South Dakota
|
|
|
46-0306862
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
201 Daktronics Drive
|
Brookings,
|
SD
|
57006
|
(Address of Principal Executive Offices)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, No Par Value
|
DAKT
|
NASDAQ Global Select Market
|
Preferred Stock Purchase Rights
|
DAKT
|
NASDAQ Global Select Market
|
Large accelerated filer
|
☐
|
|
Accelerated filer
|
x
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
|
August 1,
2020 |
|
August 3,
2019 |
||||
Cash and cash equivalents
|
$
|
44,609
|
|
|
$
|
20,762
|
|
Restricted cash
|
96
|
|
|
339
|
|
||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows
|
$
|
44,705
|
|
|
$
|
21,101
|
|
|
|
Allowance for Doubtful Accounts:
|
||
Balance as of May 2, 2020
|
|
$
|
2,828
|
|
Charged to costs and expenses
|
|
735
|
|
|
Deductions (1)
|
|
(241
|
)
|
|
Balance as of August 1, 2020
|
|
$
|
3,322
|
|
|
Net income
|
|
Shares
|
|
Per share income
|
|||||
For the three months ended August 1, 2020
|
|
|
|
|
|
|||||
Basic earnings per share
|
$
|
7,467
|
|
|
44,654
|
|
|
$
|
0.17
|
|
Dilution associated with stock compensation plans
|
—
|
|
|
97
|
|
|
—
|
|
||
Diluted earnings per share
|
$
|
7,467
|
|
|
44,751
|
|
|
$
|
0.17
|
|
For the three months ended August 3, 2019
|
|
|
|
|
|
|||||
Basic earnings per share
|
$
|
7,030
|
|
|
45,089
|
|
|
$
|
0.16
|
|
Dilution associated with stock compensation plans
|
—
|
|
|
172
|
|
|
—
|
|
||
Diluted earnings per share
|
$
|
7,030
|
|
|
45,261
|
|
|
$
|
0.16
|
|
|
Three Months Ended August 1, 2020
|
||||||||||||||||||||||
|
Commercial
|
|
Live Events
|
|
High School Park and Recreation
|
|
Transportation
|
|
International
|
|
Total
|
||||||||||||
Type of performance obligation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unique configuration
|
$
|
8,727
|
|
|
$
|
41,975
|
|
|
$
|
7,668
|
|
|
$
|
7,724
|
|
|
$
|
4,012
|
|
|
$
|
70,106
|
|
Limited configuration
|
22,555
|
|
|
5,419
|
|
|
20,688
|
|
|
6,266
|
|
|
8,653
|
|
|
63,581
|
|
||||||
Service and other
|
3,224
|
|
|
4,080
|
|
|
587
|
|
|
508
|
|
|
1,558
|
|
|
9,957
|
|
||||||
|
$
|
34,506
|
|
|
$
|
51,474
|
|
|
$
|
28,943
|
|
|
$
|
14,498
|
|
|
$
|
14,223
|
|
|
$
|
143,644
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goods/services transferred at a point in time
|
$
|
22,892
|
|
|
$
|
6,214
|
|
|
$
|
19,368
|
|
|
$
|
6,374
|
|
|
$
|
9,179
|
|
|
$
|
64,027
|
|
Goods/services transferred over time
|
11,614
|
|
|
45,260
|
|
|
9,575
|
|
|
8,124
|
|
|
5,044
|
|
|
79,617
|
|
||||||
|
$
|
34,506
|
|
|
$
|
51,474
|
|
|
$
|
28,943
|
|
|
$
|
14,498
|
|
|
$
|
14,223
|
|
|
$
|
143,644
|
|
|
Three Months Ended August 3, 2019
|
||||||||||||||||||||||
|
Commercial
|
|
Live Events
|
|
High School Park and Recreation
|
|
Transportation
|
|
International
|
|
Total
|
||||||||||||
Type of performance obligation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unique configuration
|
$
|
12,965
|
|
|
$
|
45,587
|
|
|
$
|
6,030
|
|
|
$
|
11,897
|
|
|
$
|
15,678
|
|
|
$
|
92,157
|
|
Limited configuration
|
27,235
|
|
|
7,713
|
|
|
23,800
|
|
|
6,587
|
|
|
9,930
|
|
|
75,265
|
|
||||||
Service and other
|
3,835
|
|
|
6,006
