Daktronics, Inc. · NASDAQ:DAKT
Daktronics — Investor Presentation (January 2024)
37 slides from Daktronics's investor presentation, January 2024
Slide 1: Investor Presentation
DYNAMIC MESSAGE SIGNS Investor Presentation January 2024 NASDAQ: DAKT CONTROL SYSTEMS
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Compa
Slide 3: Company Highlights
COMPANY HIGHLIGHTS Compelling Q2 FY2024 TTM KPIs(1) Daktronics provides best-in-class audio-video displays, message displays and scoreboards to inform, entertain, and persuade audiences ~$827 Million #1 Largest North American LED video display Growing American brand by Sales provider(2) revenue for
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS ❑ A global industry leader in best-in-class video communication displays and control systems ❑ Only US manufacturer of scale with global footprint and servicing by geographic market ❑ Technology leadership with high-quality products, high-touch service ❑ Large, growing domestic
Slide 5: Interconnected Systems to Inform Audiences, Entertain and Engage Fans
INTERCONNECTED SYSTEMS TO INFORM AUDIENCES, ENTERTAIN AND ENGAGE FANS Live Events International Video displays for large Video displays for large sports/entertainment venues, sports & live entertainment advertising, and transportation venues Commercial High School Park and Billboards & video display
Slide 6: Revenue and Gross Profit Breakout (Q2 2024 TTM)
REVENUE and GROSS PROFIT BREAKOUT (Q2 2024 TTM) ▪ Live Events Q2 2024 TTM Q2 2024 TTM • Complex, audience, fan-driven sale NET SALES GROSS PROFIT ($US MILLIONS) • 26.5% Gross Profit, 39% of Net Sales International* International* ▪ Commercial Transportation 9% Transportation $14.0 9% • On-premise an
Slide 7: Global Footprint
GLOBAL FOOTPRINT : Sales and Service : Manufacturing Facility OFFICES Products in 120+ Countries throughout the world
Slide 8: Durable LED Market Opportunity
DURABLE LED MARKET OPPORTUNITY Increased Global Demand Bolsters Pipeline & Stable Cash Flows ($US Billions) Worldwide LED Video Display Market by Type (5) • 2023 annual LED market reached $9.3 Billion – YoY increase of 9.4% from 2022 UNPP LED (1) NPP LED (2) Standard (3) Monochrome/Tricolour LED • G
Slide 9: Industry Leader
Vidoo Walle x = : | : , : DAKTRONICS
Slide 10: Full-Service – Design, Manufacture, Install – Lifetime Support
FULL-SERVICE – DESIGN, MANUFACTURE, INSTALL – LIFETIME SUPPORT ▪ Continuous service and support post- ▪ Design flexibility, integrated systems sale fulfills critical needs and drives repeat business from top customers offerings ▪ Long-term quality and reliability ▪ Support through lifetime of displa
Slide 11: Global Relationships with Repeat Customers
GLOBAL RELATIONSHIPS WITH REPEAT CUSTOMERS ▪ Demonstrated success cultivates long-term relationships for replacement cycles and additional sales opportunities ▪ Grow profitably in core and adjacent customer types and geographies through strategic offering expansion tailored to customer needs ▪ Deman
Slide 12: Strategic Execution
STRATEGIC EXECUTION Actions taken in past three years: - Diversified supply chain - Built inflation benchmarks into contracts and processes - Improved operating processes - Aligned cost base for demand - Normalizing inventory levels - Completed financing Solidifying Foundation to Drive Growth: Maxim
Slide 13: Developing and Applying Future Technologies
Developing and Applying Future Technologies Today: - Narrow Pixel Pitch (NPP) - High Resolution Outdoor - Event Control - Live 3D rendering - Cloud based Control Platform Future potential technologies: - MicroLED – Narrow Pixel Pitch - Reflective – low power displays - Intelligent Power Management -
Slide 14: FY2024 YTD Financial Highlights
FY2024 YTD Financial Highlights ($ in thousands, except per share data) Six Months Ended 28-Oct 29-Oct Percent 2023 2022 Change Record first half of profitability Orders $ 342,324 $ 353,030 -3.0% - Supply chain stabilization Net sales 431,899 359,359 20.2% - Utilization of increased capacity Gross p
Slide 15: Investment Highlights
INVESTMENT HIGHLIGHTS ❑ A global industry leader in best-in-class video communication displays and control systems ❑ Only US manufacturer of scale with global footprint and servicing by geographic market ❑ Technology leadership with high-quality products, high-touch service ❑ Large, growing domestic
Slide 16: Questions?
