Cover Page
Cover Page - shares | 6 Months Ended | |
Oct. 31, 2020 | Nov. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-23246 | |
Entity Incorporation, State or Country Code | SD | |
Entity Tax Identification Number | 46-0306862 | |
Entity Address, Address Line One | 201 Daktronics Drive | |
Entity Address, City or Town | Brookings, | |
Entity Address, State or Province | SD | |
Entity Address, Postal Zip Code | 57006 | |
City Area Code | 605 | |
Local Phone Number | 692-0200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,750,443 | |
Entity Registrant Name | DAKTRONICS INC /SD/ | |
Entity Central Index Key | 0000915779 | |
Current Fiscal Year End Date | --05-01 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | DAKT | |
Security Exchange Name | NASDAQ | |
Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock Purchase Rights | |
Trading Symbol | DAKT | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2020 | May 02, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 69,836 | $ 40,398 |
Restricted cash | 3,617 | 14 |
Marketable securities | 983 | 1,230 |
Accounts receivable, net | 74,682 | 72,577 |
Inventories | 71,428 | 86,803 |
Contract assets | 26,707 | 35,467 |
Current maturities of long-term receivables | 2,439 | 3,519 |
Prepaid expenses and other current assets | 7,650 | 9,629 |
Income tax receivables | 129 | 548 |
Property and equipment and other assets available for sale | 1,953 | 1,817 |
Total current assets | 259,424 | 252,002 |
Property and equipment, net | 64,475 | 67,484 |
Long-term receivables, less current maturities | 594 | 1,114 |
Goodwill | 8,050 | 7,743 |
Intangibles, net | 2,702 | 3,354 |
Investment in affiliates and other assets | 24,943 | 27,683 |
Deferred income taxes | 13,323 | 13,271 |
TOTAL ASSETS | 373,511 | 372,651 |
CURRENT LIABILITIES: | ||
Accounts payable | 37,274 | 47,834 |
Contract liabilities | 47,107 | 50,897 |
Accrued expenses | 32,681 | 36,626 |
Warranty obligations | 10,383 | 9,764 |
Income taxes payable | 2,949 | 844 |
Total current liabilities | 130,394 | 145,965 |
Long-term warranty obligations | 16,217 | 15,860 |
Long-term contract liabilities | 10,741 | 10,707 |
Other long-term obligations | 24,586 | 22,105 |
Long-term income taxes payable | 697 | 582 |
Deferred income taxes | 471 | 452 |
Total long-term liabilities | 52,712 | 49,706 |
SHAREHOLDERS' EQUITY: | ||
Common Stock, no par value, authorized 115,000,000 shares; 46,094,125 and 45,913,209 shares issued at October 31, 2020 and May 2, 2020, respectively | 60,010 | 60,010 |
Additional paid-in capital | 45,575 | 44,627 |
Retained earnings | 95,973 | 85,090 |
Treasury Stock, at cost, 1,297,409 and 1,343,281 shares at October 31, 2020 and May 2, 2020, respectively | (7,297) | (7,470) |
Accumulated other comprehensive loss | (3,856) | (5,277) |
TOTAL SHAREHOLDERS' EQUITY | 190,405 | 176,980 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 373,511 | $ 372,651 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 31, 2020 | May 02, 2020 |
SHAREHOLDERS' EQUITY: | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 115,000,000 | 115,000,000 |
Common stock, issued (in shares) | 46,094,125 | 45,913,209 |
Treasury stock, at cost (in shares) | 1,297,409 | 1,343,281 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 127,367 | $ 174,911 | $ 271,011 | $ 355,167 |
Cost of sales | 94,053 | 134,824 | 201,936 | 269,575 |
Gross profit | 33,314 | 40,087 | 69,075 | 85,592 |
Operating expenses: | ||||
Selling | 12,654 | 16,177 | 24,210 | 34,474 |
General and administrative | 7,264 | 8,965 | 14,388 | 18,058 |
Product design and development | 6,737 | 10,121 | 14,269 | 20,621 |
Total operating expenses | 26,655 | 35,263 | 52,867 | 73,153 |
Operating income | 6,659 | 4,824 | 16,208 | 12,439 |
Nonoperating (expense) income: | ||||
Interest income | 66 | 162 | 151 | 431 |
Interest expense | (84) | (31) | (157) | (66) |
Other (expense) income, net | (837) | (514) | (1,464) | (321) |
Income before income taxes | 5,804 | 4,441 | 14,738 | 12,483 |
Income tax expense (benefit) | 2,388 | (2,833) | 3,855 | (1,821) |
Net income | $ 3,416 | $ 7,274 | $ 10,883 | $ 14,304 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 44,893 | 45,115 | 44,808 | 45,114 |
Diluted (in shares) | 44,977 | 45,267 | 44,947 | 45,361 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.08 | $ 0.16 | $ 0.24 | $ 0.32 |
Diluted (in dollars per share) | $ 0.08 | $ 0.16 | $ 0.24 | $ 0.32 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,416 | $ 7,274 | $ 10,883 | $ 14,304 |
Other comprehensive income (loss): | ||||
Cumulative translation adjustments | 384 | 146 | 1,421 | (380) |
Unrealized gain (loss) on available-for-sale securities, net of tax | 0 | 3 | 0 | 44 |
Total other comprehensive income (loss), net of tax | 384 | 149 | 1,421 | (336) |
Comprehensive income | $ 3,800 | $ 7,423 | $ 12,304 | $ 13,968 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Balance at Beginning of Period at Apr. 27, 2019 | $ 187,663 | $ 57,699 | $ 42,561 | $ 93,593 | $ (1,834) | $ (4,356) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7,030 | 7,030 | ||||
Cumulative translation adjustments | (526) | (526) | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 41 | 41 | ||||
Share-based compensation | 643 | 643 | ||||
Employee savings plan activity | 779 | 779 | ||||
Dividends paid | (2,250) | (2,250) | ||||
Treasury stock purchase | 1,187 | 1,187 | ||||
Balance at End of Period at Aug. 03, 2019 | 192,193 | 58,478 | 43,204 | 98,373 | (3,021) | (4,841) |
Balance at Beginning of Period at Apr. 27, 2019 | 187,663 | 57,699 | 42,561 | 93,593 | (1,834) | (4,356) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 14,304 | |||||
Cumulative translation adjustments | (380) | |||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 44 | |||||
Balance at End of Period at Nov. 02, 2019 | 198,011 | 59,276 | 43,546 | 103,397 | (3,516) | (4,692) |
Balance at Beginning of Period at Aug. 03, 2019 | 192,193 | 58,478 | 43,204 | 98,373 | (3,021) | (4,841) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7,274 | 7,274 | ||||
Cumulative translation adjustments | 146 | 146 | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 3 | 3 | ||||
Share-based compensation | 541 | 541 | ||||
Tax payments related to RSU issuances | (199) | (199) | ||||
Employee savings plan activity | 798 | 798 | ||||
Dividends paid | (2,250) | (2,250) | ||||
Treasury stock purchase | 495 | 495 | ||||
Balance at End of Period at Nov. 02, 2019 | 198,011 | 59,276 | 43,546 | 103,397 | (3,516) | (4,692) |
Balance at Beginning of Period at May. 02, 2020 | 176,980 | 60,010 | 44,627 | 85,090 | (7,470) | (5,277) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7,467 | 7,467 | ||||
Cumulative translation adjustments | 1,037 | 1,037 | ||||
Share-based compensation | 539 | 539 | ||||
Treasury stock reissued | 199 | 26 | 173 | |||
Balance at End of Period at Aug. 01, 2020 | 186,222 | 60,010 | 45,192 | 92,557 | (7,297) | (4,240) |
Balance at Beginning of Period at May. 02, 2020 | 176,980 | 60,010 | 44,627 | 85,090 | (7,470) | (5,277) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,883 | |||||
Cumulative translation adjustments | 1,421 | |||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 0 | |||||
Balance at End of Period at Oct. 31, 2020 | 190,405 | 60,010 | 45,575 | 95,973 | (7,297) | (3,856) |
Balance at Beginning of Period at Aug. 01, 2020 | 186,222 | 60,010 | 45,192 | 92,557 | (7,297) | (4,240) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,416 | 3,416 | ||||
Cumulative translation adjustments | 384 | 384 | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 0 | |||||
Share-based compensation | 508 | 508 | ||||
Tax payments related to RSU issuances | (125) | (125) | ||||
Balance at End of Period at Oct. 31, 2020 | $ 190,405 | $ 60,010 | $ 45,575 | $ 95,973 | $ (7,297) | $ (3,856) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Oct. 31, 2020 | Aug. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per share | $ 0 | $ 0 | $ 0.05 | $ 0.05 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2020 | Nov. 02, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 10,883 | $ 14,304 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,564 | 8,724 |
(Gain) loss on sale of property, equipment and other assets | (162) | 30 |
Share-based compensation | 1,047 | 1,184 |
Equity in loss of affiliates | 1,145 | 241 |
Provision for doubtful accounts | 153 | (535) |
Deferred income taxes, net | 2 | (64) |
Change in operating assets and liabilities | 18,343 | (34,156) |
Net cash provided by (used in) operating activities | 39,975 | (10,272) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (5,776) | (9,768) |
Proceeds from sales of property, equipment and other assets | 341 | 149 |
Proceeds from sales or maturities of marketable securities | 247 | 22,775 |
Purchases of and loans to equity investment | (903) | (896) |
Net cash (used in) provided by investing activities | (6,091) | 12,260 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on long-term obligations | (220) | (1,931) |
Dividends paid | 0 | (4,500) |
Payments for common shares repurchased | 0 | 1,682 |
Tax payments related to RSU issuances | 125 | 199 |
Net cash used in financing activities | (345) | (8,312) |