|
|
|
635
|
|
|
534
|
|
|
1,824
|
|
|
12,834
|
|
||||||
|
$
|
44,035
|
|
|
$
|
59,306
|
|
|
$
|
30,465
|
|
|
$
|
19,018
|
|
|
$
|
27,432
|
|
|
$
|
180,256
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goods/services transferred at a point in time
|
$
|
27,703
|
|
|
$
|
9,120
|
|
|
$
|
22,599
|
|
|
$
|
6,697
|
|
|
$
|
10,188
|
|
|
$
|
76,307
|
|
Goods/services transferred over time
|
16,332
|
|
|
50,186
|
|
|
7,866
|
|
|
12,321
|
|
|
17,244
|
|
|
103,949
|
|
||||||
|
$
|
44,035
|
|
|
$
|
59,306
|
|
|
$
|
30,465
|
|
|
$
|
19,018
|
|
|
$
|
27,432
|
|
|
$
|
180,256
|
|
|
August 1, 2020
|
|
May 2, 2020
|
|
Dollar Change
|
|
Percent Change
|
|||||||
Contract assets
|
$
|
33,261
|
|
|
$
|
35,467
|
|
|
$
|
(2,206
|
)
|
|
(6.2
|
)%
|
Contract liabilities - current
|
50,159
|
|
|
50,897
|
|
|
(738
|
)
|
|
(1.4
|
)
|
|||
Contract liabilities - noncurrent
|
10,715
|
|
|
10,707
|
|
|
8
|
|
|
0.1
|
|
|
|
August 1, 2020
|
||
Balance at beginning of period
|
|
$
|
24,490
|
|
New contracts sold
|
|
8,188
|
|
|
Less: reductions for revenue recognized
|
|
(9,115
|
)
|
|
Foreign currency translation and other
|
|
250
|
|
|
Balance at end of period
|
|
$
|
23,813
|
|
|
Three Months Ended
|
||||||
|
August 1,
2020 |
|
August 3,
2019 |
||||
Net sales:
|
|
|
|
||||
Commercial
|
$
|
34,506
|
|
|
$
|
44,035
|
|
Live Events
|
51,474
|
|
|
59,306
|
|
||
High School Park and Recreation
|
28,943
|
|
|
30,465
|
|
||
Transportation
|
14,498
|
|
|
19,018
|
|
||
International
|
14,223
|
|
|
27,432
|
|
||
|
143,644
|
|
|
180,256
|
|
||
|
|
|
|
||||
Gross profit:
|
|
|
|
||||
Commercial
|
7,742
|
|
|
9,218
|
|
||
Live Events
|
9,354
|
|
|
12,737
|
|
||
High School Park and Recreation
|
10,476
|
|
|
10,187
|
|
||
Transportation
|
5,143
|
|
|
6,754
|
|
||
International
|
3,046
|
|
|
6,609
|
|
||
|
35,761
|
|
|
45,505
|
|
||
|
|
|
|
||||
Contribution margin: (1)
|
|
|
|
||||
Commercial
|
4,441
|
|
|
4,084
|
|
||
Live Events
|
7,138
|
|
|
8,872
|
|
||
High School Park and Recreation
|
7,915
|
|
|
6,592
|
|
||
Transportation
|
4,381
|
|
|
5,452
|
|
||
International
|
330
|
|
|
2,208
|
|
||
|
24,205
|
|
|
27,208
|
|
||
|
|
|
|
||||
Non-allocated operating expenses:
|
|
|
|
||||
General and administrative
|
7,124
|
|
|
9,093
|
|
||
Product design and development
|
7,532
|
|
|
10,500
|
|
||
Operating income
|
9,549
|
|
|
7,615
|
|
||
|
|
|
|
||||
Nonoperating income (expense):
|
|
|
|
||||
Interest income
|
85
|
|
|
269
|
|
||
Interest expense
|
(73
|
)
|
|
(35
|
)
|
||
Other (expense) income, net
|
(627
|
)
|
|
193
|
|
||
|
|
|
|
||||
Income before income taxes
|
8,934
|
|
|
8,042
|
|
||
Income tax expense
|
1,467
|
|
|
1,012
|
|
||
Net income
|
$
|
7,467
|
|
|
$
|
7,030
|
|
|
|
|
|
||||
Depreciation and amortization:
|
|
|
|
||||
Commercial
|
$
|
772
|
|
|
$
|
974
|
|
Live Events
|
1,451
|
|
|
1,398
|
|
||
High School Park and Recreation
|
496
|
|
|
512
|
|
||
Transportation
|
237
|
|
|
264
|
|
||
International
|
693
|
|
|
524
|
|
||
Unallocated corporate depreciation
|
688
|
|
|
711
|
|
||
|
$
|
4,337
|
|
|
$
|
4,383
|
|
|
Three Months Ended
|
||||||
|
August 1,
2020 |
|
August 3,
2019 |
||||
Net sales:
|
|
|
|
||||
United States
