Cover
Cover - shares | 6 Months Ended | |
Oct. 28, 2023 | Nov. 27, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 28, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-23246 | |
Entity Registrant Name | Daktronics, Inc. | |
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 | 46,180,166 | |
Entity Central Index Key | 0000915779 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-27 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | DAKT | |
Security Exchange Name | NASDAQ | |
Preferred Stock | ||
Document 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. 28, 2023 | Apr. 29, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 64,740 | $ 23,982 |
Restricted cash | 8,246 | 708 |
Marketable securities | 546 | 534 |
Accounts receivable, net | 115,052 | 109,979 |
Inventories | 141,646 | 149,448 |
Contract assets | 45,210 | 46,789 |
Current maturities of long-term receivables | 766 | 1,215 |
Prepaid expenses and other current assets | 10,137 | 9,676 |
Income tax receivables | 0 | 326 |
Total current assets | 386,343 | 342,657 |
Property and equipment, net | 72,619 | 72,147 |
Long-term receivables, less current maturities | 151 | 264 |
Goodwill | 3,198 | 3,239 |
Intangibles, net | 970 | 1,136 |
Debt issuance costs, net | 3,150 | 3,866 |
Investment in affiliates and other assets | 27,705 | 27,928 |
Deferred income taxes | 16,812 | 16,867 |
TOTAL ASSETS | 510,948 | 468,104 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 1,500 | 0 |
Accounts payable | 53,645 | 67,522 |
Contract liabilities | 78,293 | 91,549 |
Accrued expenses | 39,773 | 36,005 |
Warranty obligations | 13,378 | 12,228 |
Income taxes payable | 3,347 | 2,859 |
Total current liabilities | 189,936 | 210,163 |
Long-term warranty obligations | 21,435 | 20,313 |
Long-term contract liabilities | 15,390 | 13,096 |
Other long-term obligations | 5,686 | 5,709 |
Long-term debt, net | 55,087 | 17,750 |
Deferred income taxes | 193 | 195 |
Total long-term liabilities | 97,791 | 57,063 |
SHAREHOLDERS' EQUITY: | ||
Preferred Shares, no par value, authorized 50,000 shares; no shares issued and outstanding | 0 | 0 |
Common Stock, no par value, authorized 115,000,000 shares; 46,022,885 and 45,488,595 shares issued at October 28, 2023 and April 29, 2023, respectively | 64,643 | 63,023 |
Additional paid-in capital | 51,047 | 50,259 |
Retained earnings | 124,771 | 103,410 |
Treasury Stock, at cost, 1,907,445 shares at October 28, 2023 and April 29, 2023, respectively | (10,285) | (10,285) |
Accumulated other comprehensive loss | (6,955) | (5,529) |
TOTAL SHAREHOLDERS' EQUITY | 223,221 | 200,878 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 510,948 | $ 468,104 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - shares | Oct. 28, 2023 | Apr. 29, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 115,000,000 | 115,000,000 |
Common stock, shares, issued (in shares) | 46,022,885 | 45,488,595 |
Treasury stock, shares (in shares) | 1,907,445 | 1,907,445 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 199,369 | $ 187,439 | $ 431,900 | $ 359,359 |
Cost of sales | 145,170 | 155,735 | 306,554 | 301,861 |
Gross profit | 54,199 | 31,704 | 125,346 | 57,498 |
Operating expenses: | ||||
Selling | 14,653 | 14,525 | 27,582 | 28,958 |
General and administrative | 10,889 | 8,687 | 20,488 | 18,128 |
Product design and development | 9,221 | 6,966 | 17,624 | 14,405 |
Operating expenses | 34,763 | 30,178 | 65,694 | 61,491 |
Operating income (loss) | 19,436 | 1,526 | 59,652 | (3,993) |
Nonoperating (expense) income: | ||||
Interest (expense) income, net | (1,326) | (263) | (2,207) | (323) |
Change in fair value of convertible note | (10,650) | 0 | (17,910) | 0 |
Other expense and debt issuance costs write-off, net | (1,303) | (208) | (5,282) | (955) |
Income (loss) before income taxes | 6,157 | 1,055 | 34,253 | (5,271) |
Income tax expense | 3,992 | 14,039 | 12,892 | 13,039 |
Net income (loss) | $ 2,165 | $ (12,984) | $ 21,361 | $ (18,310) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 46,030,000 | 45,317,000 | 45,838,000 | 45,258,000 |
Diluted (in shares) | 46,705,000 | 45,317,000 | 46,454,000 | 45,258,000 |
Earnings (loss) per share: | ||||
Basic (in usd per share) | $ 0.05 | $ (0.29) | $ 0.47 | $ (0.40) |
Diluted (in usd per share) | $ 0.05 | $ (0.29) | $ 0.46 | $ (0.40) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,165 | $ (12,984) | $ 21,361 | $ (18,310) |
Other comprehensive (loss): | ||||
Cumulative translation adjustments | (1,190) | (1,521) | (1,442) | (2,163) |
Unrealized gain (loss) on available-for-sale securities, net of tax | 9 | (1) | 16 | 0 |
Total other comprehensive (loss), net of tax | (1,181) | (1,522) | (1,426) | (2,163) |
Comprehensive income (loss) | $ 984 | $ (14,506) | $ 19,935 | $ (20,473) |
Condensed Consolidated Statem_3
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 beginning at Apr. 30, 2022 | $ 191,564 | $ 61,794 | $ 48,372 | $ 96,608 | $ (10,285) | $ (4,925) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (5,326) | (5,326) | ||||
Cumulative translation adjustments | (642) | (642) | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 1 | 1 | ||||
Share-based compensation | 511 | 511 | ||||
Employee savings plan activity | 594 | 594 | ||||
Balance ending at Jul. 30, 2022 | 186,702 | 62,388 | 48,883 | 91,282 | (10,285) | (5,566) |
Balance beginning at Apr. 30, 2022 | 191,564 | 61,794 | 48,372 | 96,608 | (10,285) | (4,925) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (18,310) | |||||
Cumulative translation adjustments | (2,163) | |||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 0 | |||||
Balance ending at Oct. 29, 2022 | 172,530 | 62,388 | 49,217 | 78,298 | (10,285) | (7,088) |
Balance beginning at Jul. 30, 2022 | 186,702 | 62,388 | 48,883 | 91,282 | (10,285) | (5,566) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (12,984) | (12,984) | ||||
Cumulative translation adjustments | (1,521) | (1,521) | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (1) | (1) | ||||
Share-based compensation | 474 | 474 | ||||
Tax payments related to RSU issuances | (140) | (140) | ||||
Balance ending at Oct. 29, 2022 | 172,530 | 62,388 | 49,217 | 78,298 | (10,285) | (7,088) |
Balance beginning at Apr. 29, 2023 | 200,878 | 63,023 | 50,259 | 103,410 | (10,285) | (5,529) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 19,196 | 19,196 | ||||
Cumulative translation adjustments | (252) | (252) | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 7 | 7 | ||||
Share-based compensation | 557 | 557 | ||||
Exercise of stock options | 46 | 46 | ||||
Employee savings plan activity | 615 | 615 | ||||
Balance ending at Jul. 29, 2023 | 221,047 | 63,684 | 50,816 | 122,606 | (10,285) | (5,774) |
Balance beginning at Apr. 29, 2023 | 200,878 | 63,023 | 50,259 | 103,410 | (10,285) | (5,529) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 21,361 | |||||
Cumulative translation adjustments | (1,442) | |||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 16 | |||||
Balance ending at Oct. 28, 2023 | 223,221 | 64,643 | 51,047 | 124,771 | (10,285) | (6,955) |
Balance beginning at Jul. 29, 2023 | 221,047 | 63,684 | 50,816 | 122,606 | (10,285) | (5,774) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,165 | 2,165 | ||||
Cumulative translation adjustments | (1,190) | (1,190) | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 9 | 9 | ||||
Share-based compensation | 534 | 534 | ||||
Exercise of stock options | 959 | 959 | ||||
Tax payments related to RSU issuances | (303) | (303) | ||||
Balance ending at Oct. 28, 2023 | $ 223,221 | $ 64,643 | $ 51,047 | $ 124,771 | $ (10,285) | $ (6,955) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 21,361 | $ (18,310) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 9,494 | 8,225 |
Loss (gain) on sale of property, equipment and other assets | 101 | (412) |
Share-based compensation | 1,091 | 985 |
Equity in loss of affiliates | 1,461 | 1,701 |
Provision for doubtful accounts, net | 240 | 573 |
Deferred income taxes, net | 20 | 13,037 |
Non-cash impairment charges | 654 | 0 |
Change in fair value of convertible note | 17,910 | 0 |
Debt issuance costs write-off | 3,353 | 0 |
Change in operating assets and liabilities | (11,374) | (27,737) |
Net cash provided by (used in) operating activities | 44,311 | (21,938) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (9,226) | (16,237) |
Proceeds from sales of property, equipment and other assets | 52 | 432 |
Proceeds from sales or maturities of marketable securities | 0 | 3,495 |
Purchases of equity and loans to equity investees | (2,899) | (2,882) |
Net cash used in investing activities | (12,073) | (15,192) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings on notes payable | 40,000 | 190,608 |
Payments on notes payable | (18,125) | (164,190) |
Principal payments on long-term obligations | (204) | 0 |
Debt issuance costs | (6,454) | 0 |
Proceeds from exercise of stock options | 1,005 | 0 |
Tax payments related to RSU issuances | (303) | (140) |
Net cash provided by financing activities | 15,919 | 26,278 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 139 | (13) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 48,296 | (10,865) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | ||
Beginning of period | 24,690 | 18,008 |
End of period | 72,986 | 7,143 |
Cash paid for: | ||
Interest | 1,027 | 337 |
Income taxes, net of refunds | 11,874 | 2,471 |