EFFECT OF EXCHANGE RATE CHANGES | (498) | (94) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 33,041 | (6,418) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | ||
Beginning of period | 40,412 | 35,742 |
End of period | 73,453 | 29,324 |
Cash paid (received) for: | ||
Interest | 113 | 117 |
Income taxes, net of refunds | 1,171 | 1,051 |
Supplemental schedule of non-cash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable | 660 | 1,469 |
Contributions of common stock under the ESPP | $ 0 | $ 1,577 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Critical Accounting Policies | Note 1. Basis of Presentation Daktronics, Inc. and its subsidiaries (the “Company”, “Daktronics”, “we”, “our”, or “us”) are the world's industry leader in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions affecting the reported amounts therein. Due to the inherent uncertainty involved in making estimates, actual results in future periods may differ from those estimates. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The balance sheet at May 2, 2020 , has been derived from the audited financial statements at that date, but it does not include all the information and disclosures required by GAAP for complete financial statements. These financial statements should be read in conjunction with our financial statements and notes thereto for the year ended May 2, 2020 , which are contained in our Annual Report on Form 10-K previously filed with the Securities and Exchange Commission ("SEC"). The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year. Daktronics, Inc. operates on a 52- or 53-week fiscal year, with our fiscal year ending on the Saturday closest to April 30 of each year. When April 30 falls on a Wednesday, the fiscal year ends on the preceding Saturday. Within each fiscal year, each quarter is comprised of 13-week periods following the beginning of each fiscal year. In each 53-week year, an additional week is added to the first quarter, and each of the last three quarters is comprised of a 13-week period. The fiscal year ending May 1, 2021 will consist of 52 weeks and the fiscal year ended May 2, 2020 was a 53-week year; therefore, the six months ended October 31, 2020 contains operating results for 26 weeks while the six months ended November 2, 2019 contains operating results for 27 weeks. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the totals of the same amounts shown in the condensed consolidated statements of cash flows. We have bank guarantees that are secured with cash collateral which is maintained in the restricted cash account. October 31, November 2, Cash and cash equivalents $ 69,836 $ 29,265 Restricted cash 3,617 59 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 73,453 $ 29,324 Other Business Developments - Coronavirus Pandemic During the first six months of fiscal 2021, we continued to see the global spread of the coronavirus pandemic ("COVID-19"), which grew to create significant volatility, uncertainty and global economic disruption. As disclosed in our Current Report on Form 8-K filed on April 1, 2020, we are taking proactive steps to solidify our financial position and mitigate any adverse consequences. These steps include preserving liquidity by drawing down $15,000 of our existing line of credit, which is included in the "Other long-term obligations" line item in our condensed consolidated balance sheets. In addition, we are pursuing other sources of financing, reducing investments in capital assets, have reduced executive pay and board member compensation, and have or are continuing to institute initiatives to reduce other costs in the business. Our board of directors voted to suspend stock repurchases under our share repurchase program and to suspend dividends for the foreseeable future. We believe these measures help to preserve our ability to borrow for liquidity needs and position us well for when the pandemic passes and economies begin to recover. During fiscal 2020, we offered special voluntary retirement and voluntary exit incentive program ("Offering") and during the first six months of fiscal 2021, we conducted two reductions in force ("RIF") to adjust our capacity and reduce on-going expenses due to the reduced revenue and uncertainties created by the COVID-19 pandemic. During the first quarter of fiscal 2021, 60 employees agreed to participate in the Offering and completed employment. The approximate cost of this Offering was $931 during the first quarter of fiscal 2021. Under the RIF, employment was terminated with 108 employees with severance totaling $1,426 during the first quarter of fiscal 2021 and 150 employees with severance totaling $2,742 during the second quarter of fiscal 2021. Various government programs have been announced which provide financial relief for affected businesses that suffered reductions in revenue resulting from the COVID-19 pandemic including the Canada Emergency Wage Subsidy ("CEWS") under the COVID-19 Economic Response Plan in Canada, the Australian JobKeeper subsidy in Australia, the Temporary COVID-19 Wage Subsidy in Ireland, and the Job Retention Program in the United Kingdom. We received governmental wage subsidies of $812 during the first quarter of fiscal 2021 and $566 during the second quarter of fiscal 2021 and recorded such as a reduction of compensation expense, which is mostly included in the "Costs of sales" line item in our condensed consolidated statements of operations. Under the Coronavirus Aid, Relief, and Economic Security Act, we have elected to defer payments of the employer portion of social security taxes during the payroll tax deferral period. The payroll tax deferral period ends on December 31, 2020. As of October 31, 2020 the total amount of such deferral was $3,976 , which is included in the "Other long-term obligations" line item in our condensed consolidated balance sheet. Per the terms of the deferral program, 50 percent of the deferred amount is due on December 31, 2021 with the remaining 50 percent due on December 31, 2022. Recent Accounting Pronouncements There have been no material changes to our significant accounting policies and estimates as described in our Annual Report on Form 10-K for the fiscal year ended May 2, 2020 , other than described in the Accounting Standards Adopted section below. Accounting Standards Adopted In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles-Goodwill and Other (Topic 350), which simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. A goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. We adopted ASU 2017-04 during the first quarter of fiscal 2021 and the adoption did not have an impact on our condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provides guidance regarding the measurement and recognition of credit impairment for certain financial assets. ASU 2016-13 improves financial reporting by requiring more timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. Under the new guidance, the ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. We adopted ASU 2016-13 and its related guidance during the first quarter of fiscal 2021 and the adoption did not have a material impact on our condensed consolidated financial statements. We estimate an allowance for doubtful accounts using a loss rate method. We measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. A reconciliation of the beginning and ending allowance for doubtful accounts is as follows: Allowance for Doubtful Accounts: Balance as of May 2, 2020 $ 2,828 Charged to costs and expenses 1,428 Deductions (1) (1,040 ) Balance as of October 31, 2020 $ 3,216 (1) Includes accounts determined to be uncollectible and charged against reserves. Accounting Standards Not Yet Adopted There are no significant ASU's issued not yet adopted as of October 31, 2020 . |
Investments in Affiliates Inves
Investments in Affiliates Investment in Affiliates | 6 Months Ended |
Oct. 31, 2020 | |
Equity and Cost Method Investments [Abstract] | |
Cost and Equity Method Investments Disclosure [Text Block] | Note 2. Investments in Affiliates Investments in affiliates over which we have significant influence are accounted for under the equity method of accounting, recording the investment at cost and then subsequently adjusting to account for our share of the affiliates profit or losses, in accordance with the provisions of Accounting Standards Codification ("ASC") 323, Investments – Equity Method and Joint Ventures . Investments in affiliates over which we do not have the ability to exert significant influence over the affiliate's operating and financing activities are accounted for under the cost method of accounting, recording the investment at cost and then subsequently adjusting for any changes in ownership or dividends, in accordance with the provisions of ASC 321, Investments – Equity Securities . We have evaluated our relationships with our affiliates and have determined that these entities are not variable interest entities. Cash paid for investments in affiliates and loans to affiliates are included in the "Purchases of and loans to equity investment" line item in our condensed consolidated statements of cash flows. Equity method investments as a whole are assessed for other-than-temporary impairments whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. The aggregate amount of investments accounted for under the equity method was $16,112 and $17,257 at October 31, 2020 and May 2, 2020 , respectively. Our proportional share of the respective affiliates' earnings or losses is included in the " Other (expense) income, net " line item in our condensed consolidated statements of operations. For the six months ended October 31, 2020 and November 2, 2019 , our share of the losses of our affiliates was $1,145 and $241 , respectively. We purchased services for research and development activities from our equity method investments. The total of these related party transactions was $560 for the six months ended October 31, 2020 , which was included in the "Product design and development" line item in in our condensed consolidated statement of operations and remains unpaid and is included in the "Accounts payable" line item in our condensed consolidated balance sheet. |