|
$
|
128,069
|
|
|
$
|
149,460
|
|
Outside United States
|
15,575
|
|
|
30,796
|
|
||
|
$
|
143,644
|
|
|
$
|
180,256
|
|
|
|
|
|
||||
|
|
|
|
||||
|
August 1,
2020 |
|
May 2,
2020 |
||||
Property and equipment, net of accumulated depreciation:
|
|
|
|
||||
United States
|
$
|
56,822
|
|
|
$
|
58,422
|
|
Outside United States
|
9,237
|
|
|
9,062
|
|
||
|
$
|
66,059
|
|
|
$
|
67,484
|
|
|
Amortized Cost
|
|
Unrealized Losses
|
|
Fair Value
|
||||||
Balance as of August 1, 2020
|
|
|
|
|
|
||||||
Certificates of deposit
|
$
|
1,230
|
|
|
$
|
—
|
|
|
$
|
1,230
|
|
|
$
|
1,230
|
|
|
$
|
—
|
|
|
$
|
1,230
|
|
Balance as of May 2, 2020
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit
|
$
|
1,230
|
|
|
$
|
—
|
|
|
$
|
1,230
|
|
|
$
|
1,230
|
|
|
$
|
—
|
|
|
$
|
1,230
|
|
|
Less than 12 months
|
|
Total
|
||||
Certificates of deposit
|
$
|
1,230
|
|
|
$
|
1,230
|
|
|
$
|
1,230
|
|
|
$
|
1,230
|
|
|
Live Events
|
|
Commercial
|
|
Transportation
|
|
International
|
|
Total
|
||||||||||
Balance as of May 2, 2020
|
$
|
2,266
|
|
|
$
|
3,144
|
|
|
$
|
38
|
|
|
$
|
2,295
|
|
|
$
|
7,743
|
|
Foreign currency translation
|
13
|
|
|
91
|
|
|
13
|
|
|
188
|
|
|
305
|
|
|||||
Balance as of August 1, 2020
|
$
|
2,279
|
|
|
$
|
3,235
|
|
|
$
|
51
|
|
|
$
|
2,483
|
|
|
$
|
8,048
|
|
|
August 1,
2020 |
|
May 2,
2020 |
||||
Raw materials
|
$
|
33,076
|
|
|
$
|
35,306
|
|
Work-in-process
|
9,943
|
|
|
12,102
|
|
||
Finished goods
|
38,416
|
|
|
39,395
|
|
||
|
$
|
81,435
|
|
|
$
|
86,803
|
|
|
August 1,
2020 |
|
May 2,
2020 |
||||
Land
|
$
|
2,183
|
|
|
$
|
2,183
|
|
Buildings
|
69,967
|
|
|
68,804
|
|
||
Machinery and equipment
|
105,188
|
|
|
104,157
|
|
||
Office furniture and equipment
|
6,174
|
|
|
6,151
|
|
||
Computer software and hardware
|
53,691
|
|
|
53,441
|
|
||
Equipment held for rental
|
287
|
|
|
287
|
|
||
Demonstration equipment
|
8,368
|
|
|
8,473
|
|
||
Transportation equipment
|
7,783
|
|
|
7,944
|
|
||
|
253,641
|
|
|
251,440
|
|
||
Less accumulated depreciation
|
187,582
|
|
|
183,956
|
|
||
|
$
|
66,059
|
|
|
$
|
67,484
|
|
|
|
August 1, 2020
|
||
Beginning accrued warranty obligations
|
|
$
|
25,624
|
|
Warranties issued during the period
|
|
2,800
|
|
|
Settlements made during the period
|
|
(1,056
|
)
|
|
Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations
|
|
(308
|
)
|
|
Ending accrued warranty obligations
|
|
$
|
27,060
|
|
Fiscal years ending
|
|
Amount
|
||
2021
|
|
$
|
2,831
|
|
2022
|
|
2,750
|
|
|
2023
|
|
1,755
|
|
|
2024
|
|
148
|
|
|
2025
|
|
113
|
|
|
Thereafter
|
|
40
|
|
|
|
|
$
|
7,637
|
|
|
Fair Value Measurements
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Balance as of August 1, 2020
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
44,609
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44,609
|
|
Restricted cash
|
96
|
|
|
—
|
|
|
—
|
|
|
96
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||
Certificates of deposit
|
—
|
|
|
1,230
|
|
|
—
|
|
|
1,230
|
|
||||
Derivatives - asset position
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
||||
Derivatives - liability position
|
—
|
|
|
(242
|
)
|
|
—
|
|
|
(242
|
)
|
||||
