DYCOM INDUSTRIES, INC. |
Florida | 001-10613 | 59-1277135 | ||
(State or other jurisdiction of incorporation) | (Commission file number) | (I.R.S. employer identification no.) | ||
11780 U.S. Highway One, Suite 600, | ||||
Palm Beach Gardens, Florida 33408 | ||||
(Address of principal executive offices) (Zip Code) | ||||
(561) 627-7171 | ||||
(Registrant’s telephone number, including area code) |
(d) | Exhibits |
DYCOM INDUSTRIES, INC. (Registrant) | |
By: | /s/ Richard B. Vilsoet |
Name: | Richard B. Vilsoet |
Title: | Senior Vice President, Chief Legal Officer and Corporate Secretary |
FOR IMMEDIATE RELEASE | Contact: | Steven E. Nielsen, President and CEO H. Andrew DeFerrari, Senior Vice President and CFO (561) 627-7171 |
• | Contract revenues of $833.7 million for the quarter ended April 27, 2019, compared to $731.4 million for the quarter ended April 28, 2018. Contract revenues for the quarter ended April 27, 2019 increased 15.8% on an organic basis after excluding contract revenues from an acquired business that was not owned for the entire period in both the current and prior year quarter and contract revenues from storm restoration services. Contract revenues from that acquired business were $6.1 million for the quarter ended April 27, 2019 compared to $5.8 million for the quarter ended April 28, 2018. Contract revenues from storm restoration services were $4.7 million for the quarter ended April 27, 2019 compared to $14.8 million for the quarter ended April 28, 2018. |
• | Non-GAAP Adjusted EBITDA of $73.6 million, or 8.8% of contract revenues, for the quarter ended April 27, 2019, compared to Non-GAAP Adjusted EBITDA of $73.7 million, or 10.1% of contract revenues, for the quarter ended April 28, 2018. |
• | On a GAAP basis, net income was $14.3 million, or $0.45 per common share diluted, for the quarter ended April 27, 2019, compared to net income of $17.2 million, or $0.53 per common share diluted, for the quarter ended April 28, 2018. Non-GAAP Adjusted Net Income was $16.9 million, or $0.53 per common share diluted, for the quarter ended April 27, 2019, compared to Non-GAAP Adjusted Net Income of $20.6 million, or $0.65 per Non-GAAP Adjusted Diluted Share, for the quarter ended April 28, 2018. |
• | During the quarter ended April 27, 2019, the Company recognized $10.3 million of pre-tax income from the recovery of previously reserved accounts receivable and contract assets for a customer that filed a voluntary petition for reorganization during February 2019. In addition, the Company also recorded an $8.2 million pre-tax charge for estimated warranty costs for work performed for a customer in prior periods. |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in thousands) | |||||||
Unaudited | |||||||
April 27, 2019 | January 26, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 33,579 | $ | 128,342 | |||
Accounts receivable, net | 701,522 | 625,258 | |||||
Contract assets | 297,630 | 215,849 | |||||
Inventories | 105,166 | 94,385 | |||||
Income tax receivable | 2,376 | 3,461 | |||||
Other current assets | 38,242 | 29,145 | |||||
Total current assets | 1,178,515 | 1,096,440 | |||||
Property and equipment, net | 429,310 | 424,751 | |||||
Operating lease right-of-use assets (a) | 69,065 | — | |||||
Goodwill and other intangible assets, net | 481,532 | 486,874 | |||||
Other | 52,784 | 89,438 | |||||
Total non-current assets | 1,032,691 | 1,001,063 | |||||
Total assets | $ | 2,211,206 | $ | 2,097,503 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 138,727 | $ | 119,485 | |||
Current portion of debt | 11,250 | 5,625 | |||||
Contract liabilities | 12,815 | 15,125 | |||||
