South Dakota (State or other jurisdiction of incorporation or organization) | 46-0306862 (I.R.S. Employer Identification Number) |
201 Daktronics Drive Brookings SD | 57006 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | o | Accelerated filer | x |
Non-accelerated filer | o (Do not check if a smaller reporting company.) | Smaller reporting company | o |
Page | |||
DAKTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | ||||||||
July 27, 2013 | April 27, 2013 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 22,122 | $ | 40,628 | ||||
Restricted cash | 43 | 48 | ||||||
Marketable securities | 24,636 | 24,052 | ||||||
Accounts receivable, net | 86,921 | 63,227 | ||||||
Inventories, net | 58,912 | 49,045 | ||||||
Costs and estimated earnings in excess of billings | 35,332 | 39,355 | ||||||
Current maturities of long-term receivables | 4,944 | 4,807 | ||||||
Prepaid expenses and other assets | 5,505 | 6,185 | ||||||
Deferred income taxes | 13,157 | 12,755 | ||||||
Income tax receivables | 961 | 46 | ||||||
Total current assets | 252,533 | 240,148 | ||||||
Long-term receivables, less current maturities | 10,486 | 11,325 | ||||||
Goodwill | 4,613 | 3,306 | ||||||
Intangibles, net | 2,900 | 1,181 | ||||||
Advertising rights, net and other assets | 773 | 772 | ||||||
Deferred income taxes | 1,059 | 1,061 | ||||||
19,831 | 17,645 | |||||||
PROPERTY AND EQUIPMENT: | ||||||||
Land | 2,116 | 1,497 | ||||||
Buildings | 59,198 | 57,012 | ||||||
Machinery and equipment | 68,226 | 65,600 | ||||||
Office furniture and equipment | 16,109 | 16,118 | ||||||
Computer software and hardware | 42,362 | 41,745 | ||||||
Equipment held for rental | 868 | 868 | ||||||
Demonstration equipment | 8,359 | 8,400 | ||||||
Transportation equipment | 4,203 | 4,026 | ||||||
201,441 | 195,266 | |||||||
Less accumulated depreciation | 136,915 | 133,641 | ||||||
64,526 | 61,625 | |||||||
TOTAL ASSETS | $ | 336,890 | $ | 319,418 | ||||
See notes to consolidated financial statements. |
DAKTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) (in thousands, except share data) | ||||||||
July 27, 2013 | April 27, 2013 | |||||||
(unaudited) | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Notes payable, bank | $ | 264 | $ | — | ||||
Accounts payable | 48,916 | 38,651 | ||||||
Accrued expenses | 21,696 | 24,331 | ||||||
Warranty obligations | 13,433 | 13,933 | ||||||
Billings in excess of costs and estimated earnings | 13,824 | 14,245 | ||||||
Customer deposits (billed or collected) | 18,870 | 12,375 | ||||||
Deferred revenue (billed or collected) | 7,421 | 9,112 | ||||||
Current portion of other long-term obligations | 890 | 356 | ||||||
Income taxes payable | 1,420 | 1,689 | ||||||
Total current liabilities | 126,734 | 114,692 | ||||||
Long-term warranty obligations | 11,554 | 11,213 | ||||||
Long-term deferred revenue (billed or collected) | 4,909 | 4,424 | ||||||
Other long-term obligations, less current maturities | 3,037 | 843 | ||||||
Total long-term liabilities | 19,500 | 16,480 | ||||||
TOTAL LIABILITIES | 146,234 | 131,172 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Common stock, no par value, authorized 120,000,000 shares; 42,529,902 and 42,393,456 shares issued at July 27, 2013 and April 27, 2013, respectively | 38,489 | 37,429 | ||||||
Additional paid-in capital | 27,919 | 27,194 | ||||||
Retained earnings | 124,373 | 123,750 | ||||||
Treasury stock, at cost, 19,680 shares | (9 | ) | (9 | ) | ||||
Accumulated other comprehensive (loss) income | (116 | ) | (118 | ) | ||||
TOTAL SHAREHOLDERS' EQUITY | 190,656 | 188,246 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 336,890 | $ | 319,418 | ||||
See notes to consolidated financial statements. |
DAKTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) | |||||||
Three Months Ended | |||||||
July 27, 2013 | July 28, 2012 | ||||||
Net sales | $ | 138,722 | $ | 132,919 | |||
Cost of goods sold | 103,221 | 96,529 | |||||
Gross profit | 35,501 | 36,390 | |||||
Operating expenses: | |||||||
Selling expense | 13,617 | 13,080 | |||||
General and administrative | 7,299 | 6,581 | |||||
Product design and development | 5,989 | 6,021 | |||||
26,905 | 25,682 | ||||||
Operating income | 8,596 | 10,708 | |||||
Nonoperating income (expense): | |||||||
Interest income | 343 | 431 | |||||
Interest expense | (115 | ) | (87 | ) | |||
Other (expense) income, net | (392 | ) | (180 | ) | |||
Income before income taxes | 8,432 | 10,872 | |||||
Income tax expense | 2,712 | 4,194 | |||||
Net income | $ | 5,720 | $ | 6,678 | |||
Weighted average shares outstanding: | |||||||
Basic | 42,528 | 42,068 | |||||
Diluted | 42,766 | 42,141 | |||||
Earnings per share: | |||||||
Basic | $ | 0.13 | $ | 0.16 | |||
Diluted | $ | 0.13 | $ | 0.16 | |||
Cash dividend declared per share | $ | 0.120 | $ | 0.115 | |||
See notes to consolidated financial statements. |
DAKTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) (unaudited) | ||||||||
Three Months Ended | ||||||||
July 27, 2013 | July 28, 2012 | |||||||
Net income | $ | 5,720 | $ | 6,678 | ||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustments | 32 | (227 | ) | |||||
Unrealized loss on available-for-sale securities, net of tax | (30 | ) | (26 | ) | ||||
Total other comprehensive income (loss), net of tax | 2 | (253 | ) | |||||
Comprehensive income | $ | 5,722 | $ | 6,425 | ||||
See notes to consolidated financial statements. |
DAKTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
Three Months Ended | |||||||
July 27, 2013 | July 28, 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 5,720 | $ | 6,678 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation | 3,757 | 3,819 | |||||
Amortization | 65 | 57 | |||||
Amortization of premium/discount on marketable securities | 59 | 48 | |||||
(Gain) loss on sale of property and equipment | (31 | ) | 3 | ||||
Share-based compensation | 722 | 762 | |||||
Excess tax benefits from share-based compensation | (3 | ) | (2 | ) | |||
Provision for doubtful accounts | 417 | (281 | ) | ||||
