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.
