Latest news with #Brookings
The Hill
18 hours ago
- Politics
- The Hill
Trump defies the skeptics and conquers Europe
Remember how President Trump was going to destroy the NATO alliance? How Joe Biden was the trusted guardian of U.S. international relations? Remember Biden crowing, 'We're back?' It turns out that Trump is back, and thank Heaven for that. Trump has arguably just saved NATO, and possibly Europe. His triumphant return to the NATO stage — called by NPR the 'Trump-dominated NATO summit' — should be celebrated by every American. He stood up for our country, as opposed to acting as a functionary of the global world order, and it worked. NPR reported that the recent summit in the Netherlands is being called 'transformational' and 'historic.' They write, 'If there were doubts that the United States runs NATO, the summit removed them.' They also quoted Finland's President Alexander Stubb as saying, 'We're witnessing the birth of a new NATO.' Has NATO been bullied by Trump? Yes — bullied into becoming a stronger, more effective alliance that will draw on the treasuries of its 32 member countries to beef up its mutual defense. No longer will it rely so heavily on the U.S. to counter Russia or other adversaries. With the U.S. still providing a needed backstop, Europe is taking charge of its own destiny, at long last. NATO members have now agreed to hike their outlays on munitions and other defense items to 5 percent of GDP — an astonishing pivot from years of underinvesting, and also a huge win for Trump on an issue he has been raising for more than a decade. Europe's free ride is over. Further defying the incessant naysayers, Trump affirmed our country's commitment to the alliance in a press conference afterward, calling NATO essential for the 'safety of Europe and the safety of the world.' In 2023, former Trump administration national security adviser John Bolton, whom Trump fired in 2019, predicted, 'In a second Trump term, we'd almost certainly withdraw from NATO.' In 2024 the Brookings Institute quoted Bolton's dire warning in a piece titled, 'Could NATO survive a second Trump administration?' Their conclusion? 'Most likely not — at least not with the United States as a committed ally and alliance leader.' The Brookings author explained that Trump 'believes allies use their defense savings to bolster their industries, out-compete the United States in trade, and take American jobs.' And of course, the Brookings author was all wrong, even though Trump is right in all of those beliefs. Yes, Europe has been freeloading for decades, relying on the U.S. to pay for the bulk of its defense and — to rub salt in the wound — also erecting tariffs and non-trade barriers to advantage its own industries. But those days are over. Both on defense and trade, Trump has lowered the hammer. In 2017, the U.S. accounted for 51.1 percent of the allies' combined GDP and 71.7 percent of their combined defense expenditures. More shocking: in 2017, the U.K. spent some $55.2 billion on defense, Germany $45.4 billion and France $45.9 billion; the United States shelled out $685.9 billion. What's reasonable about that? Eventually, some European countries got on board with the need to up their militaries. Earlier this year, Polish prime minister Donald Tusk addressed the European Parliament and said, 'Don't ask America what it can do for our security. Ask yourselves what we can do for our own security.' Poland is one of the few countries in Europe spending 5 percent of its GDP on defense because, as Tusk said, 'Poland … has such a long border with Russia and Belarus, and the friendly one with Ukraine, but a war border in a way at the moment.' He made the case: 'If Europe is to survive, it needs to be armed. It is not our choice.' Early in his 2016 presidency, Trump attended his first NATO meeting, and began a years-long push to get members to raise their spending. In 2014 the alliance had committed to raise defense spending to 2 percent of GDP by 2024, but only six countries at the time of the 2017 gathering had met that goal or even indicated a willingness to do so. Thanks in part to public shaming by Trump, by 2023, more than two-thirds of alliance countries were expected to hit that target. Trump not only embarrassed NATO, he also refused to reflexively support Article Five of the 1949 Washington Treaty, which affirms that an attack against one 'shall be considered an attack against them all.' That set off alarm bells. The Brookings analyst noted that endorsing 'Article Five is something American presidents ritualistically do, in part because Article Five does not commit allies to a specific action. However, American presidents other than Trump made clear the United States would come to the aid of an attacked ally with U.S. military force. That bolsters deterrence.' He noted that Trump, at a campaign stop last year, threatened that if NATO members did not raise their defense outlays, he would 'absolutely not' defend them, adding 'I would encourage [the Russians] to do whatever the hell they want.' What has been the fallout from Trump's bullying of NATO? They have done exactly as he correctly wanted them to do, taking on an increasing share of the collective defense budget. In 2014, members other than the U.S. accounted for roughly 24 percent of total defense spending. By 2024 that portion had jumped to about 36 percent. That is a win, not only for the U.S. but for Europe as well. Forcing Europe into self-reliance is essential to our ability to counter China. As Secretary of Defense Pete Hegseth told the Ukraine Defense Contact Group in February, 'We also face a peer competitor in the communist Chinese with the capability and intent to threaten our homeland and core national interests in the Indo-Pacific. The U.S. is prioritizing deterring war with China in the Pacific, recognizing the reality of scarcity, and making the resourcing tradeoffs to ensure deterrence does not fail.' NATO Secretary-General Mark Rutte texted Trump as he traveled to the NATO gathering, saying 'Europe is going to pay in a BIG way, as they should, and it will be your win.' Indeed. Liz Peek is a former partner of major bracket Wall Street firm Wertheim and Company.