Deferred income taxes, net | (400 | ) | 19 | ||||
Change in operating assets and liabilities | (14,924 | ) | 5,405 | ||||
Net cash (used in) provided by operating activities | (4,618 | ) | 16,508 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (4,042 | ) | (1,443 | ) | |||
Proceeds from sale of property and equipment | 68 | 92 | |||||
Purchases of marketable securities | (1,187 | ) | (3,857 | ) | |||
Proceeds from sales or maturities of marketable securities | 500 | 3,999 | |||||
Acquisition, net of cash acquired | (1,298 | ) | — | ||||
Net cash used in investing activities | (5,959 | ) | (1,209 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payments on notes payable | — | (982 | ) | ||||
Proceeds from exercise of stock options | 293 | 58 | |||||
Excess tax benefits from share-based compensation | 3 | 2 | |||||
Principal payments on long-term obligations | (3,374 | ) | — | ||||
Dividends paid | (5,097 | ) | (4,832 | ) | |||
Net cash used in financing activities | (8,175 | ) | (5,754 | ) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 246 | (128 | ) | ||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (18,506 | ) | 9,417 | ||||
CASH AND CASH EQUIVALENTS: | |||||||
Beginning of period | 40,628 | 29,423 | |||||
End of period | $ | 22,122 | $ | 38,840 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash payments for: | |||||||
Interest | $ | 18 | $ | 36 | |||
Income taxes, net | 4,356 | (85 | ) | ||||
Supplemental schedule of non-cash investing and financing activities: | |||||||
Demonstration equipment transferred to inventory | 63 | 156 | |||||
Purchases of property and equipment included in accounts payable | 1,080 | 519 | |||||
Contributions of common stock under the employee stock purchase plan | 766 | 732 | |||||
See notes to consolidated financial statements. |
Net income | Shares | Per share income | ||||||||
For the three months ended July 27, 2013: | ||||||||||
Basic earnings per share | $ | 5,720 | 42,528 | $ | 0.13 | |||||
Dilution associated with stock compensation plans | — | 238 | — | |||||||
Diluted earnings per share | $ | 5,720 | 42,766 | $ | 0.13 | |||||
For the three months ended July 28, 2012: | ||||||||||
Basic earnings per share | $ | 6,678 | 42,068 | $ | 0.16 | |||||
Dilution associated with stock compensation plans | — | 73 | — | |||||||
Diluted earnings per share | $ | 6,678 | 42,141 | $ | 0.16 |
Three Months Ended | |||||||
July 27, 2013 | July 28, 2012 | ||||||
Net sales: | |||||||
Commercial | $ | 33,701 | $ | 38,356 | |||
Live Events | 55,077 | 44,509 | |||||
Schools & Theatres | 17,917 | 18,174 | |||||
Transportation | 13,042 | 16,596 | |||||
International | 18,985 | 15,284 | |||||
138,722 | 132,919 | ||||||
Contribution margin: | |||||||
Commercial | 5,944 | 6,202 | |||||
Live Events | 8,342 | 7,076 | |||||
Schools & Theatres | 3,148 | 2,577 | |||||
Transportation | 2,145 | 5,979 | |||||
International | 2,305 | 1,476 | |||||
21,884 | 23,310 | ||||||
Non-allocated operating expenses: | |||||||
General and administrative | 7,299 | 6,581 | |||||
Product design and development | 5,989 | 6,021 | |||||
Operating income | 8,596 | 10,708 | |||||
Nonoperating income (expense): | |||||||
Interest income | 343 | 431 | |||||
Interest expense | (115 | ) | (87 | ) | |||
Other (expense) income, net | (392 | ) | (180 | ) | |||
Income before income taxes | 8,432 | 10,872 | |||||
Income tax expense | 2,712 | 4,194 | |||||
Net income | $ | 5,720 | $ | 6,678 | |||
Depreciation and amortization: | |||||||
Commercial | $ | 1,052 | $ | 1,280 | |||
Live Events | 1,147 | 1,104 | |||||
Schools & Theatres | 546 | 576 | |||||
Transportation | 286 | 324 | |||||
International | 236 | 137 | |||||
Unallocated corporate depreciation | 555 | 455 | |||||
$ | 3,822 | $ | 3,876 |
Three Months Ended | |||||||
July 27, 2013 | July 28, 2012 | ||||||
Net sales: | |||||||
United States | $ | 115,451 | $ | 115,759 | |||
Outside U.S. | 23,271 | 17,160 | |||||
$ | 138,722 | $ | 132,919 | ||||
July 27, 2013 | April 27, 2013 | ||||||
Long-lived assets: | |||||||
United States | $ | 60,291 | $ | 60,060 | |||
Outside U.S. | 4,235 | 1,565 | |||||
$ | 64,526 | $ | 61,625 |
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Balance as of July 27, 2013: | |||||||||||||||
Certificates of deposit | $ | 4,677 | $ | — | $ | — | $ | 4,677 | |||||||
U.S. Government securities | 5,000 | 10 | — | 5,010 | |||||||||||
U.S. Government sponsored entities | 4,251 | — | (2 | ) | 4,249 | ||||||||||
Municipal obligations | 10,706 | — | (6 | ) | 10,700 | ||||||||||
$ | 24,634 | $ | 10 | $ | (8 | ) | $ | 24,636 | |||||||
Balance as of April 27, 2013: | |||||||||||||||
Certificates of deposit | $ | 4,677 | $ | — | $ | — | $ | 4,677 | |||||||
U.S. Government securities | 4,999 | 19 | — | 5,018 | |||||||||||
U.S. Government sponsored entities | 4,752 | — | — | 4,752 | |||||||||||
Municipal obligations | 9,596 | 9 | — | 9,605 | |||||||||||
$ | 24,024 | $ | 28 | $ | — | $ | 24,052 |
Less than 12 months | Greater than 12 months | Total | |||||||||
Certificates of deposit | $ | 1,718 | $ | 2,959 | $ | 4,677 | |||||
U.S. Government securities | 3,011 | 1,999 | 5,010 | ||||||||
U.S. Government sponsored entities | — | 4,249 | 4,249 | ||||||||
Municipal obligations | 4,141 | 6,559 | 10,700 | ||||||||
$ | 8,870 | $ | 15,766 | $ | 24,636 |
Live Events | Commercial | Transportation | International | Total | |||||||||||||||
Balance as of April 27, 2013: | $ | 2,417 | $ | 725 | $ | 164 | $ | — | $ | 3,306 | |||||||||
Acquisition, net of cash acquired | — | — | — | 1,300 | 1,300 | ||||||||||||||
Foreign currency translation | (3 | ) | (1 | ) | (3 | ) | 14 | 7 | |||||||||||
Balance as of July 27, 2013: | $ | 2,414 | $ | 724 | $ | 161 | $ | 1,314 | $ | 4,613 |
July 27, 2013 | April 27, 2013 | ||||||
Raw materials | $ | 26,589 | $ | 20,979 | |||
Work-in-process | 9,088 | 8,523 | |||||
Finished goods | 23,235 | 19,543 | |||||
$ | 58,912 | $ | 49,045 |
Amount | |||||
Beginning accrued warranty costs | $ | 25,146 | |||
Warranties issued during the period | 2,792 | ||||
