Exhibit 99.1
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N E W S R E L E A S E
FOR IMMEDIATE RELEASE | Contact: | Steven E. Nielsen, President and CEO |
H. Andrew DeFerrari, Senior Vice President and CFO |
(561) 627-7171 |
Palm Beach Gardens, Florida May 25, 2010
DYCOM ANNOUNCES FISCAL 2010 THIRD QUARTER RESULTS
Palm Beach Gardens, Florida, May 25, 2010--Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 24, 2010. The Company reported:
· | contract revenues of $231.6 million for the quarter ended April 24, 2010, compared to $257.7 million for the quarter ended April 25, 2009, a decrease of 10.1%; |
· | income from continuing operations on a GAAP basis of $1.6 million, or $0.04 per common share diluted, for the quarter ended April 24, 2010, compared to $7.6 million, or $0.19 per common share diluted, for the quarter ended April 25, 2009; and |
· | income from continuing operations on a Non-GAAP basis of $0.6 million, or $0.02 per common share diluted, for the quarter ended April 24, 2010, compared to $5.0 million, or $0.13 per common share diluted, for the quarter ended April 25, 2009. |
Non-GAAP income from continuing operations for the quarter ended April 24, 2010 excludes a $1.0 million reduction to income tax expense related to the reversal of certain income tax liabilities no longer required. For the quarter ended April 25, 2009, Non-GAAP income from continuing operations excludes a pre-tax gain of $1.7 million related to the buyback of $10.0 million aggregate principal amount of the Company’s senior subordinated notes, 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. See the accompanying table which presents a reconciliation of Non-GAAP income from continuing operations to GAAP income from continuing operations.
The Company also reported:
· | contract revenues of $707.1 million for the nine months ended April 24, 2010, compared to $837.2 million for the nine months ended April 25, 2009, a decrease of 15.5%; |
· | income from continuing operations on a GAAP basis of $1.2 million, or $0.03 per common share diluted, for the nine months ended April 24, 2010, compared to a loss of $59.8 million, or $1.52 per common share diluted, for the nine months ended April 25, 2009; and |
· | income from continuing operations on a Non-GAAP basis of $2.1 million, or $0.05 per common share diluted, for the nine months ended April 24, 2010, compared to Non-GAAP income from continuing operations of $14.2 million, or $0.36 per common share diluted, for the nine months ended April 25, 2009. |
Non-GAAP income from continuing operations for the nine months ended April 24, 2010 excludes a $1.6 million pre-tax charge in cost of earned revenues for the settlement of a wage and hour class action claim, a $1.1 million non-cash charge to income tax expense for a valuation allowance against a deferred tax asset recorded during the first quarter of fiscal 2010, and a $1.0 million reduction to income tax expense related to the reversal of certain income tax liabilities no longer required. For the nine months ended April 25, 2009, Non-GAAP income from continuing operations excludes a pre-tax goodwill impairment charge of $94.4 million, a pre-tax gain of approximately $3.0 million related to the buyback of $14.65 million aggregate principal amount of the Company’s senior subordinated notes, the write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company’s credit facility during the prior year, 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 related liabilities no longer required. See the accompanying table which presents a reconciliation of Non-GAAP income from continuing operations to GAAP income from continuing operations.
A Tele-Conference call to review the Company’s results will be hosted at 9 a.m. (ET), Wednesday, May 26, 2010; Call 800-230-1074 (United States) or 612-288-0329 (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 “Events.” 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 25, 2010.
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 and gas utilities and others.
