PALM BEACH GARDENS, Fla., May 20 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced today its results for the third quarter ended April 26, 2008. The Company reported income from continuing operations for the quarter ended April 26, 2008 of $7.7 million, or $0.19 per common share diluted, versus income from continuing operations for the quarter ended April 28, 2007 of $12.6 million, or $0.31 per common share diluted. Net income, including the results of discontinued operations, for the quarter ended April 26, 2008 was $6.9 million, or $0.17 per common share diluted, compared to net income of $12.4 million, or $0.31 per common share diluted, for the quarter ended April 28, 2007. Total contract revenues from continuing operations for the quarter ended April 26, 2008 were $293.4 million compared to $291.6 million for the quarter ended April 28, 2007, an increase of 0.6%. Stock based compensation expense for the each of the quarters ended April 26, 2008 and April 28, 2007 was $1.4 million, on a pre-tax basis.
Income from continuing operations for the quarter ended April 26, 2008 included a reduction of interest and income tax expense of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax related liabilities and a reduction of $1.7 million in the cost of earned revenues related to the reversal of a pre-acquisition payroll related accrual. The aggregate effect of these items was to increase income from continuing operations by $2.1 million, net of tax, or $0.05 per common share diluted for the quarter ended April 26, 2008. Income from continuing operations for the quarter ended April 28, 2007 included a gain on sale of real estate of $1.5 million, net of tax, or $0.04 per common share diluted. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the quarter ended April 26, 2008 was $5.5 million, or $0.14 per common share diluted, versus $11.1 million, or $0.27 per common share diluted, for the quarter ended April 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
For the nine months ended April 26, 2008 income from continuing operations was $19.8 million, or $0.48 per common share diluted, versus income from continuing operations for the nine months ended April 28, 2007 of $27.7 million, or $0.68 per common share diluted. Net income, including the results of discontinued operations, for the nine months ended April 26, 2008 was $18.6 million or $0.45 per common share diluted, compared to net income of $27.6 million, or $0.68 per common share diluted for the nine months ended April 28, 2007. Total contract revenues from continuing operations for the nine months ended April 26, 2008 were $907.9 million compared to $820.5 million for the nine months ended April 28, 2007, an increase of 10.6%. Stock based compensation expense for the nine months ended April 26, 2008 and the nine months ended April 28, 2007 was $4.6 million and $4.8 million, respectively, on a pre-tax basis.
Income from continuing operations for the nine months ended April 26, 2008 included the accrual of $7.6 million related to the previously announced wage and hour class action settlement with respect to three of the Company's subsidiaries. Additionally, income from continuing operations includes a reduction of interest and income tax expense of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax related liabilities and a reduction of $1.7 million in the cost of earned revenues related to the reversal of a pre-acquisition payroll related accrual. On a combined basis, these items decreased income from continuing operations $2.5 million, net of tax, or $0.06 per common share diluted for the nine months ended April 26, 2008. Income from continuing operations for the nine months ended April 28, 2007 included a gain on sale of real estate of $1.5 million, net of tax, or $0.04 per common share diluted. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the nine months ended April 26, 2008 was $22.3 million, or $0.54 per common share diluted, versus $26.2 million, or $0.65 per common share diluted, for the nine months ended April 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Dycom also announced its outlook for the fourth quarter of fiscal 2008. The Company currently expects revenue from continuing operations for the fourth quarter of fiscal 2008 to range from $305 million to $325 million and diluted earnings per share from continuing operations to range from $0.18 to $0.23, including stock based compensation expense of approximately $1.1 million on a pre-tax basis. Management currently 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 21, 2008; Call 800- 230-1096 (United States) or 612-332-0107 (International) and request "Dycom Results" conference call. A live webcast of the conference call, along with a slide presentation, will be available at http://www.dycomind.com/ under the heading "Investors" and subheading "Event Details." If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the slide presentation will be available at http://www.dycomind.com/ until Friday, June 20, 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 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, 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 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.