Supplemental schedule of non-cash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable | 1,443 | 4,093 |
Contributions of common stock under the ESPP | $ 614 | $ 594 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Daktronics, Inc. and its subsidiaries (the “Company”, “Daktronics”, “we”, “our”, or “us”) are industry leaders 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 accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Estimates used in the preparation of the unaudited consolidated financial statements include, among others, revenue recognition, future warranty expenses, the fair value of long-term debt, the fair value of investments in affiliates, income tax expenses, and stock-based compensation. 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 April 29, 2023 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 fiscal year ended April 29, 2023, 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 fiscal 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 six months ended October 28, 2023 and October 29, 2022 contained operating results for 26 weeks. 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 April 29, 2023. Cash and cash equivalents and restricted cash 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. Restricted cash consists of cash and cash equivalents held in bank deposit accounts to secure issuances of foreign bank guarantees and letters of credit outstanding under a previous credit agreement. October 28, October 29, Cash and cash equivalents $ 64,740 $ 6,431 Restricted cash 8,246 712 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 72,986 $ 7,143 The increase in the restricted cash balance is due to bank guarantees or other financial instruments for display installations issued by other banks and secured by restricted cash deposits. We have foreign currency cash accounts to operate our global business. These accounts are impacted by changes in foreign currency rates. Of our $64,740 in cash and cash equivalent balances as of October 28, 2023, $54,245 were denominated in United States dollars, of which $737 were held by our foreign subsidiaries. As of October 28, 2023, we had an additional $10,495 in cash balances denominated in foreign currencies, of which $8,466 were maintained in accounts of our foreign subsidiaries. Recent Accounting Pronouncements Accounting Standards Adopted In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 simplified the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplified the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in Accounting Standards Codification ("ASC") 470-20, Debt: Debt with Conversion and Other Options , that required entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revised the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity by removing certain criteria required for equity classification; and (3) revised the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share ("EPS") for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 was effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption was permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 was effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. In the first quarter of fiscal 2024, we adopted ASU 2020-06. Upon adoption, we prospectively utilized the if-converted method to calculate the dilutive impact of our convertible note issued on May 11, 2023 (the "Convertible Note"). See "Note 6. Financing Agreements" of the Notes to our Condensed Consolidated Financial Statements included in this Form 10-Q for further information on the Convertible Note. Accounting Standards Not Yet Adopted |
Investments in Affiliates
Investments in Affiliates | 6 Months Ended |
Oct. 28, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in Affiliates | Investments in Affiliates We evaluated the nature of our investment in affiliates of Xdisplay TM , which is developing micro-LED mass transfer expertise and technologies, and Miortech (dba Etulipa), which is developing low power outdoor electrowetting technology. We determined that Miortech is a variable interest entity (VIE), and, based on management's analysis, we determined that Daktronics is not the primary beneficiary; therefore, the investment in Miortech is accounted for under the equity method. The aggregate amount of our investments accounted for under the equity method was $9,819 and $11,934 as of October 28, 2023 and April 29, 2023, respectively. Our proportional share of the respective affiliates' earnings or losses is included in the "Other expense and debt issuance costs write-off, net" line item in our condensed consolidated statements of operations. For the three and six months ended October 28, 2023, our share of the losses of our affiliates was $771 and $1,461 as compared to $811 and $1,701 for the three and six months ended October 29, 2022. We purchased services for research and development activities from our equity method investees. The total of these related party transactions for the six months ended October 28, 2023 and October 29, 2022 was $123 and $672, respectively, which is included in the "Product design and development" line item in our condensed consolidated statements of operations, and for the six months ended October 28, 2023, $14 remains unpaid and is included in the "Accounts payable" line item in our condensed consolidated balance sheets. During the six months ended October 28, 2023, we invested $2,250 in convertible notes and $649 in promissory notes (collectively, the "Affiliate Notes") of our affiliates, which is included in the "Investment in affiliates and other assets" line item in our condensed consolidated balance sheets. During the six months ended October 28, 2023, we did not convert any Affiliate Notes to stock ownership. Our ownership in Miortech was 55.9 percent and in Xdisplay TM was 16.4 percent as of October 28, 2023. The total amount of Affiliate Notes as of October 28, 2023 was $11,663 and is included in the "Investments in affiliates and other assets" line item in our condensed consolidated balance sheets. The Affiliate Notes balance combined with the investment in affiliates balance totaled $21,483 and $25,343 as of October 28, 2023 and October 29, 2022, respectively. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 6 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | Earnings Per Share ("EPS") In the first quarter of fiscal 2024, we adopted ASU 2020-06. Upon adoption, we prospectively utilized the if-converted method to calculate the dilutive impact of our Convertible Note. See "Note 6. Financing Agreements" of the Notes to our Condensed Consolidated Financial Statements included in this Form 10-Q for further information on the Convertible Note. Under the if-converted method, the Convertible Note is assumed to be converted into common stock at the beginning of the reporting period, and the resulting shares are included in the denominator of the calculation. In addition, interest charges, net of any income tax effects, are added back to the numerator of the calculation. The following is a reconciliation of the net income (loss) and common share amounts used in the calculation of basic and diluted EPS for the three and six months ended October 28, 2023 and October 29, 2022: Three Months Ended Six Months Ended October 28, October 29, October 28, October 29, Earnings per share - basic Net income (loss) $ 2,165 $ (12,984) $ 21,361 $ (18,310) Weighted average shares outstanding 46,030 45,317 45,838 45,258 Basic earnings (loss) per share $ 0.05 $ (0.29) $ 0.47 $ (0.40) Earnings per share - diluted Net income (loss) $ 2,165 $ (12,984) $ 21,361 $ (18,310) Diluted net income (loss) $ 2,165 $ (12,984) $ 21,361 $ (18,310) Weighted average common shares outstanding 46,030 45,317 45,838 45,258 Dilution associated with stock compensation plans 675 — 616 — Dilution associated with convertible note — — — — Weighted average common shares outstanding, assuming dilution 46,705 45,317 46,454 45,258 Diluted earnings (loss) per share $ 0.05 $ (0.29) $ 0.46 $ (0.40) Options outstanding to purchase 521 shares of common stock with a weighted average exercise price of $10.76 for the three months ended October 28, 2023 and 2,063 shares of common stock with a weighted average exercise price of $7.51 for the three months ended October 29, 2022 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. Options outstanding to purchase 1,039 shares of common stock with a weighted average exercise price of $9.53 for the six months ended October 28, 2023 and 2,082 shares of common stock with a weighted average exercise price of $7.82 for the six months ended October 29, 2022 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Oct. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 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 28, 2023 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 9,511 $ 47,496 $ 11,539 $ 11,047 $ 9,993 $ 89,586 Limited configuration 28,752 13,771 36,277 8,469 7,302 94,571 Service and other 4,190 6,943 1,126 727 2,226 15,212 $ 42,453 $ 68,210 $ 48,942 $ 20,243 $ 19,521 $ 199,369 Timing of revenue recognition Goods/services transferred at a point in time $ 29,379 $ 15,390 $ 34,722 $ 8,592 $ 7,919 $ 96,002 Goods/services transferred over time 13,074 52,820 14,220 11,651 11,602 103,367 $ 42,453 $ 68,210 $ 48,942 $ 20,243 $ 19,521 $ 199,369 Six Months Ended October 28, 2023 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 22,429 $ 124,043 $ 26,658 $ 23,631 $ 18,783 $ 215,544 Limited configuration 58,665 23,732 76,614 16,536 12,541 188,088 Service and other 8,242 12,434 1,904 1,445 4,243 28,268 $ 89,336 $ 160,209 $ 105,176 $ 41,612 $ 35,567 $ 431,900 Timing of revenue recognition Goods/services transferred at a point in time $ 60,397 $ 26,167 $ 73,803 $ 16,859 $ 13,762 $ 190,988 Goods/services transferred over time 28,939 134,042 31,373 24,753 21,805 240,912 $ 89,336 $ 160,209 $ 105,176 $ 41,612 $ 35,567 $ 431,900 Three Months Ended October 29, 2022 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 5,582 $ 52,862 $ 7,856 $ 11,398 $ 6,123 $ 83,821 Limited configuration 26,768 9,675 32,975 4,542 14,285 88,245 Service and other 4,697 6,702 1,175 739 2,060 15,373 $ 37,047 $ 69,239 $ 42,006 $ 16,679 $ 22,468 $ 187,439 Timing of revenue recognition Goods/services transferred at a point in time $ 28,078 $ 11,682 $ 31,129 $ 4,749 $ 15,019 $ 90,657 Goods/services transferred over time 8,969 57,557 10,877 11,930 7,449 96,782 $ 37,047 $ 69,239 $ 42,006 $ 16,679 $ 22,468 $ 187,439 Six Months Ended October 29, 2022 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 10,269 $ 95,030 $ 14,448 $ 23,884 $ 12,624 $ 156,255 Limited configuration 58,544 18,155 61,258 10,641 25,786 174,384 Service and other 8,352 12,437 2,109 1,694 4,128 28,720 $ 77,165 $ 125,622 $ 77,815 $ 36,219 $ 42,538 $ 359,359 Timing of revenue recognition Goods/services transferred at a point in time $ 60,635 $ 20,904 $ 58,219 $ 11,131 $ 26,895 $ 177,784 Goods/services transferred over time 16,530 104,718 19,596 25,088 15,643 181,575 $ 77,165 $ 125,622 $ 77,815 $ 36,219 $ 42,538 $ 359,359 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 28, April 29, Dollar Percent Contract assets $ 45,210 $ 46,789 $ (1,579) (3.4) % Contract liabilities - current 78,293 91,549 (13,256) (14.5) Contract liabilities - noncurrent 15,390 13,096 2,294 17.5 The changes in our contract assets and contract liabilities from April 29, 2023 to October 28, 2023 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 impairments of contract assets for the six months ended October 28, 2023. 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". Changes in unearned service-type warranty contracts, net were as follows: October 28, Balance as of April 29, 2023 $ 28,338 New contracts sold 27,921 Less: reductions for revenue recognized (21,802) Foreign currency translation and other (457) Balance as of October 28, 2023 $ 34,000 Contracts in progress identified as loss contracts as of October 28, 2023 and as of April 29, 2023 were immaterial. Loss provisions are recorded in the "Accrued expenses" line item in our condensed consolidated balance sheets. During the six months ended October 28, 2023, we recognized revenue of $77,788 related to our contract liabilities as of April 29, 2023. Remaining performance obligations |
Segment Reporting
Segment Reporting | 6 Months Ended |
Oct. 28, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting 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 28, October 29, October 28, October 29, Net sales: Commercial $ 42,453 $ 37,047 $ 89,336 $ 77,165 Live Events 68,210 69,239 160,209 125,622 High School Park and Recreation 48,942 42,006 105,176 77,815 Transportation 20,243 16,679 41,612 36,219 International 19,521 22,468 35,567 42,538 199,369 187,439 431,900 359,359 Gross profit: Commercial 7,231 6,197 20,000 11,018 Live Events 19,234 7,983 47,174 11,769 High School Park and Recreation 16,420 11,811 37,245 21,788 Transportation 6,780 4,084 13,869 9,922 International 4,534 1,629 7,058 3,001 54,199 31,704 125,346 57,498 Operating expenses: Selling 14,653 14,525 27,582 28,958 General and administrative 10,889 8,687 20,488 18,128 Product design and development 9,221 6,966 17,624 14,405 34,763 30,178 65,694 61,491 Operating income (loss) 19,436 1,526 59,652 (3,993) Nonoperating (expense) income: Interest (expense) income, net (1,326) (263) (2,207) (323) Change in fair value of convertible note (10,650) — (17,910) — Other expense and debt issuance costs write-off, net (1,303) (208) (5,282) (955) Income (loss) before income taxes $ 6,157 $ 1,055 $ 34,253 $ (5,271) Depreciation and amortization: Commercial $ 1,070 $ 834 $ 2,112 $ 1,637 Live Events 1,604 1,627 3,217 3,193 High School Park and Recreation 474 383 936 722 Transportation 174 128 342 253 International 572 566 1,138 1,111 Unallocated corporate depreciation and amortization 931 662 1,749 1,309 $ 4,825 $ 4,200 $ 9,494 $ 8,225 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 28, October 29, October 28, October 29, Net sales: United States $ 178,144 $ 163,142 $ 392,737 $ 312,580 Outside United States 21,225 24,297 39,163 46,779 $ 199,369 $ 187,439 $ 431,900 $ 359,359 October 28, April 29, Property and equipment, net of accumulated depreciation: United States $ 65,026 $ 63,786 Outside United States 7,593 8,361 $ 72,619 $ 72,147 We have numerous customers worldwide for sales of our products and services, and no customer accounted for 10 percent 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 percent or more of our cost of sales; however, we have a complex global supply chain subject to geopolitical and transportation risks and a number of single-source suppliers that could limit our supply or cause delays in obtaining raw materials and components needed in manufacturing. |
Financing Agreements
Financing Agreements | 6 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Financing Agreements Long-term debt consists of the following: October 28, April 29, ABL credit facility/prior line of credit $ — $ 17,750 Mortgage 14,625 — Convertible note 25,000 — Long-term debt, gross 39,625 17,750 Debt issuance costs, net (948) — Change in fair value of convertible note 17,910 — Current portion (1,500) — Long-term debt, net $ 55,087 $ 17,750 Credit Agreements On May 11, 2023, we closed on a $75,000 senior credit facility (the "Credit Facility"). The Credit Facility consists of a $60,000 asset-based revolving credit facility (the "ABL") maturing on May 11. 2026, secured by first priority lien on the Company's assets and which is subject to certain factors which can impact our borrowing capacity, and a $15,000 delayed draw loan (the "Delayed Draw Loan") secured by a first priority mortgage on our Brookings, South Dakota real estate (the "Mortgage"). The ABL and Delayed Draw Loan are evidenced by a Credit Agreement dated as of May 11, 2023 (the "Credit Agreement") between the Company and JPMorgan Chase Bank, N.A., as the lender. On May 11, 2023 the Company paid all amounts outstanding on the prior credit agreement, and this prior credit agreement was terminated as of this date. No gain or loss was recognized upon termination, and the Company incurred no early termination penalties in connection with such termination. Under the ABL, certain factors can impact our borrowing capacity. As of October 28, 2023, our borrowing capacity was $50,611, there were no borrowings outstanding and there was $5,875 used to secure letters of credit outstanding. The interest rate on the ABL is set on a sliding scale based on the trailing 12-month fixed charge coverage and ranges from 2.5 to 3.5 percent over the standard overnight financing rate (SOFR). The ABL is secured by a first priority lien on the Company's assets described in the Credit Agreement and the Pledge and Security Agreement dated as of May 11, 2023 by and among the Company, Daktronics Installation, Inc. and JPMorgan Chase Bank, N.A. The $15,000 Delayed Draw Loan was funded on July 7, 2023 and is secured by the Mortgage on the Company's Brookings, South Dakota real estate. It amortizes over 10 years and has monthly payments of $125. The Delayed Draw Loan is subject to the terms of the Credit Agreement and matures on May 11, 2026. The interest rate on the Delayed Draw Loan is set on a sliding scale based on the trailing 12-month fixed charge coverage ratio and ranges between 1.0 and 2.0 percent over the Commercial Bank Floating Rate (CBFR). Convertible Note On May 11, 2023, we issued $25,000 in aggregate principal amount evidenced by the secured Convertible Note due May 11, 2027. The Convertible Note holder (the "Holder") has a second priority lien on assets securing the ABL facility and a first priority lien on substantially all of the other assets of the Company, excluding all real property, subject to the Intercreditor Agreement dated as of May 11, 2023 by and among the Company, JPMorgan Chase Bank N.A., and the Holder of the Convertible Note. Conversion Features • The Convertible Note allows the Holder and any of the Holder’s permitted transferees, donees, pledgees, assignees or successors-in-interest (collectively, the “Selling Shareholders”) to convert all or any portion of the principal amount of the Convertible Note, together with any accrued and unpaid interest and any other unpaid amounts, including late charges, if any (together, the “Conversion Amount”), into shares of the Company’s common stock at an initial conversion price of $6.31 per share, subject to adjustment in accordance with the terms of the Convertible Note (the “Conversion Price”). • The Company also has a forced conversion right, which is exercisable on the occurrence of certain conditions set forth in the Convertible Note, pursuant to which it can cause all or any portion of the outstanding and unpaid Conversion Amount to be converted into shares of common stock at the Conversion Price. Additionally, if the Company