Daktronics had a loss in the first quarter of fiscal 2025 caused by a non-operating charge on a convertible note.  Here are the results of Daktronics earnings release for the first quarter of final 2025 (3 months ended July 27, 2024) and conference call.

• Revenues declined  to $226 million due to commercial, park and recreation and international sales.  Revenues for the commercial division, which includes digital billboards declined 27% to $34 million during the first quarter of fiscal 2025.  Commercial orders, however increased by 30% to $42 million during the first quarter of fiscal 2025 which suggest a strong second quarter.
• Operating expenses increased by 20% to $37 million for the first quarter of fiscal 2025 reflecting investment in staffing to upgrade the company’s information systems.  The company expects to roll out these systems in late fiscal 2025 and early fiscal 2026.
• The company took a $21 million non-operating charge in the first quarter for the change in the fair market value of a convertible note.
• As a result of the above, the company had a net loss of $4.9 million during the first quarter of fiscal 2025.  In the absence of the non-operating charge the company would have had net income of $17 million, slightly below the $19 million for the first quarter of fiscal 2024.
• Cash totaled $97 million at July 27, 2024.  Daktronics had $74 million of debt and a net worth of $238 million.

Daktronics CEO Reese Kurtenbach on the increase in commercial orders

Our strategy to promote independent out of home operators is also driving this increase.  Spectacular sales also increased…

Billboard Insider’s take 

Daktronics would have been profitable in the absence of a non-operating charge taken on a convertible note.  The company has little debt and excellent liquidity (e.g. cash balances in excess of $97 million and an undrawn line of credit of $35 million). Insider wonders what impact the company’s current info technology push will have on the company’s digital billboard software and outdoor advertising customer management systems.

To receive a free morning newsletter with each day’s Billboard insider articles email info@billboardinsider.com with the word “Subscribe” in the title.  Our newsletter is free and we don’t sell our subscriber list.

Paid Advertisement