Dycom Industries (DY) 8-K Results of Operations and Financial Condition

Exhibit 99.1

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  August 24, 2010

DYCOM ANNOUNCES FISCAL 2010 FOURTH QUARTER RESULTS

Palm Beach Gardens, Florida, August 24, 2010--Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter ended July 31, 2010.  Dycom utilizes a 52/53 week fiscal year ending on the last Saturday in July; as a result, the fourth quarter of fiscal 2010 contained 14 weeks compared to 13 weeks in the fourth quarter of fiscal 2009.

The Company reported:

·   contract revenues of $281.5 million for the quarter ended July 31, 2010, compared to $269.7 million for the quarter ended July 25, 2009, which after adjusting for the incremental week in the fourth quarter of fiscal 2010 were $261.4 million, a decrease of 3.1%; and

·   income from continuing operations of $4.6 million, or $0.12 per common share diluted, for the quarter ended July 31, 2010, compared to $6.7 million, or $0.17 per common share diluted, for the quarter ended July 25, 2009.

The Company also reported:

·   contract revenues of $988.6 million for the fiscal year ended July 31, 2010, compared to $1,106.9 million for the fiscal year ended July 25, 2009, which after adjusting for the incremental week in the fourth quarter of fiscal 2010 were $968.5 million, a decrease of 12.5%;

·   income from continuing operations on a GAAP basis of $5.8 million, or $0.15 per common share diluted, for the fiscal year ended July 31, 2010, compared to a loss of $(53.1) million, or $(1.35) per common share diluted, for the fiscal year ended July 25, 2009; and

·   income from continuing operations on a Non-GAAP basis of $6.8 million, or $0.17 per common share diluted, for the fiscal year ended July 31, 2010, compared to Non-GAAP income from continuing operations of $20.9 million, or $0.53 per common share diluted, for the fiscal year ended July 25, 2009.

Non-GAAP income from continuing operations for the fiscal year ended July 31, 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 fiscal year ended July 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 tables which present a reconciliation of Non-GAAP income from continuing operations to GAAP income from continuing operations and a reconciliation of contract revenues for the fourth quarter and fiscal 2010 adjusted for the incremental week in the fourth quarter of fiscal 2010.

A Tele-Conference call to review the Company’s results will be hosted at 9 a.m. (ET), Wednesday, August 25, 2010; Call 800-230-1059 (United States) or 612-234-9959 (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 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, September 24, 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 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, 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---

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NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 31, 2010 and July 25, 2009
Unaudited
	July 31,		July 25,
	2010		2009
	($ in 000's)
ASSETS
Current Assets:
Cash and equivalents	$	103,320	$	104,707
Accounts receivable, net		110,117		116,968
Costs and estimated earnings in excess of billings		66,559		67,111
Deferred tax assets, net		14,944		15,779
Income taxes receivable		3,626		7,016
Inventories		16,058		8,303
Other current assets		8,137		7,323
Total current assets		322,761		327,207
Property and equipment, net		136,028		142,132
Goodwill		157,851		157,851
Intangible assets, net		49,625		56,056
Other		13,291		10,211
Total	$	679,556	$	693,457
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	25,881	$	28,977
Current portion of debt		47		926
Billings in excess of costs and estimated earnings		376		151
Accrued insurance claims		28,086		27,386
Other accrued liabilities		42,813		52,590
Total current liabilities		97,203		110,030
Long-term debt		135,350		135,377
Accrued insurance claims		24,844		29,759
Deferred tax liabilities, net non-current		24,159		22,910
Other liabilities		3,445		4,758
Stockholders' Equity		394,555		390,623
Total	$	679,556	$	693,457

