Dycom Industries, Inc. Announces Fiscal 2013 First Quarter Results

PALM BEACH GARDENS, Fla., Nov. 19, 2012 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the first quarter ended October 27, 2012.

The Company reported:

• Contract revenues of $323.3 million for the quarter ended October 27, 2012, compared to $319.6 million for the quarter ended October 29, 2011, an increase of 1.2%. Included in contract revenues for the quarter ended October 29, 2011 was approximately $3.7 million for storm restoration services; there were no revenues from storm restoration services for the quarter ended October 27, 2012. Excluding storm restoration services, revenues increased 2.4%, or $7.4million;
• Adjusted EBITDA (Non-GAAP) of $40.4 million for each of the quarters ended October 27, 2012, and October 29, 2011; and
• Net income of $11.9 million, or $0.35 per common share diluted, for the quarter ended October 27, 2012, compared to $13.0 million, or $0.38 per common share diluted, for the quarter ended October 29, 2011. On a Non-GAAP basis, net income for the quarter ended October 27, 2012 was $12.3 million or $0.36 per common share diluted. Non-GAAP net income for the quarter ended October 27, 2012 excludes $0.7 million in pre-tax acquisition related costs.

The Company has defined Adjusted EBITDA (Non-GAAP) as earnings before interest, taxes, depreciation and amortization, gain on sale of fixed assets, acquisition related costs, and stock-based compensation expense. See the accompanying tables which present a reconciliation of GAAP to Non-GAAP financial information.

A conference call to review the Company's results, together with the previously announced acquisition of telecommunications infrastructure services subsidiaries from Quanta Services, Inc., will be hosted at 9a.m.(ET), Tuesday, November 20, 2012; call [phone] (United States) or [phone] (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 related materials, will be available at http://www.dycomind.com under the heading "Events." The conference call materials will be available at approximately 8 a.m. (ET) on November 20, 2012. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the conference call materials will be available at http://www.dycomind.com until Thursday, December 20, 2012.

Dycom is a leading provider of specialty contracting services. These services, which are provided throughout the United States and in Canada, 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 and gas utilities and others.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The Company believes that the presentation of certain Non-GAAP financial measures in this press release provides information that is useful to investors because it allows for a more direct comparison of the Company's performance for the period with the Company's performance in the comparable prior-year period. The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results.

Fiscal 2013 first quarter 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 and trends 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 future impact of any acquisitions or dispositions, including the consummation of such acquisitions and dispositions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, and the other risks detailed in our filings with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements.

---Tables Follow---

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
October 27, 2012 and July 28, 2012
Unaudited
		October 27,		July 28,
		2012		2012
ASSETS		(Dollars in thousands)
CURRENT ASSETS:
Cash and equivalents	$	54,726	$	52,581
Accounts receivable, net		153,794		141,788
Costs and estimated earnings in excess of billings		118,409		127,321
Inventories		25,142		26,274
Deferred tax assets, net		16,074		15,633
Income taxes receivable		741		4,884
Other current assets		12,822		8,466
Total current assets		381,708		376,947
PROPERTY AND EQUIPMENT, NET		154,701		158,247
GOODWILL		174,849		174,849
INTANGIBLE ASSETS, NET		48,182		49,773
OTHER		12,093		12,377
TOTAL NON-CURRENT ASSETS		389,825		395,246
TOTAL ASSETS	$	771,533	$	772,193
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	38,485	$	36,823
Current portion of debt		55		74
Billings in excess of costs and estimated earnings		1,447		1,522
Accrued insurance claims		24,244		25,218
Income taxes payable		4,567		-
Other accrued liabilities		47,642		50,926
Total current liabilities		116,440		114,563
LONG-TERM DEBT		187,500		187,500
ACCRUED INSURANCE CLAIMS		22,847		23,591
DEFERRED TAX LIABILITIES, NET NON-CURRENT		48,792		49,537
OTHER LIABILITIES		3,959		4,071
Total liabilities		379,538		379,262
Total Stockholders' Equity		391,995		392,931
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	771,533	$	772,193

