(State or other jurisdiction of incorporation) | (Commission file number) | (I.R.S. employer identification no.) | ||||
(Address of principal executive offices) (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||
(d) | Exhibits |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
DYCOM INDUSTRIES, INC. (Registrant) | |
By: | /s/ Ryan F. Urness |
Name: | Ryan F. Urness |
Title: | Vice President, General Counsel and Corporate Secretary |
FOR IMMEDIATE RELEASE | Contact: | Steven E. Nielsen, President and CEO H. Andrew DeFerrari, Senior Vice President and CFO Callie A. Tomasso, Investor Relations (561) 627-7171 |
• | Contract revenues of $737.6 million for the quarter ended January 25, 2020, compared to $748.6 million for the quarter ended January 26, 2019. Contract revenues for the quarter ended January 25, 2020 increased 1.3% on an organic basis after excluding $20.4 million in contract revenues from storm restoration services for the quarter ended January 26, 2019. |
• | Non-GAAP Adjusted EBITDA of $44.5 million, or 6.0% of contract revenues, for the quarter ended January 25, 2020, compared to $59.8 million, or 8.0% of contract revenues, for the quarter ended January 26, 2019. |
• | On a GAAP basis, net loss was $11.2 million, or a loss of $0.35 per common share, for the quarter ended January 25, 2020, compared to net loss of $12.1 million, or a loss of $0.38 per common share, for the quarter ended January 26, 2019. Non‑GAAP Adjusted Net Loss was $7.2 million, or a loss of $0.23 per common share, for the quarter ended January 25, 2020, compared to Non-GAAP Adjusted Net Income of $3.2 million, or $0.10 per Non-GAAP Adjusted Diluted Share, for the quarter ended January 26, 2019. |
• | During the quarter ended January 25, 2020, the Company reduced net debt by approximately $176.3 million by repaying $108.6 million of borrowings on the Senior Credit Facility, purchasing $25.0 million of principal amount of the Company’s 0.75% convertible senior notes due September 2021 (the “Notes”) at a discount for $24.3 million, and increasing cash. As of January 25, 2020, the Company had cash and equivalents of approximately $54.6 million, no outstanding borrowings on its revolving line of credit, $444.4 million of term loans outstanding and $460.0 million principal amount of Notes outstanding. |
• | Contract revenues of $3.340 billion for the fiscal year ended January 25, 2020, compared to $3.128 billion for the fiscal year ended January 26, 2019. Contract revenues for the fiscal year ended January 25, 2020 increased 8.3% on an organic basis after excluding contract revenues from an acquired business that was not owned for the full period in both the current and prior year periods and contract revenues from storm restoration services. Contract revenues from that acquired business were $26.6 million for the fiscal year ended January 25, 2020, compared to $29.6 million for the fiscal year ended January 26, 2019. Contract revenues from storm restoration services were $4.7 million for the fiscal year ended January 25, 2020, compared to $42.9 million for the fiscal year ended January 26, 2019. |
• | Non-GAAP Adjusted EBITDA of $310.0 million, or 9.3% of contract revenues, for the fiscal year ended January 25, 2020, compared to $330.0 million, or 10.5% of contract revenues, for the fiscal year ended January 26, 2019. |
• | On a GAAP basis, net income was $57.2 million, or $1.80 per common share diluted, for the fiscal year ended January 25, 2020, compared to $62.9 million, or $1.97 per common share diluted, for the fiscal year ended January 26, 2019. Non-GAAP Adjusted Net Income was $72.4 million, or $2.27 per common share diluted, for the fiscal |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in thousands) | |||||||
Unaudited | |||||||
