Here are highlights from Daktronics’ 4th quarter and fiscal year 2024 press release.

Fiscal Q4 and full year 2024 financial highlights:

• Sales increased to a new record of $215.9 million for the fiscal fourth quarter, a 2.9 percent increase compared to the fiscal 2024 fourth quarter’s record revenue; full-year sales were $818.1 million, an 8.5 percent increase from the prior year
• Gross margin for the fourth quarter improved 90 basis points to 25.7 percent from 24.8 percent in the year-earlier period; full year gross profit as a percentage of net sales increased 710 basis points to 27.2 percent as compared to 20.1 percent for fiscal 2023, the highest level since 2009
• Operating income for the fiscal fourth quarter grew 6.4 percent to $19.4 million as compared to the fourth quarter of fiscal 2023 and full-year operating income quadrupled to $87.1 million as compared to fiscal 2023
• Product order backlog was $316.9 million at April 27, 2024 compared to $400.7 million at the end of the fourth quarter of fiscal 2023 as past periods’ overbuilt backlog continues to be worked down to market expected manufacturing lead times
• New product and service orders for the fourth quarter were $205.8 million, a 14.6 percent increase from $179.5 million in the year-earlier period; full-year product and service orders were $740.2 million⁽¹⁾, an increase of 8.7 percent as compared to $681.0 million in fiscal 2023;

Reece Kurtenbach, Daktronics’ Chairman, President and Chief Executive Officer, commented, “We both started and finished fiscal 2024 strong, delivering results that demonstrate the impact of our more profitable business model across a range of key financial metrics. Throughout the year, our teams were laser focused on advancing and extending the operating improvements we introduced in fiscal 2023. We managed the fluctuations that come with the project-based and seasonal nature of our business to outperform even last year’s atypically high level of backorder fulfillment. Good order availability and a strong win rate from our demand creation teams across our product lines, combined with improved manufacturing efficiency and our strong on-time delivery to customer sites, resulted in expanded gross and operating profitability and a marked increase in cash flow generation.”

Mr. Kurtenbach added, “Our orders grew 14.6 percent in the fourth quarter and 8.7 percent for the year, and we have entered fiscal 2025 committed to capture growing market demand, leveraging our recognized leadership position and our strong balance sheet.”

“Our critical priorities for fiscal 2025 are to execute a broad digital transformation to modernize our service systems for field service automation, to advance our enterprise performance planning capabilities, and to improve and automate quoting and sales processes. All three objectives are aligned with our goal of expanding growth and profitability. In the platform and product realm, where Daktronics has always been a market leader, our priorities for the year are to extend our market leadership and emphasize higher margin product areas that are key to winning more profitable business.

SignValue’s Take: Last year Insider was congratulating Daktronics on an outstanding 4th quarter and year end and the market liked it too with their stock up 20% for the day closing at $7.33.

This year the company has built on that momentum. Just look at the growth in stock value below.

With a focus on improved margins, managing their order backlog and innovation, the future look bright for Daktronics. Last fiscal year was a completion of a turnaround that included dealing with cash flow and order backlog issues. This fiscal year, the company is reaping the benefits of their hard work and the market is rewarding them.

SignValue can be reached at (480) 657-8400 or info@signvalue.com for a confidential consultation.

Please note: Principals of SignValue own shares of DAKT through common stock ownership. This article expresses their limited opinions about the company. They are not receiving compensation from, and have no business relationship with, the company mentioned in this article.

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