Earnings Per Share EPS
Earnings Per Share EPS | 6 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share EPS | Note 3. Earnings Per Share ("EPS") We follow the provisions of ASC 260, Earnings Per Share , where basic EPS is computed by dividing income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution which may occur if securities or other obligations to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock which share in our earnings. The following is a reconciliation of the net income and common share amounts used in the calculation of basic and diluted EPS for the three and six months ended October 31, 2020 and November 2, 2019 : Net income Shares Per share income For the three months ended October 31, 2020 Basic earnings per share $ 3,416 44,893 $ 0.08 Dilution associated with stock compensation plans — 84 — Diluted earnings per share $ 3,416 44,977 $ 0.08 For the three months ended November 2, 2019 Basic earnings per share $ 7,274 45,115 $ 0.16 Dilution associated with stock compensation plans — 152 — Diluted earnings per share $ 7,274 45,267 $ 0.16 For the six months ended October 31, 2020 Basic earnings per share $ 10,883 44,808 $ 0.24 Dilution associated with stock compensation plans — 139 — Diluted earnings per share $ 10,883 44,947 $ 0.24 For the six months ended November 2, 2019 Basic earnings per share $ 14,304 45,114 $ 0.32 Dilution associated with stock compensation plans — 247 — Diluted earnings per share $ 14,304 45,361 $ 0.32 Options outstanding to purchase 2,348 shares of common stock with a weighted average exercise price of $9.28 for the three months ended October 31, 2020 and 2,282 shares of common stock with a weighted average exercise price of $9.90 for the three months ended November 2, 2019 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. Options outstanding to purchase 2,233 shares of common stock with a weighted average exercise price of $9.61 for the six months ended October 31, 2020 and 2,238 shares of common stock with a weighted average exercise price of $9.97 for the six months ended November 2, 2019 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 6 Months Ended |
Oct. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 4. Revenue Recognition Disaggregation of revenue In accordance with ASC 606-10-50, we disaggregate revenue from contracts with customers by the type of performance obligation and the timing of revenue recognition. We determine that disaggregating revenue in these categories achieves the disclosure objective to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors and to enable users of financial statements to understand the relationship to each reportable segment. The following table presents our disaggregation of revenue by segments: Three Months Ended October 31, 2020 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 3,508 $ 27,302 $ 5,091 $ 8,975 $ 6,367 $ 51,243 Limited configuration 22,611 4,611 21,696 5,825 8,224 62,967 Service and other 4,237 5,909 791 523 1,697 13,157 $ 30,356 $ 37,822 $ 27,578 $ 15,323 $ 16,288 $ 127,367 Timing of revenue recognition Goods/services transferred at a point in time $ 23,226 $ 6,736 $ 19,718 $ 5,930 $ 8,468 $ 64,078 Goods/services transferred over time 7,130 31,086 7,860 9,393 7,820 63,289 $ 30,356 $ 37,822 $ 27,578 $ 15,323 $ 16,288 $ 127,367 Six Months Ended October 31, 2020 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 12,235 $ 69,277 $ 12,759 $ 16,699 $ 10,379 $ 121,349 Limited configuration 45,166 10,030 42,384 12,091 16,877 126,548 Service and other 7,461 9,989 1,378 1,031 3,255 23,114 $ 64,862 $ 89,296 $ 56,521 $ 29,821 $ 30,511 $ 271,011 Timing of revenue recognition Goods/services transferred at a point in time $ 46,118 $ 12,950 $ 39,086 $ 12,304 $ 17,647 $ 128,105 Goods/services transferred over time 18,744 76,346 17,435 17,517 12,864 142,906 $ 64,862 $ 89,296 $ 56,521 $ 29,821 $ 30,511 $ 271,011 Three Months Ended November 2, 2019 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 9,007 $ 41,413 $ 5,186 $ 12,419 $ 10,542 $ 78,567 Limited configuration 26,654 11,513 24,127 7,383 13,124 82,801 Service and other 3,990 6,393 880 528 1,752 13,543 $ 39,651 $ 59,319 $ 30,193 $ 20,330 $ 25,418 $ 174,911 Timing of revenue recognition Goods/services transferred at a point in time $ 27,304 $ 13,169 $ 22,112 $ 7,521 $ 13,500 $ 83,606 Goods/services transferred over time 12,347 46,150 8,081 12,809 11,918 91,305 $ 39,651 $ 59,319 $ 30,193 $ 20,330 $ 25,418 $ 174,911 Six Months Ended November 2, 2019 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 21,972 $ 87,000 $ 11,216 $ 24,316 $ 26,220 $ 170,724 Limited configuration 53,889 19,226 47,927 13,970 23,054 158,066 Service and other 7,825 12,399 1,515 1,062 3,576 26,377 $ 83,686 $ 118,625 $ 60,658 $ 39,348 $ 52,850 $ 355,167 Timing of revenue recognition Goods/services transferred at a point in time $ 55,007 $ 22,289 $ 44,711 $ 14,218 $ 23,688 $ 159,913 Goods/services transferred over time 28,679 96,336 15,947 25,130 29,162 195,254 $ 83,686 $ 118,625 $ 60,658 $ 39,348 $ 52,850 $ 355,167 See " Note 5. Segment Reporting " for a disaggregation of revenue by geography. Contract balances Contract assets represent revenue recognized in excess of amounts billed and include unbilled receivables. Unbilled receivables, which represent an unconditional right to payment subject only to the passage of time, are reclassified to accounts receivable when they are billed according to the contract terms. Contract liabilities represent amounts billed to the customers in excess of revenue recognized to date. The following table reflects the changes in our contract assets and liabilities: October 31, 2020 May 2, 2020 Dollar Change Percent Change Contract assets $ 26,707 $ 35,467 $ (8,760 ) (24.7 )% Contract liabilities - current 47,107 50,897 (3,790 ) (7.4 ) Contract liabilities - noncurrent 10,741 10,707 34 0.3 The changes in our contract assets and contract liabilities from May 2, 2020 to October 31, 2020 were due to the timing of billing schedules and revenue recognition, which can vary significantly depending on the contractual payment terms and the seasonality of the sports markets. We had no material impairments of contract assets for the six months ended October 31, 2020 . For service-type warranty contracts, we allocate revenue to this performance obligation, recognize the revenue over time, and recognize costs as incurred. Earned and unearned revenues for these contracts are included in the "Contract assets" and "Contract liabilities" line items in our condensed consolidated balance sheets. Changes in unearned service-type warranty contracts, net were as follows: October 31, 2020 Balance at beginning of period $ 24,490 New contracts sold 20,756 Less: reductions for revenue recognized (20,290 ) Foreign currency translation and other 560 Balance at end of period $ 25,516 As of October 31, 2020 and May 2, 2020 , our contracts in progress that were identified as loss contracts were immaterial. For these contracts, the provision for losses are included in the "Accrued expenses" line item in our condensed consolidated balance sheets. During the six months ended October 31, 2020 , we recognized revenue of $37,973 related to our contract liabilities as of May 2, 2020 . Remaining performance obligations As of October 31, 2020 , the aggregate amount of the transaction price allocated to the remaining performance obligations was $254,253 . We expect approximately $211,663 of our remaining performance obligations to be recognized over the next 12 months, with the remainder recognized thereafter. Remaining performance obligations related to product and service agreements at October 31, 2020 are $200,505 and $53,748 , respectively. Although remaining performance obligations reflect business that is considered to be legally binding, cancellations, deferrals or scope adjustments may occur. Any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals are reflected or excluded in the remaining performance obligation balance, as appropriate. |
Segment Disclosure
