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

August 28, 2012

DYCOM INDUSTRIES, INC. ANNOUNCES FISCAL 2012 FOURTH QUARTER AND ANNUAL RESULTS

Palm Beach Gardens, Florida, August 28, 2012 – Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter and fiscal year ended July 28, 2012.

The Company reported:

·   Contract revenues of $318.0 million for the quarter ended July 28, 2012, compared to $303.7 million for the quarter ended July 30, 2011, an increase of 4.7%. Included in contract revenues for the quarter ended July 28, 2012 and July 30, 2011 was approximately $2.3 million and $14.1 million for storm restoration services, respectively.  Excluding storm restoration revenues in each period, revenues increased 9.0%, or $26.1 million;

·   Adjusted EBITDA (Non-GAAP) of $40.5 million for the quarter ended July 28, 2012, compared to $39.9 million for the quarter ended July 30, 2011; and

·   Net income of $13.3 million, or $0.39 per common share diluted, for the quarter ended July 28, 2012, compared to $13.0 million, or $0.38 per common share diluted, for the quarter ended July 30, 2011.

The Company also reported:

·   Contract revenues of $1,201.1 million for the fiscal year ended July 28, 2012, compared to $1,035.9 million for the fiscal year ended July 30, 2011, an increase of 16.0%. Included in contract revenues for the fiscal year ended July 28, 2012 and July 30, 2011 was approximately $6.0million and $14.1 million for storm restoration services, respectively, and revenues from business acquired in fiscal 2011 of $54.5 million and $33.8 million, respectively.  After adjusting for revenues from business acquired in fiscal 2011 and storm restoration revenues in each period, revenue increased 15.4%, or $152.6 million;

·   Adjusted EBITDA (Non-GAAP) of $135.5 million for the fiscal year ended July 28, 2012, compared to $110.2 million for the fiscal year ended July 30, 2011; and

·   Net income on a GAAP basis of $39.4 million, or $1.14 per common share diluted, for the fiscal year ended July 28, 2012, compared to $16.1 million, or $0.45 per common share diluted, for the fiscal year ended July 30, 2011. On a Non-GAAP basis, net income for the fiscal year ended July 30, 2011 was $21.9 million or $0.61 per common share diluted. Non-GAAP net income for the fiscal year ended July 30, 2011 excludes an $8.3 million pre-tax loss on debt extinguishment associated with the Company’s tender offer and redemption of its 8.125% senior subordinated notes due 2015, a $0.6 million pre-tax charge in cost of earned revenues related to a wage and hour class action litigation settlement, and $0.2 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, stock-based compensation expense, loss on debt extinguishment, acquisition related costs, and charges for a wage and hour class action settlement. See the accompanying tables which present a reconciliation of GAAP to Non-GAAP financial information.

A conference call to review the Company’s results will be hosted at 9 a.m. (ET), Wednesday, August 29, 2012; 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 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 August 29, 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 Friday, September 28, 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 2012 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 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, 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---

NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 28, 2012 and July 30, 2011
Unaudited
	July 28,		July 30,
	2012		2011
ASSETS	(Dollars in thousands)
CURRENT ASSETS:
Cash and equivalents	$	52,581	$	44,766
Accounts receivable, net		141,788		138,552
Costs and estimated earnings in excess of billings		127,321		90,855
Inventories		26,274		20,558
Deferred tax assets, net		15,633		15,957
Income taxes receivable		4,884		8,685
Other current assets		8,466		10,938
Total current assets		376,947		330,311
PROPERTY AND EQUIPMENT, NET		158,247		149,439
GOODWILL		174,849		174,849
INTANGIBLE ASSETS, NET		49,773		56,279
OTHER		12,377		13,877
TOTAL NON-CURRENT ASSETS		395,246		394,444
TOTAL ASSETS	$	772,193	$	724,755
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	36,823	$	39,399
Current portion of debt		74		232
Billings in excess of costs and estimated earnings		1,522		749
Accrued insurance claims		25,218		26,092
Other accrued liabilities		50,926		52,041
Total current liabilities		114,563		118,513
LONG-TERM DEBT		187,500		187,574
ACCRUED INSURANCE CLAIMS		23,591		23,344
DEFERRED TAX LIABILITIES, NET NON-CURRENT		49,537		39,923
OTHER LIABILITIES		4,071		3,550
Total liabilities		379,262		372,904
Total Stockholders' Equity		392,931		351,851
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	772,193	$	724,755

