EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1 exhibit99-1.htm
Exhibit 99.1
 
 
 
N E W S    R E L E A S E
 
FOR IMMEDIATE RELEASE
Contact:
Steven E. Nielsen, President and CEO
 
H. Andrew DeFerrari, Senior Vice President and CFO
 
(561) 627-7171


Palm Beach Gardens, Florida May 25, 2010


DYCOM ANNOUNCES FISCAL 2010 THIRD QUARTER RESULTS
 
 
Palm Beach Gardens, Florida, May 25, 2010--Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 24, 2010.  The Company reported:

·  
contract revenues of $231.6 million for the quarter ended April 24, 2010, compared to $257.7 million for the quarter ended April 25, 2009, a decrease of 10.1%;

·  
income from continuing operations on a GAAP basis of $1.6 million, or $0.04 per common share diluted, for the quarter ended April 24, 2010, compared to $7.6 million, or $0.19 per common share diluted, for the quarter ended April 25, 2009;  and

·  
income from continuing operations on a Non-GAAP basis of $0.6 million, or $0.02 per common share diluted, for the quarter ended April 24, 2010, compared to $5.0 million, or $0.13 per common share diluted, for the quarter ended April 25, 2009.

Non-GAAP income from continuing operations for the quarter ended April 24, 2010 excludes a $1.0 million reduction to income tax expense related to the reversal of certain income tax liabilities no longer required. For the quarter ended April 25, 2009, Non-GAAP income from continuing operations excludes a pre-tax gain of $1.7 million related to the buyback of $10.0 million aggregate principal amount of the Company’s senior subordinated notes, and a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax liabilities no longer required.  See the accompanying table which presents a reconciliation of Non-GAAP income from continuing operations to GAAP income from continuing operations.


The Company also reported:

·  
contract revenues of $707.1 million for the nine months ended April 24, 2010, compared to $837.2  million for the nine months ended April 25, 2009, a decrease of 15.5%;

·  
income from continuing operations on a GAAP basis of $1.2 million, or $0.03 per common share diluted, for the nine months ended April 24, 2010, compared to a loss of $59.8 million, or $1.52 per common share diluted, for the nine months ended April 25, 2009; and

·  
income from continuing operations on a Non-GAAP basis of $2.1 million, or $0.05 per common share diluted, for the nine months ended April 24, 2010, compared to Non-GAAP income from continuing operations of $14.2 million, or $0.36 per common share diluted, for the nine months ended April 25, 2009.

Non-GAAP income from continuing operations for the nine months ended April 24, 2010 excludes a $1.6 million pre-tax charge in cost of earned revenues for the settlement of a wage and hour class action claim, a $1.1 million non-cash charge to income tax expense for a valuation allowance against a deferred tax asset recorded during the first quarter of fiscal 2010, and a $1.0 million reduction to income tax expense related to the reversal of certain income tax liabilities no longer required.  For the nine months ended April 25, 2009, Non-GAAP income from continuing operations excludes a pre-tax goodwill impairment charge of $94.4 million, a pre-tax gain of approximately $3.0 million related to the buyback of $14.65 million aggregate principal amount of the Company’s senior subordinated notes, the write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company’s credit facility during the prior year, and a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax related liabilities no longer required.  See the accompanying table which presents a reconciliation of Non-GAAP income from continuing operations to GAAP income from continuing operations.

A Tele-Conference call to review the Company’s results will be hosted at 9 a.m. (ET), Wednesday, May 26, 2010; Call 800-230-1074 (United States) or 612-288-0329 (International) and request “Dycom Results” conference call.  A live webcast of the conference call, along with a slide presentation, will be available at http://www.dycomind.com under the heading “Events.”  If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the slide presentation will be available at http://www.dycomind.com until Friday, June 25, 2010.

Dycom is a leading provider of specialty contracting services throughout the United States.  These services include engineering, construction, maintenance and installation services to telecommunications providers, underground facility locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric and gas utilities and others.

