(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices, including zip code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
PART I - FINANCIAL INFORMATION | ||||||||
PART II - OTHER INFORMATION | ||||||||
SIGNATURES | ||||||||
April 27, 2024 | January 27, 2024 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | $ | |||||||||
Accounts receivable, net (Note 6) | |||||||||||
Contract assets | |||||||||||
Inventories | |||||||||||
Income tax receivable | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Current portion of debt | |||||||||||
Contract liabilities | |||||||||||
Accrued insurance claims | |||||||||||
Operating lease liabilities | |||||||||||
Income taxes payable | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Accrued insurance claims - non-current | |||||||||||
Operating lease liabilities - non-current | |||||||||||
Deferred tax liabilities, net - non-current | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
COMMITMENTS AND CONTINGENCIES (Note 20) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ||||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ | |||||||||
See notes to the condensed consolidated financial statements. |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Contract revenues | $ | $ | |||||||||
Costs of earned revenues, excluding depreciation and amortization | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Total | |||||||||||
Interest expense, net | ( | ( | |||||||||
Other income, net | |||||||||||
Income before income taxes | |||||||||||
Provision for income taxes | |||||||||||
Net income | $ | $ | |||||||||
Earnings per common share: | |||||||||||
Basic earnings per common share | $ | $ | |||||||||
Diluted earnings per common share | $ | $ | |||||||||
Shares used in computing earnings per common share: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
See notes to the condensed consolidated financial statements. |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Net income | $ | $ | |||||||||
Foreign currency translation gains, net of tax | |||||||||||
Disposal of foreign entity | |||||||||||
Comprehensive income | $ | $ | |||||||||
See notes to the condensed consolidated financial statements. |
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
April 27, 2024 | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances as of January 27, 2024 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Stock options exercised | — | — | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of tax withholdings | ( | — | ( | ( | |||||||||||||||||||||||||||||||
Repurchase of common stock, including applicable excise tax | ( | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||
Disposal of foreign entity | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balances as of April 27, 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
April 29, 2023 | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances as of January 28, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Stock options exercised | — | — | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of tax withholdings | ( | — | ( | ( | |||||||||||||||||||||||||||||||
Repurchase of common stock, including applicable excise tax | ( | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balances as of April 29, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
See notes to the condensed consolidated financial statements. |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash lease expense | |||||||||||
Deferred income tax provision | |||||||||||
Stock-based compensation | |||||||||||
(Recovery of) provision for bad debt, net | ( | ||||||||||
Gain on sale of fixed assets | ( | ( | |||||||||
Amortization of debt issuance costs and other | |||||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ( | |||||||||
Contract assets, net | ( | ||||||||||
Other current assets and inventories | ( | ( | |||||||||
Other assets | |||||||||||
Income taxes payable/receivable | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Accrued liabilities, insurance claims, operating lease liabilities, and other liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sale of assets | |||||||||||
Cash paid for acquisitions, net of cash acquired | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from borrowings on senior credit agreement, including term loan | |||||||||||
Principal payments on senior credit agreement, including term loan | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Exercise of stock options | |||||||||||
Restricted stock tax withholdings | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period (Note 8) | |||||||||||
Cash, cash equivalents and restricted cash at end of period (Note 8) | $ | $ |
Supplemental disclosure of other cash flow activities and non-cash investing and financing activities: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for taxes, net | $ | $ | |||||||||
Purchases of capital assets included in accounts payable or other accrued liabilities at period end | $ | $ | |||||||||
See notes to the condensed consolidated financial statements. |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Net income available to common stockholders (numerator) | $ | $ | |||||||||
Weighted-average number of common shares (denominator) | |||||||||||
Basic earnings per common share | $ | $ | |||||||||
Weighted-average number of common shares | |||||||||||
Potential shares of common stock arising from stock options, and unvested restricted share units | |||||||||||
Total shares-diluted (denominator) | |||||||||||
Diluted earnings per common share | $ | $ | |||||||||
Anti-dilutive weighted shares excluded from the calculation of earnings per common share | |||||||||||
Assets | |||||
Cash and equivalents | $ | ||||
Accounts receivable | |||||
Property and equipment, net | |||||
Goodwill | |||||
Intangible assets, net | |||||
Total assets | |||||
Liabilities | |||||
Accounts payable | |||||
Other accrued liabilities | |||||
Total liabilities | |||||
Net Assets Acquired | $ |
Estimated Useful Life (in years) | Intangible Assets Acquired | ||||||||||
Customer relationships | $ | ||||||||||
Backlog intangibles | |||||||||||
Trade names | |||||||||||
Total intangible assets acquired | $ |
Assets | |||||
Cash and equivalents | $ | ||||
Accounts receivable | |||||
Other current assets | |||||
Property and equipment, net | |||||
Goodwill | |||||
Intangible assets, net | |||||
Other assets | |||||
Total assets | |||||
Liabilities | |||||
Accounts payable | |||||
Other accrued liabilities | |||||
Income taxes payable | |||||
Total liabilities | |||||
Net Assets Acquired | $ |
Estimated Useful Life (in years) | Intangible Assets Acquired | ||||||||||
Customer relationships | $ | ||||||||||
Backlog intangibles | |||||||||||
Trade names | |||||||||||
Total intangible assets acquired | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Trade accounts receivable | $ | $ | |||||||||
Unbilled accounts receivable | |||||||||||
Retainage | |||||||||||
Total | |||||||||||
Less: allowance for doubtful accounts | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Allowance for doubtful accounts at beginning of period | $ | $ | |||||||||
(Recovery of) provision for bad debt | ( | ||||||||||
Allowance for doubtful accounts at end of period | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Contract assets | $ | $ | |||||||||
Contract liabilities | |||||||||||
Contract assets, net | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Prepaid expenses | $ | $ | |||||||||
Deposits and other current assets | |||||||||||
Restricted cash | |||||||||||
Receivables on equipment sales | |||||||||||
Other current assets | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Long-term contract assets | $ | $ | |||||||||
Deferred financing costs | |||||||||||
Restricted cash | |||||||||||
Insurance recoveries/receivables for accrued insurance claims | |||||||||||
Other non-current deposits and assets | |||||||||||
Other assets | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Cash and equivalents | $ | $ | |||||||||
Restricted cash included in: | |||||||||||
Other current assets | |||||||||||
Other assets (long-term) | |||||||||||
Cash equivalents and restricted cash | $ | $ |
Estimated Useful Lives (Years) | April 27, 2024 | January 27, 2024 | |||||||||||||||
Land | — | $ | $ | ||||||||||||||
Buildings | |||||||||||||||||
Leasehold improvements | |||||||||||||||||
Vehicles | |||||||||||||||||
Equipment and machinery | |||||||||||||||||
Computer hardware and software | |||||||||||||||||
Office furniture and equipment | |||||||||||||||||
Total | |||||||||||||||||
Less: accumulated depreciation | ( | ( | |||||||||||||||
Property and equipment, net | $ | $ |
Goodwill | Accumulated Impairment Losses | Total | |||||||||||||||
Balance as of January 27, 2024 | $ | $ | ( | $ | |||||||||||||
Goodwill from fiscal 2025 acquisition | — | ||||||||||||||||
Balance as of April 27, 2024 | $ | $ | ( | $ |
April 27, 2024 | January 27, 2024 | ||||||||||||||||||||||||||||||||||||||||
Weighted Average Remaining Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Intangible Assets, Net | Gross Carrying Amount | Accumulated Amortization | Intangible Assets, Net | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Trade names, finite | |||||||||||||||||||||||||||||||||||||||||
Trade name, indefinite | Indefinite | ||||||||||||||||||||||||||||||||||||||||
Contract backlog | |||||||||||||||||||||||||||||||||||||||||
Non-compete agreements | |||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Accrued insurance claims - current | $ | $ | |||||||||
Accrued insurance claims - non-current | |||||||||||
Accrued insurance claims | $ | $ | |||||||||
Insurance recoveries/receivables: | |||||||||||
Non-current (included in Other assets) | |||||||||||
Insurance recoveries/receivables | $ | $ |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Lease cost under long-term operating leases | $ | $ | |||||||||
Lease cost under short-term operating leases | |||||||||||
Variable lease cost under short-term and long-term operating leases(1) | |||||||||||
Total lease cost | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Weighted average remaining lease term | |||||||||||
Weighted average discount rate | % | % |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ | |||||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | $ |
Fiscal Year | Amount | |||||||
Remainder of 2025 | $ | |||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029 | ||||||||
2030 | ||||||||
Thereafter | ||||||||
Total lease payments | ||||||||
Less: imputed interest | ( | |||||||
Total | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Accrued payroll and related taxes | $ | $ | |||||||||
Accrued employee benefit and incentive plan costs | |||||||||||
Accrued construction costs | |||||||||||
Other current liabilities | |||||||||||
Other accrued liabilities | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Credit Agreement - Revolving facility (matures April 2026) | $ | $ | |||||||||
Credit Agreement - Term loan facility (matures April 2026) | |||||||||||
Less: current portion | ( | ( | |||||||||
Long-term debt | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Principal amount of term loan | $ | $ | |||||||||
Less: Debt issuance costs | ( | ( | |||||||||
Net carrying amount of term loan | $ | $ |
Borrowings - Term SOFR Loans | |||||
Borrowings - Base Rate Loans | |||||
Unused Revolver Commitment | |||||
