EX-99.1 2 g07612exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 Press Release
 

EXHIBIT 99.1
(Dycom Letterhead)
NEWS RELEASE
         
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   May 22, 2007
DYCOM ANNOUNCES FISCAL 2007 THIRD QUARTER EARNINGS AND PROVIDES
GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, May 22, 2007—Dycom Industries, Inc. (NYSE: DY) announced its results today for the third quarter ended April 28, 2007. The Company reported income from continuing operations for the quarter ended April 28, 2007 of $12.6 million, or $0.31 per common share diluted, versus a loss from continuing operations for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted. Income from continuing operations for the quarter ended April 28, 2007 includes a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. The loss from continuing operations for the quarter ended April 29, 2006 includes a goodwill impairment charge of approximately $14.8 million net of tax, or $0.37 per common share diluted. Excluding these items, non-GAAP income from continuing operations was $11.1 million, or $0.27 per common share diluted, for the quarter ended April 28, 2007 and $8.3 million, or $0.21 per common share diluted, for the quarter ended April 29, 2006.
For the nine months ended April 28, 2007 income from continuing operations was $27.7 million, or $0.68 per common share diluted. For the nine months ended April 29, 2006 income from continuing operations was $7.9 million, or $0.19 per common share diluted. Income from continuing operations for the nine months ended April 28, 2007 includes a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. Income from continuing operations for the nine months ended April 29, 2006 includes a goodwill impairment charge of approximately $14.8 million net of tax, or $0.35 per common share diluted. Excluding these items, non-GAAP income from continuing operations was $26.2 million, or $0.65 per common share diluted for the nine months ended April 28, 2007 and $22.7 million, or $0.53 per common share diluted, for the nine months ended April 29, 2006.
Total contract revenues from continuing operations for the quarter ended April 28, 2007 were $291.6 million compared to $251.1 million for the quarter ended April 29, 2006, an increase of 16.2%. Total contract revenues from continuing operations for the nine months ended April 28, 2007 were $820.5 million compared to $741.8 million for the nine months ended April 29, 2006, an increase of 10.6%. Included in contract revenues for the three and nine month periods ended April 28, 2007 is $1.4 million

 

 

from a business acquired on March 30, 2007. Stock-based compensation expense, on a pre-tax basis, for the three and nine month periods ended April 28, 2007 was $1.4 million and $ 4.8 million, respectively, compared to stock-based compensation expense of $1.4 million and $3.3 million for the three and nine month periods ended April 29, 2006, respectively .
Net income for the quarter ended April 28, 2007 was $12.4 million, or $0.31 per common share diluted, versus a net loss for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted. Net income for the nine months ended April 28, 2007 was $27.6 million, or $0.68 per common share diluted, versus net income for the nine months ended April 29, 2006 of $8.1 million, or $0.19 per common share diluted.
Dycom also announced its outlook for the fourth quarter of fiscal 2007. The Company currently expects revenue from continuing operations for the fourth quarter of fiscal 2007 to range from $295 million to $315 million and diluted earnings per share from continuing operations to range from $0.29 to $0.34, including stock-based compensation expense of approximately $1.5 million on a pre-tax basis. Management believes that discontinued operations will not have a material impact on the quarter.
A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, May 23, 2007; Call 800-230-1085 (United States) or 612-234-9960 (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, June 22, 2007.
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 2007 third quarter and nine-month results are preliminary and are 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, the impact of any future acquisitions and whether they can be efficiently integrated into our existing operations, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks and uncertainties described in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended July 29, 2006, and other factors discussed from time to time in our other filings with the Securities and Exchange Commission, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake to update forward-looking statements.
—Tables Follow—

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 28, 2007 and July 29, 2006
Unaudited
                 
    April 28,     July 29,  
    2007     2006  
    ($ in 000’s)  
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 15,966     $ 27,268  
Accounts receivable, net
     133,020       143,099  
Costs and estimated earnings in excess of billings
     95,176       79,546  
Deferred tax assets, net
     14,275       12,793  
Inventories
     9,119       7,095  
Other current assets
     10,393       9,311  
Current assets of discontinued operations
     616       5,196  
 
            
Total current assets
     278,565       284,308  
 
                
Property and equipment, net
     160,548       125,393  
Intangible assets, net
     322,076       265,133  
Other
     12,538       13,928  
Non-current assets of discontinued operations
     33       1,253  
 
            
Total
   $ 773,760     $ 690,015  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 25,967     $ 25,715  
Current portion of debt
     3,515       5,169  
Billings in excess of costs and estimated earnings
     645       397  
Accrued self-insured claims
     26,992       25,886  
Income taxes payable
     8,426       4,979  
Other accrued liabilities
     52,107       44,337  
Current liabilities of discontinued operations
     1,495       5,311  
 
            
Total current liabilities
     119,147       111,794  
 
                
Long-term debt
     179,303       150,009  
Accrued self-insured claims
     31,822       30,770  
Deferred tax liabilities, net non-current
     16,756       6,576  
Other liabilities
     1,318       289  
Non-current liabilities of discontinued operations
     1,131       1,122  
 
                
Stockholders’ Equity
     424,283       389,455  
 
            
 
                
Total
   $ 773,760     $ 690,015  
 
            