Settlements made during the period | (4,260 | ) | |||
Changes in accrued warranty costs for pre-existing warranties during the period, including expirations | 1,309 | ||||
Ending accrued warranty costs | $ | 24,987 |
Fiscal years ending | Amount | |||
2014 | $ | 2,891 | ||
2015 | 2,151 | |||
2016 | 1,858 | |||
2017 | 968 | |||
2018 | 180 | |||
Thereafter | 26 | |||
$ | 8,074 |
Fiscal years ending | Amount | |||
2014 | $ | 1,221 | ||
2015 | 514 | |||
2016 | 377 | |||
2017 | 250 | |||
2018 | 250 | |||
Thereafter | — | |||
$ | 2,612 |
Fair Value Measurements | |||||||||||
Level 1 | Level 2 | Total | |||||||||
Balance as of July 27, 2013: | |||||||||||
Cash and cash equivalents | $ | 22,122 | $ | — | $ | 22,122 | |||||
Restricted cash | 43 | — | 43 | ||||||||
Available-for-sale securities: | |||||||||||
Certificates of deposit | — | 4,677 | 4,677 | ||||||||
U.S. Government securities | 5,010 | — | 5,010 | ||||||||
U.S. Government sponsored entities | — | 4,249 | 4,249 | ||||||||
Municipal obligations | — | 10,700 | 10,700 | ||||||||
Derivatives - currency forward contracts | — | 59 | 59 | ||||||||
$ | 27,175 | $ | 19,685 | $ | 46,860 | ||||||
Balance as of April 27, 2013: | |||||||||||
Cash and cash equivalents | $ | 40,628 | $ | — | $ | 40,628 | |||||
Restricted cash | 48 | — | 48 | ||||||||
Available-for-sale securities: | |||||||||||
Certificates of deposit | — | 4,677 | 4,677 | ||||||||
U.S. Government securities | 5,018 | — | 5,018 | ||||||||
U.S. Government sponsored entities | — | 4,752 | 4,752 | ||||||||
Municipal obligations | — | 9,605 | 9,605 | ||||||||
Derivatives - currency forward contracts | — | 7 | 7 | ||||||||
$ | 45,694 | $ | 19,041 | $ | 64,735 |
July 27, 2013 | April 27, 2013 | ||||||||||
U.S. Dollars | Foreign Currency | U.S. Dollars | Foreign Currency | ||||||||
Foreign Currency Exchange Forward Contracts: | |||||||||||
U.S. Dollars/Australian Dollars | 4,307 | 4,653 | 2,944 | 2,873 | |||||||
U.S. Dollars/Canadian Dollars | — | — | 492 | 492 | |||||||
U.S. Dollars/British Pounds | 694 | 447 | 1,554 | 1,005 | |||||||
U.S. Dollars/Euros | 756 | 574 | 153 | 114 |
• | The growing interest in our standard display products used in many different retail-type establishments, among other types of applications. The demand in this area is driven by retailers' and other types of commercial establishments' desire to attract the attention of motorists and others into their storefronts. It is also driven by the need to communicate messages to the public. National accounts may replace their displays reaching end of life, which could lead to increased sales. Furthermore, we believe in the future there will be increased demand from national accounts, including retailers, quick serve restaurants and other types of nationwide organizations, which could lead to increasing sales. |
• | Increasing interest in spectaculars, which include very large and sometimes highly customized displays as part of entertainment venues such as casinos, amusement parks and Times Square type locations. |
• | The introduction of architectural lighting products for commercial buildings, which real estate owners use to add accents or effects to an entire side or circumference of a building to communicate messages or to decorate the building. |
• | The continued deployment of digital billboards as billboard companies continue developing new sites for these and start to replace digital billboards which are reaching end of life. This is dependent on there being no adverse changes in the digital billboard regulatory environment, which could restrict future deployments of billboards, as well as maintaining our current market share of the business concentrated in a few large billboard companies. |
• | Facilities spending more on larger display systems. |
• | Lower product costs, which are driving an expansion of the marketplace. |
• | Our product and service offerings, which remain the most integrated and comprehensive offerings in the industry. |
• | The competitive nature of sports teams, which strive to out-perform their competitors with display systems. |
• | The desire for high-definition video displays, which typically drives larger displays or higher resolution displays, both of which increase the average transaction size. |
• | Increased demand for video systems in high schools as school districts realize the revenue generating potential of these displays versus traditional scoreboards. |
• | Increased demand for different types of displays, such as message centers at schools to communicate to students, parents and the broader community. |
• | The use of more sophisticated displays in more athletic venues, such as aquatics in schools. |
Three Months Ended | ||||||||||
(in thousands) | July 27, 2013 | July 28, 2012 | Percent Change | |||||||
Net Sales: | ||||||||||
Commercial | $ | 33,701 | $ | 38,356 | (12.1 | )% | ||||
Live Events | 55,077 | 44,509 | 23.7 | |||||||
Schools & Theatres | 17,917 | 18,174 | (1.4 | ) | ||||||
Transportation | 13,042 | 16,596 | (21.4 | ) | ||||||
International | 18,985 | 15,284 | 24.2 | |||||||
$ | 138,722 | $ | 132,919 | 4.4 | % | |||||
Orders: | ||||||||||
Commercial | $ | 36,975 | $ | 44,599 | (17.1 | )% | ||||
Live Events | 67,400 | 50,699 | 32.9 | |||||||
Schools & Theatres | 19,551 | 23,458 | (16.7 | ) | ||||||
Transportation | 13,969 | 32,036 | (56.4 | ) | ||||||
International | 21,388 | 22,750 | (6.0 | ) | ||||||
$ | 159,283 | $ | 173,542 | (8.2 | )% |
• | An increase of $0.6 million in sales of large custom video contracts due to a previous multi-million dollar custom video project order converting to sales in the first quarter of fiscal 2014. The level of large custom contract orders and sales in this niche is subject to volatility. |
• | A decrease of $3.2 million in our billboard niche due to the $9.5 million decline in order volume. Lower order levels were primarily the result of the volatility in the timing of orders. |
• | A decrease of $2.4 million in sales of on-premise advertising displays, which was primarily due to a decrease in replacement program orders for a national account customer as compared to the first quarter of fiscal 2013. |
