PALM BEACH GARDENS, Fla., May 22 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced its results today for the third quarter ended April 28, 2007. The Company reported income from continuing operations for the quarter ended April 28, 2007 of $12.6 million, or $0.31 per common share diluted, versus a loss from continuing operations for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted. Income from continuing operations for the quarter ended April 28, 2007 includes a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. The loss from continuing operations for the quarter ended April 29, 2006 includes a goodwill impairment charge of approximately $14.8 million net of tax, or $0.37 per common share diluted. Excluding these items, non-GAAP income from continuing operations was $11.1 million, or $0.27 per common share diluted, for the quarter ended April 28, 2007 and $8.3 million, or $0.21 per common share diluted, for the quarter ended April 29, 2006.
For the nine months ended April 28, 2007 income from continuing operations was $27.7 million, or $0.68 per common share diluted. For the nine months ended April 29, 2006 income from continuing operations was $7.9 million, or $0.19 per common share diluted. Income from continuing operations for the nine months ended April 28, 2007 includes a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. Income from continuing operations for the nine months ended April 29, 2006 includes a goodwill impairment charge of approximately $14.8 million net of tax, or $0.35 per common share diluted. Excluding these items, non-GAAP income from continuing operations was $26.2 million, or $0.65 per common share diluted for the nine months ended April 28, 2007 and $22.7 million, or $0.53 per common share diluted, for the nine months ended April 29, 2006.
Total contract revenues from continuing operations for the quarter ended April 28, 2007 were $291.6 million compared to $251.1 million for the quarter ended April 29, 2006, an increase of 16.2%. Total contract revenues from continuing operations for the nine months ended April 28, 2007 were $820.5 million compared to $741.8 million for the nine months ended April 29, 2006, an increase of 10.6%. Included in contract revenues for the three and nine month periods ended April 28, 2007 is $1.4 million from a business acquired on March 30, 2007. Stock-based compensation expense, on a pre-tax basis, for the three and nine month periods ended April 28, 2007 was $1.4 million and $4.8 million, respectively, compared to stock-based compensation expense of $1.4 million and $3.3 million for the three and nine month periods ended April 29, 2006, respectively.
Net income for the quarter ended April 28, 2007 was $12.4 million, or $0.31 per common share diluted, versus a net loss for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted. Net income for the nine months ended April 28, 2007 was $27.6 million, or $0.68 per common share diluted, versus net income for the nine months ended April 29, 2006 of $8.1 million, or $0.19 per common share diluted.
Dycom also announced its outlook for the fourth quarter of fiscal 2007. The Company currently expects revenue from continuing operations for the fourth quarter of fiscal 2007 to range from $295 million to $315 million and diluted earnings per share from continuing operations to range from $0.29 to $0.34, 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, May 23, 2007; Call 800-230-1085 (United States) or 612-234-9960 (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 22, 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 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, the impact of any future acquisitions and whether they can be efficiently integrated into our existing operations, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks and uncertainties described in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended July 29, 2006, and other factors discussed from time to time in our other filings with the Securities and Exchange Commission, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake to update forward-looking statements.
---Tables Follow---
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 28, 2007 and July 29, 2006
Unaudited
April 28, July 29,
2007 2006
-------- --------
($ in 000's)
ASSETS
Current Assets:
Cash and equivalents $15,966 $27,268
Accounts receivable, net 133,020 143,099
Costs and estimated earnings in
excess of billings 95,176 79,546
Deferred tax assets, net 14,275 12,793
Inventories 9,119 7,095
Other current assets 10,393 9,311
Current assets of discontinued
operations 616 5,196
------- -------
Total current assets 278,565 284,308
Property and equipment, net 160,548 125,393
Intangible assets, net 322,076 265,133
Other 12,538 13,928
Non-current assets of discontinued
operations 33 1,253
------- -------
Total $773,760 $690,015
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $25,967 $25,715
Current portion of debt 3,515 5,169
Billings in excess of costs and
estimated earnings 645 397
Accrued self-insured claims 26,992 25,886