fails other than by reason of a failure by the Holder to comply with its obligations, the Holder is permitted to cash payments from the Company until such conversion failure is cured. Redemption Features • If the Company were to have an Event of Default, as defined by the Convertible Note, then the Holder may require the Company to redeem all or any portion of the Convertible Note. • If the Company has a "Change of Control", as defined by the Convertible Note, then the Holder is entitled to payment of the outstanding amount of the Convertible Note at the "Change in Control Redemption Price," as defined in the Convertible Note. Interest Interest accruing under the Convertible Note is payable, at the option of the Company, in either (i) cash or (ii) a combination of cash interest and capitalized interest; provided, however, that at least fifty percent (50%) of the interest paid on each interest date must be paid as cash interest. The Convertible Note accrues interest quarterly at an annual rate of 9.0 percent when interest is paid in cash or an annual rate of 10.0 percent if interest is paid in kind. Upon an event of default under the Convertible Note, the annual interest rate will increase to 12.0 percent. The annual rate of 9.0 percent was used to calculate the interest accrued as of October 28, 2023, as interest will be paid in cash. We elected the fair value option to account for the Convertible Note as described in "Note 9. Fair Value Measurement" of the Notes to our Condensed Consolidated Financial Statements included in this Form 10-Q for further information. The financial liability was initially measured at its issue-date fair value and is subsequently remeasured at fair value on a recurring basis at each reporting period date. We have elected to present the fair value and the accrued interest component separately in the income statement. Therefore, interest will be recognized and accrued separately in interest expense, with changes in fair value of the Convertible Note presented in the "Change in fair value of convertible note" line item in our condensed consolidated statements of operations. The changes in fair value of the Convertible Note during the six months ended October 28, 2023 are as follows: Liability Component (in thousands) Balance as of May 11, 2023 $ 25,000 Redemption of convertible promissory note — Fair Value Change Recognized 17,910 Balance as of October 28, 2023 $ 42,910 The estimated fair value of the Convertible Note upon its issuance date of May 11, 2023 and as of October 28, 2023 was computed using a binomial lattice model which incorporates significant inputs that are not observable in the market, and thus represents a Level 3 measurement. We determined the fair value by using the following key assumptions in the binomial lattice model: Risk-Free Rate (Annual) 4.76 % Implied Yield 19.48 % Volatility (Annual) 55.00 % Dividend Yield (Annual) — % The Credit Agreement and the Convertible Note require a fixed charge coverage ratio of greater than 1.1 and include other customary non-financial covenants. As of October 28, 2023, we were in compliance with our financial covenants under the Credit Agreement and the Convertible Note. Debt Issuance Costs Debt issuance costs incurred and capitalized are amortized on a straight-line basis over the term of the associated debt agreement. If early principal payments or conversions occur, a proportional amount of unamortized debt issuance costs is expensed. As part of these financings, we capitalized $8,195 in debt issuance costs. During the six months ended October 28, 2023, due to the Convertible Note being accounted for at fair value, we expensed $3,353 of the related debt issuance costs which is included in the "Other expense and debt issuance costs write-off, net" line item in our condensed consolidated statements of operations. During the six months ended October 28, 2023, we amortized $744 of debt issuance costs. The remaining debt issuance costs of $4,098 are being amortized over the three-year term of the Credit Facility agreement. Fair Value and Future Maturities As of October 28, 2023 and April 29, 2023, the fair value of long-term debt, gross was $57,535 and $17,750, respectively. The fair value of the Convertible Note was $42,910 as of October 28, 2023. Aggregate contractual maturities of debt in future fiscal years are as follows: Fiscal years ending Amount Remainder of 2024 $ 750 2025 1,500 2026 1,500 2027 10,875 2028 25,000 2029 and beyond — Total senior secured notes and convertible notes $ 39,625 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation: We are a party to legal proceedings and claims which arise during the ordinary course of business. We review our legal proceedings and claims, regulatory reviews and inspections, and other legal matters on an ongoing basis and follow appropriate accounting guidance when making accrual and disclosure decisions. We establish accruals for those contingencies when the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued if such disclosure is necessary for our financial statements to not be misleading. We do not record an accrual when the likelihood of loss being incurred is probable, but the amount cannot be reasonably estimated, or when the loss is believed to be only reasonably possible or remote, although disclosures will be made for material matters as required by ASC 450-20, Contingencies - Loss Contingencies. Our assessment of whether a loss is reasonably possible or probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter following all appeals. For other unresolved legal proceedings or claims, we do not believe there is a reasonable probability that any material loss would 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 28, 2023 consisted of the following: October 28, Balance as of April 29, 2023 $ 32,541 Warranties issued during the period 7,781 Settlements made during the period (6,209) Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations 700 Balance as of October 28, 2023 $ 34,813 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 28, 2023, we had outstanding letters of credit, bank guarantees and surety bonds in the amount of $5,875, $558 and $40,633, 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 generally have a term of 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 28, 2023, we were not aware of any material indemnification claims. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the three and six months ended October 28, 2023 was a tax rate of 64.8 and 37.6 percent, respectively. Income before tax includes the impacts of the change in the Convertible Note fair value; however, these changes are not deductible, resulting in the high effective tax rate. The rates for the three and six months ended October 29, 2022 were skewed by the valuation allowance placed on deferred taxes. We operate both domestically and internationally and, as of October 28, 2023, undistributed earnings of our foreign subsidiaries were considered to be reinvested indefinitely. Additionally, as of October 28, 2023, we had $527 of unrecognized tax benefits which would reduce our effective tax rate if recognized. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 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 as of October 28, 2023 and April 29, 2023 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 28, 2023 Cash and cash equivalents $ 64,740 $ — $ — $ 64,740 Restricted cash 8,246 — — 8,246 Convertible Note Payable — — 42,910 42,910 Available-for-sale securities: US Government sponsored entities — 546 — 546 $ 72,986 $ 546 $ 42,910 $ 116,442 Balance as of April 29, 2023 Cash and cash equivalents $ 23,982 $ — $ — $ 23,982 Restricted cash 708 — — 708 Available-for-sale securities: US Government sponsored entities — 534 — 534 Derivatives - liability position — (579) — (579) $ 24,690 $ (45) $ — $ 24,645 We elected to value the Convertible Note at fair value in accordance with ASC 825-10-15-4(a) because of the embedded derivatives contained in the note. The fair value of the Convertible Note was estimated using a binomial lattice model. Binomial lattice allows for the examination of the value to a holder and understanding the investment decision that would occur at each node. The fair value of the Convertible Note entered into during the first quarter of fiscal 2024 was classified as Level 3 because it does not have readily determinable or observable inputs for the valuation. There have been no other changes in the valuation techniques used by us to value our financial instruments since the end of fiscal 2023. For additional information, see our Annual Report on Form 10-K for the fiscal year ended April 29, 2023 for the methods and assumptions used to estimate the fair value of each class of financial instrument. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Oct. 28, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Board has adopted a written policy and procedures with respect to related party transactions, which the Audit Committee oversees. Under the policy, a "related party transaction" is generally defined as a transaction, arrangement, or relationship in which the Company was, is or will be a participant; the amount involved exceeds $120; and in which any "related person" had, has or will have a direct or indirect material interest. The policy generally defines a "related person" as a Director, executive officer or beneficial owner of more than five percent of any class of our voting securities and any immediate family member of any of the foregoing persons. The Audit Committee reviews and, if appropriate, approves related party transactions, including certain transactions which are deemed to be pre-approved under the policy. On an annual basis, the Audit Committee reviews any previously approved related party transaction that is ongoing. As reported in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the section entitled “Liquidity and Capital Resources” of our Annual Report on Form 10-K for the fiscal year ended April 29, 2023, effective on May 11, 2023, the Company entered into the Securities Purchase Agreement with Alta Fox Opportunities Fund, LP, as the Holder of the Convertible Note. Under the Securities Purchase Agreement, the Company sold and issued to the Holder the Convertible Note in exchange for the payment by the Holder to the Company of $25,000. As of May 11, 2023, and based on Amendment No. 3 to the Schedule 13D filed by the Investor and its affiliates named therein on May 15, 2023 with the SEC, the Holder and its affiliates beneficially owned 4,768 shares of common stock of the Company, representing 9.99 percent of the Company’s common stock, causing the Holder to be a “related party” of the Company under the Company’s written policy and procedures and the applicable definitions under the Securities Act of 1933. The Securities Purchase Agreement, the Convertible Note, the Pledge and Security Agreement dated as of May 11, 2023 by and between the Holder and the Company, and the Registration Rights Agreement were approved in advance of their execution by the Company’s Strategy and Financing Review Committee, the members of which include all members of the Company’s Audit Committee. Since May 11, 2023 the largest aggregate amount outstanding under the Convertible Note was $25,563, consisting of $25,000 of principal and $563 of interest for a total of $25,563 outstanding. In the first six months of fiscal 2024, we have made interest payments of $563 under the Convertible Note. The description of the Securities Purchase Agreement, the Convertible Note, the Pledge and Security Agreement and the Registration Rights Agreement dated as of May 11, 2023 by and between the Holder and the Company and their respective terms set forth in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the section entitled “Liquidity and Capital Resources” of the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2023 is hereby incorporated by reference into this Report. In addition, the Company is a party to the Standstill and Voting Agreement dated as of March 19, 2023 with Alta Fox Management, LLC and Connor Haley (the “Standstill Agreement”). The Standstill Agreement is filed as Exhibit 10.13 to Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2023. As described in Amendment No. 3 (“Amendment No. 3”) to the Schedule 13D filed by the Holder and its affiliates named therein on June 9, 2023 with the SEC and based on other information provided by the Holder, the following persons may be deemed to be beneficial owners of the shares of the Company’s common stock beneficially owned by the Holder: Alta Fox GenPar, LP, as the general partner of Alta Fox Opportunities Fund, LP; Alta Fox Equity, LLC, as the general partner of Alta Fox GenPar, LP; Alta Fox Capital Management, LLC, as the investment manager of Alta Fox Opportunities Fund, LP; and P. Connor Haley, as the sole owner, member and manager of each of Alta Fox Capital Management, LLC and Alta Fox Equity LLC. On June 7, 2023, the Company received from the Holder written notice of a decrease in the “Percentage Cap” (as such term is defined in the Convertible Note) from 9.99 percent to 4.99 percent which decrease became effective immediately upon the Company’s receipt of such written notice. The Percentage Cap generally represents the maximum percentage of shares of the Company’s common stock the Holder may own. Based on Amendment No. 3, the Holder and its affiliates identified in Amendment No. 3 owned 2,293 shares of common stock on June 9, 2023, representing 4.99 percent of the common stock of the Company, meaning the Holder and its affiliates are no longer “related parties” of the Company under the Company’s written policy and procedures and the applicable definitions under the Securities Act of 1933. During the first quarter of fiscal 2024, the Company and South Dakota Board of Regents entered into a contract for video display systems for Dakota State University. The amount of the contract was $150. A member of the Company's Board of Directors is the President of Dakota State University. See Note 2 for further details of related party transactions with our investments in the affiliates Notes issued by our affiliates. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | 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 accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Estimates used in the preparation of the unaudited consolidated financial statements include, among others, revenue recognition, future warranty expenses, the fair value of long-term debt, the fair value of investments in affiliates, income tax expenses, and stock-based compensation. Due to the inherent uncertainty involved in making estimates, actual results in future periods may differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 simplified the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplified the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in Accounting Standards Codification ("ASC") 470-20, Debt: Debt with Conversion and Other Options , that required entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revised the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity by removing certain criteria required for equity classification; and (3) revised the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share ("EPS") for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 was effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption was permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 was effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. In the first quarter of fiscal 2024, we adopted ASU 2020-06. Upon adoption, we prospectively utilized the if-converted method to calculate the dilutive impact of our convertible note issued on May 11, 2023 (the "Convertible Note"). See "Note 6. Financing Agreements" of the Notes to our Condensed Consolidated Financial Statements included in this Form 10-Q for further information on the Convertible Note. Accounting Standards Not Yet Adopted |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | 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. Restricted cash consists of cash and cash equivalents held in bank deposit accounts to secure issuances of foreign bank guarantees and letters of credit outstanding under a previous credit agreement. October 28, October 29, Cash and cash equivalents $ 64,740 $ 6,431 Restricted cash 8,246 712 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 72,986 $ 7,143 |
Restrictions on Cash and Cash Equivalents | 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. Restricted cash consists of cash and cash equivalents held in bank deposit accounts to secure issuances of foreign bank guarantees and letters of credit outstanding under a previous credit agreement. October 28, October 29, Cash and cash equivalents $ 64,740 $ 6,431 Restricted cash 8,246 712 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 72,986 $ 7,143 |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 6 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of the net income (loss) and common share amounts used in the calculation of basic and diluted EPS for the three and six months ended October 28, 2023 and October 29, 2022: Three Months Ended Six Months Ended October 28, October 29, October 28, October 29, Earnings per share - basic Net income (loss) $ 2,165 $ (12,984) $ 21,361 $ (18,310) Weighted average shares outstanding 46,030 45,317 45,838 45,258 Basic earnings (loss) per share $ 0.05 $ (0.29) $ 0.47 $ (0.40) Earnings per share - diluted Net income (loss) $ 2,165 $ (12,984) $ 21,361 $ (18,310) Diluted net income (loss) $ 2,165 $ (12,984) $ 21,361 $ (18,310) Weighted average common shares outstanding 46,030 45,317 45,838 45,258 Dilution associated with stock compensation plans 675 — 616 — Dilution associated with convertible note — — — — Weighted average common shares outstanding, assuming dilution 46,705 45,317 46,454 45,258 Diluted earnings (loss) per share $ 0.05 $ (0.29) $ 0.46 $ (0.40) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Oct. