PALM BEACH GARDENS, Fla., Feb. 26 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced today its results for the second quarter ended January 26, 2008. The Company reported a loss from continuing operations for the quarter ended January 26, 2008 of ($3.1) million, or ($0.08) per common share diluted, versus income from continuing operations for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted. Net loss, including the results of discontinued operations, for the quarter ended January 26, 2008 was ($3.2) million, or ($0.08) per common share diluted, compared to net income of $5.6 million, or $0.14 per common share diluted, for the quarter ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company's subsidiaries, earnings from continuing operations for the quarter ended January 26, 2008 were $1.5 million, or $0.04 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 26, 2008 were $284.8 million compared to $258.3 million for the quarter ended January 27, 2007, an increase of 10.2%. Stock based compensation expense for the quarter ended January 26, 2008 and quarter ended January 27, 2007 was $1.0 million and $1.6 million, respectively, on a pre-tax basis.
For the six months ended January 26, 2008 income from continuing operations was $12.1 million, or $0.30 per common share diluted, versus income from continuing operations for the six months ended January 27, 2007 of $15.2 million, or $0.37 per common share diluted. Net income, including the results of discontinued operations, for the six months ended January 26, 2008 was $11.7 million or $0.28 per common share diluted, compared to net income of $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company's subsidiaries, income from continuing operations for the six months ended January 26, 2008 was $16.7 million, or $0.41 per common share on a fully diluted basis. Total contract revenues from continuing operations for the six months ended January 26, 2008 were $614.4 million compared to $528.8 million for the six months ended January 27, 2007, an increase of 16.2%. Stock based compensation expense for the six months ended January 26, 2008 and the six months ended January 27, 2007 was $3.2 million and $3.3 million, respectively, on a pre-tax basis.
Dycom also announced its outlook for the third quarter of fiscal 2008. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2008 to range from $270 million to $295 million and diluted earnings per share from continuing operations to range from $0.08 to $0.13, including stock based compensation expense of approximately $1.2 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 27, 2008; Call 800-230-1059 (United States) or 612-332-0923 (International) and request "Dycom Results" 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 29, 2008.
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 facility locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2008 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 CONDENSED CONSOLIDATED BALANCE SHEETS January 26, 2008 and July 28, 2007 Unaudited January 26, July 28, 2008 2007 ----------- ----------- ($ in 000's) ASSETS Current Assets: Cash and equivalents $27,259 $18,862 Accounts receivable, net 128,770 146,864 Costs and estimated earnings in excess of billings 79,092 95,392 Deferred tax assets, net 19,448 15,478 Income taxes receivable 9,170 - Inventories 9,538 8,268 Other current assets 12,416 7,266 Current assets of discontinued operations 255 307 ----------- ----------- Total current assets 285,948 292,437 Property and equipment, net 174,251 164,544 Intangible assets, net 317,012 320,952 Other 11,207 11,831 ----------- ----------- Total $788,418 $789,764 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $25,674 $30,375 Current portion of debt 2,883 3,301 Billings in excess of costs and estimated earnings 1,067 712 Accrued self-insured claims 29,774 26,902 Income taxes payable - 1,947 Other accrued liabilities 60,042 63,076 Current liabilities of discontinued operations 1,126 939 ----------- ----------- Total current liabilities 120,566 127,252 Long-term debt 152,119 163,509 Accrued self-insured claims 35,624 33,085 Deferred tax liabilities, net non-current 16,767 19,316 Other liabilities 8,178 1,322 Non-current liabilities of discontinued operations 565 649 Stockholders' Equity 454,599 444,631 ----------- ----------- Total $788,418 $789,764 =========== =========== NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three Three Six Six Months Months Months Months Ended