- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
-----------
FORM 10-Q/A
(Amendment No. 1)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 27, 2001
----------------
Commission file number
0-23246
DAKTRONICS, INC.
(Exact name of registrant as specified in its charter)
South Dakota 46-0306862
------------ ----------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation of organization)
331 32nd Avenue Brookings, SD 57006
-----------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (605) 697-4000
--------------
-----------------------------------------------------------
(Former name, address, and/or fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _X_ No ___
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at February 28, 2001
----- --------------------------------
Common Stock, No par value 8,959,399
- --------------------------------------------------------------------------------
TEXT OF AMENDMENTS
Explanatory Note:
The Consolidated Statements of Cash Flows-Nine months ended January 27, 2001 and
January 29, 2000 have been amended. The amendment deletes the brackets around
the net cash provided by operating activities for the nine months ended January
27, 2001. The brackets were inadvertently added and are thereby deleted in this
amended 10Q.
Daktronics, Inc.
Table of Contents
Part I. Financial Information Page(s)
-------
Item 1. Financial Statements
Consolidated Balance Sheets-
January 27, 2001 and April 29, 2000 ................... 3 - 4
Consolidated Statements of Income-
Three months and nine months ended
January 27, 2001 and January 29, 2000.................. 5
Consolidated Statements of Cash Flows-
Nine months ended January 27, 2001 and
January 29, 2000....................................... 6
Notes to Consolidated Financial Statements............. 7 - 8
Signatures ....................................................... 9
2
Part I.
Item 1.
DAKTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
JANUARY 27,
2001 APRIL 29,
ASSETS (UNAUDITED) 2000
------------ ------------
CURRENT ASSETS
Cash and cash equivalents ............................ $ 354 $ 1,217
Accounts receivable less allowance
for doubtful accounts of $226 at
January 27, 2001 and $232 at April 29, 2000 ........ 20,295 23,562
Current maturities of long-term
receivables ........................................ 1,801 1,541
Inventories .......................................... 22,840 13,849
Costs and estimated earnings in
excess of billings on uncompleted
contracts .......................................... 15,897 5,177
Prepaid expenses and other ........................... 382 451
Income taxes receivable .............................. -- 647
Deferred income taxes ................................ 1,418 1,418
----------- -----------
Total current assets ............................... 62,987 47,862
----------- -----------
LONG-TERM RECEIVABLES
AND OTHER ASSETS
Advertising rights ................................... 1,314 824
Long-term receivables,
less current maturities ............................ 5,069 6,081
Intangible and other assets .......................... 2,491 850
----------- -----------
8,874 7,755
----------- -----------
PROPERTY AND EQUIPMENT, at cost
Land ............................................... 563 528
Buildings .......................................... 8,974 8,008
Machinery and equipment ............................ 19,239 16,372
Office furniture and equipment ..................... 6,253 4,258
Transportation equipment ........................... 1,822 970
----------- -----------
36,851 30,136
Less accumulated depreciation ........................ 15,835 13,346
----------- -----------
21,016 16,790
----------- -----------
$ 92,877 $ 72,407
=========== ===========
The accompanying notes are an integral part of these Consolidated Financial
Statements.
3
DAKTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in thousands, except per share data)
JANUARY 27,
2001 APRIL 29,
LIABILITIES AND SHAREHOLDERS' EQUITY (UNAUDITED) 2000
----------- -----------
CURRENT LIABILITIES
Note payable, bank ................................... $ 10,917 $ 7,202
Current maturities of
long-term debt ..................................... 3,915 2,349
Accounts payable ..................................... 10,514 7,327
Customer deposits .................................... 3,448 1,721
Accrued expenses ..................................... 5,579 5,521
Billings in excess of costs and
estimated earnings on uncompleted contracts ........ 1,924 3,079
Income taxes payable ................................. 239 --
----------- -----------
Total current liabilities .......................... 36,536 27,199
----------- -----------
LONG-TERM DEBT
less current maturities .............................. 11,476 7,893
DEFERRED INCOME ........................................ 357 312
DEFERRED INCOME TAXES .................................. 782 772
SHAREHOLDERS' EQUITY
Common stock, no par value
Authorized 30,000,000 shares
Issued January 27, 2001 8,936,599 shares;
April 29, 2000 8,873,542 shares .................... 12,650 12,232
Additional paid-in capital ........................... 93 93
Retained earnings .................................... 30,992 23,915
----------- -----------
43,735 36,240
Less:
Cost of 9,840 treasury shares ........................ (9) (9)
----------- -----------
43,726 36,231
----------- -----------
$ 92,877 $ 72,407
=========== ===========
The accompanying notes are an integral part of these Consolidated Financial
Statements.
