PALM BEACH GARDENS, Fla., May 23 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced its results today for the third quarter ended April 29, 2006. The Company reported a net loss for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted, versus net income for the quarter ended April 30, 2005 of $13.7 million, or $0.28 per common share diluted. Included in the net loss for the quarter ended April 29, 2006 was a goodwill impairment charge of approximately $14.8 million (or $0.37 per common share diluted) related to the Company's Can Am Communications subsidiary. Can Am was underperforming compared to expectations, increasing the uncertainty about its future cash flows. As a result, management recently implemented operational changes at Can Am which, together with Can Am's underperformance, required the Company to perform an interim impairment test in accordance with Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets," resulting in the impairment charge. Excluding this item, non-GAAP net income for the quarter ended April 29, 2006 was $8.3 million, or $0.21 per common share diluted. Total contract revenues for the quarter ended April 29, 2006 were $258.7 million compared to total contract revenues of $247.7 million for the quarter ended April 30, 2005, an increase of 4.5%. Stock-based compensation expense for the quarter ended April 29, 2006 and quarter ended April 30, 2005 was $1.4 million and $0.3 million, respectively, on a pre-tax basis.
For the nine months ended April 29, 2006 net income was $8.1 million, or $0.19 per common share diluted. For the nine months ended April 30, 2005 net income was $36.7 million, or $0.75 per common share diluted. Included in the net income for the nine months ended April 29, 2006 was a goodwill impairment charge of approximately $14.8 million (or $0.35 per common share diluted) related to the Company's Can Am Communications subsidiary. Excluding this item, non-GAAP net income for the nine months ended April 29, 2006 was $22.9 million, or $0.54 per common share diluted. Total contract revenues for the nine months ended April 29, 2006 were $763.7 million compared to total contract revenues of $735.4 million for the nine months ended April 30, 2005, an increase of 3.9%. Stock-based compensation expense for the nine months ended April 29, 2006 and the nine months ended April 30, 2005 was $3.3 million and $0.7 million, respectively, on a pre-tax basis.
Dycom also announced its outlook for the fourth quarter of fiscal 2006. The Company currently expects revenue for the fourth quarter of fiscal 2006 to range from $240 million to $260 million and diluted earnings per share to range from $0.17 to $0.23. Included in the expected results is stock-based compensation expense of approximately $1.5 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, May 24, 2006; Call 877-209-0397 (United States) or 612-332-1213 (International) and request "Dycom Earnings" 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, June 23, 2006.
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 locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2006 third quarter and nine-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 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---
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 29, 2006 and July 30, 2005
Unaudited
April 29, July 30,
2006 2005
-------- --------
($ in 000's)
ASSETS
Current Assets:
Cash and equivalents $13,589 $83,062
Accounts receivable, net 153,722 161,321
Costs and estimated earnings in
excess of billings 69,415 65,559
Deferred tax assets, net 15,068 12,535
Inventories 9,474 8,116
Income taxes receivable 1,774 --
Other current assets 16,471 11,286
---------- ----------
Total current assets 279,513 341,879
Property and equipment, net 127,645 117,145
Intangible assets, net 266,320 227,443
Other 12,714 10,242
---------- ----------
Total $686,192 $696,709
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $31,050 $37,185
Current portion of debt 7,388 2,749
Billings in excess of costs and
estimated earnings 978 464
Accrued self-insured claims 31,710 28,166
Income taxes payable -- 6,598
Other accrued liabilities 41,387 43,550
---------- ----------
Total current liabilities 112,513 118,712
Long-term debt 161,011 4,179
Accrued self-insured claims 27,936 22,652
Deferred tax liabilities, net non-
current 6,973 1,299
Other liabilities 308 57
Stockholders' Equity 377,451 549,810
---------- ----------
Total $686,192 $696,709
========== ==========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
April 29, April 30, April 29, April 30,
2006 2005 2006 2005
------------ ------------ ----------- -----------
(In 000's, except per share amounts)
Contract revenues $258,690 $247,660 $763,729 $735,364
------------ ------------ ----------- -----------
Cost of earned
revenues 211,050 195,943 627,381 586,600
General and
administrative
expenses (1) 21,145 20,928 59,747 57,841
Depreciation and
amortization 12,243 11,525 35,791 35,590
Goodwill impairment
charge 14,835 -- 14,835 --
------------ ------------ ----------- -----------
Total 259,273 228,396 737,754 680,031
------------ ------------ ----------- -----------
Interest income 327 407 1,540 783
Interest expense (3,641) (90) (8,514) (320)
Other income, net 2,902 3,214 4,272 4,991
------------ ------------ ----------- -----------
Income (loss) before
income taxes (995) 22,795 23,273 60,787
Provision for income
taxes 5,508 9,082 15,183 24,080
------------ ------------ ----------- -----------
Net income (loss) $(6,503) $13,713 $8,090 $36,707
============ ============ =========== ===========
Earnings (loss) per
common share:
Basic earnings
(loss) per share $(0.16) $0.28 $0.19 $0.75
============ ============ =========== ===========
Diluted earnings
(loss) per share $(0.16) $0.28 $0.19 $0.75
============ ============ =========== ===========
Shares used in
computing earnings
(loss) per common
share (2):
Basic 40,163,176 48,828,142 42,413,595 48,712,816
============ ============ =========== ===========
Diluted 40,163,176 49,178,944 42,628,492 49,229,362
============ ============ =========== ===========
(1) Includes stock-based compensation expense of $1.4 million and $3.3
million for the three and nine months ended April 29, 2006,
respectively, and $0.3 million and $0.7 million for the three and nine
months ended April 30, 2005, respectively.
(2) The Company purchased 8.76 million common shares on October 11, 2005
pursuant to a "Dutch Auction" tender offer.
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
($ in 000's except per share amounts)
Three Months Nine Months
Ended Ended
April 29, April 29,
2006 2006
------------ ------------
Item
Goodwill impairment charge $14,835 $14,835
=========== ===========
GAAP net income (loss) $(6,503) $8,090
Adjusted for item above 14,835 14,835
----------- -----------
Non-GAAP net income $8,332 $22,925
=========== ===========
Earnings (loss) per common share:
Basic income (loss) per share - GAAP $(0.16) $0.19
Adjustment for item above 0.37 0.35
----------- -----------
Basic earnings per share - Non-GAAP $0.21 $0.54
=========== ===========
Diluted earnings (loss) per share -
GAAP $(0.16) $0.19
Adjustment for item above 0.37 0.35
----------- -----------
Diluted earnings per share - Non-GAAP $0.21 $0.54
=========== ===========
Shares used in computing GAAP
earnings (loss) per common share and
adjustment for item above:
Basic 40,163,176 42,413,595
============ ============
Diluted 40,163,176 42,628,492
============ ============
Shares used in computing Non-GAAP
earnings per common share:
Basic 40,163,176 42,413,595
============ ============
Diluted 40,395,055 42,628,492
============ ============