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our disaggregation of revenue by segments: Three Months Ended October 28, 2023 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 9,511 $ 47,496 $ 11,539 $ 11,047 $ 9,993 $ 89,586 Limited configuration 28,752 13,771 36,277 8,469 7,302 94,571 Service and other 4,190 6,943 1,126 727 2,226 15,212 $ 42,453 $ 68,210 $ 48,942 $ 20,243 $ 19,521 $ 199,369 Timing of revenue recognition Goods/services transferred at a point in time $ 29,379 $ 15,390 $ 34,722 $ 8,592 $ 7,919 $ 96,002 Goods/services transferred over time 13,074 52,820 14,220 11,651 11,602 103,367 $ 42,453 $ 68,210 $ 48,942 $ 20,243 $ 19,521 $ 199,369 Six Months Ended October 28, 2023 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 22,429 $ 124,043 $ 26,658 $ 23,631 $ 18,783 $ 215,544 Limited configuration 58,665 23,732 76,614 16,536 12,541 188,088 Service and other 8,242 12,434 1,904 1,445 4,243 28,268 $ 89,336 $ 160,209 $ 105,176 $ 41,612 $ 35,567 $ 431,900 Timing of revenue recognition Goods/services transferred at a point in time $ 60,397 $ 26,167 $ 73,803 $ 16,859 $ 13,762 $ 190,988 Goods/services transferred over time 28,939 134,042 31,373 24,753 21,805 240,912 $ 89,336 $ 160,209 $ 105,176 $ 41,612 $ 35,567 $ 431,900 Three Months Ended October 29, 2022 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 5,582 $ 52,862 $ 7,856 $ 11,398 $ 6,123 $ 83,821 Limited configuration 26,768 9,675 32,975 4,542 14,285 88,245 Service and other 4,697 6,702 1,175 739 2,060 15,373 $ 37,047 $ 69,239 $ 42,006 $ 16,679 $ 22,468 $ 187,439 Timing of revenue recognition Goods/services transferred at a point in time $ 28,078 $ 11,682 $ 31,129 $ 4,749 $ 15,019 $ 90,657 Goods/services transferred over time 8,969 57,557 10,877 11,930 7,449 96,782 $ 37,047 $ 69,239 $ 42,006 $ 16,679 $ 22,468 $ 187,439 Six Months Ended October 29, 2022 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 10,269 $ 95,030 $ 14,448 $ 23,884 $ 12,624 $ 156,255 Limited configuration 58,544 18,155 61,258 10,641 25,786 174,384 Service and other 8,352 12,437 2,109 1,694 4,128 28,720 $ 77,165 $ 125,622 $ 77,815 $ 36,219 $ 42,538 $ 359,359 Timing of revenue recognition Goods/services transferred at a point in time $ 60,635 $ 20,904 $ 58,219 $ 11,131 $ 26,895 $ 177,784 Goods/services transferred over time 16,530 104,718 19,596 25,088 15,643 181,575 $ 77,165 $ 125,622 $ 77,815 $ 36,219 $ 42,538 $ 359,359 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table reflects the changes in our contract assets and liabilities: October 28, April 29, Dollar Percent Contract assets $ 45,210 $ 46,789 $ (1,579) (3.4) % Contract liabilities - current 78,293 91,549 (13,256) (14.5) Contract liabilities - noncurrent 15,390 13,096 2,294 17.5 The changes in our contract assets and contract liabilities from April 29, 2023 to October 28, 2023 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 impairments of contract assets for the six months ended October 28, 2023. 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". Changes in unearned service-type warranty contracts, net were as follows: October 28, Balance as of April 29, 2023 $ 28,338 New contracts sold 27,921 Less: reductions for revenue recognized (21,802) Foreign currency translation and other (457) Balance as of October 28, 2023 $ 34,000 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Oct. 28, 2023 | |
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 28, October 29, October 28, October 29, Net sales: Commercial $ 42,453 $ 37,047 $ 89,336 $ 77,165 Live Events 68,210 69,239 160,209 125,622 High School Park and Recreation 48,942 42,006 105,176 77,815 Transportation 20,243 16,679 41,612 36,219 International 19,521 22,468 35,567 42,538 199,369 187,439 431,900 359,359 Gross profit: Commercial 7,231 6,197 20,000 11,018 Live Events 19,234 7,983 47,174 11,769 High School Park and Recreation 16,420 11,811 37,245 21,788 Transportation 6,780 4,084 13,869 9,922 International 4,534 1,629 7,058 3,001 54,199 31,704 125,346 57,498 Operating expenses: Selling 14,653 14,525 27,582 28,958 General and administrative 10,889 8,687 20,488 18,128 Product design and development 9,221 6,966 17,624 14,405 34,763 30,178 65,694 61,491 Operating income (loss) 19,436 1,526 59,652 (3,993) Nonoperating (expense) income: Interest (expense) income, net (1,326) (263) (2,207) (323) Change in fair value of convertible note (10,650) — (17,910) — Other expense and debt issuance costs write-off, net (1,303) (208) (5,282) (955) Income (loss) before income taxes $ 6,157 $ 1,055 $ 34,253 $ (5,271) Depreciation and amortization: Commercial $ 1,070 $ 834 $ 2,112 $ 1,637 Live Events 1,604 1,627 3,217 3,193 High School Park and Recreation 474 383 936 722 Transportation 174 128 342 253 International 572 566 1,138 1,111 Unallocated corporate depreciation and amortization 931 662 1,749 1,309 $ 4,825 $ 4,200 $ 9,494 $ 8,225 |
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 28, October 29, October 28, October 29, Net sales: United States $ 178,144 $ 163,142 $ 392,737 $ 312,580 Outside United States 21,225 24,297 39,163 46,779 $ 199,369 $ 187,439 $ 431,900 $ 359,359 October 28, April 29, Property and equipment, net of accumulated depreciation: United States $ 65,026 $ 63,786 Outside United States 7,593 8,361 $ 72,619 $ 72,147 |
Financing Agreements (Tables)
Financing Agreements (Tables) | 6 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt consists of the following: October 28, April 29, ABL credit facility/prior line of credit $ — $ 17,750 Mortgage 14,625 — Convertible note 25,000 — Long-term debt, gross 39,625 17,750 Debt issuance costs, net (948) — Change in fair value of convertible note 17,910 — Current portion (1,500) — Long-term debt, net $ 55,087 $ 17,750 The changes in fair value of the Convertible Note during the six months ended October 28, 2023 are as follows: Liability Component (in thousands) Balance as of May 11, 2023 $ 25,000 Redemption of convertible promissory note — Fair Value Change Recognized 17,910 Balance as of October 28, 2023 $ 42,910 |
Fair Value Measurement Inputs and Valuation Techniques | We determined the fair value by using the following key assumptions in the binomial lattice model: Risk-Free Rate (Annual) 4.76 % Implied Yield 19.48 % Volatility (Annual) 55.00 % Dividend Yield (Annual) — % |
Schedule of Maturities of Long-Term Debt | Aggregate contractual maturities of debt in future fiscal years are as follows: Fiscal years ending Amount Remainder of 2024 $ 750 2025 1,500 2026 1,500 2027 10,875 2028 25,000 2029 and beyond — Total senior secured notes and convertible notes $ 39,625 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Oct. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Warranties: Changes in our warranty obligation for the six months ended October 28, 2023 consisted of the following: October 28, Balance as of April 29, 2023 $ 32,541 Warranties issued during the period 7,781 Settlements made during the period (6,209) Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations 700 Balance as of October 28, 2023 $ 34,813 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | 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 as of October 28, 2023 and April 29, 2023 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 28, 2023 Cash and cash equivalents $ 64,740 $ — $ — $ 64,740 Restricted cash 8,246 — — 8,246 Convertible Note Payable — — 42,910 42,910 Available-for-sale securities: US Government sponsored entities — 546 — 546 $ 72,986 $ 546 $ 42,910 $ 116,442 Balance as of April 29, 2023 Cash and cash equivalents $ 23,982 $ — $ — $ 23,982 Restricted cash 708 — — 708 Available-for-sale securities: US Government sponsored entities — 534 — 534 Derivatives - liability position — (579) — (579) $ 24,690 $ (45) $ — $ 24,645 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Apr. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 64,740 | $ 23,982 | $ 6,431 | |
Restricted cash | 8,246 | 708 | 712 | |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 72,986 | $ 24,690 | $ 7,143 | $ 18,008 |
Basis of Presentation (Details
Basis of Presentation (Details Textual) - USD ($) $ in Thousands | Oct. 28, 2023 | Apr. 29, 2023 | Oct. 29, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 64,740 | $ 23,982 | $ 6,431 |
Cash and cash equivalents denominated in U.S. dollars | 54,245 | ||
Cash and cash equivalents held by foreign subsidiaries | 737 | ||
Additional cash balances denominated in foreign currencies | 10,495 | ||
Additional cash balances denominated in foreign currencies, maintained by foreign subsidiaries | $ 8,466 |
Investments in Affiliates (Deta
Investments in Affiliates (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Apr. 29, 2023 | |
Schedule of Investments [Line Items] | |||||
Equity method investments | $ 9,819 | $ 9,819 | $ 11,934 | ||
Equity in income (loss) of affiliate | (771) | $ (811) | (1,461) | $ (1,701) | |
Accounts payable | 14 | 14 | |||
Amount invested | 2,899 | 2,882 | |||
Purchase of convertible notes | $ 11,663 | 11,663 | |||
Convertible note and investment in affiliates, amount | $ 21,483 | 25,343 | |||
Miortech | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 55.90% | 55.90% | |||
XdisplayTM | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 16.40% | 16.40% | |||
Convertible note | |||||
Schedule of Investments [Line Items] | |||||
Amount invested | $ 2,250 | ||||
Promissory Notes | |||||
Schedule of Investments [Line Items] | |||||
Amount invested | 649 | ||||
Product Design and Development | |||||
Schedule of Investments [Line Items] | |||||
Related party transaction, amounts of transaction | $ 123 | $ 672 |
Earnings Per Share ("EPS") - Sc
Earnings Per Share ("EPS") - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 28, 2023 | Jul. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Earnings per share - basic | ||||||
Net income (loss) | $ 2,165 | $ 19,196 | $ (12,984) | $ (5,326) | $ 21,361 | $ (18,310) |
Weighted average shares outstanding (in shares) | 46,030,000 | 45,317,000 | 45,838,000 | 45,258,000 | ||
Basic earnings per shares (in usd per share) | $ 0.05 | $ (0.29) | $ 0.47 | $ (0.40) | ||
Earnings per share - diluted | ||||||