Yahoo
3 days ago
- Business
- Yahoo
Daktronics, Inc. Announces Fiscal Year and Fourth Quarter 2025 Results
FY2025 Operating Profit of $33 million; Adjusted Operating Profit of $50 million FQ4 Operating Loss of $2 million; Adjusted Operating Income of $6 million FQ4 Orders +29% Sequentially and +17% YoY; Year-end Product Backlog of $342 million up 8% FY2025 Operating Cash Flow +55% to $98 million; Year-end Cash Balance of $128 million Business and Digital Transformation on Track; Reconfirming Three Year Forward Objectives of 7-10% Sales Growth, 10-12% operating margin, 17-20% ROIC BROOKINGS, S.D., June 25, 2025 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ:DAKT) ('Daktronics,' the 'Company,' 'we,' 'our,' or 'us'), the leading U.S.-based designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide, today reported results for its fiscal year and fourth quarter ended April 26, 2025. Fiscal Q4 and full year 2025 financial highlights: Q4 sales of $172.6 million and full year 2025 sales of $756.5 million compared to $215.9 million and record sales of $818.1 million at the end of Q4 and full year 2024, respectively. On a sequential basis from the seasonally slower Q3, Q4 sales rose 15.4% Q4 gross profit as a percentage of sales of 25.0% compared to 25.7% in the year-earlier period; full year gross profit as a percentage of net sales of 25.8% decreased as compared to 27.2% for fiscal 2024 Q4 operating loss of $1.7 million compared to a profit of $19.4 million in the year-earlier period; adjusted operating income(1) was $5.8 million after excluding $7.5 million related to business and digital transformation consultant costs, legal costs associated with special corporate governance matters, and management transition costs; full-year operating income was $33.1 million compared to a record $87.1 million in fiscal 2024; full-year adjusted operating income was $49.6 million(1) after excluding $16.5 million related to business and digital transformation consultant costs, legal costs associated with special corporate governance matters, and management transition costs Q4 net loss of $9.4 million, compared to income of $2.5 million in the year-earlier period; adjusted net income(1) was $8.8 million for the quarter after excluding a provision for credit losses on affiliate loans, the non-operating non-cash debt fair value adjustment, and tax impacted operating expense adjustments; full-year net loss was $10.1 million, compared to income of $34.6 million in fiscal 2024; adjusted net income(1) was $40.1 million for full-year fiscal 2025 after excluding a non-cash allowance for credit loss on affiliate loans, the non-operating non-cash debt fair value adjustment, and tax impacted operating expense adjustments Q4 product and service orders of $240.7 million(2) increased 17.0% from $205.8 million in the year-ago period; full-year product and service orders were $781.3 million(1) up 5.6% from $740.2 million in fiscal 2024 Product order backlog was $341.6 million at April 26, 2025 compared to $316.9 million a year ago due to the robust increase in orders during Q4 of fiscal 2025(2) Q4 cash flows from operations of $22.9 million and $97.7 million for full year fiscal 2025, compared to $9.5 million and $63.2 million in the same periods a year earlier, respectively (1) Adjusted Operating Income and Adjusted Net Income are measures not defined by accounting principles generally accepted in the United States of America ("GAAP"). These non-GAAP measures are used to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting this non-GAAP financial measurement provides investors with a consistent way to analyze our performance. For more information, see the supplemental calculation contained later in this release. (2) Orders and backlog metrics are non-GAAP measures, and our methodology for determining orders and backlog may vary from the methodology used by other companies in determining their orders and backlog amounts. For more information related to backlog, see Part I, Item 1. Business of our Annual Report on Form 10-K for the fiscal year ended April 26, 2025. Brad Wiemann, Daktronics' Interim President and Chief Executive Officer, commented, 'The Company embarked on its business transformation in fiscal 2025. A rigorous analysis and planning phase of this transformation was completed with a detailed implementation plan of action designed to support ambitious sales growth, margin improvements and top quartile ROIC targets. New orders reflect strong growth, especially in our International business unit, demonstrating continued market adoption of digital display technology and a comprehensive line of products and services. We also improved contribution margin in our Commercial and Transportation segments through better alignment of capacity to demand, lower manufacturing costs and other operating efficiencies during the year. The 54.5 percent growth in full-year cash flow generated from operations in part reflected inventory efficiency initiatives and value-based pricing increases implemented as part of the business transformation effort.' Business Transformation Update During