EX-99.1 2 g17830exv99w1.htm EX-99.1 EX-99.1
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
        H. Andrew DeFerrari, Senior Vice President and CFO
        (561) 627-7171
Palm Beach Gardens, Florida   February 24, 2009
DYCOM ANNOUNCES FISCAL 2009 SECOND QUARTER RESULTS
Palm Beach Gardens, Florida, February 24, 2009 — Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 24, 2009. The Company reported a loss from continuing operations for the quarter ended January 24, 2009 of ($78.3) million, or ($1.99) per common share, versus a loss from continuing operations for the quarter ended January 26, 2008 of ($3.1) million, or ($0.08) per common share. Total contract revenues from continuing operations for the quarter ended January 24, 2009 were $245.5 million compared to $284.8 million for the quarter ended January 26, 2008, a decrease of 13.8%.
For the quarter ended January 24, 2009, loss from continuing operations included a pre-tax gain of approximately $1.3 million related to the buyback of $4.65 million aggregate principal amount of the Company’s senior subordinated notes due 2015 and a preliminary goodwill impairment charge of $96.8 million. This pre-tax impairment charge is the result of an interim test for impairment prompted by a sustained reduction in the Company’s market capitalization compared to the book value of shareholders’ equity. The interim impairment testing includes a reassessment of a number of valuation assumptions, including customer spending in the current economic environment. The Company expects to complete its impairment analysis in the third quarter of fiscal 2009. For the quarter ended January 26, 2008, loss from continuing operations included a pre-tax $7.6 million charge related to the settlement of a wage and hour class action. On a non-GAAP basis, excluding the aforementioned items, loss from continuing operations for the quarter ended January 24, 2009 was ($1.7) million, or ($0.04) per common share, versus income from continuing operations of $1.5 million, or $0.04 per common share diluted, for the quarter ended January 26, 2008. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
For the six months ended January 24, 2009, loss from continuing operations was ($67.8) million, or ($1.72) per common share, versus income from continuing operations for the six months ended January 26, 2008 of $12.1 million, or $0.30 per common share diluted. Total contract revenues from continuing operations for the six months ended January 24, 2009 were $579.5 million compared to $614.4 million for the six months ended January 26, 2008, a decrease of 5.7%.

 

 

For the six months ended January 24, 2009, loss from continuing operations included the pre-tax gain of approximately $1.3 million and the pre-tax goodwill impairment charge referred to above in addition to a write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company’s credit facility in the first quarter of fiscal 2009. For the six months ended January 26, 2008, income from continuing operations included the $7.6 million pre-tax charge related to the settlement of the wage and hour class action referred to above. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the six months ended January 24, 2009 was $9.2 million, or $0.23 per common share diluted, versus income from continuing operations of $16.7 million, or $0.41 per common share diluted, for the six months ended January 26, 2008. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
A Tele-Conference call to review the Company’s results will be hosted at 9:00 a.m. (ET), Wednesday, February 25, 2009; Call 800-398-9402 (United States) or 612-332-0806 (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 and the slide presentation will be available at http://www.dycomind.com until Friday, March 27, 2009.
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 second 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, goodwill impairment and earnings (loss) 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—

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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
January 24, 2009 and July 26, 2008
Unaudited
                 
    January 24,     July 26,  
    2009     2008  
    ($ in 000's)  
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 74,037     $ 22,068  
Accounts receivable, net
     115,146       146,420  
Costs and estimated earnings in excess of billings
     58,047       94,270  
Deferred tax assets, net
     16,788       19,347  
Income taxes receivable
     10,921       6,014  
Inventories
     9,639       8,994  
Other current assets
     12,820       7,301  
Current assets of discontinued operations
     644       667  
 
            
Total current assets
     298,042       305,081  
 
                
Property and equipment, net
     156,801       170,479  
Goodwill (1)
     159,598       256,394  
Intangible assets, net
     59,334       62,860  
Other
     11,605       10,478  
 
            
Total
   $ 685,380     $ 805,292  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 22,717     $ 29,835  
Current portion of debt
     1,759       2,306  
Billings in excess of costs and estimated earnings
     332       483  
Accrued insurance claims
     32,671       29,834  
Other accrued liabilities
     44,060       66,275  
Current liabilities of discontinued operations
     638       2,731  
 
            
Total current liabilities
     102,177       131,464  
 
                
Long-term debt
     145,678       151,049  
Accrued insurance claims
     34,378       37,175  
Deferred tax liabilities, net non-current (1)
     20,047       35,770  
Other liabilities
     5,830       5,314  
Non-current liabilities of discontinued operations
     473       427  
 
                
Stockholders’ Equity
     376,797       444,093  
 
            
 
                
Total
   $ 685,380     $ 805,292  
 
            
 
(1)   Goodwill and Deferred tax liabilities, net non-current have been increased by $16.3 million on the Condensed Consolidated Balance Sheet of the Company at July 26, 2008. This correction is related to certain prior acquisitions and had no impact on the Company’s Consolidated Statements of Operations or Consolidated Statements of Cash Flows.

