-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DmnPmPlMz+GJA5bRkb5MCM9pR/swg6WziMXn9dN8oOJn0NaW1VaX4i12Mrqy7/TA b9UYxhRHki8IlSiNRmbzJw== 0000067215-95-000009.txt : 19951213 0000067215-95-000009.hdr.sgml : 19951213 ACCESSION NUMBER: 0000067215-95-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951031 FILED AS OF DATE: 19951212 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DYCOM INDUSTRIES INC CENTRAL INDEX KEY: 0000067215 STANDARD INDUSTRIAL CLASSIFICATION: WATER, SEWER, PIPELINE, COMM AND POWER LINE CONSTRUCTION [1623] IRS NUMBER: 591277135 STATE OF INCORPORATION: FL FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10613 FILM NUMBER: 95601038 BUSINESS ADDRESS: STREET 1: 450 AUSTRALIAN AVE SOUTH STE 860 CITY: WEST PALM BEACH STATE: FL ZIP: 33401 BUSINESS PHONE: 4076596301 MAIL ADDRESS: STREET 1: 450 AUSTRALIAN AVENUE SOUTH STREET 2: SUITE 860 CITY: WEST PALM BEACH STATE: FL ZIP: 33401 FORMER COMPANY: FORMER CONFORMED NAME: MOBILE HOME DYNAMICS INC DATE OF NAME CHANGE: 19820302 10-Q 1 DYCOM INDUSTRIES, INC 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to________ Commission file number 0-5423 DYCOM INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Florida 59-1277135 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 450 Australian Avenue, South, West Palm Beach, Florida 33401 (Address of principal executive office) (Zip Code) (407) 659-6301 (Registrant's telephone number, including area code) 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 as of December 7, 1995 _____ __________________________________ Common Stock, par value $0.33 1/3 8,551,931 2 DYCOM INDUSTRIES, INC. INDEX
Page No. ________ PART I. FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Balance Sheets- October 31, 1995 and July 31, 1995 3 Condensed Consolidated Statements of Operations for the Three Months Ended October 31, 1995 and 1994 4 Condensed Consolidated Statements of Cash Flows for the Three Months Ended October 31, 1995 and 1994 5-6 Notes to Condensed Consolidated Financial Statements 7-11 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12-14 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 15 SIGNATURES 16 EXHIBIT INDEX 17
3 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
October 31, July 31, 1995 1995 ____ ____ ASSETS CURRENT ASSETS: Cash and equivalents $ 6,218,800 $ 4,306,675 Accounts receivable, net 12,579,133 16,330,477 Costs and estimated earnings in excess of billings 6,589,468 5,223,425 Deferred tax assets 1,006,767 385,755 Other current assets 1,240,641 1,396,201 ------------ ------------ Total current assets 27,634,809 27,642,533 ------------ ------------ PROPERTY AND EQUIPMENT, net 18,172,910 18,802,563 ------------ ------------ OTHER ASSETS: Intangible assets, net 4,955,762 4,994,535 Other 359,503 353,227 ------------ ------------ Total other assets 5,315,265 5,347,762 ------------ ------------ TOTAL $ 51,122,984 $ 51,792,858 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 3,813,493 $ 5,607,567 Notes payable 4,828,330 4,955,080 Billings in excess of costs and estimated earnings 100,951 Accrued self-insured claims 2,811,291 2,266,855 Income taxes payable 1,404,744 621,483 Other accrued liabilities 6,675,472 6,585,387 ------------ ------------ Total current liabilities 19,533,330 20,137,323 NOTES PAYABLE 12,347,233 13,870,064 ACCRUED SELF-INSURED CLAIMS 6,859,706 6,598,372 DEFERRED TAX LIABILITIES 203,970 ------------ ------------ Total liabilities 38,944,239 40,605,759 ------------ ------------ COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock, par value $.33 1/3 per share: 50,000,000 shares authorized; 8,550,706 and 8,543,990 shares issued and outstanding, respectively 2,850,236 2,847,997 Additional paid-in capital 24,314,078 24,293,309 Retained deficit (14,985,569) (15,954,207) ------------ ------------ Total stockholders' equity 12,178,745 11,187,099 ------------ ------------ TOTAL $ 51,122,984 $ 51,792,858 ============= ============ See notes to condensed consolidated financial statements--unaudited.