Standby Letters of Credit | |||||
Commercial Letters of Credit |
Weighted Average Rate End of Period | |||||||||||
April 27, 2024 | January 27, 2024 | ||||||||||
Borrowings - Term loan facility | |||||||||||
Borrowings - Revolving facility(1) | |||||||||||
Standby Letters of Credit | |||||||||||
Unused Revolver Commitment |
April 27, 2024 | January 27, 2024 | ||||||||||
Principal amount of 2029 Notes | $ | $ | |||||||||
Less: Debt issuance costs | ( | ( | |||||||||
Net carrying amount of 2029 Notes | $ | $ |
April 27, 2024 | January 27, 2024 | ||||||||||
Fair value of principal amount of 2029 Notes | $ | $ | |||||||||
Less: Debt issuance costs | ( | ( | |||||||||
Fair value of 2029 Notes | $ | $ |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Gain on sale of fixed assets | $ | $ | |||||||||
Miscellaneous expense, net | ( | ( | |||||||||
Other income, net | $ | $ |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Stock-based compensation | $ | $ | |||||||||
Income tax effect of stock-based compensation | $ | $ |
Stock Options | |||||||||||
Shares | Weighted Average Exercise Price | ||||||||||
Outstanding as of January 27, 2024 | $ | ||||||||||
Granted | $ | ||||||||||
Options exercised | ( | $ | |||||||||
Outstanding as of April 27, 2024 | $ | ||||||||||
Exercisable options as of April 27, 2024 | $ |
Restricted Stock | |||||||||||||||||||||||
RSUs | Performance RSUs | ||||||||||||||||||||||
Share Units | Weighted Average Grant Date Fair Value | Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding as of January 27, 2024 | $ | $ | |||||||||||||||||||||
Granted | $ | $ | |||||||||||||||||||||
Share units vested | ( | $ | ( | $ | |||||||||||||||||||
Forfeited or canceled | ( | $ | ( | $ | |||||||||||||||||||
Outstanding as of April 27, 2024 | $ | $ |
For the Three Months Ended | |||||||||||||||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
AT&T Inc. | $ | $ | |||||||||||||||||||||
Lumen Technologies | |||||||||||||||||||||||
Comcast Corporation | |||||||||||||||||||||||
Total other customers combined | |||||||||||||||||||||||
Total contract revenues | $ | $ |
For the Three Months Ended | |||||||||||||||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
Telecommunications | $ | $ | |||||||||||||||||||||
Underground facility locating | |||||||||||||||||||||||
Electrical and gas utilities and other | |||||||||||||||||||||||
Total contract revenues | $ | $ |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
AT&T Inc. | 18.9% | 21.5% | |||||||||
Lumen Technologies | 13.7% | 13.0% | |||||||||
Comcast Corporation | 9.2% | 11.5% | |||||||||
Charter Communications, Inc. | 7.8% | 2.1% | |||||||||
Verizon Communications Inc. | 6.8% | 9.6% | |||||||||
Brightspeed Total | 5.4% | 3.7% | |||||||||
Frontier Communications Corporation | 5.1% | 9.9% |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Multi-year master service agreements | 78.1 | % | 81.8 | % | |||||||
Other long-term contracts | 11.4 | 9.7 | |||||||||
Total long-term contracts | 89.5 | % | 91.5 | % |
For the Three Months Ended | |||||||||||||||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||||||||||||||
Contract revenues | $ | 1,142.4 | 100.0 | % | $ | 1,045.5 | 100.0 | % | |||||||||||||||
Expenses: | |||||||||||||||||||||||
Costs of earned revenues, excluding depreciation and amortization | 921.6 | 80.7 | 853.4 | 81.6 | |||||||||||||||||||
General and administrative | 94.6 | 8.3 | 82.4 | 7.9 | |||||||||||||||||||
Depreciation and amortization | 45.2 | 4.0 | 37.3 | 3.6 | |||||||||||||||||||
Total | 1,061.4 | 92.9 | 973.0 | 93.1 | |||||||||||||||||||
Interest expense, net | (12.8) | (1.1) | (11.4) | (1.1) | |||||||||||||||||||
Other income, net | 9.3 | 0.8 | 5.0 | 0.5 | |||||||||||||||||||
Income before income taxes | 77.4 | 6.8 | 66.1 | 6.3 | |||||||||||||||||||
Provision for income taxes | 14.9 | 1.3 | 14.6 | 1.4 | |||||||||||||||||||
Net income | $ | 62.6 | 5.5 | % | $ | 51.5 | 4.9 | % |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Income tax provision | $ | 14.9 | $ | 14.6 | |||||||
Effective income tax rate | 19.2 | % | 22.1 | % |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Net income | $ | 62,554 | $ | 51,523 | |||||||
Interest expense, net | 12,834 | 11,372 | |||||||||
Provision for income taxes | 14,890 | 14,576 | |||||||||
Depreciation and amortization | 45,205 | 37,271 | |||||||||
Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) | 135,483 | 114,742 | |||||||||
Gain on sale of fixed assets | (12,404) | (7,816) | |||||||||
Stock-based compensation expense | 7,823 | 6,620 | |||||||||
Non-GAAP Adjusted EBITDA | $ | 130,902 | $ | 113,546 | |||||||
Non-GAAP Adjusted EBITDA % of contract revenues | 11.5 | % | 10.9 | % |
For the Three Months Ended | |||||||||||
April 27, 2024 | April 29, 2023 | ||||||||||
Net cash flows: | |||||||||||
Used in operating activities | $ | (37.4) | $ | (85.1) | |||||||
Used in investing activities | $ | (42.2) | $ | (33.6) | |||||||
Provided by (used in) financing activities | $ | 4.7 | $ | (34.1) |
Borrowings - Term SOFR Loans | 1.25% - 2.00% plus Term SOFR | ||||
Borrowings - Base Rate Loans | 0.25% - 1.00% plus Base rate(1) | ||||
Unused Revolver Commitment | 0.20% - 0.40% | ||||
Standby Letters of Credit | 1.25% - 2.00% | ||||
Commercial Letters of Credit | 0.625% - 1.00% |
Weighted Average Rate End of Period | |||||||||||
April 27, 2024 | January 27, 2024 | ||||||||||
Borrowings - Term loan facility | 7.05% | 7.06% | |||||||||
Borrowings - Revolving facility(1) | 8.18% | —% | |||||||||
Standby Letters of Credit | 1.50% | 1.63% | |||||||||
Unused Revolver Commitment | 0.25% | 0.30% |
Due less than 1 Year | Due Thereafter | Total | |||||||||||||||
2029 Notes | $ | — | $ | 500,000 | $ | 500,000 | |||||||||||
Credit agreement – revolving facility | 55,000 | — | 55,000 | ||||||||||||||
Credit agreement – term loan facility | 17,500 | 293,125 | 310,625 | ||||||||||||||
Fixed interest payments on long-term debt(1) | 22,500 | 90,000 | 112,500 | ||||||||||||||
Obligations under long-term operating leases(2) | 36,095 | 50,121 | 86,215 | ||||||||||||||
Obligations under short-term operating leases(3) | 2,016 | — | 2,016 | ||||||||||||||
Employment agreements | 32,611 | 6,029 | 38,640 | ||||||||||||||
Purchase and other contractual obligations(4) | 146,479 | 8,703 | 155,182 | ||||||||||||||
Total | $ | 312,201 | $ | 947,978 | $ | 1,260,178 |
April 27, 2024 | January 27, 2024 | ||||||||||
Principal amount of 2029 Notes | $ | 500,000 | $ | 500,000 | |||||||
Less: Debt issuance costs | (4,591) | (4,820) | |||||||||
Net carrying amount of 2029 Notes | $ | 495,409 | $ | 495,180 |
April 27, 2024 | January 27, 2024 | ||||||||||
Fair value of principal amount of 2029 Notes | $ | 459,000 | $ | 462,450 | |||||||
Less: Debt issuance costs | (4,591) | (4,820) | |||||||||
Fair value of 2029 Notes | $ | 454,409 | $ | 457,630 |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
January 28, 2024 - February 24, 2024 | — | $ | — | — | (3) | |||||||||||||||||||||
February 25, 2024 - March 23, 2024 | — | $ | — | — | (3) | |||||||||||||||||||||
March 24, 2024 - April 27, 2024 | 210,000 | $ | 141.84 | — | (3) |
Exhibit Number | |||||
10.1* | Employment Agreement between Dycom Industries, Inc. and Heather M. Floyd, dated March 25, 2024 (incorporated by reference to exhibit 10.1 to Dycom Industries, Inc.’s Current Report on Form 8-K filed with the SEC on March 26, 2024). | ||||
101 + | The following materials from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended April 27, 2024, formatted in Inline XBRL: (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Operations; (iii) the Condensed Consolidated Statements of Comprehensive Income; (iv) the Condensed Consolidated Statements of Stockholders’ Equity; (v) the Condensed Consolidated Statements of Cash Flows; and (vi) the Notes to Condensed Consolidated Financial Statements. | ||||
104 + | The cover page from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended April 27, 2024, formatted in Inline XBRL (included as Exhibit 101) | ||||
+ | Filed herewith | ||||
++ | Furnished herewith | ||||
* | Indicates a management contract or compensatory plan or arrangement. |
DYCOM INDUSTRIES, INC. | ||||||||||||||
Registrant | ||||||||||||||
Date: | May 23, 2024 | /s/ Steven E. Nielsen | ||||||||||||
Name: Title: | Steven E. Nielsen President and Chief Executive Officer | |||||||||||||
Date: | May 23, 2024 | /s/ H. Andrew DeFerrari | ||||||||||||
Name: Title: | H. Andrew DeFerrari Senior Vice President and Chief Financial Officer |
Date: | May 23, 2024 | ||||
/s/ Steven E. Nielsen | |||||
Steven E. Nielsen | |||||
President and Chief Executive Officer |
Date: | May 23, 2024 | ||||
/s/ H. Andrew DeFerrari | |||||
H. Andrew DeFerrari | |||||
Senior Vice President and Chief Financial Officer |
Date: | May 23, 2024 | ||||
/s/ Steven E. Nielsen | |||||
Steven E. Nielsen | |||||
President and Chief Executive Officer |
Date: | May 23, 2024 | ||||
/s/ H. Andrew DeFerrari | |||||
H. Andrew DeFerrari | |||||
Senior Vice President and Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.33 | $ 0.33 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 29,091,158 | 29,091,278 |
Common stock, shares outstanding (in shares) | 29,091,158 | 29,091,278 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Apr. 27, 2024 |
Apr. 29, 2023 |
|
Income Statement [Abstract] | ||
Contract revenues | $ 1,142,423 | $ 1,045,474 |
Costs of earned revenues, excluding depreciation and amortization | 921,636 | 853,366 |
General and administrative | 94,555 | 82,357 |
Depreciation and amortization | 45,205 | 37,271 |
Total | 1,061,396 | 972,994 |
Interest expense, net | (12,834) | (11,372) |
Other income, net | 9,251 | 4,991 |
Income before income taxes | 77,444 | 66,099 |
Provision for income taxes | 14,890 | 14,576 |
Net income | $ 62,554 | $ 51,523 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 2.15 | $ 1.75 |
Diluted earnings per common share (in dollars per share) | $ 2.12 | $ 1.73 |
Shares used in computing earnings per common share: | ||
Basic (in shares) | 29,113,943 | 29,369,185 |
Diluted (in shares) | 29,551,709 | 29,782,251 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Apr. 27, 2024 |
Apr. 29, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 62,554 | $ 51,523 |
Disposal of foreign entity | 0 | 225 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 1,547 | 0 |
Comprehensive income | $ 64,101 | $ 51,748 |
Basis of Presentation |
3 Months Ended |
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Apr. 27, 2024 | |
Basis of Presentation [Abstract] | |