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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 24,     January 26,     January 24,     January 26,  
    2009     2008     2009     2008  
    (In 000’s, except per share amounts)  
 
Contract revenues
   $ 245,522     $ 284,758     $ 579,489     $ 614,430  
 
                        
 
                                
Cost of earned revenues, excluding depreciation and amortization
     205,860       247,906       474,506       509,218  
General and administrative expenses (1)
     21,535       22,315       49,074       47,923  
Depreciation and amortization
     16,817       16,910       33,429       32,957  
Goodwill impairment charge
     96,796       —       96,796       —  
 
                        
Total
     341,008       287,131       653,805       590,098  
 
                                
Interest income
     40       171       174       381  
Interest expense
     (4,099 )     (3,566 )     (8,151 )     (7,122 )
Other income, net
     1,832       798       2,234       2,370  
 
                        
 
                                
Income (loss) from continuing operations before income taxes
     (97,713 )     (4,970 )     (80,059 )     19,961  
 
                                
Provision (benefit) for income taxes
     (19,371 )     (1,837 )     (12,301 )     7,837  
 
                        
 
                                
Income (loss) from continuing operations
     (78,342 )     (3,133 )     (67,758 )     12,124  
 
                                
Loss from discontinued operations, net of tax
     —       (93 )     (37 )     (422 )
 
                        
 
                                
Net income (loss)
   $ (78,342 )   $ (3,226 )   $ (67,795 )   $ 11,702  
 
                        
 
                                
Earnings (loss) per common share — Basic:
                                
 
                                
Income (loss) from continuing operations
   $ (1.99 )   $ (0.08 )   $ (1.72 )   $ 0.30  
Loss from discontinued operations
     —       —       —       (0.01 )
 
                        
Net income (loss)
   $ (1.99 )   $ (0.08 )   $ (1.72 )   $ 0.29  
 
                        
 
                                
Earnings (loss) per common share — Diluted:
                                
 
                                
Income (loss) from continuing operations
   $ (1.99 )   $ (0.08 )   $ (1.72 )   $ 0.30  
Loss from discontinued operations
     —       —       —       (0.01 )
 
                        
Net income (loss)
   $ (1.99 )   $ (0.08 )   $ (1.72 )   $ 0.28  
 
                        
 
                                
Shares used in computing earnings (loss) per common share:
                                
Basic
     39,379,470       40,799,664       39,350,611       40,759,267  
 
                        
 
                                
Diluted
     39,379,470       40,799,664       39,350,611       41,073,223  
 
                        
Earnings per share amounts may not add due to rounding.
 
(1)   Includes stock-based compensation expense of $0.3 million and $1.9 million for the three and six months ended January 24, 2009, respectively, and $1.0 million and $3.2 million for the three and six months ended January 26, 2008, respectively.

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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 24,     January 26,     January 24,     January 26,  
    2009     2008     2009     2008  
    (In 000’s, except per share amounts)  
 
Item:
                                
Goodwill impairment charge
   $ (96,796 )   $ —     $ (96,796 )   $ —  
Charge for wage and hour class action settlement
     —       (7,591 )     —       (7,591 )
Gain on debt extinguishment, net
     1,300       —       1,300       —  
Write-off of deferred financing costs
     —       —       (551 )     —  
 
                        
 
   $ (95,496 )   $ (7,591 )   $ (96,047 )   $ (7,591 )
 
                        
 
                                
GAAP income (loss) from continuing operations
   $ (78,342 )   $ (3,133 )   $ (67,758 )   $ 12,124  
Adjustment for items above, net of tax
     76,638       4,597       76,969       4,597  
 
                        
Non-GAAP income (loss) from continuing operations
   $ (1,704 )   $ 1,464     $ 9,211     $ 16,721  
 
                        
 
                                
Earnings (loss) per common share from continuing operations:
                                
 
                                
Basic earnings (loss) per share from continuing operations — GAAP
   $ (1.99 )   $ (0.08 )   $ (1.72 )   $ 0.30  
Adjustment for items above
     1.95       0.11       1.96       0.11  
 
                        
Basic earnings (loss) per common share from continuing operations - Non-GAAP
   $ (0.04 )   $ 0.04     $ 0.23     $ 0.41  
 
                        
 
                                
Diluted earnings (loss) per share from continuing operations — GAAP
   $ (1.99 )   $ (0.08 )   $ (1.72 )   $ 0.30  
Adjustment for items above
     1.95       0.11       1.96       0.11  
 
                        
Diluted earnings (loss) per common share from continuing operations- Non-GAAP
   $ (0.04 )   $ 0.04     $ 0.23     $ 0.41  
 
                        
 
                                
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for items above:
 
                                
Basic
     39,379,470       40,799,664       39,350,611       40,759,267  
 
                        
 
                                
Diluted
     39,379,470       40,799,664       39,350,611       41,073,223  
 
                        
 
                                
Shares used in computing Non-GAAP earnings (loss) per common share from continuing operations:
 
                                
Basic
     39,379,470       40,799,664       39,350,611       40,759,267  
 
                        
 
                                
Diluted
     39,379,470       41,106,655       39,430,966       41,127,577  
 
                        
Earnings per share amounts may not add due to rounding.

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