Accrued insurance claims | 44,035 | 39,961 | |||||
Operating lease liabilities (a) | 25,072 | — | |||||
Income taxes payable | 366 | 721 | |||||
Other accrued liabilities | 109,390 | 104,074 | |||||
Total current liabilities | 341,655 | 284,991 | |||||
Long-term debt | 867,376 | 867,574 | |||||
Accrued insurance claims | 59,793 | 68,315 | |||||
Operating lease liabilities (a) | 44,449 | — | |||||
Deferred tax liabilities, net non-current | 71,548 | 65,963 | |||||
Other liabilities | 5,208 | 6,492 | |||||
Total liabilities | 1,390,029 | 1,293,335 | |||||
Total stockholders’ equity | 821,177 | 804,168 | |||||
Total liabilities and stockholders’ equity | $ | 2,211,206 | $ | 2,097,503 | |||
(a) The Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842), effective January 27, 2019, the first day of fiscal 2020. On adoption, the Company recognized approximately $71.0 million of operating lease right-of-use assets and corresponding operating lease liabilities on its condensed consolidated balance sheet for its operating leases with terms greater than twelve months. |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Dollars in thousands, except share amounts) | |||||||
Unaudited | |||||||
Quarter Ended | Quarter Ended | ||||||
April 27, 2019 | April 28, 2018 | ||||||
Contract revenues | $ | 833,743 | $ | 731,375 | |||
Costs of earned revenues, excluding depreciation and amortization (a) | 701,767 | 599,573 | |||||
General and administrative expenses (b) (c) | 58,622 | 62,283 | |||||
Depreciation and amortization | 46,341 | 43,355 | |||||
Total | 806,730 | 705,211 | |||||
Interest expense, net (d) | (12,233 | ) | (10,166 | ) | |||
Other income, net | 5,698 | 7,711 | |||||
Income before income taxes | 20,478 | 23,709 | |||||
Provision for income taxes | 6,199 | 6,478 | |||||
Net income | $ | 14,279 | $ | 17,231 | |||
Earnings per common share: | |||||||
Basic earnings per common share | $ | 0.45 | $ | 0.55 | |||
Diluted earnings per common share | $ | 0.45 | $ | 0.53 | |||
Shares used in computing earnings per common share: | |||||||
Basic | 31,451,809 | 31,190,366 | |||||
Diluted (e) | 31,786,459 | 32,407,914 | |||||
(a) During the quarter ended April 27, 2019, the Company recorded an $8.2 million pre-tax charge for estimated warranty costs for work performed for a customer in prior periods. | |||||||
(b) Includes stock-based compensation expense of $3.5 million and $4.9 million for the quarters ended April 27, 2019 and April 28, 2018, respectively. | |||||||
(c) During the quarter ended April 27, 2019, the Company recognized $10.3 million of pre-tax income from the recovery of previously reserved accounts receivable and contract assets for a customer that filed a voluntary petition for reorganization during February 2019. | |||||||
(d) Includes pre-tax interest expense for non-cash amortization of the debt discount associated with the Notes of approximately $4.9 million and $4.7 million for the quarters ended April 27, 2019 and April 28, 2018, respectively. | |||||||
(e) During the quarter ended April 28, 2018, the Company’s average stock price exceeded the $96.89 conversion price of its Notes. As a result, diluted shares used in computing diluted earnings per common share for the quarter ended April 28, 2018 include approximately 0.6 million of potential dilution from the embedded conversion feature in the Notes. |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP FINANCIAL MEASURES | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
CONTRACT REVENUES, NON-GAAP ORGANIC CONTRACT REVENUES, AND GROWTH %’s | |||||||||||||||||||||