Net income (loss) | $ 2,165 | $ 19,196 | $ (12,984) | $ (5,326) | $ 21,361 | $ (18,310) |
Diluted net income (loss) | $ 2,165 | $ (12,984) | $ 21,361 | $ (18,310) | ||
Weighted average shares outstanding (in shares) | 46,030,000 | 45,317,000 | 45,838,000 | 45,258,000 | ||
Dilution associated with stock compensation plans (in shares) | 675,000 | 0 | 616,000 | 0 | ||
Dilution associated with convertible notes (in shares) | 0 | 0 | 0 | 0 | ||
Weighted average common shares outstanding, assuming dilution (in shares) | 46,705,000 | 45,317,000 | 46,454,000 | 45,258,000 | ||
Diluted earnings (loss) per share (in usd per share) | $ 0.05 | $ (0.29) | $ 0.46 | $ (0.40) |
Earnings Per Share ("EPS") (Det
Earnings Per Share ("EPS") (Details Textual) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 521,000 | 2,063,000 | 1,039,000 | 2,082,000 |
Antidilutive securities excluded from computation of earnings per share, weighted average exercise price (in usd per share) | $ 10.76 | $ 7.51 | $ 9.53 | $ 7.82 |
Convertible note | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,051,000 | 3,806,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 199,369 | $ 187,439 | $ 431,900 | $ 359,359 |
Goods/services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 96,002 | 90,657 | 190,988 | 177,784 |
Goods/services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 103,367 | 96,782 | 240,912 | 181,575 |
Unique configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 89,586 | 83,821 | 215,544 | 156,255 |
Limited configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 94,571 | 88,245 | 188,088 | 174,384 |
Service and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15,212 | 15,373 | 28,268 | 28,720 |
Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 42,453 | 37,047 | 89,336 | 77,165 |
Commercial | Goods/services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 29,379 | 28,078 | 60,397 | 60,635 |
Commercial | Goods/services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,074 | 8,969 | 28,939 | 16,530 |
Commercial | Unique configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 9,511 | 5,582 | 22,429 | 10,269 |
Commercial | Limited configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 28,752 | 26,768 | 58,665 | 58,544 |
Commercial | Service and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,190 | 4,697 | 8,242 | 8,352 |
Live Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 68,210 | 69,239 | 160,209 | 125,622 |
Live Events | Goods/services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15,390 | 11,682 | 26,167 | 20,904 |
Live Events | Goods/services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 52,820 | 57,557 | 134,042 | 104,718 |
Live Events | Unique configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 47,496 | 52,862 | 124,043 | 95,030 |
Live Events | Limited configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,771 | 9,675 | 23,732 | 18,155 |
Live Events | Service and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6,943 | 6,702 | 12,434 | 12,437 |
High School Park and Recreation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 48,942 | 42,006 | 105,176 | 77,815 |
High School Park and Recreation | Goods/services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 34,722 | 31,129 | 73,803 | 58,219 |
High School Park and Recreation | Goods/services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14,220 | 10,877 | 31,373 | 19,596 |
High School Park and Recreation | Unique configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11,539 | 7,856 | 26,658 | 14,448 |
High School Park and Recreation | Limited configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 36,277 | 32,975 | 76,614 | 61,258 |
High School Park and Recreation | Service and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,126 | 1,175 | 1,904 | 2,109 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 20,243 | 16,679 | 41,612 | 36,219 |
Transportation | Goods/services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 8,592 | 4,749 | 16,859 | 11,131 |
Transportation | Goods/services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11,651 | 11,930 | 24,753 | 25,088 |
Transportation | Unique configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11,047 | 11,398 | 23,631 | 23,884 |
Transportation | Limited configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 8,469 | 4,542 | 16,536 | 10,641 |
Transportation | Service and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 727 | 739 | 1,445 | 1,694 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 19,521 | 22,468 | 35,567 | 42,538 |
International | Goods/services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 7,919 | 15,019 | 13,762 | 26,895 |
International | Goods/services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11,602 | 7,449 | 21,805 | 15,643 |
International | Unique configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 9,993 | 6,123 | 18,783 | 12,624 |
International | Limited configuration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 7,302 | 14,285 | 12,541 | 25,786 |
International | Service and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,226 | $ 2,060 | $ 4,243 | $ 4,128 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Contract Asset, Contract Liability, and Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 28, 2023 | Apr. 29, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract assets | $ 45,210 | $ 46,789 |
Contract liabilities - current | 78,293 | 91,549 |
Contract liabilities - noncurrent | 15,390 | $ 13,096 |
Dollar Change | ||
Contract assets | (1,579) | |
Contract liabilities - current | (13,256) | |
Contract liabilities - noncurrent | $ 2,294 | |
Percent Change | ||
Contract assets | (3.40%) | |
Contract liabilities - current | (14.50%) | |
Contract liabilities - noncurrent | 17.50% | |
Service-type Warranty Contracts | ||
Changes in Unearned Service-Type Warranty Contract [Roll Forward] | ||
Balance at beginning of period | $ 28,338 | |
New contracts sold | 27,921 | |
Less: reductions for revenue recognized | (21,802) | |
Foreign currency translation and other | (457) | |
Balance at ending of period | $ 34,000 |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) $ in Thousands | 6 Months Ended |
Oct. 28, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Recognized revenue | $ 77,788 |
Revenue, remaining performance obligation | 369,879 |
Product | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 306,934 |
Service | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 62,945 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 310,470 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 6 Months Ended |
Oct. 28, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information, By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 28, 2023 | Oct. 29, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 199,369 | $ 187,439 | $ 431,900 | $ 359,359 | |
Gross profit: | 54,199 | 31,704 | 125,346 | 57,498 | |
Selling | 14,653 | 14,525 | 27,582 | 28,958 | |
General and administrative | 10,889 | 8,687 | 20,488 | 18,128 | |
Product design and development | 9,221 | 6,966 | 17,624 | 14,405 | |
Operating expenses: | 34,763 | 30,178 | 65,694 | 61,491 | |
Operating income (loss) | 19,436 | 1,526 | 59,652 | (3,993) | |
Interest (expense) income, net | (1,326) | (263) | (2,207) | (323) | |
Change in fair value of convertible note | 10,650 | 0 | 17,910 | $ (17,910) | 0 |
Other expense and debt issuance costs write-off, net | (1,303) | (208) | (5,282) | (955) | |
Income (loss) before income taxes | 6,157 | 1,055 | 34,253 | (5,271) | |
Depreciation and amortization: | 4,825 | 4,200 | 9,494 | 8,225 | |
Corporate, non-segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Depreciation and amortization: | 931 | 662 | 1,749 | 1,309 | |
Commercial | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 42,453 | 37,047 | 89,336 | 77,165 | |
Commercial | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 42,453 | 37,047 | 89,336 | 77,165 | |
Gross profit: | 7,231 | 6,197 | 20,000 | 11,018 | |
Depreciation and amortization: | 1,070 | 834 | 2,112 | 1,637 | |
Live Events | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 68,210 | 69,239 | 160,209 | 125,622 | |
Live Events | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 68,210 | 69,239 | 160,209 | 125,622 | |
Gross profit: | 19,234 | 7,983 | 47,174 | 11,769 | |
Depreciation and amortization: | 1,604 | 1,627 | 3,217 | 3,193 | |
High School Park and Recreation | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 48,942 | 42,006 | 105,176 | 77,815 | |
High School Park and Recreation | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 48,942 | 42,006 | 105,176 | 77,815 | |
Gross profit: | 16,420 | 11,811 | 37,245 | 21,788 | |
Depreciation and amortization: | 474 | 383 | 936 | 722 | |
Transportation | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 20,243 | 16,679 | 41,612 | 36,219 | |
Transportation | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 20,243 | 16,679 | 41,612 | 36,219 | |
Gross profit: | 6,780 | 4,084 | 13,869 | 9,922 | |
Depreciation and amortization: | 174 | 128 | 342 | 253 | |
International | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 19,521 | 22,468 | 35,567 | 42,538 | |
International | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 19,521 | 22,468 | 35,567 | 42,538 | |
Gross profit: | 4,534 | 1,629 | 7,058 | 3,001 | |
