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Jul 30, 2022
Daktronics Q1 2023 Earnings Report
Daktronics' Q1 2023 financial performance reflected strong sales growth but was impacted by supply chain challenges and inflationary pressures.
Key Takeaways
Daktronics reported a 18.8% increase in net sales, reaching $171.9 million, driven by increased conversion of backlog to sales. However, the company faced an operating loss of $5.5 million due to inflation and supply chain challenges. Orders remained strong at $170.2 million, although they decreased by 6.3% compared to the previous year's record level.
Net sales reached $171.9 million, the highest quarterly conversion rate since the pandemic began.
Operating loss of $5.5 million was attributed to inflation and supply chain challenges.
Orders totaled $170.2 million, driven by increased activity in the Commercial market.
Product order backlog remained at a historically high level of $469.1 million.
Daktronics
Daktronics
Daktronics Revenue by Segment
Revenue by Segment
Commercial Revenue
CapyFin.comLive Events Revenue
CapyFin.comHigh School, Park & Rec Revenue
CapyFin.comTransportation Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Daktronics anticipates a dynamic and volatile supply chain and tight labor market to persist throughout the fiscal year, constraining capacity and efficiency. The company is aligning orders to capacity, adjusting production schedules, inventory levels, pricing, and capital investments to increase capacity and predictability. Strategic investments in new technologies, resilient supply chains, and key markets are expected to position the company for long-term growth.
Positive Outlook
- Markets continue to be active and show growing demand.
- Order bookings in the first quarter were strong for shopping centers, casinos, and out-of-home advertising display systems in the Commercial business and in multiple sports venues in Live Events.
- Carefully aligning orders to our capacity to best serve our customers and improve profitability.
- Strategically invest in new technologies and solutions.
- Serving our existing customers and growing key markets.
Challenges Ahead
- A dynamic and volatile supply chain and tight labor market to persist throughout this fiscal year.
- Capacity was constrained due to significant and unusual part shortages.
- Challenging labor environment.
- Operating disruptions from COVID-19 related absences.
- Shutdown of our facilities in Shanghai, China due to a government mandated COVID-19 zero tolerance policy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income