• | An increase of $2.6 million in orders for large custom video projects during the three months ended July 27, 2013 compared to the same period in fiscal 2013. During the first quarter of fiscal 2014, we booked two video system orders for a combined total of $5.6 million. |
• | A decrease of $9.5 million in orders for billboard customers due to the volatility in the timing of orders. |
• | An increase of $4.7 million in sales related to university arena and stadium displays for orders booked in previous quarters. |
• | An increase of $3.7 million in sales related to professional sports stadiums for significant orders that were booked during the fourth quarter of fiscal 2013. |
Three Months Ended | |||||||||||||||
July 27, 2013 | July 28, 2012 | ||||||||||||||
Amount | As a Percent of Net Sales | Amount | As a Percent of Net Sales | ||||||||||||
(in thousands) | |||||||||||||||
Commercial | $ | 9,432 | 28.0 | % | $ | 9,849 | 25.7 | % | |||||||
Live Events | 11,347 | 20.6 | 10,237 | 23.0 | |||||||||||
Schools & Theatres | 5,859 | 32.7 | 5,188 | 28.5 | |||||||||||
Transportation | 2,972 | 22.8 | 6,732 | 40.6 | |||||||||||
International | 5,891 | 31.0 | 4,384 | 28.7 | |||||||||||
$ | 35,501 | 25.6 | % | $ | 36,390 | 27.4 | % |
Three Months Ended | ||||||||||||||||
July 27, 2013 | July 28, 2012 | |||||||||||||||
Amount | As a Percent of Net Sales | Percent Change | Amount | As a Percent of Net Sales | ||||||||||||
(in thousands) | ||||||||||||||||
Commercial | $ | 3,489 | 10.4 | % | (4.3 | )% | $ | 3,646 | 9.5 | % | ||||||
Live Events | 3,005 | 5.5 | (5.0 | ) | 3,162 | 7.1 | ||||||||||
Schools & Theatres | 2,711 | 15.1 | 3.9 | 2,610 | 14.4 | |||||||||||
Transportation | 826 | 6.3 | 9.7 | 753 | 4.5 | |||||||||||
International | 3,586 | 18.9 | 23.3 | 2,909 | 19.0 | |||||||||||
$ | 13,617 | 9.8 | % | 4.1 | % | $ | 13,080 | 9.8 | % |
Three Months Ended | ||||||||||||||||
July 27, 2013 | July 28, 2012 | |||||||||||||||
Amount | As a Percent of Net Sales | Percent Change | Amount | As a Percent of Net Sales | ||||||||||||
(in thousands) | ||||||||||||||||
General and administrative | $ | 7,299 | 5.3 | % | 10.9 | % | $ | 6,581 | 5.0 | % | ||||||
Product design and development | $ | 5,989 | 4.3 | % | (0.5 | )% | $ | 6,021 | 4.5 | % |
Three Months Ended | ||||||||||||||||
July 27, 2013 | July 28, 2012 | |||||||||||||||
Amount | As a Percent of Net Sales | Percent Change | Amount | As a Percent of Net Sales | ||||||||||||
(in thousands) | ||||||||||||||||
Interest income, net | $ | 228 | 0.2 | % | (33.7 | )% | $ | 344 | 0.3 | % | ||||||
Other (expense) income, net | $ | (392 | ) | (0.3 | )% | 117.8 | % | $ | (180 | ) | (0.1 | )% |
• | A decrease of approximately 3.2 percentage points due to a true-up in both federal and state accrued taxes from items received in the first quarter of fiscal 2014 outstanding from fiscal 2012. |
• | A decrease of approximately 2.3 percentage points caused by a change in our forecasted pre-tax income on the research and development tax credit which is currently set to expire on December 31, 2013. |
• | Various other items which have a greater impact on the effective rate due to lower income before taxes but are not material to the results. |
Three Months Ended | ||||||||||
July 27, 2013 | July 28, 2012 | Percent Change | ||||||||
(in thousands) | ||||||||||
Net cash (used in) provided by: | ||||||||||
Operating activities | $ | (4,618 | ) | $ | 16,508 | (128.0 | )% | |||
Investing activities | (5,959 | ) | (1,209 | ) | 392.9 | |||||
Financing activities | (8,175 | ) | (5,754 | ) | 42.1 | |||||
Effect of exchange rate changes on cash | 246 | (128 | ) | (292.2 | ) | |||||
Net (decrease) increase in cash and cash equivalents | $ | (18,506 | ) | $ | 9,417 | (296.5 | )% |
• | A decrease in net income of $1.0 million plus a decrease of $20.2 million from a net reduction for changes in net operating assets and liabilities, adjusted by $0.7 million for the increase in our provision for doubtful accounts. |
• | The most significant drivers of the change in net operating assets and liabilities from our previous fiscal year end at April 27, 2013 were the net result of the following: |
• | A decrease in cash from operations of $23.3 million caused by an increase in accounts receivable primarily due to the general increase in sales due to the seasonality of the sports business and general inherent variability of large contract timing and related billing schedule. Our accounts receivable balance was also $11.4 million higher than the first quarter of fiscal 2013 due to the general inherent variability of large contract timing and related billing schedule. |
• | An increase in inventories, which decreased cash from operations by $7.7 million. Days inventory outstanding (DIO)increased from 46 days as of April 27, 2013 to 54 days as of July 27, 2013, but it has remained consistent with 53 days as of July 28, 2012. Changes in inventory are primarily the result of increased backlog and planning for pending orders because of long part lead times. Our inventory balance was $3.0 million higher at July 27, 2013 than the balance at July 28, 2012 primarily due to the manufacturing and shipping schedules of larger video project orders during the first quarter. |
• | A net increase in cash of $3.6 million resulting from a decrease in costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings. Variability in costs and earnings in excess of billings and billings in excess of costs relates to the timing of billings on construction-type contracts and revenue recognition, which can vary significantly depending on contractual payment terms and build and installation schedules. Balances are also impacted by the seasonality of the sports business. |
