PALM BEACH GARDENS, Fla., Aug. 25 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. announced today its results for the fourth quarter ended July 25, 2009. The Company reported:
-- contract revenues from continuing operations of $269.7 million for the quarter ended July 25, 2009, compared to $322.1 million for the quarter ended July 26, 2008, a decrease of 16.3%; -- income from continuing operations on a GAAP basis of $6.7 million, or $0.17 per common share diluted, for the quarter ended July 25, 2009, compared to $4.6 million, or $0.12 per common share diluted, for the quarter ended July 26, 2008; and -- income from continuing operations on a non-GAAP basis for the quarter ended July 26, 2008 was $9.1 million, or $0.23 per common share diluted.
Non-GAAP income from continuing operations for the quarter ended July 26, 2008 excludes a non-cash impairment charge of $9.7 million resulting from the Company's fiscal 2008 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 no longer required.
The Company also reported: -- contract revenues from continuing operations of $1,106.9 million for the year ended July 25, 2009 compared to $1,230.0 million for the year ended July 26, 2008, a decrease of 10.0%; -- loss from continuing operations on a GAAP basis of ($53.1) million, or ($1.35) per common share diluted, for the year ended July 25, 2009, compared to income from continuing operations of $24.4 million, or $0.60 per common share diluted, for the year ended July 26, 2008; and -- income from continuing operations on a non-GAAP basis of $20.9 million, or $0.53 per common share diluted, for the year ended July 25, 2009, compared to $31.4 million, or $0.77 per common share diluted, for the year ended July 26, 2008.
Non-GAAP income from continuing operations for the year ended July 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 and the write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company's credit facility. In addition, non-GAAP income from continuing operations for the year ended July 25, 2009 excludes 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 year ended July 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, a goodwill impairment charge of $9.7 million, and a reduction of interest and income tax expenses of $0.7 million and $2.0 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, August 26, 2009; Call 877-260-8900 (United States) or 612-332-0720 (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, September 25, 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 fourth quarter and annual 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 CONSOLIDATED BALANCE SHEETS July 25, 2009 and July 26, 2008 Unaudited July 25, July 26, 2009 2008 ---- ---- ($ in 000's) ASSETS Current Assets: Cash and equivalents $104,707 $22,068 Accounts receivable, net 116,968 146,420 Costs and estimated earnings in excess of billings 67,111 94,270 Deferred tax assets, net 15,779 19,347 Income taxes receivable 7,016 6,014 Inventories 8,303 8,994 Other current assets 7,323 7,968 ----- ----- Total current assets 327,207 305,081 Property and equipment, net 142,132 170,479 Goodwill 157,851 252,374 Intangible assets, net 56,056 62,860 Other 10,211 10,478 ------ ------ Total $693,457 $801,272 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $28,977 $29,835 Current portion of debt 926 2,306 Billings in excess of costs and estimated earnings 151 483 Accrued insurance claims 27,386 29,834 Other accrued liabilities 52,590 69,006 ------ ------ Total current liabilities 110,030 131,464 Long-term debt 135,377 151,049 Accrued insurance claims 29,759 37,175 Deferred tax liabilities, net non-current 22,910 31,750 Other liabilities 4,758 5,741 Stockholders' Equity 390,623 444,093 ------- ------- Total $693,457 $801,272 ======== ======== NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three Three Twelve Twelve Months Months Months Months Ended Ended Ended Ended July 25, July 26, July 25, July 26, 2009 2008 2009 2008 -------- -------- -------- -------- ($ in 000's, except per share amounts) Contract revenues $269,691 $322,087 $1,106,900 $1,229,956 -------- -------- ---------- ---------- Cost of earned revenues, excluding depreciation and amortization 213,646 262,403 894,885 1,011,219 General and