EX-99.1 2 g19203exv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
(DYCOM INDUSTRIES, INC. LETTERHEAD)
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   May 19, 2009
DYCOM ANNOUNCES FISCAL 2009 THIRD QUARTER RESULTS
Palm Beach Gardens, Florida, May 19, 2009—Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 25, 2009. The Company reported:
  •   contract revenues from continuing operations of $257.7 million for the quarter ended April 25, 2009, compared to $293.4 million for the quarter ended April 26, 2008, a decrease of 12.2%;
 
  •   income from continuing operations on a GAAP basis of $7.6 million, or $0.19 per common share diluted, for the quarter ended April 25, 2009, compared to $7.7 million, or $0.19 per common share diluted, for the quarter ended April 26, 2008; and
 
  •   income from continuing operations on a non-GAAP basis of $5.0 million, or $0.13 per common share diluted, for the quarter ended April 25, 2009, compared to $5.5 million, or $0.14 per common share diluted, for the quarter ended April 26, 2008.
Non-GAAP income from continuing operations for the quarter ended April 25, 2009 excludes a pre-tax gain of $1.7 million related to the buyback of $10.0 million principal amount of the Company’s senior subordinated notes due 2015, and a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax liabilities no longer required. For the quarter ended April 26, 2008, non-GAAP income from continuing operations excludes a reduction of $1.7 million in cost of earned revenues related to the reversal of pre-acquisition payroll related accruals, and a reduction of interest and income tax expenses of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax liabilities no longer required. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

 

 

The Company also reported:
  •   contract revenues from continuing operations of $837.2 million for the nine months ended April 25, 2009 compared to $907.9 million for the nine months ended April 26, 2008, a decrease of 7.8%;
 
  •   loss from continuing operations on a GAAP basis of ($59.8) million, or ($1.52) per common share diluted, for the nine months ended April 25, 2009, compared to income from continuing operations of $19.8 million, or $0.48 per common share diluted, for the nine months ended April 26, 2008; and
 
  •   income from continuing operations on a non-GAAP basis of $14.2 million, or $0.36 per common share diluted, for the nine months ended April 25, 2009, compared to $22.3 million, or $0.54 per common share diluted, for the nine months ended April 26, 2008.
Non-GAAP income from continuing operations for the nine months ended April 25, 2009 excludes a pre-tax gain of approximately $3.0 million related to the buyback of $14.65 million principal amount of the Company’s senior subordinated notes due 2015, a goodwill impairment charge of $94.4 million, the write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company’s credit facility, and a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax liabilities no longer required. For the nine months ended April 26, 2008, non-GAAP income from continuing operations excludes a $7.6 million charge in cost of earned revenues related to a wage and hour class action settlement with respect to three of the Company’s subsidiaries, a reduction of $1.7 million in cost of earned revenues related to the reversal of pre-acquisition payroll related accruals, and a reduction of interest and income tax expenses of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax liabilities no longer required. 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, May 20, 2009; Call 800-230-1074 (United States) or 612-288-0337 (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, June 19, 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.
Fiscal 2009 third quarter and nine-month results are preliminary and are unaudited. This press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. 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
April 25, 2009 and July 26, 2008
Unaudited
                 
    April 25,     July 26,  
    2009     2008  
    ($ in 000’s)  
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 78,762     $ 22,068  
Accounts receivable, net
     108,239       146,420  
Costs and estimated earnings in excess of billings
     63,853       94,270  
Deferred tax assets, net
     15,695       19,347  
Income taxes receivable
     11,557       6,014  
Inventories
     9,153       8,994  
Other current assets
     10,018       7,301  
Current assets of discontinued operations
     164       667  
 
            
Total current assets
     297,441       305,081  
 
                
Property and equipment, net
     148,186       170,479  
Goodwill
     157,851       252,374  
Intangible assets, net
     57,695       62,860  
Other
     10,711       10,478  
 
            
Total
   $ 671,884     $ 801,272  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 24,542     $ 29,835  
Current portion of debt
     1,394       2,306  
Billings in excess of costs and estimated earnings
     512       483  
Accrued insurance claims
     28,743       29,834  
Other accrued liabilities
     41,360       66,275  
Current liabilities of discontinued operations
     537       2,731  
 
            
Total current liabilities
     97,088       131,464  
 
                
Long-term debt
     135,487       151,049  
Accrued insurance claims
     30,463       37,175  
Deferred tax liabilities, net non-current
     21,595       31,750  
Other liabilities
     4,106       5,314  
Non-current liabilities of discontinued operations
     388       427  
 
                
Stockholders’ Equity
     382,757       444,093  
 
            
 
                
Total
   $ 671,884     $ 801,272  
 
            

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                                 
    Three Months     Three Months     Nine Months     Nine Months  
    Ended     Ended     Ended     Ended  
    April 25,     April 26,     April 25,     April 26,  
    2009     2008     2009     2008  
    ($ in 000’s, except per share amounts)  
 
                                
Contract revenues
   $ 257,719     $ 293,440     $ 837,209     $ 907,869  
 
                        
 
                                
Cost of earned revenues, excluding depreciation and amortization
     206,733       239,598       681,239       748,816  
General and administrative expenses (1)
     24,276       24,969       73,350       72,892  
Depreciation and amortization
     16,163       17,301       49,592       50,258  
Goodwill impairment charge
     —       —       94,429       —  
 