January 25, 2020 | January 26, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 54,560 | $ | 128,342 | |||
Accounts receivable, net | 817,245 | 625,258 | |||||
Contract assets | 253,005 | 215,849 | |||||
Inventories | 98,324 | 94,385 | |||||
Income tax receivable | 3,168 | 3,461 | |||||
Other current assets | 31,991 | 29,145 | |||||
Total current assets | 1,258,293 | 1,096,440 | |||||
Property and equipment, net | 376,610 | 424,751 | |||||
Operating lease right-of-use assets1 | 69,596 | — | |||||
Goodwill and other intangible assets, net | 465,694 | 486,874 | |||||
Other | 47,438 | 89,438 | |||||
Total non-current assets | 959,338 | 1,001,063 | |||||
Total assets | $ | 2,217,631 | $ | 2,097,503 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 119,612 | $ | 119,485 | |||
Current portion of debt | 22,500 | 5,625 | |||||
Contract liabilities | 16,332 | 15,125 | |||||
Accrued insurance claims | 38,881 | 39,961 | |||||
Operating lease liabilities1 | 26,581 | — | |||||
Income taxes payable | 344 | 721 | |||||
Other accrued liabilities | 98,775 | 104,074 | |||||
Total current liabilities | 323,025 | 284,991 | |||||
Long-term debt | 844,401 | 867,574 | |||||
Accrued insurance claims - non-current | 56,026 | 68,315 | |||||
Operating lease liabilities - non-current1 | 43,606 | — | |||||
Deferred tax liabilities, net - non-current | 75,527 | 65,963 | |||||
Other liabilities | 6,442 | 6,492 | |||||
Total liabilities | 1,349,027 | 1,293,335 | |||||
Total stockholders’ equity | 868,604 | 804,168 | |||||
Total liabilities and stockholders’ equity | $ | 2,217,631 | $ | 2,097,503 | |||
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Dollars in thousands, except share amounts) | |||||||||||||||
Unaudited | |||||||||||||||
Quarter | Quarter | Fiscal Year | Fiscal Year | ||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||
January 25, 2020 | January 26, 2019 | January 25, 2020 | January 26, 2019 | ||||||||||||
Contract revenues | $ | 737,603 | $ | 748,619 | $ | 3,339,682 | $ | 3,127,700 | |||||||
Costs of earned revenues, excluding depreciation and amortization2 | 633,203 | 633,279 | 2,779,730 | 2,562,392 | |||||||||||
General and administrative3,4 | 60,976 | 73,540 | 254,590 | 269,140 | |||||||||||
Depreciation and amortization | 46,615 | 45,909 | 187,556 | 179,603 | |||||||||||
Total | 740,794 | 752,728 | 3,221,876 | 3,011,135 | |||||||||||
Interest expense, net5 | (12,620 | ) | (12,447 | ) | (50,859 | ) | (44,369 | ) | |||||||
Loss on debt extinguishment6 | (76 | ) | — | (76 | ) | — | |||||||||
Other income, net | 554 | 1,157 | 11,665 | 15,842 | |||||||||||
(Loss) income before income taxes | (15,333 | ) | (15,399 | ) | 78,536 | 88,038 | |||||||||
(Benefit) provision for income taxes7 | (4,144 | ) | (3,345 | ) | 21,321 | 25,131 | |||||||||
Net (loss) income | $ | (11,189 | ) | $ | (12,054 | ) | $ | 57,215 | $ | 62,907 | |||||
(Loss) earnings per common share: | |||||||||||||||
Basic (loss) earnings per common share | $ | (0.35 | ) | $ | (0.38 | ) | $ | 1.82 | $ | 2.01 | |||||
Diluted (loss) earnings per common share | $ | (0.35 | ) | $ | (0.38 | ) | $ | 1.80 | $ | 1.97 | |||||
Shares used in computing (loss) earnings per common share: | |||||||||||||||
Basic | 31,549,417 | 31,359,765 | 31,498,474 | 31,250,376 | |||||||||||
Diluted8,9 | 31,549,417 | 31,359,765 | 31,821,782 | 31,990,168 | |||||||||||
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 (DECLINE) %’s | |||||||||||||||||||||
Contract Revenues - GAAP | Revenues from acquired businesses10 | Revenues from storm restoration services | Non-GAAP - Organic Contract Revenues | GAAP - (Decline) Growth % | Non-GAAP - Organic Growth % | ||||||||||||||||
Quarter Ended January 25, 2020 | $ | 737,603 | $ | — | $ | — | $ | 737,603 | (1.5 | )% | 1.3 | % | |||||||||
Quarter Ended January 26, 2019 | $ | 748,619 | $ | — | $ | (20,409 | ) | $ | 728,210 | ||||||||||||