Fiscal 2010 third quarter and nine-month results are preliminary and are unaudited.  This press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act.  These statements are based on management’s current expectations, estimates and projections.  Forward-looking statements are subject to risks and uncertainties that may cause actual results in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release.  Such risks and uncertainties include:  business and economic conditions in the telecommunications industry affecting our customers, the adequacy of our insurance and other reserves and allowances for doubtful accounts, whether the carrying value of our assets may be impaired, the impact of any future acquisitions, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks detailed in our filings with the Securities and Exchange Commission.  The Company does not undertake to update forward-looking statements.

--- Tables Follows ---

 
 
 


           
             
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
            
CONDENSED CONSOLIDATED BALANCE SHEETS
            
April 24, 2010 and July 25, 2009
            
Unaudited
            
             
   
April 24,
    
July 25,
  
   
2010
    
2009
  
   
($ in 000's)
  
ASSETS
            
Current Assets:
            
Cash and equivalents
   $ 116,155     $ 104,707  
Accounts receivable, net
     96,773       116,968  
Costs and estimated earnings in excess of billings
     59,867       67,111  
Deferred tax assets, net
     14,033       15,779  
Income taxes receivable
     8,213       7,016  
Inventories
     13,091       8,303  
Other current assets
     11,212       7,323  
Total current assets
     319,344       327,207  
                 
Property and equipment, net
     137,740       142,132  
Goodwill
     157,851       157,851  
Intangible assets, net
     51,309       56,056  
Other
     10,339       10,211  
Total
   $ 676,583     $ 693,457  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 28,003     $ 28,977  
Current portion of debt
     150       926  
Billings in excess of costs and estimated earnings
     582       151  
Accrued insurance claims
     26,919       27,386  
Other accrued liabilities
     42,095       52,590  
Total current liabilities
     97,749       110,030  
 
                
Long-term debt
     135,350       135,377  
Accrued insurance claims
     26,957       29,759  
Deferred tax liabilities, net non-current
     23,786       22,910  
Other liabilities
     3,650       4,758  
                 
Stockholders' Equity
     389,091       390,623  
 
                
Total
   $ 676,583     $ 693,457  
                 


 
 
 


                       
                         
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
                        
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        
Unaudited
                        
                         
   
Three Months
    
Three Months
    
Nine Months
    
Nine Months
  
   
Ended
    
Ended
    
Ended
    
Ended
  
   
April 24,
    
April 25,
    
April 24,
    
April 25,
  
   
2010
    
2009
    
2010
    
2009
  
         
(In 000's, except per share amounts)
        
                         
Contract revenues
   $ 231,636     $ 257,719     $ 707,082     $ 837,209  
                                 
Cost of earned revenues, excluding depreciation and amortization
     191,333       206,733       582,241       681,239  
General and administrative expenses (1)
     24,297       24,276       71,698       73,350  
Depreciation and amortization
     15,852       16,163       46,558       49,592  
Goodwill impairment charge
     -       -       -       94,429  
Total
     231,482       247,172       700,497       898,610  
                                 
Interest income
     27       60       85       234  
Interest expense
     (3,386 )     (3,162 )     (10,470 )     (11,313 )
Other income, net
     4,451       3,566       6,459       5,799  
                                 
Income (loss) from continuing operations before income taxes
     1,246       11,011       2,659       (66,681 )
                                 
Provision (benefit) for income taxes
     (402 )     3,442       1,453       (6,882 )
                                 
Income (loss) from continuing operations
     1,648       7,569       1,206       (59,799 )
                                 
Income (loss) from discontinued operations, net of tax
     -       28       -       (9 )
                                 
Net income (loss)
   $ 1,648     $ 7,597     $ 1,206     $ (59,808 )
                                 
Income (loss) per common share - Basic:
                                
                                 
Income (loss) from continuing operations
   $ 0.04     $ 0.19     $ 0.03     $ (1.52 )
Income (loss) from discontinued operations
     -       -       -       -  
Net income (loss)
   $ 0.04     $ 0.19     $ 0.03     $ (1.52 )
                                 
