Insider’s Comments: Outstanding 4th quarter and year end results for the digital billboard maker Daktronics.  The market liked what they  heard as the stock was up 20% for the day closing at $7.33. Here are highlights from their press release.

BROOKINGS, S.D., July 12, 2023 (GLOBE NEWSWIRE) — Daktronics, Inc. (DAKT) today reported fiscal year and fourth quarter 2023 results.

Fiscal 2023 financial highlights:

• Record sales of $754.2 million for the 2023 fiscal year and $209.9 million for the fourth quarter, up 23.4 percent and 29.4 percent compared to the 2022 fiscal year and fourth quarter, respectively
• Gross profit levels improved to 20.1 percent of sales for fiscal year 2023 as compared to 19.1 percent of sales for fiscal 2022 and improved to 24.8 percent from 18.5 percent for the fourth quarters of fiscal 2023 and fiscal 2022, respectively
• Supply chain stabilization and temporary investments in inventory and capacity contributed to more effective and efficient production and order fulfillment starting late in the 2023 second quarter through the end of the fiscal year
• Increased net sales coupled with strategic pricing adjustments and prudent expense management resulted in operating income of $21.4 million for the 2023 fiscal year and $18.3 million for the fourth quarter
• Adjusted operating income(1) was $26.0 million for the 2023 fiscal year an increase from $4.0 million for the 2022 fiscal year
• The events and conditions that gave rise to substantial doubt about our ability to continue as a going concern were resolved
• Fiscal 2024 starting with product order backlog at $401 million(2)

Reflection on FY2023

Reece Kurtenbach, chairman, president and chief executive officer, stated, “Thanks to all of our stakeholders, especially customers, employees and suppliers, Daktronics has emerged from the challenges of the last three years strategically renewed, operationally focused, and financially sound. Our teams came together to take decisive and deliberate actions to improve our customers’ experience while increasing our profitability and working capital levels through the past’s dynamic and challenging operating environment. Fiscal 2023 was an incredibly positive transition year and our successful navigation on multiple fronts positions us for long-term success. Fiscal 2023 performance is a testimony to the resiliency and strength of our diversified markets, teams, and innovation.”

Outlook for FY2024 and Beyond

Our priorities for fiscal 2024 include:

• Growing the business profitably while generating cash through working capital management, strategic pricing adjustments, product mix changes, and careful expense management
• Improving operational efficiency to lower costs, reduce lead times, and improve the customer experience
• Developing additional markets for new customer types and channels and growing in traditional markets
• Developing more robust integrated business planning systems to improve data available for decision making
• Investing in high-return projects and technologies, including digital technologies for both internal and customer facing uses

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