Supplemental Consolidating Financial Statements

3 Months Ended

Oct. 29, 2011

Condensed Consolidating Financial Statements [Abstract]

Supplemental Consolidating Financial Statements

18. Supplemental Consolidating Financial Statements

As of October 29, 2011, the outstanding aggregate principal amount of the Company’s 2021 Notes was $187.5 million. The 2021 Notes were issued by Dycom Investments, Inc. (the “Issuer”) in fiscal 2011 as further discussed in Note 10. The following condensed consolidating financial statements present, in separate columns, financial information for (i) Dycom Industries, Inc. (“Parent”) on a parent only basis, (ii) the Issuer, (iii) the guarantor subsidiaries for the 2021 Notes on a combined basis, (iv) other non-guarantor subsidiaries on a combined basis, (v) the eliminations and reclassifications necessary to arrive at the information for the Company on a consolidated basis, and (vi) the Company on a consolidated basis. The condensed consolidating financial statements are presented in accordance with the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Company’s share of subsidiaries’ cumulative results of operations, capital contributions, distributions and other equity changes. Intercompany charges (income) between the Parent and subsidiaries are recognized in the condensed consolidating financial statements during the period incurred and the settlement of intercompany balances is reflected in the condensed consolidating statement of cash flows based on the nature of the underlying transactions.

Each guarantor and non-guarantor subsidiary is wholly-owned, directly or indirectly, by the Issuer and the Parent. The Notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary and Parent. There are no contractual restrictions limiting transfers of cash from guarantor and non-guarantor subsidiaries to Issuer or Parent, within the meaning of Rule 3-10 of Regulation S-X.

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
OCTOBER 29, 2011
	Parent		Issuer		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
ASSETS
CURRENT ASSETS:
Cash and equivalents	$	-	$	-	$	51,262	$	50	$	-		$	51,312
Accounts receivable, net		-		-		137,254		3,238		-			140,492
Costs and estimated earnings in excess of billings		-		-		99,058		2,368		-			101,426
Inventories		-		-		25,660		56		-			25,716
Deferred tax assets, net		1,458		-		14,610		168		(265	)		15,971
Income taxes receivable		3,493		-		-		-		-			3,493
Other current assets		5,570		51		4,877		742		-			11,240
Total current assets		10,521		51		332,721		6,622		(265	)		349,650
PROPERTY AND EQUIPMENT, NET		9,206		-		117,931		21,029		(550	)		147,616
GOODWILL		-		-		174,849		-		-			174,849
INTANGIBLE ASSETS, NET		-		-		54,589		-		-			54,589
DEFERRED TAX ASSETS, NET NON-CURRENT		-		54		8,067		178		(8,299	)		-
INVESTMENT IN SUBSIDIARIES		708,038		1,393,445		-		-		(2,101,483	)		-
INTERCOMPANY RECEIVABLES		-		-		857,200		744		(857,944	)		-
OTHER		6,319		4,652		1,966		266		-			13,203
TOTAL NON-CURRENT ASSETS		723,563		1,398,151		1,214,602		22,217		(2,968,276	)		390,257
TOTAL	$	734,084	$	1,398,202	$	1,547,323	$	28,839	$	(2,968,541	)	$	739,907
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	150	$	-	$	35,673	$	388	$	-		$	36,211
Current portion of debt		-		-		177		-		-			177
Billings in excess of costs and estimated earnings		-		-		456		-		-			456
Accrued insurance claims		607		-		24,966		86		-			25,659
Deferred tax liabilities		-		193		4		68		(265	)		-
Other accrued liabilities		2,468		3,975		43,463		1,390		-			51,296
Total current liabilities		3,225		4,168		104,739		1,932		(265	)		113,799
LONG-TERM DEBT		-		187,500		55		-		-			187,555
ACCRUED INSURANCE CLAIMS		726		-		23,402		75		-			24,203
DEFERRED TAX LIABILITIES, NET NON-CURRENT		737		-		48,502		2,539		(8,299	)		43,479
INTERCOMPANY PAYABLES		359,459		498,496		-		-		(857,955	)		-
OTHER LIABILITIES		2,770		-		930		4		-			3,704
Total liabilities		366,917		690,164		177,628		4,550		(866,519	)		372,740
Total stockholders' equity		367,167		708,038		1,369,695		24,289		(2,102,022	)		367,167
TOTAL	$	734,084	$	1,398,202	$	1,547,323	$	28,839	$	(2,968,541	)	$	739,907

