EX-99.1 2 g12006exv99w1.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   February 26, 2008
DYCOM ANNOUNCES FISCAL 2008 SECOND QUARTER RESULTS AND
PROVIDES GUIDANCE FOR THE THIRD QUARTER OF FISCAL 2008
Palm Beach Gardens, Florida, February 26, 2008—Dycom Industries, Inc. (NYSE: “DY”) announced today its results for the second quarter ended January 26, 2008. The Company reported a loss from continuing operations for the quarter ended January 26, 2008 of ($3.1) million, or ($0.08) per common share diluted, versus income from continuing operations for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted. Net loss, including the results of discontinued operations, for the quarter ended January 26, 2008 was ($3.2) million, or ($0.08) per common share diluted, compared to net income of $5.6 million, or $0.14 per common share diluted, for the quarter ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company’s subsidiaries, earnings from continuing operations for the quarter ended January 26, 2008 were $1.5 million, or $0.04 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 26, 2008 were $284.8 million compared to $258.3 million for the quarter ended January 27, 2007, an increase of 10.2%. Stock based compensation expense for the quarter ended January 26, 2008 and quarter ended January 27, 2007 was $1.0 million and $1.6 million, respectively, on a pre-tax basis.
For the six months ended January 26, 2008 income from continuing operations was $12.1 million, or $0.30 per common share diluted, versus income from continuing operations for the six months ended January 27, 2007 of $15.2 million, or $0.37 per common share diluted. Net income, including the results of discontinued operations, for the six months ended January 26, 2008 was $11.7 million or $0.28 per common share diluted, compared to net income of $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company’s subsidiaries, income from continuing operations for the six months ended January 26, 2008 was $16.7 million, or $0.41 per common share on a fully diluted basis. Total contract revenues from continuing operations for the six months ended January 26, 2008 were $614.4 million compared to $528.8 million for the six months ended January 27, 2007, an increase of 16.2%. Stock based compensation expense for the six months ended January 26, 2008 and the six months ended January 27, 2007 was $3.2 million and $3.3 million, respectively, on a pre-tax basis.

 

 

Dycom also announced its outlook for the third quarter of fiscal 2008. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2008 to range from $270 million to $295 million and diluted earnings per share from continuing operations to range from $0.08 to $0.13, including stock based compensation expense of approximately $1.2 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, February 27, 2008; Call 800-230-1059 (United States) or 612-332-0923 (International) and request “Dycom Results” 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, March 29, 2008.
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 facility locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2008 second quarter and six-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, stock-based compensation expense 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—

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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
January 26, 2008 and July 28, 2007
Unaudited
                 
    January 26,     July 28,  
    2008     2007  
    ($ in 000’s)  
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 27,259     $ 18,862  
Accounts receivable, net
     128,770       146,864  
Costs and estimated earnings in excess of billings
     79,092       95,392  
Deferred tax assets, net
     19,448       15,478  
Income taxes receivable
     9,170       —  
Inventories
     9,538       8,268  
Other current assets
     12,416       7,266  
Current assets of discontinued operations
     255       307  
 
            
Total current assets
     285,948       292,437  
Property and equipment, net
     174,251       164,544  
Intangible assets, net
     317,012       320,952  
Other
     11,207       11,831  
 
            
Total
   $ 788,418     $ 789,764  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 25,674     $ 30,375  
Current portion of debt
     2,883       3,301  
Billings in excess of costs and estimated earnings
     1,067       712  
Accrued self-insured claims
     29,774       26,902  
Income taxes payable
     —       1,947  
Other accrued liabilities
     60,042       63,076  
Current liabilities of discontinued operations
     1,126       939  
 
            
Total current liabilities
     120,566       127,252  
 
                
Long-term debt
     152,119       163,509  
Accrued self-insured claims
     35,624       33,085  
Deferred tax liabilities, net non-current
     16,767       19,316  
Other liabilities
     8,178       1,322  
Non-current liabilities of discontinued operations
     565       649  
Stockholders’ Equity
     454,599       444,631  
 
            
Total
   $ 788,418     $ 789,764  
 
            

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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                                 
    Three Months     Three Months     Six Months     Six Months  
    Ended     Ended     Ended     Ended  
    January 26,     January 27,     January 26,     January 27,  
    2008     2007     2008     2007  
    (In 000’s, except per share amounts)  
Contract revenues
   $ 284,758     $ 258,293     $ 614,430     $ 528,846  
 
                        
 
