Daktronics, Inc. (NASDAQ:DAKT) Q3 2023 Earnings Conference Call March 8, 2023 11:00 AM ET

Company Participants

Reece Kurtenbach - President and Chief Executive Officer

Sheila Anderson - Chief Financial Officer and Treasurer

Conference Call Participants

Operator

Good day, ladies and gentlemen. And welcome to Daktronics Fiscal Year 2023 Third Quarter Earnings Conference Call. As a reminder, this conference is being recorded today, Wednesday, March 8, and is available on the company's website at www.daktronics.com. [Operator Instructions]

I would now like to turn the conference over to Ms. Sheila Anderson, Chief Financial Officer for Daktronics for some introductory remarks. Please go ahead, Sheila.

Sheila Anderson

Thank you, Michelle. Good morning, everyone. Thank you for participating in our third quarter earnings conference call. I would like to review our disclosures, cautioning investors and participants that in addition to statements of historical facts, we will be discussing forward-looking statements reflecting our expectations and plans about our future financial performance and future business opportunities. All forward-looking statements involve risks and uncertainties which may be out of our control and may cause actual results to differ materially. Such risks include, but not limited to, our ability to obtain additional financing on terms favorable to us or at all, changes in economic conditions, changes in the competitive and market landscape, including impacts of global trade discussions and policies. The impacts of governmental laws, regulations and orders, including those resulting from pandemics, disruptions to our business caused by geopolitical events, military actions, work stoppages, natural disasters or international health emergencies such as the COVID-⁠19 pandemic. Any future goodwill impairment charges, management of growth, timing and magnitude of future contracts, fluctuations of margins, availability of raw materials, components and shipping services, the introduction of new products and technologies, and other important factors. These identified important factors could cause actual results to differ materially from those disclosed in this call in the company's third quarter 2023 earnings release and its most annual report on Form 10-K. We refer you to these documents. Our third quarter 2023 earnings release contains certain non- GAAP financial measures and was furnished to the SEC, Securities and Exchange Commission on a Form 8-K this morning and is available on the Investors section at the Daktronics website at www.daktronics.com.

I'll turn the call over to our CEO, Reece Kurtenbach.

Reece Kurtenbach

Thanks, Sheila. Good morning. Thank you for joining us today. Our past actions to carefully match our production schedules, inventory and labor to demand fulfillment were successful as measured by the increase in sales and generation of operating income for the third quarter. The pandemic recovery period was unprecedented. The last 24 months were marked by historically high demand while experiencing persistent instability of supply chains, a tight labor market and inflationary conditions. We are seeing supply chain conditions easing, which supports a more stable production schedule. We have also increased production capacity to match market demand, which was achieved despite labor shortages and long cycle times for the technology and fixed assets necessary to increase output on an ROI positive basis.