4 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
For the Three Months Ended ___________________________ October 31, October 31, 1995 1994 ____ ____ REVENUES: Contract revenues earned $ 37,365,990 $ 36,211,934 Other, net 239,593 210,665 ------------ ------------ Total 37,605,583 36,422,599 ------------ ------------ EXPENSES: Costs of earned revenues excluding depreciation 30,615,519 29,219,654 General and administrative 3,898,159 3,505,655 Depreciation and amortization 1,376,420 1,749,087 ------------ ------------ Total 35,890,098 34,474,396 ------------ ------------ INCOME BEFORE INCOME TAXES 1,715,485 1,948,203 ------------ ------------ PROVISION (BENEFIT) FOR INCOME TAXES: Current 1,163,888 1,008,976 Deferred (417,041) ------------ ------------ Total 746,847 1,008,976 ------------ ------------ NET INCOME $ 968,638 $ 939,227 ============ ============ NET INCOME PER COMMON SHARE $ 0.11 $ 0.11 ====== ====== See notes to condensed consolidated financial statements--unaudited.
5 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
For the Three Months Ended ___________________________ October 31, October 31, 1995 1994 ____ ____ Increase (Decrease) in Cash and equivalents from: OPERATING ACTIVITIES: Net income $ 968,638 $ 939,227 Adjustments to reconcile net cash provided by operating activities: Depreciation and amortization 1,376,420 1,749,087 Gain on disposal of assets (144,033) (40,616) Deferred income taxes (417,041) Changes in assets and liabilities: Accounts receivable, net 3,751,344 (1,615,880) Unbilled revenues, net (1,466,994) (862,803) Other current assets 155,560 (4,015) Other assets (6,276) 68,745 Accounts payable (1,794,074) 1,165,415 Accrued self-insured claims and other liabilities 895,898 (3,078) Accrued income taxes 783,261 1,008,976 ------------ ------------ Net cash inflow from operating activities 4,102,703 2,405,058 ------------ ------------ INVESTING ACTIVITIES: Capital expenditures (943,240) (1,783,750) Proceeds from sales of assets 379,235 303,224 ------------ ------------ Net cash outflow from investing activities (564,005) (1,480,526) ------------ ------------ FINANCING ACTIVITIES: Borrowing on bank lines-of-credit 500,000 Principal payments on notes payable and bank lines-of-credit (1,649,581) (1,232,236) Exercise of stock options 23,008 ------------ ------------ Net cash outflow from financing activities (1,626,573) (732,236) ------------ ------------ NET CASH INFLOW FROM ALL ACTIVITIES 1,912,125 192,296 CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 4,306,675 2,625,783 ------------ ------------ CASH AND EQUIVALENTS AT END OF PERIOD $ 6,218,800 $ 2,818,079 ============ ============ See notes to condensed consolidated financial statements--unaudited.
6 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited)
For the Three Months Ended ___________________________ October 31, October 31, 1995 1994 ____ ____ SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND NON-CASH INVESTING AND FINANCING ACTIVITIES: Cash paid during the period for: Interest $ 445,161 $ 475,424 Income taxes 392,005 115,351 See notes to condensed consolidated financial statements--unaudited.