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NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
	Three Months			Three Months			Twelve Months			Twelve Months
	Ended			Ended			Ended			Ended
	July 31,			July 25,			July 31,			July 25,
	2010			2009			2010			2009
				(In 000's, except per share amounts)
Contract revenues	$	281,541		$	269,691		$	988,623		$	1,106,900
Cost of earned revenues, excluding depreciation and amortization		227,823			213,646			810,064			894,885
General and administrative expenses (1)		26,442			25,381			98,140			98,732
Depreciation and amortization		17,049			15,843			63,607			65,435
Goodwill impairment charge		-			-			-			94,429
Total		271,314			254,870			971,811			1,153,481
Interest income		12			26			97			261
Interest expense		(3,802	)		(3,429	)		(14,272	)		(14,743	)
Other income, net		1,634			765			8,093			6,564
Income (loss) from continuing operations before income taxes		8,071			12,183			10,730			(54,499	)
Provision (benefit) for income taxes		3,428			5,477			4,881			(1,405	)
Income (loss) from continuing operations		4,643			6,706			5,849			(53,094	)
Income (loss) from discontinued operations, net of tax		-			(78	)		-			(86	)
Net income (loss)	$	4,643		$	6,628		$	5,849		$	(53,180	)
Income (loss) per common share - Basic:
Income (loss) from continuing operations	$	0.12		$	0.17		$	0.15		$	(1.35	)
Income (loss) from discontinued operations		-			-			-			-
Net income (loss)	$	0.12		$	0.17		$	0.15		$	(1.35	)
Income (loss) per common share - Diluted:
Income (loss) from continuing operations	$	0.12		$	0.17		$	0.15		$	(1.35	)
Income (loss) from discontinued operations		-			-			-			-
Net income (loss)	$	0.12		$	0.17		$	0.15		$	(1.35	)
Shares used in computing income (loss) per common share:
Basic		38,655,934			38,987,751			38,931,029			39,254,813
Diluted		38,716,447			39,133,159			38,996,866			39,254,813
(1) Includes stock-based compensation expense of $0.9 million and $3.4 million for the three and twelve months ended July 31, 2010, respectively, and $1.1 million and $3.9 million for the three and twelve months ended July 25, 2009, respectively.

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NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
	Twelve Months			Twelve Months
	Ended			Ended
	July 31,			July 25,
	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		-			3,027
Write-off of deferred financing costs		-			(551	)
Reversal of interest expense on certain income tax liabilities		-			268
Total Pre-Tax Reconciling Items	$	(1,550	)	$	(91,685	)
Tax-effect of Pre-Tax Reconciling Items		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
Total Reconciling Items, net of tax	$	(927	)	$	(74,019	)
GAAP income (loss) from continuing operations	$	5,849		$	(53,094	)
Adjustment for Reconciling Items above, net of tax		927			74,019
Non-GAAP income from continuing operations	$	6,776		$	20,925
Earnings (loss) per common share from continuing operations:
Basic earnings (loss) per share from continuing operations - GAAP	$	0.15		$	(1.35	)
Adjustment for Reconciling Items above, net of tax		0.02			1.89
Basic earnings per common share from continuing operations - Non-GAAP	$	0.17		$	0.53
Diluted earnings (loss) per share from continuing operations  - GAAP	$	0.15		$	(1.35	)
Adjustment for Reconciling Items above, net of tax		0.02			1.89
Diluted earnings per common share from continuing operations- Non-GAAP	$	0.17		$	0.53
Earnings per share amounts may not add due to rounding.
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling Items above:
Basic		38,931,029			39,254,813
Diluted		38,996,866			39,254,813
Shares used in computing Non-GAAP earnings per common share from continuing operations:
Basic		38,931,029			39,254,813
Diluted		38,996,866			39,284,817

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NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
The reconciliation of the percentage change in contract revenues adjusted for the incremental week in the fourth quarter and fiscal 2010 to the change not taking into effect such incremental week is presented below:
	Contract Revenues - GAAP		Incremental week of revenue as a result of the Company's 52/53 week year(1)			Contract Revenues - Non-GAAP		% Growth (Decline) - GAAP			% Decline - Non-GAAP
Three Months Ended July 31, 2010	$	281,541	$	(20,110	)	$	261,431		4.4	%		(3.1	)%
Three Months Ended July 25, 2009	$	269,691	$	-		$	269,691
Twelve Months Ended July 31, 2010	$	988,623	$	(20,110	)	$	968,513		(10.7	)%		(12.5	)%
Twelve Months Ended July 25, 2009	$	1,106,900	$	-		$	1,106,900
(1) Calculated as fourth quarter of fiscal 2010 contract revenues divided by 14 weeks.

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