PALM BEACH GARDENS, Fla., Aug. 26 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced its results today for the fourth quarter ended July 26, 2008. The Company reported income from continuing operations for the quarter ended July 26, 2008 on a non-GAAP basis of $9.1 million, or $0.23 per common share diluted. This excludes a non-cash impairment charge of $9.7 million resulting from the Company's annual goodwill impairment test and a reduction of interest and income tax expense of $0.4 million and $1.1 million, respectively, related to the reversal of certain income tax related liabilities. The combined effect of these items was to decrease income from continuing operations by $4.5 million, net of tax, or $0.11 per common share diluted, for the quarter ended July 26, 2008. On a GAAP basis, income from continuing operations for the quarter ended July 26, 2008 was $4.6 million, or $0.12 per common share diluted, versus income from continuing operations for the quarter ended July 28, 2007 of $14.5 million, or $0.35 per common share diluted. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Total contract revenues for the quarter ended July 26, 2008 were $322.1 million compared to total contract revenues of $317.3 million for the quarter ended July 28, 2007, an increase of 1.5%. Stock-based compensation expense for the quarter ended July 26, 2008 and quarter ended July 28, 2007 was $0.6 million and $1.5 million, respectively, on a pre-tax basis.
For the year ended July 26, 2008, income from continuing operations on a non-GAAP basis was $31.4 million, or $0.77 per common share diluted. This excludes the non-cash goodwill impairment charge and reductions in interest and income tax expense, an accrual related to the previously announced wage and hour class action settlement and the reversal of a pre-acquisition payroll related accrual for the year ended July 26, 2008. On a combined basis, these items decreased income from continuing operations $7.0 million, net of tax, or $0.17 per common share diluted, for the year ended July 26, 2008. For the year ended July 28, 2007, income from continuing operations on a non-GAAP basis was $40.7 million, or $1.00 per common share diluted, excluding a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. On a GAAP basis, income from continuing operations for the year ended July 26, 2008 was $24.4 million, or $0.60 per common share diluted, compared to income from continuing operations of $42.2 million, or $1.04 per common share diluted, for the year ended July 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Total contract revenues from continuing operations for the year ended July 26, 2008 were $1.230 billion compared to total contract revenues from continuing operations of $1.138 billion for the year ended July 28, 2007, an increase of 8.1%. Stock-based compensation expense for the year ended July 26, 2008 and the year ended July 28, 2007 was $5.2 million and $6.2 million, respectively, on a pre-tax basis.
Net income, including the results of discontinued operations, for the quarter ended July 26, 2008 was $3.1 million, or $0.08 per common share diluted, compared to $14.3 million, or $0.35 per common share diluted for the quarter ended July 28, 2007. Net income, including the results of discontinued operations, for the year ended July 26, 2008 was $21.7 million, or $0.53 per common share diluted, compared to $41.9 million, or $1.03 per common share diluted, for the year ended July 28, 2007.
Dycom also announced its outlook for the first quarter of fiscal 2009. The Company currently expects revenue for the first quarter of fiscal 2009 to range from $305 million to $325 million and diluted earnings per share to range from $0.18 to $0.23. Included in the expected results is stock-based compensation expense of approximately $1.8 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 27, 2008; Call 800-230-1059 (United States) or 612-234-9959 (International) ten minutes before the conference call begins and ask for the "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 also be available at http://www.dycomind.com/ until Friday, September 26, 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 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, 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 26, 2008 and July 28, 2007 Unaudited July 26, July 28, 2008 2007 -------- -------- ($ in 000's) ASSETS Current Assets: Cash and equivalents $22,068 $18,862 Accounts receivable, net 146,420 146,864 Costs and estimated earnings in excess of billings 94,270 95,392 Deferred tax assets, net 19,474 15,478 Income taxes receivable 6,014 - Inventories 8,994 8,268 Other current assets 7,301 7,266 Current assets of discontinued operations 667 307 -------- -------- Total current assets 305,208 292,437 Property and equipment, net 170,479 164,544 Intangible assets, net 302,998 320,952 Other 10,478 11,831 Total $789,163 $789,764 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $29,835 $30,375 Current portion of debt 2,306 3,301 Billings in excess of costs and estimated earnings 483 712 Accrued insurance claims 29,834 26,902 Income taxes payable - 1,947 Other accrued liabilities 66,275 63,076 Current liabilities of discontinued operations 2,731 939 -------- -------- Total current liabilities 131,464 127,252 Long-term debt 151,049 163,509 Accrued insurance claims 37,175 33,085 Deferred tax liabilities, net non-current 19,641 19,316 Other