EX-99.1 2 g16812exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 Press Release
Exhibit 99.1
(GCOM INDUSTRIES INC. LOGO)
NEWS RELEASE
         
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   November 24, 2008
DYCOM ANNOUNCES FISCAL 2009 FIRST QUARTER RESULTS AND
PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, November 24, 2008 — Dycom Industries, Inc. (NYSE: DY) announced today its results for the first quarter ended October 25, 2008. The Company reported income from continuing operations for the quarter ended October 25, 2008 of $10.6 million, or $0.27 per common share diluted, versus income from continuing operations for the quarter ended October 27, 2007 of $15.3 million, or $0.37 per common share diluted. On a non-GAAP basis, excluding the write-off of deferred financing costs of $0.6 million, income from continuing operations for the quarter ended October 25, 2008 was $10.9 million, or $0.28 per common share diluted, versus income from continuing operations for the quarter ended October 27, 2007 of $15.3 million, or $0.37 per common share diluted. The write-off resulted from the Company replacing its existing credit facility with a new $195 million three year facility. Net income, including the results of discontinued operations, for the quarter ended October 25, 2008 was $10.5 million, or $0.27 per common share diluted, compared to $14.9 million, or $0.36 per common share diluted for the quarter ended October 27, 2007. Total contract revenues from continuing operations for the quarter ended October 25, 2008 were $334.0 million, including approximately $15 million from work related to hurricanes that impacted the Southern United States during the quarter, compared to total contract revenues from continuing operations of $329.7 million for the quarter ended October 27, 2007, an increase of 1.3%.
Steven Nielsen, President and CEO stated, “We performed well during our first fiscal quarter with revenue and earnings exceeding our expectations despite an economic environment that became more challenging as the quarter progressed. As we look to the second quarter, our guidance reflects an economy now in recession. Accordingly, we have implemented a number of corporate initiatives including reductions in general and administrative expenses and capital expenditures. These second quarter initiatives are intended to fortify our already strong balance sheet and meaningfully increase our already robust liquidity. While we expect the economic environment to impact the spending plans of our customers, we are encouraged that our major customers possess significant financial strength and remain committed to multi-year capital spending initiatives.”
Dycom announced its outlook for the second quarter of fiscal 2009. The Company currently expects revenue for the second quarter of fiscal 2009 to range from $250 million to $270 million and diluted earnings per share to range from $0.02 to $0.07.

 

 

A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Tuesday, November 25, 2008; Call 800-288-8960 (United States) or 612-332-0523 International) and request “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 will also be available at http://www.dycomind.com until Thursday, December 25, 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.
The fiscal 2009 first quarter results are preliminary and the 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—

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
October 25, 2008 and July 26, 2008
Unaudited
                 
    October 25,     July 26,  
    2008     2008  
    ($ in 000’s)  
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 45,723     $ 22,068  
Accounts receivable, net
     155,791       146,420  
Costs and estimated earnings in excess of billings
     96,231       94,270  
Deferred tax assets, net
     16,779       19,347  
Income taxes receivable
     2,241       6,014  
Inventories
     10,135       8,994  
Other current assets
     11,945       7,301  
Current assets of discontinued operations
     618       667  
 
            
 
                
Total current assets
     339,463       305,081  
 
                
Property and equipment, net
     164,597       170,479  
Goodwill
     240,138       240,138  
Intangible assets, net
     61,035       62,860  
Other
     11,428       10,478  
 
            
 
                
Total
   $ 816,661     $ 789,036  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 32,994     $ 29,835  
Current portion of debt
     2,064       2,306  
Billings in excess of costs and estimated earnings
     311       483  
Accrued insurance claims
     29,883       29,834  
Other accrued liabilities
     47,934       66,275  
Current liabilities of discontinued operations
     1,828       2,731  
 
            
 
                
Total current liabilities
     115,014       131,464  
 
                
Long-term debt
     180,621       151,049  
Accrued insurance claims
     39,118       37,175  
Deferred tax liabilities, net non-current
     19,947       19,514  
Other liabilities
     5,717       5,314  
Non-current liabilities of discontinued operations
     437       427  
 
                
Stockholders’ Equity
     455,807       444,093  
 
            
 
                
Total
   $ 816,661     $ 789,036  
 
            

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                 
    Three Months     Three Months  
    Ended     Ended  
    October 25,     October 27,  
    2008     2007  
    (In 000’s, except per share amounts)  
Contract revenues
   $ 333,967     $ 329,672  
 
            
 
                
Cost of earned revenues, excluding depreciation and amortization
     268,646       261,312  
General and administrative expenses (1)
     27,540       25,608  
Depreciation and amortization
     16,612       16,047  
 
            
 
                
Total
     312,798       302,967  
 
            
 
                
Interest income
     135       210  
Interest expense
     (4,052 )     (3,556 )
Other income, net
     402       1,572  
 
            
 
                
Income from continuing operations before income taxes
     17,654       24,931  
 
                
Provision for income taxes
     7,068       9,674  
 
            
 
                
Income from continuing operations
     10,586       15,257  
 
                
Loss from discontinued operations, net of tax
     (38 )     (330 )
 
            
 
                
Net income
   $ 10,548     $ 14,927  
 
            
 
                
Earnings per common share — Basic:
                
 
                
Income from continuing operations
   $ 0.27     $ 0.37  
Loss from discontinued operations
     —       (0.01 )
 
            
Net income
   $ 0.27     $ 0.37  
 
            
 
                
Earnings per common share — Diluted:
                
 
                
Income from continuing operations
   $ 0.27     $ 0.37  
Loss from discontinued operations
     —       (0.01 )
 
            
Net income
   $ 0.27     $ 0.36  
 
            
 
                
Shares used in computing earnings per common share:
                
Basic
     39,321,662       40,718,872  
 
            
 
                
Diluted
     39,421,590       41,174,497  
 
            
Earnings per share amounts may not add due to rounding.
 
(1)   Includes stock-based compensation expense of $1.5 million and $2.1 million for the three months ended October 25, 2008 and October 27, 2007, respectively.

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
                 
    Three Months     Three Months  
    Ended     Ended  
    October 25,     October 27,  
    2008     2007  
    (In 000’s, except per share amounts)  
Item:
                
Write-off of deferred financing costs
   $ (551 )   $ —  
 
            
 
                
GAAP income from continuing operations
   $ 10,586     $ 15,257  
Adjustment for item above, net of tax
     330       —  
 
            
Non-GAAP income from continuing operations
   $ 10,916     $ 15,257  
 
            
 
                
Earnings per common share from continuing operations:
                
 
                
Basic earnings per share from continuing operations — GAAP
   $ 0.27     $ 0.37  
Adjustment for item above
     0.01       —  
 
            
Basic earnings per share from continuing operations — Non-GAAP
   $ 0.28     $ 0.37  
 
            
 
                
Diluted earnings per share from continuing operations — GAAP
   $ 0.27     $ 0.37  
Adjustment for item above
     0.01       —  
 
            
Diluted earnings per share from continuing operations- Non-GAAP
   $ 0.28     $ 0.37  
 
            
 
                
Shares used in computing GAAP and Non-GAAP earnings per common share from continuing operations and adjustment for item above:
 
                
Basic
     39,321,662       40,718,872  
 
            
 
                
Diluted
     39,421,590       41,174,497