SUPPLEMENTAL CONSOLIDATING FINANCIAL STATEMENTS

12 Months Ended

Jul. 28, 2012

Supplemental Consolidating Financial Statements [Abstract]

Supplemental Consolidating Financial Statements

19. Supplemental Consolidating Financial Statements

As of July 28, 2012, 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 9. The following 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 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 consolidating financial statements during the period incurred and the settlement of intercompany balances is reflected in the 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
CONSOLIDATED BALANCE SHEET
JULY 28, 2012
	Parent		Issuer		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
ASSETS
CURRENT ASSETS:
Cash and equivalents	$	-	$	-	$	51,563	$	1,018	$	-		$	52,581
Accounts receivable, net		-		-		140,426		1,362		-			141,788
Costs and estimated earnings in excess of billings		-		-		125,869		1,452		-			127,321
Inventories		-		-		26,274		-		-			26,274
Deferred tax assets, net		2,390		-		13,566		80		(403	)		15,633
Income taxes receivable		4,884		-		-		-		-			4,884
Other current assets		2,211		10		5,458		787		-			8,466
Total current assets		9,485		10		363,156		4,699		(403	)		376,947
PROPERTY AND EQUIPMENT, NET		9,671		-		133,145		15,431		-			158,247
GOODWILL		-		-		174,849		-		-			174,849
INTANGIBLE ASSETS, NET		-		-		49,773		-		-			49,773
DEFERRED TAX ASSETS, NET NON-CURRENT		-		65		9,341		1,085		(10,491	)		-
INVESTMENT IN SUBSIDIARIES		734,451		1,425,451		-		-		(2,159,902	)		-
INTERCOMPANY RECEIVABLES		-		-		860,758		54		(860,812	)		-
OTHER		6,075		4,338		1,731		233		-			12,377
TOTAL NON-CURRENT ASSETS		750,197		1,429,854		1,229,597		16,803		(3,031,205	)		395,246
TOTAL ASSETS	$	759,682	$	1,429,864	$	1,592,753	$	21,502	$	(3,031,608	)	$	772,193
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	2,785	$	-	$	33,441	$	597	$	-		$	36,823
Current portion of debt		-		-		74		-		-			74
Billings in excess of costs and estimated earnings		-		-		1,522		-		-			1,522
Accrued insurance claims		588		-		24,551		79		-			25,218
Deferred tax liabilities		-		249		84		70		(403	)		-
Other accrued liabilities		5,054		565		43,772		1,535		-			50,926
Total current liabilities		8,427		814		103,444		2,281		(403	)		114,563
LONG-TERM DEBT		-		187,500		-		-		-			187,500
ACCRUED INSURANCE CLAIMS		708		-		22,815		68		-			23,591
DEFERRED TAX LIABILITIES, NET NON-CURRENT		1,020		-		57,140		1,868		(10,491	)		49,537
INTERCOMPANY PAYABLES		353,713		507,099		-		-		(860,812	)		-
OTHER LIABILITIES		2,883		-		1,185		3		-			4,071
Total liabilities		366,751		695,413		184,584		4,220		(871,706	)		379,262
Total stockholders' equity		392,931		734,451		1,408,169		17,282		(2,159,902	)		392,931
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	759,682	$	1,429,864	$	1,592,753	$	21,502	$	(3,031,608	)	$	772,193

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
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 ASSETS	$	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 LIABILITIES AND STOCKHOLDERS' EQUITY	$	723,512	$	1,378,800	$	1,532,938	$	27,326	$	(2,937,821	)	$	724,755

