EX-99.1 2 exhibit99-1.htm EXHIBIT99-1.HTM 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   March 1, 2011
 

DYCOM ANNOUNCES FISCAL 2011 SECOND QUARTER RESULTS

Palm Beach Gardens, Florida, March 1, 2011 – Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 29, 2011.  The Company reported:

·  
contract revenues of $218.2 million for the quarter ended January 29, 2011, as compared to $216.3 million for the quarter ended January 23, 2010, an increase of 0.9%; and

·  
net loss on a GAAP basis of $5.1 million, or $0.14 loss per common share diluted, for the quarter ended January 29, 2011, compared to a net loss of $4.0 million, or $0.10 loss per common share diluted, for the quarter ended January 23, 2010. On a Non-GAAP basis, the net loss for the quarter ended January 29, 2011 was $1.2 million, or $0.03 per common share diluted.  This Non-GAAP net loss excludes a $5.7 million pre-tax loss on debt extinguishment associated with the Company’s tender offer for its senior subordinated notes due 2015, which is described more fully below, and $0.2 million in pre-tax acquisition related costs.

The Company also reported:

·  
contract revenues of $479.8 million for the six months ended January 29, 2011, as compared to $475.4 million for the six months ended January 23, 2010, an increase of 0.9%; and

·  
net income on a GAAP basis of $1.7 million, or $0.05 per common share diluted, for the six months ended January 29, 2011, compared to a net loss of $0.4 million, or $0.01 loss per common share diluted, for the six months ended January 23, 2010.  On a Non-GAAP basis, net income for the six months ended January 29, 2011 was $5.5 million, or $0.15 per common share diluted, as compared to net income of $1.7 million, or $0.04 per common share diluted, for the six months ended January 23, 2010.  Non-GAAP net income for the six months ended January 29, 2011 excludes a $5.7 million pre-tax loss on debt extinguishment associated with the Company’s tender offer for its senior subordinated notes due 2015, which is described more fully below, and $0.2 million in pre-tax acquisition related costs.  Non-GAAP net income for the six months ended January 23, 2010 excludes a $2.0 million pre-tax charge in cost of earned revenues for the settlement of a wage and hour class action claim and 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.

See the accompanying tables which present a reconciliation of Non-GAAP net income (loss) to GAAP net income (loss).

During the quarter ended January 29, 2011, Dycom Investments, Inc., a subsidiary of the Company, issued $187.5 million aggregate principal amount of 7.125% senior subordinated notes due 2021 in a private placement.  A portion of the net proceeds was used (1) to fund the Company’s purchase in January 2011 of $86.96 million aggregate principal amount of its outstanding 8.125% senior subordinated notes due 2015 (the “2015 Notes”) pursuant to a tender offer, and (2) to fund the Company’s redemption in February 2011 of the remaining $48.39 million outstanding aggregate principal amount of 2015 Notes at a price equal to 104.063% of the principal amount. The $48.39 million in aggregate principal amount of the 2015 Notes redeemed in February 2011 is included in current portion of debt in the condensed consolidated balance sheet as of January 29, 2011.

Steven Nielsen, President and Chief Executive Officer of the Company stated, “Our second quarter revenues and margins were adversely impacted by difficult weather conditions across the country.  Yet despite these results, we remain confident that business is improving.  During the quarter we grew backlog, lowered our cost of capital through the refinancing of our senior subordinated notes and completed two acquisitions which add to our growth potential.”
 
A Tele-Conference call and slide presentation to review the Company’s results will be hosted at 9 a.m. (ET), Wednesday, March 2, 2011; call 800-700-7414 (United States) or 651-224-7472 (International) ten minutes before the conference call begins and ask for the “Dycom Results” conference call. A live webcast of the conference call, along with the slide presentation, will be available at http://www.dycomind.com under the heading “Events.”  The slide presentation will be available at approximately 8 a.m. (ET) on Wednesday, March 2, 2011.  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, April 1, 2011.

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 2011 second quarter 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 future impact of any acquisitions, the anticipated outcome of other contingent events, including litigation, liquidity needs, the availability of financing and the other risks detailed in our filings with the Securities and Exchange Commission.  The Company does not undertake to update forward-looking statements.

---Tables Follow---

 
 
 

NYSE: "DY"
        
         
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
        
CONDENSED CONSOLIDATED BALANCE SHEETS
        
January 29, 2011 and July 31, 2010
        
Unaudited
        
         
   
January 29,
 
July 31,
   
2011
  
2010
   
(Dollars in thousands)
ASSETS
        
Current Assets:
        
Cash and equivalents
$
   161,003
$
   103,320
Accounts receivable, net
  
95,455
  
110,117
Costs and estimated earnings in excess of billings
  
     55,843
  
     66,559
Deferred tax assets, net
  
     14,843
  
     14,944
Income taxes receivable
  
       5,557
  
       3,626
Inventories
  
     16,106
  
     16,058
Other current assets
  
     13,796
  
       8,137
Total current assets
  
   362,603
  
   322,761
   
 
 
 
Property and equipment, net
  
   130,000
  
   136,028
Goodwill
  
   173,329
  
   157,851
Intangible assets, net
  
     61,234
  
     49,625
Other
  
     14,520
  
     13,291
Total
$
   741,686
$
   679,556
         
LIABILITIES AND STOCKHOLDERS' EQUITY
        
Current Liabilities:
        
Accounts payable
$
     20,562
 $
     25,881
Current portion of debt
  
     48,859
  
            47
Billings in excess of costs and estimated earnings
  
       1,819
  
          376
Accrued insurance claims
  
     26,530
 
     28,086
Other accrued liabilities
  
     39,222
 
     42,813
Total current liabilities
  
   136,992
  
     97,203
 
  
 