Fiscal 2010 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 Follows ---
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
April 24, 2010 and July 25, 2009 | ||||||||
Unaudited | ||||||||
April 24, | July 25, | |||||||
2010 | 2009 | |||||||
($ in 000's) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 116,155 | $ | 104,707 | ||||
Accounts receivable, net | 96,773 | 116,968 | ||||||
Costs and estimated earnings in excess of billings | 59,867 | 67,111 | ||||||
Deferred tax assets, net | 14,033 | 15,779 | ||||||
Income taxes receivable | 8,213 | 7,016 | ||||||
Inventories | 13,091 | 8,303 | ||||||
Other current assets | 11,212 | 7,323 | ||||||
Total current assets | 319,344 | 327,207 | ||||||
Property and equipment, net | 137,740 | 142,132 | ||||||
Goodwill | 157,851 | 157,851 | ||||||
Intangible assets, net | 51,309 | 56,056 | ||||||
Other | 10,339 | 10,211 | ||||||
Total | $ | 676,583 | $ | 693,457 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 28,003 | $ | 28,977 | ||||
Current portion of debt | 150 | 926 | ||||||
Billings in excess of costs and estimated earnings | 582 | 151 | ||||||
Accrued insurance claims | 26,919 | 27,386 | ||||||
Other accrued liabilities | 42,095 | 52,590 | ||||||
Total current liabilities | 97,749 | 110,030 | ||||||
Long-term debt | 135,350 | 135,377 | ||||||
Accrued insurance claims | 26,957 | 29,759 | ||||||
Deferred tax liabilities, net non-current | 23,786 | 22,910 | ||||||
Other liabilities | 3,650 | 4,758 | ||||||
Stockholders' Equity | 389,091 | 390,623 | ||||||
Total | $ | 676,583 | $ | 693,457 | ||||
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
Unaudited | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
April 24, | April 25, | April 24, | April 25, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In 000's, except per share amounts) | ||||||||||||||||
Contract revenues | $ | 231,636 | $ | 257,719 | $ | 707,082 | $ | 837,209 | ||||||||
Cost of earned revenues, excluding depreciation and amortization | 191,333 | 206,733 | 582,241 | 681,239 | ||||||||||||
General and administrative expenses (1) | 24,297 | 24,276 | 71,698 | 73,350 | ||||||||||||
Depreciation and amortization | 15,852 | 16,163 | 46,558 | 49,592 | ||||||||||||
Goodwill impairment charge | - | - | - | 94,429 | ||||||||||||
Total | 231,482 | 247,172 | 700,497 | 898,610 | ||||||||||||
Interest income | 27 | 60 | 85 | 234 | ||||||||||||
Interest expense | (3,386 | ) | (3,162 | ) | (10,470 | ) | (11,313 | ) | ||||||||
Other income, net | 4,451 | 3,566 | 6,459 | 5,799 | ||||||||||||
Income (loss) from continuing operations before income taxes | 1,246 | 11,011 | 2,659 | (66,681 | ) | |||||||||||
Provision (benefit) for income taxes | (402 | ) | 3,442 | 1,453 | (6,882 | ) | ||||||||||
Income (loss) from continuing operations | 1,648 | 7,569 | 1,206 | (59,799 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | - | 28 | - | (9 | ) | |||||||||||
Net income (loss) | $ | 1,648 | $ | 7,597 | $ | 1,206 | $ | (59,808 | ) | |||||||
Income (loss) per common share - Basic: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.04 | $ | 0.19 | $ | 0.03 | $ | (1.52 | ) | |||||||
Income (loss) from discontinued operations | - | - | - | - | ||||||||||||
Net income (loss) | $ | 0.04 | $ | 0.19 | $ | 0.03 | $ | (1.52 | ) | |||||||
Income (loss) per common share - Diluted: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.04 | $ | 0.19 | $ | 0.03 | $ | (1.52 | ) | |||||||
Income (loss) from discontinued operations | - | - | - | - | ||||||||||||