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED JULY 28, 2012
	Parent			Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
REVENUES:
Contract Revenues	$	-		$	-		$	1,186,380		$	14,739		$	-		$	1,201,119
EXPENSES:
Costs of earned revenues, excluding depreciation and amortization		-			-			957,449			11,500			-			968,949
General and administrative		28,048			574			65,185			10,217			-			104,024
Depreciation and amortization		3,137			-			54,735			4,833			(12	)		62,693
Intercompany charges (income), net		(34,212	)		-			33,749			463			-			-
Total		(3,027	)		574			1,111,118			27,013			(12	)		1,135,666
Interest income (expense), net		(3,049	)		(13,660	)		(8	)		-			-			(16,717	)
Other income, net		22			-			15,281			522			-			15,825
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES		-			(14,234	)		90,535			(11,752	)		12			64,561
PROVISION (BENEFIT) FOR INCOME TAXES		-			(5,550	)		35,299			(4,566	)		-			25,183
NET INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES		-			(8,684	)		55,236			(7,186	)		12			39,378
EQUITY IN EARNINGS OF SUBSIDIARIES		39,378			48,062			-			-			(87,440	)		-
NET INCOME (LOSS)	$	39,378		$	39,378		$	55,236		$	(7,186	)	$	(87,428	)	$	39,378

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED JULY 30, 2011
	Parent			Issuer			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
REVENUES:
Contract Revenues	$	-		$	-		$	1,025,484	$	10,384		$	-		$	1,035,868
EXPENSES:
Costs of earned revenues, excluding depreciation and amortization		-			-			827,980		9,139			-			837,119
General and administrative		23,520			648			62,174		8,280			-			94,622
Depreciation and amortization		3,192			-			54,232		5,156			(47	)		62,533
Intercompany charges (income), net		(29,852	)		-			29,437		415			-			-
Total		(3,140	)		648			973,823		22,990			(47	)		994,274
Interest income (expense), net		(3,140	)		(12,852	)		81		-			-			(15,911	)
Loss on debt extinguishment		-			(8,295	)		-		-			-			(8,295	)
Other income, net		-			-			10,845		251			-			11,096
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES		-			(21,795	)		62,587		(12,355	)		47			28,484
PROVISION (BENEFIT) FOR INCOME TAXES		-			(9,430	)		27,142		(5,335	)		-			12,377
NET INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES		-			(12,365	)		35,445		(7,020	)		47			16,107
EQUITY IN EARNINGS OF SUBSIDIARIES		16,107			28,472			-		-			(44,579	)		-
NET INCOME (LOSS)	$	16,107		$	16,107		$	35,445	$	(7,020	)	$	(44,532	)	$	16,107

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 2010
	Parent			Issuer			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
REVENUES:
Contract revenues	$	-		$	-		$	980,082	$	8,541		$	-		$	988,623
EXPENSES:
Costs of earned revenues, excluding depreciation and amortization		-			-			802,203		7,861			-			810,064
General and administrative		21,659			457			65,058		10,966			-			98,140
Depreciation and amortization		3,293			-			56,368		3,991			(45	)		63,607
Intercompany charges (income), net		(27,589	)		-			27,026		563			-			-
Total		(2,637	)		457			950,655		23,381			(45	)		971,811
Interest income (expense), net		(2,637	)		(11,558	)		20		-			-			(14,175	)
Other income, net		-			-			8,007		86			-			8,093
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES		-			(12,015	)		37,454		(14,754	)		45			10,730
PROVISION (BENEFIT) FOR INCOME TAXES		1,092			(5,493	)		16,027		(6,745	)		-			4,881
NET INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES		(1,092	)		(6,522	)		21,427		(8,009	)		45			5,849
EQUITY IN EARNINGS OF SUBSIDIARIES		6,941			13,463			-		-			(20,404	)		-
NET INCOME (LOSS)	$	5,849		$	6,941		$	21,427	$	(8,009	)	$	(20,359	)	$	5,849

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED JULY 28, 2012
	Parent			Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	6,755		$	(8,774	)	$	69,823		$	(2,679	)	$	-		$	65,125
Cash flows from investing activities:
Capital expenditures		(3,685	)		-			(69,362	)		(4,565	)		-			(77,612	)
Proceeds from sale of assets		-			-			19,211			5,572			-			24,783
Changes in restricted cash		926			-			-			-			-			926
Capital contributions to subsidiaries		-			(4,943	)		-			-			4,943			-
Net cash provided by (used in) investing activities		(2,759	)		(4,943	)		(50,151	)		1,007			4,943			(51,903	)
Cash flows from financing activities:
Repurchases of common stock		(12,960	)		-			-			-			-			(12,960	)
Exercise of stock options and other		6,490			-			-			-			-			6,490
Restricted stock tax withholdings		(329	)		-			-			-			-			(329	)
Excess tax benefit from share-based awards		1,625			-			-			-			-			1,625
Principal payments on capital lease obligations		-			-			(233	)		-			-			(233	)
Intercompany funding		1,178			13,717			(12,484	)		2,532			(4,943	)		-
Net cash provided by (used in) financing activities		(3,996	)		13,717			(12,717	)		2,532			(4,943	)		(5,407	)
Net increase in cash and equivalents		-			-			6,955			860			-			7,815
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD		-			-			44,608			158			-			44,766
CASH AND EQUIVALENTS AT END OF PERIOD	$	-		$	-		$	51,563		$	1,018		$	-		$	52,581

