Dycom Industries (DY) 8-K Dycom Announces Fiscal 2006 Third Quarter Earnings, Goodwill Impairment Charge and Provides Guidance for the Next Fiscal Quarter

Exhibit 99.1

N E W S    R E L E A S E

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 May 23, 2006

DYCOM ANNOUNCES FISCAL 2006 THIRD QUARTER EARNINGS, GOODWILL
IMPAIRMENT CHARGE AND PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER

Palm Beach Gardens, Florida, May 23, 2006—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the third quarter ended April 29, 2006. The Company reported a net loss for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted, versus net income for the quarter ended April 30, 2005 of $13.7 million, or $0.28 per common share diluted. Included in the net loss for the quarter ended April 29, 2006 was a goodwill impairment charge of approximately $14.8 million (or $0.37 per common share diluted) related to the Company’s Can Am Communications subsidiary. Can Am was underperforming compared to expectations, increasing the uncertainty about its future cash flows. As a result, management recently implemented operational changes at Can Am which, together with Can Am’s underperformance, required the Company to perform an interim impairment test in accordance with Statement of Financial Accounting Standards No. 142 “Goodwill and Other Intangible Assets,” resulting in the impairment charge. Excluding this item, non-GAAP net income for the quarter ended April 29, 2006 was $8.3 million, or $0.21 per common share diluted. Total contract revenues for the quarter ended April 29, 2006 were $258.7 million compared to total contract revenues of $247.7 million for the quarter ended April 30, 2005, an increase of 4.5%. Stock-based compensation expense for the quarter ended April 29, 2006 and quarter ended April 30, 2005 was $1.4 million and $0.3 million, respectively, on a pre-tax basis.

For the nine months ended April 29, 2006 net income was $8.1 million, or $0.19 per common share diluted. For the nine months ended April 30, 2005 net income was $36.7 million, or $0.75 per common share diluted. Included in the net income for the nine months ended April 29, 2006 was a goodwill impairment charge of approximately $14.8 million (or $0.35 per common share diluted) related to the Company’s Can Am Communications subsidiary. Excluding this item, non-GAAP net income for the nine months ended April 29, 2006 was $22.9 million, or $0.54 per common share diluted. Total contract revenues for the nine months ended April 29, 2006 were $763.7 million compared to total contract revenues of $735.4 million for the nine months ended April 30, 2005, an increase of 3.9%. Stock-based compensation expense for the nine months ended April 29, 2006 and the nine months ended April 30, 2005 was $3.3 million and $0.7 million, respectively, on a pre-tax basis.

Dycom also announced its outlook for the fourth quarter of fiscal 2006. The Company currently expects revenue for the fourth quarter of fiscal 2006 to range from $240 million to $260 million and diluted

earnings per share to range from $0.17 to $0.23. 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), Wednesday, May 24, 2006; Call 877-209-0397 (United States) or 612-332-1213 (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 Friday, June 23, 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 third quarter and nine-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 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—

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NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 29, 2006 and July 30, 2005
Unaudited

	April 29,		July 30,
	2006		2005
	($ in 000’s)
ASSETS
Current Assets:
Cash and equivalents	$	13,589	$	83,062
Accounts receivable, net		153,722		161,321
Costs and estimated earnings in excess of billings		69,415		65,559
Deferred tax assets, net		15,068		12,535
Inventories		9,474		8,116
Income taxes receivable		1,774		—
Other current assets		16,471		11,286
Total current assets		279,513		341,879
Property and equipment, net		127,645		117,145
Intangible assets, net		266,320		227,443
Other		12,714		10,242
Total	$	686,192	$	696,709
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	31,050	$	37,185
Current portion of debt		7,388		2,749
Billings in excess of costs and estimated earnings		978		464
Accrued self-insured claims		31,710		28,166
Income taxes payable		—		6,598
Other accrued liabilities		41,387		43,550
Total current liabilities		112,513		118,712
Long-term debt		161,011		4,179
Accrued self-insured claims		27,936		22,652
Deferred tax liabilities, net non-current		6,973		1,299
Other liabilities		308		57
Stockholders’ Equity		377,451		549,810
Total	$	686,192	$	696,709

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NYSE: “DY”

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

	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	April 29,			April 30,			April 29,			April 30,
	2006			2005			2006			2005
	(In 000’s, except per share amounts)
Contract revenues	$	258,690		$	247,660		$	763,729		$	735,364
Cost of earned revenues		211,050			195,943			627,381			586,600
General and administrative expenses (1)		21,145			20,928			59,747			57,841
Depreciation and amortization		12,243			11,525			35,791			35,590
Goodwill impairment charge		14,835			—			14,835			—
Total		259,273			228,396			737,754			680,031
Interest income		327			407			1,540			783
Interest expense		(3,641	)		(90	)		(8,514	)		(320	)
Other income, net		2,902			3,214			4,272			4,991
Income (loss) before income taxes		(995	)		22,795			23,273			60,787
Provision for income taxes		5,508			9,082			15,183			24,080
Net income (loss)	$	(6,503	)	$	13,713		$	8,090		$	36,707
Earnings (loss) per common share:
Basic earnings (loss) per share	$	(0.16	)	$	0.28		$	0.19		$	0.75
Diluted earnings (loss) per share	$	(0.16	)	$	0.28		$	0.19		$	0.75
Shares used in computing earnings (loss) per common share (2):
Basic		40,163,176			48,828,142			42,413,595			48,712,816
Diluted		40,163,176			49,178,944			42,628,492			49,229,362

(1)	Includes stock-based compensation expense of $1.4 million and $3.3 million for the three and nine months ended April 29, 2006, respectively, and $0.3 million and $0.7 million for the three and nine months ended April 30, 2005, respectively.
(2)	The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.

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NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited

($ in 000’s except per share amounts)

	Three Months			Nine Months
	Ended			Ended
	April 29,			April 29,
	2006			2006
Item
Goodwill impairment charge	$	14,835		$	14,835
GAAP net income (loss)	$	(6,503	)	$	8,090
Adjusted for item above		14,835			14,835
Non-GAAP net income	$	8,332		$	22,925
Earnings (loss) per common share:
Basic income (loss) per share — GAAP	$	(0.16	)	$	0.19
Adjustment for item above		0.37			0.35
Basic earnings per share — Non-GAAP	$	0.21		$	0.54
Diluted earnings (loss) per share — GAAP	$	(0.16	)	$	0.19
Adjustment for item above		0.37			0.35
Diluted earnings per share — Non-GAAP	$	0.21		$	0.54
Shares used in computing GAAP earnings (loss) per common share and adjustment for item above:
Basic		40,163,176			42,413,595
Diluted		40,163,176			42,628,492
Shares used in computing Non-GAAP earnings per common share:
Basic		40,163,176			42,413,595
Diluted		40,395,055			42,628,492

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