Highlights from Daktronics fiscal first quarter press release.

BROOKINGS, S.D., Sept. 06, 2023 (GLOBE NEWSWIRE) — Daktronics, Inc. (NASDAQ – DAKT) today reported results for its fiscal 2024 first quarter which ended July 29, 2023.

Q1 FY2024 financial highlights:

• Record first quarter net sales of $232.5 million, a 35.3 percent increase from the first quarter of fiscal 2023
• Gross profit as a percentage of net sales of 30.6 percent as a result of record sales volume, stable operations and prior strategic pricing actions
• Operating income rebounded to $40.2 million as compared to an operating loss of $5.5 million in the first quarter of fiscal 2023
• Product order backlog was $323.7 million⁽¹⁾ at July 29, 2023 compared to $400.7 million at the end of the fourth quarter of fiscal 2023 and $469.1 million in the year-earlier period. This change reflects a more stable operating environment and an intentional focus to reduce lead times.

Reece Kurtenbach, Daktronics’ Chairman, President and Chief Executive Officer, stated, “Our first quarter of fiscal 2024 performance is a result of strong execution across all business areas. Our teams strategically utilized our capacity to complete the manufacturing and installation for the start of the fall football season in our High School Park and Recreation (“HSPR”) and Live Events business units and to bring lead times back down toward pre-pandemic levels.

Our teams remain focused on the following priorities and strategies for fiscal year 2024 and beyond:

• 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 while continuing to grow in traditional markets
• Developing more robust integrated business planning systems to surface data available for improved decision making
• Investing in high-return projects and technologies, including digital technologies for both internal and customer facing uses

Balance Sheet and Cash Flow
At the end of the fiscal 2024 first quarter, our working capital ratio was 1.9 to 1. Inventory levels dropped slightly since the end of the fiscal year ended April 29, 2023, and are expected to approach more normalized levels as supply chain disruptions continue to ease and order backlog is fulfilled. Cash, restricted cash and marketable securities totaled $54.9 million, and $41.4 million of long-term debt was outstanding. There were no draw-downs on our line of credit. During the first quarter of fiscal 2024, we generated $19.3 million from operations and used $4.5 million for purchases of property and equipment.

Insider’s Take: Wonder how the market feels about what has been an impressive Daktronics rebound? This graph tells it nicely.  A year ago their stock was trading at $3.00 per share. One year later the stock is up almost 200% trading at $8.89.

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