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED JULY 30, 2011
	Parent			Issuer			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	7,979		$	(12,343	)	$	53,611		$	(5,390	)	$	-		$	43,857
Cash flows from investing activities:
Capital expenditures		(1,746	)		-			(53,346	)		(6,365	)		-			(61,457	)
Proceeds from sale of assets		-			-			11,645			660			-			12,305
Cash paid for acquisitions		-			(27,500	)		(8,951	)		-			-			(36,451	)
Changes in restricted cash		25			-			200			-			-			225
Capital contributions to subsidiaries		-			(52,492	)		-			-			52,492			-
Net used in investing activities		(1,721	)		(79,992	)		(50,452	)		(5,705	)		52,492			(85,378	)
Cash flows from financing activities:
Repurchases of common stock		(64,548	)		-			-			-			-			(64,548	)
Exercise of stock options and other		1,321			-			-			-			-			1,321
Restricted stock tax withholdings		(197	)		-			-			-			-			(197	)
Principal payments on capital lease obligations		-			-			(582	)		-			-			(582	)
Debt issuance costs		(456	)		(4,721	)		-			-			-			(5,177	)
Proceeds from issuance of 7.125% senior subordinated notes due 2021		-			187,500			-			-			-			187,500
Purchase of 8.125% senior subordinated notes due 2015		-			(135,350	)		-			-			-			(135,350	)
Intercompany funding		57,622			44,906			(60,827	)		10,791			(52,492	)		-
Net cash provided by (used in) financing activities		(6,258	)		92,335			(61,409	)		10,791			(52,492	)		(17,033	)
Net decrease in cash and equivalents		-			-			(58,250	)		(304	)		-			(58,554	)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD		-			-			102,858			462			-			103,320
CASH AND EQUIVALENTS AT END OF PERIOD	$	-		$	-		$	44,608		$	158		$	-		$	44,766

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED JULY 31, 2010
	Parent			Issuer			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			Dycom Consolidated
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	1,412		$	(6,025	)	$	62,857		$	(4,106	)	$	-		$	54,138
Cash flows from investing activities:
Capital expenditures		(3,191	)		-			(47,248	)		(4,937	)		-			(55,376	)
Proceeds from sale of assets		-			-			8,617			151			-			8,768
Capital contributions to subsidiaries		-			(26,615	)		-			-			26,615			-
Net used in investing activities		(3,191	)		(26,615	)		(38,631	)		(4,786	)		26,615			(46,608	)
Cash flows from financing activities:
Repurchases of common stock		(4,489	)		-			-			-			-			(4,489	)
Exercise of stock options and other		33			-			-			-			-			33
Restricted stock tax withholdings		(274	)		-			-			-			-			(274	)
Excess tax benefit from share-based awards		69			-			-			-			-			69
Principal payments on capital lease obligations		-			-			(1,023	)		-			-			(1,023	)
Debt issuance costs		(3,233	)		-			-			-			-			(3,233	)
Intercompany funding		9,673			32,640			(24,927	)		9,229			(26,615	)		-
Net cash provided by (used in) financing activities		1,779			32,640			(25,950	)		9,229			(26,615	)		(8,917	)
Net increase (decrease) in cash and equivalents		-			-			(1,724	)		337			-			(1,387	)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD		-			-			104,582			125			-			104,707
CASH AND EQUIVALENTS AT END OF PERIOD	$	-		$	-		$	102,858		$	462		$	-		$	103,320