fiscal 2025, the Company embarked on a business transformation program to achieve and sustain a higher profit growth trajectory. The investment in this program began to realize benefits in the last four months of fiscal 2025 through initiatives to reprice products to their intrinsic value to customers, raise inventory efficiency and turnover as well as leverage the Company's purchasing power to improve input costs to get to market quicker and more efficiently. The Company's increased focus on working capital management has additionally reduced accounts receivable and contract assets. In the first quarter fiscal 2026, Daktronics rolled out its Service software system, a major milestone, which will benefit the Company in streamlining processes and enhancing customer experiences through better service management and enablement of self-service options. Outlook and Tariff Backdrop The tariff environment remains highly uncertain and fluid. Since the announcement of reciprocal tariffs on April 2, 2025, tariff rates have fluctuated, including periods of increases, reductions, and temporary suspensions. Given this high degree of uncertainty with respect to tariff rates, effectiveness, exceptions and competitive reaction, Daktronics cannot reliably determine the ultimate tariff impact at this time. Daktronics remains agile and is able to implement certain measures to mitigate tariff impacts, though offsets may not be immediate. These measures include: Selective price adjustments and escalation clauses built into contracts Supply chain flexibility on many components A global manufacturing footprint that affords flexibility, including shifting production to a Daktronics lower-tariff international facility, potentially reshoring production to the U.S, or a mix of both depending on specific product cost, certainty of price or customer preference A strong and developing international growth opportunity that can further diversify the revenue base to reduce exposure to U.S.-based revenue The Company continues to focus on proactively managing the areas of the business within our control to generate profitable growth over the long term Mr. Wiemann added, 'As we enter fiscal 2026, our transformation efforts ensure we are well-positioned to capitalize on increasing market demand. Our market leadership, technological superiority, and high-quality value-based selling proposition set us apart. Our tiered product offering, supply and manufacturing capabilities, supported by a strengthened balance sheet, further enhance our competitive edge. 'Additionally, our three-year transformation plan includes expanding our presence in indoor markets, enhancing the services we offer, and focusing on our highest-growth and most profitable sales channels. We are on track to meet the financial objectives tied to this plan.' Fourth Quarter and Year to Date Results Howard Atkins, Daktronics' Acting Chief Financial Officer, commented, 'Following a record revenue year in fiscal 2024 and then an initial softness in order flows in early fiscal 2025, our teams worked to successfully drive order growth in the second half of fiscal 2025, with Q4 orders up 17.0 percent over the comparable quarter of fiscal 2024. Although net sales were not as high as orders in Q4, the lag between order growth and net sales sets the stage for solid growth in revenue as projects begin in fiscal 2026.' Growth in orders in the fourth quarter of fiscal 2025 was broadly led by strong demand in the Commercial, High School Park and Recreation, and International business units; on a sequential basis, orders increased 28.8 percent driven by strong demand across all business units. Orders for the full fiscal 2025 year increased 5.6 percent as compared to fiscal 2024 for the similar reasons in the same business units. Net sales for the fourth quarter of fiscal 2025 decreased by 20.1 percent as compared to the fourth quarter of fiscal 2024; on a sequential basis, net sales increased 15.4 percent. Net sales for fiscal 2025 decreased 7.5 percent as compared to fiscal 2024. The decrease in sales was the result of lower volumes in each business unit, primarily driven by the Live Events business unit due to order timing and buildable backlog. Gross profit as a percentage of net sales decreased to 25.0 percent for the fourth quarter of fiscal 2025 as compared to 25.7 percent in the fourth quarter of fiscal 2024. Gross profit as a percentage of net sales decreased to 25.8 percent for fiscal 2025 as compared to 27.2 percent in the prior year. The year-over-year gross profit decrease is attributable to sales mix differences between periods and a lower sales volume during fiscal 2025 as compared to fiscal 2024. Operating expenses for the fourth quarter of fiscal 2025 were $44.9 million compared to $36.0 million for the fourth quarter of fiscal 2024, an increase of 24.8 percent. Operating expenses were $162.4 million for the full fiscal 2025 year as compared to $135.3 million for the full fiscal 2024 year, an increase of 20.0 percent. The increase in operating expenses for the year was attributable to $4.4 million related to investments in staffing