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
JULY 30, 2011
	Parent		Issuer		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
ASSETS
CURRENT ASSETS:
Cash and equivalents	$	-	$	-	$	44,608	$	158	$	-		$	44,766
Accounts receivable, net		-		-		136,168		2,384		-			138,552
Costs and estimated earnings in excess of billings		-		-		89,120		1,735		-			90,855
Inventories		-		-		20,488		70		-			20,558
Deferred tax assets, net		1,458		-		14,596		168		(265	)		15,957
Income taxes receivable		8,685		-		-		-		-			8,685
Other current assets		2,492		9		7,505		932		-			10,938
Total current assets		12,635		9		312,485		5,447		(265	)		330,311
PROPERTY AND EQUIPMENT, NET		8,880		-		119,722		21,399		(562	)		149,439
GOODWILL		-		-		174,849		-		-			174,849
INTANGIBLE ASSETS, NET		-		-		56,279		-		-			56,279
DEFERRED TAX ASSETS, NET NON-CURRENT		-		54		8,067		179		(8,300	)		-
INVESTMENT IN SUBSIDIARIES		695,073		1,373,992		-		-		(2,069,065	)		-
INTERCOMPANY RECEIVABLES		-		-		859,629		-		(859,629	)		-
OTHER		6,924		4,745		1,907		301		-			13,877
TOTAL NON-CURRENT ASSETS		710,877		1,378,791		1,220,453		21,879		(2,937,556	)		394,444
TOTAL	$	723,512	$	1,378,800	$	1,532,938	$	27,326	$	(2,937,821	)	$	724,755
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	159	$	-	$	38,847	$	393	$	-		$	39,399
Current portion of debt		-		-		232		-		-			232
Billings in excess of costs and estimated earnings		-		-		749		-		-			749
Accrued insurance claims		606		-		25,413		73		-			26,092
Deferred tax liabilities		-		193		4		68		(265	)		-
Other accrued liabilities		5,651		1,106		43,340		1,944		-			52,041
Total current liabilities		6,416		1,299		108,585		2,478		(265	)		118,513
LONG-TERM DEBT		-		187,500		74		-		-			187,574
ACCRUED INSURANCE CLAIMS		716		-		22,569		59		-			23,344
DEFERRED TAX LIABILITIES, NET NON-CURRENT		737		-		45,123		2,363		(8,300	)		39,923
INTERCOMPANY PAYABLES		361,067		494,928		-		3,646		(859,641	)		-
OTHER LIABILITIES		2,725		-		820		5		-			3,550
Total liabilities		371,661		683,727		177,171		8,551		(868,206	)		372,904
Total stockholders' equity		351,851		695,073		1,355,767		18,775		(2,069,615	)		351,851
TOTAL	$	723,512	$	1,378,800	$	1,532,938	$	27,326	$	(2,937,821	)	$	724,755

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED OCTOBER 29, 2011
	Parent			Issuer			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
REVENUES:
Contract revenues	$	-		$	-		$	313,818		$	5,757		$	-		$	319,575
EXPENSES:
Costs of earned revenues, excluding depreciation and amortization		-			-			250,893			4,294			-			255,187
General and administrative		6,407			147			16,404			2,400			-			25,358
Depreciation and amortization		787			-			13,861			1,322			(12	)		15,958
Intercompany charges (income), net		(7,964	)		-			7,496			468			-			-
Total		(770	)		147			288,654			8,484			(12	)		296,503
Interest income		-			-			17			-			-			17
Interest expense		(770	)		(3,414	)		(6	)		-			-			(4,190	)
Other income, net		-			-			3,061			(102	)		-			2,959
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES		-			(3,561	)		28,236			(2,829	)		12			21,858
PROVISION (BENEFIT) FOR INCOME TAXES		-			(1,440	)		11,476			(1,144	)		-			8,892
NET INCOME (LOSS)  BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES		-			(2,121	)		16,760			(1,685	)		12			12,966
EQUITY IN EARNINGS OF SUBSIDIARIES		12,966			15,087			-			-			(28,053	)		-
NET INCOME (LOSS)	$	12,966		$	12,966		$	16,760		$	(1,685	)	$	(28,041	)	$	12,966