Ended Ended Ended January 26, January 27, January 26, January 27, 2008 2007 2008 2007 ----------- ----------- ----------- ----------- (In 000's, except per share amounts) Contract revenues $284,758 $258,293 $614,430 $528,846 ----------- ----------- ----------- ----------- Cost of earned revenues, excluding depreciation and amortization 247,906 210,771 509,218 428,536 General and administrative expenses (1) 22,315 21,395 47,923 43,074 Depreciation and amortization 16,910 14,142 32,957 26,637 ----------- ----------- ----------- ----------- Total 287,131 246,308 590,098 498,247 ----------- ----------- ----------- ----------- Interest income 171 234 381 627 Interest expense (3,566) (3,953) (7,122) (7,710) Other income, net 798 1,129 2,370 1,624 ----------- ----------- ----------- ----------- Income (loss) from continuing operations before income taxes (4,970) 9,395 19,961 25,140 Provision (benefit) for income taxes (1,837) 3,747 7,837 9,966 ----------- ----------- ----------- ----------- Income (loss) from continuing operations (3,133) 5,648 12,124 15,174 Loss from discontinued operations, net of tax (2) (93) (63) (422) (29) ----------- ----------- ----------- ----------- Net income (loss) $(3,226) $5,585 $ 11,702 $15,145 =========== =========== =========== =========== Earnings (loss) per common share - Basic: Income (loss) from continuing operations $(0.08) $0.14 $0.30 $0.38 Loss from discontinued operations - - (0.01) - ----------- ----------- ----------- ----------- Net income (loss) $(0.08) $0.14 $0.29 $0.38 =========== =========== =========== =========== Earnings (loss) per common share - Diluted: Income (loss) from continuing operations $(0.08) $0.14 $0.30 $0.37 Loss from discontinued operations - - (0.01) - ----------- ----------- ----------- ----------- Net income (loss) $(0.08) $0.14 $0.28 $0.37 =========== =========== =========== =========== Shares used in computing earnings (loss) per common share: Basic 40,799,664 40,295,932 40,759,267 40,253,498 =========== =========== =========== =========== Diluted 40,799,664 40,599,162 41,073,223 40,553,092 =========== =========== =========== =========== Earnings per share amounts may not add due to rounding. (1) Includes stock-based compensation expense of $1.0 million and $3.2 million for the three and six months ended January 26, 2008, respectively, and $1.6 million and $3.3 million for the three and six months ended January 27, 2007, respectively. (2) 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. NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INFORMATION Unaudited Three Three Six Six Months Months Months Months Ended Ended Ended Ended January 26, January 27, January 26, January 27, 2008 2007 2008 2007 ----------- ----------- ----------- ----------- (In 000's, except per share amounts) Item: Charge for wage and hour litigation $(7,591) $ - $(7,591) $ - =========== =========== =========== =========== GAAP income (loss) from continuing operations $(3,133) $5,648 $12,124 $15,174 Adjustment for item above, net of tax 4,597 - 4,597 - ----------- ----------- ----------- ----------- Non-GAAP income from continuing operations $1,464 $5,648 $16,721 $15,174 =========== =========== =========== =========== Earnings (loss) per common share from continuing operations: Basic earnings (loss) per share from continuing operations - GAAP $(0.08) $0.14 $0.30 $0.38 Adjustment for item above 0.11 - 0.11 - ----------- ----------- ----------- ----------- Basic earnings per share from continuing operations - Non-GAAP (1) $0.04 $0.14 $0.41 $0.38 =========== =========== =========== =========== Diluted earnings (loss) per share from continuing operations- GAAP $(0.08) $0.14 $0.30 $0.37 Adjustment for item above 0.11 - 0.11 - ----------- ----------- ----------- ----------- Diluted earnings per share from continuing operations - Non-GAAP (1) $0.04 $0.14 $0.41 $0.37 =========== =========== =========== =========== Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for item above: Basic 40,799,664 40,295,932 40,759,267 40,253,498 =========== =========== =========== =========== Diluted 40,799,664 40,599,162 41,073,223 40,553,092 =========== =========== =========== =========== Shares used in computing Non-GAAP earnings per common share from continuing operations: Basic 40,799,664 40,295,932 40,759,267 40,253,498 =========== =========== =========== =========== Diluted 41,106,655 40,599,162 41,127,577 40,553,092 =========== =========== =========== =========== (1) Amounts may not add due to rounding.