Fiscal Year Ended January 25, 2020 | $ | 3,339,682 | $ | (26,644 | ) | $ | (4,716 | ) | $ | 3,308,322 | 6.8 | % | 8.3 | % | |||||||
Fiscal Year Ended January 26, 2019 | $ | 3,127,700 | $ | (29,555 | ) | $ | (42,888 | ) | $ | 3,055,257 | |||||||||||
NET (LOSS) INCOME AND NON-GAAP ADJUSTED EBITDA | |||||||||||||||
Quarter | Quarter | Fiscal Year | Fiscal Year | ||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||
January 25, 2020 | January 26, 2019 | January 25, 2020 | January 26, 2019 | ||||||||||||
Reconciliation of net income (loss) to Non-GAAP Adjusted EBITDA: | |||||||||||||||
Net (loss) income | $ | (11,189 | ) | $ | (12,054 | ) | $ | 57,215 | $ | 62,907 | |||||
Interest expense, net | 12,620 | 12,447 | 50,859 | 44,369 | |||||||||||
(Benefit) provision for income taxes | (4,144 | ) | (3,345 | ) | 21,321 | 25,131 | |||||||||
Depreciation and amortization | 46,615 | 45,909 | 187,556 | 179,603 | |||||||||||
Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) | 43,902 | 42,957 | 316,951 | 312,010 | |||||||||||
Gain on sale of fixed assets | (1,094 | ) | (2,192 | ) | (14,879 | ) | (19,390 | ) | |||||||
Stock-based compensation expense | 1,584 | 1,910 | 10,034 | 20,187 | |||||||||||
Loss on debt extinguishment6 | 76 | — | 76 | — | |||||||||||
Charge for (recovery of) accounts receivable and contract assets4 | — | 17,157 | (10,345 | ) | 17,157 | ||||||||||
Q1-20 charge for warranty costs2 | — | — | 8,200 | — | |||||||||||
Non-GAAP Adjusted EBITDA | $ | 44,468 | $ | 59,832 | $ | 310,037 | $ | 329,964 | |||||||
Contract revenues | $ | 737,603 | $ | 748,619 | $ | 3,339,682 | $ | 3,127,700 | |||||||
Non-GAAP Adjusted EBITDA % of contract revenues | 6.0 | % | 8.0 | % | 9.3 | % | 10.5 | % |
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 (LOSS) INCOME, NON-GAAP ADJUSTED NET (LOSS) INCOME, DILUTED (LOSS) EARNINGS PER COMMON SHARE, NON-GAAP ADJUSTED DILUTED (LOSS) EARNINGS PER COMMON SHARE, AND NON-GAAP ADJUSTED DILUTED SHARES | |||||||||||||||
Quarter | Quarter | Fiscal Year | Fiscal Year | ||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||
January 25, 2020 | January 26, 2019 | January 25, 2020 | January 26, 2019 | ||||||||||||
Reconciliation of net (loss) income to Non-GAAP Adjusted Net (Loss) Income: | |||||||||||||||
Net (loss) income | $ | (11,189 | ) | $ | (12,054 | ) | $ | 57,215 | $ | 62,907 | |||||
Pre-Tax Adjustments: | |||||||||||||||
Non-cash amortization of debt discount on Notes | 5,097 | 4,881 | 20,112 | 19,103 | |||||||||||
Q1-20 charge for warranty costs2 | — | — | 8,200 | — | |||||||||||
Charge for (recovery of) accounts receivable and contract assets4 | — | 17,157 | (10,345 | ) | 17,157 | ||||||||||
Impact on stock-based compensation expense from non-cash charge for accounts receivable and contract assets11 | — | (1,851 | ) | — | (1,851 | ) | |||||||||
Tax Adjustments: | |||||||||||||||
Tax expense for the vesting and exercise of share-based awards | 255 | 371 | 1,056 | 371 | |||||||||||
Tax expense related to previous tax year filing | — | — | 1,092 | — | |||||||||||
Tax effect of pre-tax adjustments | (1,402 | ) | (5,257 | ) | (4,941 | ) | (9,168 | ) | |||||||
Total adjustments, net of tax | 3,950 | 15,301 | 15,174 | 25,612 | |||||||||||
Non-GAAP Adjusted Net (Loss) Income | $ | (7,239 | ) | $ | 3,247 | $ | 72,389 | $ | 88,519 | ||||||
Reconciliation of diluted (loss) earnings per common share to Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share: | |||||||||||||||
GAAP diluted (loss) earnings per common share | $ | (0.35 | ) | $ | (0.38 | ) | $ | 1.80 | $ | 1.97 | |||||
Total adjustments, net of tax and dilutive share effect of Notes9 | 0.13 | 0.49 | 0.48 | 0.82 | |||||||||||
Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share | $ | (0.23 | ) | $ | 0.10 | $ | 2.27 | $ | 2.78 | ||||||
