PALM BEACH GARDENS, Fla., Aug. 29 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced its results today for the fourth quarter ended July 29, 2006. The Company reported net income for the quarter ended July 29, 2006 of $10.1 million, or $0.25 per common share diluted, versus a net loss for the quarter ended July 30, 2005 of $12.4 million, or a loss of $0.25 per common share diluted. Included in the net loss for the quarter ended July 30, 2005 was a goodwill impairment charge of approximately $29.0 million (or $0.59 per common share diluted) related to the Company's White Mountain Cable Construction ("WMCC") subsidiary. Excluding this item, non- GAAP net income for the quarter ended July 30, 2005 was $16.6 million, or $0.34 per common share diluted. Total contract revenues for the quarter ended July 29, 2006 were $259.9 million compared to total contract revenues of $251.3 million for the quarter ended July 30, 2005, an increase of 3.5%. Stock-based compensation expense for the quarter ended July 29, 2006 and quarter ended July 30, 2005 was $1.4 million and $0.3 million, respectively, on a pre-tax basis.
For the year ended July 29, 2006 net income was $18.2 million, or $0.43 per common share diluted. For the year ended July 30, 2005 net income was $24.3 million, or $0.49 per common share diluted. Included in the net income for the year ended July 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 year ended July 29, 2006 was $33.0 million, or $0.78 per common share diluted. Included in the net income for the year ended July 30, 2005 was a goodwill impairment charge of approximately $29.0 million (or $0.59 per common share diluted) related to the Company's WMCC subsidiary. Excluding this item, non-GAAP net income for the year ended July 30, 2005 was $53.3 million, or $1.08 per common share diluted. Total contract revenues for the year ended July 29, 2006 were $1.024 billion compared to total contract revenues of $986.6 million for the year ended July 30, 2005, an increase of 3.8%. Stock-based compensation expense for the year ended July 29, 2006 and the year ended July 30, 2005 was $4.7 million and $1.0 million, respectively, on a pre-tax basis.
Dycom also announced its outlook for the first quarter of fiscal 2007. The Company currently expects revenue for the first quarter of fiscal 2007 to range from $250 million to $270 million and diluted earnings per share to range from $0.22 to $0.27. 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 30, 2006; Call 877-209-0397 (United States) or 612-332-0819 (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, September 29, 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 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, 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.
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 29, 2006 and July 30, 2005
Unaudited
July 29, July 30,
2006 2005
--------- ---------
($ in 000's)
ASSETS
Current Assets:
Cash and equivalents $27,268 $83,062
Accounts receivable, net 146,906 161,321
Costs and estimated earnings in
excess of billings 79,546 65,559
Deferred tax assets, net 13,223 12,535
Inventories 7,981 8,116
Other current assets 9,384 11,286
--------- ---------
Total current assets 284,308 341,879
Property and equipment, net 126,646 117,145
Intangible assets, net 265,133 227,443
Other 13,928 10,242
--------- ---------
Total $690,015 $696,709
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $29,052 $37,185
Current portion of debt 5,169 2,749
Billings in excess of costs and
estimated earnings 397 464
Accrued self-insured claims 27,088 28,166
Income taxes payable 4,979 6,598
Other accrued liabilities 45,109 43,550
--------- ---------
Total current liabilities 111,794 118,712
Long-term debt 150,009 4,179
Accrued self-insured claims 32,471 22,652
Deferred tax liabilities, net non-
current 5,997 1,299
Other liabilities 289 57
Stockholders' Equity 389,455 549,810
--------- ---------
Total $690,015 $696,709
========= =========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Three Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
July 29, July 30, July 29, July 30,
2006 2005 2006 2005
--------- --------- --------- ---------
(In 000's, except per share amounts)
Contract revenues $259,944 $251,263 $1,023,673 $986,627
--------- --------- --------- ---------
Cost of earned revenues 208,508 199,016 835,889 785,616
General and administrative
expenses (1) 21,121 21,886 80,868 79,727
Depreciation and
amortization 12,164 11,003 47,955 46,593
Goodwill impairment charge - 28,951 14,835 28,951
--------- --------- --------- ---------
Total 241,793 260,856 979,547 940,887
--------- --------- --------- ---------
Interest income 373 559 1,912 1,341
Interest expense (3,476) (97) (11,990) (417)
Other income, net 2,109 6,978 6,382 11,970
--------- --------- --------- ---------
Income (loss) before
income taxes 17,157 (2,153) 40,430 58,634
Provision for income taxes 7,068 10,240 22,250 34,320
--------- --------- --------- ---------
Net income (loss) $10,089 $(12,393) $18,180 $24,314
========= ========= ========= =========
Earnings (loss) per common
share:
Basic earnings (loss)
per share $0.25 $(0.25) $0.43 $0.50
========= ========= ========= =========
Diluted earnings (loss)
per share $0.25 $(0.25) $0.43 $0.49
========= ========= ========= =========
Shares used in computing
earnings (loss) per
common share (2):
Basic 40,191,164 48,849,497 41,835,966 48,746,745
========== ========== ========== ==========
Diluted 40,425,555 48,849,497 42,056,597 49,184,570
========== ========== ========== ==========
(1) Includes stock-based compensation expense of $1.4 million and $4.7
million for the three and twelve months ended July 29, 2006,
respectively, and $0.3 million and $1.0 million for the three and
twelve months ended July 30, 2005, respectively.
(2) The Company purchased 8.76 million common shares on October 11, 2005
pursuant to a "Dutch Auction" tender offer.
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
($ in 000's except per share amounts)
Three Three Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
July 29, July 30, July 29, July 30,
2006 2005 2006 2005
------- -------- ------- -------
Item
Goodwill impairment charge $- $28,951 $14,835 $28,951
======= ======== ======= =======
GAAP net income (loss) $10,089 $(12,393) $18,180 $24,314
Adjusted for item above - 28,951 14,835 28,951
------- -------- ------- -------
Non-GAAP net income $10,089 $16,558 $33,014 $53,265
======= ======== ======= =======
Earnings (loss) per common
share:
Basic income (loss) per
share - GAAP $0.25 $(0.25) $0.43 $0.50
Adjustment for item above - 0.59 0.35 0.59
------- -------- ------- -------
Basic earnings per share -
Non-GAAP $0.25 $0.34 $0.79 $1.09
======= ======== ======= =======
Diluted earnings (loss)
per share - GAAP $0.25 $(0.25) $0.43 $0.49
Adjustment for item above - 0.59 0.35 0.59
------- -------- ------- -------
Diluted earnings per share
- Non-GAAP $0.25 $0.34 $0.78 $1.08
======= ======== ======= =======
Shares used in computing
GAAP earnings (loss) per
common share and
adjustment for item
above:
Basic 40,191,164 48,849,497 41,835,966 48,746,745
========== ========== ========== ==========
Diluted 40,425,555 48,849,497 42,056,597 49,184,570
========== ========== ========== ==========
Shares used in computing
Non-GAAP earnings per
common share:
Basic 40,191,164 48,849,497 41,835,966 48,746,745
========== ========== ========== ==========
Diluted 40,425,555 49,132,573 42,056,597 49,184,570
========== ========== ========== ==========
