EX-99.1 2 a2q15ex991.htm EXHIBIT 99.1 2Q15 EX 99.1

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

February 24, 2015

DYCOM INDUSTRIES, INC. ANNOUNCES FISCAL 2015 SECOND QUARTER
RESULTS AND PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER

Palm Beach Gardens, Florida, February 24, 2015 - Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 24, 2015.

The Company reported:

•
Contract revenues of $441.1 million for the quarter ended January 24, 2015, compared to $390.5 million for the quarter ended January 25, 2014. Contract revenues for the quarter ended January 24, 2015 grew 10.5% on an organic basis after excluding revenues from businesses acquired that were not owned for the full period in both the current and the prior year periods. Total revenues from these businesses acquired were $9.5 million for the quarter ended January 24, 2015.

•
Adjusted EBITDA - Non-GAAP of $47.6 million, or 10.8% of revenue, for the quarter ended January 24, 2015, compared to $28.2 million, or 7.2% of revenue, for the quarter ended January 25, 2014.

•
Net income of $9.4 million, or $0.27 per common share diluted, for the quarter ended January 24, 2015, compared to a net loss of $3.1 million, or $0.09 loss per common share, for the quarter ended January 25, 2014.

The Company also reported:

•
Contract revenues of $951.5 million for the six months ended January 24, 2015, compared to $903.2 million for the six months ended January 25, 2014. Contract revenues for the six months ended January 24, 2015 grew 3.2% on an organic basis after excluding revenues from businesses acquired that were not owned for the full period in both the current and the prior year periods. Total revenues from these businesses acquired were $19.6 million for the six months ended January 24, 2015.

•
Adjusted EBITDA - Non-GAAP of $114.0 million, or 12.0% of revenue, for the six months ended January 24, 2015, compared to $91.4 million, or 10.1% of revenue, for the six months ended January 25, 2014.

•
Net income of $30.2 million, or $0.86 per common share diluted, for the six months ended January 24, 2015, compared to $15.6 million, or $0.45 per common share diluted, for the six months ended January 25, 2014.

The Company also announced its outlook for the third quarter of fiscal 2015. The Company currently expects total revenue for the third quarter of fiscal 2015 to range from $455 million to $475 million and diluted earnings per share to range from $0.33 to $0.40.




The Company has defined Adjusted EBITDA - Non-GAAP as earnings before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. See the accompanying table which presents a reconciliation of GAAP to Non-GAAP financial information.
A conference call to review the Company’s results will be hosted at 9:00 a.m. (ET), Wednesday, February 25, 2015; call (800) 230-1092 (United States) or (612) 234-9959 (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 related materials, will be available at http://www.dycomind.com under the heading “Events.” The conference call materials will be available at approximately 7:00 a.m. (ET) on February 25, 2015. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the conference call materials will be available at http://www.dycomind.com until Friday, March 27, 2015.
For additional detail on selected financial information including organic revenue, customer metrics, and certain other selected financial data and Non-GAAP measures, please refer to the Trend Schedule on Dycom’s website at http://www.dycomind.com in the Investor Center. The Trend Schedule will be available at approximately 7:00 a.m. (ET) on February 25, 2015.

Dycom is a leading provider of specialty contracting services throughout the United States and in Canada. 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.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The Company believes that the presentation of certain Non-GAAP financial measures in this press release provides information that is useful to investors because it allows for a more direct comparison of the Company’s performance for the period with the Company’s performance in the comparable prior-year period. The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results.

Fiscal 2015 second quarter results are preliminary and are unaudited. This press release contains 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. The most significant of these risks and uncertainties are described in our Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) and include business and economic conditions and trends 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, preliminary purchase price allocations of businesses acquired, expected benefits and synergies of acquisitions, the future impact of any acquisitions or dispositions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, and the other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements.

---Tables Follow---
 



DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
January 24, 2015 and July 26, 2014
Unaudited
 
 
January 24, 2015
 
July 26, 2014
ASSETS
 
(Dollars in thousands)
Current assets:
 
 
 
 
Cash and equivalents
 
$
18,428

 
$
20,672

Accounts receivable, net
 
267,286

 
272,741

Costs and estimated earnings in excess of billings
 
212,314

 
230,569

Inventories
 
43,768

 
49,095

Deferred tax assets, net
 
18,732

 
19,932

Other current assets
 
23,837

 
12,727

Total current assets
 
584,365

 
605,736

 
 
 
 
 
Property and equipment, net
 
207,148

 
205,413

Goodwill
 
269,465

 
269,088

Intangible assets, net
 
114,173

 
116,116

Other
 
18,382

 
16,001

Total non-current assets
 
609,168

 
606,618

Total assets
 
$
1,193,533

 
$
1,212,354

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
52,114

 
$
63,318

Current portion of debt
 
12,500

 
10,938

Billings in excess of costs and estimated earnings
 
16,422

 
13,882

Accrued insurance claims
 
34,185

 
32,260

Other accrued liabilities
 
62,991

 
76,134

Total current liabilities
 
178,212

 
196,532

 
 