liabilities 5,314 1,322 Non-current liabilities of discontinued operations 427 649 Stockholders' Equity 444,093 444,631 -------- -------- Total $789,163 $789,764 ======== ======== NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended July 26, July 28, July 26, July 28, 2008 2007 2008 2007 ------------ ------------ ------------- ------------- (In 000's, except per share amounts) Contract revenues $322,087 $317,324 $1,229,956 $1,137,812 ------------ ------------ ------------- ------------- Cost of earned revenues, excluding depreciation and amortization 262,403 253,057 1,011,219 915,250 General and administrative expenses (1) 26,050 23,304 98,942 90,090 Depreciation and amortization 17,030 15,835 67,288 57,799 Goodwill impairment charge 9,672 - 9,672 - ------------ ------------ ------------- ------------- Total 315,155 292,196 1,187,121 1,063,139 ------------ ------------ ------------- ------------- Interest income 73 165 691 966 Interest expense (2,865) (3,503) (13,096) (14,809) Other income, net 2,113 1,833 7,154 8,647 ------------ ------------ ------------- ------------- Income from continuing operations before income taxes 6,253 23,623 37,584 69,477 Provision for income taxes 1,666 9,165 13,180 27,275 ------------ ------------ ------------- ------------- Income from continuing operations 4,587 14,458 24,404 42,202 Loss from discontinued operations, net of tax (2) (1,497) (164) (2,726) (318) ------------ ------------ ------------- ------------- Net income $3,090 $14,294 $21,678 $41,884 ============ ============ ============= ============= Earnings per common share - Basic: Income from continuing operations $0.12 $0.36 $0.60 $1.04 Loss from discontinued operations (0.04) - (0.07) (0.01) ------------ ------------ ------------- ------------- Net income $0.08 $0.35 $0.54 $1.04 ============ ============ ============= ============= Earnings per common share - Diluted: Income from continuing operations $0.12 $0.35 $0.60 $1.04 Loss from discontinued operations (0.04) - (0.07) (0.01) ------------ ----------- -------------- ------------- Net income $0.08 $0.35 $0.53 $1.03 ============ =========== ============== ============= Shares used in computing earnings per common share: Basic 39,718,070 40,659,201 40,417,945 40,407,641 ============ =========== ============== ============= Diluted 39,801,674 41,066,597 40,601,739 40,713,895 ============ =========== ============== ============= Earnings per share amounts may not add due to rounding.
(1) Includes stock-based compensation expense of $0.6 million and $5.2 million for the three and twelve months ended July 26, 2008, respectively, and $1.5 million and $6.2 million for the three and twelve months ended July 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 Twelve Months Twelve Months Ended Ended Ended Ended July 26, July 28, July 26, July 28, 2008 2007 2008 2007 ------------ ------------ ------------- ------------- (In 000's, except per share amounts) Items: Goodwill impairment charge $(9,672) $- $(9,672) $- Reversal of interest expense on income tax related liabilities 377 - 716 - Reversal of income tax related liabilities 1,133 - 1,991 - Charge for wage and hour litigation - - (7,591) - Reversal of pre-acquisition payroll related accruals - - 1,680 - Gain on sale of real estate - - - 2,485 ------------ ------------ ------------- ------------- $(8,162) $- $(12,876) $2,485 ============ ============ ============= ============= GAAP income from continuing operations $4,587 $14,458 $24,404 $42,202 Adjustment for items above, net of tax 4,507 - 6,953 (1,508) ------------ ------------ ------------- ------------- Non-GAAP income from continuing operations $9,094 $14,458 $31,357 $40,694 ============ ============ ============= ============= Earnings per common share from continuing operations: Basic earnings per share from continuing operations - GAAP $0.12 $0.36 0.60 $1.04 Adjustment for items above 0.11 - 0.17 (0.04) ------------ ------------ ------------- ------------- Basic earnings per share from continuing operations - Non-GAAP (1) $0.23 $0.36 0.78 $1.01 ============ ============ ============= ============= Diluted earnings per share from continuing operations - GAAP $0.12 $0.35 0.60 $1.04 Adjustment for items above 0.11 - 0.17 (0.04) ------------ ------------ ------------- ------------- Diluted earnings per share from continuing operations- Non-GAAP (1) $0.23 $0.35 0.77 $1.00 ============ ============ ============= ============= Shares used in computing GAAP earnings per common share from continuing operations and adjustment for items above (2): Basic 39,718,070 40,659,201 40,417,945 40,407,641 =========== =========== ============= ============ Diluted 39,801,674 41,066,597 40,601,739 40,713,895 =========== =========== ============= ============ Shares used in computing Non-GAAP earnings per common share from continuing operations (2): Basic 39,718,070 40,659,201 40,417,945 40,407,641 =========== =========== ============= ============ Diluted 39,801,674 41,066,597 40,628,916 40,713,895 =========== =========== ============= ============ (1) Amounts may not add due to rounding.
(2) On each of August 28, 2007 and May 20, 2008, 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 (for a cumulative authorization of $30 million). The Company repurchased 677,300 shares of its common stock during the three months ended July 26, 2008. The total amount repurchased during the twelve months ended July 26, 2008 was 1,693,500 shares.