Contract Revenues - GAAP | Revenues from acquired businesses (a) | Revenues from storm restoration services | Non-GAAP - Organic Contract Revenues | GAAP - Growth % | Non-GAAP - Organic Growth % | ||||||||||||||||
Quarter Ended April 27, 2019 | $ | 833,743 | $ | (6,106 | ) | $ | (4,716 | ) | $ | 822,921 | 14.0 | % | 15.8 | % | |||||||
Quarter Ended April 28, 2018 | $ | 731,375 | $ | (5,842 | ) | $ | (14,848 | ) | $ | 710,685 | |||||||||||
(a) Amounts for the quarters ended April 27, 2019 and April 28, 2018 represent contract revenues from an acquired business that was not owned for the full period in both the current and prior year periods. |
NET INCOME AND NON-GAAP ADJUSTED EBITDA | |||||||
Quarter Ended | Quarter Ended | ||||||
April 27, 2019 | April 28, 2018 | ||||||
Reconciliation of net income to Non-GAAP Adjusted EBITDA: | |||||||
Net income | $ | 14,279 | $ | 17,231 | |||
Interest expense, net | 12,233 | 10,166 | |||||
Provision for income taxes | 6,199 | 6,478 | |||||
Depreciation and amortization | 46,341 | 43,355 | |||||
Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") | 79,052 | 77,230 | |||||
Gain on sale of fixed assets | (6,738 | ) | (8,415 | ) | |||
Stock-based compensation expense | 3,479 | 4,863 | |||||
Recovery of previously reserved accounts receivable and contract assets | (10,345 | ) | — | ||||
Charge for warranty costs | 8,200 | — | |||||
Non-GAAP Adjusted EBITDA | $ | 73,648 | $ | 73,678 | |||
Contract revenues | $ | 833,743 | $ | 731,375 | |||
Non-GAAP Adjusted EBITDA % of contract revenues | 8.8 | % | 10.1 | % |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | |||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED) | |||||||
(Dollars in thousands, except share amounts) | |||||||
Unaudited | |||||||
NET INCOME, NON-GAAP ADJUSTED NET INCOME, DILUTED EARNINGS PER COMMON SHARE, NON-GAAP ADJUSTED DILUTED EARNINGS PER COMMON SHARE, AND NON-GAAP ADJUSTED DILUTED SHARES | |||||||
Quarter Ended | Quarter Ended | ||||||
April 27, 2019 | April 28, 2018 | ||||||
Reconciliation of net income to Non-GAAP Adjusted Net Income: | |||||||
Net income | $ | 14,279 | $ | 17,231 | |||
Pre-Tax Adjustments: | |||||||
Non-cash amortization of debt discount on Notes | 4,932 | 4,672 | |||||
Recovery of previously reserved accounts receivable and contract assets (a) | (10,345 | ) | — | ||||
Charge for warranty costs (b) | 8,200 | — | |||||
Tax Adjustments: | |||||||
Tax impact of the vesting and exercise of share-based awards (c) | 638 | — | |||||
Tax impact of pre-tax adjustments | (766 | ) | (1,275 | ) | |||
Total adjustments, net of tax | 2,659 | 3,397 | |||||
Non-GAAP Adjusted Net Income | $ | 16,938 | $ | 20,628 | |||
Reconciliation of diluted earnings per common share to Non-GAAP Adjusted Diluted Earnings per Common Share: | |||||||
GAAP diluted earnings per common share | $ | 0.45 | $ | 0.53 | |||
Total adjustments, net of tax and dilutive share effect of Notes (d) | 0.08 | 0.12 | |||||
Non-GAAP Adjusted Diluted Earnings per Common Share | $ | 0.53 | $ | 0.65 | |||
Shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share: | |||||||
GAAP diluted shares | 31,786,459 | 32,407,914 | |||||
Adjustment for economic benefit of note hedge related to Notes (d) | — | (614,999 | ) | ||||
Non-GAAP Adjusted Diluted Shares (d) | 31,786,459 | 31,792,915 | |||||
(a) During the quarter ended April 27, 2019, the Company recognized $10.3 million of pre-tax income from the recovery of previously reserved accounts receivable and contract assets for a customer that filed a voluntary petition for reorganization during February 2019. | |||||||