Basis of Accounting | Basis of Presentation Dycom Industries, Inc. (“Dycom”, the “Company”, “we”, “our”, or “us”) is a leading provider of specialty contracting services throughout the United States. These services include program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers. Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. Dycom supplies the labor, tools, and equipment necessary to provide these services to its customers. Accounting Period. Our fiscal year ends on the last Saturday in January. As a result, each fiscal year consists of either 52 weeks or 53 weeks of operations (with the additional week of operations occurring in the fourth quarter). Fiscal 2025 and fiscal 2024 each consist of 52 weeks of operations. The next 53 week fiscal period will occur in the fiscal year ending January 31, 2026. The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries, all of which are wholly-owned, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for fiscal 2024, filed with the SEC on March 1, 2024. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included. This includes all normal and recurring adjustments and elimination of intercompany accounts and transactions. Operating results for the interim period are not necessarily indicative of the results expected for any subsequent interim or annual period. Segment Information. The Company operates in one reportable segment. Its services are provided by its operating segments on a decentralized basis. Each operating segment consists of a subsidiary (or in certain instances, the combination of two or more subsidiaries), whose results are regularly reviewed by the Company’s Chief Executive Officer, the chief operating decision maker. All of the Company’s operating segments have been aggregated into one reportable segment based on their similar economic characteristics, nature of services and production processes, type of customers, and service distribution methods.
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Significant Accounting Policies and Estimates |
3 Months Ended |
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Apr. 27, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Estimates | Significant Accounting Policies and Estimates There have been no material changes to the Company’s significant accounting policies and critical accounting estimates described in the Company’s Annual Report on Form 10-K for fiscal 2024. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. These estimates are based on our historical experience and management’s understanding of current facts and circumstances. At the time they are made, we believe that such estimates are fair when considered in conjunction with the Company’s consolidated financial position and results of operations taken as a whole. However, actual results could differ materially from those estimates. Per Share Data. Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the period, excluding unvested restricted share units. Diluted earnings per common share includes the weighted average number of common shares outstanding during the period and dilutive potential common shares arising from our stock-based awards (including unvested restricted share units) if their inclusion is dilutive under the treasury stock method. Common stock equivalents related to stock-based awards are excluded from diluted earnings per common share calculations if their effect would be anti-dilutive.
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Accounting Standards |
3 Months Ended |
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Apr. 27, 2024 | |
Accounting Standards [Abstract] | |
Accounting Standards | Accounting Standards Recently issued accounting pronouncements are disclosed in the Company’s Annual Report on Form 10-K for fiscal 2024. As of the date of this Quarterly Report on Form 10-Q, there have been no changes in the expected dates of adoption or estimated effects on the Company’s condensed consolidated financial statements of recently issued accounting pronouncements from those disclosed in the Company’s Annual Report on Form 10-K for fiscal 2024. Accounting standards adopted during the three months ended April 27, 2024 are disclosed in this Quarterly Report on Form 10-Q. Recently Adopted Accounting Standards Leases. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements. The amendments require all entities including public companies to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. Transition can be done either retrospectively or prospectively. We adopted the provisions of ASU 2023-01 in the first quarter of fiscal 2025 by electing to apply the guidance prospectively to all new leasehold improvements recognized on or after January 28, 2024. The adoption of this update did not have a material impact on our consolidated financial statements. Accounting Standards Not Yet Adopted Segment Reporting: Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires entities to disclose significant segment expenses, on an annual and interim basis, that are regularly provided to the chief operating decision maker, and an amount for other segment items by reportable segment, with a description of its composition. This ASU requires that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this update and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A retrospective approach is required to be applied to all prior periods presented in the financial statements. We plan to adopt the provisions of ASU 2023-07 in the fourth quarter of fiscal 2025 and continue to evaluate the disclosure requirements related to the new standard. Income Taxes: Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure will be applied on a prospective basis, with the option to apply them retrospectively. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We plan to adopt the provisions of ASU 2023-09 in fiscal 2026 and we are evaluating the disclosure requirements related to the new standard. All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.
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Computation of Earnings Per Common Share |
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Computation of Earnings Per Common Share | Computation of Earnings per Common Share The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts):
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions Fiscal 2025. During the first quarter of fiscal 2025, we acquired a telecommunications construction contractor for $16.2 million ($13.0 million purchase price, plus cash acquired of $3.2 million). The acquired company provides construction and maintenance services for telecommunications providers in the midwestern United States. This acquisition expands our geographic presence within our existing customer base. The purchase price allocation of the acquired company is preliminary and will be completed when valuations for intangible assets and other amounts are finalized within the 12-month measurement period from the date of acquisition. The following table summarizes the aggregate consideration paid and the estimated fair value of assets acquired and liabilities assumed as of the acquisition date (dollars in millions):
The excess purchase price over the estimated fair value of the net assets acquired was recognized as goodwill and totaled $3.4 million. Goodwill and intangible assets total $8.8 million and are deductible for tax purposes. Accounts receivable and current liabilities were stated at their historical carrying value, which approximates fair value given the short-term nature of these assets and liabilities. The estimate of fair value for fixed assets was based on an assessment of acquired assets’ condition as well as an evaluation of the current market value of such assets. The Company recorded intangible assets based on its preliminary estimate of fair value which consisted of the following (dollars in millions):
Fiscal 2024. During August 2023, we acquired Bigham Cable Construction, Inc. ("Bigham"), for $131.2 million ($127.0 million fixed purchase price, plus cash acquired of $8.3 million, less indebtedness of $4.1 million). Bigham provides construction and maintenance services for telecommunications providers in the southeastern United States. This acquisition expands our geographic presence within our existing customer base. The purchase price allocation of Bigham is preliminary and will be completed when valuations for intangible assets and other amounts are finalized within the 12-month measurement period from the date of acquisition. The following table summarizes the aggregate consideration paid and the estimated fair value of assets acquired and liabilities assumed as of the acquisition date (dollars in millions):
The excess purchase price over the estimated fair value of the net assets acquired was recognized as goodwill and totaled $39.4 million. Goodwill and intangible assets total $81.6 million and are deductible for tax purposes. Accounts receivable and current liabilities were stated at their historical carrying value, which approximates fair value given the short-term nature of these assets and liabilities. The estimate of fair value for fixed assets was based on an assessment of acquired assets’ condition as well as an evaluation of the current market value of such assets. The Company recorded intangible assets based on its preliminary estimate of fair value which consisted of the following (dollars in millions):
The valuation of intangible assets for both acquisitions was determined using the income approach methodology. More specifically, the fair values of the customer relationships and the backlog intangibles were estimated using the multi-period excess earnings method, while the trade name was estimated using the relief-from-royalty method. Key assumptions used in estimating future cash flows included projected revenue growth rates, profit margins, discount rates, customer attrition rates and royalty rates among others. The projected future cash flows are discounted to present value using an appropriate discount rate. Results of the businesses acquired are included in the condensed consolidated financial statements from the date of acquisition. The results from the businesses acquired during fiscal 2025 and 2024 were not considered material to the Company’s condensed consolidated financial statements.
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Accounts Receivable, Contract Assets, and Contract Liabilities |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Contract Assets, and Contract Liabilities | Accounts Receivable, Contract Assets, and Contract Liabilities The following provides further details on the balance sheet accounts of accounts receivable, net; contract assets; and contract liabilities. Accounts Receivable Accounts receivable, net, classified as current, consisted of the following (dollars in thousands):
We maintain an allowance for doubtful accounts for estimated losses on uncollected balances. The allowance for doubtful accounts changed as follows (dollars in thousands):
Contract Assets and Contract Liabilities Net contract assets consisted of the following (dollars in thousands):
The decrease in net contract assets, net, primarily resulted from increased billings under contracts consisting of multiple tasks. During the three months ended April 27, 2024, we performed services and recognized $9.7 million, of contract revenues related to contract liabilities that existed at January 27, 2024. See Note 7, Other Current Assets and Other Assets, for information on our long-term contract assets. Customer Credit Concentration The combined amounts of accounts receivable and contract assets, net, for Lumen Technologies were $358.4, or 25.8%, and $345.0, or 27.4%, as of April 27, 2024 and January 27, 2024, respectively, of the total combined accounts receivable and contract assets, net. No other customer had combined amounts of accounts receivable and contract assets, net, which exceeded 10% of total combined accounts receivable and contract assets, net as of April 27, 2024 or January 27, 2024. We believe that none of our significant customers were experiencing financial difficulties that would materially impact the collectability of our total accounts receivable and contract assets, net, as of April 27, 2024 or January 27, 2024.
