EXHIBIT 99.1
![Dycom Industries, Inc.](https://capedge.com/proxy/8-K/0000950144-05-012199/g98545g9854501.gif)
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 | November 21, 2005 |
DYCOM ANNOUNCES FISCAL 2006 FIRST QUARTER EARNINGS AND PROVIDES GUIDANCE
FOR THE SECOND QUARTER OF FISCAL 2006
FOR THE SECOND QUARTER OF FISCAL 2006
Palm Beach Gardens, Florida, November 21, 2005—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the fiscal 2006 first quarter ended October 29, 2005. The Company reported net income for the quarter ended October 29, 2005 of $10.7 million, or $0.23 per common share diluted, versus net income for the quarter ended October 30, 2004 of $15.6 million, or $0.32 per common share diluted. Included in net income for the quarter ended October 29, 2005 is non-cash stock-based compensation expense of $1.0 million versus $0.2 million in the quarter ended October 30, 2004. This expense results from the Company’s adoption of SFAS 123(R), “Share-Based Payment.” Total contract revenues for the quarter ended October 29, 2005 were $260.9 million compared to total contract revenues of $263.2 million for the quarter ended October 30, 2004, a decrease of 0.9%.
Dycom also announced its outlook for the second quarter of fiscal 2006. The Company currently expects revenue for the second quarter of fiscal 2006 to range from $195 million to $220 million and diluted earnings per share to range from $0.04 to $0.11.
A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Tuesday, November 22, 2005; call 888-428-4471 (United States) or 612-332-0632 (International) ten minutes before the call begins and request the “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, December 22, 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 2006 first quarter results are preliminary and are 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 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. We do not undertake to update forward-looking statements.
—Tables Follow—
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
October 29, 2005 and July 30, 2005
Unaudited
CONSOLIDATED BALANCE SHEETS
October 29, 2005 and July 30, 2005
Unaudited
October 29, | July 30, | |||||||
2005 | 2005 | |||||||
($ in 000’s) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 61,901 | $ | 83,062 | ||||
Accounts receivable, net | 167,989 | 161,321 | ||||||
Costs and estimated earnings in excess of billings | 79,963 | 65,559 | ||||||
Deferred tax assets, net | 12,052 | 12,535 | ||||||
Inventories | 8,619 | 8,116 | ||||||
Other current assets | 15,616 | 11,286 | ||||||
Total current assets | 346,140 | 341,879 | ||||||
Property and equipment, net | 113,129 | 117,145 | ||||||
Intangible assets, net | 226,607 | 227,443 | ||||||
Deferred tax assets, net non-current | 352 | — | ||||||
Other | 14,124 | 10,242 | ||||||
Total | $ | 700,352 | $ | 696,709 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 32,326 | $ | 37,185 | ||||
Current portion of long-term debt | 2,042 | 2,749 | ||||||
Billings in excess of costs and estimated earnings | 280 | 464 | ||||||
Accrued self-insured claims | 27,660 | 28,166 | ||||||
Income taxes payable | 12,313 | 6,598 | ||||||
Other accrued liabilities | 36,367 | 43,550 | ||||||
Total current liabilities | 110,988 | 118,712 | ||||||
Long-term debt | 186,962 | 4,179 | ||||||
Accrued self-insured claims | 26,832 | 22,652 | ||||||
Deferred tax liabilities, net | — | 1,299 | ||||||
Other liabilities | 140 | 57 | ||||||
Stockholders’ Equity | 375,430 | 549,810 | ||||||
Total | $ | 700,352 | $ | 696,709 | ||||
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months | Three Months | |||||||
Ended | Ended | |||||||
October 29, | October 30, | |||||||
2005 | 2004 | |||||||
(In 000’s, except per share amounts) | ||||||||
Contract revenues | $ | 260,898 | $ | 263,166 | ||||
Cost of earned revenues | 213,300 | 208,670 | ||||||
General and administrative expenses (including stock-based compensation expense of $1.0 million and $0.2 million, respectively) | 19,455 | 17,982 | ||||||
Depreciation and amortization | 11,381 | 11,265 | ||||||
Total | 244,136 | 237,917 | ||||||
Interest income | 690 | 116 | ||||||
Interest expense | (842 | ) | (162 | ) | ||||
Other income, net | 1,131 | 594 | ||||||
Income before income taxes | 17,741 | 25,797 | ||||||
Provision for income taxes | 7,019 | 10,176 | ||||||
Net income | $ | 10,722 | $ | 15,621 | ||||
Earnings per common share: | ||||||||
Basic earnings per share | $ | 0.23 | $ | 0.32 | ||||
Diluted earnings per share | $ | 0.23 | $ | 0.32 | ||||
Shares used in computing earnings per common share (1): | ||||||||
Basic | 47,137 | 48,604 | ||||||
Diluted | 47,305 | 49,170 | ||||||
(1) | At October 29, 2005 there were 40,110,843 common shares outstanding. The Company purchased 8,763,451 common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer. |