  
 
Long-term debt
  
   187,666
  
   135,350
Accrued insurance claims
  
     23,174
  
     24,844
Deferred tax liabilities, net non-current
  
     26,019
 
     24,159
Other liabilities
  
       3,711
  
       3,445
         
Stockholders' Equity
  
   364,124
 
   394,555
 
    
 
  
Total
$
   741,686
 $
   679,556
     
 
  

 
 
 

NYSE: "DY"
                
                 
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
                
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                
Unaudited
                
                 
   
Three Months
  
Three Months
  
Six Months
  
Six Months
   
Ended
  
Ended
  
Ended
  
Ended
   
January 29,
  
January 23,
  
January 29,
  
January 23,
   
2011
  
2010
  
2011
  
2010
   
(Dollars in thousands, except per share amounts)
                 
Contract revenues
$
218,203
$
216,331
$
479,787
$
475,447
                 
Cost of earned revenues, excluding depreciation and amortization
  
181,621
  
180,936
  
390,943
  
390,908
General and administrative expenses (1)
  
21,835
  
23,898
  
44,660
  
47,401
Depreciation and amortization
  
15,787
  
15,516
  
31,403
  
30,707
Total
 
219,243
  
220,350
  
467,006
  
469,016
                 
Interest income
  
34
  
22
  
63
  
58
Interest expense
  
(3,773)
  
(3,541)
  
(7,481)
  
(7,084)
Loss on debt extinguishment
  
(5,738)
  
-
  
(5,738)
  
-
Other income, net
  
2,207
  
903
  
3,964
  
2,008
Income (loss) before income taxes
  
(8,310)
  
(6,635)
  
3,589
  
1,413
Provision (benefit) for income taxes
  
(3,216)
  
(2,670)
  
1,936
  
1,855
Net income (loss)
$
(5,094)
$
(3,965)
$
1,653
$
(442)
                 
Earnings (loss) per common share:
      
 
      
 
                 
Basic earnings (loss) per common share
$
(0.14)
$
(0.10)
$
0.05
$
(0.01)
                 
Diluted earnings (loss) per common share
$
(0.14)
$
(0.10)
$
0.05
$
(0.01)
                 
                 
Shares used in computing income (loss) per common share:
                
   Basic
  
35,221,017
  
39,069,364
  
36,343,068
  
39,029,822
                 
   Diluted
  
35,221,017
  
39,069,364
  
36,566,672
  
39,029,822
 
 
              
 
 
              
(1) Includes stock-based compensation expense of $1.0 million and $1.8 million for the three months and six months ended January 29, 2011, respectively, and $0.7 million and $1.7 million for the three and six months ended January 23, 2010, respectively.

 
 
 

NYSE: "DY"
                  
                     
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
                  
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
                  
Unaudited
                  
                     
     
Three Months
  
Three Months
    
Six Months
  
Six Months
     
Ended
  
Ended
    
Ended
  
Ended
     
January 29,
  
January 23,
    
January 29,
  
January 23,
     
2011
  
2010
    
2011
  
2010
     
(Dollars in thousands, except per share amounts)
                     
Pre-Tax Reconciling Items decreasing net income (loss)
                  
 
Loss on debt extinguishment
$
          (5,738)
$
-
  
$
          (5,738)
$
-
 
Acquisition related costs
  
             (223)
  
-
    
             (223)
  
-
 
Charge for wage and hour class action settlement
  
-
  
-
    
-
  
(2,000)
 
Valuation allowance on deferred tax asset
  
-
  
-
    
-
  
(1,090)
Total Reconciling Items
$
          (5,961)
$
                 -
  
$
          (5,961)
$
          (3,090)
                     
                     
GAAP net income (loss)
$
          (5,094)
$
          (3,965)
  
$
1,653
$
(442)
Adjustment for Reconciling Items above, net of tax
  
            3,875
  
-
    
3,875
  
2,167
Non-GAAP net income (loss)
$
          (1,219)
$
          (3,965)
  
$
            5,528
$
            1,725
                     
Earnings (loss) per common share:
                  
                     
Basic earnings (loss) per common share  - GAAP
$
(0.14)
$
(0.10)
  
$
0.05
$
(0.01)
Adjustment for Reconciling Items above, net of tax
  
              0.11
  
 -
    
              0.11
  
              0.06
Basic earnings (loss) per common share - Non-GAAP
$
(0.03)
$
(0.10)
  
$
0.15
$
0.04
                     
Diluted earnings (loss) per common share - GAAP
$
(0.14)
$
(0.10)
  
$
0.05
$
(0.01)
Adjustment for Reconciling Items above, net of tax
  
              0.11
  
 -
    
              0.11
  
              0.06
Diluted earnings (loss) per common share - Non-GAAP
$
(0.03)
$
(0.10)
  
$
0.15
$
0.04
                     
Earnings (loss) per share amounts may not add due to rounding.
                  
                     
Shares used in computing GAAP earnings (loss) per common share and adjustment for Reconciling Items above:
        
                     
   Basic
  
35,221,017
  
39,069,364
    
36,343,068
  
39,029,822
                     
   Diluted
  
35,221,017
  
39,069,364
    
36,566,672
  
39,029,822
                     
Shares used in computing Non-GAAP earnings (loss) per common share:
                
                     
   Basic
  
35,221,017
  
39,069,364
    
36,343,068
  
39,029,822
                     
   Diluted
  
35,221,017
  
39,069,364
    
36,566,672
  
39,185,239