4
DAKTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
------------------ -----------------
JANUARY 27, JANUARY 29, JANUARY 27, JANUARY 29,
2001 2000 2001 2000
(13 WEEKS) (13 WEEKS) (39 WEEKS) (39 WEEKS)
----------- ----------- ----------- -----------
Net sales .................................... $ 33,071 $ 27,159 $ 109,721 $ 95,753
Cost of goods sold ........................... 23,296 19,610 76,813 70,223
----------- ----------- ----------- -----------
Gross profit ............................. 9,775 7,549 32,908 25,530
----------- ----------- ----------- -----------
Operating expenses:
Selling .................................... 4,359 3,593 13,282 10,606
General and administrative ................. 1,640 1,169 4,265 3,263
Product design and development ............. 1,344 1,023 3,835 3,009
----------- ----------- ----------- -----------
7,343 5,785 21,382 16,878
----------- ----------- ----------- -----------
Operating income ......................... 2,432 1,764 11,526 8,652
Nonoperating income (expense):
Interest income ............................ 208 239 570 522
Interest expense ........................... (461) (399) (1,040) (968)
Other income, net .......................... 265 72 637 372
----------- ----------- ----------- -----------
Income before income taxes .............. 2,444 1,676 11,693 8,578
Income tax expense ........................... 916 670 4,616 3,461
----------- ----------- ----------- -----------
Net income ............................... $ 1,528 $ 1,006 $ 7,077 $ 5,117
=========== =========== =========== ===========
Earnings per share:
Basic ...................................... $ .17 $ .11 $ .80 $ .58
=========== =========== =========== ===========
Diluted .................................... $ .16 $ .11 $ .75 $ .56
=========== =========== =========== ===========
The accompanying notes are an integral part of these Consolidated Financial
Statements.
5
DAKTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
NINE MONTHS ENDED
-----------------
JANUARY 27, JANUARY 29,
2001 2000
(39 WEEKS) (39 WEEKS)
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ........................................... $ 7,077 $ 5,117
Adjustments to reconcile net income to
net cash (used in) operating activities:
Depreciation ..................................... 2,489 1,673
Amortization ..................................... 220 232
Provision for doubtful accounts .................. 123 22
Deferred taxes ................................... 10 --
Change in operating assets and
liabilities .................................... (5,911) (8,132)
----------- -----------
Net cash provided by (used in)
operating activities ....................... 4,008 (1,088)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment ................... (6,715) (5,978)
Purchase of business ................................. (1,071) --
Other, net ........................................... (6,137) (589)
----------- -----------
Net cash (used in)
investing activities ........................... (13,923) (6,567)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on note payable ....................... 3,715 7,831
Proceeds from lease .................................. -- 390
Proceeds from long-term debt ......................... 6,752 --
Principal payments on
long-term debt ..................................... (1,603) (1,591)
Proceeds from exercise of stock options .............. 188 391
----------- -----------
Net cash provided by
financing activities ............................. 9,052 7,021
----------- -----------
(Decrease) in cash and cash equivalents ............ (863) (634)
Cash and cash equivalents:
Beginning ............................................ 1,217 1,050
----------- -----------
Ending ............................................... $ 354 $ 416
=========== ===========
The accompanying notes are an integral part of these Consolidated Financial
Statements.
