PALM BEACH GARDENS, Fla., Feb. 27 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced its results today for the second quarter ended January 27, 2007. The Company reported income from continuing operations and net income for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted, versus income from continuing operations and net income for the quarter ended January 28, 2006 of $3.9 million, or $0.10 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 27, 2007 were $258.3 million compared to $237.1 million for the quarter ended January 28, 2006, an increase of 8.9%. Stock based compensation expense for the quarter ended January 27, 2007 and quarter ended January 28, 2006 was $1.6 million and $0.9 million, respectively, on a pre-tax basis.
For the six months ended January 27, 2007 income from continuing operations was $15.2 million, or $0.37 per common share diluted. For the six months ended January 28, 2006 income from continuing operations was $14.4 million, or $0.33 per common share diluted. Net income was $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007, versus net income of $14.6 million, or $0.33 per common share diluted for the six months ended January 28, 2006. Total contract revenues from continuing operations for the six months ended January 27, 2007 were $528.8 million compared to $490.7 million for the six months ended January 28, 2006, an increase of 7.8%. Stock based compensation expense for the six months ended January 27, 2007 and the six months ended January 28, 2006 was $3.3 million and $1.9 million, respectively, on a pre-tax basis.
The Company has reported the results of Apex Digital, LLC as discontinued operations in the accompanying financial information. In August 2006, Apex notified its primary customer of its intention to cease performing installation services in February 2007. Effective December 2006, this customer transitioned its installation service requirements to other providers.
Dycom also announced its outlook for the third quarter of fiscal 2007. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2007 to range from $275 million to $295 million and diluted earnings per share from continuing operations to range from $0.23 to $0.28, including stock based compensation expense of approximately $1.5 million on a pre-tax basis. Management believes that discontinued operations will not have a material impact on the quarter.
A Tele-Conference call to review the Company's results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, February 28, 2007; 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, March 30, 2007.
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 2007 second quarter and six-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, stock-based compensation expense 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
January 27, 2007 and July 29, 2006
Unaudited
January 27, July 29,
2007 2006
----------- ------------
($ in 000's)
ASSETS
Current Assets:
Cash and equivalents $14,445 $27,268
Accounts receivable, net 120,052 143,099
Costs and estimated earnings in
excess of billings 80,886 79,546
Deferred tax assets, net 14,216 12,793
Inventories 8,350 7,095
Other current assets 12,646 9,311
Current assets of discontinued
operations 6,152 5,196
----------- ------------
Total current assets 256,747 284,308
Property and equipment, net 154,354 125,393
Intangible assets, net 319,113 265,133
Other 13,371 13,928
Non-current assets of discontinued
operations 121 1,253
----------- ------------
Total $743,706 $690,015
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $26,668 $25,715
Current portion of debt 3,343 5,169
Billings in excess of costs and
estimated earnings 584 397
Accrued self-insured claims 28,410 25,886
Income taxes payable 1,198 4,979
Other accrued liabilities 45,871 44,337
Current liabilities of discontinued
operations 5,047 5,311
----------- ------------
Total current liabilities 111,121 111,794
Long-term debt 174,517 150,009
Accrued self-insured claims 30,689 30,770
Deferred tax liabilities, net non-
current 17,357 6,576
Other liabilities 1,310 289
Non-current liabilities of
discontinued operations 1,283 1,122
Stockholders' Equity 407,429 389,455
----------- ------------
Total $743,706 $690,015
=========== ============
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
January 27, January 28, January 27, January 28,
2007 2006 2007 2006
----------- ------------ ----------- -----------
(In 000's, except per share amounts)
Contract revenues $258,293 $237,091 $528,846 $490,733
----------- ----------- ----------- -----------
Cost of earned revenues 210,771 196,994 428,536 404,272
General and administrative
expenses (1) 21,395 18,552 43,074 37,377
Depreciation and
amortization 14,142 11,776 26,637 22,817
----------- ----------- ----------- -----------
Total 246,308 227,322 498,247 464,466
----------- ----------- ----------- -----------
Interest income 234 523 627 1,212
Interest expense (3,953) (4,007) (7,710) (4,873)
Other income, net 1,129 240 1,624 1,325
----------- ----------- ----------- -----------
Income from continuing
operations before income
taxes 9,395 6,525 25,140 23,931
Provision for income taxes 3,747 2,654 9,966 9,540
----------- ----------- ----------- -----------
Income from continuing
operations 5,648 3,871 15,174 14,391
Income (loss) from
discontinued operations,
net of tax (63) - (29) 202
----------- ----------- ----------- -----------
Net income $5,585 $3,871 $15,145 $14,593
=========== =========== =========== ===========
Earnings per common share
- Basic:
Income from continuing
operations $0.14 $0.10 $0.38 $0.33
Income (loss) from
discontinued operations - - - 0.01
----------- ----------- ----------- -----------
Net income $0.14 $0.10 $0.38 $0.34
=========== =========== =========== ===========
Earnings per common share
- Diluted:
Income from continuing
operations $0.14 $0.10 $0.37 $0.33
Income (loss) from
discontinued operations - - - -
----------- ----------- ----------- -----------
Net income $0.14 $0.10 $0.37 $0.33
=========== =========== =========== ===========
Shares used in computing
earnings per common share
(2):
Basic 40,295,932 40,058,234 40,253,498 43,533,157
=========== =========== =========== ===========
Diluted 40,599,162 40,274,160 40,553,092 43,738,518
=========== =========== =========== ===========
(1) Includes stock-based compensation expense of $1.6 million and $3.3
million for the three and six months ended January 27, 2007,
respectively, and $0.9 million and $1.9 million for the three and six
months ended January 28, 2006, respectively.
(2) The Company purchased 8.76 million common shares on October 11, 2005
pursuant to a "Dutch Auction" tender offer.