Dycom Industries (DY) 8-K Dycom Announces Fiscal 2006 Second Quarter Earnings and Provides Guidance for the Next Fiscal Quarter

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 February 27, 2006

DYCOM ANNOUNCES FISCAL 2006 SECOND QUARTER EARNINGS AND
PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER

Palm Beach Gardens, Florida, February 27, 2006—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the second quarter ended January 28, 2006. The Company reported net income for the quarter ended January 28, 2006 of $3.9 million, or $0.10 per common share diluted, versus net income for the quarter ended January 29, 2005 of $7.4 million, or $0.15 per common share diluted. Total contract revenues for the quarter ended January 28, 2006 were $244.1 million compared to total contract revenues of $224.5 million for the quarter ended January 29, 2005, an increase of 8.7%. Stock-based compensation expense for the quarter ended January 28, 2006 and quarter ended January 29, 2005 was $0.9 million and $0.2 million, respectively, on a pre-tax basis.

For the six months ended January 28, 2006 net income was $14.6 million, or $0.33 per common share diluted. For the six months ended January 29, 2005 net income was $23.0 million, or $0.47 per common share diluted. Total contract revenues for the six months ended January 28, 2006 were $505.0 million compared to total contract revenues of $487.7 million for the six months ended January 29, 2005, an increase of 3.6%. Stock-based compensation expense for the six months ended January 28, 2006 and the six months ended January 29, 2005 was $1.9 million and $0.4 million, respectively, on a pre-tax basis.

Dycom also announced its outlook for the third quarter of fiscal 2006. The Company currently expects revenue for the third quarter of fiscal 2006 to range from $230 million to $255 million and diluted earnings per share to range from $0.13 to $0.19. Included in the expected results is stock-based compensation expense of approximately $1.5 million on a pre-tax basis.

A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Tuesday, February 28, 2006; call 800-230-1093 (United States) or 612-288-0329 (International) and request “Dycom Earnings” conference call.A live webcast of the conference call will be available athttp://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 athttp://www.dycomind.com until Thursday, March 30, 2006.

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 second quarter and six-month 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, stock-based compensation expense 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 our recent acquisition 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. The Company does not undertake to update forward-looking statements.

—Tables Follow—

NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 28, 2006 and July 30, 2005
Unaudited

	January 28,		July 30,
	2006		2005
	($ in 000’s)
ASSETS
Current Assets:
Cash and equivalents	$	22,439	$	83,062
Accounts receivable, net		157,604		161,321
Costs and estimated earnings in excess of billings		68,037		65,559
Deferred tax assets, net		13,553		12,535
Inventories		9,752		8,116
Income taxes receivable		6,291		—
Other current assets		20,105		11,286
Total current assets		297,781		341,879
Property and equipment, net		120,693		117,145
Goodwill		232,549		194,123
Intangible assets, net		51,345		33,320
Other		14,349		10,242
Total	$	716,717	$	696,709
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	28,992	$	37,185
Current portion of debt		9,409		2,749
Billings in excess of costs and estimated earnings		472		464
Accrued self-insured claims		30,355		28,166
Income taxes payable		—		6,598
Other accrued liabilities		48,621		43,550
Total current liabilities		117,849		118,712
Long-term debt		182,204		4,179
Accrued self-insured claims		28,166		22,652
Deferred tax liabilities, net non-current		6,246		1,299
Other liabilities		224		57
Stockholders’ Equity		382,028		549,810
Total	$	716,717	$	696,709

NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited

	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	January 28,			January 29,			January 28,			January 29,
	2006			2005			2006			2005
	(In 000’s, except per share amounts)
Contract revenues	$	244,141		$	224,539		$	505,039		$	487,704
Cost of earned revenues, excluding depreciation		203,031			181,986			416,331			390,656
General and administrative expenses (1)		19,172			18,931			38,602			36,914
Depreciation and amortization		12,166			12,800			23,548			24,065
Total		234,369			213,717			478,481			451,635
Interest income		523			259			1,212			376
Interest expense		(4,007	)		(67	)		(4,872	)		(230	)
Other income, net		239			1,182			1,370			1,777
Income before income taxes		6,527			12,196			24,268			37,992
Provision for income taxes		2,656			4,822			9,675			14,998
Net income	$	3,871		$	7,374		$	14,593		$	22,994
Earnings per common share:
Basic earnings per share	$	0.10		$	0.15		$	0.34		$	0.47
Diluted earnings per share	$	0.10		$	0.15		$	0.33		$	0.47
Shares used in computing earnings per common share (2):
Basic		40,058,234			48,689,374			43,533,157			48,646,979
Diluted		40,274,160			49,343,172			43,738,518			49,257,391

(1)	Includes stock-based compensation expense of $0.9 million and $1.9 million for the three and six months ended January 28, 2006, respectively, and $0.2 million and $0.4 million for the three and six months ended January 29, 2005, respectively.
(2)	The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.