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Other Current Assets and Other Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets and Other Assets | Other Current Assets and Other Assets Other current assets consisted of the following (dollars in thousands):
Other assets consisted of the following (dollars in thousands):
Long-term contract assets represent payments made to customers pursuant to long-term agreements and are recognized as a reduction of contract revenues over the period for which the related services are provided to the customers. See Note 11, Accrued Insurance Claims, for information on our insurance recoveries/receivables.
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Cash, Cash Equivalents and Restricted Cash |
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Cash, Cash Equivalents and Restricted Cash | Cash and Equivalents and Restricted Cash Amounts of cash, cash equivalents and restricted cash reported in the condensed consolidated statement of cash flows consisted of the following (dollars in thousands):
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Property and Equipment |
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Property and Equipment | Property and Equipment Property and equipment consisted of the following (dollars in thousands):
Depreciation expense was $39.4 million and $33.8 million for the three months ended April 27, 2024 and April 29, 2023.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company’s goodwill balance was $315.3 million and $312.0 million as of April 27, 2024 and January 27, 2024, respectively. Changes in the carrying amount of goodwill consisted of the following (dollars in thousands):
The Company’s goodwill resides in multiple reporting units and primarily consists of expected synergies, together with the expansion of our geographic presence and strengthening of our customer base from acquisitions. Goodwill and other indefinite-lived intangible assets are assessed annually, or more frequently if events occur that would indicate a potential reduction in the fair value of a reporting unit below its carrying value. The profitability of individual reporting units may suffer periodically due to downturns in customer demand, increased costs of providing services, and the level of overall economic activity. Our customers may reduce capital expenditures and defer or cancel pending projects due to changes in technology, a slowing or uncertain economy, merger or acquisition activity, a decision to allocate resources to other areas of their business, or other reasons. The profitability of reporting units may also suffer if actual costs of providing services exceed the costs anticipated when the Company enters into contracts. Additionally, adverse conditions in the economy and future volatility in the equity and credit markets could impact the valuation of our reporting units. The cyclical nature of our business, the high level of competition existing within our industry, and the concentration of our revenues from a limited number of customers may also cause results to vary. These factors may affect individual reporting units disproportionately, relative to the Company as a whole. As a result, the performance of one or more of the reporting units could decline, resulting in an impairment of goodwill or intangible assets. During the first quarter of fiscal 2025, the Company acquired a telecommunications construction contractor for $16.2 million ($13.0 million purchase price, plus cash acquired of $3.2 million). The purchase price was allocated based on the fair value of the assets acquired and the liabilities assumed on the date of acquisition. The excess purchase price over the estimated fair value of the net assets acquired was recognized as goodwill and totaled $3.4 million, which is deductible for tax purposes. See Note 5, Acquisitions, for more information regarding the acquisition. The Company performs its annual goodwill assessment as of the first day of the fourth fiscal quarter of each fiscal year. As a result of the Company’s fiscal 2024 period assessment, the Company determined that the fair values of each of the reporting units and the indefinite-lived intangible asset were in excess of their carrying values and no impairment had occurred. As of April 27, 2024, we believe the carrying amounts of goodwill and the indefinite-lived intangible asset are recoverable for all of our reporting units. Intangible Assets Our intangible assets consisted of the following (dollars in thousands):
Amortization of our customer relationship intangibles and our contract backlog intangibles are recognized on an accelerated basis as a function of the expected economic benefit. Amortization of our other finite-lived intangibles is recognized on a straight-line basis over the estimated useful life. Amortization expense for finite-lived intangible assets was $5.8 million and $3.5 million for the three months ended April 27, 2024 and April 29, 2023. As of April 27, 2024, we believe that the carrying amounts of our intangible assets are recoverable. However, if adverse events were to occur or circumstances were to change indicating that the carrying amount of such assets may not be fully recoverable, the assets would be reviewed for impairment and the assets could be impaired.
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Accrued Insurance Claims |
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Accrued Insurance Claims [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Insurance Claims | Accrued Insurance Claims For claims within our insurance program, we retain the risk of loss, up to certain annual stop-loss limits, for matters related to automobile liability, general liability (including damages associated with underground facility locating services), workers’ compensation, and employee group health. Losses for claims beyond our retained risk of loss are covered by insurance up to our coverage limits. For workers’ compensation losses during fiscal 2025 and 2024, we retained the risk of loss up to $1.0 million on a per occurrence basis. This retention amount is applicable to all of the states in which we operate, except with respect to workers’ compensation insurance in two states in which we participate in state-sponsored insurance funds. For automobile liability and general liability losses during fiscal 2024, we retained the risk of loss up to $1.0 million on a per-occurrence basis for the first $5.0 million of insurance coverage. We also retained the risk of loss for the next $10.0 million on a per-occurrence basis for losses between $5.0 million and $15.0 million, if any. Additionally, during fiscal 2024 we retained $10.0 million risk of loss on a per occurrence basis for losses between $30.0 million and $40.0 million, if any. For automobile liability losses during fiscal 2025, we retained the risk of loss up to $2.0 million on a per-occurrence basis for the first $5.0 million of insurance coverage. We also retained the risk of loss for the next $5.0 million on a per-occurrence basis for losses between $5.0 million and $10.0 million, if any. For general liability losses during fiscal 2025, we retained the risk of loss up to $1.0 million on a per-occurrence basis for the first $5.0 million of insurance coverage. We also retained the risk of loss for the next $5.0 million on a per-occurrence basis for losses between $5.0 million and $10.0 million, if any. We are party to a stop-loss agreement for losses under our employee group health plan. For calendar year 2024, we retain the risk of loss on an annual basis, up to the first $700,000 of claims per participant. Amounts for total accrued insurance claims and insurance recoveries/receivables are as follows (dollars in thousands):
Insurance recoveries/receivables represent the amount of accrued insurance claims that are covered by insurance as the amounts exceed the Company’s loss retention. During the three months ended April 27, 2024, total insurance recoveries/receivables increased approximately $0.2 million primarily due to additional claims that exceeded our loss retention. Accrued insurance claims increased by a corresponding amount.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases We lease the majority of our office facilities as well as certain equipment, all of which are accounted for as operating leases. These leases have remaining terms ranging from less than 1 year to approximately 6 years. Some leases include options to extend the lease for up to 5 years and others include options to terminate. The following table summarizes the components of lease cost recognized in the condensed consolidated statements of operations for the three months ended April 27, 2024 and April 29, 2023 (dollars in thousands):
(1) Variable lease cost primarily includes insurance, maintenance, and other operating expenses related to our leased office facilities. Our operating lease liabilities related to long-term operating leases were $80.0 million as of April 27, 2024 and $76.1 million as of January 27, 2024. Supplemental balance sheet information related to these liabilities is as follows:
Supplemental cash flow information related to our long-term operating lease liabilities for the three months ended April 27, 2024 and April 29, 2023 is as follows (dollars in thousands):
As of April 27, 2024, maturities of our lease liabilities under our long-term operating leases for the next five fiscal years and thereafter are as follows (dollars in thousands):
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Other Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consisted of the following (dollars in thousands):
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Debt |
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Debt | Debt The following table summarizes the net carrying value of our outstanding indebtedness (dollars in thousands):
Credit Agreement The Company and certain of its subsidiaries are party to an amended and restated credit agreement, dated as of October 19, 2018, with the various lenders party thereto and Bank of America, N.A., as administrative agent (as amended on April 1, 2021 and May 9, 2023, the “Credit Agreement”), which includes a revolving facility with a maximum revolver commitment of $650.0 million and a term loan facility in the principal amount of $350.0 million. The Credit Agreement includes a $200.0 million sublimit for the issuance of letters of credit and a $50.0 million sublimit for swingline loans. The maturity of the Credit Agreement is April 1, 2026. On May 15, 2024, we amended and restated the Credit Agreement to, among other things, increase the term loan and extend the maturity date. See Note 21, Subsequent Events, for further information. The following table summarizes the net carrying value of the term loan as of April 27, 2024 and January 27, 2024 (dollars in thousands):
Subject to certain conditions, the Credit Agreement provided us with the ability to enter into one or more incremental facilities either by increasing the revolving commitments under the Credit Agreement and/or by establishing one or more additional term loans, up to the sum of (i) $350.0 million and (ii) an aggregate amount such that, after giving effect to such incremental facilities on a pro forma basis (assuming that the amount of the incremental commitments are fully drawn and funded), the consolidated senior secured net leverage ratio does not exceed 2.25 to 1.00. The consolidated senior secured net leverage ratio is the ratio of our consolidated senior secured indebtedness reduced by unrestricted cash and equivalents in excess of $25.0 million to our trailing four-quarter consolidated earnings before interest, taxes, depreciation, and amortization (“EBITDA”), as defined by the Credit Agreement. Borrowings under the Credit Agreement are guaranteed by substantially all of our domestic subsidiaries and secured by 100% of the equity interests of our direct and indirect domestic subsidiaries and 65% of the voting equity interests and 100% of the non-voting interests of our first-tier foreign subsidiaries (subject to customary exceptions). Under our Credit Agreement, borrowings bear interest at the rates described below based upon our consolidated net leverage ratio, which is the ratio of our consolidated total funded debt reduced by unrestricted cash and equivalents in excess of $25.0 million to our trailing four-quarter consolidated EBITDA, as defined by our Credit Agreement. In addition, we incur certain fees for unused balances and letters of credit at the rates described below, also based upon our consolidated net leverage ratio.
