Daktronics certainly doesn’t have the strongest economy in the country, or even in South Dakota. According to their latest earnings report, the Brookings-based manufacturer lost $13 million in Q2:
The company blamed supply chain problems and higher costs for materials, labor and freight. The company said it aggressively secured inventory to address supply chain volatility, and that approach consumed cash.
“These times have stressed our liquidity beyond levels that we have ever seen, and our financial resources have not been sufficiently flexible,” President and CEO Reece Kurtenbach said in a news release. “Our immediate priority is to restore our balance sheet to historical levels of liquidity. We are pursuing avenues to strengthen our financing flexibility by adding liquidity and diversifying our funding sources.”
The earnings report included net sales of $187 million during the quarter. The report was delayed last week due to “substantial doubt” about the company’s ability to continue, and the discovery of a “material weakness relating to the lack of adequate and appropriate financial reporting.” That information sent Daktronics stocks plummeting by 39% last week to as low as $1.46 per share.
As of Monday, the company’s stock rose as high as $2.48, which was still about a dollar lower than before the company delayed its earnings report [Makenzie Huber, “Daktronics Reports $13 Million Loss in Second Quarter,” South Dakota Searchlight, 2022.12.12].
I suppose the upside for South Dakota economic boosters is, thank goodness Daktronics continues to domicile in South Dakota so it doesn’t have to pay state income tax.
Part of the seeming poor performance comes from Daktronics’s burning up cash to bulk up its parts inventory amidst the supply-chain crunch to make sure it has enough components on hand to hammer away at its $463M backlog of product orders. Daktronics notes that orders increased 11.7% in Q2 2022 versus Q2 2021. That figure could have been higher, but its international orders “softened… due to weakening economic outlook relating to geopolitical events and currency headwinds.” (Translation: thank Joe Biden for keeping the U.S. economy stronger than the global economy!)
Since American football is fascism and in South Dakota stadia, underground labs and pavilions are named for serial usurers and child pornographers I sold my Daktronics stock in 2014 for about $14. Watching Brookings living and dying in three quarter time makes me happy. Little wonder the Big Sioux River is a sewer of biblical proportions.
Bidenflation
Daktronics is home to a thriving progressive technocracy while Brookings Utilities is a right wing mob: go figure.
grudz-blaming Biden for the inflation is like blaming Jimmy Carter for the ’80s inflation he inherited from the previous two GOP presidents:
“I am not a crook” Nixon and “I forgive you for our country” Ford. Yep, always the Democrat’s fault after the GOP screws the countru up big-time. Kinda like the younger Bush handing off to Obama the financial mess he created on his watch.
And that would bring us to the present: your former GOP conservatively flavored president played footsies with Putin even before being elected by the Electoral Act (he lost the ‘people vote” too) and left Biden the job of “clean up on aisle 10” like it seems your GOP boys always do.
Baphomet would be proud of grudznick, Mr. Jake.
South Dakota’s weather is so horrible because South Dakotans deserve it.
Baaah! No goat got here, grud, we’re on to ya…. You probably look like that goat idol of yours..
You misspelled biding grudz.
Made you do the google again, Mr. Jake
Republican is simply another word for Earth hater.
After Stan Adelstein dies DFP might actually be free of the detritus it suffers.
Denver Bronco’s new owners, the Walmart money, announced a $100 million upgrade to Mile-High Stadium, today. At least half of that will be tripling the size of the video screen, which will be a Daktronics contract.