PALM BEACH GARDENS, Fla., Aug. 28 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced its results today for the fourth quarter ended July 28, 2007. The Company reported income from continuing operations for the quarter ended July 28, 2007 of $14.5 million, or $0.35 per common share diluted, versus income from continuing operations for the quarter ended July 29, 2006 of $10.1 million, or $0.25 per common share diluted. Total contract revenues for the quarter ended July 28, 2007 were $317.3 million compared to total contract revenues of $253.2 million for the quarter ended July 29, 2006, an increase of 25.3%. Stock-based compensation expense for the quarter ended July 28, 2007 and quarter ended July 29, 2006 was $1.5 million and $1.4 million, respectively, on a pre-tax basis.
For the year ended July 28, 2007 income from continuing operations was $42.2 million, or $1.04 per common share diluted, compared to income from continuing operations of $18.0 million, or $0.43 per common share diluted, for the year ended July 29, 2006. Income from continuing operations for the year ended July 28, 2007 included a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. For the year ended July 29, 2006 income from continuing operations included 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 these items, non-GAAP income from continuing operations was $40.7 million, or $1.00 per common share diluted, for the year ended July 28, 2007 and $32.9 million, or $0.78 per common share diluted, for the year ended July 29, 2006. Total contract revenues from continuing operations for the year ended July 28, 2007 were $1.138 billion compared to total contract revenues from continuing operations of $995 million for the year ended July 29, 2006, an increase of 14.4%. Stock-based compensation expense for the year ended July 28, 2007 and the year ended July 29, 2006 was $6.2 million and $4.7 million, respectively, on a pre- tax basis.
Net income, including the results of discontinued operations, for the quarter ended July 28, 2007 was $14.3 million, or $0.35 per common share diluted, compared to $10.1 million, or $0.25 per common share diluted for the quarter ended July 29, 2006. Net income, including the results of discontinued operations, for the year ended July 28, 2007 was $41.9 million, or $1.03 per common share diluted, compared to $18.2 million, or $0.43 per common share diluted, for the year ended July 29, 2006.
Dycom also announced its outlook for the first quarter of fiscal 2008. The Company currently expects revenue for the first quarter of fiscal 2008 to range from $310 million to $330 million and diluted earnings per share to range from $0.31 to $0.37. Included in the expected results is stock-based compensation expense of approximately $2.2 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 29, 2007; Call 888-428-4480 (United States) or 651-291-5254 (International) ten minutes before the conference call begins and ask for the "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 28, 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 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 acquisitions 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 28, 2007 and July 29, 2006 Unaudited July 28, July 29, 2007 2006 --------- --------- ($ in 000's) ASSETS Current Assets: Cash and equivalents $18,862 $27,268 Accounts receivable, net 146,864 143,099 Costs and estimated earnings in excess of billings 95,392 79,546 Deferred tax assets, net 15,478 12,793 Inventories 8,268 7,095 Other current assets 7,266 9,311 Current assets of discontinued operations 307 5,196 ------- ------- Total current assets 292,437 284,308 Property and equipment, net 164,544 125,393 Intangible assets, net 320,952 265,133 Other 11,831 13,928 Non-current assets of discontinued operations - 1,253 ------- ------- Total $789,764 $690,015 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $30,375 $25,715 Current portion of debt 3,301 5,169 Billings in excess of costs and estimated earnings 712 397 Accrued self-insured claims 26,902 25,886 Income taxes payable 1,947 4,979 Other accrued liabilities 63,076 44,337 Current liabilities of discontinued operations 939 5,311 ------- ------- Total current liabilities 127,252 111,794 Long-term debt 163,509 150,009 Accrued