 
 
 
Long-term debt
 
421,418

 
446,863

Accrued insurance claims
 
38,348

 
33,782

Deferred tax liabilities, net non-current
 
45,596

 
45,361

Other liabilities
 
5,051

 
4,882

Total liabilities
 
688,625

 
727,420

 
 
 
 
 
Total stockholders' equity
 
504,908

 
484,934

Total liabilities and stockholders' equity
 
$
1,193,533

 
$
1,212,354





DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
Six Months Ended
 
Six Months Ended
 
 
January 24, 2015
 
January 25, 2014
 
January 24, 2015
 
January 25, 2014
 
 
(Dollars in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
Contract revenues
 
$
441,081

 
$
390,518

 
$
951,470

 
$
903,238

 
 
 
 
 
 
 
 
 
Costs of earned revenues, excluding depreciation and amortization
 
355,429

 
327,353

 
758,898

 
737,472

General and administrative expenses (a)
 
41,815

 
38,562

 
86,511

 
81,637

Depreciation and amortization
 
23,264

 
23,435

 
46,193

 
46,987

Total
 
420,508

 
389,350

 
891,602

 
866,096

 
 
 
 
 
 
 
 
 
Interest expense, net
 
(6,730
)
 
(6,800
)
 
(13,480
)
 
(13,686
)
Other income, net
 
1,735

 
595

 
3,530

 
2,607

Income (loss) before income taxes
 
15,578

 
(5,037
)
 
49,918

 
26,063

 
 
 
 
 
 
 
 
 
Provision (benefit) for income taxes
 
6,146

 
(1,970
)
 
19,679

 
10,470

 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
9,432

 
$
(3,067
)
 
$
30,239

 
$
15,593

 
 
 
 
 
 
 
 
 
Earnings (loss) per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per common share
 
$
0.28

 
$
(0.09
)
 
$
0.89

 
$
0.46

 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per common share
 
$
0.27

 
$
(0.09
)
 
$
0.86

 
$
0.45

 
 
 
 
 
 
 
 
 
Shares used in computing earnings (loss) per common share:
 
 
 
 
 
 
 
 
Basic
 
34,125,829

 
33,836,099

 
34,067,983

 
33,629,884

 
 
 
 
 
 
 
 
 
Diluted
 
35,127,398

 
33,836,099

 
35,122,530

 
34,767,945

 
 
 
 
 
 
 
 
 
(a) Includes stock-based compensation expense of $3.7 million and $3.5 million for the three months ended January 24, 2015 and January 25, 2014, respectively, and $7.6 million and $7.0 million for the six months ended January 24, 2015 and January 25, 2014, respectively.




DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited

 
 
 
 
 
 
 
 
 
 
 
The below table presents the reconciliation of GAAP contract revenues to Non-GAAP contract revenues and the percentages of growth of GAAP and Non-GAAP contract revenues.
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract Revenues - GAAP
 
Revenues from businesses acquired (a)
 
Contract Revenues - Non-GAAP
 
%
Growth - GAAP
 
%
Growth - Non-GAAP
 
Three Months Ended January 24,2015
$
441,081

 
$
(9,534
)
 
$
431,547

 
12.9
%
 
10.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended January 25, 2014
$
390,518

 
$
—

 
$
390,518

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended January 24, 2015
$
951,470

 
$
(19,641
)
 
$
931,829

 
5.3
%
 
3.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended January 25, 2014
$
903,238

 
$
—

 
$
903,238

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) Amounts for the three and six months ended January 24, 2015 represent revenues from businesses acquired during the fourth quarter of fiscal 2014 and the first quarter of fiscal 2015.





DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION (CONTINUED)
Unaudited
 
 
 
 
 
 
 
 
 
 
The below table presents the Non-GAAP financial measure of Adjusted EBITDA for the three and six months ended January 24, 2015 and January 25, 2014 and a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure.
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
Six Months Ended
 
Six Months Ended
 
 
 
January 24, 2015
 
January 25, 2014
 
January 24, 2015
 
January 25, 2014
 
 
 
(Dollars in thousands)
Reconciliation of net income (loss) to Adjusted EBITDA - Non-GAAP:
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
9,432

 
$
(3,067
)
 
$
30,239

 
$
15,593

 
Interest expense, net
 
6,730

 
6,800

 
13,480

 
13,686

 
Provision (benefit) for income taxes
 
6,146

 
(1,970
)
 
19,679

 
10,470

 
Depreciation and amortization expense
 
23,264

 
23,435

 
46,193

 
46,987

 
Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA")
 
45,572

 
25,198

 
109,591

 
86,736

 
Gain on sale of fixed assets
 
(1,659
)
 
(570
)
 
(3,182
)
 
(2,435
)
 
Stock-based compensation expense
 
3,664

 
3,544

 
7,554

 
7,049

 
Adjusted EBITDA - Non-GAAP
 
$
47,577

 
$
28,172

 
$
113,963

 
$
91,350