Acquisition-related contingent consideration
|
—
|
|
|
—
|
|
|
(401
|
)
|
|
(401
|
)
|
||||
|
$
|
44,705
|
|
|
$
|
1,024
|
|
|
$
|
(401
|
)
|
|
$
|
45,328
|
|
Balance as of May 2, 2020
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
40,398
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40,398
|
|
Restricted cash
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||
Certificates of deposit
|
—
|
|
|
1,230
|
|
|
—
|
|
|
1,230
|
|
||||
Derivatives - asset position
|
—
|
|
|
261
|
|
|
—
|
|
|
261
|
|
||||
Derivatives - liability position
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||
Acquisition-related contingent consideration
|
—
|
|
|
—
|
|
|
(761
|
)
|
|
(761
|
)
|
||||
|
$
|
40,412
|
|
|
$
|
1,474
|
|
|
$
|
(761
|
)
|
|
$
|
41,125
|
|
Acquisition-related contingent consideration as of May 2, 2020
|
|
$
|
761
|
|
Additions
|
|
33
|
|
|
Settlements
|
|
(400
|
)
|
|
Interest
|
|
7
|
|
|
Acquisition-related contingent consideration as of August 1, 2020
|
|
$
|
401
|
|
|
August 1, 2020
|
|
May 2, 2020
|
||||||||
|
U.S. Dollars
|
|
Foreign
Currency |
|
U.S.
Dollars |
|
Foreign
Currency |
||||
Foreign Currency Exchange Forward Contracts:
|
|
|
|
|
|
|
|
||||
U.S. Dollars/Australian Dollars
|
5,406
|
|
|
7,839
|
|
|
2,235
|
|
|
3,323
|
|
U.S. Dollars/Canadian Dollars
|
—
|
|
|
—
|
|
|
452
|
|
|
648
|
|
U.S. Dollars/British Pounds
|
2,149
|
|
|
1,650
|
|
|
3,160
|
|
|
2,424
|
|
U.S. Dollars/Euros
|
—
|
|
|
—
|
|
|
1,881
|
|
|
1,689
|
|
•
|
our percentage of market share by comparing our estimated revenue to the total estimated global digital display revenue,
|
•
|
our order growth compared to the overall digital market order change,
|
•
|
financial metrics such as annual order volume and profit change as compared to our previous financial results,
|
•
|
customer retention and expansion rates, and
|
•
|
our ability to generate profits over the long-term to provide a shareholder return.
|
•
|
Standard display product market growth due to market adoption and lower product costs, which drive marketplace expansion. Standard display products are used to attract or communicate with customers and potential customers of retail, commercial, and other establishments. Pricing and economic conditions are the principal factors that impact our success in this business unit. We utilize a reseller network to distribute our standard products.
|
•
|
National accounts standard display market opportunities due to customers' desire to communicate their message, advertising and content consistently across the country. Increased demand is possible from national retailers, quick serve restaurants, petroleum retailers, and other nationwide organizations.
|
•
|
Additional standard display offerings using micro-light emitting diode ("LED") designs.
|
•
|
Increasing use of LED technologies replacing signage previously using liquid crystal display ("LCD") technology by existing and new customers.
|
•
|
Increasing interest in spectaculars, which include very large and sometimes highly customized displays as part of entertainment venues such as casinos, shopping centers, cruise ships and Times Square type locations.