resources to support information technology and digital transformation plans. Additionally, the increase is due to $16.5 million unique expenses in the year which included $7.1 million in strategic and digital transformation initiatives, $6.8 million for corporate governance matters including redomiciling and shareholder relations legal and advisory costs, and $2.6 million for management transition. The above changes resulted in a negative operating margin of 1.0 percent for the fourth quarter of fiscal 2025 compared to a positive operating margin of 9.0 percent for the fourth quarter of fiscal 2024. Operating margin was 4.4 percent for fiscal 2025 as compared to 10.6 percent for fiscal 2024. The increase in interest (expense) income, net for the fourth quarter of fiscal 2025 compared to the same period one year ago was primarily due to the increase in average cash balances on which interest was earned during the year. For the fourth quarter and for the fiscal 2025, the change in fair value of the convertible note was a non-cash benefit of $2.8 million and a non-cash charge of $22.5 million, respectively. In the fourth quarter and for fiscal 2024, the Company recorded non-cash charges for fair value changes of the convertible note of $5.0 million and $16.6 million, respectively. The fair value changes were primarily caused by forced conversion of the entire Convertible Note in the third and fourth quarters of fiscal 2025 and changes in stock price over the fair value measurement periods. In fiscal 2025, the Company did not record any impairment charges for investments in affiliates, as compared to $5.3 million and $6.4 million for the fourth quarter and fiscal 2024. During the fourth quarter of fiscal 2025, a provision for possible credit losses of $15.5 million was recorded. No such loss was recorded in fiscal 2024. The Company's effective tax rate for fiscal 2025 was negative 73.0 percent. The effective income tax rate for fiscal 2025 was primarily impacted due to the convertible note fair value adjustment to expense that is not deductible for tax purposes. Additional other items impacting the rate were valuation allowances on equity investments, state taxes, as well as a write-down of deferred taxes related to debt issuance costs on the conversion of the convertible note. The effective tax rate for fiscal 2024 was 35.9 percent. The effective income tax rate for fiscal 2024 was primarily impacted due to the fair value adjustment to the convertible note that is not deductible for tax purposes. Additional other items impacting the rate were valuation allowances on equity investments, state taxes, as well as prior year provision to return adjustments reduced in part by tax benefits from permanent tax credits. Balance Sheet and Cash Flow Balance sheet quality was further strengthened in fiscal 2025. Cash, restricted cash and marketable securities totaled $127.5 million at April 26, 2025, and $12.0 million of long-term debt was outstanding as of that date. The long-term debt includes the face value of the debt of $12.4 million, net of $0.4 million of debt issuance costs. There were no draw-downs on the asset-based revolving credit facility during fiscal 2025 and $32.9 million was available to draw at April 26, 2025. We issued 4.0 million shares to convert the 9.0 percent convertible note payable and repurchased 2.1 million shares for a total of $29.5 million shares purchased at a weighted average cost of approximately $14.23 per share. In fiscal year 2025, cash flow generated from operations was $97.7 million, of which $19.5 million was used for purchases of property and equipment and $29.5 million for stock repurchase. At the end of the fiscal 2025 fourth quarter, the working capital ratio was 2.2 to 1. Inventory levels dropped 23.3 percent since the end of the 2024 fiscal year on April 27, 2024, in part due to the business transformation initiatives to optimize inventory levels. Management's focus remains on managing working capital to fund the expected growth of the Company with its current sources of liquidity. Webcast Information The Company will host a conference call and webcast to discuss its financial results today at 10:00 a.m. (Central Time). This call will be broadcast live at where related presentation materials will also be posted prior to the conference call. A webcast will be available for replay shortly after the event. About Daktronics Daktronics has strong leadership positions in, and is the world's largest supplier of, large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The Company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, and one International business unit. For more information, visit the Company's website at: Safe Harbor Statement Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws. All statements, other than historical facts, included or incorporated in this presentation could be deemed forward-looking statements, particularly statements that reflect the expectations or beliefs of Daktronics, Inc. (the 'Company,' 'Daktronics,' 'we,' or 'us') concerning future events or our future financial performance. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by discussions of strategy, plans, or intentions or by the use of words such as 'may,' 'would,' 'could,' 'should,' 'will,' 'expect,' 'estimate,' 'anticipate,' 'believe,' 'intend,' 'plan,' 'forecast,' 'project,' 'predict,' 'potential,' 'continue,' or 'intend,' the negative or other variants of such terms, or other comparable terminology. The Company cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations as a result of various factors, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation, the imposition of tariffs, trade wars, the availability and costs of raw materials, components, and shipping services, geopolitical and governmental actions, and other risks described in the Company's Annual Report on Form 10-K for its 2024 fiscal year (the 'Form 10-K') and in other reports filed with or furnished to the U.S. Securities and Exchange Commission (the 'SEC') by the Company. You should carefully consider the trends, risks, and uncertainties described in this presentation, the Form 10-K, and other reports filed with or furnished to the SEC by the Company before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties continues or occurs, our business, financial condition, or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. Forward-looking statements are made in the context of information available as of the date of this news release and are based on our current expectations, forecasts, estimates, and assumptions. The Company undertakes no obligation to update or revise such statements to reflect circumstances or events occurring after this presentation except as may be required by applicable law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. For more information contact:INVESTOR RELATIONS:Howard Atkins, Acting Chief Financial OfficerTel (605) 692-0200Investor@ LHA Investor Relations Carolyn Capaccio / Jody Burfening DAKTIRTeam@ Daktronics, Inc. and SubsidiariesConsolidated Statements of Operations(in thousands, except per share amounts)(unaudited) Three Months Ended Year Ended April 26, 2025 April 27, 2024 April 26, 2025 April 27, 2024 Net sales $ 172,551 $ 215,880 $ 756,477 $ 818,083 Cost of sales 129,406 160,501 560,990 595,640 Gross profit 43,145 55,379 195,487 222,443 Operating expenses: Selling 15,200 15,114 60,011 56,954 General and administrative 19,727 11,555 63,498 42,632 Product design and development 9,958 9,283 38,860 35,742 44,885 35,952 162,369 135,328 Operating (loss) income (1,740 ) 19,427 33,118 87,115 Nonoperating income (expense): Interest income (expense), net 637 (466 ) 1,347 (3,418 ) Change in fair value of convertible note 2,848 (4,980 ) (22,521 ) (16,550 ) Other expense and debt issuance costs write-off, net (15,183 ) (6,814 ) (17,795 ) (13,096 ) (Loss) income before income taxes (13,438 ) 7,167 (5,851 ) 54,051 Income tax (benefit) expense (4,013 ) 4,649 4,270 19,430 Net (loss) income $ (9,425 ) $ 2,518 $ (10,121 ) $ 34,621 Weighted average shares outstanding: Basic 49,516 46,257 47,587 45,901 Diluted 49,516 46,872 47,587 46,543 (Loss) earnings per share: Basic $ (0.19 ) $ 0.05 $ (0.21 ) $ 0.75 Diluted $ (0.19 ) $ 0.05 $ (0.21 ) $ 0.74 Daktronics, Inc. and SubsidiariesConsolidated Balance Sheets(in thousands)(unaudited) April 26, 2025 April 27, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 127,507 $ 81,299 Restricted cash — 379 Accounts receivable, net 92,762 117,186 Inventories 105,839 138,008 Contract assets 41,169 55,800 Current maturities of long-term receivables 2,437 298 Prepaid expenses and other current assets 8,520 8,531 Income tax receivables 3,217 448 Total current assets 381,451 401,949 Property and equipment, net 73,884 71,752 Long-term receivables, less current maturities 1,030 562 Goodwill 3,188 3,226 Intangibles, net 568 840 Debt issuance costs, net 1,289 2,530 Right of use, investment in affiliates, and other assets 9,378 21,163 Deferred income taxes 32,104 25,862 TOTAL ASSETS $ 502,892 $ 527,884 Daktronics, Inc. and SubsidiariesConsolidated Balance Sheets (continued)(in thousands)(unaudited) April 26, 2025 April 27, 2024 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 1,500 $ 1,500 Accounts payable 46,669 60,757 Contract liabilities 69,050 65,524 Accrued expenses 41,705 43,028 Warranty obligations 12,706 16,540 Income taxes payable 375 4,947 Total current liabilities 172,005 192,296 Long-term warranty obligations 23,124 21,388 Long-term contract liabilities 18,421 16,342 Other long-term obligations 6,839 5,759 Long-term debt, net 10,487 53,164 Deferred income taxes 85 143 Total long-term liabilities 58,956 96,796 STOCKHOLDERS' EQUITY: Preferred Shares, $0.00001 par value, authorized 5,000 shares; no shares issued and outstanding — — Common stock, $0.00001 par value, authorized 115,000 shares; 53,030 and 48,121 shares issued as of April 26, 2025 and April 27, 2024, respectively — — Additional paid-in capital 189,940 117,571 Retained earnings 127,910 138,031 Treasury stock, at cost, 3,979 and 1,907 shares as of April 26, 2025 and April 27, 2024, respectively (39,759 ) (10,285 ) Accumulated other comprehensive loss (6,160 ) (6,525 ) TOTAL STOCKHOLDERS' EQUITY 