(b) During the quarter ended April 27, 2019, the Company recorded an $8.2 million pre-tax charge for estimated warranty costs for work performed for a customer in prior periods. | |||||||
(c) During the quarter ended April 27, 2019, the Company excluded income tax expense of approximately $0.6 million for the tax effects of the vesting and exercise of share-based awards from its Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings per Common Share. | |||||||
(d) The Company has a note hedge in effect to offset the economic dilution of additional shares from the Notes up to an average quarterly share price of $130.43 per share. Non-GAAP Adjusted Diluted Shares excludes the GAAP dilutive share effect of the Notes. | |||||||
Amounts in table above may not add due to rounding. |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | |||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED) | |||
Unaudited | |||
OUTLOOK - DILUTED EARNINGS PER COMMON SHARE AND NON-GAAP ADJUSTED DILUTED EARNINGS PER COMMON SHARE | |||
Quarter Ending | |||
July 27, 2019 | |||
GAAP diluted earnings per common share | $0.59 - $0.81 | ||
Adjustment | |||
Addback of after-tax non-cash amortization of debt discount (a) | 0.11 | ||
Non-GAAP Adjusted Diluted Earnings per Common Share | $0.70 - $0.92 | ||
Diluted shares (in millions) | 31.8 | ||
(a) The Company expects to recognize approximately $5.0 million in pre-tax interest expense during the quarter ending July 27, 2019 for the non-cash amortization of the debt discount associated with the Notes. |
• | Non-GAAP Organic Contract Revenues - contract revenues from businesses that are included for the entire period in both the current and prior year periods, excluding contract revenues from storm restoration services. Non-GAAP Organic Contract Revenue growth is calculated as the percentage change in Non-GAAP Organic Contract Revenues over those of the comparable prior year periods. Management believes organic growth is a helpful measure for comparing the Company’s revenue performance with prior periods. |
• | Non-GAAP Adjusted EBITDA - net income before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. Management believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the Company’s operating performance with prior periods as well as with the performance of other companies with different capital structures or tax rates. |
• | Non-GAAP Adjusted Net Income - GAAP net income before the non-cash amortization of the debt discount and the related tax impact, certain tax impacts resulting from vesting and exercise of share-based awards, and certain non-recurring items. |
• | Non-GAAP Adjusted Diluted Earnings per Common Share and Non-GAAP Adjusted Diluted Shares - Non-GAAP Adjusted Net Income divided by Non-GAAP Adjusted Diluted Shares outstanding. The Company has a hedge in effect to offset the economic dilution of additional shares that would be issued in connection with the conversion of the Notes up to an average quarterly share price of $130.43. The measure of Non-GAAP Adjusted Diluted shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share excludes dilution from the Notes. Management believes that the calculation of Non-GAAP Adjusted Diluted shares to reflect the note hedge will be useful to investors because it provides insight into the offsetting economic effect of the hedge against potential conversion of the Notes. |