(1) Base rate is described in the Credit Agreement as the highest of (i) the Federal Funds Rate plus 0.50%, (ii) the administrative agent’s prime rate, and (iii) the Term SOFR plus 1.00% and, if such rate is less than zero, such rate shall be deemed zero. Standby letters of credit of approximately $47.5 million, issued as part of our insurance program, were outstanding under our Credit Agreement as of both April 27, 2024 and January 27, 2024. The weighted average interest rates and fees for balances under our Credit Agreement as of April 27, 2024 and January 27, 2024 were as follows:
(1) There were no outstanding borrowings under our revolving facility as of January 27, 2024. Our Credit Agreement contains a financial covenant that requires us to maintain a consolidated net leverage ratio of not greater than 3.50 to 1.00, as measured at the end of each fiscal quarter, and provides for certain increases to this ratio in connection with permitted acquisitions. The consolidated net leverage ratio is the ratio of our consolidated indebtedness reduced by unrestricted cash and cash equivalents in excess of $25.0 million to our trailing four-quarter consolidated earnings before interest, taxes, depreciation, and amortization as defined by our Credit Agreement. The Credit Agreement also contains a financial covenant that requires us to maintain a consolidated interest coverage ratio, which is the ratio of our trailing four-quarter consolidated EBITDA to our consolidated interest expense, each as defined by our Credit Agreement, of not less than 3.00 to 1.00, as measured at the end of each fiscal quarter. At April 27, 2024 and January 27, 2024, we were in compliance with the financial covenants of our Credit Agreement and had borrowing availability under our revolving facility of $547.5 million and $602.5 million, respectively, as determined by the most restrictive covenant. For calculation purposes, applicable cash on hand is netted against the funded debt amount as permitted in the Credit Agreement. On May 9, 2023, we amended the Credit Agreement to replace LIBOR with the Secured Overnight Financing Rate (“SOFR”) and provide that term loans and revolving loans will bear interest at a rate per annum equal to, either term SOFR or the base rate, plus, in each case, an applicable margin that will be determined based on our consolidated net leverage ratio, as specified above. “Term SOFR” will be the published forward-looking SOFR rate for the applicable interest period plus a 0.10% spread adjustment and if such rate is less than zero, such rate shall be deemed zero. 4.50% Senior Notes Due 2029 On April 1, 2021, we issued $500.0 million aggregate principal amount of 4.50% senior notes due 2029 (the “2029 Notes”). The 2029 Notes are guaranteed on a senior unsecured basis, jointly and severally, by all of our domestic subsidiaries that guarantee the Credit Agreement. The indenture governing the 2029 Notes contains certain covenants that limit, among other things, our ability and the ability of certain of our subsidiaries to (i) incur additional debt and issue certain preferred stock, (ii) pay certain dividends on, repurchase, or make distributions in respect of, our and our subsidiaries’ capital stock or make other payments restricted by the indenture, (iii) enter into agreements that place limitations on distributions made from certain of our subsidiaries, (iv) guarantee certain debt, (v) make certain investments, (vi) sell or exchange certain assets, (vii) enter into transactions with affiliates, (viii) create certain liens, and (ix) consolidate, merge or transfer all or substantially all of our or our Subsidiaries’ assets. These covenants are subject to a number of exceptions, limitations and qualifications as set forth in the indenture governing the 2029 Notes. The following table summarizes the net carrying value of the 2029 Notes as of April 27, 2024 and January 27, 2024 (dollars in thousands):
The following table summarizes the fair value of the 2029 Notes, net of debt issuance costs. The fair value of the 2029 Notes is based on the closing trading price per $100 of the 2029 Notes as of the last day of trading (Level 2), which was $91.80 and $92.49 as of April 27, 2024 and January 27, 2024, respectively (dollars in thousands):
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Income Taxes |
3 Months Ended |
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Apr. 27, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective income tax rate was 19.2% and 22.1% for the three months ended April 27, 2024 and April 29, 2023, respectively. The interim income tax provisions are based on the effective income tax rate expected to be applicable for the full fiscal year, adjusted for specific items that are required to be recognized in the period in which they occur. The effective tax rate differs from the statutory rate primarily due to the difference in income tax rates from state to state where work was performed, non-deductible and non-taxable items, tax credits recognized, the tax effects of the vesting and exercise of share-based awards, and changes in unrecognized tax benefits. Deferred tax assets and liabilities are based on the enacted tax rate that will apply in future periods when such assets and liabilities are expected to be settled or realized. We are currently under IRS audit for fiscal year 2020. We believe our provision for income taxes is adequate; however, any assessment may affect our results of operations and cash flows.
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Other Income, Net |
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Other Income, Net | Other Income, Net The components of other income, net, were as follows (dollars in thousands):
We participate in a vendor payment program sponsored by one of our customers. Eligible accounts receivable from this customer are included in the program and payment is received pursuant to a non-recourse sale to a bank partner. This program effectively reduces the time to collect these receivables as compared to that customer’s standard payment terms. We incur a discount fee to the bank on the payments received that is included as an expense component in miscellaneous expense, net, in the table above.
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Capital Stock |
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Apr. 27, 2024 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Capital Stock Repurchases of Common Stock. On August 23, 2023 the Company announced that its Board of Directors authorized a new $150 million program to repurchase shares of the Company’s outstanding common stock through February 2025 in open market or private transactions. During the three months ended April 27, 2024, the Company repurchased 210,000 shares of common stock, at an average price of $141.84, for $29.8 million. All shares repurchased have been cancelled. As of April 27, 2024, $90.9 million of the authorization was available for repurchases. Restricted Stock Tax Withholdings. During the three months ended April 27, 2024 and April 29, 2023, we withheld 113,292 shares totaling $16.3 million and 101,035 shares totaling $9.6 million, respectively, to meet payroll tax withholding obligations arising from the vesting of restricted share units. All shares withheld have been cancelled. Shares of common stock withheld for tax withholdings do not reduce our total share repurchase authority. Upon cancellation of shares repurchased or withheld for tax withholdings, the excess over par value is recorded as a reduction of additional paid-in capital until the balance is reduced to zero, with any additional excess recorded as a reduction of retained earnings.
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Stock-Based Awards |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Awards | Stock-Based Awards We have certain stock-based compensation plans under which we grant stock-based awards, including common stock, stock options, time-based restricted share units (“RSUs”), and performance-based restricted share units (“Performance RSUs”) to attract, retain, and reward talented employees, officers, and directors, and to align stockholder and employee interests. Compensation expense for stock-based awards is based on fair value at the measurement date. This expense fluctuates over time as a function of the duration of vesting periods of the stock-based awards and the Company’s performance, as measured by criteria set forth in performance-based awards. Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations and the amount of expense ultimately recognized depends on the quantity of awards that actually vest. Accordingly, stock-based compensation expense may vary from period to period. The performance criteria for the Company’s performance-based equity awards utilize the Company’s operating earnings (adjusted for certain amounts) as a percentage of contract revenues for the applicable annual period (a “Performance Year”) and its Performance Year operating cash flow level (adjusted for certain amounts). Additionally, certain awards include three-year performance measures that, if met, result in supplemental shares awarded. For Performance RSUs, the Company evaluates compensation expense quarterly and recognizes expense for performance-based awards only if it determines it is probable that performance criteria for the awards will be met. Stock-based compensation expense and the related tax benefit recognized during the three months ended April 27, 2024 and April 29, 2023 were as follows (dollars in thousands):
During the three months ended April 27, 2024 and April 29, 2023 the Company realized $5.9 million and $2.7 million of net excess tax benefits, respectively, related to the vesting and exercise of share-based awards. As of April 27, 2024, we had unrecognized compensation expense related to stock options, RSUs, and target Performance RSUs (based on the Company’s expected achievement of performance measures) of $5.3 million, $30.2 million, and $29.9 million, respectively. This expense will be recognized over a weighted-average number of years of 3.1, 3.1, and 1.6, respectively, based on the average remaining service periods for the awards. We may recognize an additional $11.5 million in compensation expense in future periods after April 27, 2024 if the maximum number of Performance RSUs is earned based on certain performance measures being met. Stock Options The following table summarizes stock option award activity during the three months ended April 27, 2024:
RSUs and Performance RSUs The following table summarizes RSU and Performance RSU award activity during the three months ended April 27, 2024:
The total number of granted Performance RSUs presented above consists of 117,938 target shares and 52,588 supplemental shares. The total number of Performance RSUs outstanding as of April 27, 2024 consists of 260,913 target shares and 119,173 supplemental shares. With respect to the Company’s Performance Year ended January 27, 2024, the Company added 712 supplemental shares and cancelled 66,685 supplemental shares during the three months ended April 27, 2024, as a result of the performance period criteria not being met.
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Customer Concentration and Revenue Information |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Concentration and Revenue Information | Customer Concentration and Revenue Information Geographic Location We provide services throughout the United States. Significant Customers Our customer base is highly concentrated, with our top five customers accounting for approximately 56.4% and 65.5% of total contract revenues during the three months ended April 27, 2024 and April 29, 2023, respectively. Customers whose contract revenues exceeded 10% of total contract revenues during the three months ended April 27, 2024 or April 29, 2023, as well as total contract revenues from all other customers combined, were as follows (dollars in millions):
See Note 6, Accounts Receivable, Contract Assets, and Contract Liabilities, for information on our customer credit concentration and collectability of trade accounts receivable and contract assets. Customer Type Total contract revenues by customer type during the three months ended April 27, 2024 and April 29, 2023 were as follows (dollars in millions):
Remaining Performance Obligations Master service agreements and other contractual agreements with customers contain customer-specified service requirements, such as discrete pricing for individual tasks. In most cases, our customers are not contractually committed to procure specific volumes of services under these agreements. Services are generally performed pursuant to these agreements in accordance with individual work orders. An individual work order generally is completed within one year. As a result, our remaining performance obligations under the work orders not yet completed is not meaningful in relation to our overall revenue at any given point in time. We apply the practical expedient in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, and do not disclose information about remaining performance obligations that have original expected durations of one year or less.