271,931 238,792 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 502,892 $ 527,884 Daktronics, Inc. and SubsidiariesConsolidated Statements of Cash Flows(in thousands)(unaudited) Year Ended April 26, 2025 April 27, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (10,121 ) $ 34,621 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 19,547 19,291 (Gain) loss on sale of property, equipment and other assets (156 ) 44 Share-based compensation 2,944 2,090 Equity in loss of affiliates 3,053 3,764 Allowance for credit losses on affiliate loan 15,480 — (Recovery) provision for doubtful accounts, net (644 ) 373 Deferred income taxes, net (6,300 ) (9,069 ) Non-cash impairment charges — 6,359 Change in fair value of convertible note 22,521 16,550 Debt issuance costs write-off — 3,353 Change in operating assets and liabilities 51,389 (14,135 ) Net cash provided by operating activities 97,713 63,241 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (19,494 ) (16,980 ) Proceeds from sales of property, equipment and other assets 277 174 Proceeds from sales or maturities of marketable securities — 550 Purchases of equity and loans to equity investees (4,565 ) (5,050 ) Net cash used in investing activities (23,782 ) (21,306 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on notes payable — 41,172 Payments on notes payable (2,108 ) (19,434 ) Debt issuance costs — (7,205 ) Principal payments on long-term obligations (414 ) (410 ) Payments for common shares repurchased (29,474 ) — Proceeds from exercise of stock options 5,153 1,302 Tax payments related to RSU issuances (606 ) (303 ) Net cash (used in) provided by financing activities (27,449 ) 15,122 EFFECT OF EXCHANGE RATE CHANGES ON CASH (653 ) (69 ) NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 45,829 56,988 CASH, CASH EQUIVALENTS AND RESTRICTED CASH: Beginning of period 81,678 24,690 End of period $ 127,507 $ 81,678 Daktronics, Inc. and SubsidiariesNet Sales and Orders by Business Unit(in thousands)(unaudited) Three Months Ended Twelve Months Ended April 26,2025 April 27,2024 DollarChange PercentChange April 26,2025 April 27,2024 DollarChange PercentChange Net Sales: Commercial $ 40,589 $ 38,998 $ 1,591 4.1 % $ 156,203 $ 161,626 $ (5,423 ) (3.4 )% Live Events 59,597 104,906 (45,309 ) (43.2 ) 291,484 338,508 (47,024 ) (13.9 ) High School Park and Recreation 40,477 36,409 4,068 11.2 165,921 170,349 (4,428 ) (2.6 ) Transportation 18,304 24,173 (5,869 ) (24.3 ) 81,061 85,390 (4,329 ) (5.1 ) International 13,584 11,394 2,190 19.2 61,808 62,210 (402 ) (0.6 ) $ 172,551 $ 215,880 $ (43,329 ) (20.1 )% $ 756,477 $ 818,083 $ (61,606 ) (7.5 )% Orders: Commercial $ 48,930 $ 34,084 $ 14,846 43.6 % $ 176,583 $ 135,251 $ 41,332 30.6 % Live Events 84,225 94,755 (10,530 ) (11.1 ) 283,780 321,191 (37,411 ) (11.6 ) High School Park and Recreation 59,263 44,581 14,682 32.9 176,097 148,505 27,592 18.6 Transportation 23,496 20,698 2,798 13.5 72,315 80,107 (7,792 ) (9.7 ) International 24,769 11,667 13,102 112.3 72,572 55,117 17,455 31.7 $ 240,683 $ 205,785 $ 34,898 17.0 % $ 781,347 $ 740,171 $ 41,176 5.6 %Reconciliation of Free Cash Flow*(in thousands)(unaudited) Twelve Months Ended April 26, 2025 April 27, 2024 Net cash provided by operating activities $ 97,713 $ 63,241 Purchases of property and equipment (19,494 ) (16,980 ) Proceeds from sales of property and equipment 277 174 Free cash flow $ 78,496 $ 46,435 * In evaluating its business, Daktronics considers and uses free cash flow as a key measure of its operating performance. The term free cash flow is not defined under accounting principles generally accepted in the United States of America ("GAAP") and is not a measure of operating income, cash flows from operating activities or other GAAP figures and should not be considered alternatives to those computations. Free cash flow is intended to provide information that may be useful for investors when assessing period to period results. Reconciliation of Adjusted Operating Income*(in thousands)(unaudited) Three Months Ended Twelve Months Ended April 26,2025 Percent of net sales April 27,2024 Percent of net sales April 26,2025 Percent of net sales April 27,2024 Percent of net sales Operating (loss) income (GAAP Measure) $ (1,740 ) (1.0 )% $ 19,427 9.0 % $ 33,118 4.4 % $ 87,115 10.6 % Corporate governance expenses 3,881 2.3 — — 6,825 0.9 — — Management transition 2,614 1.5 — — 2,614 0.3 — — Consultant related expenses associated with business transformation initiatives 1,031 0.6 — — 7,085 0.9 — — Adjusted operating income (non-GAAP measure) $ 5,786 3.4 % $ 19,427 9.0 % $ 49,642 6.6 % $ 87,115 10.6 % * In evaluating its business, Daktronics considers and uses adjusted operating income as a key measure of its operating performance. The term adjusted operating income is not defined under GAAP and is not a measure of operating income, cash flows from operating activities, or other GAAP figures and should not be considered alternatives to those computations. We define non-GAAP adjusted operating income as operating (loss) income plus unique expenses, for example, expenses related to business and digital transformation