Slide 1: Fourth Quarter Fiscal 2018
FOURTH QUARTER FISCAL 2018 NASDAQ: DAKT
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT In addition to statements of fact, this presentation contains forward-looking 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 company’s expectations or b
Slide 3: Daktronics Vision
DAKTRONICS VISION To be the world leader at informing and entertaining audiences through dynamic audio-visual communication systems.
Slide 4: Daktronics Mission
DAKTRONICS MISSION Deliver industry leading value to our customers, by engaging: • our employees through challenging and rewarding opportunities; • developing strategic partnerships with our suppliers; • leveraging our strengths in: product innovation, manufacturing, and service; • while contributin
Slide 5: Around the Globe
: Sales Office : Manufacturing Facility Products in 120+ Countries OFFICES throughout the world AROUND THE GLOBE
Slide 6: World Leader
WORLD LEADER Celebrating our 50th Year! ✓Customer solutions ✓Engineering & Creative talent ✓Global and local focus of customer support ✓Lean Manufacturing ✓Financially strong
Slide 7: 10 Year History Sales & Operating Income %
10 YEAR HISTORY SALES & OPERATING INCOME %
Slide 8: 10 Year History Free-Cash Flow
10 Year History Free-Cash Flow* FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Net cash from operations $ 48,731 $ 43,784 $ 41,346 $ 20,038 $ 50,749 $ 36,199 $ 53,513 $ 13,581 $ 39,573 $ 31,613 Net capital expenditures (18,221) (15,940) (9,148) (16,293) (9,476) (13,281) (17,80
Slide 9: 10 Year History Return to Shareholders
10 Year History Return to Shareholders Total Regular Annualized Special Fiscal Dividend Dividend/ Dividend Dividend/ ✓ Long-term dividend history Year Share Yield Share Payout (see chart to the right) (000’s) 2009 0.090 1.1% - 3,635 2010 0.095 1.2% - 3,874 ✓ Share Repurchase program 2011 0.100 2.5%
Slide 10: More about Daktronics
More about Daktronics ✓ 52/53 Week Fiscal Years ending in April 10 YEAR HISTORY DILUTED EARNINGS PER SHARE ✓ Seasonality to results (Sports/Construction (after adjustment for splits) season) Fiscal Year Q1 Q2 Q3 Q4 2009 + 0.24 + 0.29 + 0.10 + 0.01 ✓ Video systems comprise a large portion of 2010 + 0
Slide 11: FY2018 Fourth Quarter to Date
FY2018 FOURTH QUARTER TO DATE Three Months Ended 28-Apr 27-Apr Percent 2018 2017 Change Orders $ 161,972 $ 178,148 -9.1% Net sales $ 138,177 $ 143,682 -3.8% Gross profit 29,852 33,723 Gross margin 21.6% 23.5% Operating income (5,366) 1,707 -414.4% Operating margin -3.9% 1.2% Net income $ (3,809) $ 9
Slide 12: FY2018 YTD Results
FY2018 YTD RESULTS Twelve Months Ended 28-Apr 27-Apr Percent 2018 2017 Change Orders $ 583,466 $ 613,504 -4.9% Net sales $ 610,531 $ 586,539 4.1% Gross profit 145,669 140,415 Gross margin 23.9% 23.9% Operating income 12,460 15,421 -19.2% Operating margin 2.0% 2.6% Net income $ 5,562 $ 10,342 -46.2%
Slide 13: Business Unit Recap
Business Unit Recap ✓ Live Events, Commercial, Transportation, and High School Park and Recreation, include net sales in the United States and Canada ✓ International net sales include rest of world and are primarily for solutions for large sports venues, spectaculars, third-party advertising, and tr
Slide 14: Live Events Business Unit
LIVE EVENTS BUSINESS UNIT Colorado Rockies
Slide 15: Live Events
LIVE EVENTS » Video display solutions for large sports venues and live entertainment facilities • Professional sports • College and university • Arenas University of South Carolina » Competition • Mitsubishi, Lighthouse, Panasonic, Prismview and others • Asian competition through U.S. integrators
Slide 16: 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 Minnesota Twins » Lower product costs, driving expansion of Los Angeles Angels marketplace » High definition product off
Slide 17: High School Park and Recreation (HSPR)
HIGH SCHOOL PARK AND RECREATION (HSPR) Highlands Ranch High School, Highlands Ranch, CO