7 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--Unaudited 1. The accompanying condensed consolidated balance sheets of Dycom Industries, Inc. ("Dycom" or the "Company") as of October 31, 1995 and July 31, 1995, the related condensed consolidated statements of operations for the three months ended October 31, 1995 and 1994 and the condensed consolidated statements of cash flows for the three months ended October 31, 1995 and 1994 reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of such statements. The results of operations for the three months ended October 31, 1995 are not necessarily indicative of the results which may be expected for the entire year. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION-- The condensed consolidated financial statements include Dycom Industries, Inc. and its subsidiaries, all of which are wholly-owned. The Company's operations consist primarily of telecommunication and utility services contracting. All material intercompany accounts and transactions have been eliminated. REVENUE-- Income on long-term contracts is recognized on the percentage-of-completion method based primarily on the ratio of contract costs incurred to date to total estimated contract costs. As some of these contracts extend over one or more years, revisions in cost and profit estimates during the course of the work are reflected in the accounting period in which the facts which require the revision become known. At the time a loss on a contract becomes known, the entire amount of the estimated ultimate loss is accrued. Income on short-term unit contracts is recognized as the related work is completed. Work-in-process on unit contracts is based on management's estimate of work performed but not billed. "Costs and estimated earnings in excess of billings" represent the excess of contract revenues recognized under the percentage-of-completion method of accounting for long-term contracts and work-in-process on unit contracts over billings to date. For those contracts in which billings exceed contract revenue recognized to date, such excesses are included in the caption "Billings in excess of costs and estimated earnings". CASH AND EQUIVALENTS-- Cash and equivalents include cash balances in excess of the daily requirements which are invested in overnight repurchase agreements, certificates of deposits, and various other financial instruments having a maturity of three months or less. For purposes of the condensed consolidated statements of cash flows, the Company considers these amounts to be cash equivalents. PROPERTY AND EQUIPMENT-- Property and equipment are stated at cost, reduced in certain cases by valuation reserves. Depreciation and amortization are computed over the estimated useful life of the assets utilizing the straight-line method. The estimated useful lives of the assets are: buildings--20-31 years; leasehold improvements--the term of the respective lease or the estimated useful life of the improvement, whichever is shorter; vehicles--3-7 years; equipment and machinery--3-10 years; and furniture and fixtures--3-10 years. Maintenance and repairs are expensed as incurred; expenditures that enhance the value of the property or extend their useful lives are capitalized. When assets are sold or retired, the cost and the accumulated depreciation are removed from the accounts and the resulting gain or loss is included in income. 8 INTANGIBLE ASSETS-- The excess of the purchase price over the fair market value of the tangible net assets of acquired businesses (goodwill) is amortized on the straight-line method over 40 years. The appropriateness of the carrying value of intangible assets is continually reviewed and adjusted where appropriate. The ongoing assessment of intangible assets for impairment is based on the recoverability of such amounts through future operations. Intangible assets are net of accumulated amortization of $879,955 at October 31, 1995 and $841,182 at July 31, 1995. Amortization expense for the three month periods ended October 31, 1995 and 1994 was $38,773. SELF-INSURED CLAIMS LIABILITY-- The Company is primarily self-insured, up to certain limits, for automobile and general liability, workers' compensation, and employee group health claims. A liability for unpaid claims and associated expenses, including incurred but not reported losses, is actuarially determined and reflected in the condensed consolidated financial statements as an accrued liability. The self-insured claims liability includes incurred but not reported losses of $5,117,000 and $5,072,000 at October 31, 1995 and July 31, 1995, respectively. The determination of such claims and expenses and the appropriateness of the related liability is continually reviewed and updated. INCOME TAXES-- The Company and its subsidiaries file a consolidated federal income tax return. Deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates to differences between the financial statement carrying value and the tax basis of the Company's existing assets and liabilities. The effect on deferred taxes of a change in tax law or rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. Management has evaluated the available evidence about future taxable income and other possible