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                                 
    Three Months     Three Months     Nine Months     Nine Months  
    Ended     Ended     Ended     Ended  
    April 28,     April 29,     April 28,     April 29,  
    2007     2006     2007     2006  
    (In 000’s, except per share amounts)  
Contract revenues
   $ 291,643     $ 251,077     $ 820,488     $ 741,810  
 
                        
 
                                
Cost of earned revenues
     233,657       204,309       662,193       608,581  
General and administrative expenses (1)
     23,712       20,622       66,786       57,999  
Depreciation and amortization
     15,327       11,861       41,964       34,678  
Goodwill impairment charge
     —       14,835       —       14,835  
 
                        
 
                                
Total
     272,696       251,627       770,943       716,093  
 
                        
 
                                
Interest income
     174       327       801       1,540  
Interest expense
     (3,596 )     (3,641 )     (11,306 )     (8,515 )
Other income, net
     5,189       2,894       6,814       4,219  
 
                        
 
                                
Income (loss) from continuing operations before income taxes
     20,714       (970 )     45,854       22,961  
 
                                
Provision for income taxes
     8,144       5,518       18,110       15,059  
 
                        
 
                                
Income (loss) from continuing operations
     12,570       (6,488 )     27,744       7,902  
 
                                
Income (loss) from discontinued operations, net of tax (3)
     (125 )     (15 )     (154 )     188  
 
                        
 
                                
Net income (loss)
   $ 12,445     $ (6,503 )   $ 27,590     $ 8,090  
 
                        
 
                                
Earnings (loss) per common share — Basic:
                                
 
                                
Income (loss) from continuing operations
   $ 0.31     $ (0.16 )   $ 0.69     $ 0.19  
Income (loss) from discontinued operations
     —       —       (0.01 )     —  
 
                        
Net income (loss)
   $ 0.31     $ (0.16 )   $ 0.68     $ 0.19  
 
                        
 
                                
Earnings (loss) per common share — Diluted:
                                
 
                                
Income (loss) from continuing operations
   $ 0.31     $ (0.16 )   $ 0.68     $ 0.19  
Income (loss) from discontinued operations
     —       —       —       —  
 
                        
Net income (loss)
   $ 0.31     $ (0.16 )   $ 0.68     $ 0.19  
 
                        
 
                                
Shares used in computing earnings per common share (2):
                                
Basic
     40,469,787       40,163,176       40,324,503       42,413,595  
 
                        
 
                                
Diluted
     40,770,976       40,163,176       40,622,116       42,628,492  
 
                        
 
(1)   Includes stock-based compensation expense of $1.4 million and $4.8 million for the three and nine months ended April 28, 2007, respectively, and $1.4 million and $3.3 million for the three and nine months ended April 29, 2006, respectively.
 
(2)   The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.
 
(3)   The Company discontinued the operations of one of its subsidiaries in fiscal 2007 and has reported those results separately as discontinued operations in the financial statements for all periods presented.

 

 

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     Nine Months     Nine Months  
    Ended     Ended     Ended     Ended  
    April 28,     April 29,     April 28,     April 29,  
    2007     2006     2007     2006  
Items:
                                
Gain on sale of real estate, net of tax
   $ 1,508     $ —     $ 1,508     $ —  
Goodwill impairment charge, net of tax
     —       (14,835 )     —       (14,835 )
 
                        
 
   $ 1,508     $ (14,835 )   $ 1,508     $ (14,835 )
 
                        
 
                                
GAAP income (loss) from continuing operations
   $ 12,570     $ (6,488 )   $ 27,744     $ 7,902  
Adjustment for items above
     (1,508 )     14,835       (1,508 )     14,835  
 
                        
Non-GAAP income from continuing operations
   $ 11,062     $ 8,347     $ 26,236     $ 22,737  
 
                        
 
                                
Earnings (loss) per common share from continuing operations:
                                
 
                                
Basic earnings (loss) per share from continuing operations — GAAP
   $ 0.31     $ (0.16 )   $ 0.69     $ 0.19  
Adjustment for items above
     (0.04 )     0.37       (0.04 )     0.35  
 
                        
Basic earnings per share from continuing operations — Non-GAAP
   $ 0.27     $ 0.21     $ 0.65     $ 0.54  
 
                        
 
                                
Diluted earnings (loss) per share from continuing operations — GAAP
   $ 0.31     $ (0.16 )   $ 0.68     $ 0.19  
Adjustment for items above
     (0.04 )     0.37       (0.04 )     0.35  
 
                        
Diluted earnings per share from continuing operations — Non-GAAP(1)
   $ 0.27     $ 0.21     $ 0.65     $ 0.53  
 
                        
 
                                
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for items above:
                                
 
                                
Basic
     40,469,787       40,163,176       40,324,503       42,413,595  
 
                        
 
                                
Diluted
     40,770,976       40,163,176       40,622,116       42,628,492  
 
                        
 
                                
Shares used in computing Non-GAAP earnings per common share from continuing operations:
                                
 
                                
Basic
     40,469,787       40,163,176       40,324,503       42,413,595  
 
                        
 
                                
Diluted
     40,770,976       40,395,055       40,622,116       42,628,492  
 
                        
 
(1)   Amounts may not foot due to rounding.