Daktronics Inc Stock Price, News & Analysis

Daktronics (NASDAQ:DAKT) has responded to public statements from Alta Fox Capital Management regarding their $25 million convertible debt investment from May 2023. The company reveals that Alta Fox demanded early repayment of the 20-month-old debt at more than triple its face value and nearly 50% above fair value. Daktronics' Board rejected this proposal as too costly for shareholders.

Alta Fox reportedly threatened litigation, a special shareholder meeting, and board nominations if their terms weren't met. The company has made a counterproposal reflecting market value and continues to focus on its business transformation plan. Notably, Daktronics' stock closed at $19.24, exceeding Alta Fox's initial $16.23 target from May 2023.

Alta Fox Capital Management, Daktronics' largest shareholder with 11.7% ownership, has released a presentation highlighting governance issues and proposing reforms at the company. The investor criticizes the current leadership under CEO and Chairman Reece Kurtenbach for poor performance, citing 195% underperformance versus the S&P 500 during his tenure.

Alta Fox outlines a path to reach ~$40 per share through governance reforms including board refreshment, splitting CEO/Chairman roles, and improving investor communications. The firm plans to nominate independent director candidates for the 2025 annual meeting and proposes hiring a qualified CFO with public company experience.

The presentation criticizes Daktronics' family business mentality, noting that three of five named executive officers are Kurtenbach family members, and highlights concerns about ineffective corporate governance practices including staggered board terms and a poison pill.

Daktronics (DAKT), a global leader in video display systems, announced its participation in The Benchmark Company's 13th Annual Discovery One-on-One Investor Conference. The event will take place on December 11th, 2024 at the New York Athletic Club in New York City.

CEO Reece Kurtenbach and CFO Sheila Anderson will represent Daktronics, engaging in one-on-one meetings with investors and analysts throughout the conference. This format provides emerging growth companies direct access to institutional and individual investors.

Interested investors can schedule meetings with Daktronics executives through the conference's online registration system.

Daktronics (NASDAQ:DAKT) reported strong fiscal Q2 2025 results with sales of $208.3 million, up 4.5% year-over-year. The company achieved record cash flows from operations of $43.3 million for the quarter and $62.8 million for the first six months of fiscal 2025.

Key financial highlights include gross profit margin of 26.8%, operating income of $15.8 million, and net income of $21.4 million. Product order backlog stood at $236.0 million, while product and service orders reached $177.6 million for the quarter.

The company is executing its business transformation plan aimed at growing revenue faster than the addressable market and expanding operating margins. Daktronics also announced plans to convert its $25.0 million Convertible Note to common stock in tranches, which will save approximately $5.2 million in interest expense.

Daktronics (NASDAQ: DAKT) announced it will release its second quarter fiscal 2025 financial results on Wednesday, December 4, 2024, before market opens. The company will host a conference call and webcast at 10:00 AM CT on the same day, led by CEO Reece A. Kurtenbach and CFO Sheila M. Anderson.

Daktronics (NASDAQ:DAKT) has announced amendments to its Shareholder Rights Agreement, extending it to November 19, 2025, with a new exercise price of $40.00 and beneficial ownership thresholds of 15% (20% for passive investors). The company plans to convert $7 million of Alta Fox's $25 million convertible note into approximately 1.1 million shares, resulting in Alta Fox owning about 6% of outstanding shares. The Board rejected Alta Fox's proposal demanding $79 million to retire the note, viewing it as not in shareholders' best interests. The Rights Agreement extension aims to protect shareholder interests, particularly given Alta Fox's threats to nominate board candidates.

Daktronics (NASDAQ:DAKT) has announced plans to convert a $25 million convertible promissory note held by Alta Fox Capital Management into common stock, starting with an initial $7 million conversion on December 3, 2024. The remaining amount will be converted in tranches up to $7 million every 30 days. This decision follows the company's strong financial performance, with record revenue and profits in FY2024, and a stock price increase of over 300% in two years. The conversion will save approximately $5.4 million in interest expenses. To offset dilution, the company plans to execute share repurchases. Due to Alta Fox's 3% ownership Maximum Percentage limit, share delivery will be delayed until Alta Fox certifies lower ownership levels.

Daktronics Inc (NASDAQ: DAKT) has announced the next phase of its ongoing business transformation plan aimed at accelerating profitable growth, increasing profit margins, and driving returns consistently in the mid-to-high teens. The company has formed an internal Business Transformation Office (BTO) and an ad hoc transformation committee of the Board to oversee execution of strategic initiatives.

Key points include:

• Board initiates search for a new Chief Financial Officer
• Sheila Anderson appointed to new role of Chief Data and Analytics Officer
• Company evaluating opportunities to use and potentially augment its $29 million share repurchase authorization
• Expects Q2 fiscal 2025 revenue, gross profit, and operating income to be in line with analyst consensus

The company aims to grow revenue faster than its addressable market, expand operating margins, and generate returns on capital consistently above its cost of capital.

The Miami HEAT have partnered with Daktronics (NASDAQ: DAKT) to create the first-ever Flame Ball centerhung at Kaseya Center, Miami. The new installation features 61 LED displays covering over 11,000 square feet of digital canvas, a 585% increase from previous displays. The system boasts 72 million pixels, powered by Daktronics Show Control. The centerhung itself has 55 million pixels and 7,440 square feet of digital canvas, with the Flame Ball contributing 2,525 square feet. Additional displays installed in 2023 include corner displays, event floor clocks, basket stanchion displays, and vomitory displays. Daktronics' Camino control system enhances functionality, allowing for dynamic, real-time content rendering.