• | Non-cash amortization of debt discount on Notes - The Company’s Notes were allocated between debt and equity components. The difference between the principal amount and the carrying amount of the liability component of the Notes represents a debt discount. The debt discount is being amortized over the term of the Notes but does not result in periodic cash interest payments. The Company has excluded the non-cash amortization of the debt discount from its Non-GAAP financial measures because it believes it is useful to analyze the component of interest expense for the Notes that will be paid in cash. The exclusion of the non-cash amortization from the Company’s Non-GAAP financial measures provides management with a consistent measure for assessing financial results. |
• | Recovery of previously reserved accounts receivable and contract assets - During the quarter ended April 27, 2019, the Company recognized $10.3 million of pre-tax income from the recovery of previously reserved accounts receivable and contract assets for a customer that filed a voluntary petition for reorganization during February 2019. The Company excludes the impact of this recovery from its Non-GAAP financial measures because the Company believes it is not indicative of its underlying results. |
• | Charge for warranty costs - During the quarter ended April 27, 2019, the Company recorded an $8.2 million pre-tax charge for estimated warranty costs for work performed for a customer in prior periods. The Company excludes the impact of this charge from its Non-GAAP financial measures because the Company believes it is not indicative of its underlying results in the current period. |
• | Tax impact of the vesting and exercise of share-based awards - The Company excludes certain tax impacts resulting from the vesting and exercise of share-based awards as these amounts may vary significantly from period to period. Excluding these |
• | Tax impact of pre-tax adjustments - The tax impact of pre-tax adjustments reflects the Company’s effective tax rate used for financial planning for the applicable period. |
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | ||||||||||||||||||||||||||
Non-GAAP Organic Contract Revenues | ||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Contract Revenues - GAAP | Revenues from acquired businesses1 | Revenues from storm restoration services | Additional week as a result of our 52/53 week fiscal year2 | Non-GAAP - Organic Revenues | Growth (Decline)% | |||||||||||||||||||||
Quarter Ended | GAAP % | Non-GAAP - Organic % | ||||||||||||||||||||||||
April 27, 2019 | $ | 833.7 | $ | (6.1 | ) | $ | (4.7 | ) | $ | — | $ | 822.9 | 14.0 | % | 15.8 | % | ||||||||||
April 28, 2018 | $ | 731.4 | $ | (5.8 | ) | $ | (14.8 | ) | $ | — | $ | 710.7 | ||||||||||||||
January 26, 2019 | $ | 748.6 | $ | (5.9 | ) | $ | (20.4 | ) | $ | — | $ | 722.3 | 14.3 | % | 13.7 | % | ||||||||||
January 27, 2018 | $ | 655.1 | $ | — | $ | (19.8 | ) | $ | — | $ | 635.3 | |||||||||||||||
October 27, 2018 | $ | 848.2 | $ | (8.8 | ) | $ | (3.9 | ) | $ | — | $ | 835.6 | 12.2 | % | 12.9 | % | ||||||||||
October 28, 2017 | $ | 756.2 | $ | — | $ | (15.9 | ) | $ | — | $ | 740.3 | |||||||||||||||
July 28 ,2018 | $ | 799.5 | $ | (9.1 | ) | $ | (3.8 | ) | $ | — | $ | 786.6 | 2.5 | % | 0.8 | % | ||||||||||
July 29, 2017 | $ | 780.2 | $ | — | $ | — | $ | — | $ | 780.2 | ||||||||||||||||
April 28, 2018 | $ | 731.4 | $ | (15.4 | ) | $ | (14.8 | ) | $ | — | $ | 701.1 | (7.0 | )% | (10.0 | )% | ||||||||||
April 29, 2017 | $ | 786.3 | $ | (7.1 | ) | $ | — | $ | — | $ | 779.2 | |||||||||||||||
January 27, 2018 | $ | 655.1 | $ | (8.4 | ) | $ | (19.6 | ) | $ | — | $ | 627.1 | (6.6 | )% | (10.6 | )% | ||||||||||
January 28, 2017 | $ | 701.1 | $ | — | $ | — | $ | — | $ | 701.1 | ||||||||||||||||
October 28, 2017 | $ | 756.2 | $ | (8.6 | ) | $ | (15.5 | ) | $ | — | $ | 732.1 | (5.4 | )% | (8.4 | )% | ||||||||||