Shares used in computing Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share: | |||||||||||||||
GAAP diluted shares | 31,549,417 | 31,359,765 | 31,821,782 | 31,990,168 | |||||||||||
Adjustment for economic benefit of note hedge related to Notes9 | — | — | — | (183,799 | ) | ||||||||||
Adjustment for dilutive common stock equivalents12 | — | 418,695 | — | — | |||||||||||
Non-GAAP Adjusted Diluted Shares9 | 31,549,417 | 31,778,460 | 31,821,782 | 31,806,369 | |||||||||||
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 LOSS PER COMMON SHARE AND NON-GAAP ADJUSTED DILUTED (LOSS) EARNINGS PER COMMON SHARE | |||
Quarter Ending | |||
April 25, 2020 | |||
GAAP diluted loss per common share13 | $(0.20) - $(0.03) | ||
Adjustment: | |||
Addback of after-tax non-cash amortization of debt discount on Notes14 | 0.11 | ||
Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share13 | $(0.09) - $0.08 | ||
• | 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 (loss) 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 (Loss) - GAAP net income (loss) 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 (Loss) per Common Share and Non-GAAP Adjusted Diluted Shares - Non-GAAP Adjusted Net Income (Loss) 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. |
• | Loss on debt extinguishment - The Company incurred a pre-tax charge of approximately $0.1 million for extinguishment of debt in connection with the purchase of $25.0 million aggregate principal amount of its 0.75% convertible senior notes due September 2021 for $24.3 million during the quarter ended January 25, 2020. Management believes excluding the loss on debt extinguishment from the Company’s Non-GAAP financial measures assists investors’ overall understanding of the Company’s current financial performance. The Company believes this type of charge is not indicative of its core operating results. The exclusion of the loss on debt extinguishment from the Company’s Non-GAAP financial measures provides management with a consistent measure for assessing the current and historical financial results. |
• | Charge for (recovery of) previously reserved accounts receivable and contract assets - During the quarter and fiscal year ended January 26, 2019, the Company recognized a pre-tax non-cash charge for accounts receivable and contract assets of $17.2 million related to balances owed from a customer. On February 25, 2019, this customer filed a voluntary petition for reorganization. During the fiscal year ended January 25, 2020, the Company recognized $10.3 million of pre-tax income from the recovery of |
• | Impact on stock-based compensation expense from non-cash charge for accounts receivable and contract assets - The Company excludes the impact on stock-based compensation expense from the non-cash charge for accounts receivable and contract assets from its Non-GAAP financial measures because the Company believes it is not indicative of its underlying results or ongoing operations. |
• | Q1-20 charge for warranty costs - During the fiscal year ended January 25, 2020, the Company recorded an $8.2 million pre-tax charge in the first quarter 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 amounts from the Company’s Non-GAAP financial measures provides management with a more consistent measure for assessing financial results. |
• | Tax impact of previous tax year filing - During the fiscal year ended January 25, 2020, the Company recognized an income tax expense of $1.1 million in the second quarter on a previous tax year filing. The Company has excluded this impact because the Company believes it is not indicative of the Company’s underlying results or ongoing operations. |
• | 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. |
