 15.7 | % | 68,977 | 54,152 | $ | 14,825 | 27.4 | % | |||||||||||||||||
Transportation | 9,130 | 11,698 | $ | (2,568 | ) | (22.0 | )% | 39,517 | 38,759 | $ | 758 | 2.0 | % | ||||||||||||||||
International | 16,735 | 20,726 | $ | (3,991 | ) | (19.3 | )% | 64,989 | 76,383 | $ | (11,394 | ) | (14.9 | )% | |||||||||||||||
$ | 115,719 | $ | 123,816 | $ | (8,097 | ) | (6.5 | )% | $ | 442,857 | $ | 431,705 | $ | 11,152 | 2.6 | % | |||||||||||||
Orders: | |||||||||||||||||||||||||||||
Commercial | $ | 32,595 | $ | 29,922 | $ | 2,673 | 8.9 | % | $ | 114,326 | $ | 95,082 | $ | 19,244 | 20.2 | % | |||||||||||||
Live Events | 51,590 | 43,075 | $ | 8,515 | 19.8 | % | 135,520 | 168,082 | $ | (32,562 | ) | (19.4 | )% | ||||||||||||||||
High School Park and Recreation | 14,178 | 15,131 | $ | (953 | ) | (6.3 | )% | 61,055 | 55,560 | $ | 5,495 | 9.9 | % | ||||||||||||||||
Transportation | 19,621 | 12,401 | $ | 7,220 | 58.2 | % | 46,290 | 42,735 | $ | 3,555 | 8.3 | % | |||||||||||||||||
International | 25,329 | 16,368 | $ | 8,961 | 54.7 | % | 78,164 | 56,105 | $ | 22,059 | 39.3 | % | |||||||||||||||||
$ | 143,313 | $ | 116,897 | $ | 26,416 | 22.6 | % | $ | 435,355 | $ | 417,564 | $ | 17,791 | 4.3 | % |
Reconciliation of Free Cash Flow* (in thousands) (unaudited) | |||||||
Nine Months Ended | |||||||
January 28, 2017 | January 30, 2016 | ||||||
Net cash provided by operating activities | $ | 45,379 | $ | 2,500 | |||
Purchases of property and equipment | (6,709 | ) | (13,389 | ) | |||
Proceeds from sales of property and equipment | 166 | 111 | |||||
Free cash flow | $ | 38,836 | $ | (10,778 | ) |
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