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 28,			July 30,			July 28,			July 30,
	2012			2011			2012			2011
	(Dollars in thousands, except per share amounts)
Contract revenues	$	318,034		$	303,719		$	1,201,119		$	1,035,868
Costs of earned revenues, excluding depreciation and amortization		252,137			239,132			968,949			837,119
General and administrative expenses (1)		27,434			26,284			104,024			94,622
Depreciation and amortization		15,647			15,639			62,693			62,533
Total		295,218			281,055			1,135,666			994,274
Interest expense, net		(4,189	)		(4,098	)		(16,717	)		(15,911	)
Loss on debt extinguishment		-			-			-			(8,295	)
Other income, net		2,882			3,633			15,825			11,096
Income before income taxes		21,509			22,199			64,561			28,484
Provision for income taxes		8,227			9,234			25,183			12,377
Net income	$	13,282		$	12,965		$	39,378		$	16,107
Earnings per common share:
Basic earnings per common share	$	0.40		$	0.38		$	1.17		$	0.46
Diluted earnings per common share	$	0.39		$	0.38		$	1.14		$	0.45
Shares used in computing income per common share:
Basic		33,600,852			33,822,998			33,653,055			35,306,900
Diluted		34,384,915			34,503,794			34,481,895			35,754,168
(1) Includes stock-based compensation expense of $2.1 million and $7.0 million for the three and twelve months ended July 28, 2012, respectively, and $1.3 million and $4.4 million for the three and twelve months ended July 30, 2011, respectively.

NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
The below table presents a reconciliation of GAAP to Non-GAAP net income for the twelve months ended July 28, 2012 and July 30, 2011.
	Twelve Months		Twelve Months
	Ended		Ended
	July 28,		July 30,
	2012		2011
	(Dollars in thousands, except per share amounts)
Pre-Tax Reconciling Items decreasing net income
Loss on debt extinguishment	$	-	$	(8,295	)
Charge for a wage and hour class action litigation settlement		-		(600	)
Acquisition related costs		-		(223	)
Total Reconciling Items	$	-	$	(9,118	)
GAAP net income	$	39,378	$	16,107
Adjustment for Reconciling Items above, net of tax		-		5,776
Non-GAAP net income	$	39,378	$	21,883
Earnings per common share:
Basic earnings per common share  - GAAP	$	1.17	$	0.46
Adjustment for Reconciling Items above, net of tax		-		0.16
Basic earnings per common share - Non-GAAP	$	1.17	$	0.62
Diluted earnings per common share - GAAP	$	1.14	$	0.45
Adjustment for Reconciling Items above, net of tax		-		0.16
Diluted earnings per common share - Non-GAAP	$	1.14	$	0.61
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 Items above:
Basic		33,653,055		35,306,900
Diluted		34,481,895		35,754,168

NYSE: "DY"
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 and twelve months ended July 28, 2012 and July 30, 2011 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.
	Three Months			Three Months			Twelve Months			Twelve Months
	Ended			Ended			Ended			Ended
	July 28,			July 30,			July 28,			July 30,
	2012			2011			2012			2011
	(Dollars in thousands)
Reconciliation of Net income to Adjusted EBITDA (Non-GAAP):
Net income	$	13,282		$	12,965		$	39,378		$	16,107
Interest expense, net		4,189			4,098			16,717			15,911
Provision for income taxes		8,227			9,234			25,183			12,377
Depreciation and amortization expense		15,647			15,639			62,693			62,533
Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA")		41,345			41,936			143,971			106,928
Gain on sale of fixed assets		(2,853	)		(3,406	)		(15,430	)		(10,216	)
Stock-based compensation expense		2,051			1,324			6,952			4,409
Loss on debt extinguishment		-			-			-			8,295
Charge for a wage and hour class action litigation settlement		-			-			-			600
Acquisition related costs		-			-			-			223
Adjusted EBITDA (Non-GAAP)	$	40,543		$	39,854		$	135,493		$	110,239

NYSE: "DY"
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 revenues from businesses acquired in the second quarter of fiscal 2011 and storm restoration service revenues generated during the fourth quarter and annual periods for fiscal 2012 and 2011.
	Contract Revenues - GAAP		Revenues from businesses acquired in the second quarter of fiscal 2011 (a)			Revenues from storm restoration services			Contract Revenues - Non-GAAP		% Growth - GAAP			% Growth - Non-GAAP
	(Dollars in thousands)
Three Months Ended July 28, 2012	$	318,034		--		$	(2,256	)	$	315,778		4.7	%		9.0	%
				--
Three Months Ended July 30, 2011	$	303,719		--		$	(14,054	)	$	289,665
Twelve Months Ended July 28, 2012	$	1,201,119	$	(54,529	)	$	(5,985	)	$	1,140,605		16.0	%		15.4	%
Twelve Months Ended July 30, 2011	$	1,035,868	$	(33,764	)	$	(14,054	)	$	988,050
(a) There is no adjustment for revenues from businesses acquired during the second quarter of fiscal 2011 in the three month periods ended July 28, 2012 or July 30, 2011 as the revenues from those businesses were included in both periods.