|
•
|
Dynamic messaging systems demand growth due to market adoption and expanded use of this technology.
|
•
|
The use of architectural lighting products for commercial buildings, which real estate owners use to add accents or effects to an entire side or circumference of a building to communicate messages or to decorate the building.
|
•
|
The continued deployment of digital billboards as OOH advertising companies continue developing new sites and replacing digital billboards reaching end of life. This is dependent on no adverse changes occurring in the digital billboard regulatory environment restricting future billboard deployments, as well as maintaining our current market share in a business that is concentrated in a few large OOH companies.
|
•
|
Replacement cycles within each of these areas.
|
•
|
Facilities spending more on larger display systems to enhance the game-day and event experience for attendees.
|
•
|
Lower product costs, driving an expansion of the marketplace.
|
•
|
Our product and service offerings, including additional micro-LED offerings which remain the most integrated and comprehensive offerings in the industry.
|
•
|
The competitive nature of sports teams, which strive to out-perform their competitors with display systems.
|
•
|
The desire for high-definition video displays, which typically drives larger displays or higher resolution displays, both of which increase the average transaction size.
|
•
|
Dynamic messaging system needs throughout a sports facility.
|
•
|
Increasing use of LED technologies replacing signage previously using LCD technology in and surrounding live events facilities.
|
•
|
Replacement cycles within each of these areas.
|
•
|
Increased demand for video systems in high schools as school districts realize the revenue generating potential of these displays compared to traditional scoreboards and these systems' ability to provide or enhance academic curriculum offerings for students.
|
•
|
Increased demand for different types of displays and dynamic messaging systems, such as message centers at schools to communicate to students, parents and the broader community.
|
•
|
Lower system costs driving the use of more sophisticated displays in school athletic facilities, such as large integrated video systems.
|
•
|
Expanding control system options tailored for the markets' needs.
|
|
Three Months Ended
|
|||||||||||||
(in thousands)
|
August 1,
2020 |
|
August 3,
2019 |
|
Dollar Change
|
|
Percent Change
|
|||||||
Net sales:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
$
|
34,506
|
|
|
$
|
44,035
|
|
|
$
|
(9,529
|
)
|
|
(21.6
|
)%
|
Live Events
|
51,474
|
|
|
59,306
|
|
|
(7,832
|
)
|
|
(13.2
|
)
|
|||
High School Park and Recreation
|
28,943
|
|
|
30,465
|
|
|
(1,522
|
)
|
|
(5.0
|
)
|
|||
Transportation
|
14,498
|
|
|
19,018
|
|
|
(4,520
|
)
|
|
(23.8
|
)
|
|||
International
|
14,223
|
|
|
27,432
|
|
|
(13,209
|
)
|
|
(48.2
|
)
|
|||
|
$
|
143,644
|
|
|
$
|
180,256
|
|
|
$
|
(36,612
|
)
|
|
(20.3
|
)%
|
Orders:
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial
|
$
|
25,533
|
|
|
$
|
38,648
|
|
|
$
|
(13,115
|
)
|
|
(33.9
|
)%
|
Live Events
|
41,860
|
|
|
66,969
|
|
|
(25,109
|
)
|
|
(37.5
|
)
|
|||
High School Park and Recreation
|
28,099
|
|
|
30,552
|
|
|
(2,453
|
)
|
|
(8.0
|
)
|
|||
Transportation
|
13,089
|
|
|
22,215
|
|
|
(9,126
|
)
|
|
(41.1
|
)
|
|||
International
|
13,572
|
|
|
29,079
|
|
|
(15,507
|
)
|
|
(53.3
|
)
|
|||
|
$
|
122,153
|
|
|
$
|
187,463
|
|
|