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Commitment and Contingencies |
3 Months Ended |
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Apr. 27, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies During the fourth quarter of fiscal 2016, one of the Company’s subsidiaries ceased operations. This subsidiary contributed to a multiemployer pension plan, the Pension, Hospitalization and Benefit Plan of the Electrical Industry - Pension Trust Fund (the “Plan”). In October 2016, the Plan demanded payment for a claimed withdrawal liability of approximately $13.0 million pursuant to its interpretation of Employee Retirement Income Security Act (“ERISA”). In December 2016, the subsidiary submitted a formal request to the Plan seeking review of the Plan’s withdrawal liability determination. The subsidiary disputed, among other things, the amount of the withdrawal liability demanded by the Plan. The subsidiary has submitted this dispute to arbitration, as required by ERISA. There can be no assurance that the Company’s subsidiary will be successful in its appeal of the Plan’s withdrawal liability determination. As required by ERISA, this subsidiary began making payments of the claimed withdrawal liability to the Plan in the amount of approximately $0.1 million per month in November 2016. The aggregate amount of the payments made to date is currently approximately $11.7 million and that amount has been recorded by the Company as an asset. If the subsidiary prevails in disputing the amount of the withdrawal liability, any amounts that have been paid by the Company to the Plan in excess of the finally determined withdrawal liability are expected to be refunded to the Company. From time to time, we are party to other various claims and legal proceedings arising in the ordinary course of business. While the resolution of these matters cannot be predicted with certainty, it is the opinion of management, based on information available at this time, that the ultimate resolution of any such claims or legal proceedings will not, after considering applicable insurance coverage or other indemnities to which we may be entitled, have a material effect on our financial position, results of operations, or cash flow. Commitments Performance and Payment Bonds and Guarantees. We have obligations under performance and other surety contract bonds related to certain of our customer contracts. Performance bonds generally provide a customer with the right to obtain payment and/or performance from the issuer of the bond if we fail to perform our contractual obligations. As of April 27, 2024 and January 27, 2024, we had $397.0 million and $409.6 million, respectively, of outstanding performance and other surety contract bonds. In addition to performance and other surety contract bonds, as part of our insurance program we also provide surety bonds that collateralize our obligations to our insurance carriers. As of April 27, 2024 and January 27, 2024, we had $24.1 million and $20.4 million, respectively, of outstanding surety bonds related to our insurance obligations. Additionally, the Company periodically guarantees certain obligations of its subsidiaries, including obligations in connection with obtaining state contractor licenses and leasing real property and equipment. Letters of Credit. We have issued standby letters of credit under our Credit Agreement that collateralize our obligations to our insurance carriers. At each of April 27, 2024 and January 27, 2024, we had $47.5 million of outstanding standby letters of credit issued under our Credit Agreement.
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Subsequent Events |
3 Months Ended |
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Apr. 27, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events During the second quarter of fiscal 2025, we acquired a telecommunications construction contractor for a cash purchase price of $20.8 million. The company is located in the northwestern United States with the majority of its revenues generated in Alaska. This acquisition expands our geographic presence and our customer base. Required disclosures related to this business combination will be provided upon completion of the preliminary purchase price allocation. On May 15, 2024 the Company and certain of its subsidiaries amended and restated its Credit Agreement to, among other things, extend the maturity date of the Credit Agreement to January 15, 2029, and increase the term loan facility to $450.0 million from $310.6 million. The Credit Agreement includes a $200.0 million sublimit for the issuance of letters of credit and a $50.0 million sublimit for swingline loans.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Apr. 27, 2024 |
Apr. 29, 2023 |
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Pay vs Performance Disclosure | ||
Net income | $ 62,554 | $ 51,523 |
Insider Trading Arrangements |
3 Months Ended |
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Apr. 27, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Policies and Estimates (Policies) |
3 Months Ended |
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Apr. 27, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Dycom Industries, Inc. (“Dycom”, the “Company”, “we”, “our”, or “us”) is a leading provider of specialty contracting services throughout the United States. These services include program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers. Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. Dycom supplies the labor, tools, and equipment necessary to provide these services to its customers. |
Accounting Period | Accounting Period. Our fiscal year ends on the last Saturday in January. As a result, each fiscal year consists of either 52 weeks or 53 weeks of operations (with the additional week of operations occurring in the fourth quarter). Fiscal 2025 and fiscal 2024 each consist of 52 weeks of operations. The next 53 week fiscal period will occur in the fiscal year ending January 31, 2026.
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Segment Information | Segment Information. The Company operates in one reportable segment. Its services are provided by its operating segments on a decentralized basis. Each operating segment consists of a subsidiary (or in certain instances, the combination of two or more subsidiaries), whose results are regularly reviewed by the Company’s Chief Executive Officer, the chief operating decision maker. All of the Company’s operating segments have been aggregated into one reportable segment based on their similar economic characteristics, nature of services and production processes, type of customers, and service distribution methods. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. These estimates are based on our historical experience and management’s understanding of current facts and circumstances. At the time they are made, we believe that such estimates are fair when considered in conjunction with the Company’s consolidated financial position and results of operations taken as a whole. However, actual results could differ materially from those estimates. |
Per Share Data | Per Share Data. Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the period, excluding unvested restricted share units. Diluted earnings per common share includes the weighted average number of common shares outstanding during the period and dilutive potential common shares arising from our stock-based awards (including unvested restricted share units) if their inclusion is dilutive under the treasury stock method. Common stock equivalents related to stock-based awards are excluded from diluted earnings per common share calculations if their effect would be anti-dilutive.
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Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Leases. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements. The amendments require all entities including public companies to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. Transition can be done either retrospectively or prospectively. We adopted the provisions of ASU 2023-01 in the first quarter of fiscal 2025 by electing to apply the guidance prospectively to all new leasehold improvements recognized on or after January 28, 2024. The adoption of this update did not have a material impact on our consolidated financial statements. Accounting Standards Not Yet Adopted Segment Reporting: Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires entities to disclose significant segment expenses, on an annual and interim basis, that are regularly provided to the chief operating decision maker, and an amount for other segment items by reportable segment, with a description of its composition. This ASU requires that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this update and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A retrospective approach is required to be applied to all prior periods presented in the financial statements. We plan to adopt the provisions of ASU 2023-07 in the fourth quarter of fiscal 2025 and continue to evaluate the disclosure requirements related to the new standard. Income Taxes: Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure will be applied on a prospective basis, with the option to apply them retrospectively. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We plan to adopt the provisions of ASU 2023-09 in fiscal 2026 and we are evaluating the disclosure requirements related to the new standard. All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.
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Computation of Earnings Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts):
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Acquisitions (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate consideration paid and the estimated fair value of assets acquired and liabilities assumed as of the acquisition date (dollars in millions):
The following table summarizes the aggregate consideration paid and the estimated fair value of assets acquired and liabilities assumed as of the acquisition date (dollars in millions):
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The Company recorded intangible assets based on its preliminary estimate of fair value which consisted of the following (dollars in millions):
The Company recorded intangible assets based on its preliminary estimate of fair value which consisted of the following (dollars in millions):
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Accounts Receivable, Contract Assets, and Contract Liabilities (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts receivable, net, classified as current, consisted of the following (dollars in thousands): The allowance for doubtful accounts changed as follows (dollars in thousands):
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Contract Assets and Contract Liabilities | Net contract assets consisted of the following (dollars in thousands):
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Other Current Assets and Other Assets (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | Other current assets consisted of the following (dollars in thousands):
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Schedule of Non current Assets | Other assets consisted of the following (dollars in thousands):
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Cash, Cash Equivalents and Restricted Cash (Tables) |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | Amounts of cash, cash equivalents and restricted cash reported in the condensed consolidated statement of cash flows consisted of the following (dollars in thousands):
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Schedule of Restricted Cash and Cash Equivalents | Amounts of cash, cash equivalents and restricted cash reported in the condensed consolidated statement of cash flows consisted of the following (dollars in thousands):
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Property and Equipment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment consisted of the following (dollars in thousands):
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Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The Company’s goodwill balance was $315.3 million and $312.0 million as of April 27, 2024 and January 27, 2024, respectively. Changes in the carrying amount of goodwill consisted of the following (dollars in thousands):
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Schedule of Intangible Assets | Our intangible assets consisted of the following (dollars in thousands):
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Accrued Insurance Claims (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Insurance Claims [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Insurance Claims and Insurance Recoveries/Receivables | Amounts for total accrued insurance claims and insurance recoveries/receivables are as follows (dollars in thousands):
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Cost, Supplemental Balance Sheet, and Supplemental Cash Flows | The following table summarizes the components of lease cost recognized in the condensed consolidated statements of operations for the three months ended April 27, 2024 and April 29, 2023 (dollars in thousands):
(1) Variable lease cost primarily includes insurance, maintenance, and other operating expenses related to our leased office facilities. Our operating lease liabilities related to long-term operating leases were $80.0 million as of April 27, 2024 and $76.1 million as of January 27, 2024. Supplemental balance sheet information related to these liabilities is as follows:
Supplemental cash flow information related to our long-term operating lease liabilities for the three months ended April 27, 2024 and April 29, 2023 is as follows (dollars in thousands):
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Operating Lease Liability Maturity Schedule | As of April 27, 2024, maturities of our lease liabilities under our long-term operating leases for the next five fiscal years and thereafter are as follows (dollars in thousands):
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Other Accrued Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Accrued Liabilities | Other accrued liabilities consisted of the following (dollars in thousands):
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Indebtedness | The following table summarizes the net carrying value of our outstanding indebtedness (dollars in thousands):
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Carrying Value and Fair Value of Notes | The following table summarizes the net carrying value of the term loan as of April 27, 2024 and January 27, 2024 (dollars in thousands):
The following table summarizes the fair value of the 2029 Notes, net of debt issuance costs. The fair value of the 2029 Notes is based on the closing trading price per $100 of the 2029 Notes as of the last day of trading (Level 2), which was $91.80 and $92.49 as of April 27, 2024 and January 27, 2024, respectively (dollars in thousands):
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Schedule Interest Rates for the Credit Agreement | Under our Credit Agreement, borrowings bear interest at the rates described below based upon our consolidated net leverage ratio, which is the ratio of our consolidated total funded debt reduced by unrestricted cash and equivalents in excess of $25.0 million to our trailing four-quarter consolidated EBITDA, as defined by our Credit Agreement. In addition, we incur certain fees for unused balances and letters of credit at the rates described below, also based upon our consolidated net leverage ratio.