QUESTIONS? WEC Energy Group DAKTRONICS
Slide 17: Appendix
APPENDIX Lusail Boulevard – Saudi Arabia
Slide 18: Live Events Business Unit
LIVE EVENTS BUSINESS UNIT Minnesota Twins
Slide 19: Live Events
LIVE EVENTS » Video display solutions for large sports venues and live entertainment facilities • Professional sports • College and university • Arenas » Competition Climate Pledge Arena • Samsung, SNA Displays, Leyard, ANC, Yaham, Mitsubishi, and others • Asian competition through U.S. integrators
Slide 20: Live Events Demand Drivers
LIVE EVENTS Demand Drivers » Facility increased spend to: • Enhance attendee event experience • Revenue source from advertising • Competitive nature to outperform other facilities • Attract athletes » Lower product costs and technological advances, driving expansion of marketplace » High definition
Slide 21: High School Park and Recreation (HSPR) Business Unit
HIGH SCHOOL PARK AND RECREATION (HSPR) BUSINESS UNIT Jackson Academy, MS
Slide 22: HSPR
HSPR » Video and scoring systems and message centers to • Elementary and high schools, junior colleges • Park and recreation departments » Primary funding is through local sponsors and advertisers Milbank High School, SD Perry Central High School, KY
Slide 23: HSPR Growth Drivers
HSPR »Growth Drivers • Larger more sophisticated displays in sports venues • Revenue generation • Communication medium • New construction/replacement cycles • Offerings for academic curriculum usage and mobile scoring solutions »Competitors • Fair-Play by Translux, Scorevision, Translux, Nevco, Spec
Slide 24: Commercial Business Unit
COMMERCIAL BUSINESS UNIT Lakeside Casino, IA Astral Media Outdoor, Canada Caliber Car Wash, SC
Slide 25: Commercial
COMMERCIAL » Sales channel focus • Third party advertising/Out of Home Advertising (OOH) • On-premise advertising (retail) • AV Integrator and Spectacular (custom video) » Customers include sign and billboard Software One, WI companies, national retailers, quick-serve restaurants, casinos, shopping
Slide 26: Commercial Growth Drivers
COMMERCIAL » Long-term growth drivers • Market adoption, including National Accounts • Spectacular use to entertain/advertise in unique locations • Effective advertising medium (outdoor and indoor networks) – increased customer foot-traffic for customer Hollywood Casino, OH • Replacement cycle (7-10
Slide 27: Transportation Business Unit
TRANSPORTATION BUSINESS UNIT New Jersey Turnpike Long Island Rail Road, NY
Slide 28: Transportation
TRANSPORTATION » Three niches • Intelligent transportation systems (ITS) • Airports • Mass Transit » Customers include governmental transportation departments, industry contractors, airlines, mass transit, and other related customers Appleton International Airport, WI Transport Infrastructure, Irela
Slide 29: Transportation Growth Drivers
TRANSPORTATION » Long-term growth drivers • Transportation management - increasing traffic demands on constrained infrastructure expanding use of dynamic messaging systems • Governmental funding and investment in infrastructure projects • Infographic communication • Advertising needs Seattle Monorai
Slide 30: International Business Unit
INTERNATIONAL BUSINESS UNIT Mall of Qatar Doha, Qatar
Slide 31: International
INTERNATIONAL Wide range of products coupled with geographic coverage » Commercial video systems » Sports video systems » Digital billboard (OOH) » Architectural lighting » Transportation systems SK Hynix Supex – Gyeonggi-do, Republic of Korea Customers include companies focused on sports, Lusail St
Slide 32: International Growth Opportunities
INTERNATIONAL » Growth opportunities • 3rd party advertising/Out of Home Advertising • Live Events facilities/sports • European/Middle East Hills Estate Mall – Dubai, UAE transportation systems Xin Chang Museum – Beijing, China • Increased geographical coverage » Competitors: Absen, Samsung, Aoto, L
Slide 33: Financial Information
FINANCIAL INFORMATION NASCAR Hall of Fame Rivers Casino Premier Bankcard Charlotte, NC Portsmouth, VA Sioux Falls, SD
Slide 34: FY2024 Second Quarter Financial Highlights
FY2024 SECOND Quarter Financial Highlights ($ in thousands, except per share data) Three Months Ended 28-Oct 29-Oct Percent 2023 2022 Change Second Quarter Highlights Orders $ 183,692 $ 182,807 0.5% - Supply chain stabilization Net sales 199,369 187,439 6.4% - Utilization of increased capacity Gross
Slide 35: FY2023 Annual Financial Highlights
FY2023 Annual Financial Highlights ($ in thousands, except per share data) FY2022 – Twelve Months Ended • Pandemic implications to 26-Apr 30-Apr Percent profitability, with recovery of 2023 2022 Change order volume. Orders $ 680,954 $ 846,071 -19.5% • FY2023 Supply Chain Challenges Net sales 754,196
Slide 36: More about Daktronics
More about Daktronics ✓ 52/53 Week Fiscal Years ending in April 5 YEAR HISTORY and CURRENT FISCAL YEAR ✓ Seasonality to results (Sports/Construction DILUTED EARNINGS PER SHARE season) Fiscal Year Q1 Q2 Q3 Q4 2019 + 0.10 + 0.19 - 0.07 - 0.24 ✓ Video systems comprise a large portion of 2020 + 0.16 + 0
Slide 37: Technology
DYNAMIC MESSAGE SIGNS Technology CONTROL SYSTEMS