                        
Total
     247,172       281,868       898,610       871,966  
 
                                
Interest income
     60       238       234       619  
Interest expense
     (3,162 )     (3,110 )     (11,313 )     (10,231 )
Other income, net
     3,566       2,670       5,799       5,040  
 
                        
Income (loss) from continuing operations before income taxes
     11,011       11,370       (66,681 )     31,331  
 
                                
Provision (benefit) for income taxes
     3,442       3,677       (6,882 )     11,515  
 
                        
 
                                
Income (loss) from continuing operations
     7,569       7,693       (59,799 )     19,816  
 
                                
Income (loss) from discontinued operations, net of tax
     28       (807 )     (9 )     (1,228 )
 
                        
 
                                
Net income (loss)
   $ 7,597     $ 6,886     $ (59,808 )   $ 18,588  
 
                        
 
                                
Earnings (loss) per common share — Basic:
                                
 
                                
Income (loss) from continuing operations
   $ 0.19     $ 0.19     $ (1.52 )   $ 0.49  
Income (loss) from discontinued operations
     —       (0.02 )     —       (0.03 )
 
                        
Net income (loss)
   $ 0.19     $ 0.17     $ (1.52 )   $ 0.46  
 
                        
 
                                
Earnings (loss) per common share — Diluted:
                                
 
                                
Income (loss) from continuing operations
   $ 0.19     $ 0.19     $ (1.52 )   $ 0.48  
Income (loss) from discontinued operations
     —       (0.02 )     —       (0.03 )
 
                        
Net income (loss)
   $ 0.19     $ 0.17     $ (1.52 )   $ 0.45  
 
                        
 
                                
Shares used in computing earnings (loss) per common share:
                                
Basic
     39,330,308       40,436,212       39,343,834       40,651,236  
 
                        
 
                                
Diluted
     39,346,102       40,486,765       39,343,834       40,865,349  
 
                        
 
(1)   Includes stock-based compensation expense of $0.9 million and $2.8 million for the three and nine months ended April 25, 2009, respectively, and $1.4 million and $4.6 million for the three and nine months ended April 26, 2008, respectively.

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
                                 
    Three Months     Three Months     Nine Months     Nine Months  
    Ended     Ended     Ended     Ended  
    April 25,     April 26,     April 25,     April 26,  
    2009     2008     2009     2008  
    ($ in 000’s, except per share amounts)  
Reconciling Items (a):
                                
Items decreasing Income (loss) from continuing operations:
                                
Goodwill impairment charge
   $ —     $ —     $ (94,429 )   $ —  
Charge for wage and hour class action settlement
   $ —     $ —     $ —     $ (7,591 )
Write-off of deferred financing costs
   $ —     $ —     $ (551 )   $ —  
 
                                
Items increasing Income (loss) from continuing operations:
                                
Gain on debt extinguishment, net
   $ 1,727     $ —     $ 3,027     $ —  
Reversal of interest expense on certain income tax liabilities
   $ 268     $ 339     $ 268     $ 339  
Reversal of certain income tax liabilities
   $ 1,358     $ 858     $ 1,358     $ 858  
Reversal of pre-acquisition payroll related accruals
   $ —     $ 1,680     $ —     $ 1,680  
 
(a)        Reconciling Items reported above are on a pre-tax basis, except for “Reversal of certain income tax liabilities.”
 
                                
GAAP income (loss) from continuing operations
   $ 7,569     $ 7,693     $ (59,799 )   $ 19,816  
Adjustment for Reconciling Items above, net of tax
     (2,560 )     (2,144 )     74,019       2,451  
 
                        
Non-GAAP income from continuing operations
   $ 5,009     $ 5,549     $ 14,220     $ 22,267  
 
                        
 
                                
Earnings (loss) per common share from continuing operations:
                                
 
                                
Basic earnings (loss) per common share from continuing operations — GAAP
   $ 0.19     $ 0.19     $ (1.52 )   $ 0.49  
Adjustment for Reconciling Items above, net of tax
     (0.07 )     (0.05 )     1.88       0.06  
 
                        
Basic earnings per common share from continuing operations — Non-GAAP
   $ 0.13     $ 0.14     $ 0.36     $ 0.55  
 
                        
 
                                
Diluted earnings (loss) per common share from continuing operations — GAAP
   $ 0.19     $ 0.19     $ (1.52 )   $ 0.48  
Adjustment for Reconciling Items above, net of tax
     (0.07 )     (0.05 )     1.88       0.06  
 
                        
Diluted earnings per common share from continuing operations- Non-GAAP
   $ 0.13     $ 0.14     $ 0.36     $ 0.54  
 
                        
 
                                
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling Items above:
                                
 
                                
Basic
     39,330,308       40,436,212       39,343,834       40,651,236  
 
                        
 
                                
Diluted
     39,346,102       40,486,765       39,343,834       40,865,349  
 
                        
 
                                
Shares used in computing Non-GAAP earnings per common share from continuing operations:
                                
 
                                
Basic
     39,330,308       40,436,212       39,343,834       40,651,236  
 
                        
 
                                
Diluted
     39,346,102       40,486,765       39,393,923       40,901,585  
 
                        
Earnings per share amounts may not add due to rounding.