                                
Cost of earned revenues, excluding depreciation and amortization
     247,906       210,771       509,218       428,536  
General and administrative expenses (1)
     22,315       21,395       47,923       43,074  
Depreciation and amortization
     16,910       14,142       32,957       26,637  
 
                        
 
                                
Total
     287,131       246,308       590,098       498,247  
 
                        
 
                                
Interest income
     171       234       381       627  
Interest expense
     (3,566 )     (3,953 )     (7,122 )     (7,710 )
Other income, net
     798       1,129       2,370       1,624  
 
                        
 
                                
Income (loss) from continuing operations before income taxes
     (4,970 )     9,395       19,961       25,140  
 
                                
Provision (benefit) for income taxes
     (1,837 )     3,747       7,837       9,966  
 
                        
 
                                
Income (loss) from continuing operations
     (3,133 )     5,648       12,124       15,174  
 
                                
Loss from discontinued operations, net of tax (2)
     (93 )     (63 )     (422 )     (29 )
 
                        
 
                                
Net income (loss)
   $ (3,226 )   $ 5,585     $ 11,702     $ 15,145  
 
                        
 
                                
Earnings (loss) per common share — Basic:
                                
 
                                
Income (loss) from continuing operations
   $ (0.08 )   $ 0.14     $ 0.30     $ 0.38  
Loss from discontinued operations
     —       —       (0.01 )     —  
 
                        
Net income (loss)
   $ (0.08 )   $ 0.14     $ 0.29     $ 0.38  
 
                        
 
                                
Earnings (loss) per common share — Diluted:
                                
 
                                
Income (loss) from continuing operations
   $ (0.08 )   $ 0.14     $ 0.30     $ 0.37  
Loss from discontinued operations
     —       —       (0.01 )     —  
 
                        
Net income (loss)
   $ (0.08 )   $ 0.14     $ 0.28     $ 0.37  
 
                        
 
                                
Shares used in computing earnings (loss) per common share:
                                
Basic
     40,799,664       40,295,932       40,759,267       40,253,498  
 
                        
 
                                
Diluted
     40,799,664       40,599,162       41,073,223       40,553,092  
 
                        
Earnings per share amounts may not add due to rounding.
 
(1)   Includes stock-based compensation expense of $1.0 million and $3.2 million for the three and six months ended January 26, 2008, respectively, and $1.6 million and $3.3 million for the three and six months ended January 27, 2007, respectively.
 
(2)   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.

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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
                                 
    Three Months     Three Months     Six Months     Six Months  
    Ended     Ended     Ended     Ended  
    January 26,     January 27,     January 26,     January 27,  
    2008     2007     2008     2007  
    (In 000’s, except per share amounts)  
Item:
                                
Charge for wage and hour litigation
   $ (7,591 )   $ —     $ (7,591 )   $ —  
 
                        
 
                                
GAAP income (loss) from continuing operations
   $ (3,133 )   $ 5,648     $ 12,124     $ 15,174  
Adjustment for item above, net of tax
     4,597       —       4,597       —  
 
                        
Non-GAAP income from continuing operations
   $ 1,464     $ 5,648     $ 16,721     $ 15,174  
 
                        
 
                                
Earnings (loss) per common share from continuing operations:
                                
 
                                
Basic earnings (loss) per share from continuing operations — GAAP
   $ (0.08 )   $ 0.14     $ 0.30     $ 0.38  
Adjustment for item above
     0.11       —       0.11       —  
 
                        
Basic earnings per share from continuing operations — Non-GAAP (1)
   $ 0.04     $ 0.14     $ 0.41     $ 0.38  
 
                        
 
                                
Diluted earnings (loss) per share from continuing operations — GAAP
   $ (0.08 )   $ 0.14     $ 0.30     $ 0.37  
Adjustment for item above
     0.11       —       0.11       —  
 
                        
Diluted earnings per share from continuing operations- Non-GAAP (1)
   $ 0.04     $ 0.14     $ 0.41     $ 0.37  
 
                        
 
                                
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for item above:
 
                                
Basic
     40,799,664       40,295,932       40,759,267       40,253,498  
 
                        
 
                                
Diluted
     40,799,664       40,599,162       41,073,223       40,553,092  
 
                        
 
                                
Shares used in computing Non-GAAP earnings per common share from continuing operations:
 
                                
Basic
     40,799,664       40,295,932       40,759,267       40,253,498  
 
                        
 
                                
Diluted
     41,106,655       40,599,162       41,127,577       40,553,092  
 
                        
 
(1)   Amounts may not add due to rounding.

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