sources of realization of deferred tax assets. The valuation allowance recorded in the financial statements reduces deferred tax assets to an amount that represents management's best estimate of the amount of such deferred tax assets that more likely than not will be realized. Accordingly, at October 31, 1995 and July 31, 1995, deferred tax assets are net of a valuation allowance of $1,786,518. PER SHARE DATA-- Per common share amounts are computed on the basis of weighted average shares of common stock outstanding, plus common stock equivalent shares arising from the effect of dilutive stock options, using the treasury stock method. In the three month periods ended October 31, 1995 and 1994, stock options did not impact the per share amounts as they were either insignificant or antidilutive. The weighted average number of shares was 8,546,782 and 8,528,990 for the three month periods ended October 31, 1995 and 1994, respectively. 9 3. ACCOUNTS RECEIVABLE Accounts receivable, net consist of the following:
October 31, July 31, 1995 1995 ____ ____ Contract billings $ 11,767,894 $ 15,222,897 Retainage 1,341,985 1,201,454 Other receivables 409,608 773,704 ------------ ------------ Total 13,519,487 17,198,055 Less allowance for doubtful accounts 940,354 867,578 ------------ ------------ Accounts receivable, net $ 12,579,133 $ 16,330,477 ============ ============
4. COSTS AND ESTIMATED EARNINGS ON CONTRACTS IN PROGRESS The accompanying condensed consolidated balance sheets include costs and estimated earnings on contracts in progress, net of progress billings as follows:
October 31, July 31, 1995 1995 ____ ____ Costs incurred on contracts in progress $ 23,056,340 $ 20,862,665 Estimated earnings thereon 204,785 609,280 ------------ ------------ 23,261,125 21,471,945 Less billings to date 16,671,657 16,349,471 ------------ ------------ $ 6,589,468 $ 5,122,474 ============ ============ Included in the accompanying condensed consolidated balance sheets under the captions: Costs and estimated earnings in excess of billings $ 6,589,468 $ 5,223,425 Billings in excess of costs and estimated earnings (100,951) ------------ ------------ $ 6,589,468 $ 5,122,474 ============ ============
10 5. PROPERTY AND EQUIPMENT The accompanying condensed consolidated balance sheets include the following property and equipment:
October 31, July 31, 1995 1995 ____ ____ Land $ 1,723,527 $ 1,723,527 Buildings 2,263,332 2,223,627 Leasehold improvements 759,527 750,955 Vehicles 21,724,897 21,381,527 Equipment and machinery 19,168,792 19,711,023 Furniture and fixtures 2,947,544 2,930,467 ------------ ------------ Total 48,587,619 48,721,126 Less accumulated depreciation and amortization 30,414,709 29,918,563 ------------ ------------ Property and equipment, net $ 18,172,910 $ 18,802,563 ============ ============
Certain subsidiaries of the Company entered into lease arrangements accounted for as capitalized leases. The carrying value of capital leases at October 31, 1995 and July 31, 1995 was $312,556 and $326,704, respectively, net of accumulated depreciation of $47,686 and $33,538, respectively. Capital leases are included as a component of equipment and machinery. 6. NOTES PAYABLE Notes and loans payable are summarized by type of borrowings as follows:
October 31, July 31, 1995 1995 ____ ____ Bank Credit Agreement: Revolving credit facility $ 9,000,000 $ 9,000,000 Term-loan 6,565,369 7,948,469 Equipment acquisition term-loans 1,316,667 1,566,667 Capital lease obligations 293,527 310,008 ------------ ------------ Total 17,175,563 18,825,144 Less current portion 4,828,330 4,955,080 ------------ ------------ Notes payable--non-current $ 12,347,233 $ 13,870,064 ============ ============
At October 31, 1995, the Company had a bank credit agreement consisting of a $6.6 million term-loan, a $9.0 million revolving credit facility, a $9.8 million standby letter of credit facility, and a $3.0 million capital equipment acquisition facility of which $1.7 million was available and unused. The bank credit agreement contains restrictions which, among other things, requires maintenance of certain financial ratios and covenants, restricts encumbrances of assets and creation of indebtedness, and limits the payment of cash dividends. The bank credit agreement restricts the payment of cash dividends until the term-loan is reduced to $5.0 million; thereafter, cash dividends are limited to 33 1/3 percent of earnings available for 11 distribution as dividends. Substantially all of the Company's assets are pledged as collateral under the terms of the agreement. At October 31, 1995, the Company was in compliance with all financial covenants and conditions. The interest on the term-loan and the revolving credit facility is at the bank's prime rate plus one-half percent (9.25% at October 31, 1995 and July 31, 1995). The interest on the equipment acquisition term-loans is at the bank's prime rate plus three-quarters of one percent (9.50% at October 31, 1995 and July 31, 1995). Interest costs incurred on notes payable, all of which were expensed, for the three month periods ended October 31, 1995 and 1994 were $429,008 and $462,777, respectively. Such amounts are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. Beginning