Income (loss) per common share - Diluted:
                                
                                 
Income (loss) from continuing operations
   $ 0.04     $ 0.19     $ 0.03     $ (1.52 )
Income (loss) from discontinued operations
     -       -       -       -  
Net income (loss)
   $ 0.04     $ 0.19     $ 0.03     $ (1.52 )
                                 
                                 
Shares used in computing income (loss) per common share:
                                
   Basic
     39,021,043       39,330,308       39,028,637       39,343,834  
                                 
   Diluted
     39,054,443       39,346,102       39,102,612       39,343,834  
                                 
                                 
(1) Includes stock-based compensation expense of $0.8 million and $2.5 million for the three and nine months ended April 24, 2010, respectively, and $0.9 million and $2.8 million for the three and nine months ended April 25, 2009, respectively.
  


 
 
 


                       
                         
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
                        
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
                        
Unaudited
                        
                         
   
Three Months
    
Three Months
    
Nine Months
    
Nine Months
  
   
Ended
    
Ended
    
Ended
    
Ended
  
   
April 24,
    
April 25,
    
April 24,
    
April 25,
  
   
2010
    
2009
    
2010
    
2009
  
         
(In 000's, except per share amounts)
        
                         
Pre-Tax Reconciling Items increasing (decreasing) income (loss) from continuing operations:
                        
                         
Charge for wage and hour class action settlement
   $ -     $ -     $ (1,550 )   $ -  
Goodwill impairment charge
     -       -       -       (94,429 )
Gain on debt extinguishment, net
     -       1,727       -       3,027  
Write-off of deferred financing costs
     -       -       -       (551 )
Reversal of interest expense on certain income tax liabilities
     -       268       -       268  
Total Pre-Tax Reconciling Items
   $ -     $ 1,995     $ (1,550 )   $ (91,685 )
Tax-effect of Pre-Tax Reconciling Items
     -       (793 )     714       16,308  
Other Reconciling Items increasing (decreasing) income (loss) from continuing operations:
                                
Valuation allowance on deferred tax asset
     -       -       (1,090 )     -  
Reversal of certain income tax liabilities
     999       1,358       999       1,358  
Total Reconciling Items, net of tax
   $ 999     $ 2,560     $ (927 )   $ (74,019 )
                                 
                                 
GAAP income (loss) from continuing operations
   $ 1,648     $ 7,569     $ 1,206     $ (59,799 )
Adjustment for Reconciling Items above, net of tax
     (999 )     (2,560 )     927       74,019  
Non-GAAP income from continuing operations
   $ 649     $ 5,009     $ 2,133     $ 14,220  
                                 
Earnings (loss) per common share from continuing operations:
                                
                                 
Basic earnings (loss) per share from continuing operations - GAAP
   $ 0.04     $ 0.19     $ 0.03     $ (1.52 )
Adjustment for Reconciling Items above, net of tax
     (0.03 )     (0.07 )     0.02       1.88  
Basic earnings per common share from continuing operations - Non-GAAP
   $ 0.02     $ 0.13     $ 0.05     $ 0.36  
                                 
Diluted earnings (loss) per share from continuing operations  - GAAP
   $ 0.04     $ 0.19     $ 0.03     $ (1.52 )
Adjustment for Reconciling Items above, net of tax
     (0.03 )     (0.07 )     0.02       1.88  
Diluted earnings per common share from continuing operations- Non-GAAP
   $ 0.02     $ 0.13     $ 0.05     $ 0.36  
                                 
                                 
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling Items above:
                  
                                 
   Basic
     39,021,043       39,330,308       39,028,637       39,343,834  
                                 
   Diluted
     39,054,443       39,346,102       39,102,612       39,343,834  
                                 
Shares used in computing Non-GAAP earnings per common share from continuing operations:
                                
                                 
   Basic
     39,021,043       39,330,308       39,028,637       39,343,834  
                                 
   Diluted
     39,054,443       39,346,102       39,102,612       39,393,923  
                                 
                                 
Earnings per share amounts may not add due to rounding.