EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE | Contact: | Steven E. Nielsen, President and CEO | ||
Richard L. Dunn, Senior Vice President | ||||
and CFO | ||||
(561) 627-7171 |
Palm Beach Gardens, Florida | August 29, 2005 |
DYCOM ANNOUNCES FISCAL 2005 FOURTH QUARTER EARNINGS AND PROVIDES
GUIDANCE FOR THE NEXT FISCAL QUARTER
GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, August 29, 2005—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the fourth quarter ended July 30, 2005. The Company reported a net loss for the quarter ended July 30, 2005 of $12.4 million, or a loss of $0.25 per common share diluted, versus net income for the quarter ended July 31, 2004 of $17.1 million, or $0.35 per common share diluted. Included in net loss for the quarter ended July 30, 2005 was a goodwill impairment charge of approximately $29.0 million (or $0.59 per diluted share) related to the Company’s White Mountain Cable Construction subsidiary. Excluding this item, net income for the quarter ended July 30, 2005 would have been $16.6 million, or $0.34 per common share diluted. Total contract revenues for the quarter ended July 30, 2005 were $251.3 million compared to total contract revenues of $260.8 million for the quarter ended July 31, 2004, a decrease of 3.6%.
For the year ended July 30, 2005, the Company reported net income of $24.3 million, or $0.49 per common share diluted, versus net income for the year ended July 31, 2004 of $58.6 million, or $1.20 per common share diluted. Total contract revenues for the year ended July 30, 2005 were $986.6 million compared to total contract revenues of $872.7 million for the year ended July 31, 2004, an increase of 13.1%. Included in the net income for the year ended July 30, 2005 was a goodwill impairment charge of approximately $29.0 million (or $0.59 per diluted share) related to the Company’s White Mountain Cable Construction subsidiary. Excluding this item, net income for the year ended July 30, 2005 would have been $53.3 million, or $1.08 per common share diluted. Included in the net income for the year ended July 31, 2004 was a nonrecurring gain of $11.4 million ($6.8 million net of tax) related to the sale of long-term accounts receivable, and a charge of $2.3 million ($1.4 million net of tax) related to a reserve recorded in connection with a federal employment tax audit. Excluding these items, net income for the year ended July 31, 2004 would have been $53.2 million, or $1.09 per common share diluted.
In comparing the financial results for the three-month and one-year periods ended July 30, 2005 with prior periods, it should be noted that Dycom utilizes a 52/53 week fiscal year ending on the last Saturday in July. As a result, the fourth quarter of fiscal 2005 contained 13 weeks and the year ended July 30, 2005 contained 52 weeks compared to 14 weeks for the fourth quarter of fiscal 2004 and 53 weeks for the year ended July 31, 2004.
Dycom also announced its outlook for the first quarter of fiscal 2006. The Company currently expects revenue for the first quarter of fiscal 2006 to range from $225 million to $245 million and diluted earnings per share to range from $0.17 to $0.23.
A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Tuesday, August 30, 2005; call 877-531-2988 (United States) or 612-332-0720 (International) and request “Dycom Earnings” conference call.A live webcast of the conference call will be available at http://www.dycomind.com. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast will also be available at http://www.dycomind.com until Thursday, September 29, 2005.
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 locating services to various utilities, including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2005 results are preliminary and quarterly information is unaudited. This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. Such statements include, but are not limited to, the Company’s expectations for revenues and earnings per share. 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, whether recent acquisitions can be efficiently integrated into our existing operations, 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. We do not undertake to update forward looking statements.
—Tables Follow—
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 30, 2005 and July 31, 2004
Unaudited
CONSOLIDATED BALANCE SHEETS
July 30, 2005 and July 31, 2004
Unaudited
July 30, | July 31, | |||||||
($ in 000’s) | 2005 | 2004 | ||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 83,062 | $ | 31,383 | ||||
Short-term investments | — | 20,010 | ||||||
Accounts receivable, net | 161,321 | 131,927 | ||||||
Costs and estimated earnings in excess of billings | 65,559 | 58,175 | ||||||
Deferred tax assets, net | 12,535 | 11,922 | ||||||
Income taxes receivable | — | 6,988 | ||||||