Segment Disclosure | 6 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Disclosure | Note 5. Segment Reporting We organize and manage our business by the following five segments which meet the definition of reportable segments under ASC 280-10, Segment Reporting : Commercial, Live Events, High School Park and Recreation, Transportation, and International. These segments are based on the customer type or geography and are the same as our business units. We evaluate segment performance based on operating results through contribution margin, which is comprised of gross profit less selling expense. We exclude general and administration expense, product design and development expense, non-operating income and expense, and income tax expense (benefit) in the segment analysis. Separate financial information is available and regularly evaluated by our chief operating decision-maker (CODM), who is our president and chief executive officer, in making resource allocation decisions for our segments. The following table sets forth certain financial information for each of our five reporting segments for the periods indicated: Three Months Ended Six Months Ended October 31, November 2, October 31, November 2, Net sales: Commercial $ 30,356 $ 39,651 $ 64,862 $ 83,686 Live Events 37,822 59,319 89,296 118,625 High School Park and Recreation 27,578 30,193 56,521 60,658 Transportation 15,323 20,330 29,821 39,348 International 16,288 25,418 30,511 52,850 127,367 174,911 271,011 355,167 Gross profit: Commercial 8,578 7,862 16,320 17,080 Live Events 7,300 11,934 16,654 24,671 High School Park and Recreation 8,497 9,224 18,973 19,411 Transportation 5,312 7,003 10,455 13,757 International 3,627 4,064 6,673 10,673 33,314 40,087 69,075 85,592 Contribution margin: (1) Commercial 4,781 2,853 9,222 6,937 Live Events 4,881 8,362 12,019 17,234 High School Park and Recreation 5,951 5,988 13,866 12,580 Transportation 4,446 5,895 8,827 11,347 International 601 812 931 3,020 20,660 23,910 44,865 51,118 Non-allocated operating expenses: General and administrative 7,264 8,965 14,388 18,058 Product design and development 6,737 10,121 14,269 20,621 Operating income 6,659 4,824 16,208 12,439 Nonoperating income (expense): Interest income 66 162 151 431 Interest expense (84 ) (31 ) (157 ) (66 ) Other (expense) income, net (837 ) (514 ) (1,464 ) (321 ) Income before income taxes 5,804 4,441 14,738 12,483 Income tax expense (benefit) 2,388 (2,833 ) 3,855 (1,821 ) Net income $ 3,416 $ 7,274 $ 10,883 $ 14,304 Depreciation and amortization: Commercial $ 721 $ 895 $ 1,493 $ 1,869 Live Events 1,424 1,394 2,875 2,792 High School Park and Recreation 492 507 988 1,019 Transportation 234 252 471 516 International 701 563 1,394 1,087 Unallocated corporate depreciation 655 730 1,343 1,441 $ 4,227 $ 4,341 $ 8,564 $ 8,724 (1) Contribution margin consists of gross profit less selling expense. No single geographic area comprises a material amount of our net sales or property and equipment, net of accumulated depreciation, other than the United States. The following table presents information about net sales and property and equipment, net of accumulated depreciation, in the United States and elsewhere: Three Months Ended Six Months Ended October 31, November 2, October 31, November 2, Net sales: United States $ 108,453 $ 147,106 $ 236,522 $ 296,566 Outside United States 18,914 27,805 34,489 58,601 $ 127,367 $ 174,911 $ 271,011 $ 355,167 October 31, May 2, Property and equipment, net of accumulated depreciation: United States $ 55,522 $ 58,422 Outside United States 8,953 9,062 $ 64,475 $ 67,484 We have numerous customers worldwide for sales of our products and services, and no customer accounted for 10% or more of net sales; therefore, we are not economically dependent on a limited number of customers for the sale of our products and services. We have numerous raw material and component suppliers, and no supplier accounts for 10% or more of our cost of sales; however, we have a number of single-source suppliers that could limit our supply or cause delays in obtaining raw material and components needed in manufacturing. |
Goodwill
Goodwill | 6 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 6. Goodwill The changes in the carrying amount of goodwill related to each reportable segment for the six months ended October 31, 2020 were as follows: Live Events Commercial Transportation International Total Balance as of May 2, 2020 $ 2,266 $ 3,144 $ 38 $ 2,295 $ 7,743 Foreign currency translation 15 106 15 171 307 Balance as of October 31, 2020 $ 2,281 $ 3,250 $ 53 $ 2,466 $ 8,050 We perform an analysis of goodwill on an annual basis, and it is tested for impairment more frequently if events or changes in circumstances indicate that an asset might be impaired. Our annual analysis is performed during our third quarter of each fiscal year, based on the goodwill amount as of the first business day of our third fiscal quarter. We performed our annual impairment test on November 4, 2019 and concluded no goodwill impairment existed. We are currently in the process of completing our annual analysis as of the first business day of our third quarter of fiscal 2021, which began on November 2, 2020. In March 2020, we began to see the impacts from the COVID-19 pandemic that could have a negative impact on our forecasted revenue and profitability and stock price. This, along with other market conditions, led us to perform an interim goodwill impairment analysis in the fourth quarter of fiscal 2020. After evaluating our results, events and circumstances, we determined no goodwill impairment was necessary. Although the COVID-19 pandemic continues to cause uncertainty, in the second quarter of fiscal 2021, we considered if any new events had occurred or if circumstances had changed such that it was more likely than not that the fair value of any of our reporting units was below its carrying amount, and we did not identify any further impairment indicators; therefore, we did not perform an additional interim impairment analysis. |
Receivables
Receivables | 6 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
Receivables | Note 7. Receivables We invoice customers based on a billing schedule as established in our contracts. We sometimes have the ability to file a contractor’s lien against the product installed as collateral and to file claims against surety bonds to protect our interest in receivables. Foreign sales are at times secured by irrevocable letters of credit or bank guarantees. Accounts receivable are reported net of an allowance for doubtful accounts of $3,216 and $2,828 at October 31, 2020 and May 2, 2020 , respectively. Included in accounts receivable as of October 31, 2020 and May 2, 2020 was $621 and $687 , respectively, of retainage on construction-type contracts, all of which is expected to be collected within one year. In some contracts with customers, we agree to installment payments exceeding 12 months. The present value of these contracts is recorded as a receivable as the revenue is recognized in accordance with GAAP, and profit is recognized to the extent the present value is in excess of cost. We generally retain a security interest in the equipment or in the cash flow generated by the equipment until the contract is paid. The present value of long-term contracts, including accrued interest and current maturities, was $3,033 and $4,633 as of October 31, 2020 and May 2, 2020 , respectively. Contract receivables bearing annual interest rates of 5.0 to 9.0 percent are due in varying annual installments through 2024 . The face value of long-term receivables was $3,192 as of October 31, 2020 and $5,166 as of May 2, 2020 . |
Financing Agreements (Notes)
Financing Agreements (Notes) | 6 Months Ended |
Oct. 31, 2020 | |
Line of Credit Facility [Line Items] | |
Debt Disclosure [Text Block] | Note 8. Financing Agreements On November 15, 2019, we entered into an amendment to extend the maturity date of our credit agreement and a related revolving bank note from November 15, 2019 to November 15, 2022 and to modify certain other terms and financial covenants. On August 28, 2020, we entered into the third amendment to our credit agreement and a security agreement over certain assets. The third amendment adds a liquidity covenant and revises other financial covenants. The revolving amount of the agreement and note remains at $35,000 , including up to $20,000 for commercial and standby letters of credit. The credit agreement and amendments require us to be in compliance with certain financial ratios and other covenants and contain customary events of default, including failure to comply with covenants, failure to pay or discharge material judgments and taxes, bankruptcy, failure to pay loans and fees, and change of control. The occurrence of an event of default by us would permit the lenders to terminate their commitments and accelerate loans repayment, obtain securitized assets, and require collateralization of outstanding letters of credit. As of October 31, 2020 , $15,000 had been advanced to us under the loan portion of the line of credit, and the balance of letters of credit outstanding was approximately $ 6,853 . We are sometimes required to obtain bank guarantees or other financial instruments for display installations and utilize a global bank to provide such instruments. If we are unable to complete the installation work, our customer would draw on the banking arrangement, and the bank would subrogate its loss to Daktronics restricted cash accounts. As of October 31, 2020 , we had $3,122 of such instruments outstanding. As of October 31, 2020 , we were in compliance with all applicable bank loan covenants. |