September 1995, the term-loan quarterly principal payments increased to $1.0 million from $750,000. The outstanding balance of the equipment acquisition term-loans is payable quarterly through January 1998. The revolving credit facility is used to finance working capital and is payable in March 1998. At October 31, 1995, the Company had $8.5 million outstanding standby letters of credit issued as security to the Company's insurance administrators as part of its self-insurance program. The capital equipment acquisition facility and standby letter of credit facility expired November 30, 1995. The Company has petitioned the bank for renewal of these facilities and anticipates that the renewals will be granted. In addition to the borrowings under the bank credit agreement, certain subsidiaries have outstanding obligations under capital leases. The obligations are payable in monthly installments expiring at various dates through July 1998. 7. COMMITMENTS AND CONTINGENCIES In the normal course of business, certain subsidiaries of the Company have pending and unasserted claims. Although the ultimate resolution and liability of these claims cannot be determined, management believes the final disposition of these claims will not have a material adverse impact on the Company's consolidated financial condition or results of operations. 12 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of the Company's consolidated financial condition and results of operations. The discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto. Results of Operations Contract revenues for the quarter ended October 31, 1995 increased 3.2% to $37.4 million, as compared to $36.2 million for the same quarter last year. The increase in contract revenues is primarily attributable to the increased volume experienced in telecommunication services group. The telecommunication services group contract revenue increased 8.3% to $31.3 million for the quarter. The utility line locating services and electrical services groups contract revenue reflect a slight decrease as compared to the corresponding period last year. The contract revenue mix between telecommunication services, utility line locating services and electrical services over recent years has reflected a steady increase in contract revenues from the telecommunication services group offset by a decline in the electrical services group. The contract revenue mix between telecommunication services, utility line locating services and electrical services for the quarter ended October 31, 1995 was 84%, 9%, and 7%, respectively, and 80%, 10% and 10%, respectively, for the quarter ended October 31, 1994. Multi-year comprehensive services contracts continue to be a significant source of contract revenue. For the three month periods ended October 31, 1995 and 1994, multi-year comprehensive services contracts included in the telecommunications services group, represented 65% and 69% of total contract revenues, respectively. In addition, the telecommunication services group experienced increased bid activity during the quarter ended October 31, 1995 in comparison to the same period last year. The Company's backlog of uncompleted work at October 31, 1995 was $188 million as compared to $184 million at October 31, 1994. Contracts awarded during the three month period ended October 31, 1995 included a significant three year telecommunications comprehensive services contract valued at $26 million and the extension of several telecommunication comprehensive services contracts valued at $21 million. The Company's costs and operating expenses may be affected by a number of factors including contract volumes, character of services rendered, work locations, competition, and changes in productivity. Costs of earned revenues, excluding depreciation, were 82% and 81% of contract revenues for the quarters ended October 31, 1995 and 1994, respectively. The Company's prime costs of direct labor, materials, subcontractors, and equipment costs remained relatively stable for the quarter ended October 31, 1995 compared to the corresponding period last year. In addition, the Company's insurance costs increased $0.5 million as a result of certain claims which occurred during the quarter ended October 31, 1995. General and administrative expenses increased $0.4 million for the quarter ended October 31, 1995 to $3.9 million as compared to $3.5 million for the same quarter last year. This increase is primarily attributable to payroll and payroll taxes which increased by $0.3 million, general insurance costs which increased by $0.1 million and other general expenses which increased by $0.2 million. The increases in general and administrative expenses were partially offset by a $0.1 million decreases in the provision for doubtful accounts and a $0.1 million decrease in professional fees. 13 The variance from the statutory income tax rates resulted from state income taxes, the amortization of intangible assets with no tax benefit and other non-deductible expenses for tax purposes. Liquidity and Capital Resources The Company's sources of funds are generated from operations, proceeds from the sale of idle real property and equipment and its available borrowing capabilities under the current