consultant costs and legal costs associated with special corporate governance matters. Management believes non-GAAP adjusted operating income is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of non-GAAP adjusted operating income may not be comparable to similarly titled definitions used by other companies. The table above reconciles non-GAAP adjusted operating income to comparable GAAP financial measures. Reconciliation of Adjusted Net Income*(in thousands)(unaudited) Three Months Ended Twelve Months Ended April 26, 2025 April 27, 2024 April 26, 2025 April 27, 2024 Net (loss) income $ (9,425 ) $ 2,518 $ (10,121 ) $ 34,621 Change in fair value of convertible note (2,848 ) 4,980 22,521 16,550 Allowance for credit losses on affiliate loan 15,480 — 15,480 — Corporate governance expenses, net of taxes 2,872 — 5,050 — Management transition, net of taxes 1,934 — 1,934 — Consultant related expenses associated with business transformation initiatives, net of taxes 763 — 5,243 — Debt issuance costs expensed due to fair value of convertible note, net of taxes — — — 2,149 Equity method affiliates impairment — 5,268 — 6,359 Adjusted net income $ 8,776 $ 12,766 $ 40,107 $ 59,679 * Adjusted net income using 26% tax rate. We disclose adjusted net income as a non-GAAP financial measurement in order to report our results exclusive of items that are not core to our operating business. We believe presenting this non-GAAP financial measurements provide investors with a consistent way to analyze our performance. Reconciliation of Long-term Debt(in thousands)(unaudited) Long-term debt consists of the following: April 26, 2025 April 27, 2024 Mortgage 12,375 13,875 Convertible note — 25,000 Long-term debt, gross 12,375 38,875 Debt issuance costs, net (388 ) (761 ) Change in fair value of convertible note — 16,550 Current portion (1,500 ) (1,500 ) Long-term debt, net $ 10,487 $ 53,164
Newsweek
5 days ago
- Business
- Newsweek
US Home Prices Break Records Despite Cooling
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. U.S. home sale prices reached a record high during the four weeks ending June 15, hitting a peak of $396,500, according to the latest Redfin data, up 1 percent from a year earlier. It might be a discouraging figure for prospective homebuyers who have been struggling for years now with sky-high prices and historically elevated mortgage rates. But while home prices are still holding steady, experts do not expect them to continue rising for long, as new listings continue rising and inventory grows across the country. Why Are Home Prices Still Climbing? The main reason why home prices continue rising is that there is still a massive imbalance between supply and demand in the country, even if inventory has finally started rebounding over the past year. According to an estimate by the Washington-based think-tank Brookings, the U.S. housing market was short by nearly 5 million homes in 2024. In an aerial view, single-family homes in a neighborhood in Thousand Oaks, California, on April 18, 2025. In an aerial view, single-family homes in a neighborhood in Thousand Oaks, California, on April 18, while prices are still inching up, they are doing so at a much slower pace than they were over the previous five years, which saw double-digit year-over-year increases, or at the beginning of the year, when it was around 5 percent. In fact, we could say that they are now flatlining. Buyers are also negotiating and obtaining significant discounts over sellers' original asking price; according to Redfin data, the median sale price of a typical U.S. home is roughly $26,000 lower than the median asking price of $422,238. This is happening because buyers are gaining the upper hand in a market where sellers outnumber them by roughly 500,000, according to a recent Redfin report. While many sellers have decided to stop waiting for mortgage rates to come down to sell their properties, many buyers are being kept on the sidelines by high prices and monthly payments, and are leaving those listings sitting idle on the market for increasingly long periods of time. New listings of homes for sale were up 4.4 percent in the four weeks ending June 15 compared to a year earlier, while total listings were up 14.5 percent. Pending sales, during the same time frame, were down 1.5 percent year-over-year, and mortgage-purchase applications were down 3 percent week-over-week. The result is that sellers, especially those who approached the market hoping to get as much as they would have for their home during the pandemic homebuying frenzy, are having to meet buyers where they are at, lowering their asking price. "I'm explaining to sellers more and more that we need to be strategic in our pricing strategy because homes that are overpriced, even slightly, are likely to sit on the market and invite buyers to negotiate," said Kelly Connally, a Redfin Premier agent in Tulsa, Oklahoma, in a press release. "Pricing is most important, but with fewer buyers than usual out there, sellers should also make sure their home is in excellent condition and be ready to make repairs upon inspection," Connally