Share Repurchase Program Share
Share Repurchase Program Share Repurchase Program | 6 Months Ended |
Oct. 31, 2020 | |
Class of Stock Disclosures [Abstract] | |
Treasury Stock [Text Block] | Note 9. Share Repurchase Program On June 17, 2016, our Board of Directors approved a stock repurchase program under which we may purchase up to $40,000 of the Company's outstanding shares of common stock. Under this program, we may repurchase shares from time to time in open market transactions and in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The repurchase program does not require the repurchase of a specific number of shares and may be terminated at any time. During the six months ended October 31, 2020 , we had no repurchases of shares of our outstanding common stock. During the six months ended November 2, 2019 , we repurchased 270 shares of common stock at a total cost of $1,682 . As of October 31, 2020 , we had $32,539 of remaining capacity under our current share repurchase program. As part of our COVID-19 response, on April 1, 2020, our Board of Directors voted to suspend stock repurchases under our share repurchase program for the foreseeable future. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies Litigation: We are a party to legal proceedings and claims which arise during the ordinary course of business. As of October 31, 2020 and May 2, 2020 , $2,166 and $2,072 , respectively, were included in the "Accrued expenses" line item in our condensed consolidated balance sheets for the probable and reasonably estimated cost to settle a patent litigation claim. For other unresolved legal proceedings or claims, we do not believe there is a reasonable probability that any material loss will be incurred. Accordingly, no material accrual or disclosure of a potential range of loss has been made related to these matters. We do not expect the ultimate liability of these unresolved legal proceedings or claims to have a material effect on our financial position, liquidity or capital resources. Warranties: Changes in our warranty obligation for the six months ended October 31, 2020 consisted of the following: October 31, 2020 Beginning accrued warranty obligations $ 25,624 Warranties issued during the period 5,001 Settlements made during the period (2,817 ) Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations (1,208 ) Ending accrued warranty obligations $ 26,600 Performance guarantees: We have entered into standby letters of credit, bank guarantees and surety bonds with financial institutions relating to the guarantee of our future performance on contracts, primarily construction-type contracts. As of October 31, 2020 , we had outstanding letters of credit, bank guarantees and surety bonds in the amount of $6,853 , $3,122 and $31,314 , respectively. Performance guarantees are issued to certain customers to guarantee the operation and installation of the equipment and our ability to complete a contract. These performance guarantees have various terms but are generally one year. We enter into written agreements with our customers, and those agreements often contain indemnification provisions that require us to make the customer whole if certain acts or omissions by us cause the customer financial loss. We make efforts to negotiate reasonable caps and limitations on the recovery of such damages. As of October 31, 2020 , we were not aware of any indemnification claim from a customer. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The provision for income taxes during interim reporting periods is calculated by applying an estimate of the annual effective tax rate to “ordinary” income or loss for the reporting period, adjusted for discrete items. Due to various factors, including our estimate of annual income, our effective tax rate is subject to fluctuation. Our effective tax rate for the three and six months ended October 31, 2020 was 41.1 percent and 26.2 percent , respectively, as compared to an effective tax rate benefit of 63.8 percent and 14.6 percent for the three and six months ended November 2, 2019 . The change in the effective tax rates are primarily driven by a decrease in tax credits and other permanent differences as a percentage of estimated current fiscal year pre-tax income. We are subject to U.S. federal income tax as well as income taxes of multiple state and foreign jurisdictions. Fiscal years 2017, 2018, 2019 and 2020 remain open to federal tax examinations, and fiscal years 2016, 2017, 2018, 2019 and 2020 remain open for various state income tax examinations. Certain subsidiaries are also subject to income tax in several foreign jurisdictions which have open tax years varying by jurisdiction beginning in fiscal 2009. In the event of any future tax assessments, we have elected to record the income taxes and any related interest and penalties as income tax expense in our condensed consolidated statement of operations. As of October 31, 2020 , undistributed earnings of our foreign subsidiaries are considered to be reinvested indefinitely. Additionally, we had $697 of unrecognized tax benefits which would reduce our effective tax rate if recognized. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 12. Fair Value Measurement The following table sets forth by Level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at October 31, 2020 and May 2, 2020 according to the valuation techniques we used to determine their fair values. There have been no transfers of assets or liabilities among the fair value hierarchies presented. Fair Value Measurements Level 1 Level 2 Level 3 Total Balance as of October 31, 2020 Cash and cash equivalents $ 69,836 $ — $ — $ 69,836 Restricted cash 3,617 — — 3,617 Available-for-sale securities: Certificates of deposit — 983 — 983 Derivatives - asset position — 41 — 41 Derivatives - liability position — (31 ) — (31 ) Acquisition-related contingent consideration — — (456 ) (456 ) $ 73,453 $ 993 $ (456 ) $ 73,990 Balance as of May 2, 2020 Cash and cash equivalents $ 40,398 $ — $ — $ 40,398 Restricted cash 14 — — 14 Available-for-sale securities: Certificates of deposit — 1,230 — 1,230 Derivatives - asset position — 261 — 261 Derivatives - liability position — (17 ) — (17 ) Acquisition-related contingent consideration — — (761 ) (761 ) $ 40,412 $ 1,474 $ (761 ) $ 41,125 A roll forward of the Level 3 contingent liabilities, both short- and long-term, for the six months ended October 31, 2020 is as follows: Acquisition-related contingent consideration as of May 2, 2020 $ 761 Additions 83 Settlements (400 ) Interest 12 Acquisition-related contingent consideration as of October 31, 2020 $ 456 There have been no changes in the valuation techniques used by us to value our financial instruments since the end of fiscal 2020 . For additional information, see our Annual Report on Form 10-K for the fiscal year ended May 2, 2020 for the methods and assumptions used to estimate the fair value of each class of financial instrument. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued Accounting Pronouncements | Recent Accounting Pronouncements There have been no material changes to our significant accounting policies and estimates as described in our Annual Report on Form 10-K for the fiscal year ended May 2, 2020 , other than described in the Accounting Standards Adopted section below. Accounting Standards Adopted In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles-Goodwill and Other (Topic 350), which simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. A goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. We adopted ASU 2017-04 during the first quarter of fiscal 2021 and the adoption did not have an impact on our condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provides guidance regarding the measurement and recognition of credit impairment for certain financial assets. ASU 2016-13 improves financial reporting by requiring more timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. Under the new guidance, the ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. We adopted ASU 2016-13 and its related guidance during the first quarter of fiscal 2021 and the adoption did not have a material impact on our condensed consolidated financial statements. We estimate an allowance for doubtful accounts using a loss rate method. We measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. A reconciliation of the beginning and ending allowance for doubtful accounts is as follows: Allowance for Doubtful Accounts: Balance as of May 2, 2020 $ 2,828 Charged to costs and expenses 1,428 Deductions (1) (1,040 ) Balance as of October 31, 2020 $ 3,216 (1) Includes accounts determined to be uncollectible and charged against reserves. Accounting Standards Not Yet Adopted There are no significant ASU's issued not yet adopted as of October 31, 2020 . |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the totals of the same amounts shown in the condensed consolidated statements of cash flows. We have bank guarantees that are secured with cash collateral which is maintained in the restricted cash account. October 31, November 2, Cash and cash equivalents $ 69,836 $ 29,265 Restricted cash 3,617 59 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 73,453 $ 29,324 |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | A reconciliation of the beginning and ending allowance for doubtful accounts is as follows: Allowance for Doubtful Accounts: Balance as of May 2, 2020 $ 2,828 Charged to costs and expenses 1,428 Deductions (1) (1,040 ) Balance as of October 31, 2020 $ 3,216 (1) Includes accounts determined to be uncollectible and charged against reserves. |