• | A net increase in accounts payable and accrued liabilities of $7.5 million was primarily the result of a $1.8 million increase in payables related to a change in extended payment terms with one large supplier, a $5.4 million increase in payables and accruals related to outsourced installation costs for multiple large projects in process during the first quarter of fiscal 2014, and a $1.3 million increase in payables related to increases in inventory purchases. |
• | A net change in various other operating assets and liabilities, which increased cash from operations by $5.0 million. |
• | A decrease in the net cash invested in marketable securities, net of maturities. Our investment approach has remained consistent year over year as we try to maintain a consistent level of marketable securities and, therefore, the change was the result of the timing of investment decisions and investments of excess cash in marketable securities. |
• | An increase in purchases of property and equipment of $2.6 million. During the first three months of fiscal 2014, we invested $2.8 million in manufacturing equipment, $0.4 million in product demonstration equipment, $0.6 million in information systems infrastructure, including software, and $0.2 million in other assets. Capital expenditures are expected to be less than $16 million for fiscal 2014. |
• | $1.3 million used for an acquisition during the first quarter of fiscal 2014. |
• | A minimum fixed charge coverage ratio of at least 2 to 1 at the end of any fiscal year. The ratio is equal to (a) EBITDA less dividends, a capital expenditure reserve of $6 million, and income tax expense, over (b) all principal and interest payments with respect to debt, excluding debt outstanding on the line of credit; and |
• | A ratio of interest-bearing debt, excluding any marketing obligations, to EBITDA of less than 1 to 1 at the end of any fiscal quarter. |
Fiscal Years (in thousands) | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Long-term receivables, including current maturities: | |||||||||||||||||||||||
Fixed-rate | $ | 3,524 | $ | 3,901 | $ | 3,026 | $ | 1,908 | $ | 1,248 | $ | 1,363 | |||||||||||
Average interest rate | 8.1 | % | 8.1 | % | 7.9 | % | 8.2 | % | 8.3 | % | 8.5 | % | |||||||||||
Liabilities: | |||||||||||||||||||||||
Long and short-term debt: | |||||||||||||||||||||||
Variable-rate | $ | 318 | $ | 783 | $ | 443 | $ | 463 | $ | 484 | $ | 506 | |||||||||||
Average interest rate | 5.0 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||
Long-term marketing obligations, including current portion: | |||||||||||||||||||||||
Fixed-rate | $ | 322 | $ | 247 | $ | 121 | $ | 13 | $ | 13 | $ | 2 | |||||||||||
Average interest rate | 8.8 | % | 8.9 | % | 8.8 | % | 8.2 | % | 8.4 | % | 9.0 | % |
3.1 | Amended and Restated Articles of Incorporation of the Company. (1) | |
3.2 | Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.4 filed with our Annual Report on Form 10-K on June 12, 2013 as Commission File No. 0-23246). | |
31.1 | Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (1) | |
31.2 | Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (1) | |
32.1 | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350). (1) | |
32.2 | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350). (1) | |
101 | The following financial information from our Quarterly Report on Form 10-Q for the period ended July 27, 2013, formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements. (1)(2) | |
(1) | Filed herewith electronically. | |
(2) | Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be deemed part of a registration statement, prospectus or other document filed under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filings. |
/s/ Sheila M. Anderson | |
Daktronics, Inc. | |
Sheila M. Anderson | |
Chief Financial Officer | |
(Principal Financial Officer and | |
Principal Accounting Officer) | |
Date: August 30, 2013 |
3.1 | Amended and Restated Articles of Incorporation of the Company. (1) | |
3.2 | Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.4 filed with our Annual Report on Form 10-K on June 12, 2013 as Commission File No. 0-23246). | |
31.1 | Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (1) | |
31.2 | Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (1) | |
32.1 | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350). (1) | |
32.2 | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350). (1) | |
101 | The following financial information from our Quarterly Report on Form 10-Q for the period ended July 27, 2013, formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements. (1)(2) | |
(1) | Filed herewith electronically. | |
(2) | Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be deemed part of a registration statement, prospectus or other document filed under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filings. |
DAKTRONICS, INC. | |
By: /s/ James B. Morgan | |
James B. Morgan, President | |
(NO SEAL) | |
By: /s/ Carla S. Gatzke | |
Carla S. Gatzke, Secretary | |
STATE OF SOUTH DAKOTA ) | |
) SS. | |
COUNTY OF BROOKINGS ) | |
Audrey Kress | |
Notary Public | |
My Commission Expires: 12/07/2016 | |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended July 27, 2013 of Daktronics, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financially reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ James B. Morgan | |
James B. Morgan | |
Chief Executive Officer | |
Date: August 30, 2013 |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended July 27, 2013 of Daktronics, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financially reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Sheila M. Anderson | |
Sheila M. Anderson | |
Chief Financial Officer | |
Date: August 30, 2013 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ James B. Morgan |
James B. Morgan |
Chief Executive Officer |
Date: August 30, 2013 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Sheila M. Anderson |
Sheila M. Anderson |
Chief Financial Officer |
Date: August 30, 2013 |
D!\@'Z`@,"#`(4`AT")@(O
M`C@"00)+`E0"70)G`G$">@*$`HX"F`*B`JP"M@+!`LL"U0+@`NL"]0,``PL#
M%@,A`RT#.`-#`T\#6@-F`W(#?@.*`Y8#H@.N`[H#QP/3`^`#[`/Y!`8$$P0@
