PALM BEACH GARDENS, Fla., Feb. 24 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced today its results for the second quarter ended January 24, 2009. The Company reported a loss from continuing operations for the quarter ended January 24, 2009 of ($78.3) million, or ($1.99) per common share, versus a loss from continuing operations for the quarter ended January 26, 2008 of ($3.1) million, or ($0.08) per common share. Total contract revenues from continuing operations for the quarter ended January 24, 2009 were $245.5 million compared to $284.8 million for the quarter ended January 26, 2008, a decrease of 13.8%.
For the quarter ended January 24, 2009, loss from continuing operations included a pre-tax gain of approximately $1.3 million related to the buyback of $4.65 million aggregate principal amount of the Company's senior subordinated notes due 2015 and a preliminary goodwill impairment charge of $96.8 million. This pre-tax impairment charge is the result of an interim test for impairment prompted by a sustained reduction in the Company's market capitalization compared to the book value of shareholders' equity. The interim impairment testing includes a reassessment of a number of valuation assumptions, including customer spending in the current economic environment. The Company expects to complete its impairment analysis in the third quarter of fiscal 2009. For the quarter ended January 26, 2008, loss from continuing operations included a pre-tax $7.6 million charge related to the settlement of a wage and hour class action. On a non-GAAP basis, excluding the aforementioned items, loss from continuing operations for the quarter ended January 24, 2009 was ($1.7) million, or ($0.04) per common share, versus income from continuing operations of $1.5 million, or $0.04 per common share diluted, for the quarter ended January 26, 2008. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
For the six months ended January 24, 2009, loss from continuing operations was ($67.8) million, or ($1.72) per common share, versus income from continuing operations for the six months ended January 26, 2008 of $12.1 million, or $0.30 per common share diluted. Total contract revenues from continuing operations for the six months ended January 24, 2009 were $579.5 million compared to $614.4 million for the six months ended January 26, 2008, a decrease of 5.7%.
For the six months ended January 24, 2009, loss from continuing operations included the pre-tax gain of approximately $1.3 million and the pre-tax goodwill impairment charge referred to above in addition to a write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company's credit facility in the first quarter of fiscal 2009. For the six months ended January 26, 2008, income from continuing operations included the $7.6 million pre-tax charge related to the settlement of the wage and hour class action referred to above. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the six months ended January 24, 2009 was $9.2 million, or $0.23 per common share diluted, versus income from continuing operations of $16.7 million, or $0.41 per common share diluted, for the six months ended January 26, 2008. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
A Tele-Conference call to review the Company's results will be hosted at 9:00 a.m. (ET), Wednesday, February 25, 2009; Call 800-398-9402 (United States) or 612-332-0806 (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, March 27, 2009.
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.
The fiscal 2009 second quarter results are preliminary and the 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, goodwill impairment and earnings (loss) 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.
---Tables Follow--- NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS January 24, 2009 and July 26, 2008 Unaudited January 24, July 26, 2009 2008 -------- --------- ($ in 000's) ASSETS Current Assets: Cash and equivalents $74,037 $22,068 Accounts receivable, net 115,146 146,420 Costs and estimated earnings in excess of billings 58,047 94,270 Deferred tax assets, net 16,788 19,347 Income taxes receivable 10,921 6,014 Inventories 9,639 8,994 Other current assets 12,820 7,301 Current assets of discontinued operations 644 667 -------- --------- Total current assets 298,042 305,081 Property and equipment, net 156,801 170,479 Goodwill (1) 159,598 256,394 Intangible assets, net 59,334 62,860 Other 11,605 10,478 -------- --------- Total $685,380 $805,292 ======== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $22,717 $29,835 Current portion of debt 1,759 2,306 Billings in excess of costs and estimated earnings 332 483 Accrued insurance claims 32,671 29,834 Other accrued liabilities 44,060 66,275 Current liabilities of discontinued operations 638 2,731 -------- --------- Total current liabilities 102,177 131,464 Long-term debt 145,678 151,049 Accrued insurance claims 34,378 37,175 Deferred tax liabilities, net non- current (1) 20,047 35,770 Other liabilities 5,830 5,314 Non-current liabilities of discontinued operations 473 427 Stockholders' Equity 376,797 444,093 -------- --------- Total $685,380 $805,292 ======== ======== (1) Goodwill and Deferred tax liabilities, net non-current have been increased by $16.3 million on the Condensed Consolidated Balance Sheet of the Company at July 26, 2008. This correction is related to certain prior acquisitions and had no impact on the Company's Consolidated Statements of Operations or Consolidated Statements of Cash Flows. NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three Months Three Months Six Months Six Months Ended Ended Ended Ended January 24, January 26, January 24, January 26, 2009 2008 2009 2008 ---------- ---------- ---------- ---------- (In 000's, except per share amounts) Contract revenues $245,522 $284,758 $579,489 $614,430 ---------- ---------- ---------- ---------- Cost of earned revenues, excluding depreciation and amortization 205,860 247,906 474,506 509,218 General and administrative expenses (1) 21,535 22,315 49,074 47,923 Depreciation and amortization 16,817 16,910 33,429 32,957 Goodwill impairment charge 96,796 - 96,796 - ---------- ---------- ---------- ---------- Total 341,008 287,131 653,805 590,098 Interest income 40 171 174 381 Interest expense (4,099) (3,566) (8,151) (7,122) Other income, net 1,832 798 2,234 2,370 ---------- ---------- ---------- ---------- Income (loss) from continuing operations before income taxes (97,713) (4,970) (80,059) 19,961 Provision (benefit) for income taxes (19,371) (1,837) (12,301) 7,837 ---------- ---------- ---------- ---------- Income (loss) from continuing operations (78,342) (3,133) (67,758) 12,124 Loss from discontinued operations, net of tax - (93) (37) (422) ---------- ---------- ---------- ---------- Net income (loss) $(78,342) $(3,226) $(67,795) $11,702 ========== ========== ========== ========== Earnings (loss) per common share - Basic: Income (loss) from continuing operations $(1.99) $(0.08) $(1.72) $0.30 Loss from discontinued operations - - - (0.01) ---------- ---------- ---------- ---------- Net income (loss) $(1.99) $(0.08) $(1.72) $0.29 ========== ========== ========== ========== Earnings (loss) per common share - Diluted: Income (loss) from continuing operations $(1.99) $(0.08) $(1.72) $0.30 Loss from discontinued operations - - - (0.01) ---------- ---------- ---------- ---------- Net income (loss) $(1.99) $(0.08) $(1.72) $0.28 ========== ========== ========== ========== Shares used in computing earnings (loss) per common share: Basic 39,379,470 40,799,664 39,350,611 40,759,267 ========== ========== ========== ========== Diluted 39,379,470 40,799,664 39,350,611 41,073,223 ========== ========== ========== ========== Earnings per share amounts may not add due to rounding. (1) Includes stock-based compensation expense of $0.3 million and $1.9 million for the three and six months ended January 24, 2009, respectively, and $1.0 million and $3.2 million for the three and six months ended January 26, 2008, respectively. NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INFORMATION Unaudited Three Months Three Months Six Months Six Months Ended Ended Ended Ended January 24, January 26, January 24, January 26, 2009 2008 2009 2008 ---------- ---------- ---------- ---------- (In 000's, except per share amounts) Item: Goodwill impairment charge $(96,796) $ - $(96,796) $ - Charge for wage and hour class action settlement - (7,591) - (7,591) Gain on debt extinguishment, net 1,300 - 1,300 - Write-off of deferred financing costs - - (551) - ---------- ---------- ---------- ---------- $(95,496) $(7,591) $(96,047) $(7,591) ========== ========== ========== ========== GAAP income (loss) from continuing operations $(78,342) $(3,133) $(67,758) $12,124 Adjustment for items above, net of tax 76,638 4,597 76,969 4,597 ---------- ---------- ---------- ---------- Non-GAAP income (loss) from continuing operations $(1,704) $1,464 $9,211 $16,721 ========== ========== ========== ========== Earnings (loss) per common share from continuing operations: Basic earnings (loss) per share from continuing operations - GAAP $(1.99) $(0.08) $(1.72) $0.30 Adjustment for items above 1.95 0.11 1.96 0.11 ---------- ---------- ---------- ---------- Basic earnings (loss) per common share from continuing operations - Non-GAAP $(0.04) $0.04 $0.23 $0.41 ========== ========== ========== ========== Diluted earnings (loss) per share from continuing operations - GAAP $(1.99) $(0.08) $(1.72) $0.30 Adjustment for items above 1.95 0.11 1.96 0.11 ---------- ---------- ---------- ---------- Diluted earnings (loss) per common share from continuing operations- Non- GAAP $(0.04) $0.04 $0.23 $0.41 ========== ========== ========== ========== Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for items above: Basic 39,379,470 40,799,664 39,350,611 40,759,267 ========== ========== ========== ========== Diluted 39,379,470 40,799,664 39,350,611 41,073,223 ========== ========== ========== ========== Shares used in computing Non-GAAP earnings (loss) per common share from continuing operations: Basic 39,379,470 40,799,664 39,350,611 40,759,267 ========== ========== ========== ========== Diluted 39,379,470 41,106,655 39,430,966 41,127,577 ========== ========== ========== ========== Earnings per share amounts may not add due to rounding.
