Daktronics Inc. (NASDAQ:DAKT) Q4 2017 Earnings Conference Call - Final Transcript
May 31, 2017 • 11:00 am ET
Good day, ladies and gentlemen, and welcome to the Daktronics Fourth Quarter and Fiscal 2017 Financial Results Conference Call. At this time all participants are in a listen-only mode, later we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the conference over to Sheila Anderson. You may begin.
Thank you, operator. Good morning, everyone. Thank you for participating in our fourth quarter and year-end earnings conference call.
(Forward-Looking Cautionary Statements)
At this time, I would like to introduce Reece Kurtenbach, our Chairman, President and CEO, for a few comments.
Thank you, Sheila. Good morning, everyone. Overall we had a successful fiscal 2017 for Daktronics. We increased in volume in three important categories, orders, sales and profits. Orders included a number of high profile or spectacular projects and larger sport video projects, as well as games for standardized solutions or businesses and schools. Sales exceeded $586 million, an increase of 2.9% as compared to fiscal 2016. The orders and sales volume increases reflect the improved global economic conditions over the year to help with the digital solutions market and fluctuations caused by a large project based business.
International business unit orders increased by 30.1% on a year-to-date basis. This is primarily due to improved global market conditions during fiscal 2016 as compared to 2017 giving confidence for more customers to move forward on projects. We did well in our account-based out of home billboard space and in sports projects like that of Perth Stadium in Australia and commercial spectacular customers like Piccadilly Circus in London. We continue to focus on the transportation segment internationally too with new or enhanced offerings for mass transit and intelligent transportation system applications. Orders increased in High School Park and Recreation business unit year-over-year which is primarily due to a strong market demand for large video supporting applications.
We have seen trends in this market similar to college and professional course with increased size and advanced capabilities for these systems and are beginning to see high schools refer to their displays as the largest in the state. HSPR also includes on-premise messaging solutions for parents and those orders were strong this past year.
Commercial business unit annual orders increased 11.6%, our on-premise and spectacular niches in commercial predominantly led the improved order volume year-to-date. The spectacular niches seemed stronger porting activity and more customers are moving forward this year as compared to last. On-premise orders have increased related to in-store digital media solutions sold through ADFLOW, a company we acquired last year during the fourth quarter. While we estimate our market share at the digital billboard segment held in the national operators and expanded with independent billboard operators, overall order activity declined for the year.
Order activity in the billboard niche is impacted by customer allocation decisions, replacement cycles, permits and general economic conditions. Transportation business unit orders increased this year compared to last, mostly