M!"T$.P1(!%4$8P1Q!'X$C`2:!*@$M@3$!-,$X03P!/X%#044%]@8&!A8&)P8W!D@&609J!GL&C`:=!J\&P`;1
M!N,&]0<'!QD'*P<]!T\'80=T!X8'F0>L![\'T@?E!_@("P@?"#((1@A:"&X(
M@@B6"*H(O@C2".<(^PD0"24).@E/"60)>0F/":0)N@G/">4)^PH1"B<*/0I4
M"FH*@0J8"JX*Q0K<"O,+"PLB"SD+40MI"X`+F`NP"\@+X0OY#!(,*@Q##%P,
M=0R.#*<,P`S9#/,-#0TF#4`-6@UT#8X-J0W##=X-^`X3#BX.20YD#G\.FPZV
M#M(.[@\)#R4/00]>#WH/E@^S#\\/[!`)$"800Q!A$'X0FQ"Y$-<0]1$3$3$1
M3Q%M$8P1JA')$>@2!Q(F$D429!*$$J,2PQ+C$P,3(Q-#$V,3@Q.D$\43Y10&
M%"<4211J%(L4K13.%/`5$A4T%585>!6;%;T5X!8#%B86219L%H\6LA;6%OH7
M'1=!%V47B1>N%](7]Q@;&$`891B*&*\8U1CZ&2`911EK&9$9MQG=&@0:*AI1
M&G<:GAK%&NP;%!L[&V,;BANR&]H<`APJ'%(<>QRC',P<]1T>'4<=:AZ4'KX>Z1\3'SX?:1^4'[\?ZB`5($$@;""8(,0@\"$<(4@A=2&A
M( &YXS'DJ>8EYYWI&>J5[!'MC>\)\(7R!?.%]
M07VA?@%^8G["?R-_A'_E@$>`J($*@6N!S8(P@I*"](-7@[J$'82`A..%1X6K
MA@Z&
Fair Value Measurement
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Fair Value Measurement ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer the liability (an exit price) in an orderly transaction between market participants at the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy within ASC 820 distinguishes between the following three levels of inputs that may be utilized when measuring fair value. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included within Level 1 for the assets or liabilities, either directly or indirectly (for example, quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated input.) Level 3 - Unobservable inputs supported by little or no market activity based on our own assumptions used to measure assets and liabilities. The fair values for fixed-rate contracts receivable are estimated using a discounted cash flow analysis based on interest rates currently being offered for contracts with similar terms to customers with similar credit quality. The carrying amounts reported on our consolidated balance sheets for contracts receivable approximate fair value and have been categorized as a Level 2 fair value measurement. Fair values for fixed-rate long-term marketing obligations are estimated using a discounted cash flow calculation applying interest rates currently being offered for debt with similar terms and underlying collateral. The total carrying value of long-term marketing obligations as reported on our consolidated balance sheets within other long-term obligations approximates fair value and has been categorized as a Level 2 fair value measurement. The following table sets forth by Level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at July 27, 2013 and April 27, 2013 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.
The following methods and assumptions were used to estimate the fair value of each class of financial instrument. There have been no changes in the valuation techniques used by us to value our financial instruments. Cash and cash equivalents: Consists of cash on hand in bank deposits and highly liquid investments, primarily money market accounts. The fair value was measured using quoted market prices in active markets. The carrying amount approximates fair value. Restricted cash: Consists of cash and cash equivalents that are held in bank deposit accounts to secure issuances of foreign bank guarantees. The fair value of restricted cash was measured using quoted market prices in active markets. The carrying amount approximates fair value. Certificates of deposit: Consists of time deposit accounts with original maturities of less than three years and various yields. The fair value of these securities was measured based on valuations observed in less active markets than Level 1 investments from a third-party financial institution. The carrying amount approximates fair value. U.S. Government securities: Consists of U.S. Government treasury bills, notes, and bonds with original maturities of less than three years and various yields. The fair value of these securities was measured using quoted market prices in active markets. U.S. Government sponsored entities: Consist of Fannie Mae and Federal Home Loan Bank investment grade debt securities trading with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. The fair value of these securities was measured based on valuations observed in less active markets than Level 1 investments. The contractual maturities of these investments vary from one month to three years. Municipal obligations: Consist of investment grade municipal bonds trading with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. The contractual maturities of these investments vary from one month to three years. The fair value of these bonds was measured based on valuations observed in less active markets than Level 1 investments. Derivatives – currency forward contracts: Consists of currency forward contracts trading with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. The fair value of these securities was measured based on valuation from a third-party bank. See Note 12 for more information regarding our derivatives. The fair value measurement standard also applies to certain non-financial assets and liabilities that are measured at fair value on a nonrecurring basis. For example, certain long-lived assets such as goodwill, intangible assets and property, plant and equipment are measured at fair value in connection with business combinations or when an impairment is recognized and the related assets are written down to fair value. We utilized the fair value measurement standard to value the assets and liabilities for the business combination involving OPEN which occurred during the first three months of fiscal 2014. We did not recognize any impairment losses during the first three months of fiscal 2014. See Note 5 for more information on the business combination. We did not make any material business combinations or recognize any significant impairment losses during fiscal 2013. |
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Jul. 27, 2013
|
Jul. 28, 2012
|
|
Income Statement [Abstract] | ||
Net sales | $ 138,722 | $ 132,919 |
Cost of goods sold | 103,221 | 96,529 |