Net income (loss) | $ | 0.04 | $ | 0.19 | $ | 0.03 | $ | (1.52 | ) | |||||||
Shares used in computing income (loss) per common share: | ||||||||||||||||
Basic | 39,021,043 | 39,330,308 | 39,028,637 | 39,343,834 | ||||||||||||
Diluted | 39,054,443 | 39,346,102 | 39,102,612 | 39,343,834 | ||||||||||||
(1) Includes stock-based compensation expense of $0.8 million and $2.5 million for the three and nine months ended April 24, 2010, respectively, and $0.9 million and $2.8 million for the three and nine months ended April 25, 2009, respectively. |
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 24, | April 25, | April 24, | April 25, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In 000's, except per share amounts) | ||||||||||||||||
Pre-Tax Reconciling Items increasing (decreasing) income (loss) from continuing operations: | ||||||||||||||||
Charge for wage and hour class action settlement | $ | - | $ | - | $ | (1,550 | ) | $ | - | |||||||
Goodwill impairment charge | - | - | - | (94,429 | ) | |||||||||||
Gain on debt extinguishment, net | - | 1,727 | - | 3,027 | ||||||||||||
Write-off of deferred financing costs | - | - | - | (551 | ) | |||||||||||
Reversal of interest expense on certain income tax liabilities | - | 268 | - | 268 | ||||||||||||
Total Pre-Tax Reconciling Items | $ | - | $ | 1,995 | $ | (1,550 | ) | $ | (91,685 | ) | ||||||
Tax-effect of Pre-Tax Reconciling Items | - | (793 | ) | 714 | 16,308 | |||||||||||
Other Reconciling Items increasing (decreasing) income (loss) from continuing operations: | ||||||||||||||||
Valuation allowance on deferred tax asset | - | - | (1,090 | ) | - | |||||||||||
Reversal of certain income tax liabilities | 999 | 1,358 | 999 | 1,358 | ||||||||||||
Total Reconciling Items, net of tax | $ | 999 | $ | 2,560 | $ | (927 | ) | $ | (74,019 | ) | ||||||
GAAP income (loss) from continuing operations | $ | 1,648 | $ | 7,569 | $ | 1,206 | $ | (59,799 | ) | |||||||
Adjustment for Reconciling Items above, net of tax | (999 | ) | (2,560 | ) | 927 | 74,019 | ||||||||||
Non-GAAP income from continuing operations | $ | 649 | $ | 5,009 | $ | 2,133 | $ | 14,220 | ||||||||
Earnings (loss) per common share from continuing operations: | ||||||||||||||||
Basic earnings (loss) per share from continuing operations - GAAP | $ | 0.04 | $ | 0.19 | $ | 0.03 | $ | (1.52 | ) | |||||||
Adjustment for Reconciling Items above, net of tax | (0.03 | ) | (0.07 | ) | 0.02 | 1.88 | ||||||||||
Basic earnings per common share from continuing operations - Non-GAAP | $ | 0.02 | $ | 0.13 | $ | 0.05 | $ | 0.36 | ||||||||
Diluted earnings (loss) per share from continuing operations - GAAP | $ | 0.04 | $ | 0.19 | $ | 0.03 | $ | (1.52 | ) | |||||||
Adjustment for Reconciling Items above, net of tax | (0.03 | ) | (0.07 | ) | 0.02 | 1.88 | ||||||||||
Diluted earnings per common share from continuing operations- Non-GAAP | $ | 0.02 | $ | 0.13 | $ | 0.05 | $ | 0.36 | ||||||||
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling Items above: | ||||||||||||||||
Basic | 39,021,043 | 39,330,308 | 39,028,637 | 39,343,834 | ||||||||||||
Diluted | 39,054,443 | 39,346,102 | 39,102,612 | 39,343,834 | ||||||||||||
Shares used in computing Non-GAAP earnings per common share from continuing operations: | ||||||||||||||||
Basic | 39,021,043 | 39,330,308 | 39,028,637 | 39,343,834 | ||||||||||||
Diluted | 39,054,443 | 39,346,102 | 39,102,612 | 39,393,923 | ||||||||||||
Earnings per share amounts may not add due to rounding. | ||||||||||||||||