6
DAKTRONICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
(unaudited)
NOTE A. GENERAL
The consolidated financial statements include the accounts of
Daktronics, Inc. and its subsidiaries (Company). Intercompany accounts and
transactions have been eliminated in consolidation.
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with instructions for Form 10-Q and,
accordingly, do not include all information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, the unaudited financial statements contain all adjustments,
consisting of normal recurring accruals, necessary to present fairly the
consolidated financial position of the Company as of January 27, 2001 and the
results of its operations and cash flows for the nine months ended January 27,
2001 and January 29, 2000. These results may not be indicative of the results to
be expected for the full fiscal year.
These statements should be read in conjunction with the financial
statements and footnotes included in the Company's Annual Report on Form 10-K
for the year ended April 29, 2000, previously filed with the Securities and
Exchange Commission (SEC).
Earnings per common share has been computed on the basis of the
weighted-average number of common shares outstanding during each period
presented. A reconciliation of the income and common stock share amounts used in
the calculation of basic and diluted earnings per share (EPS) for the three and
nine months ended January 27, 2001 and January 29, 2000 follows:
Per
Net Share
Income Shares Amount
--------- --------- ---------
For the three months ended January 27, 2001:
Basic EPS ............................... $ 1,528 8,924,867 $ .17
Effect of dilutive securities:
Exercise of stock options ............. -- 506,998 (.01)
--------- --------- ---------
Diluted EPS ............................. $ 1,528 9,431,865 $ .16
========= ========= =========
For the three months ended January 29, 2000:
Basic EPS ............................... $ 1,006 8,821,503 $ .11
Effect of dilutive securities:
Exercise of stock options ............. -- 520,182 --
--------- --------- ---------
Diluted EPS ............................. $ 1,006 9,341,685 $ .11
========= ========= =========
7
Per
Net Share
Income Shares Amount
--------- --------- ---------
For the nine months ended January 27, 2001:
Basic EPS ............................... $ 7,077 8,900,662 $ .80
Effect of dilutive securities:
Exercise of stock options ............. -- 490,479 (.05)
--------- --------- ---------
Diluted EPS ............................. $ 7,077 9,391,141 $ .75
========= ========= =========
For the nine months ended January 29, 2000:
Basic EPS ............................... $ 5,117 8,773,051 $ .58
Effect of dilutive securities:
Exercise of stock options ............. -- 383,018 (.02)
--------- --------- ---------
Diluted EPS ............................. $ 5,117 9,156,069 $ .56
========= ========= =========
On December 7, 1999, the Company declared a two-for-one stock split in
the form of a stock dividend of one share of common stock for each one share
outstanding, payable to shareholders of record on December 20, 1999. All data
related to common shares has been retroactively adjusted based upon the new
shares outstanding after the effect of the two-for-one stock split for all
periods presented.
NOTE B. INVENTORIES
Inventories consist of the following:
January 27, April 29,
2001 2000
----------- -----------
Raw materials ............................ $ 11,436 $ 7,403
Work-in-process .......................... 4,474 1,341
Finished goods ........................... 6,930 5,105
----------- -----------
$ 22,840 $ 13,849
=========== ===========
NOTE C. LITIGATION
There are no pending material legal transactions against the Company.
NOTE D. ACQUISITIONS
During the nine months ended January 27, 2001, the Company acquired
three small companies. The accounts of the acquired companies have been
consolidated in the accompanying financial statements as of the effective dates
of the related acquisitions. These acquisitions were treated as purchases for
accounting purposes for a total purchase price of $1.5 million.
8
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
/s/ Aelred J. Kurtenbach, Chairman and CEO, Acting CFO
------------------------------------------------------
Daktronics, Inc.
Dr. Aelred J. Kurtenbach
Chairman and CEO
Acting Chief Financial Officer
Date March 26, 2001
--------------
9