Gross profit | 35,501 | 36,390 |
Operating expenses: | ||
Selling expense | 13,617 | 13,080 |
General and administrative | 7,299 | 6,581 |
Product design and development | 5,989 | 6,021 |
Total operating expenses | 26,905 | 25,682 |
Operating income | 8,596 | 10,708 |
Nonoperating income (expense): | ||
Interest income | 343 | 431 |
Interest expense | (115) | (87) |
Other (expense) income, net | (392) | (180) |
Income before income taxes | 8,432 | 10,872 |
Income tax expense | 2,712 | 4,194 |
Net income | $ 5,720 | $ 6,678 |
Weighted average shares outstanding: | ||
Basic (in shares) | 42,528 | 42,068 |
Diluted (in shares) | 42,766 | 42,141 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.13 | $ 0.16 |
Diluted (in dollars per share) | $ 0.13 | $ 0.16 |
Cash dividend declared per share (in dollars per share) | $ 0.120 | $ 0.115 |
Marketable Securities
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | Marketable Securities We have a cash management program which provides for the investment of cash balances not used in current operations. We classify our investments in marketable securities as available-for-sale in accordance with the provisions of ASC 320, Investments – Debt and Equity Securities. Marketable securities classified as available-for-sale are reported at fair value with unrealized gains or losses, net of tax, reported in accumulated other comprehensive (loss) income. As it relates to fixed income marketable securities, we do not intend to sell any of these investments, and it is not more-likely-than-not we will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of July 27, 2013, we anticipate we will recover the entire amortized cost basis of such fixed income securities, and we have determined no other-than-temporary impairments associated with credit losses were required to be recognized. The cost of securities sold is based on the specific identification method. Where quoted market prices are not available, we use the market price of similar types of securities traded in the market to estimate fair value. As of July 27, 2013 and April 27, 2013, our available-for-sale securities consisted of the following:
Realized gains or losses on investments are recorded in our consolidated statements of operations as other (expense) income, net. Upon the sale of a security classified as available-for-sale, the security’s specific unrealized gain (loss) is reclassified out of "accumulated other comprehensive (loss) income” and into earnings based on the specific identification method. In the three months ended July 27, 2013 and July 28, 2012, the reclassifications from accumulated other comprehensive (loss) income to net assets were immaterial. Realized gains and losses on sales or maturities of investments were immaterial in the three months ended July 27, 2013 and July 28, 2012. All available-for-sale securities are classified as current assets, as they are readily available to support our current operating needs. The contractual maturities of available-for-sale debt securities as of July 27, 2013 were as follows:
|
Goodwill (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill related to each reportable segment for the three months ended July 27, 2013 were as follows:
|
Derivative Financial Instruments
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We utilize derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates on those transactions denominated in currencies other than our functional currency, which is the U.S. dollar. We enter into currency forward contracts to manage these economic risks. We account for all derivatives on the balance sheet within other assets or accounts payable measured at fair value, and changes in fair values are recognized in earnings unless specific hedge accounting criteria are met for cash flow or net investment hedges. As of July 27, 2013 and April 27, 2013, we had not designated any of our derivative instruments as accounting hedges, and thus we recorded the changes in fair value in other (expense) income, net. The foreign currency exchange contracts in aggregated notional amounts in place to exchange United States Dollars at July 27, 2013 and April 27, 2013 were as follows:
As of July 27, 2013 and April 27, 2013, there was a net asset of $59 and $7, respectively, representing the fair value of foreign currency exchange forward contracts, which was determined using Level 2 inputs from a third-party bank. |
Receivables (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jul. 27, 2013
|
Apr. 27, 2013
|
Jul. 27, 2013
Financing Receivable
|
Apr. 27, 2013
Financing Receivable
|
Jul. 27, 2013
Financing Receivable
Minimum
|
Jul. 27, 2013
Financing Receivable
Maximum
|
|
Receivables | ||||||
Allowance for doubtful accounts | $ 3,231 | $ 2,729 | ||||
Long-term contracts and lease receivables, present value | 15,430 | 16,132 | ||||
Contract and lease receivables annual interest rates | 5.80% | 10.00% | ||||
Long-term contracts and lease receivables, face amount | 17,715 | 18,731 | ||||
Retainage on construction-type contracts, expected to be collected in one year | $ 258 | $ 803 |
Fair Value Measurement (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value | The following table sets forth by Level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at July 27, 2013 and April 27, 2013 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.
|
Commitments and Contingencies (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | Changes in our warranty liability for the three months ended July 27, 2013 consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum payments under noncancelable operating leases, excluding executory costs such as management and maintenance fees, with initial or remaining terms of one year or more consisted of the following at July 27, 2013:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment | As of July 27, 2013, we were obligated under the following conditional and unconditional purchase commitments, which included $1,000 in conditional purchase commitments.
