EX-99.1 2 g14926exv99w1.htm EX-99.1 PRESS RELEASE ANNOUNCING THE FOUTH QUARTER RESULTS EX-99.1 Press release announcing the fouth quarter
Exhibit 99.1
(DYCOM LETTERHEAD)
N E W S      R E L E A S E

FOR IMMEDIATE RELEASE   Contact:   Steven E. Nielsen, President and CEO
        H. Andrew DeFerrari, Senior Vice President and CFO
        (561) 627-7171

Palm Beach Gardens, Florida   August 26, 2008
DYCOM ANNOUNCES FISCAL 2008 FOURTH QUARTER RESULTS AND
PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, August 26, 2008—Dycom Industries, Inc. (NYSE: DY) announced its results today for the fourth quarter ended July 26, 2008. The Company reported income from continuing operations for the quarter ended July 26, 2008 on a non-GAAP basis of $9.1 million, or $0.23 per common share diluted. This excludes a non-cash impairment charge of $9.7 million resulting from the Company’s annual goodwill impairment test and a reduction of interest and income tax expense of $0.4 million and $1.1 million, respectively, related to the reversal of certain income tax related liabilities. The combined effect of these items was to decrease income from continuing operations by $4.5 million, net of tax, or $0.11 per common share diluted, for the quarter ended July 26, 2008. On a GAAP basis, income from continuing operations for the quarter ended July 26, 2008 was $4.6 million, or $0.12 per common share diluted, versus income from continuing operations for the quarter ended July 28, 2007 of $14.5 million, or $0.35 per common share diluted. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Total contract revenues for the quarter ended July 26, 2008 were $322.1 million compared to total contract revenues of $317.3 million for the quarter ended July 28, 2007, an increase of 1.5%. Stock-based compensation expense for the quarter ended July 26, 2008 and quarter ended July 28, 2007 was $0.6 million and $1.5 million, respectively, on a pre-tax basis.
For the year ended July 26, 2008, income from continuing operations on a non-GAAP basis was $31.4 million, or $0.77 per common share diluted. This excludes the non-cash goodwill impairment charge and reductions in interest and income tax expense, an accrual related to the previously announced wage and hour class action settlement and the reversal of a pre-acquisition payroll related accrual for the year ended July 26, 2008. On a combined basis, these items decreased income from continuing operations $7.0 million, net of tax, or $0.17 per common share diluted, for the year ended July 26, 2008. For the year ended July 28, 2007, income from continuing operations on a non-GAAP basis was $40.7 million, or $1.00 per common share diluted, excluding a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. On a GAAP basis, income from continuing operations for the year ended July 26, 2008 was $24.4 million, or $0.60 per common share diluted, compared to income from continuing operations of $42.2 million, or $1.04 per common share diluted, for the year ended July 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Total contract revenues from continuing operations for the year ended July 26, 2008 were $1.230 billion compared to total contract revenues from continuing operations of $1.138 billion for the year ended July 28, 2007, an increase of 8.1%. Stock-based compensation expense for the year ended July 26, 2008 and the year ended July 28, 2007 was $5.2 million and $6.2 million, respectively, on a pre-tax basis.
Net income, including the results of discontinued operations, for the quarter ended July 26, 2008 was $3.1 million, or $0.08 per common share diluted, compared to $14.3 million, or $0.35 per common share diluted for the quarter ended July 28, 2007. Net income, including the results of discontinued operations, for the year ended July 26, 2008 was $21.7 million, or $0.53 per common share diluted, compared to $41.9 million, or $1.03 per common share diluted, for the year ended July 28, 2007.

 

Dycom also announced its outlook for the first quarter of fiscal 2009. The Company currently expects revenue for the first quarter of fiscal 2009 to range from $305 million to $325 million and diluted earnings per share to range from $0.18 to $0.23. 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 27, 2008; Call 800-230-1059 (United States) or 612-234-9959 (International) ten minutes before the conference call begins and ask for the “Dycom Results” conference call. A live webcast of the conference call, along with a slide presentation, will be available at http://www.dycomind.com under the heading “Investors” and subheading “Event Details”. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the slide presentation will also be available at http://www.dycomind.com until Friday, September 26, 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 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, 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—

2

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 26, 2008 and July 28, 2007
Unaudited
                 
    July 26,     July 28,  
    2008     2007  
    ($ in 000’s)  
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 22,068     $ 18,862  
Accounts receivable, net
     146,420       146,864  
Costs and estimated earnings in excess of billings
     94,270       95,392  
Deferred tax assets, net
     19,474       15,478  
Income taxes receivable
     6,014       —  
Inventories
     8,994       8,268  
Other current assets
     7,301       7,266  
Current assets of discontinued operations
     667       307  
 
            
Total current assets
     305,208       292,437  
 
                
Property and equipment, net
     170,479       164,544  
Intangible assets, net
     302,998       320,952  
Other
     10,478       11,831  
 
            
Total
   $ 789,163     $ 789,764  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 29,835     $ 30,375  
Current portion of debt
     2,306       3,301  
Billings in excess of costs and estimated earnings
     483       712  
Accrued insurance claims
     29,834       26,902  
Income taxes payable
     —       1,947  
Other accrued liabilities
     66,275       63,076  
Current liabilities of discontinued operations
     2,731       939  
 
            
Total current liabilities
     131,464       127,252  
 
                
Long-term debt
     151,049       163,509  
Accrued insurance claims
     37,175       33,085  
Deferred tax liabilities, net non-current
     19,641       19,316  
Other liabilities
     5,314       1,322  
Non-current liabilities of discontinued operations
     427       649  
Stockholders’ Equity
     444,093       444,631  
 
