EX-99.1 2 ex99-1tof8k_030205.txt PRESS RELEASE ISSUED ON FEBRUARY 28, 2005 [Dycom Industries, Inc. logo and letterhead] N E W S R E L E A S E ----------------------- FOR IMMEDIATE RELEASE Contact: Steven E. Nielsen, President and CEO --------------------- Richard L. Dunn, Senior Vice President and CFO (561) 627-7171 Palm Beach Gardens, Florida February 28, 2005 DYCOM ANNOUNCES FISCAL 2005 SECOND QUARTER EARNINGS AND PROVIDES GUIDANCE FOR THE NEXT TWO FISCAL QUARTERS Palm Beach Gardens, Florida, February 28, 2005--Dycom Industries, Inc. (NYSE Symbol: "DY") announced its results today for the second quarter ended January 29, 2005. The Company reported net income for the quarter ended January 29, 2005 of $7.4 million, or $0.15 per common share diluted, versus net income for the quarter ended January 24, 2004 of $16.4 million, or $0.34 per common share diluted. Included in the net income for the second quarter of fiscal 2004 was a nonrecurring gain of $11.4 million ($6.8 million net of tax) related to the sale of long-term accounts receivable. Excluding this gain, net income for the quarter ended January 24, 2004 would have been $9.6 million, or $0.20 per common share diluted. Total contract revenues for the quarter ended January 29, 2005 were $224.5 million compared to total contract revenues of $196.4 million for the quarter ended January 24, 2004, an increase of 14.3%. For the six months ended January 29, 2005 net income was $23.0 million, or $0.47 per common share diluted. For the six months ended January 24, 2004 net income was $30.4 million, or $0.62 per common share diluted. Included in the net income for the six months ended January 24, 2004 was a nonrecurring gain of $11.4 million ($6.8 million net of tax) related to the sale of long-term accounts receivable. Excluding this gain, net income for the six months ended January 24, 2004 would have been $23.6 million, or $0.48 per common share diluted. Total contract revenues for the six months ended January 29, 2005 were $487.7 million compared to total contract revenues of $392.4 million for the six months ended January 24, 2004, an increase of 24.3%. Dycom also announced its outlook for the third and fourth quarters of fiscal 2005. The Company currently expects revenue for the third quarter of fiscal 2005 to range from $235 million to $250 million and diluted earnings per share to range from $0.23 to $0.28. For the fourth quarter of fiscal 2005, the Company currently expects revenue to range from $275 million to $295 million and diluted earnings per share to range from $0.35 to $0.45. A Tele-Conference call to review the Company's results and address its outlook will be hosted at 9:00 a.m. (ET), Tuesday, March 1, 2005; Call 800-288-8975 (United States) or 612-332-0802 (International) and request "Dycom Earnings" conference call. A live webcast of the conference call will be available at http://www.dycomind.com. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast will also be available at http://www.dycomind.com until Thursday, March 31, 2005. Dycom is a leading provider of engineering, construction, and maintenance services to telecommunication providers throughout the United States. Additionally, the Company provides similar services related to the installation of integrated voice, data, and video local and wide area networks within office buildings and similar structures. Dycom also provides underground utility locating and mapping and electric utility construction services. This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. Such statements include, but are not limited to, the Company's expectations for revenues and earnings per share. These statements are based on management's current expectations, estimates and projections. Forward-looking statements are subject to risks and uncertainties that may cause actual results in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. Such risks and uncertainties include: business and economic conditions in the telecommunications industry affecting our customers, the adequacy of our insurance and other reserves and allowances for doubtful accounts, whether the carrying value of our assets may be impaired, whether recent acquisitions can be efficiently integrated into our existing operations, the impact of any future acquisitions, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks detailed in our filings with the Securities and Exchange Commission. ---Tables Follow--- NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS January 29, 2005 and July 31, 2004 Unaudited