---Tables Follow--- NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS April 26, 2008 and July 28, 2007 Unaudited April 26, July 28, 2008 2007 ---------- --------- ($ in 000's) ASSETS Current Assets: Cash and equivalents $25,040 $18,862 Accounts receivable, net 127,856 146,864 Costs and estimated earnings in excess of billings 84,764 95,392 Deferred tax assets, net 19,229 15,478 Income taxes receivable 9,380 - Inventories 8,854 8,268 Other current assets 9,628 7,266 Current assets of discontinued operations 171 307 --------- --------- Total current assets 284,922 292,437 Property and equipment, net 177,027 164,544 Intangible assets, net 314,584 320,952 Other 10,668 11,831 --------- --------- Total $787,201 $789,764 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $28,778 $30,375 Current portion of debt 2,518 3,301 Billings in excess of costs and estimated earnings 613 712 Accrued self-insured claims 31,652 26,902 Income taxes payable - 1,947 Other accrued liabilities 55,479 63,076 Current liabilities of discontinued operations 1,608 939 --------- --------- Total current liabilities 120,648 127,252 Long-term debt 151,529 163,509 Accrued self-insured claims 35,468 33,085 Deferred tax liabilities, net non- current 20,599 19,316 Other liabilities 6,953 1,322 Non-current liabilities of discontinued operations 507 649 Stockholders' Equity 451,497 444,631 --------- --------- Total $787,201 $789,764 ========= ========= NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended April 26, April 28, April 26, April 28, 2008 2007 2008 2007 ------------ ------------ ----------- ----------- (In 000's, except per share amounts) Contract revenues $293,440 $291,643 $907,869 $820,488 ------------ ------------ ----------- ----------- Cost of earned revenues, excluding depreciation and amortization 239,598 233,657 748,816 662,193 General and administrative expenses (1) 24,969 23,712 72,892 66,786 Depreciation and amortization 17,301 15,327 50,258 41,964 ------------ ------------ ----------- ----------- Total 281,868 272,696 871,966 770,943 ------------ ------------ ----------- ----------- Interest income 238 174 619 801 Interest expense (3,110) (3,596) (10,231) (11,306) Other income, net 2,670 5,189 5,040 6,814 ------------ ------------ ----------- ----------- Income from continuing operations before income taxes 11,370 20,714 31,331 45,854 Provision for income taxes 3,677 8,144 11,515 18,110 ------------ ------------ ----------- ----------- Income from continuing operations 7,693 12,570 19,816 27,744 Loss from discontinued operations, net of tax (2) (807) (125) (1,228) (154) ------------ ------------ ----------- ----------- Net income $6,886 $12,445 $18,588 $27,590 ============ ============ =========== =========== Earnings per common share - Basic: Income from continuing operations $0.19 $0.31 $0.49 $0.69 Loss from discontinued operations (0.02) - (0.03) (0.01) ------------ ------------ ----------- ----------- Net income $0.17 $0.31 $0.46 $0.68 ============ ============ =========== =========== Earnings per common share - Diluted: Income from continuing operations $0.19 $0.31 $0.48 $0.68 Loss from discontinued operations (0.02) - (0.03) - ------------ ------------ ----------- ----------- Net income $0.17 $0.31 $0.45 $0.68 ============ ============ =========== =========== Shares used in computing earnings per common share: Basic 40,436,212 40,469,787 40,651,236 40,324,503 ============ ============ =========== =========== Diluted 40,486,765 40,770,976 40,865,349 40,622,116 ============ ============ =========== =========== Earnings per share amounts may not add due to rounding. (1) Includes stock-based compensation expense of $1.4 million and $4.6 million for the three and nine months ended April 26, 2008, respectively, and $1.4 million and $4.8 million for the three and nine months ended April 28, 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 Months Three Months Nine Months Nine Months Ended Ended Ended Ended April 26, April 28, April 26, April 28, 2008 2007 2008 2007 ------------ ------------ ----------- ----------- (In 000's, except per share amounts) Items: Charge for wage and hour litigation $- $- $(7,591) $- Reversal of interest expense on income tax related liabilities 339 - 339 - Reversal of income tax related liabilities 858 - 858 - Reversal of pre-acquisition payroll related accruals 1,680 - 1,680 Gain on sale of real estate - 2,485 - 2,485 ---------- ---------- --------- --------- $2,877 $2,485 $(4,714) $2,485 ========== ========== ========= ========= GAAP income from continuing operations $7,693 $12,570 $19,816 $27,744 Adjustment for items above, net of tax (2,144) (1,508) 2,451 (1,508) ---------- ---------- --------- --------- Non-GAAP income from continuing operations $5,549 $11,062 $22,267 $26,236 ========== ========== ========= ========= Earnings per common share from continuing operations: Basic earnings per share from continuing operations - GAAP $.19 $.31 0.49 $.69 Adjustment for items above (0.05) (0.04) 0.06 (0.04) ---------- ---------- --------- --------- Basic earnings per share from continuing operations - Non-GAAP (1) $.14 $.27 0.55 $0.65 ========== ========== ========= ========= Diluted earnings per share from continuing operations - GAAP $0.19 $0.31 0.48 $0.68 Adjustment for items above (0.05) (0.04) 0.06 (0.04) ---------- ---------- --------- --------- Diluted earnings per share from continuing operations- Non-GAAP (1) $0.14 $0.27 0.54 $0.65 ========== ========== ========= ========= Shares used in computing GAAP earnings per common share from continuing operations and adjustment for items above (2): Basic 40,436,212 40,469,787 40,651,236 40,324,503 =========== =========== ========== ========== Diluted 40,486,765 40,770,976 40,865,349 40,622,116 =========== =========== ========== ========== Shares used in computing Non-GAAP earnings per common share from continuing operations (2): Basic 40,436,212 40,469,787 40,651,236 40,324,503 =========== =========== ========== ========== Diluted 40,486,765 40,770,976 40,901,585 40,622,116 =========== =========== ========== ========== (1) Amounts may not add due to rounding. (2) On August 28, 2007, the Company's Board of Directors authorized the repurchase of up to $15 million of its common stock over an eighteen month period in open market or private transactions. The Company repurchased 922,200 shares of its common stock during the three months ended April 26, 2008. The total amount repurchased during the nine months ended April 26, 2008 was 1,016,200 shares.
