EX-99.1 3 g03231exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 Press Release
 

EXHIBIT 99.1
(Dycom Logo)
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   August 29, 2006
DYCOM ANNOUNCES FISCAL 2006 FOURTH QUARTER EARNINGS AND PROVIDES
GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, August 29, 2006—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the fourth quarter ended July 29, 2006. The Company reported net income for the quarter ended July 29, 2006 of $10.1 million, or $0.25 per common share diluted, versus a net loss for the quarter ended July 30, 2005 of $12.4 million, or a loss of $0.25 per common share diluted. Included in the net loss for the quarter ended July 30, 2005 was a goodwill impairment charge of approximately $29.0 million (or $0.59 per common share diluted) related to the Company’s White Mountain Cable Construction (“WMCC”) subsidiary. Excluding this item, non-GAAP net income for the quarter ended July 30, 2005 was $16.6 million, or $0.34 per common share diluted. Total contract revenues for the quarter ended July 29, 2006 were $259.9 million compared to total contract revenues of $251.3 million for the quarter ended July 30, 2005, an increase of 3.5%. Stock-based compensation expense for the quarter ended July 29, 2006 and quarter ended July 30, 2005 was $1.4 million and $0.3 million, respectively, on a pre-tax basis.
For the year ended July 29, 2006 net income was $18.2 million, or $0.43 per common share diluted. For the year ended July 30, 2005 net income was $24.3 million, or $0.49 per common share diluted. Included in the net income for the year ended July 29, 2006 was a goodwill impairment charge of approximately $14.8 million (or $0.35 per common share diluted) related to the Company’s Can Am Communications subsidiary. Excluding this item, non-GAAP net income for the year ended July 29, 2006 was $33.0 million, or $0.78 per common share diluted. Included in the net income for the year ended July 30, 2005 was a goodwill impairment charge of approximately $29.0 million (or $0.59 per common share diluted) related to the Company’s WMCC subsidiary. Excluding this item, non-GAAP net income for the year ended July 30, 2005 was $53.3 million, or $1.08 per common share diluted. Total contract revenues for the year ended July 29, 2006 were $1.024 billion compared to total contract revenues of $986.6 million for the year ended July 30, 2005, an increase of 3.8%. Stock-based compensation expense for the year ended July 29, 2006 and the year ended July 30, 2005 was $4.7 million and $1.0 million, respectively, on a pre-tax basis.
Dycom also announced its outlook for the first quarter of fiscal 2007. The Company currently expects revenue for the first quarter of fiscal 2007 to range from $250 million to $270 million and diluted

 

 

earnings per share to range from $0.22 to $0.27. Included in the expected results is stock-based compensation expense of approximately $1.8 million on a pre-tax basis.
A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, August 30, 2006; Call 877-209-0397 (United States) or 612-332-0819 (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 Friday, September 29, 2006.
Dycom is a leading provider of specialty contracting services throughout the United States. These services include engineering, construction, maintenance and installation services to telecommunications providers, underground locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2006 results are preliminary and the quarterly and annual information is unaudited. 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 our recent acquisition 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. The Company does not undertake to update forward-looking statements.
—Tables Follow—

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 29, 2006 and July 30, 2005
Unaudited
                 
    July 29,   July 30,
    2006   2005
    ($ in 000’s)
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 27,268     $ 83,062  
Accounts receivable, net
     146,906       161,321  
Costs and estimated earnings in excess of billings
     79,546       65,559  
Deferred tax assets, net
     13,223       12,535  
Inventories
     7,981       8,116  
Other current assets
     9,384       11,286  
 
                
 
                
Total current assets
     284,308       341,879  
 
                
Property and equipment, net
     126,646       117,145  
Intangible assets, net
     265,133       227,443  
Other
     13,928       10,242  
 
                
 
                
Total
   $ 690,015     $ 696,709  
 
                
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 29,052     $ 37,185  
Current portion of debt
     5,169       2,749  
Billings in excess of costs and estimated earnings
     397       464  
Accrued self-insured claims
     27,088       28,166  
Income taxes payable
     4,979       6,598  
Other accrued liabilities
     45,109       43,550  
 
                
 
                
Total current liabilities
     111,794       118,712  
 
                
Long-term debt
     150,009       4,179  
Accrued self-insured claims
     32,471       22,652  
Deferred tax liabilities, net non-current
     5,997       1,299  
Other liabilities
     289       57  
 