Earnings Per Share EPS (Tables)
Earnings Per Share EPS (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following is a reconciliation of the net income and common share amounts used in the calculation of basic and diluted EPS for the three and six months ended October 31, 2020 and November 2, 2019 : Net income Shares Per share income For the three months ended October 31, 2020 Basic earnings per share $ 3,416 44,893 $ 0.08 Dilution associated with stock compensation plans — 84 — Diluted earnings per share $ 3,416 44,977 $ 0.08 For the three months ended November 2, 2019 Basic earnings per share $ 7,274 45,115 $ 0.16 Dilution associated with stock compensation plans — 152 — Diluted earnings per share $ 7,274 45,267 $ 0.16 For the six months ended October 31, 2020 Basic earnings per share $ 10,883 44,808 $ 0.24 Dilution associated with stock compensation plans — 139 — Diluted earnings per share $ 10,883 44,947 $ 0.24 For the six months ended November 2, 2019 Basic earnings per share $ 14,304 45,114 $ 0.32 Dilution associated with stock compensation plans — 247 — Diluted earnings per share $ 14,304 45,361 $ 0.32 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our disaggregation of revenue by segments: Three Months Ended October 31, 2020 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 3,508 $ 27,302 $ 5,091 $ 8,975 $ 6,367 $ 51,243 Limited configuration 22,611 4,611 21,696 5,825 8,224 62,967 Service and other 4,237 5,909 791 523 1,697 13,157 $ 30,356 $ 37,822 $ 27,578 $ 15,323 $ 16,288 $ 127,367 Timing of revenue recognition Goods/services transferred at a point in time $ 23,226 $ 6,736 $ 19,718 $ 5,930 $ 8,468 $ 64,078 Goods/services transferred over time 7,130 31,086 7,860 9,393 7,820 63,289 $ 30,356 $ 37,822 $ 27,578 $ 15,323 $ 16,288 $ 127,367 Six Months Ended October 31, 2020 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 12,235 $ 69,277 $ 12,759 $ 16,699 $ 10,379 $ 121,349 Limited configuration 45,166 10,030 42,384 12,091 16,877 126,548 Service and other 7,461 9,989 1,378 1,031 3,255 23,114 $ 64,862 $ 89,296 $ 56,521 $ 29,821 $ 30,511 $ 271,011 Timing of revenue recognition Goods/services transferred at a point in time $ 46,118 $ 12,950 $ 39,086 $ 12,304 $ 17,647 $ 128,105 Goods/services transferred over time 18,744 76,346 17,435 17,517 12,864 142,906 $ 64,862 $ 89,296 $ 56,521 $ 29,821 $ 30,511 $ 271,011 Three Months Ended November 2, 2019 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 9,007 $ 41,413 $ 5,186 $ 12,419 $ 10,542 $ 78,567 Limited configuration 26,654 11,513 24,127 7,383 13,124 82,801 Service and other 3,990 6,393 880 528 1,752 13,543 $ 39,651 $ 59,319 $ 30,193 $ 20,330 $ 25,418 $ 174,911 Timing of revenue recognition Goods/services transferred at a point in time $ 27,304 $ 13,169 $ 22,112 $ 7,521 $ 13,500 $ 83,606 Goods/services transferred over time 12,347 46,150 8,081 12,809 11,918 91,305 $ 39,651 $ 59,319 $ 30,193 $ 20,330 $ 25,418 $ 174,911 Six Months Ended November 2, 2019 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 21,972 $ 87,000 $ 11,216 $ 24,316 $ 26,220 $ 170,724 Limited configuration 53,889 19,226 47,927 13,970 23,054 158,066 Service and other 7,825 12,399 1,515 1,062 3,576 26,377 $ 83,686 $ 118,625 $ 60,658 $ 39,348 $ 52,850 $ 355,167 Timing of revenue recognition Goods/services transferred at a point in time $ 55,007 $ 22,289 $ 44,711 $ 14,218 $ 23,688 $ 159,913 Goods/services transferred over time 28,679 96,336 15,947 25,130 29,162 195,254 $ 83,686 $ 118,625 $ 60,658 $ 39,348 $ 52,850 $ 355,167 |
Contract with Customer, Asset and Liability | The following table reflects the changes in our contract assets and liabilities: October 31, 2020 May 2, 2020 Dollar Change Percent Change Contract assets $ 26,707 $ 35,467 $ (8,760 ) (24.7 )% Contract liabilities - current 47,107 50,897 (3,790 ) (7.4 ) Contract liabilities - noncurrent 10,741 10,707 34 0.3 |
Deferred Revenue, by Arrangement | Changes in unearned service-type warranty contracts, net were as follows: October 31, 2020 Balance at beginning of period $ 24,490 New contracts sold 20,756 Less: reductions for revenue recognized (20,290 ) Foreign currency translation and other 560 Balance at end of period $ 25,516 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table sets forth certain financial information for each of our five reporting segments for the periods indicated: Three Months Ended Six Months Ended October 31, November 2, October 31, November 2, Net sales: Commercial $ 30,356 $ 39,651 $ 64,862 $ 83,686 Live Events 37,822 59,319 89,296 118,625 High School Park and Recreation 27,578 30,193 56,521 60,658 Transportation 15,323 20,330 29,821 39,348 International 16,288 25,418 30,511 52,850 127,367 174,911 271,011 355,167 Gross profit: Commercial 8,578 7,862 16,320 17,080 Live Events 7,300 11,934 16,654 24,671 High School Park and Recreation 8,497 9,224 18,973 19,411 Transportation 5,312 7,003 10,455 13,757 International 3,627 4,064 6,673 10,673 33,314 40,087 69,075 85,592 Contribution margin: (1) Commercial 4,781 2,853 9,222 6,937 Live Events 4,881 8,362 12,019 17,234 High School Park and Recreation 5,951 5,988 13,866 12,580 Transportation 4,446 5,895 8,827 11,347 International 601 812 931 3,020 20,660 23,910 44,865 51,118 Non-allocated operating expenses: General and administrative 7,264 8,965 14,388 18,058 Product design and development 6,737 10,121 14,269 20,621 Operating income 6,659 4,824 16,208 12,439 Nonoperating income (expense): Interest income 66 162 151 431 Interest expense (84 ) (31 ) (157 ) (66 ) Other (expense) income, net (837 ) (514 ) (1,464 ) (321 ) Income before income taxes 5,804 4,441 14,738 12,483 Income tax expense (benefit) 2,388 (2,833 ) 3,855 (1,821 ) Net income $ 3,416 $ 7,274 $ 10,883 $ 14,304 Depreciation and amortization: Commercial $ 721 $ 895 $ 1,493 $ 1,869 Live Events 1,424 1,394 2,875 2,792 High School Park and Recreation 492 507 988 1,019 Transportation 234 252 471 516 International 701 563 1,394 1,087 Unallocated corporate depreciation 655 730 1,343 1,441 $ 4,227 $ 4,341 $ 8,564 $ 8,724 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table presents information about net sales and property and equipment, net of accumulated depreciation, in the United States and elsewhere: Three Months Ended Six Months Ended October 31, November 2, October 31, November 2, Net sales: United States $ 108,453 $ 147,106 $ 236,522 $ 296,566 Outside United States 18,914 27,805 34,489 58,601 $ 127,367 $ 174,911 $ 271,011 $ 355,167 October 31, May 2, Property and equipment, net of accumulated depreciation: United States $ 55,522 $ 58,422 Outside United States 8,953 9,062 $ 64,475 $ 67,484 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill related to each reportable segment for the six months ended October 31, 2020 were as follows: Live Events Commercial Transportation International Total Balance as of May 2, 2020 $ 2,266 $ 3,144 $ 38 $ 2,295 $ 7,743 Foreign currency translation 15 106 15 171 307 Balance as of October 31, 2020 $ 2,281 $ 3,250 $ 53 $ 2,466 $ 8,050 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in our warranty obligation for the six months ended October 31, 2020 consisted of the following: October 31, 2020 Beginning accrued warranty obligations $ 25,624 Warranties issued during the period 5,001 Settlements made during the period (2,817 ) Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations (1,208 ) Ending accrued warranty obligations $ 26,600 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value | The following table sets forth by Level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at October 31, 2020 and May 2, 2020 according to the valuation techniques we used to determine their fair values. There have been no transfers of assets or liabilities among the fair value hierarchies presented. Fair Value Measurements Level 1 Level 2 Level 3 Total Balance as of October 31, 2020 Cash and cash equivalents $ 69,836 $ — $ — $ 69,836 Restricted cash 3,617 — — 3,617 Available-for-sale securities: Certificates of deposit — 983 — 983 Derivatives - asset position — 41 — 41 Derivatives - liability position — (31 ) — (31 ) Acquisition-related contingent consideration — — (456 ) (456 ) $ 73,453 $ 993 $ (456 ) $ 73,990 Balance as of May 2, 2020 Cash and cash equivalents $ 40,398 $ — $ — $ 40,398 Restricted cash 14 — — 14 Available-for-sale securities: Certificates of deposit — 1,230 — 1,230 Derivatives - asset position — 261 — 261 Derivatives - liability position — (17 ) — (17 ) Acquisition-related contingent consideration — — (761 ) (761 ) $ 40,412 $ 1,474 $ (761 ) $ 41,125 |