October 29, 2016 | $ | 799.2 | $ | — | $ | — | $ | — | $ | 799.2 | ||||||||||||||||
July 29, 2017 | $ | 780.2 | $ | (19.3 | ) | $ | — | $ | — | $ | 760.9 | (1.1 | )% | 4.6 | % | |||||||||||
July 30, 2016 | $ | 789.2 | $ | (5.6 | ) | $ | — | $ | (56.0 | ) | $ | 727.6 |
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | ||||||||||||||||||||||
Non-GAAP Organic Contract Revenues - Certain Customers | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Contract Revenues - GAAP | Revenues from acquired businesses1 | Revenues from storm restoration services | Non-GAAP - Organic Revenues | Growth (Decline)% | ||||||||||||||||||
Quarter Ended | GAAP % | Non-GAAP - Organic % | ||||||||||||||||||||
AT&T | ||||||||||||||||||||||
April 27, 2019 | $ | 209.3 | $ | (0.6 | ) | $ | — | $ | 208.7 | 18.2 | % | 28.7 | % | |||||||||
April 28, 2018 | $ | 177.0 | $ | — | $ | (14.8 | ) | $ | 162.2 | |||||||||||||
Verizon | ||||||||||||||||||||||
April 27, 2019 | $ | 179.8 | $ | — | $ | — | $ | 179.8 | 47.2 | % | 47.2 | % | ||||||||||
April 28, 2018 | $ | 122.1 | $ | — | $ | — | $ | 122.1 | ||||||||||||||
CenturyLink | ||||||||||||||||||||||
April 27, 2019 | $ | 109.8 | $ | — | $ | (4.1 | ) | $ | 105.7 | 22.4 | % | 17.8 | % | |||||||||
April 28, 2018 | $ | 89.7 | $ | — | $ | — | $ | 89.7 | ||||||||||||||
Windstream | ||||||||||||||||||||||
April 27, 2019 | $ | 34.0 | $ | — | $ | (0.5 | ) | $ | 33.4 | 40.3 | % | 38.0 | % | |||||||||
April 28, 2018 | $ | 24.2 | $ | — | $ | — | $ | 24.2 | ||||||||||||||
Top 5 Customers3 | ||||||||||||||||||||||
April 27, 2019 | $ | 669.9 | $ | (5.6 | ) | $ | (4.7 | ) | $ | 659.7 | 17.1 | % | 19.4 | % | ||||||||
April 28, 2018 | $ | 572.2 | $ | (5.1 | ) | $ | (14.8 | ) | $ | 552.3 | ||||||||||||
All Other Customers (excluding Top 5 Customers) | ||||||||||||||||||||||
April 27, 2019 | $ | 163.8 | $ | (0.5 | ) | $ | — | $ | 163.2 | 2.9 | % | 3.0 | % | |||||||||
April 28, 2018 | $ | 159.2 | $ | (0.7 | ) | $ | — | $ | 158.4 |
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | |||||||
Non-GAAP Adjusted EBITDA | |||||||
Unaudited | |||||||
(Dollars in thousands) | |||||||
Quarter Ended | |||||||
April 27, 2019 | April 28, 2018 | ||||||
Net income | $ | 14,279 | $ | 17,231 | |||
Interest expense, net | 12,233 | 10,166 | |||||
Provision for income taxes | 6,199 | 6,478 | |||||
Depreciation and amortization | 46,341 | 43,355 | |||||
Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) | 79,052 | 77,230 | |||||
Gain on sale of fixed assets | (6,738 | ) | (8,415 | ) | |||
Stock-based compensation expense | 3,479 | 4,863 | |||||
Recovery of previously reserved accounts receivable and contract assets | (10,345 | ) | — | ||||
Charge for warranty costs | 8,200 | — | |||||
Non-GAAP Adjusted EBITDA | $ | 73,648 | $ | 73,678 | |||
Contract revenues | $ | 833,743 | $ | 731,375 | |||
Non-GAAP Adjusted EBITDA % of contract revenues | 8.8 | % | 10.1 | % | |||
Comparable Prior Periods for Q2 2020 and Q3 2020 Outlook: | Quarter Ended | ||||||
July 28, 2018 | October 27, 2018 | ||||||
Net income | $ | 29,900 | $ | 27,830 | |||
Interest expense, net | 10,446 | 11,310 | |||||
Provision for income taxes | 11,544 | 10,454 | |||||
Depreciation and amortization | 44,805 | 45,533 | |||||
Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) | 96,695 | 95,127 | |||||
Gain on sale of fixed assets | (4,909 | ) | (3,874 | ) | |||
Stock-based compensation expense | 6,048 | 7,366 | |||||
Non-GAAP Adjusted EBITDA | $ | 97,834 | $ | 98,619 | |||
Contract revenues | $ | 799,470 | $ | 848,237 | |||
Non-GAAP Adjusted EBITDA % of contract revenues | 12.2 | % | 11.6 | % |