Inventories | 8,116 | 5,353 | ||||||
Other current assets | 11,286 | 10,276 | ||||||
Total current assets | 341,879 | 276,034 | ||||||
Property and equipment, net | 117,145 | 100,353 | ||||||
Intangible assets, net | 227,443 | 259,319 | ||||||
Deferred tax assets, net non-current | — | 5,561 | ||||||
Other | 10,242 | 10,568 | ||||||
Total | $ | 696,709 | $ | 651,835 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 37,185 | $ | 34,348 | ||||
Notes and capital leases payable | 2,749 | 4,163 | ||||||
Billings in excess of costs and estimated earnings | 464 | 142 | ||||||
Accrued self-insured claims | 28,166 | 22,298 | ||||||
Income taxes payable | 6,598 | — | ||||||
Other accrued liabilities | 43,550 | 41,527 | ||||||
Total current liabilities | 118,712 | 102,478 | ||||||
Notes and capital leases payable | 4,179 | 7,094 | ||||||
Accrued self-insured claims | 22,652 | 22,473 | ||||||
Deferred tax liability | 1,299 | — | ||||||
Other liabilities | 57 | 829 | ||||||
Stockholders’ Equity | 549,810 | 518,961 | ||||||
Total | $ | 696,709 | $ | 651,835 | ||||
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
13 Weeks | 14 Weeks | 52 Weeks | 53 Weeks | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
July 30, | July 31, | July 30, | July 31, | |||||||||||||
(In 000’s, except per share amounts) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Contract revenues | $ | 251,263 | $ | 260,764 | $ | 986,627 | $ | 872,716 | ||||||||
Cost of earned revenues | 199,016 | 200,672 | 785,616 | 673,562 | ||||||||||||
General and administrative expenses | 21,886 | 21,224 | 79,727 | 75,356 | ||||||||||||
Depreciation and amortization | 11,003 | 11,614 | 46,593 | 42,066 | ||||||||||||
Goodwill impairment charge | 28,951 | — | 28,951 | — | ||||||||||||
Total costs and expenses | 260,856 | 233,510 | 940,887 | 790,984 | ||||||||||||
Interest income/(expense), net | 462 | 37 | 924 | (188 | ) | |||||||||||
Other income, net | 6,978 | 929 | 11,970 | 4,277 | ||||||||||||
Gain on sale of long term accounts receivable | — | — | — | 11,359 | ||||||||||||
Income (loss) before income taxes | (2,153 | ) | 28,220 | 58,634 | 97,180 | |||||||||||
Provision for income taxes | 10,240 | 11,134 | 34,320 | 38,547 | ||||||||||||
Net income (loss) | $ | (12,393 | ) | $ | 17,086 | $ | 24,314 | $ | 58,633 | |||||||
Earnings (loss) per common share: | ||||||||||||||||
Basic earnings (loss) per share | $ | (0.25 | ) | $ | 0.35 | $ | 0.50 | $ | 1.21 | |||||||
Diluted earnings (loss) per share | $ | (0.25 | ) | $ | 0.35 | $ | 0.49 | $ | 1.20 | |||||||
Shares used in computing earnings (loss) per common share: | ||||||||||||||||
Basic | 48,849 | 48,554 | 48,747 | 48,349 | ||||||||||||
Diluted | 48,849 | 48,998 | 49,185 | 48,820 | ||||||||||||
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON GAAP INFORMATION
Unaudited
RECONCILIATION OF GAAP TO NON GAAP INFORMATION
Unaudited
13 Weeks Ended | 52 Weeks Ended | |||||||
($ in 000’s except per share amounts) | July 30, 2005 | July 30, 2005 | ||||||
Items | ||||||||
Goodwill impairment charge | $ | (28,951 | ) | $ | (28,951 | ) | ||
GAAP net income (loss) | $ | (12,393 | ) | $ | 24,314 | |||
Adjusted for item above | 28,951 | 28,951 | ||||||
Non GAAP net income | $ | 16,558 | $ | 53,265 | ||||
Earnings (loss) per common share: | ||||||||
Basic earnings (loss) per share — GAAP | $ | (0.25 | ) | $ | 0.50 | |||
Adjustment for items above | 0.59 | 0.59 | ||||||
Basic earnings per share — Non GAAP | $ | 0.34 | $ | 1.09 | ||||
Diluted earnings (loss) per share — GAAP | $ | (0.25 | ) | $ | 0.49 | |||
Adjustment for items above | 0.59 | 0.59 | ||||||
Diluted earnings per share — Non GAAP | $ | 0.34 | $ | 1.08 | ||||
Shares used in computing earnings (loss) per common share: | ||||||||
Basic | 48,849 | 48,747 | ||||||
Diluted | 49,133 | 49,185 | ||||||
14 Weeks Ended | 53 Weeks Ended | |||||||
July 31, 2004 | July 31, 2004 | |||||||
Items | ||||||||
Gain on sale of long term accounts receivable, net of taxes of $4,544 | $ | — | $ | 6,815 | ||||
Reserve recorded in connection with a federal employment tax audit, net of taxes of $914 | — | (1,386 | ) | |||||
$ | — | $ | 5,429 | |||||
GAAP net income | $ | 17,086 | $ | 58,633 | ||||
Adjusted for items above | — | (5,429 | ) | |||||
Non GAAP net income | $ | 17,086 | $ | 53,204 | ||||
Earnings per common share: | ||||||||
Basic earnings per share — GAAP | $ | 0.35 | $ | 1.21 | ||||
Adjustment for items above | — | (0.11 | ) | |||||
Basic earnings per share — Non GAAP | $ | 0.35 | $ | 1.10 | ||||
Diluted earnings per share — GAAP | $ | 0.35 | $ | 1.20 | ||||
Adjustment for items above | — | (0.11 | ) | |||||
Diluted earnings per share — Non GAAP | $ | 0.35 | $ | 1.09 | ||||
Shares used in computing earnings per common share: | ||||||||
Basic | 48,554 | 48,349 | ||||||
Diluted | 48,998 | 48,820 | ||||||