• | 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 (decline) is calculated as the percentage change in Non-GAAP Organic Contract Revenues over those of the comparable prior year periods. Management believes organic growth (decline) is a helpful measure for comparing the Company’s revenue performance with prior periods. |
• | Non-GAAP Adjusted EBITDA - net income (loss) 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 (Loss) - GAAP net income (loss) 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 (Loss) per Common Share and Non-GAAP Adjusted Diluted Shares - Non-GAAP Adjusted Net Income (Loss) 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 Company’s 0.75% convertible senior notes due September 2021 (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 (Loss) per Common Share excludes dilution from the Notes. Management believes that the calculation of Non-GAAP Adjusted Diluted shares to reflect the 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. |
• | Loss on debt extinguishment - The Company incurred a pre-tax charge of approximately $0.1 million for extinguishment of debt in connection with the purchase of $25.0 million aggregate principal amount of its 0.75% convertible senior notes due September 2021 for $24.3 million during the quarter ended January 25, 2020. Management believes excluding the loss on debt extinguishment from the Company’s Non-GAAP financial measures assists investors’ overall understanding of the Company’s current financial performance. The Company believes this type of charge is not indicative of its core operating results. The exclusion of the loss on debt extinguishment from the Company’s Non-GAAP financial measures provides management with a consistent measure for assessing the current and historical financial results. |
• | Charge for (recovery of) previously reserved accounts receivable and contract assets - During the quarter and fiscal year ended January 26, 2019, the Company recognized a pre-tax non-cash charge for accounts receivable and contract assets of $17.2 million related to balances owed from a customer. On February 25, 2019, this customer filed a voluntary petition for reorganization. During the fiscal year ended January 25, 2020, the Company recognized $10.3 million of pre-tax income from the recovery of previously reserved accounts receivable and contract assets in the first quarter based on collections from a |
• | Impact on stock-based compensation expense from non-cash charge for accounts receivable and contract assets - The Company excludes the impact on stock-based compensation expense from the non-cash charge for accounts receivable and contract assets from its Non-GAAP financial measures because the Company believes it is not indicative of its underlying results or ongoing operations. |
• | Q1-20 charge for warranty costs - During the fiscal year ended January 25, 2020, the Company recorded an $8.2 million pre-tax charge in the first quarter 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 amounts from the Company’s Non-GAAP financial measures provides management with a more consistent measure for assessing financial results. |
• | Tax impact of previous tax year filing - During the fiscal year ended January 25, 2020, the Company recognized an income tax expense of $1.1 million in the second quarter on a previous tax year filing. The Company has excluded this impact because the Company believes it is not indicative of the Company’s underlying results or ongoing operations. |
• | 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 | Non-GAAP - Organic Revenues | Growth (Decline)% | ||||||||||||||||||
Quarter Ended | GAAP % | Non-GAAP - Organic % | ||||||||||||||||||||
January 25, 2020 | $ | 737.6 | $ | — | $ | — | $ | 737.6 | (1.5 | )% | 1.3 | % | ||||||||||
January 26, 2019 | $ | 748.6 | $ | — | $ | (20.4 | ) | $ | 728.2 | |||||||||||||
October 26, 2019 | $ | 884.1 | $ | — | $ | — | $ | 884.1 | 4.2 | % | 4.7 | % | ||||||||||