$
|
(65,310
|
)
|
|
(34.8
|
)%
|
|
Three Months Ended
|
||||||||||||||
|
August 1, 2020
|
|
|
|
August 3, 2019
|
||||||||||
|
Amount
|
|
As a Percent of Net Sales
|
|
|
|
Amount
|
|
As a Percent of Net Sales
|
||||||
(in thousands)
|
|||||||||||||||
Commercial
|
$
|
7,742
|
|
|
22.4
|
%
|
|
|
|
$
|
9,218
|
|
|
20.9
|
%
|
Live Events
|
9,354
|
|
|
18.2
|
|
|
|
|
12,737
|
|
|
21.5
|
|
||
High School Park and Recreation
|
10,476
|
|
|
36.2
|
|
|
|
|
10,187
|
|
|
33.4
|
|
||
Transportation
|
5,143
|
|
|
35.5
|
|
|
|
|
6,754
|
|
|
35.5
|
|
||
International
|
3,046
|
|
|
21.4
|
|
|
|
|
6,609
|
|
|
24.1
|
|
||
|
$
|
35,761
|
|
|
24.9
|
%
|
|
|
|
$
|
45,505
|
|
|
25.2
|
%
|
|
Three Months Ended
|
|||||||||||||||
|
August 1, 2020
|
|
|
|
August 3, 2019
|
|||||||||||
|
Amount
|
|
As a Percent of Net Sales
|
|
Percent Change
|
|
Amount
|
|
As a Percent of Net Sales
|
|||||||
(in thousands)
|
|
|
|
|
||||||||||||
Commercial
|
$
|
4,441
|
|
|
12.9
|
%
|
|
8.7
|
%
|
|
$
|
4,084
|
|
|
9.3
|
%
|
Live Events
|
7,138
|
|
|
13.9
|
|
|
(19.5
|
)
|
|
8,872
|
|
|
15.0
|
|
||
High School Park and Recreation
|
7,915
|
|
|
27.3
|
|
|
20.1
|
|
|
6,592
|
|
|
21.6
|
|
||
Transportation
|
4,381
|
|
|
30.2
|
|
|
(19.6
|
)
|
|
5,452
|
|
|
28.7
|
|
||
International
|
330
|
|
|
2.3
|
|
|
(85.1
|
)
|
|
2,208
|
|
|
8.0
|
|
||
|
$
|
24,205
|
|
|
16.9
|
%
|
|
(11.0
|
)%
|
|
$
|
27,208
|
|
|
15.1
|
%
|
|
Three Months Ended
|
|||||||||||||||
|
August 1, 2020
|
|
|
|
August 3, 2019
|
|||||||||||
|
Amount
|
|
As a Percent of Net Sales
|
|
Percent Change
|
|
Amount
|
|
As a Percent of Net Sales
|
|||||||
(in thousands)
|
||||||||||||||||
General and administrative
|
$
|
7,124
|
|
|
5.0
|
%
|
|
(21.7
|
)%
|
|
$
|
9,093
|
|
|
5.0
|
%
|
Product design and development
|
$
|
7,532
|
|
|
5.2
|
%
|
|
(28.3
|
)%
|
|
$
|
10,500
|
|
|
5.8
|
%
|
|
Three Months Ended
|
|||||||||||||||
|
August 1, 2020
|
|
|
|
August 3, 2019
|
|||||||||||
|
Amount
|
|
As a Percent of Net Sales
|
|
Percent Change
|
|
Amount
|
|
As a Percent of Net Sales
|
|||||||
(in thousands)
|
||||||||||||||||
Interest income, net
|
$
|
12
|
|
|
—
|
%
|
|
(94.9
|
)%
|
|
$
|
234
|
|
|
0.1
|
%
|
Other (expense) income, net
|
$
|
(627
|
)
|
|
(0.4
|
)%
|
|
(424.9
|
)%
|
|
$
|
193
|
|
|
0.1
|
%
|
|
Three Months Ended
|
|||||||||
|
August 1,
2020 |
|
August 3,
2019 |
|
Percent Change
|
|||||
(in thousands)
|
||||||||||
Net cash provided by (used in):
|
|
|
|
|
|
|||||
Operating activities
|
$
|
8,545
|
|
|
$
|
(18,218
|
)
|
|
(146.9
|
)%
|
Investing activities
|
(3,561
|
)
|
|
8,272
|
|
|
(143.0
|
)
|
||
Financing activities
|
(210
|
)
|
|
(4,658
|
)
|
|
(95.5
|
)
|
||
Effect of exchange rate changes on cash
|
(481
|
)
|
|
(37
|
)
|
|
1,200.0
|
|
||
Net increase in cash, cash equivalents and restricted cash
|
$
|
4,293
|
|
|
$
|
(14,641
|
)
|
|
(129.3
|
)%
|
|
Three Months Ended
|
||||||
|
August 1,
2020 |
|
August 3,
2019 |
||||
(Increase) decrease:
|
|
|
|
||||
Accounts receivable
|
$
|
(15,514
|
)
|
|
$
|
(30,973
|
)
|
Long-term receivables
|
693
|
|
|
(2,298
|
)
|
||
Inventories
|
5,826
|
|
|
(6,763
|
)
|
||
Contract assets
|
2,378
|
|
|
(9,180
|
)
|
||
Prepaid expenses and other current assets
|
2,122
|
|
|
(1,296
|
)
|
||
Income tax receivables
|
308
|
|
|
52
|
|
||
Investment in affiliates and other assets
|
211
|
|
|
(53
|
)
|
||
Increase (decrease):
|
|
|
|
||||
Accounts payable
|
1,240
|
|
|
12,535
|
|
||
Contract liabilities
|
(1,095
|
)
|
|
6,341
|
|
||
Accrued expenses
|
(2,026
|
)
|
|
206
|
|
||
Warranty obligations