Rollforward of Level 3 Contingent Consideration Liabilities | A roll forward of the Level 3 contingent liabilities, both short- and long-term, for the six months ended October 31, 2020 is as follows: Acquisition-related contingent consideration as of May 2, 2020 $ 761 Additions 83 Settlements (400 ) Interest 12 Acquisition-related contingent consideration as of October 31, 2020 $ 456 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2020USD ($) | Aug. 01, 2020USD ($) | Oct. 31, 2020USD ($) | May 02, 2020USD ($) | Nov. 02, 2019USD ($) | Apr. 27, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Cash and cash equivalents | $ 69,836 | $ 69,836 | $ 40,398 | $ 29,265 | ||
Restricted cash | 3,617 | 3,617 | 14 | 59 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | 73,453 | 73,453 | $ 40,412 | $ 29,324 | $ 35,742 | |
Long-term Line of Credit | $ 15,000 | $ 15,000 | ||||
Number of employees, voluntary retirement | 60 | |||||
Voluntary retirement cost | $ 931 | |||||
Number of employees, reduction in force | 150 | 108 | ||||
Severance Costs | $ 2,742 | $ 1,426 | ||||
Governmental Wage Subsidy | 566 | 812 | ||||
Payroll Tax, Employer, Deferral, CARES Act | 3,976 | $ 3,976 | ||||
Balance as of May 2, 2020 | $ 2,828 | 2,828 | ||||
Charged to costs and expenses | 1,428 | |||||
Deductions (1) | (1,040) | |||||
Balance as of October 31, 2020 | $ 3,216 | $ 3,216 |
Investments in Affiliates (Deta
Investments in Affiliates (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | May 02, 2020 | |
Equity and Cost Method Investments [Abstract] | |||
Equity Method Investments | $ 16,112 | $ 17,257 | |
Equity in loss of affiliate | (1,145) | $ (241) | |
Related Party Transaction, Amounts of Transaction | $ 560 |
Earnings Per Share EPS - Reconc
Earnings Per Share EPS - Reconciliation of Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2020 | Aug. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Net income | ||||||
Basic earnings per share | $ 3,416 | $ 7,467 | $ 7,274 | $ 7,030 | $ 10,883 | $ 14,304 |
Dilution associated with stock compensation plans | 0 | 0 | 0 | 0 | ||
Diluted earnings per share | $ 3,416 | $ 7,274 | $ 10,883 | $ 14,304 | ||
Shares | ||||||
Basic earnings per share (in shares) | 44,893 | 45,115 | 44,808 | 45,114 | ||
Dilution associated with stock compensation plans (in shares) | 84 | 152 | 139 | 247 | ||
Diluted earnings per share (in shares) | 44,977 | 45,267 | 44,947 | 45,361 | ||
Per share income | ||||||
Basic earnings per share (in dollars per share) | $ 0.08 | $ 0.16 | $ 0.24 | $ 0.32 | ||
Dilution associated with stock compensation plans (in dollars per share) | 0 | 0 | 0 | 0 | ||
Diluted earnings per share (in dollars per share) | $ 0.08 | $ 0.16 | $ 0.24 | $ 0.32 |
Earnings Per Share EPS - Antidi
Earnings Per Share EPS - Antidilutive Shares Excluded (Details) - Stock Options - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,348 | 2,282 | 2,233 | 2,238 |
Antidilutive securities excluded from computation of earnings per share, weighted average exercise price (dollars per share) | $ 9.28 | $ 9.90 | $ 9.61 | $ 9.97 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | $ 127,367 | $ 174,911 | $ 271,011 | $ 355,167 |
Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 64,078 | 83,606 | 128,105 | 159,913 |
Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 63,289 | 91,305 | 142,906 | 195,254 |
Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 30,356 | 39,651 | 64,862 | 83,686 |
Commercial | Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 23,226 | 27,304 | 46,118 | 55,007 |
Commercial | Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 7,130 | 12,347 | 18,744 | 28,679 |
Live Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 37,822 | 59,319 | 89,296 | 118,625 |
Live Events | Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 6,736 | 13,169 | 12,950 | 22,289 |
Live Events | Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 31,086 | 46,150 | 76,346 | 96,336 |
High School Park and Recreation | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 27,578 | 30,193 | 56,521 | 60,658 |
High School Park and Recreation | Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 19,718 | 22,112 | 39,086 | 44,711 |
High School Park and Recreation | Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 7,860 | 8,081 | 17,435 | 15,947 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 15,323 | 20,330 | 29,821 | 39,348 |
Transportation | Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 5,930 | 7,521 | 12,304 | 14,218 |
Transportation | Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 9,393 | 12,809 | 17,517 | 25,130 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 16,288 | 25,418 | 30,511 | 52,850 |
International | Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 8,468 | 13,500 | 17,647 | 23,688 |
International | Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 7,820 | 11,918 | 12,864 | 29,162 |
Unique Configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 51,243 | 78,567 | 121,349 | 170,724 |
Unique Configuration | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 3,508 | 9,007 | 12,235 | 21,972 |
Unique Configuration | Live Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 27,302 | 41,413 | 69,277 | 87,000 |
Unique Configuration | High School Park and Recreation | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 5,091 | 5,186 | 12,759 | 11,216 |
Unique Configuration | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 8,975 | 12,419 | 16,699 | 24,316 |
Unique Configuration | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 6,367 | 10,542 | 10,379 | 26,220 |
Limited Configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 62,967 | 82,801 | 126,548 | 158,066 |
Limited Configuration | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 22,611 | 26,654 | 45,166 | 53,889 |
Limited Configuration | Live Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 4,611 | 11,513 | 10,030 | 19,226 |
Limited Configuration | High School Park and Recreation | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 21,696 | 24,127 | 42,384 | 47,927 |
Limited Configuration | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 5,825 | 7,383 | 12,091 | 13,970 |
Limited Configuration | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 8,224 | 13,124 | 16,877 | 23,054 |
Service and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 13,157 | 13,543 | 23,114 | 26,377 |
Service and Other | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 4,237 | 3,990 | 7,461 | 7,825 |
Service and Other | Live Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 5,909 | 6,393 | 9,989 | 12,399 |
Service and Other | High School Park and Recreation | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 791 | 880 | 1,378 | 1,515 |
Service and Other | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 523 | 528 | 1,031 | 1,062 |
Service and Other | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | $ 1,697 | $ 1,752 | $ 3,255 | $ 3,576 |
Revenue Recognition Contract wi
Revenue Recognition Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | May 02, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 26,707 | $ 35,467 |
Contract liabilities - current | 47,107 | 50,897 |
Contract liabilities - noncurrent | 10,741 | $ 10,707 |
Dollar Change | ||
Contract assets | (8,760) | |
Contract liabilities - current | (3,790) | |
Contract liabilities - noncurrent | $ 34 | |
Change in Contract with Customer, Asset and Liability, Percentage [Abstract] | ||
Contract assets percent change | (24.70%) | |
Contract liabilities, current, percent change | (7.40%) | |
Contract liabilities, noncurrent, percent change | 0.30% | |
Revenue recognized related to contract liability | $ 37,973 |
Revenue Recognition Deferred Re
Revenue Recognition Deferred Revenue, by Arrangement (Details) $ in Thousands | 6 Months Ended |
Oct. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at beginning of period | $ 24,490 |
New contracts sold | 20,756 |
Less: reductions for revenue recognized | 20,290 |
Foreign currency translation and other | 560 |
Balance at end of period | $ 25,516 |
Revenue Recognition Remaining P
Revenue Recognition Remaining Performance Obligations (Details) $ in Thousands | Oct. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 254,253 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, service agreements | 53,748 |
Remaining performance obligation, products | 200,505 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-02 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 211,663 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation recognition period | 12 months |
Segment Disclosure - Net Income
Segment Disclosure - Net Income by Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2020USD ($) | Aug. 01, 2020USD ($) | Nov. 02, 2019USD ($) | Aug. 03, 2019USD ($) | Oct. 31, 2020USD ($)segment | Nov. 02, 2019USD ($) | |
Segment Reporting Information | ||||||
Number of business units | segment | 5 | |||||