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
		Three Months		Three Months
		Ended		Ended
		October 27,		October 29,
		2012		2011
		(Dollars in thousands, except per share amounts)
Contract revenues	$	323,286	$	319,575
Costs of earned revenues, excluding depreciation and amortization		257,066		255,187
General and administrative expenses (1)		28,824		25,358
Depreciation and amortization		15,311		15,958
Total		301,201		296,503
Interest expense, net		(4,197)		(4,173)
Other income, net		1,614		2,959
Income before income taxes		19,502		21,858
Provision for income taxes		7,641		8,892
Net income	$	11,861	$	12,966
Earnings per common share:
Basic earnings per common share	$	0.36	$	0.39
Diluted earnings per common share	$	0.35	$	0.38
Shares used in computing income per common share:
Basic		33,089,959		33,508,193
Diluted		33,721,070		34,216,451
(1) Includes stock-based compensation expense of $2.3 million and $1.3 million for the three months ended October 27, 2012 and October 29, 2011, respectively.

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
(continued)
The below table presents the reconciliation of contract revenues adjusted for storm restoration service revenues generated during the first quarter of fiscal 2012.
			Contract Revenues - GAAP		Revenues from storm restoration services		Contract Revenues - Non-GAAP		% Growth - GAAP		% Growth - Non-GAAP
			(Dollars in thousands)
	Three Months Ended October 27, 2012		$ 323,286		$ -		$ 323,286		1.2	%	2.4	%
	Three Months Ended October 29, 2011		$ 319,575		$ (3,729)		$ 315,846

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
(continued)
The below table presents a reconciliation of GAAP to Non-GAAP net income for the three months ended October 27, 2012 and October 29, 2011.
			Three Months		Three Months
			Ended		Ended
			October 27,		October 29,
			2012		2011
			(Dollars in thousands, except per share amounts)
Reconciling Item:
Acquisition related costs		$	710	$	-
GAAP net income		$	11,861	$	12,966
Adjustment for Reconciling Item above, net of tax			431		-
Non-GAAP net income		$	12,292	$	12,966
Earnings per common share:
Basic earnings per common share - GAAP		$	0.36	$	0.39
Adjustment for Reconciling Item above, net of tax			0.01		-
Basic earnings per common share - Non-GAAP		$	0.37	$	0.39
Diluted earnings per common share - GAAP		$	0.35	$	0.38
Adjustment for Reconciling Item above, net of tax			0.01		-
Diluted earnings per common share - Non-GAAP		$	0.36	$	0.38
Earnings per share amounts may not add due to rounding.
Shares used in computing GAAP and Non-GAAP earnings per common share and adjustment for Reconciling Item above:
Basic			33,089,959		33,508,193
Diluted			33,721,070		34,216,451

	DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
	RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
	Unaudited
(continued)
	The below table presents the Non-GAAP financial measure of Adjusted EBITDA for the three months ended October 27, 2012 and October 29, 2011 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.
				Three Months		Three Months
				Ended		Ended
				October 27,		October 29,
				2012		2011
				(Dollars in thousands)
	Reconciliation of Net income to Adjusted EBITDA (Non-GAAP):
		Net income	$	11,861	$	12,966
		Interest expense, net		4,197		4,173
		Provision for income taxes		7,641		8,892
		Depreciation and amortization expense		15,311		15,958
		Earnings Before Interest, Taxes,Depreciation & Amortization ("EBITDA")		39,010		41,989
		Gain on sale of fixed assets		(1,581)		(2,918)
		Stock-based compensation expense		2,266		1,326
		Acquisition related costs		710		-
		Adjusted EBITDA (Non-GAAP)	$	40,405	$	40,397

SOURCE Dycom Industries, Inc.