|
881
|
|
|
158
|
|
||
Long-term warranty obligations
|
550
|
|
|
823
|
|
||
Income taxes payable
|
398
|
|
|
461
|
|
||
Long-term marketing obligations and other payables
|
(243
|
)
|
|
(344
|
)
|
||
|
$
|
(4,271
|
)
|
|
$
|
(30,331
|
)
|
•
|
preserving liquidity by drawing down $15 million from our existing line of credit and pursuing other sources of financing;
|
•
|
reducing investments in capital assets; we estimate approximately $15 million in capital expenses in fiscal year 2021;
|
•
|
reducing executive pay and Board member compensation;
|
•
|
utilizing tax and other government opportunities to improve liquidity;
|
•
|
temporarily furloughing and permanently reducing our staffing and reducing salaries, where necessary, to maintain a right-sized skilled workforce;
|
•
|
instituting other cost reductions across the business;
|
•
|
suspending stock repurchases under our share repurchase program; and
|
•
|
suspending dividend declarations for the foreseeable future.
|
|
|
/s/ Sheila M. Anderson
|
|
|
Daktronics, Inc.
|
|
|
Sheila M. Anderson
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer and
|
|
|
Principal Accounting Officer)
|
|
|
|
Date:
|
August 28, 2020
|
|
|
||
|
||
|
||
101
|
The following financial information from our Quarterly Report on Form 10-Q for the period ended August 1, 2020 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Cash Flows, (v) Notes to Condensed Consolidated Financial Statements, and (vii) document and entity information. (1)
|
|
|
(1)
|
Filed herewith electronically.
|
BORROWER:
DAKTRONICS, INC.
By: /s/ Reece A. Kurtenbach
Name: Reece A. Kurtenbach
Title: Chief Executive Officer
By: /s/ Sheila M. Anderson
Name: Sheila M. Anderson
Title: Chief Financial Officer
|
|
|
LENDER:
|
|
U.S. BANK NATIONAL ASSOCIATION
|
|
By: /s/ Carl A. Johnson
Name: Carl A. Johnson
Title: Vice President
|
DEBTOR:
DAKTRONICS, INC.
By: /s/ Reece A. Kurtenbach
Name: Reece A. Kurtenbach
Title: Chief Executive Officer
By: /s/ Sheila M. Anderson
Name: Sheila M. Anderson
Title: Chief Financial Officer
|
|
|
SECURED PARTY:
|
|
U.S. BANK NATIONAL ASSOCIATION
|
|
By: /s/ Carl A. Johnson
Name: Carl A. Johnson
Title: Vice President
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended August 1, 2020 of Daktronics, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financially reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Reece A. Kurtenbach
|
|
|
Reece A. Kurtenbach
|
|
|
Chief Executive Officer
|
|
|
Date:
|
8/28/2020
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended August 1, 2020 of Daktronics, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financially reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Sheila M. Anderson
|
|
|
Sheila M. Anderson
|
|
|
Chief Financial Officer
|
|
|
Date:
|
8/28/2020
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Reece A. Kurtenbach
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Reece A. Kurtenbach
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Chief Executive Officer
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Date:
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8/28/2020
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Sheila M. Anderson
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Sheila M. Anderson
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Chief Financial Officer
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Date:
|
8/28/2020
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