Net sales | $ 127,367 | $ 174,911 | $ 271,011 | $ 355,167 | ||
Gross profit | 33,314 | 40,087 | 69,075 | 85,592 | ||
Non-allocated operating expenses: | ||||||
General and administrative | 7,264 | 8,965 | 14,388 | 18,058 | ||
Product design and development | 6,737 | 10,121 | 14,269 | 20,621 | ||
Operating income | 6,659 | 4,824 | 16,208 | 12,439 | ||
Nonoperating (expense) income: | ||||||
Interest income | 66 | 162 | 151 | 431 | ||
Interest expense | (84) | (31) | (157) | (66) | ||
Other (expense) income, net | (837) | (514) | (1,464) | (321) | ||
Income before income taxes | 5,804 | 4,441 | 14,738 | 12,483 | ||
Income tax expense (benefit) | 2,388 | (2,833) | 3,855 | (1,821) | ||
Net income | 3,416 | $ 7,467 | 7,274 | $ 7,030 | 10,883 | 14,304 |
Operating Segments | ||||||
Segment Reporting Information | ||||||
Net sales | 127,367 | 174,911 | 271,011 | 355,167 | ||
Gross profit | 33,314 | 40,087 | 69,075 | 85,592 | ||
Contribution Margin | 20,660 | 23,910 | 44,865 | 51,118 | ||
Depreciation and amortization | ||||||
Depreciation, amortization, and impairment | 4,227 | 4,341 | 8,564 | 8,724 | ||
Operating Segments | Commercial | ||||||
Segment Reporting Information | ||||||
Net sales | 30,356 | 39,651 | 64,862 | 83,686 | ||
Gross profit | 8,578 | 7,862 | 16,320 | 17,080 | ||
Contribution Margin | 4,781 | 2,853 | 9,222 | 6,937 | ||
Depreciation and amortization | ||||||
Depreciation, amortization, and impairment | 721 | 895 | 1,493 | 1,869 | ||
Operating Segments | Live Events | ||||||
Segment Reporting Information | ||||||
Net sales | 37,822 | 59,319 | 89,296 | 118,625 | ||
Gross profit | 7,300 | 11,934 | 16,654 | 24,671 | ||
Contribution Margin | 4,881 | 8,362 | 12,019 | 17,234 | ||
Depreciation and amortization | ||||||
Depreciation, amortization, and impairment | 1,424 | 1,394 | 2,875 | 2,792 | ||
Operating Segments | High School Park and Recreation | ||||||
Segment Reporting Information | ||||||
Net sales | 27,578 | 30,193 | 56,521 | 60,658 | ||
Gross profit | 8,497 | 9,224 | 18,973 | 19,411 | ||
Contribution Margin | 5,951 | 5,988 | 13,866 | 12,580 | ||
Depreciation and amortization | ||||||
Depreciation, amortization, and impairment | 492 | 507 | 988 | 1,019 | ||
Operating Segments | Transportation | ||||||
Segment Reporting Information | ||||||
Net sales | 15,323 | 20,330 | 29,821 | 39,348 | ||
Gross profit | 5,312 | 7,003 | 10,455 | 13,757 | ||
Contribution Margin | 4,446 | 5,895 | 8,827 | 11,347 | ||
Depreciation and amortization | ||||||
Depreciation, amortization, and impairment | 234 | 252 | 471 | 516 | ||
Operating Segments | International | ||||||
Segment Reporting Information | ||||||
Net sales | 16,288 | 25,418 | 30,511 | 52,850 | ||
Gross profit | 3,627 | 4,064 | 6,673 | 10,673 | ||
Contribution Margin | 601 | 812 | 931 | 3,020 | ||
Depreciation and amortization | ||||||
Depreciation, amortization, and impairment | 701 | 563 | 1,394 | 1,087 | ||
Operating Segments | Unallocated | ||||||
Depreciation and amortization | ||||||
Depreciation, amortization, and impairment | $ 655 | $ 730 | $ 1,343 | $ 1,441 |
Segment Disclosure - Net Sales
Segment Disclosure - Net Sales and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | May 02, 2020 | |
Net sales: | |||||
Net sales | $ 127,367 | $ 174,911 | $ 271,011 | $ 355,167 | |
Long-lived assets: | |||||
Long-lived assets | 64,475 | 64,475 | $ 67,484 | ||
United States | |||||
Net sales: | |||||
Net sales | 108,453 | 147,106 | 236,522 | 296,566 | |
Long-lived assets: | |||||
Long-lived assets | 55,522 | 55,522 | 58,422 | ||
Outside United States | |||||
Net sales: | |||||
Net sales | 18,914 | $ 27,805 | 34,489 | $ 58,601 | |
Long-lived assets: | |||||
Long-lived assets | $ 8,953 | $ 8,953 | $ 9,062 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 6 Months Ended |
Oct. 31, 2020USD ($) | |
Goodwill | |
Balance as of May 2, 2020 | $ 7,743 |
Foreign currency translation | 307 |
Balance as of October 31, 2020 | 8,050 |
Live Events | |
Goodwill | |
Balance as of May 2, 2020 | 2,266 |
Foreign currency translation | 15 |
Balance as of October 31, 2020 | 2,281 |
Commercial | |
Goodwill | |
Balance as of May 2, 2020 | 3,144 |
Foreign currency translation | 106 |
Balance as of October 31, 2020 | 3,250 |
Transportation | |
Goodwill | |
Balance as of May 2, 2020 | 38 |
Foreign currency translation | 15 |
Balance as of October 31, 2020 | 53 |
International | |
Goodwill | |
Balance as of May 2, 2020 | 2,295 |
Foreign currency translation | 171 |
Balance as of October 31, 2020 | $ 2,466 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2020 | May 02, 2020 | |
Receivables | ||
Allowance for doubtful accounts | $ 3,216 | $ 2,828 |
Retainage on construction-type contracts, expected to be collected in one year | 621 | 687 |
Financing Receivable | ||
Receivables | ||
Long-term contracts and lease receivables, present value | 3,033 | 4,633 |
Long-term contracts and lease receivables, face amount | $ 3,192 | $ 5,166 |
Financing Receivable | Minimum | ||
Receivables | ||
Contract and lease receivables annual interest rates | 5.00% | |
Financing Receivable | Maximum | ||
Receivables | ||
Contract and lease receivables annual interest rates | 9.00% |
Financing Agreements (Details)
Financing Agreements (Details) $ in Thousands | Oct. 31, 2020USD ($) |
Line of Credit Facility [Line Items] | |
Long-term Line of Credit | $ 15,000 |
Line of Credit | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 35,000 |
Standby Letters of Credit | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 20,000 |
Long-term Line of Credit | $ 6,853 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Jun. 17, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 40,000 | ||
Stock Repurchased During Period, Shares | 0 | 270 | |
Stock Repurchased During Period, Value | $ 1,682 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 32,539 |
Commitments and Contingencies -
Commitments and Contingencies - Litigation (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | May 02, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency, Estimate of Possible Loss | $ 2,166 | $ 2,072 |
Commitments and Contingencies_2
Commitments and Contingencies - Guarantees and Warranties (Details) $ in Thousands | 6 Months Ended |
Oct. 31, 2020USD ($) | |
Movement in Standard Product Warranty Accrual | |
Beginning accrued warranty obligations | $ 25,624 |
Warranties issued during the period | 5,001 |
Settlements made during the period | (2,817) |
Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations | (1,208) |
Ending accrued warranty obligations | 26,600 |
Letter of credit | |
Guarantees: | |
Performance guarantees outstanding | 6,853 |
Guarantees | |
Guarantees: | |
Performance guarantees outstanding | 3,122 |
Surety bonds | |
Guarantees: | |
Performance guarantees outstanding | $ 31,314 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 41.10% | (63.80%) | 26.20% | (14.60%) |
Unrecognized tax benefits that would affect our effective tax rate if recognized | $ 697 | $ 697 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Recurring Basis - USD ($) $ in Thousands | Oct. 31, 2020 | May 02, 2020 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | $ 69,836 | $ 40,398 |
Restricted cash | 3,617 | 14 |
Derivatives - asset position | 41 | 261 |
Derivatives - liability position | (31) | (17) |
Acquisition-related contingent consideration | (456) | (761) |
Assets (Liabilities), net | 73,990 | 41,125 |
Reported Value Measurement [Member] | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale securities: | 983 | 1,230 |
Estimate of Fair Value Measurement [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 69,836 | 40,398 |
Restricted cash | 3,617 | 14 |
Derivatives - asset position | 0 | 0 |
Derivatives - liability position | 0 | 0 |
Acquisition-related contingent consideration | 0 | 0 |
Assets (Liabilities), net | 73,453 | 40,412 |
Estimate of Fair Value Measurement [Member] | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Derivatives - asset position | 41 | 261 |
Derivatives - liability position | (31) | (17) |
Acquisition-related contingent consideration | 0 | 0 |
Assets (Liabilities), net | 993 | 1,474 |
Estimate of Fair Value Measurement [Member] | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale securities: | 983 | 1,230 |
Estimate of Fair Value Measurement [Member] | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Derivatives - asset position | 0 | 0 |
Derivatives - liability position | 0 | 0 |
Acquisition-related contingent consideration | (456) | (761) |
Assets (Liabilities), net | (456) | (761) |
Estimate of Fair Value Measurement [Member] | Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale securities: | $ 0 | $ 0 |
Fair Value Measurement - Roll F
Fair Value Measurement - Roll Forward of the Level 3 Contingent Consideration Liability (Details) - Estimate of Fair Value Measurement [Member] - Level 3 - Recurring Basis - Contingent Consideration Liability $ in Thousands | 6 Months Ended |
Oct. 31, 2020USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Acquisition-related contingent consideration as of May 2, 2020 | $ 761 |
Additions | 83 |
Settlements | (400) |
Interest | 12 |
Acquisition-related contingent consideration as of October 31, 2020 | $ 456 |