Depreciation and amortization: | $ 572 | $ 566 | $ 1,138 | $ 1,111 |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Revenue From External Customers, By Geographical Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 199,369 | $ 187,439 | $ 431,900 | $ 359,359 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 178,144 | 163,142 | 392,737 | 312,580 |
Outside United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 21,225 | $ 24,297 | $ 39,163 | $ 46,779 |
Segment Reporting - Schedule _3
Segment Reporting - Schedule of Revenue From Long-lived Assets, By Geographic Areas (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Apr. 29, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation: | $ 72,619 | $ 72,147 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation: | 65,026 | 63,786 |
Outside United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation: | $ 7,593 | $ 8,361 |
Financing Agreements - Schedule
Financing Agreements - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Apr. 29, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 39,625 | |
Debt issuance costs, net | (948) | $ 0 |
Change in fair value of convertible note | 17,910 | 0 |
Current portion | (1,500) | 0 |
Long-term debt, net | 55,087 | 17,750 |
ABL credit facility/prior line of credit | ABL credit facility/prior line of credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 17,750 |
Mortgage | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 14,625 | 0 |
Convertible note | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 25,000 | $ 0 |
Financing Agreements (Details T
Financing Agreements (Details Textual) | 6 Months Ended | ||||
Jul. 07, 2023 Rate | May 11, 2023 USD ($) $ / shares Rate | Oct. 28, 2023 USD ($) | Oct. 29, 2022 USD ($) | Apr. 29, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |||||
Change in fair value of convertible note | $ 0 | ||||
Termination penalty | 0 | ||||
Debt issuance costs, net | $ 3,150,000 | $ 3,866,000 | |||
Debt issuance costs | 6,454,000 | $ 0 | |||
Long-term debt | 57,535,000 | $ 17,750,000 | |||
Convertible debt | $ 42,910,000 | ||||
Convertible note | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 25,000,000 | ||||
Debt instrument, term | 3 years | ||||
Interest rate, stated percentage | Rate | 9% | ||||
Conversion price (in usd per share) | $ / shares | $ 6.31 | ||||
Interest coverage ratio | 1.1 | ||||
Debt issuance costs, net | $ 8,195,000 | ||||
Debt issuance costs | $ 3,353,000 | ||||
Amortization of debt issuance cost | 744,000 | ||||
Remaining debt issuance cost | 4,098,000 | ||||
Convertible note | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, stated percentage | Rate | 10% | ||||
Convertible note | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, stated percentage | Rate | 12% | ||||
Credit Agreements | ABL credit facility/prior line of credit | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 | ||||
Letters of credit outstanding | 5,875,000 | ||||
Credit Agreements | Secured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | 15,000,000 | ||||
Debt instrument, term | 10 years | ||||
Debt instrument, periodic payment | 125,000 | ||||
Credit Agreements | Secured Debt | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, stated percentage | Rate | 1% | ||||
Credit Agreements | Secured Debt | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, stated percentage | Rate | 2% | ||||
Revolving Credit Facility | Credit Agreements | ABL credit facility/prior line of credit | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 60,000,000 | ||||
Current borrowing capacity | 50,611,000 | ||||
Long-term line of credit | $ 0 | ||||
Revolving Credit Facility | Credit Agreements | ABL credit facility/prior line of credit | Minimum | Secured Overnight Financing Rate (SOFR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Revolving Credit Facility | Credit Agreements | ABL credit facility/prior line of credit | Maximum | Secured Overnight Financing Rate (SOFR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 3.50% |
Financing Agreements - Schedu_2
Financing Agreements - Schedule of Long-Term Debt Instruments Fair Value Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 28, 2023 | Oct. 29, 2022 | |
Debt Instrument Fair Value Disclosure [Roll Forward] | |||||
Beginning balance | $ 25,000 | ||||
Redemption of convertible promissory note | 0 | ||||
Fair Value Change Recognized | $ (10,650) | $ 0 | $ (17,910) | 17,910 | $ 0 |
Ending balance | $ 42,910 | $ 42,910 | $ 42,910 |
Financing Agreements - Fair Val
Financing Agreements - Fair Value Measurement Inputs and Valuation Techniques (Details) - Convertible note | Oct. 28, 2023 |
Risk-Free Rate (Annual) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.0476 |
Implied Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.1948 |
Volatility (Annual) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.5500 |
Dividend Yield (Annual) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0 |
Financing Agreements - Schedu_3
Financing Agreements - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Oct. 28, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 750 |
2025 | 1,500 |
2026 | 1,500 |
2027 | 10,875 |
2028 | 25,000 |
2029 and beyond | 0 |
Long-term debt, net | $ 39,625 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Product Warranty Liability (Details) $ in Thousands | 6 Months Ended |
Oct. 28, 2023 USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning accrued warranty obligations | $ 32,541 |
Warranties issued during the period | 7,781 |
Settlements made during the period | (6,209) |
Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations | 700 |
Ending accrued warranty obligations | $ 34,813 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Textual) $ in Thousands | Oct. 28, 2023 USD ($) |
Credit Agreements | ABL credit facility/prior line of credit | |
Loss Contingencies [Line Items] | |
Letters of credit outstanding | $ 5,875 |
Guarantee of Business Revenue | |
Loss Contingencies [Line Items] | |
Loss contingency accrual | 558 |
Surety Bond | |
Loss Contingencies [Line Items] | |
Loss contingency accrual | $ 40,633 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended |
Oct. 28, 2023 USD ($) | Oct. 28, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | ||
Tax rate expense (benefit) | 64.80% | 37.60% |
Unrecognized tax benefits | $ 527 | $ 527 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Apr. 29, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Note Payable | $ 42,910 | |
US Government sponsored entities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | $ 534 | |
Level 1 | US Government sponsored entities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 0 | |
Level 2 | US Government sponsored entities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 534 | |
Level 3 | US Government sponsored entities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 0 | |
Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 64,740 | 23,982 |
Restricted cash | 8,246 | 708 |
Convertible Note Payable | 42,910 | |
Derivatives - liability position | (579) | |
Fair value, net asset (liability), total | 116,442 | 24,645 |
Fair Value, Recurring | US Government sponsored entities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 546 | |
Fair Value, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 64,740 | 23,982 |
Restricted cash | 8,246 | 708 |
Convertible Note Payable | 0 | |
Derivatives - liability position | 0 | |
Fair value, net asset (liability), total | 72,986 | 24,690 |
Fair Value, Recurring | Level 1 | US Government sponsored entities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 0 | |
Fair Value, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Convertible Note Payable | 0 | |
Derivatives - liability position | (579) | |
Fair value, net asset (liability), total | 546 | (45) |
Fair Value, Recurring | Level 2 | US Government sponsored entities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | 546 | |
Fair Value, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Convertible Note Payable | 42,910 | |
Derivatives - liability position | 0 | |
Fair value, net asset (liability), total | 42,910 | $ 0 |
Fair Value, Recurring | Level 3 | US Government sponsored entities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities: | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Thousands | 6 Months Ended | ||||
May 11, 2023 | Oct. 28, 2023 | Oct. 28, 2023 | Jun. 07, 2023 | May 15, 2023 | |
Related Party Transaction [Line Items] | |||||
Threshold to be considered related party transaction | $ 120,000 | $ 120,000 | |||
Redemption of convertible promissory note | $ 0 | ||||
Convertible note | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument, face amount | $ 25,000,000 | ||||
Convertible Note Offering | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from convertible debt | 25,000,000 | ||||
Convertible Note Offering | Related Party | Daktronics | |||||
Related Party Transaction [Line Items] | |||||
Shares owner by noncontrolling owner (in shares) | 2,293 | 4,768 | |||
Ownership percentage | 4.99% | 9.99% | |||
Convertible Note Offering | Convertible note | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument, face amount | 25,000,000 | ||||
Debt interest expense | 563,000 | ||||
Convertible debt | 25,563,000 | ||||
Redemption of convertible promissory note | $ 563,000 | ||||
Video Display Systems | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transaction | $ 150,000 |