            
 
                
Total
   $ 789,163     $ 789,764  
 
            

 

 

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 26,     July 28,     July 26,     July 28,  
    2008     2007     2008     2007  
    (In 000’s, except per share amounts)  
 
                                
Contract revenues
   $ 322,087     $ 317,324     $ 1,229,956     $ 1,137,812  
 
                        
 
                                
Cost of earned revenues, excluding depreciation and amortization
     262,403       253,057       1,011,219       915,250  
General and administrative expenses (1)
     26,050       23,304       98,942       90,090  
Depreciation and amortization
     17,030       15,835       67,288       57,799  
Goodwill impairment charge
     9,672       —       9,672       —  
 
                        
 
                                
Total
     315,155       292,196       1,187,121       1,063,139  
 
                        
 
                                
Interest income
     73       165       691       966  
Interest expense
     (2,865 )     (3,503 )     (13,096 )     (14,809 )
Other income, net
     2,113       1,833       7,154       8,647  
 
                        
 
                                
Income from continuing operations before income taxes
     6,253       23,623       37,584       69,477  
 
                                
Provision for income taxes
     1,666       9,165       13,180       27,275  
 
                        
 
                                
Income from continuing operations
     4,587       14,458       24,404       42,202  
 
                                
Loss from discontinued operations, net of tax (2)
     (1,497 )     (164 )     (2,726 )     (318 )
 
                        
 
                                
Net income
   $ 3,090     $ 14,294     $ 21,678     $ 41,884  
 
                        
 
                                
Earnings per common share — Basic:
                                
 
                                
Income from continuing operations
   $ 0.12     $ 0.36     $ 0.60     $ 1.04  
Loss from discontinued operations
     (0.04 )     —       (0.07 )     (0.01 )
 
                        
Net income
   $ 0.08     $ 0.35     $ 0.54     $ 1.04  
 
                        
 
                                
Earnings per common share — Diluted:
                                
 
                                
Income from continuing operations
   $ 0.12     $ 0.35     $ 0.60     $ 1.04  
Loss from discontinued operations
     (0.04 )     —       (0.07 )     (0.01 )
 
                        
Net income
   $ 0.08     $ 0.35     $ 0.53     $ 1.03  
 
                        
 
                                
Shares used in computing earnings per common share:
                                
Basic
     39,718,070       40,659,201       40,417,945       40,407,641  
 
                        
 
                                
Diluted
     39,801,674       41,066,597       40,601,739       40,713,895  
 
                        
Earnings per share amounts may not add due to rounding.
 
(1)   Includes stock-based compensation expense of $0.6 million and $5.2 million for the three and twelve months ended July 26, 2008, respectively, and $1.5 million and $6.2 million for the three and twelve months ended July 28, 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.

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
                                 
    Three Months     Three Months     Twelve Months     Twelve Months  
    Ended     Ended     Ended     Ended  
    July 26,     July 28,     July 26,     July 28,  
    2008     2007     2008     2007  
    (In 000’s, except per share amounts)  
Items:
                                
Goodwill impairment charge
   $ (9,672 )   $ —     $ (9,672 )   $ —  
Reversal of interest expense on income tax related liabilities
     377       —       716       —  
Reversal of income tax related liabilities
     1,133       —       1,991       —  
Charge for wage and hour litigation
     —       —       (7,591 )     —  
Reversal of pre-acquisition payroll related accruals
     —       —       1,680       —  
Gain on sale of real estate
     —       —       —       2,485  
 
                        
 
   $ (8,162 )   $ —     $ (12,876 )   $ 2,485  
 
                        
 
                                
GAAP income from continuing operations
   $ 4,587     $ 14,458     $ 24,404     $ 42,202  
Adjustment for items above, net of tax
     4,507       —       6,953       (1,508 )
 
                        
Non-GAAP income from continuing operations
   $ 9,094     $ 14,458     $ 31,357     $ 40,694  
 
                        
 
                                
Earnings per common share from continuing operations:
                                
 
                                
Basic earnings per share from continuing operations — GAAP
   $ 0.12     $ 0.36       0.60     $ 1.04  
Adjustment for items above
     0.11       —       0.17       (0.04 )
 
                        
Basic earnings per share from continuing operations — Non-GAAP (1)
   $ 0.23     $ 0.36       0.78     $ 1.01  
 
                        
 
                                
Diluted earnings per share from continuing operations — GAAP
   $ 0.12     $ 0.35       0.60     $ 1.04  
Adjustment for items above
     0.11       —       0.17       (0.04 )
 
                        
Diluted earnings per share from continuing operations- Non-GAAP (1)
   $ 0.23     $ 0.35       0.77     $ 1.00  
 
                        
 
                                
Shares used in computing GAAP earnings per common share from continuing operations and adjustment for items above (2):
 
                                
Basic
     39,718,070       40,659,201       40,417,945       40,407,641  
 
                        
 
                                
Diluted
     39,801,674       41,066,597       40,601,739       40,713,895  
 
                        
 
                                
Shares used in computing Non-GAAP earnings per common share from continuing operations (2):
 
                                
Basic
     39,718,070       40,659,201       40,417,945       40,407,641  
 
                        
 
                                
Diluted
     39,801,674       41,066,597       40,628,916       40,713,895  
 
                        
 
(1)   Amounts may not add due to rounding.
 
(2)   On each of August 28, 2007 and May 20, 2008, the Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock over an eighteen month period in open market or private transactions (for a cumulative authorization of $30 million). The Company repurchased 677,300 shares of its common stock during the three months ended July 26, 2008. The total amount repurchased during the twelve months ended July 26, 2008 was 1,693,500 shares.