PALM BEACH GARDENS, Fla., May 19 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced today its results for the third quarter ended April 25, 2009. The Company reported:
-- contract revenues from continuing operations of $257.7 million for the quarter ended April 25, 2009, compared to $293.4 million for the quarter ended April 26, 2008, a decrease of 12.2%; -- income from continuing operations on a GAAP basis of $7.6 million, or $0.19 per common share diluted, for the quarter ended April 25, 2009, compared to $7.7 million, or $0.19 per common share diluted, for the quarter ended April 26, 2008; and -- income from continuing operations on a non-GAAP basis of $5.0 million, or $0.13 per common share diluted, for the quarter ended April 25, 2009, compared to $5.5 million, or $0.14 per common share diluted, for the quarter ended April 26, 2008.
Non-GAAP income from continuing operations for the quarter ended April 25, 2009 excludes a pre-tax gain of $1.7 million related to the buyback of $10.0 million principal amount of the Company's senior subordinated notes due 2015, and a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax liabilities no longer required. For the quarter ended April 26, 2008, non-GAAP income from continuing operations excludes a reduction of $1.7 million in cost of earned revenues related to the reversal of pre-acquisition payroll related accruals, and a reduction of interest and income tax expenses of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax liabilities no longer required. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
The Company also reported: -- contract revenues from continuing operations of $837.2 million for the nine months ended April 25, 2009 compared to $907.9 million for the nine months ended April 26, 2008, a decrease of 7.8%; -- loss from continuing operations on a GAAP basis of ($59.8) million, or ($1.52) per common share diluted, for the nine months ended April 25, 2009, compared to income from continuing operations of $19.8 million, or $0.48 per common share diluted, for the nine months ended April 26, 2008; and -- income from continuing operations on a non-GAAP basis of $14.2 million, or $0.36 per common share diluted, for the nine months ended April 25, 2009, compared to $22.3 million, or $0.54 per common share diluted, for the nine months ended April 26, 2008.
Non-GAAP income from continuing operations for the nine months ended April 25, 2009 excludes a pre-tax gain of approximately $3.0 million related to the buyback of $14.65 million principal amount of the Company's senior subordinated notes due 2015, a goodwill impairment charge of $94.4 million, the write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company's credit facility, and a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax liabilities no longer required. For the nine months ended April 26, 2008, non-GAAP income from continuing operations excludes a $7.6 million charge in cost of earned revenues related to a wage and hour class action settlement with respect to three of the Company's subsidiaries, a reduction of $1.7 million in cost of earned revenues related to the reversal of pre-acquisition payroll related accruals, and a reduction of interest and income tax expenses of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax liabilities no longer required. 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, May 20, 2009; Call 800-230-1074 (United States) or 612-288-0337 (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 19, 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.
Fiscal 2009 third quarter and nine-month results are preliminary and are unaudited. This press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. 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 April 25, 2009 and July 26, 2008 Unaudited April 25, July 26, 2009 2008 -------- -------- ($ in 000's) ASSETS Current Assets: Cash and equivalents $78,762 $22,068 Accounts receivable, net 108,239 146,420 Costs and estimated earnings in excess of billings 63,853 94,270 Deferred tax assets, net 15,695 19,347 Income taxes receivable 11,557 6,014 Inventories 9,153 8,994 Other current assets 10,018 7,301 Current assets of discontinued operations 164 667 -------- -------- Total current assets 297,441 305,081 Property and equipment, net 148,186 170,479 Goodwill 157,851 252,374 Intangible assets, net 57,695 62,860 Other 10,711 10,478 -------- -------- Total $671,884 $801,272 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $24,542 $29,835 Current portion of debt 1,394 2,306 Billings in excess of costs and estimated earnings 512 483 Accrued insurance claims 28,743 29,834 Other accrued liabilities 41,360 66,275 Current liabilities of discontinued operations 537 2,731 -------- -------- Total current liabilities 97,088 131,464 Long-term debt 135,487 151,049 Accrued insurance claims 30,463 37,175 Deferred tax liabilities, net non-current 21,595 31,750 Other liabilities 4,106 5,314 Non-current liabilities of discontinued operations 388 427 Stockholders' Equity 382,757 444,093 -------- -------- Total $671,884 $801,272 ======== ======== NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended April 25, April 26, April 25, April 26, 2009 2008 2009 2008 -------- -------- -------- -------- ($ in 000's, except per share amounts) Contract revenues $257,719 $293,440 $837,209 $907,869 -------- -------- -------- -------- Cost of earned revenues, excluding depreciation and amortization 206,733 239,598 681,239 748,816 General and administrative expenses (1) 24,276 24,969 73,350 72,892 Depreciation and amortization 16,163 17,301 49,592 50,258 Goodwill impairment charge - - 94,429 - -------- -------- -------- -------- Total 247,172 281,868 898,610 871,966 Interest income 60 238 234 619 Interest expense (3,162) (3,110) (11,313) (10,231) Other income, net 3,566 2,670 5,799 5,040 -------- -------- -------- -------- Income (loss) from continuing operations before income taxes 11,011 11,370 (66,681) 31,331 Provision (benefit) for income taxes 3,442 3,677 (6,882) 11,515 -------- -------- -------- -------- Income (loss) from continuing operations 7,569 7,693 (59,799) 19,816 Income (loss) from discontinued operations, net of tax 28 (807) (9) (1,228) -------- -------- -------- -------- Net income (loss) $7,597 $6,886 $(59,808) $18,588 ======== ======== ======== ======== Earnings (loss) per common share - Basic: Income (loss) from continuing operations $0.19 $0.19 $(1.52) $0.49 Income (loss) from discontinued operations - (0.02) - (0.03) -------- -------- -------- -------- Net income (loss) $0.19 $0.17 $(1.52) $0.46 ======== ======== ======== ======== Earnings (loss) per common share - Diluted: Income (loss) from continuing operations $0.19 $0.19 $(1.52) $0.48 Income (loss) from discontinued operations - (0.02) - (0.03) -------- -------- -------- -------- Net income (loss) $0.19 $0.17 $(1.52) $0.45 ======== ======== ======== ======== Shares used in computing earnings (loss) per common share: Basic 39,330,308 40,436,212 39,343,834 40,651,236 ========== ========== ========== ========== Diluted 39,346,102 40,486,765 39,343,834 40,865,349 ========== ========== ========== ========== (1) Includes stock-based compensation expense of $0.9 million and $2.8 million for the three and nine months ended April 25, 2009, respectively, and $1.4 million and $4.6 million for the three and nine months ended April 26, 2008, respectively. NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INFORMATION Unaudited Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended April 25, April 26, April 25, April 26, 2009 2008 2009 2008 -------- -------- -------- -------- ($ in 000's, except per share amounts) Reconciling Items (a): Items decreasing Income (loss) from continuing operations: Goodwill impairment charge $- $ - $(94,429) $ - Charge for wage and hour class action settlement $- $ - $ - $(7,591) Write-off of deferred financing costs $- $ - $ (551) $ - Items increasing Income (loss) from continuing operations: Gain on debt extinguishment, net $1,727 $ - $ 3,027 $ - Reversal of interest expense on certain income tax liabilities $ 268 $ 339 $ 268 $ 339 Reversal of certain income tax liabilities $1,358 $ 858 $ 1,358 $ 858 Reversal of pre- acquisition payroll related accruals $ - $1,680 $ - $ 1,680 (a) Reconciling Items reported above are on a pre-tax basis, except for "Reversal of certain income tax liabilities." GAAP income (loss) from continuing operations $7,569 $7,693 $(59,799) $19,816 Adjustment for Reconciling Items above, net of tax (2,560) (2,144) 74,019 2,451 -------- -------- -------- -------- Non-GAAP income from continuing operations $5,009 $5,549 $14,220 $22,267 ======== ======== ======== ======= Earnings (loss) per common share from continuing operations: Basic earnings (loss) per common share from continuing operations - GAAP $0.19 $0.19 $(1.52) $0.49 Adjustment for Reconciling Items above, net of tax (0.07) (0.05) 1.88 0.06 -------- -------- -------- -------- Basic earnings per common share from continuing operations - Non-GAAP $0.13 $0.14 $0.36 $0.55 ======== ======== ======== ======= Diluted earnings (loss) per common share from continuing operations - GAAP $0.19 $0.19 $(1.52) $0.48 Adjustment for Reconciling Items above, net of tax (0.07) (0.05) 1.88 0.06 -------- -------- -------- -------- Diluted earnings per common share from continuing operations- Non-GAAP $0.13 $0.14 $0.36 $0.54 ======== ======== ======== ======= Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling Items above: Basic 39,330,308 40,436,212 39,343,834 40,651,236 ========== ========== ========== ========== Diluted 39,346,102 40,486,765 39,343,834 40,865,349 ========== ========== ========== ========== Shares used in computing Non-GAAP earnings per common share from continuing operations: Basic 39,330,308 40,436,212 39,343,834 40,651,236 ========== ========== ========== ========== Diluted 39,346,102 40,486,765 39,393,923 40,901,585 ========== ========== ========== ========== Earnings per share amounts may not add due to rounding.
Dycom Industries, Inc.
CONTACT: Steven E. Nielsen, President and CEO, or H. Andrew DeFerrari,
Senior Vice President and CFO, +1-561-627-7171, both of Dycom Industries,
Inc.
Web Site: http://www.dycomind.com/