(1) Base rate is described in the Credit Agreement as the highest of (i) the Federal Funds Rate plus 0.50%, (ii) the administrative agent’s prime rate, and (iii) the Term SOFR plus 1.00% and, if such rate is less than zero, such rate shall be deemed zero. The weighted average interest rates and fees for balances under our Credit Agreement as of April 27, 2024 and January 27, 2024 were as follows:
(1) There were no outstanding borrowings under our revolving facility as of January 27, 2024.
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Schedule of Long-term Debt Instruments | The following table summarizes the net carrying value of the 2029 Notes as of April 27, 2024 and January 27, 2024 (dollars in thousands):
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Other Income, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Income, Net | The components of other income, net, were as follows (dollars in thousands):
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Stock-Based Awards (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense and Related Tax Benefit Recognized | Stock-based compensation expense and the related tax benefit recognized during the three months ended April 27, 2024 and April 29, 2023 were as follows (dollars in thousands):
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Schedule of Share-based Compensation, Stock Options Award Activity | The following table summarizes stock option award activity during the three months ended April 27, 2024:
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Schedule of Share-based Compensation, RSU and Performance RSU Activity | The following table summarizes RSU and Performance RSU award activity during the three months ended April 27, 2024:
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Customer Concentration and Revenue Information (Tables) |
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Apr. 27, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule that Represents A Significant Portion of the Company’s Customer Base and Each Over 10% of Total Revenue | Customers whose contract revenues exceeded 10% of total contract revenues during the three months ended April 27, 2024 or April 29, 2023, as well as total contract revenues from all other customers combined, were as follows (dollars in millions):
Total contract revenues by customer type during the three months ended April 27, 2024 and April 29, 2023 were as follows (dollars in millions):
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Basis of Presentation (Details) |
3 Months Ended |
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Apr. 27, 2024
segment
| |
Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Computation of Earnings Per Common Share - Basic and Diluted Earnings Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
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Apr. 27, 2024 |
Apr. 29, 2023 |
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income available to common stockholders (numerator) | $ 62,554 | $ 51,523 |
Weighted-average number of common shares (in shares) | 29,113,943 | 29,369,185 |
Basic earnings per common share (in dollars per share) | $ 2.15 | $ 1.75 |
Potential common stock arising from stock options, and unvested restricted share units (in shares) | 437,766 | 413,066 |
Total shares-diluted (in shares) | 29,551,709 | 29,782,251 |
Diluted earnings per common share (in dollars per share) | $ 2.12 | $ 1.73 |
Stock-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive weighted shares excluded from the calculation of earnings per share (in shares) | 176,146 | 149,586 |
Acquisitions - Narratives (Details) - USD ($) $ in Thousands |
Feb. 07, 2024 |
Aug. 18, 2023 |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 315,308 | $ 311,991 | ||
Midwestern United States Telecommunications Construction Contractor | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred | $ 16,200 | |||
Payment to acquire business, net of cash acquired | 13,000 | |||
Cash and equivalents | 3,200 | |||
Goodwill | 3,400 | |||
Business acquisition, goodwill and intangible assets, expected tax deductible amount | $ 8,800 | |||
Bigham | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred | $ 131,200 | |||
Payment to acquire business, net of cash acquired | 127,000 | |||
Cash and equivalents | 8,300 | |||
Business combination, consideration transferred, liabilities incurred | 4,100 | |||
Goodwill | 39,400 | |||
Business acquisition, goodwill and intangible assets, expected tax deductible amount | $ 81,600 |
Acquisitions - Schedule of Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Feb. 07, 2024 |
Jan. 27, 2024 |
Aug. 18, 2023 |
---|---|---|---|---|
Assets | ||||
Goodwill | $ 315,308 | $ 311,991 | ||
Bigham | ||||
Assets | ||||
Cash and equivalents | $ 8,300 | |||
Accounts receivable | 45,800 | |||
Other current assets | 100 | |||
Property and equipment, net | 9,900 | |||
Goodwill | 39,400 | |||
Intangible assets, net | 42,200 | |||
Other assets | 800 | |||
Total assets | 146,500 | |||
Liabilities | ||||
Accounts payable | 8,300 | |||
Other accrued liabilities | 2,600 | |||
Income taxes payable | 4,400 | |||
Total liabilities | 15,300 | |||
Net Assets Acquired | $ 131,200 | |||
Midwestern United States Telecommunications Construction Contractor | ||||
Assets | ||||
Cash and equivalents | $ 3,200 | |||
Accounts receivable | 2,200 | |||
Property and equipment, net | 2,400 | |||
Goodwill | 3,400 | |||
Intangible assets, net | 5,400 | |||
Total assets | 16,600 | |||
Liabilities | ||||
Accounts payable | 100 | |||
Other accrued liabilities | 300 | |||
Total liabilities | 400 | |||
Net Assets Acquired | $ 16,200 |
Accounts Receivable, Contract Assets, and Contract Liabilities - Accounts Receivable (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
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Receivables [Abstract] | ||
Trade accounts receivable | $ 468,071 | $ 462,034 |
Unbilled accounts receivable | 861,297 | 734,442 |
Retainage | 44,975 | 49,556 |
Total | 1,374,343 | 1,246,032 |
Less: allowance for doubtful accounts | (1,539) | (2,776) |
Accounts receivable, net | $ 1,372,804 | $ 1,243,256 |
Accounts Receivable, Contract Assets, and Contract Liabilities - Change in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 27, 2024 |
Apr. 29, 2023 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | $ 2,776 | $ 3,246 |
(Recovery of) provision for bad debt | (1,237) | 436 |
Allowance for doubtful accounts at end of period | $ 1,539 | $ 3,682 |
Accounts Receivable, Contract Assets, and Contract Liabilities - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Receivables [Abstract] | ||
Contract assets | $ 68,460 | $ 52,211 |
Contract liabilities | 57,466 | 39,122 |
Contract assets, net | $ 10,994 | $ 13,089 |
Accounts Receivable, Contract Assets, and Contract Liabilities - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Apr. 27, 2024 |
Oct. 28, 2023 |
Jan. 27, 2024 |
|
Concentration Risk | |||
Contract liabilities, revenues recognized | $ 9,700 | ||
Accounts receivable, after allowance for credit loss, current | 1,372,804 | $ 1,243,256 | |
Lumen Technologies | Trade Accounts Receivable and Costs and Estimated Earnings | Customer Concentration Risk | |||
Concentration Risk | |||
Accounts receivable, after allowance for credit loss, current | $ 358,400 | $ 345,000 | |
Concentration risk, percentage | 25.80% | 27.40% |
Other Current Assets and Other Assets - Current (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 31,988 | $ 20,095 |
Deposits and other current assets | 21,039 | 20,218 |
Restricted cash | 1,372 | 1,372 |
Receivables on equipment sales | 1,067 | 568 |
Other current assets | $ 55,466 | $ 42,253 |
Other Current Assets and Other Assets - Non-current (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Long-term contract assets | $ 1,078 | $ 2,610 |
Deferred financing costs | 2,241 | 2,544 |
Restricted cash | 432 | 432 |
Insurance recoveries/receivables for accrued insurance claims | 4,920 | 4,760 |
Other non-current deposits and assets | 13,669 | 14,301 |
Other assets | $ 22,340 | $ 24,647 |
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
Apr. 29, 2023 |
Jan. 28, 2023 |
---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | ||||
Cash and equivalents | $ 26,139 | $ 101,086 | ||
Restricted cash included in: | ||||
Other current assets | 1,372 | 1,372 | ||
Other assets (long-term) | 432 | 432 | ||
Cash equivalents and restricted cash | $ 27,943 | $ 102,890 | $ 73,201 | $ 225,990 |
Property and Equipment - Depreciation Expense and Repairs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 27, 2024 |
Apr. 29, 2023 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 39.4 | $ 33.8 |
Goodwill and Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 27, 2024 |
Jan. 27, 2024 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 564,339 | $ 561,022 |
Accumulated Impairment Losses | (249,031) | (249,031) |
Goodwill from fiscal 2025 acquisition | 3,317 | |
Total | $ 315,308 | $ 311,991 |
Goodwill and Intangible Assets - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 27, 2024 |
Apr. 29, 2023 |
Jan. 27, 2024 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 315,308 | $ 311,991 | |
Amortization of intangible assets | $ 5,800 | $ 3,500 |
Accrued Insurance Claims (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Accrued Insurance Claims [Abstract] | ||
Accrued insurance claims - current | $ 51,608 | $ 44,466 |
Accrued insurance claims - non-current | 54,389 | 49,447 |
Accrued insurance claims | 105,997 | 93,913 |
Insurance recoveries/receivables: | ||
Non-current (included in Other assets) | 4,920 | 4,760 |
Insurance recoveries/receivables | $ 4,920 | $ 4,760 |