self-insured claims 33,085 30,770 Deferred tax liabilities, net non- current 19,316 6,576 Other liabilities 1,322 289 Non-current liabilities of discontinued operations 649 1,122 Stockholders' Equity 444,631 389,455 ------- ------- Total $789,764 $690,015 ======= ======= 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 28, July 29, July 28, July 29, 2007 2006 2007 2006 ---------- ---------- ---------- ---------- (In 000's, except per share amounts) Contract revenues $317,324 $253,163 $1,137,812 $994,973 ---------- ---------- ---------- ---------- Cost of earned revenues, excluding depreciation 253,057 202,629 915,250 811,210 General and administrative expenses (1) 23,304 20,517 90,090 78,516 Depreciation and amortization 15,835 11,790 57,799 46,467 Goodwill impairment charge - - - 14,835 ---------- ---------- ---------- ---------- Total 292,196 234,936 1,063,139 951,028 ---------- ---------- ---------- ---------- Interest income 165 371 966 1,911 Interest expense (3,503) (3,476) (14,809) (11,991) Other income, net 1,833 2,114 8,647 6,333 ---------- ---------- ---------- ---------- Income from continuing operations before income taxes 23,623 17,236 69,477 40,198 Provision for income taxes 9,165 7,098 27,275 22,158 ---------- ---------- ---------- ---------- Income from continuing operations 14,458 10,138 42,202 18,040 Income (loss) from discontinued operations, net of tax (3) (164) (49) (318) 140 ---------- ---------- ---------- ---------- Net income $14,294 $10,089 $41,884 $18,180 ========== ========== ========== ========== Earnings per common share - Basic: Income from continuing operations $0.36 $0.25 $1.04 $0.43 Income (loss) from discontinued operations - - (0.01) - ---------- ---------- ---------- ---------- Net income (4) $0.35 $0.25 $1.04 $0.43 ========== ========== ========== ========== Earnings per common share - Diluted: Income from continuing operations $0.35 $0.25 $1.04 $0.43 Income (loss) from discontinued operations - - (0.01) - ---------- ---------- ---------- ---------- Net income $0.35 $0.25 $1.03 $0.43 ========== ========== ========== ========== Shares used in computing earnings per common share (2): Basic 40,659,201 40,191,164 40,407,641 41,835,966 ========== ========== ========== ========== Diluted 41,066,597 40,425,555 40,713,895 42,056,597 ========== ========== ========== ========== (1) Includes stock-based compensation expense of $1.5 million and $6.2 million for the three and twelve months ended July 28, 2007, respectively, and $1.4 million and $4.7 million for the three and twelve months ended July 29, 2006, respectively. (2) The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a "Dutch Auction" tender offer. (3) The Company discontinued the operations of one of its subsidiaries in fiscal 2007 and has reported those results separately as discontinued operations in the financial statements for all periods presented. (4) Amounts may not add due to rounding. NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INFORMATION Unaudited ($ in 000's except per share amounts) Twelve Months Twelve Months Ended Ended July 28, July 29, 2007 2006 ----------- ----------- Items: Gain on sale of real estate, net of tax $1,508 $ - Goodwill impairment charge, net of tax - (14,835) ---------- ---------- $1,508 $(14,835) ========== ========== GAAP income from continuing operations $42,202 $18,040 Adjustment for items above (1,508) 14,835 ---------- ---------- Non-GAAP income from continuing operations $40,694 $32,875 ========== ========== Earnings per common share from continuing operations: Basic earnings per share from continuing operations - GAAP $1.04 $0.43 Adjustment for items above (0.04) 0.35 ---------- ---------- Basic earnings per share from continuing operations - Non-GAAP (1) $1.01 $0.79 ========== ========== Diluted earnings per share from continuing operations - GAAP $1.04 $0.43 Adjustment for items above (0.04) 0.35 ---------- ---------- Diluted earnings per share from continuing operations- Non-GAAP $1.00 $0.78 ========== ========== Shares used in computing GAAP and Non-GAAP earnings per common share from continuing operations and adjustment for items above: Basic 40,407,641 41,835,966 ========== ========== Diluted 40,713,895 42,056,597 ========== ========== (1) Amounts may not add due to rounding.