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | |||||||||||
Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings Per Share | |||||||||||
Unaudited | |||||||||||
(Dollars and shares in thousands, except per share amounts) | |||||||||||
Quarter Ended April 27, 2019 | |||||||||||
GAAP | Reconciling Items | Non-GAAP Adjusted | |||||||||
Contract revenues | $ | 833,743 | $ | — | $ | 833,743 | |||||
Costs of earned revenues, excluding depreciation and amortization4 | 701,767 | (8,200 | ) | 693,567 | |||||||
General and administrative expenses5 | 58,622 | 10,345 | 68,967 | ||||||||
Depreciation and amortization | 46,341 | — | 46,341 | ||||||||
Total | 806,730 | 2,145 | 808,875 | ||||||||
Interest expense, net6 | (12,233 | ) | 4,932 | (7,301 | ) | ||||||
Other income, net | 5,698 | — | 5,698 | ||||||||
Income before income taxes | 20,478 | 2,787 | 23,265 | ||||||||
Provision for income taxes7,8 | 6,199 | 128 | 6,327 | ||||||||
Net income | $ | 14,279 | $ | 2,915 | $ | 16,938 | |||||
Diluted earnings per common share | $ | 0.45 | $ | 0.08 | $ | 0.53 | |||||
Shares used in computing diluted earnings per common share | 31,786 | — | 31,786 | ||||||||
Quarter Ended April 28, 2018 | |||||||||||
GAAP | Reconciling Items | Non-GAAP Adjusted | |||||||||
Contract revenues | $ | 731,375 | $ | — | $ | 731,375 | |||||
Costs of earned revenues, excluding depreciation and amortization | 599,573 | — | 599,573 | ||||||||
General and administrative expenses | 62,283 | — | 62,283 | ||||||||
Depreciation and amortization | 43,355 | — | 43,355 | ||||||||
Total | 705,211 | — | 705,211 | ||||||||
Interest expense, net6 | (10,166 | ) | 4,672 | (5,494 | ) | ||||||
Other income, net | 7,711 | — | 7,711 | ||||||||
Income before income taxes | 23,709 | 4,672 | 28,381 | ||||||||
Provision for income taxes7 | 6,478 | 1,275 | 7,753 | ||||||||
Net income | $ | 17,231 | $ | 3,397 | $ | 20,628 | |||||
Diluted earnings per common share | $ | 0.53 | $ | 0.12 | $ | 0.65 | |||||
Shares used in computing diluted earnings per common share9 | 32,408 | (615 | ) | 31,793 |
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | |||||||||||
Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings Per Share | |||||||||||
Unaudited | |||||||||||
(Dollars and shares in thousands, except per share amounts) | |||||||||||
Comparable Prior Periods for Q2 2020 and Q3 2020 Outlook: | Quarter Ended July 28, 2018 | ||||||||||
GAAP | Reconciling Items | Non-GAAP Adjusted | |||||||||
Contract revenues | $ | 799,470 | $ | — | $ | 799,470 | |||||
Costs of earned revenues, excluding depreciation and amortization | 642,376 | — | 642,376 | ||||||||
General and administrative expenses | 64,555 | — | 64,555 | ||||||||
Depreciation and amortization | 44,805 | — | 44,805 | ||||||||
Total | 751,736 | — | 751,736 | ||||||||
Interest expense, net6 | (10,446 | ) | 4,750 | (5,696 | ) | ||||||
Other income, net | 4,156 | — | 4,156 | ||||||||
Income before income taxes | 41,444 | 4,750 | 46,194 | ||||||||
Provision for income taxes7 | 11,544 | 1,314 | 12,858 | ||||||||
Net income | $ | 29,900 | $ | 3,436 | $ | 33,336 | |||||
Diluted earnings per common share | $ | 0.94 | $ | 0.11 | $ | 1.05 | |||||
Shares used in computing diluted earnings per common share9 | 31,954 | (120 | ) | 31,834 | |||||||
Quarter Ended October 27, 2018 | |||||||||||
GAAP | Reconciling Items | Non-GAAP Adjusted | |||||||||
Contract revenues | $ | 848,237 | $ | — | $ | 848,237 | |||||
Costs of earned revenues, excluding depreciation and amortization | 687,164 | — | 687,164 | ||||||||
General and administrative expenses | 68,763 | — | 68,763 | ||||||||
Depreciation and amortization | 45,533 | — | 45,533 | ||||||||