Leases - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 27, 2024 |
Jan. 27, 2024 |
|
Lessee, Lease, Description | ||
Operating lease renewal term | 5 years | |
Operating lease liability related to long-term operating leases | $ 79,974 | $ 76,100 |
Operating Lease, 130 Month Term | ||
Lessee, Lease, Description | ||
Lessor, operating lease, lease not yet commenced, term of contract | 130 months | |
Lessee, operating lease, lease not yet commenced, annual payments | $ 3,200 | |
Operating Lease, 36 Month Term | ||
Lessee, Lease, Description | ||
Lessor, operating lease, lease not yet commenced, term of contract | 36 months | |
Lessee, operating lease, lease not yet commenced, annual payments | $ 200 | |
Minimum | ||
Lessee, Lease, Description | ||
Operating lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description | ||
Operating lease term | 6 years |
Leases - Lease Cost and Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 27, 2024 |
Apr. 29, 2023 |
Jan. 27, 2024 |
|
Leases [Abstract] | |||
Lease cost under long-term operating leases | $ 10,460 | $ 9,280 | |
Lease cost under short-term operating leases | 3,994 | 5,886 | |
Variable lease cost under short-term and long-term operating leases | 1,092 | 1,122 | |
Total lease cost | $ 15,546 | $ 16,288 | |
Weighted average remaining lease term | 2 years 10 months 24 days | 2 years 9 months 18 days | |
Weighted average discount rate | 5.20% | 5.00% |
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 27, 2024 |
Apr. 29, 2023 |
|
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 11,053 | $ 10,330 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 13,586 | $ 13,935 |
Leases - Operating Lease Liability Maturity Schedule (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Operating Lease Liabilities After Adoption | ||
Remainder of 2025 | $ 27,770 | |
2026 | 28,765 | |
2027 | 17,000 | |
2028 | 8,134 | |
2029 | 3,930 | |
2030 | 604 | |
Thereafter | 12 | |
Total lease payments | 86,215 | |
Less: imputed interest | (6,241) | |
Total | $ 79,974 | $ 76,100 |
Other Accrued Liabilities (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued payroll and related taxes | $ 38,765 | $ 32,370 |
Accrued employee benefit and incentive plan costs | 28,171 | 51,661 |
Accrued construction costs | 34,752 | 30,712 |
Other current liabilities | 28,172 | 32,476 |
Other accrued liabilities | $ 129,860 | $ 147,219 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 859,922 | $ 808,915 |
Less: current portion | (17,500) | (17,500) |
Long-term debt | 842,422 | 791,415 |
Credit Agreement - Revolving facility (matures April 2020) | ||
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | 55,000 | 0 |
Credit Agreement - Term Loan | ||
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | 309,513 | 313,735 |
Senior Notes | $4.50% senior notes, net (mature April 2029) | ||
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 495,409 | $ 495,180 |
Debt - Carrying Value of Debt (Details) - USD ($) $ in Thousands |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 859,922 | $ 808,915 |
Credit Agreement - Term Loan | ||
Debt Instrument [Line Items] | ||
Fair value of principal amount of 2029 Notes | 310,625 | 315,000 |
Less: Debt issuance costs | (1,112) | (1,265) |
Debt and capital lease obligations | $ 309,513 | $ 313,735 |
Debt - Interest Rates at Period End (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Apr. 27, 2024 |
Jan. 27, 2024 |
|
Secured Overnight Financing Rate (SOFR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.10% | |
Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, effective interest rate | 1.50% | 1.63% |
Credit Agreement - Term Loan | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, effective interest rate | 7.05% | 7.06% |
Credit Agreement - Revolving facility (matures April 2020) | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, effective interest rate | 8.18% | 0.00% |
Unutilized commitment fee (in percent) | 0.25% | 0.30% |
Debt - Senior Notes Due 2029 (Details) - Senior Notes - $4.50% senior notes, net (mature April 2029) $ in Millions |
Apr. 01, 2021
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Debt, interest rate (in percent) | 4.50% |
Debt instrument, face amount | $ 500.0 |
Debt - Fair Value of 2029 Notes (Details) - USD ($) |
Apr. 27, 2024 |
Jan. 27, 2024 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible debt, closing price determination value | 100 | |
Convertible debt, closing trading price per $100 | 91.80 | 92.49 |
Senior Notes | $4.50% senior notes, net (mature April 2029) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of principal amount of 2029 Notes | $ 500,000,000 | $ 500,000,000 |
Estimate of Fair Value Measurement | Senior Notes | $4.50% senior notes, net (mature April 2029) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of principal amount of 2029 Notes | 459,000,000 | 462,450,000 |
Less: Debt issuance costs | (4,591,000) | (4,820,000) |
Fair value of 2029 Notes | $ 454,409,000 | $ 457,630,000 |
Income Taxes - Narratives (Details) |
3 Months Ended | |
---|---|---|
Apr. 27, 2024
Rate
|
Apr. 29, 2023
Rate
|
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 19.20% | 22.10% |
Other Income, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 27, 2024 |
Apr. 29, 2023 |
|
Other Income and Expenses [Abstract] | ||
Gain on sale of fixed assets | $ 12,404 | $ 7,816 |
Miscellaneous expense, net | (3,153) | (2,825) |
Other income, net | $ 9,251 | $ 4,991 |
Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 27, 2024 |
Apr. 29, 2023 |
Aug. 23, 2023 |
|
Stockholders' Equity Note [Abstract] | |||
Amount authorized to repurchase shares | $ 150,000 | ||
Stock repurchased during period (in shares) | 210,000 | ||
Stock repurchased, average cost per share (in dollars per share) | $ 141.84 | ||
Stock repurchased during period, value | $ 29,800 | ||
Remaining authorized repurchase amount | 90,900 | ||
Restricted stock tax withholdings | $ 16,261 | $ 9,616 | |
Share-based payment arrangement, shares withheld for tax withholding obligation (in shares) | 113,292 | 101,035 |
Stock-Based Awards - Tax Benefit Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 27, 2024 |
Apr. 29, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||
Net tax (deficiency) benefit | $ 5,900 | $ 2,700 |
Stock-based compensation | 7,823 | 6,620 |
Stock-based compensation | 7,823 | 6,620 |
Income tax effect of stock-based compensation | $ 1,939 | $ 1,644 |
Stock-Based Awards - Stock Options (Details) - Stock Options |
3 Months Ended |
---|---|
Apr. 27, 2024
$ / shares
shares
| |
Stock Options, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 264,125 |
Granted (in shares) | shares | 27,680 |
Options exercised (in shares) | shares | (3,976) |
Ending balance (in shares) | shares | 287,829 |
Exercisable options (in shares) | shares | 207,589 |
Stock Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Beginning balance (in dollars per shares) | $ / shares | $ 70.18 |
Options granted (in dollars per shares) | $ / shares | 141.28 |
Options exercised (in dollars per shares) | $ / shares | 25.15 |
Ending balance (in dollars per shares) | $ / shares | 77.64 |
Weighted average remaining contractual life, shares exercisable (in dollars per shares) | $ / shares | $ 64.92 |
Customer Concentration and Revenue Information - Narratives (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 27, 2024
USD ($)
customer
Rate
|
Apr. 29, 2023
USD ($)
Rate
|
Jan. 27, 2024
USD ($)
|
|
Concentration Risk | |||
Number of customers classified as highly concentrated | customer | 5 | ||
Accounts receivable, after allowance for credit loss, current | $ 1,372,804 | $ 1,243,256 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,142,423 | $ 1,045,474 | |
Revenue Benchmark | Customer Concentration Risk | |||
Concentration Risk | |||
Concentration risk, percentage | 100.00% | 100.00% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,142,400 | $ 1,045,500 | |
Revenue Benchmark | Customer Concentration Risk | Five Unnamed Customers | |||
Concentration Risk | |||
Concentration risk, percentage | Rate | 56.40% | 65.50% |
Commitment and Contingencies - Narratives (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Oct. 31, 2016 |
Apr. 27, 2024 |
Jan. 27, 2024 |
Nov. 30, 2016 |
|
Loss Contingencies [Line Items] | ||||
Multiemployer plan, periodic withdraw liability | $ 0.1 | |||
Loss contingency accrual, payments | $ 11.7 | |||
Guarantor obligations, maximum exposure, undiscounted | 24.1 | $ 20.4 | ||
Letters of credit outstanding amount | 47.5 | 47.5 | ||
Pension Hospitalization and Benefit Plan of the Electric Industry Pension Trust Fund | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages awarded, value | $ 13.0 | |||
Performance Guarantee and Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Guarantor obligations, carrying value | $ 397.0 | $ 409.6 |
Subsequent Events (Details) - USD ($) $ in Thousands |
Apr. 29, 2024 |
May 15, 2024 |
Apr. 01, 2021 |
Oct. 19, 2018 |
---|---|---|---|---|
Standby Letters of Credit | ||||
Subsequent Event [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 200,000 | |||
Swingline Loans | ||||
Subsequent Event [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 50,000 | |||
Credit Agreement - Term Loan | ||||
Subsequent Event [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 350,000 | |||
Long-Term Debt | $ 310,600 | |||
Subsequent Event | Credit Agreement - Term Loan | ||||
Subsequent Event [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 450,000 | |||
Subsequent Event | Northwestern United States Telecommunications Construction Contractor | ||||
Subsequent Event [Line Items] | ||||
Business combination, consideration transferred | $ 20,800 |
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