Income taxes payable 8,426 4,979
Other accrued liabilities 52,107 44,337
Current liabilities of discontinued
operations 1,495 5,311
------- -------
Total current liabilities 119,147 111,794
Long-term debt 179,303 150,009
Accrued self-insured claims 31,822 30,770
Deferred tax liabilities, net non-
current 16,756 6,576
Other liabilities 1,318 289
Non-current liabilities of
discontinued operations 1,131 1,122
Stockholders' Equity 424,283 389,455
------- -------
Total $773,760 $690,015
======= =======
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
April 28, April 29, April 28, April 29,
2007 2006 2007 2006
-------- -------- -------- --------
(In 000's, except per share amounts)
Contract revenues $291,643 $251,077 $820,488 $741,810
------- ------- ------- -------
Cost of earned revenues 233,657 204,309 662,193 608,581
General and administrative
expenses (1) 23,712 20,622 66,786 57,999
Depreciation and
amortization 15,327 11,861 41,964 34,678
Goodwill impairment charge - 14,835 - 14,835
------- ------- ------- -------
Total 272,696 251,627 770,943 716,093
------- ------- ------- -------
Interest income 174 327 801 1,540
Interest expense (3,596) (3,641) (11,306) (8,515)
Other income, net 5,189 2,894 6,814 4,219
------- ------- ------- -------
Income (loss) from
continuing operations
before income taxes 20,714 (970) 45,854 22,961
Provision for income taxes 8,144 5,518 18,110 15,059
------- ------- ------- -------
Income (loss) from
continuing operations 12,570 (6,488) 27,744 7,902
Income (loss) from
discontinued operations,
net of tax (3) (125) (15) (154) 188
------- ------- ------- -------
Net income (loss) $12,445 $(6,503) $27,590 $8,090
======= ======= ======= =======
Earnings (loss) per common
share - Basic:
Income (loss) from
continuing operations $0.31 $(0.16) $0.69 $0.19
Income (loss) from
discontinued operations - - (0.01) -
------- ------- ------- -------
Net income (loss) $0.31 $(0.16) $0.68 $0.19
======= ======= ======= =======
Earnings (loss) per common
share - Diluted:
Income (loss) from
continuing operations $0.31 $(0.16) $0.68 $0.19
Income (loss) from
discontinued operations - - - -
------- ------- ------- -------
Net income (loss) $0.31 $(0.16) $0.68 $0.19
======= ======= ======= =======
Shares used in computing
earnings per common
share (2):
Basic 40,469,787 40,163,176 40,324,503 42,413,595
========== ========== ========== ==========
Diluted 40,770,976 40,163,176 40,622,116 42,628,492
========== ========== ========== ==========
(1)Includes stock-based compensation expense of $1.4 million and $4.8
million for the three and nine months ended April 28, 2007,
respectively, and $1.4 million and $3.3 million for the three and nine
months ended April 29, 2006, respectively.
(2)The Company purchased 8.76 million common shares on October 11, 2005
pursuant to a "Dutch Auction" tender offer.
(3)The Company discontinued the operations of one of its subsidiaries in
fiscal 2007 and has reported those results separately as discontinued
operations in the financial statements for all periods presented.
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
($ in 000's except per share amounts)
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
April 28, April 29, April 28, April 29,
2007 2006 2007 2006
-------- -------- -------- --------
Items:
Gain on sale of real
estate, net of tax $1,508 $ - $1,508 $ -
Goodwill impairment
charge, net of tax - (14,835) - (14,835)
------- ------- ------- -------
$1,508 $(14,835) $1,508 $(14,835)
======= ======= ======= =======
GAAP income (loss) from
continuing operations $12,570 $(6,488) $27,744 $7,902
Adjustment for items above (1,508) 14,835 (1,508) 14,835
------- ------- ------- -------
Non-GAAP income from
continuing operations $11,062 $8,347 $26,236 $22,737
======= ======= ======= =======
Earnings (loss) per common
share from continuing
operations:
Basic earnings (loss) per
share from continuing
operations - GAAP $0.31 $(0.16) $0.69 $0.19
Adjustment for items above (0.04) 0.37 (0.04) 0.35
------- ------- ------- -------
Basic earnings per share
from continuing
operations - Non-GAAP $0.27 $0.21 $0.65 $0.54
======= ======= ======= =======
Diluted earnings (loss)
per share from continuing
operations - GAAP $0.31 $(0.16) $0.68 $0.19
Adjustment for items above (0.04) 0.37 (0.04) 0.35
------- ------- ------- -------
Diluted earnings per share
from continuing
operations - Non-GAAP(1) $0.27 $0.21 $0.65 $0.53
======= ======= ======= =======
Shares used in computing
GAAP earnings (loss) per
common share from
continuing operations and
adjustment for items
above:
Basic 40,469,787 40,163,176 40,324,503 42,413,595
========== ========== ========== ==========
Diluted 40,770,976 40,163,176 40,622,116 42,628,492
========== ========== ========== ==========
Shares used in computing
Non-GAAP earnings per
common share from
continuing operations:
Basic 40,469,787 40,163,176 40,324,503 42,413,595
========== ========== ========== ==========
Diluted 40,770,976 40,395,055 40,622,116 42,628,492
========== ========== ========== ==========
(1) Amounts may not foot due to rounding.