October 27, 2018 | $ | 848.2 | $ | — | $ | (3.9 | ) | $ | 844.4 | |||||||||||||
July 27, 2019 | $ | 884.2 | $ | — | $ | — | $ | 884.2 | 10.6 | % | 11.1 | % | ||||||||||
July 28, 2018 | $ | 799.5 | $ | — | $ | (3.8 | ) | $ | 795.7 | |||||||||||||
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 |
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 % | ||||||||||||||||||||
Verizon | ||||||||||||||||||||||
January 25, 2020 | $ | 161.3 | $ | — | $ | — | $ | 161.3 | 3.3 | % | 3.3 | % | ||||||||||
January 26, 2019 | $ | 156.3 | $ | — | $ | — | $ | 156.2 | ||||||||||||||
CenturyLink | ||||||||||||||||||||||
January 25, 2020 | $ | 135.1 | $ | — | $ | — | $ | 135.1 | 23.3 | % | 31.1 | % | ||||||||||
January 26, 2019 | $ | 109.6 | $ | — | $ | (6.5 | ) | $ | 103.1 | |||||||||||||
Windstream | ||||||||||||||||||||||
January 25, 2020 | $ | 38.8 | $ | — | $ | — | $ | 38.8 | 31.5 | % | 45.9 | % | ||||||||||
January 26, 2019 | $ | 29.5 | $ | — | $ | (2.9 | ) | $ | 26.6 | |||||||||||||
Top 5 Customers2 | ||||||||||||||||||||||
January 25, 2020 | $ | 569.4 | $ | — | $ | — | $ | 569.4 | (4.5 | )% | (1.2 | )% | ||||||||||
January 26, 2019 | $ | 596.3 | $ | — | $ | (20.2 | ) | $ | 576.1 | |||||||||||||
All Other Customers (excluding Top 5 Customers) | ||||||||||||||||||||||
January 25, 2020 | $ | 168.2 | $ | — | $ | — | $ | 168.2 | 10.4 | % | 10.6 | % | ||||||||||
January 26, 2019 | $ | 152.3 | $ | — | $ | (0.2 | ) | $ | 152.1 | |||||||||||||
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | |||||||
Non-GAAP Adjusted EBITDA | |||||||
Unaudited | |||||||
(Dollars in thousands) | |||||||
Quarter Ended | |||||||
January 25, 2020 | January 26, 2019 | ||||||
Net (loss) income | $ | (11,189 | ) | $ | (12,054 | ) | |
Interest expense, net | 12,620 | 12,447 | |||||
Benefit from income taxes | (4,144 | ) | (3,345 | ) | |||
Depreciation and amortization | 46,615 | 45,909 | |||||
Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) | 43,902 | 42,957 | |||||
Gain on sale of fixed assets | (1,094 | ) | (2,192 | ) | |||
Stock-based compensation expense | 1,584 | 1,910 | |||||
Loss on debt extinguishment3 | 76 | — | |||||
Charge for (recovery of) accounts receivable and contract assets4 | — | 17,157 | |||||
Non-GAAP Adjusted EBITDA | $ | 44,468 | $ | 59,832 | |||
Contract revenues | $ | 737,603 | $ | 748,619 | |||
Non-GAAP Adjusted EBITDA % of contract revenues | 6.0 | % | 8.0 | % | |||
Comparable Prior Periods for Q1 2021 and Q2 2021 Outlook: | Quarter Ended | ||||||
April 27, 2019 | July 27, 2019 | ||||||
Net income | $ | 14,279 | $ | 29,896 | |||
Interest expense, net | 12,233 | 12,878 | |||||
Provision for income taxes | 6,199 | 12,710 | |||||
Depreciation and amortization | 46,341 | 47,244 | |||||
Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) | 79,052 | 102,728 | |||||
Gain on sale of fixed assets | (6,738 | ) | (4,806 | ) | |||
Stock-based compensation expense | 3,479 | 2,277 | |||||
Charge for (recovery of) accounts receivable and contract assets4 | (10,345 | ) | — | ||||
Charge for warranty costs5 | 8,200 | — | |||||
Non-GAAP Adjusted EBITDA | $ | 73,648 | $ | 100,199 | |||
Contract revenues | $ | 833,743 | $ | 884,221 | |||
Non-GAAP Adjusted EBITDA % of contract revenues | 8.8 | % | 11.3 | % | |||
Non-GAAP Adjusted EBITDA % of contract revenues, excluding contract modification6 | 10.2 | % |
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | |||||||||||
Non-GAAP Adjusted Net (Loss) Income and Non-GAAP Adjusted Diluted (Loss) Earnings Per Share | |||||||||||
Unaudited | |||||||||||
(Dollars and shares in thousands, except per share amounts) | |||||||||||
Quarter Ended January 25, 2020 | |||||||||||
GAAP | Reconciling Items | Non-GAAP Adjusted | |||||||||
Contract revenues | $ | 737,603 | $ | — | $ | 737,603 | |||||