administrative expenses (1) 25,381 26,050 98,732 98,942 Depreciation and amortization 15,843 17,030 65,435 67,288 Goodwill impairment charge - 9,672 94,429 9,672 ---- ----- ------ ----- Total 254,870 315,155 1,153,481 1,187,121 Interest income 26 73 260 691 Interest expense (3,429) (2,865) (14,742) (13,096) Other income, net 765 2,113 6,564 7,154 --- ----- ----- ----- Income (loss) from continuing operations before income taxes 12,183 6,253 (54,499) 37,584 Provision (benefit) for income taxes 5,477 1,666 (1,405) 13,180 ----- ----- ------ ------ Income (loss) from continuing operations 6,706 4,587 (53,094) 24,404 Loss from discontinued operations, net of tax (78) (1,497) (86) (2,726) --- ------ --- ------ Net income (loss) $6,628 $3,090 $(53,180) $21,678 ====== ====== ======== ======= Earnings (loss) per common share - Basic: Income (loss) from continuing operations $0.17 $0.12 $(1.35) $0.60 Loss from discontinued operations - (0.04) - (0.07) ---- ----- ---- ----- Net income (loss) $0.17 $0.08 $(1.35) $0.54 ===== ===== ====== ===== Earnings (loss) per common share - Diluted: Income (loss) from continuing operations $0.17 $0.12 $(1.35) $0.60 Loss from discontinued operations - (0.04) - (0.07) ---- ----- ---- ----- Net income (loss) $0.17 $0.08 $(1.35) $0.53 ===== ===== ====== ===== Shares used in computing earnings (loss) per common share: Basic 38,987,751 39,718,070 39,254,813 40,417,945 ========== ========== ========== ========== Diluted 39,133,159 39,801,674 39,254,813 40,601,739 ========== ========== ========== ========== Earnings (loss) per share amounts may not add due to rounding. (1) Includes stock-based compensation expense of $1.1 million and $3.9 million for the three and twelve months ended July 25, 2009, respectively, and $0.6 million and $5.2 million for the three and twelve months ended July 26, 2008, respectively. NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INFORMATION Unaudited Three Three Twelve Twelve Months Months Months Months Ended Ended Ended Ended July 25, July 26, July 25, July 26, 2009 2008 2009 2008 -------- -------- -------- -------- ($ in 000's, except per share amounts) Reconciling Items (a): Items decreasing Income (loss) from continuing operations: Goodwill impairment charge $ - $(9,672) $(94,429) $(9,672) 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 $ - $ - $ 3,027 $ - Reversal of interest expense on certain income tax liabilities $ - $ 377 $ 268 $ 716 Reversal of certain income tax liabilities $ - $ 1,133 $ 1,358 $ 1,991 Reversal of pre- acquisition payroll related accruals $ - $ - $ - $ 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 $6,706 $ 4,587 $(53,094) $24,404 Adjustment for Reconciling Items above, net of tax - 4,507 74,019 6,953 ---- ----- ------ ----- Non-GAAP income from continuing operations $6,706 $ 9,094 $ 20,925 $31,357 ====== ====== ======= ======= Earnings (loss) per common share from continuing operations: Basic earnings (loss) per common share from continuing operations - GAAP $ 0.17 $ 0.12 $ (1.35) $ 0.60 Adjustment for Reconciling Items above, net of tax - 0.11 1.89 0.17 ------ ------- -------- ------- Basic earnings per common share from continuing operations - Non-GAAP $ 0.17 $ 0.23 $ 0.53 $ 0.78 ====== ======= ======== ======= Diluted earnings (loss) per common share from continuing operations - GAAP $ 0.17 $ 0.12 $ (1.35) $ 0.60 Adjustment for Reconciling Items above, net of tax - 0.11 1.89 0.17 ------ ------- -------- ------- Diluted earnings per common share from continuing operations- Non-GAAP $ 0.17 $ 0.23 $ 0.53 $ 0.77 ====== ======= ======== ======= Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling Items above: Basic 38,987,751 39,718,070 39,254,813 40,417,945 ========== ========== ========== ========== Diluted 39,133,159 39,801,674 39,254,813 40,601,739 ========== ========== ========== ========== Shares used in computing Non-GAAP earnings per common share from continuing operations: Basic 38,987,751 39,718,070 39,254,813 40,417,945 ========== ========== ========== ========== Diluted 39,133,159 39,801,674 39,284,817 40,628,916 ========== ========== ========== ========== 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, both of Dycom Industries, Inc.,
+1-561-627-7171
Web Site: http://www.dycomind.com/