January 29, July 31, ($ in 000's) 2005 2004 ------------ ----------- ASSETS Current Assets: Cash and equivalents $ 51,834 $ 31,383 Short-term investments 19,379 20,010 Accounts receivable, net 115,651 131,927 Costs and estimated earnings in excess of billings 54,226 58,175 Deferred tax assets, net 12,950 11,923 Income tax receivable 8,161 6,988 Inventories 6,121 5,353 Other current assets 16,186 10,275 ------------ ----------- Total current assets 284,508 276,034 Property and equipment, net 110,531 100,353 Intangible assets, net 258,232 259,319 Deferred tax assets, net non-current - 5,561 Other 15,051 10,568 ------------ ----------- Total $ 668,322 $ 651,835 ============ =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 26,195 $ 34,348 Notes and capital leases payable 3,882 4,163 Billings in excess of costs and estimated earnings 539 142 Accrued self-insured claims 26,254 22,297 Other accrued liabilities 37,079 41,528 ------------ ----------- Total current liabilities 93,949 102,478 Notes and capital leases payable 5,078 7,094 Accrued self-insured claims 22,075 22,473 Deferred tax liabilities, net 28 - Other liabilities 521 829 Stockholders' Equity 546,671 518,961 ------------ ----------- Total $ 668,322 $ 651,835 ============ ===========
NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited
Three Months Ended Six Months Ended --------------------------- -------------------------- January 29, January 24, January 29, January 24, (In 000's, except Earnings per share) 2005 2004 2005 2004 ------------ ----------- ----------- ----------- Contract revenues earned $ 224,539 $ 196,369 $ 487,704 $ 392,390 Cost of earned revenues, excluding depreciation 181,986 151,224 390,656 298,274 General and administrative 18,931 18,862 36,914 36,370 Depreciation and amortization 12,800 11,009 24,065 20,342 ------------ ----------- ----------- ----------- Total costs and expenses 213,717 181,095 451,635 354,986 ------------ ----------- ----------- ----------- Interest income / (expense), net 191 (284) 146 34 Other income, net 1,183 583 1,777 1,428 Gain on sale of long term accounts receivable - 11,359 - 11,359 ------------ ----------- ----------- ----------- Income before income taxes 12,196 26,932 37,992 50,225 Provision for income taxes 4,822 10,490 14,998 19,856 ------------ ----------- ----------- ----------- Net income $ 7,374 $ 16,442 $ 22,994 $ 30,369 ============ =========== =========== =========== Earnings per common share: Basic earnings per share $ 0.15 $ 0.34 $ 0.47 $ 0.63 ============ =========== =========== =========== Diluted earnings per share $ 0.15 $ 0.34 $ 0.47 $ 0.62 ============ =========== =========== =========== Shares used in computing earnings per common share: Basic 48,689 48,285 48,647 48,157 ============ =========== =========== =========== Diluted 49,343 48,922 49,257 48,712 ============ =========== =========== ===========
NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON GAAP INFORMATION Unaudited
($ in 000's except Earnings per share) Three Months Ended Six Months Ended --------------------------- -------------------------- January 29, January 24, January 24, January 24, 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Item Gain on sale of long term accounts receivable, net of taxes of $4,544 $ - $ 6,815 $ - $ 6,815 GAAP net income $ 7,374 $ 16,442 $ 22,994 $ 30,369 Adjusted for items above - (6,815) - (6,815) ---------- --------- --------- --------- Non GAAP net income $ 7,374 $ 9,627 $ 22,994 $ 23,554 ========== ========= ========= ========= Earnings per common share: Basic earnings per share - GAAP $ 0.15 $ 0.34 $ 0.47 $ 0.63 Basic earnings per share - Adjustment for gain on sale of long term accounts receivable, net of taxes of $4,544 - (0.14) - (0.14) ---------- --------- --------- --------- Basic earnings per share - Non GAAP $ 0.15 $ 0.20 $ 0.47 $ 0.49 ========== ========= ========= ========= Diluted earnings per share - GAAP $ 0.15 $ 0.34 $ 0.47 $ 0.62 Diluted earnings per share - Adjustment for gain on sale of long term accounts receivable, net of taxes of $4,544 - (0.14) - (0.14) ---------- --------- --------- --------- Diluted earnings per share - Non GAAP $ 0.15 $ 0.20 $ 0.47 $ 0.48 ========== ========= ========= ========= Shares used in computing earnings per common share: Basic 48,689 48,285 48,647 48,157 ========== ========= ========= ========= Diluted 49,343 48,922 49,257 48,712 ========== ========= ========= =========