Costs of earned revenues, excluding depreciation and amortization | 633,203 | — | 633,203 | ||||||||
General and administrative | 60,976 | — | 60,976 | ||||||||
Depreciation and amortization | 46,615 | — | 46,615 | ||||||||
Total | 740,794 | — | 740,794 | ||||||||
Interest expense, net7 | (12,620 | ) | 5,097 | (7,523 | ) | ||||||
Loss on debt extinguishment3 | (76 | ) | (76 | ) | |||||||
Other income, net | 554 | — | 554 | ||||||||
Loss before income taxes | (15,333 | ) | 5,097 | (10,236 | ) | ||||||
Benefit from income taxes8 | (4,144 | ) | 1,147 | (2,997 | ) | ||||||
Net loss | $ | (11,189 | ) | $ | 3,950 | $ | (7,239 | ) | |||
Loss per common share | $ | (0.35 | ) | $ | 0.13 | $ | (0.23 | ) | |||
Shares used in computing loss per common share9 | 31,549 | — | 31,549 | ||||||||
Quarter Ended January 26, 2019 | |||||||||||
GAAP | Reconciling Items | Non-GAAP Adjusted | |||||||||
Contract revenues | $ | 748,619 | $ | — | $ | 748,619 | |||||
Costs of earned revenues, excluding depreciation and amortization | 633,279 | — | 633,279 | ||||||||
General and administrative4 | 73,540 | (15,306 | ) | 58,234 | |||||||
Depreciation and amortization | 45,909 | — | 45,909 | ||||||||
Total | 752,728 | (15,306 | ) | 737,422 | |||||||
Interest expense, net7 | (12,447 | ) | 4,881 | (7,566 | ) | ||||||
Other income, net | 1,157 | — | 1,157 | ||||||||
(Loss) income before income taxes | (15,399 | ) | 20,187 | 4,788 | |||||||
(Benefit) provision for income taxes8 | (3,345 | ) | 4,886 | 1,541 | |||||||
Net (loss) income | $ | (12,054 | ) | $ | 15,301 | $ | 3,247 | ||||
Diluted (loss) earnings per common share | $ | (0.38 | ) | $ | 0.49 | $ | 0.10 | ||||
Shares used in computing diluted (loss) earnings per common share9 | 31,360 | 419 | 31,778 |
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 Q1 2021 and Q2 2021 Outlook: | Quarter Ended April 27, 2019 | ||||||||||
GAAP | Reconciling Items | Non-GAAP Adjusted | |||||||||
Contract revenues | $ | 833,743 | $ | — | $ | 833,743 | |||||
Costs of earned revenues, excluding depreciation and amortization5 | 701,767 | (8,200 | ) | 693,567 | |||||||
General and administrative4 | 58,622 | 10,345 | 68,967 | ||||||||
Depreciation and amortization | 46,341 | — | 46,341 | ||||||||
Total | 806,730 | 2,145 | 808,875 | ||||||||
Interest expense, net7 | (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 taxes8 | 6,199 | 128 | 6,327 | ||||||||
Net income | $ | 14,279 | $ | 2,659 | $ | 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 July 27, 2019 | |||||||||||
GAAP | Reconciling Items | Non-GAAP Adjusted | |||||||||
Contract revenues | $ | 884,221 | $ | — | $ | 884,221 | |||||
Costs of earned revenues, excluding depreciation and amortization | 720,382 | — | 720,382 | ||||||||
General and administrative | 65,117 | — | 65,117 | ||||||||
Depreciation and amortization | 47,244 | — | 47,244 | ||||||||
Total | 832,743 | — | 832,743 | ||||||||
Interest expense, net7 | (12,878 | ) | 5,015 | (7,863 | ) | ||||||
Other income, net | 4,006 | — | 4,006 | ||||||||
Income before income taxes | 42,606 | 5,015 | 47,621 | ||||||||
Provision for income taxes8,10 | 12,710 | 287 | 12,997 | ||||||||
Net income | $ | 29,896 | $ | 4,728 | $ | 34,624 | |||||
Diluted earnings per common share | $ | 0.94 | $ | 0.15 | $ | 1.09 | |||||
Shares used in computing diluted earnings per common share | 31,820 | — | 31,820 |
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures | ||
Outlook - Loss per common share and Non-GAAP Adjusted Diluted (Loss) Earnings Per Common Share | ||
Unaudited | ||
Quarter Ending | ||
April 25, 2020 | ||
GAAP loss per common share11 | $(0.20) - $(0.03) | |
Adjustment: | ||
Addback of after-tax non-cash amortization of debt discount on Notes12 | 0.11 | |
Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share11 | $(0.09) - $0.08 |
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