Slide 18: 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 East Elementary School , Waynesville, MT
Slide 19: HSPR Growth Drivers and Competitors
HSPR »Growth Drivers • Larger more sophisticated displays in sports venues Midco Aquatics Center, Sioux Falls, SD • Revenue generation • Communication medium • New construction/replacement cycles »Competitors • Formetco, Scorevision, Translux, Nevco, other smaller company manufacturers City of Saint
Slide 20: Commercial Business Unit
COMMERCIAL BUSINESS UNIT Walgreens, Pinal County, AZ Oglethorpe Mall, Savannah, GA
Slide 21: Commercial
COMMERCIAL » Sales channel focus • Third party advertising/Out of Home Advertising (OOH) • On-premise advertising (retail) • Spectacular (custom video) » Primary offerings • Digital billboards • Message centers • Video display systems/display walls • Petroleum displays • Dynamic messaging systems Ho
Slide 22: Commercial Growth Drivers and Competitors
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) • Replacement cycle (7-10 years) • Architectural lighting » Competitors • Message Centers – O
Slide 23: Transportation Business Unit
TRANSPORTATION BUSINESS UNIT Airports Tom Brady Terminal - LAX Nevada Department of Transportation
Slide 24: Transportation
TRANSPORTATION » Three niches • Intelligent transportation systems (ITS) • Airports • Mass Transit » Competitors • Skyline, Ledstar, Telegra, SES-America, Imago, others Intelligent Transit Systems (ITS) Banff National Park – Parks Canada
Slide 25: Transportation Long-Term Growth Drivers
TRANSPORTATION » Long-term growth drivers • Transportation management - increasing traffic demands on constrained infrastructure • Governmental funding and investment in infrastructure projects • Infographic communication • Advertising needs Seattle International Airport Public Transportation Anahei
Slide 26: International Business Unit
INTERNATIONAL BUSINESS UNIT Piccadilly Lights, London
Slide 27: International
INTERNATIONAL Main products » Commercial video systems » Sports video systems » Digital billboard (OOH) » Architectural lighting » Transportation systems Infrastructure » World-wide sales & service offices » International Manufacturing facilities: Mosaic Shanghai • China- architectural lighting and
Slide 28: International Growth Opportunities
INTERNATIONAL » Growth opportunities • 3rd party advertising/Out of Home Advertising • Live Events facilities/sports • European/Middle East transportation systems • Increased geographical coverage » Competitors: Absen, Samsung, Aoto, Leyard, Unilumen, Mitsubishi, Lighthouse, Panasonic, Barco and oth
Slide 29: Looking Ahead
LOOKING AHEAD p @ DAKTRONICS
Slide 30: Achieving Long-Term Profitable Growth: Continued Global Demand
ACHIEVING LONG-TERM PROFITABLE GROWTH Continued Global Demand ✓Continued global market adoption and expansion ➢Retail and public space ➢Out of Home Advertising ➢Venue competition/ HD video for sports ✓Replacement cycle ✓Worldwide economic conditions
Slide 31: Achieving Long-Term Profitable Growth
ACHIEVING LONG-TERM PROFITABLE GROWTH Daktronics provided robust solutions meeting market demand: ✓New product and solutions introductions: ➢ Localized and customer focused products ➢ Narrow Pixel Pitch (Ultra-high resolution) solutions ➢ Enhanced product and control system platforms ✓Professional s
Slide 32: Outlook to Fiscal 2019
OUTLOOK TO FISCAL 2019 Modest revenue growth ✓ International OOH, transportation, market development ✓ Commercial indoor solutions expansion, spectacular demand, replacement cycles, OOH similar demand levels ✓ Transportation opportunity for growth with funding/mass transit/advertising ✓ HSPR continu
Slide 33: Solution Examples
Total Event Control integrated display “HOLE LED MODULE SURFACE-MOUNT LED MODULE very of
Slide 34: Technology
DYNAMIC MESSAGE SIGNS TECHNOLOGY CONTROL SYSTEMS
Slide 35: Questions
Slide 36: 10 Year History Supplemental Information
10 YEAR HISTORY SUPPLEMENTAL INFORMATION