                
Stockholders’ Equity
     389,455       549,810  
 
                
 
                
Total
   $ 690,015     $ 696,709  
 
                

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                                 
    Three Months   Three Months   Twelve Months   Twelve Months
    Ended   Ended   Ended   Ended
    July 29,   July 30,   July 29,   July 30,
    2006   2005   2006   2005
    (In 000’s, except per share amounts)
 
                                
Contract revenues
   $ 259,944     $ 251,263     $ 1,023,673     $ 986,627  
 
                                
 
                                
Cost of earned revenues
     208,508       199,016       835,889       785,616  
General and administrative expenses (1)
     21,121       21,886       80,868       79,727  
Depreciation and amortization
     12,164       11,003       47,955       46,593  
Goodwill impairment charge
     —       28,951       14,835       28,951  
 
                                
 
                                
Total
     241,793       260,856       979,547       940,887  
 
                                
 
                                
Interest income
     373       559       1,912       1,341  
Interest expense
     (3,476 )     (97 )     (11,990 )     (417 )
Other income, net
     2,109       6,978       6,382       11,970  
 
                                
 
                                
Income (loss) before income taxes
     17,157       (2,153 )     40,430       58,634  
 
                                
Provision for income taxes
     7,068       10,240       22,250       34,320  
 
                                
 
                                
Net income (loss)
   $ 10,089     $ (12,393 )   $ 18,180     $ 24,314  
 
                                
 
                                
Earnings (loss) per common share:
                                
 
                                
Basic earnings (loss) per share
   $ 0.25     $ (0.25 )   $ 0.43     $ 0.50  
 
                                
 
                                
Diluted earnings (loss) per share
   $ 0.25     $ (0.25 )   $ 0.43     $ 0.49  
 
                                
 
                                
Shares used in computing earnings (loss) per common share (2):
                                
Basic
     40,191,164       48,849,497       41,835,966       48,746,745  
 
                                
 
                                
Diluted
     40,425,555       48,849,497       42,056,597       49,184,570  
 
                                
 
(1)   Includes stock-based compensation expense of $1.4 million and $4.7 million for the three and twelve months ended July 29, 2006, respectively, and $0.3 million and $1.0 million for the three and twelve months ended July 30, 2005, respectively.
 
(2)   The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
($ in 000’s except per share amounts)
                                 
    Three Months   Three Months   Twelve Months   Twelve Months
    Ended   Ended   Ended   Ended
    July 29,   July 30,   July 29,   July 30,
    2006   2005   2006   2005
Item
                                
Goodwill impairment charge
   $ —     $ 28,951     $ 14,835     $ 28,951  
 
                                
 
                                
GAAP net income (loss)
   $ 10,089     $ (12,393 )   $ 18,180     $ 24,314  
Adjusted for item above
     —       28,951       14,835       28,951  
 
                                
Non-GAAP net income
   $ 10,089     $ 16,558     $ 33,014     $ 53,265  
 
                                
 
                                
Earnings (loss) per common share:
                                
 
                                
Basic income (loss) per share — GAAP
   $ 0.25     $ (0.25 )   $ 0.43     $ 0.50  
Adjustment for item above
     —       0.59       0.35       0.59  
 
                                
Basic earnings per share — Non-GAAP
   $ 0.25     $ 0.34     $ 0.79     $ 1.09  
 
                                
 
                                
Diluted earnings (loss) per share — GAAP
   $ 0.25     $ (0.25 )   $ 0.43     $ 0.49  
Adjustment for item above
     —       0.59       0.35       0.59  
 
                                
Diluted earnings per share — Non-GAAP
   $ 0.25     $ 0.34     $ 0.78     $ 1.08  
 
                                
Shares used in computing GAAP earnings (loss) per common share and adjustment for item above:
                                
 
                                
Basic
     40,191,164       48,849,497       41,835,966       48,746,745  
 
                                
Diluted
     40,425,555       48,849,497       42,056,597       49,184,570  
 
                                
 
                                
Shares used in computing Non-GAAP earnings per common share:
                                
Basic
     40,191,164       48,849,497       41,835,966       48,746,745  
 
                                
Diluted
     40,425,555       49,132,573       42,056,597       49,184,570