|
Marketable Securities - Available-for-sale by Maturity Date (Details) (USD $)
In Thousands, unless otherwise specified |
Jul. 27, 2013
|
---|---|
Schedule of Available-for-sale Securities | |
Less than 12 months | $ 8,870 |
Greater than 12 months | 15,766 |
Total | 24,636 |
Certificates of deposit
|
|
Schedule of Available-for-sale Securities | |
Less than 12 months | 1,718 |
Greater than 12 months | 2,959 |
Total | 4,677 |
U.S. Government securities
|
|
Schedule of Available-for-sale Securities | |
Less than 12 months | 3,011 |
Greater than 12 months | 1,999 |
Total | 5,010 |
U.S. Government sponsored entities
|
|
Schedule of Available-for-sale Securities | |
Less than 12 months | 0 |
Greater than 12 months | 4,249 |
Total | 4,249 |
Municipal obligations
|
|
Schedule of Available-for-sale Securities | |
Less than 12 months | 4,141 |
Greater than 12 months | 6,559 |
Total | $ 10,700 |
Commitments and Contingencies - Leases (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Jul. 27, 2013
|
Jul. 28, 2012
|
|
Operating Leased Assets | ||
Operating leases, rent expense | $ 724 | $ 718 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | ||
2014 | 2,891 | |
2015 | 2,151 | |
2016 | 1,858 | |
2017 | 968 | |
2018 | 180 | |
Thereafter | 26 | |
Total | 8,074 | |
January 1, 2015 to December 31, 2016
|
||
Operating Leased Assets | ||
Operating leases, purchase option price | 8,400 | |
Year ending December 2017
|
||
Operating Leased Assets | ||
Operating leases, purchase option price | 8,600 | |
Year ending December 2018
|
||
Operating Leased Assets | ||
Operating leases, purchase option price | $ 8,800 |
Inventories (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following:
|
Earnings Per Share EPS
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share EPS | Earnings Per Share ("EPS") Basic EPS is computed by dividing income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other obligations to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock sharing in our earnings. The following is a reconciliation of the income and common share amounts used in the calculation of basic and diluted EPS for the three months ended July 27, 2013 and July 28, 2012:
Options outstanding to purchase 2,267 shares of common stock with a weighted average exercise price of $16.04 for the three months ended July 27, 2013 and 3,133 shares of common stock with a weighted average exercise price of $14.11 for the three months ended July 28, 2012 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. |
Business Combination
|
3 Months Ended |
---|---|
Jul. 27, 2013
|
|
Business Combinations [Abstract] | |
Business Combination | Business Combination We acquired 100 percent ownership in OPEN Out-of Home Solutions ("OPEN"), a Belgian company, on May 8, 2013 for an undisclosed amount. Results of the operations have been included in the consolidated financial statements since the date of acquisition. We have not made pro forma disclosures, as the results of operations are not material to our consolidated financial statements. OPEN is a European manufacturer of cabinets and street furniture for the Third Party Advertising ("TPA") market. This acquisition expanded our product offerings to TPA's as they adopt digital technology and another plant to manufacture digital advertising displays. This acquisition was funded with cash on hand and a note payable over five years. During the first quarter of fiscal 2014, the preliminary fair value measurements of assets acquired and liabilities assumed, as of the acquisition date, were completed. The excess of the purchase price over the net tangible and intangible assets was recorded as goodwill of $1,300. Included in the purchase price allocation was acquired identifiable intangibles valued at $1,151 representing trade names with a useful life of 20 years and a customer list valued at $615 with a useful life of nine years. The purchase price allocation will be completed during fiscal 2014. |
Segment Disclosure
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Disclosure | Segment Disclosure We have organized our business into five segments which meet the definition of reportable segments under Accounting Standards Codification ("ASC") 280-10, Segment Reporting: Commercial, Live Events, Schools and Theatres, Transportation, and the International business unit. These segments are based on the type of customer and geography. Our Commercial business unit primarily consists of sales of our video display systems, digital billboards, Galaxy® and Fuelight™ product lines to resellers (primarily sign companies), outdoor advertisers, national retailers, quick-serve restaurants, casinos and petroleum retailers. Our Live Events business unit primarily consists of sales of integrated scoring and video display systems to college and professional sports facilities and convention centers and sales of our mobile display technology to video rental organizations and other live events type venues. Our Schools and Theatres business unit primarily consists of sales of scoring systems, Galaxy® displays and video display systems to primary and secondary education facilities and sales of our Vortek® automated rigging systems for theatre applications. Our Transportation business unit primarily consists of sales of our Vanguard® and Galaxy® product lines to governmental transportation departments, airlines and other transportation related customers. Our International business unit consists of sales of all product lines outside the United States and Canada. Segment reports present results through contribution margin, which is comprised of gross profit less selling costs. Segment profit excludes general and administration expense, product development expense, interest income and expense, non-operating income and income tax expense. Assets are not allocated to the segments. Depreciation and amortization, excluding the portion related to non-allocated costs, are allocated to each segment based on various financial measures. In general, segments follow the same accounting policies as those described in Note 1 of our Annual Report on Form 10-K. Unabsorbed costs of domestic field sales and services infrastructure, including most field administrative staff, are allocated to the Commercial, Live Events, Transportation, and Schools and Theatres business units based on cost of sales. Shared manufacturing, building and utilities, and procurement costs are allocated based on payroll dollars, square footage and various other financial measures. We do not maintain information on sales by products; therefore, disclosure of such information is not practical. The following table sets forth certain financial information for each of our five operating segments for the periods indicated:
No single geographic area comprises a material amount of net sales or long-lived assets net of accumulated depreciation other than the United States. The following table presents information about net sales and long-lived assets in the United States and elsewhere:
We have numerous customers worldwide for sales of our products and services; therefore, we are not economically dependent on a limited number of customers for the sale of our products and services. |
Commitments and Contingencies - Purchase Commitments (Details) (USD $)
In Thousands, unless otherwise specified |
Jul. 27, 2013
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Conditional purchase commitment | $ 1,000 |
Purchase Obligation, Fiscal Year Maturity | |
2014 | 1,221 |
2015 | 514 |
2016 | 377 |
2017 | 250 |
2018 | 250 |
Thereafter | 0 |
Total | $ 2,612 |
Derivative Financial Instruments (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The foreign currency exchange contracts in aggregated notional amounts in place to exchange United States Dollars at July 27, 2013 and April 27, 2013 were as follows:
|
Segment Disclosure - Net Sales and Long-lived Assets by Geographic Area (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||
---|---|---|---|
Jul. 27, 2013
|
Jul. 28, 2012
|
Apr. 27, 2013
|
|
Net sales: | |||
United States | $ 115,451 | $ 115,759 | |
Outside U.S. | 23,271 | 17,160 | |
Net sales | 138,722 | 132,919 | |
Long-lived assets: | |||
United States | 60,291 | 60,060 | |
Outside U.S. | 4,235 | 1,565 | |
Long-lived assets | $ 64,526 | $ 61,625 |
Inventories (Details) (USD $)
In Thousands, unless otherwise specified |
Jul. 27, 2013
|
Apr. 27, 2013
|
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 26,589 | $ 20,979 |
Work-in-process | 9,088 | 8,523 |
Finished goods | 23,235 | 19,543 |
Inventories | $ 58,912 | $ 49,045 |