bank credit agreement. Cash flow from operating activities increased $1.7 million to $4.1 million in comparison to the same period last year. Improved cash collections contributed to the increase in cash flow. The Company's sources of funds provided for capital expenditures of $0.9 million during the three month period ended October 31, 1995. These capital expenditures resulted from the normal replacement of equipment. Aside from these capital expenditures, the Company obtained approximately $0.6 million of equipment under various noncancelable operating leases. At October 31, 1995, the Company had outstanding borrowings under a term-loan of $6.6 million, equipment acquisition term-loans aggregating $1.3 million, and a revolving credit facility of $9.0 million. Interest on the term-loan and revolving credit facility is at the bank's prime rate plus one-half percent (9.25% at October 31, 1995). The interest on the equipment acquisition term-loans is at the bank's prime rate plus three-quarters of one percent (9.50% at October 31, 1995). During the three month period ended October 31, 1995, the Company reduced its outstanding debt balance by $1.6 million, which included a $0.4 million prepayment of the term-loan principal utilizing the proceeds received from the sale of equipment. Substantially all of the Company's assets are pledged as collateral in support of these facilities. In addition, the Company has available a $9.8 million standby letter of credit facility and a $3.0 million capital equipment acquisition facility of which $1.7 million is available and unused at October 31, 1995. The standby letter of credit facility is issued as security to the Company's insurance administrators as part of its self-insurance program. The Company had outstanding standby letters of credit of $8.5 million against the standby letter of credit facility at October 31, 1995. Both facilities expired November 30, 1995. The Company has petitioned the bank for renewal of these facilities and anticipates that the renewals will be granted. The bank credit agreement contains provisions regarding minimum working capital, tangible net worth, debt-to-equity ratios and certain other financial covenants. At October 31, 1995, the Company was in compliance with all financial covenants and conditions. Cash flow generated from operations will continue to be the Company's primary source of funds as available borrowing capabilities under the bank credit agreement are limited. The Company foresees these available sources of funds along with existing cash balances to be sufficient to meet its financial obligations, including the scheduled debt payments under the bank credit agreement and operating lease commitments, and to support the Company's normal replacement of equipment at its current level of business. The Company's future operating results and cash flows may be affected by a number of factors. These factors include the Company's success in bidding on future contracts, and the Company's ability to effectively manage controllable costs. 14 The board will determine future dividend policies based on financial condition, profitability, cash flow, capital requirements, and business outlook, as well as other factors relevant at the time. No cash dividends have been paid during the three month period ended October 31, 1995. In addition, the Company's bank credit agreement prohibits, without prior approval of the bank, the declaration or payment of any cash dividends until the term-loan is reduced to $5.0 million; thereafter, cash dividends are limited to 33 1/3 percent of earnings available for distribution as dividends. 15 PART II. OTHER INFORMATION __________________________ Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibits furnished pursuant to the requirements of Form 10-Q: See Exhibit Index on Page 17 (b) Reports On Form 8-K No reports on Form 8-K were filed on behalf of the Registrant during the quarter ended October 31, 1995. 16 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DYCOM INDUSTRIES, INC. Registrant Date: December 12, 1995 /s/ Thomas R. Pledger _________________ ____________________________ Thomas R. Pledger Chairman and Chief Executive Officer Date: December 12, 1995 /s/ Ronald L. Roseman _________________ ____________________________ Ronald L. Roseman President and Chief Operating Officer Date: December 12, 1995 /s/ Douglas J. Betlach _________________ ____________________________ Douglas J. Betlach Vice President and Chief Financial Officer
17 EXHIBIT INDEX
Number Description ______ ___________ (27) Financial Data Schedule
EX-27 2 EXHIBIT 27
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE DYCOM INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET AT OCTOBER 31, 1995 AND THE CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED OCTOBER 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000067215 DYCOM INDUSTRIES, INC. 1 U.S. DOLLARS 3-MOS JUL-31-1996 OCT-31-1995 1 6,218,800 0 13,109,879 940,354 6,589,468 27,634,809 48,587,619 30,414,709 51,122,984 19,533,330 17,175,563 2,850,236 0 0 9,328,509 51,122,984 0 37,365,990 0 30,615,519 1,376,420 0 429,008 1,715,485 746,847 968,638 0 0 0 968,638 0.11 0.11
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