Total | 801,460 | — | 801,460 | ||||||||
Interest expense, net6 | (11,310 | ) | 4,800 | (6,510 | ) | ||||||
Other income, net | 2,817 | — | 2,817 | ||||||||
Income before income taxes | 38,284 | 4,800 | 43,084 | ||||||||
Provision for income taxes7 | 10,454 | 1,321 | 11,775 | ||||||||
Net income | $ | 27,830 | $ | 3,479 | $ | 31,309 | |||||
Diluted earnings per common share | $ | 0.87 | $ | 0.11 | $ | 0.98 | |||||
Shares used in computing diluted earnings per common share | 31,835 | — | 31,835 |
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | ||
Outlook - Non-GAAP Adjusted Diluted Earnings Per Share | ||
Unaudited | ||
Quarter Ended | ||
July 27, 2019 | ||
GAAP Diluted earnings per common share | $0.59 - $0.81 | |
Adjustment: | ||
Addback of after-tax non-cash amortization of debt discount on Notes10 | 0.11 | |
Non-GAAP Adjusted Diluted Earnings per Common Share | $0.70 - $0.92 | |
Shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share (in millions) | 31.8 |
=>?I8MU5C3_6=]F=_T;UTRP?KS'_-?,W"1-,C_K]*
MDPFLL/[P8\P_53_NE\K*3:7O$M!)<0&-$ESB= &M'TMWYJF&UN< XR0 P#<
M23HUK8][MW[B[CH_2*>@4,ZEU%@LZK:#]EQ>14"/I/V[OTG^EM_P?\S3_P )
MH9\\,,#.9^G=S,6(Y#VB/FDCZ%T.KZO4,ZEU)@MZM:/U7%D$4@_G.=_I?]+9
M^9_,4?\ "2LOMOL-]SB^YY]SOGHQH_,:W\U!LOOR;#D7OWW61N<=/DS]UC?S
M&IQ!C^3_ *]ES7-?H4TL_/M?_ *_HTNJ]5P^D83\W,<6UMT:QHE[WGZ%-+/S['_\ F;_T
M:\IZUUSJ/6,X9N412UG]&H!D5,/9G[]EG^&NV_I?^*]-BGP8#D-G2 W/[ P9
M\XQ"AK,[#]I;/5^L]2ZQE'*S"**Q(IQF&?38>V]WY[_\+=M]_P#465>YAVAO
MYH@=]!PG?=O'@#^:@$$F#^*T0 !0#EF1D23J2HN)T\?RKJO\6L_M[(,?\
M:1P/_;E*Y3Q'XKK/\6K'_MS(L(AOV1PGS]2I,S_S4_)EY?\ G8>;Z2DDDLIU
ME))))*4DDDDI22222E+ ^O4GZKY8 )+G4!H )))OH:UK6M]SG.6^J'5NHX^%
M2-[1; &%P+S$N,"\ /#]X<&%C
M:V5T(&)E9VEN/2+ON[\B(&ED/2)7-4TP37!#96AI2'IR95-Z3E1C>FMC.60B
M/SX@/'@Z>&UP;65T82!X;6QN 0ITJH!(L;\:9$*LA4D%2IMS<>_=>ZGJQ!X^OY'^O_MO?NO=996N0/PH
M_']3]?>NO=09J2&H<22HCL NEB 2+&XL?Q]/?C6O6J=2"!:P_I^?I[]UOKDL
MD44+^61(]3JH,C!02?H/5]6/]/?O\'7NFUIJ>KG>DIY8F>$@U)1@2@:]EO;A
MF(]^/7NGA$*H %(10%!/'T'^/X_I[\.O= 95C
M>!HU0AF"(H!Y*_D\CWH<37KW0F[8QE30-,K3*4>&E8QJ@;QU2JP>0-QJ9$.F
M[W/OU>M]+BCA\40%K,=)8"_ LH6_P!0H/\ MS[\.M=)[>)T8R$D Z:^@)']
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MZ?T^GOW7NN_NZD JKD_U0_\1Q[WU[KFE74$V*!1S^E"2/Z?GWKSZ]UFA-47
M#R/9>;)8 M_3Z#CWOK?4@@MK6C]5Q9!%(/YSG?Z7_2V?F?S%'_ DK+[;[#?7J%AH>(B8J4E9:7F)F:
MI*6FIZBIJK2UMK>XN;K$Q<;'R,G*U-76U]C9VN3EYN?HZ>KT]?;W^/GZ$0 "
M 0,"! 0#!00$! 8&!6T! @,1!"$2!3$& "(305$',F$4<0A"@2.1%5*A8A8S
M";$DP=%#!I3'3
L=
ZRLM7AZ:)'GR&4:5AR0DK0+IYX&@Z&/OW7N'41-PK%<3TE;"
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M6LII%LT4JA#=1Z5?ZW7W4&AZKQX\>@76'Q0S2>59?ⅅ>(:D(T:2K(/\
M.:V%[_D<^[@4J1U:I\^G/;&1?%YZD8$B&J=:.H15!NDR*$D)X%TG15XYTMS]
M![U@8ZWZ=/N_<3]O60Y6 TV04I4&[%15H MF'TO+&MK\>I1[\17K=.@\9>!
MQ>XY/Y _K_K^Z]>]/3K&$'U!N/\ $?[#\>_'KU3UP^A_UO?N(ZWQ'7&W-[GG
MWOKU,]>(O;DBPMP!_K_GW[KQ'76D?ZH_[8>]4^76J=?_TM_CW[KW7O?NO=>]
M^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW
M7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^
MZ]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7
MO?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z
M]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O
M?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]
MU[W[KW35G<[A-KX3,;FW-F,5MW;FW<5D,[N#<&=R%)B,)@L)B*2;(97,9C*Y
M":GH,9BL904\D]143R)##"C.[!02'8()[J>&VMH7DN9'"HB@LS,QHJJHJ69B
M0 "230=,W%Q!:03W5U.D5M$A=W
/7@?0=/0A=<*"P8
M#TJ/KQQ[\1\NK XSUFPHACR44:,JI4TLL-2)9-!8LND>DV/DUVX/NC@TZ\>F
MJ:D%)%71.B,\-48AZM$G!#0LH(TNJHPOS[LI&GK8\NA7ZBK9E&;AGDA%% 8:
MCS.)%9)9-4;W=G\<4 CB!M8D\,U'3".92S-'([-%'J"2267GCZ<'W[/GULT-#3H,-]5:5F8,L&3
MIZN&:G@>E\37C2E=2=#/R%DB(Y!^NKW:F!3CUL?/ATAEC995#JRW-P2"0;