added. "There are a few exceptions: homes in desirable locations that are in perfect condition are still hot and typically sell at or above asking price." When Will Prices Finally Come Down? Experts believe that, by the end of the year, home prices will finally start falling, even if modestly. Redfin expects home prices to decline by 1 percent year-over-year by the end of 2025, with parts of the country that have experienced the biggest surges in inventory reporting even steeper price drops. "The key for price changes will be to track growing inventory and time on market, especially relative to their pre-pandemic levels when the market was more balanced," senior economist Jake Krimmel previously told Newsweek. "Markets with high inventory and longer time on market are more likely to see price corrections. Overall, we expect a slow rebalancing rather than a sharp correction—unless economic conditions shift more dramatically."
Yahoo
6 days ago
- Climate
- Yahoo
Extreme Heat Breaking Records And Asphalt In South Dakota
The South Dakota Highway Patrol has asked drivers to avoid Interstate 29 south of Brookings, South Dakota, where triple digit temperatures have caused the asphalt to buckle up and crack. A heat wave is rippling through the country, with record breaking temperatures in Minnesota, Wyoming, Utah, and South Dakota.
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Daktronics, Inc. to Release Fourth Quarter and Fiscal 2025 Financial Results
BROOKINGS, S.D., June 10, 2025 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ-DAKT), announced today it will release its fourth quarter and fiscal 2025 financial results on Wednesday, June 25, 2025 before the market opens. The Company will host a conference call and webcast for all interested parties at 10:00 AM CT that day. Brad Wiemann, Interim Chief Executive Officer, and Howard Atkins, Acting Chief Financial Officer, will host the conference call, which will contain forward-looking statements and other material information. To listen to the earnings call by phone, participants must pre-register at Daktronics Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing access to the live call. Related slide presentation materials will also be posted to Daktronics' Investor Relations website prior to the conference call. A recording will be archived and available for replay later on the site. The conference call may be accessed by a *dial-in number or via the Internet as follows: Wednesday, June 25, 2025 at 10:00 AM CT Dial-In: Register here Webcast: *Note: To join by phone, participants will now have to register at the link provided. You will then receive dial-in information and a unique PIN to allow access to the call. ABOUT DAKTRONICS Daktronics has strong leadership positions in, and is the world's largest supplier of, large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The Company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, and one International business unit. For more information, visit the company's website at: SAFE HARBOR STATEMENT Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws. All statements, other than historical facts, included or incorporated in this presentation could be deemed forward-looking statements, particularly statements that reflect the expectations or beliefs of Daktronics, Inc. (the 'Company,' 'Daktronics,' 'we,' or 'us') concerning future events or our future financial performance. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by discussions of strategy, plans, or intentions or by the use of words such as "may," "would," "could," "should," "will," "expect," "estimate," "anticipate," "believe," "intend," "plan," "forecast," "project," 'predict,' 'potential,' 'continue,' or 'intend,' the negative or other variants of such terms, or other comparable terminology. The Company cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations as a result of various factors, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation, the imposition of tariffs, trade wars, the availability and costs of raw materials, components, and shipping services, geopolitical and governmental actions, and other risks described in the Company's Annual Report on Form 10-K for its 2024 fiscal year (the 'Form 10-K') and in other reports filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC") by the Company. You should carefully consider the trends, risks, and uncertainties described in this presentation, the Form 10-K, and other reports filed with or furnished to the SEC by the Company before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties continues or occurs, our business, financial condition, or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. Forward-looking statements are made in the context of information available as of the date of this news release and are based on our current expectations, forecasts, estimates, and assumptions. The Company undertakes no obligation to update or revise such statements to reflect circumstances or events occurring after this presentation except as may be required by applicable law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