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED OCTOBER 30, 2010
	Parent			Issuer			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
REVENUES:
Contract revenues	$	-		$	-		$	259,168		$	2,416		$	-		$	261,584
EXPENSES:
Costs of earned revenues, excluding depreciation and amortization		-			-			207,107			2,215			-			209,322
General and administrative		5,257			136			15,308			2,124			-			22,825
Depreciation and amortization		778			-			13,646			1,203			(11	)		15,616
Intercompany charges (income), net		(6,900	)		-			6,823			77			-			-
Total		(865	)		136			242,884			5,619			(11	)		247,763
Interest income		-			-			28			-			-			28
Interest expense		(865	)		(2,840	)		(2	)		-			-			(3,707	)
Other income, net		-			-			1,761			(4	)		-			1,757
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS (LOSSES) OF SUBSIDIARIES		-			(2,976	)		18,071			(3,207	)		11			11,899
PROVISION (BENEFIT) FOR INCOME TAXES		-			(1,274	)		7,799			(1,373	)		-			5,152
NET INCOME (LOSS)  BEFORE EQUITY IN EARNINGS (LOSSES) OF SUBSIDIARIES		-			(1,702	)		10,272			(1,834	)		11			6,747
EQUITY IN EARNINGS OF SUBSIDIARIES		6,747			8,449			-			-			(15,196	)		-
NET INCOME (LOSS)	$	6,747		$	6,747		$	10,272		$	(1,834	)	$	(15,185	)	$	6,747

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED OCTOBER 29, 2011
	Parent			Issuer			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	(4,705	)	$	798		$	24,882		$	(1,542	)	$	-		$	19,433
Cash flows from investing activities:
Capital expenditures		(1,257	)		-			(18,144	)		(1,456	)		-			(20,857	)
Proceeds from sale of assets		-			-			6,401			16			-			6,417
Changes in restricted cash		550			-			-			-			-			550
Capital contributions to subsidiaries		-			3,867			-			-			(3,867	)		-
Net cash provided by (used in) investing activities		(707	)		3,867			(11,743	)		(1,440	)		(3,867	)		(13,890	)
Cash flows from financing activities:
Principal payments on capital lease obligations		-			-			(75	)		-			-			(75	)
Exercise of stock options and other		940			-			-			-			-			940
Restricted stock tax withholdings		(37	)		-			-			-			-			(37	)
Intercompany funding		4,334			(4,665	)		(6,410	)		2,874			3,867			-
Excess tax benefit from share-based awards		175			-			-			-			-			175
Net cash provided by (used in) financing activities		5,412			(4,665	)		(6,485	)		2,874			3,867			1,003
Net increase (decrease) in cash and equivalents		-			-			6,654			(108	)		-			6,546
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD		-			-			44,608			158			-			44,766
CASH AND EQUIVALENTS AT END OF PERIOD	$	-		$	-		$	51,262		$	50		$	-		$	51,312

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED OCTOBER 30, 2010
	Parent			Issuer			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	(2,057	)	$	(4,216	)	$	26,453		$	(1,114	)	$	-		$	19,066
Cash flows from investing activities:
Capital expenditures		(274	)		-			(11,984	)		(1,191	)		-			(13,449	)
Proceeds from sale of assets		-			-			2,068			5			-			2,073
Changes in restricted cash		25			-			-			-			-			25
Capital contributions to subsidiaries		-			(2,455	)		-			-			2,455			-
Net used in investing activities		(249	)		(2,455	)		(9,916	)		(1,186	)		2,455			(11,351	)
Cash flows from financing activities:
Repurchases of common stock		(31,036	)		-			-			-			-			(31,036	)
Principal payments on long-term debt		-			-			(29	)		-			-			(29	)
Debt issuance costs		(29	)		-			-			-			-			(29	)
Exercise of stock options and other		19			-			-			-			-			19
Intercompany funding		33,352			6,671			(39,742	)		2,174			(2,455	)		-
Net cash provided by (used in) financing activities		2,306			6,671			(39,771	)		2,174			(2,455	)		(31,075	)
Net decrease in cash and equivalents		-			-			(23,234	)		(126	)		-			(23,360	)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD		-			-			102,858			462			-			103,320
CASH AND EQUIVALENTS AT END OF PERIOD	$	-		$	-		$	79,624		$	336		$	-		$	79,960