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$DAKT has been chosen to design and manufacture 229 new displays along I-395 for the Virginia Department of Transportation. These displays will reduce commute times and alert motorists on weather conditions, public safety announcements, Amber AlertsTM, roadway incidents, construction information, lane reversal and tolling information.
$DAKT of Brookings, South Dakota has been selected by Turner Construction in San Antonio, Texas, to design, manufacture and install a new multi-display system for the Alamodome. These additions are a part of overall renovations to the Alamodome in preparation for the City of San Antonio's hosting of the 2018 men's college basketball championships.
$DAKT will deliver 16 message signs to the Texas Department of Transportation. These include nine Vanguard VF-2020 walk-in displays and seven Vanguard VF-2420 displays to assist with navigation, Amber AlertsTM, roadway incidents and construction information. The 16 signs are set to ship between November and December of 2017.
Gonzaga University has continued their long-standing relationship with $DAKT of Brookings, South Dakota, by asking the company to manufacture and install 10 new LED displays for multiple sports facilities on campus in Spokane, Washington. Video displays will be installed for basketball, volleyball, baseball and soccer this fall.
CityPlace Doral and The Related Group partnered with $DAKT of Brookings, South Dakota, to design, manufacture and install a large LED video display at their new mixed-use development in Doral, Florida. The display was installed this past spring.
For 4Q17, $DAKT’s gross profit was 23.5% compared to 20.2% in 4Q16. Total warranty as a percentage of sales was 1.7%. Cash and marketable securities totalled $65.6MM at 4Q17-end. The company reported a positive free cash flow of $31MM on a YTD basis. Capex for FY17 totalled $8.7MM. $DAKT made no repurchases of stock during 4Q17.
"As we enter into fiscal 2018, we see the video display business continuing to expand... While competition remains strong across our markets, we expect continued success in growing our business over the long-term," said CEO Reece Kurtenbach, as $DAKT posted 4Q17 results.
In 4Q17, net sales from Commercial segment of $DAKT inched 0.4% up to $35.7MM. Live Events sales were up 2.8% to $57.0MM. High School Park and Recreation net sales slumped 13% to $13.8MM. Net sales from Transportation fell 4.3% to $12.9MM while those from International segment jumped 34.2% to $24.3MM.
$DAKT posted 4Q17 net sales of $143.7MM, up 3.8%. The electronic display board maker turned to profit with net income of $0.9MM from last year's loss of $2.9MM. Earnings were $0.02 per diluted share vs. a loss of $0.07 a share, as orders for the quarter jumped 24.4% to $178.1MM.
$DAKT of Brookings, South Dakota, has been awarded a national cooperative contract to provide scoreboards and electronic signs to government agencies and educational institutions across the nation. $DAKT digital displays will now be available to all members of the Region 4 Services Center, Texas, and all other participants of National IPA.
$DAKT's Commercial business unit orders were $36.7MM, up 21.4% from a year ago. International business unit orders grew 57% to $18.6MM. The results are driven by spectacular niche project, billboard niche and sports stadium project awards in Australia.
$DAKT posted 2Q17 earnings of $9MM, or $0.20 per diluted share, up 181% from a year ago. Net sales increased by 7.8% to $170MM, helped by the timing of large project delivery and increases in demand in the Commercial and International businesses.
Jim Ricchiuti of Needham & Company asks if the company would be seeing more bookings for the indoor business. $DAKT said the work is on cleaning up any final orders for the indoor business, the arenas as football has already been through. And then setting up the pipeline for next year, baseball and then football for the following year.
Jim Ricchiuti of Needham & Company asks if gross margins will come down a bit on 2Q17 from 1Q17 levels. $DAKT said the company had a nice quarter for gross margins and it's hard to predict what's the timing of the revenues, but will be similar to maybe slightly down for 2Q17.
$DAKT said domestically, it saw order activity increase for projects in its spectacular niche of the Commercial business unit. The company's High School Park & Recreation units started the year with record orders in sports applications. $DAKT had positive free cash flow of $4.5MM for 1Q17 compared to a negative $17.2MM free cash flow a year ago.
$DAKT's orders for 1Q17 increased 6.1% from last year. Orders increased in Commercial, International, and High School Park and Recreation business units and decreased in Live Events and Transportation business units. Backlog at end of 1Q17 was $197.9MM, down from $205.5MM last year.