EXHIBIT 99.1
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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 | May 22, 2007 |
DYCOM ANNOUNCES FISCAL 2007 THIRD QUARTER EARNINGS AND PROVIDES
GUIDANCE FOR THE NEXT FISCAL QUARTER
GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, May 22, 2007—Dycom Industries, Inc. (NYSE: DY) announced its results today for the third quarter ended April 28, 2007. The Company reported income from continuing operations for the quarter ended April 28, 2007 of $12.6 million, or $0.31 per common share diluted, versus a loss from continuing operations for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted. Income from continuing operations for the quarter ended April 28, 2007 includes a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. The loss from continuing operations for the quarter ended April 29, 2006 includes a goodwill impairment charge of approximately $14.8 million net of tax, or $0.37 per common share diluted. Excluding these items, non-GAAP income from continuing operations was $11.1 million, or $0.27 per common share diluted, for the quarter ended April 28, 2007 and $8.3 million, or $0.21 per common share diluted, for the quarter ended April 29, 2006.
For the nine months ended April 28, 2007 income from continuing operations was $27.7 million, or $0.68 per common share diluted. For the nine months ended April 29, 2006 income from continuing operations was $7.9 million, or $0.19 per common share diluted. Income from continuing operations for the nine months ended April 28, 2007 includes a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. Income from continuing operations for the nine months ended April 29, 2006 includes a goodwill impairment charge of approximately $14.8 million net of tax, or $0.35 per common share diluted. Excluding these items, non-GAAP income from continuing operations was $26.2 million, or $0.65 per common share diluted for the nine months ended April 28, 2007 and $22.7 million, or $0.53 per common share diluted, for the nine months ended April 29, 2006.
Total contract revenues from continuing operations for the quarter ended April 28, 2007 were $291.6 million compared to $251.1 million for the quarter ended April 29, 2006, an increase of 16.2%. Total contract revenues from continuing operations for the nine months ended April 28, 2007 were $820.5 million compared to $741.8 million for the nine months ended April 29, 2006, an increase of 10.6%. Included in contract revenues for the three and nine month periods ended April 28, 2007 is $1.4 million
from a business acquired on March 30, 2007. Stock-based compensation expense, on a pre-tax basis, for the three and nine month periods ended April 28, 2007 was $1.4 million and $ 4.8 million, respectively, compared to stock-based compensation expense of $1.4 million and $3.3 million for the three and nine month periods ended April 29, 2006, respectively .
Net income for the quarter ended April 28, 2007 was $12.4 million, or $0.31 per common share diluted, versus a net loss for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted. Net income for the nine months ended April 28, 2007 was $27.6 million, or $0.68 per common share diluted, versus net income for the nine months ended April 29, 2006 of $8.1 million, or $0.19 per common share diluted.
Dycom also announced its outlook for the fourth quarter of fiscal 2007. The Company currently expects revenue from continuing operations for the fourth quarter of fiscal 2007 to range from $295 million to $315 million and diluted earnings per share from continuing operations to range from $0.29 to $0.34, including stock-based compensation expense of approximately $1.5 million on a pre-tax basis. Management believes that discontinued operations will not have a material impact on the quarter.
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 23, 2007; Call 800-230-1085 (United States) or 612-234-9960 (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 22, 2007.
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 2007 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, the impact of any future acquisitions and whether they can be efficiently integrated into our existing operations, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks and uncertainties described in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended July 29, 2006, and other factors discussed from time to time in our other filings with the Securities and Exchange Commission, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake to update forward-looking statements.
—Tables Follow—
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 28, 2007 and July 29, 2006
Unaudited
CONSOLIDATED BALANCE SHEETS
April 28, 2007 and July 29, 2006
Unaudited
April 28, | July 29, | |||||||
2007 | 2006 | |||||||
($ in 000’s) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 15,966 | $ | 27,268 | ||||
Accounts receivable, net | 133,020 | 143,099 | ||||||
Costs and estimated earnings in excess of billings | 95,176 | 79,546 | ||||||
Deferred tax assets, net | 14,275 | 12,793 | ||||||
Inventories | 9,119 | 7,095 | ||||||
Other current assets | 10,393 | 9,311 | ||||||
Current assets of discontinued operations | 616 | 5,196 | ||||||
Total current assets | 278,565 | 284,308 | ||||||
Property and equipment, net | 160,548 | 125,393 | ||||||
Intangible assets, net | 322,076 | 265,133 | ||||||
Other | 12,538 | 13,928 | ||||||
Non-current assets of discontinued operations | 33 | 1,253 | ||||||
Total | $ | 773,760 | $ | 690,015 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 25,967 | $ | 25,715 | ||||
Current portion of debt | 3,515 | 5,169 | ||||||
Billings in excess of costs and estimated earnings | 645 | 397 | ||||||
Accrued self-insured claims | 26,992 | 25,886 | ||||||
Income taxes payable | 8,426 | 4,979 | ||||||
Other accrued liabilities | 52,107 | 44,337 | ||||||
Current liabilities of discontinued operations | 1,495 | 5,311 | ||||||
Total current liabilities | 119,147 | 111,794 | ||||||
Long-term debt | 179,303 | 150,009 | ||||||
Accrued self-insured claims | 31,822 | 30,770 | ||||||
Deferred tax liabilities, net non-current | 16,756 | 6,576 | ||||||
Other liabilities | 1,318 | 289 | ||||||
Non-current liabilities of discontinued operations | 1,131 | 1,122 | ||||||
Stockholders’ Equity | 424,283 | 389,455 | ||||||
Total | $ | 773,760 | $ | 690,015 | ||||
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
April 28, | April 29, | April 28, | April 29, | |||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
(In 000’s, except per share amounts) | ||||||||||||||||
Contract revenues | $ | 291,643 | $ | 251,077 | $ | 820,488 | $ | 741,810 | ||||||||
Cost of earned revenues | 233,657 | 204,309 | 662,193 | 608,581 | ||||||||||||
General and administrative expenses (1) | 23,712 | 20,622 | 66,786 | 57,999 | ||||||||||||
Depreciation and amortization | 15,327 | 11,861 | 41,964 | 34,678 | ||||||||||||
Goodwill impairment charge | — | 14,835 | — | 14,835 | ||||||||||||
Total | 272,696 | 251,627 | 770,943 | 716,093 | ||||||||||||
Interest income | 174 | 327 | 801 | 1,540 | ||||||||||||
Interest expense | (3,596 | ) | (3,641 | ) | (11,306 | ) | (8,515 | ) | ||||||||
Other income, net | 5,189 | 2,894 | 6,814 | 4,219 | ||||||||||||
Income (loss) from continuing operations before income taxes | 20,714 | (970 | ) | 45,854 | 22,961 | |||||||||||
Provision for income taxes | 8,144 | 5,518 | 18,110 | 15,059 | ||||||||||||
Income (loss) from continuing operations | 12,570 | (6,488 | ) | 27,744 | 7,902 | |||||||||||
Income (loss) from discontinued operations, net of tax (3) | (125 | ) | (15 | ) | (154 | ) | 188 | |||||||||
Net income (loss) | $ | 12,445 | $ | (6,503 | ) | $ | 27,590 | $ | 8,090 | |||||||
Earnings (loss) per common share — Basic: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.31 | $ | (0.16 | ) | $ | 0.69 | $ | 0.19 | |||||||
Income (loss) from discontinued operations | — | — | (0.01 | ) | — | |||||||||||
Net income (loss) | $ | 0.31 | $ | (0.16 | ) | $ | 0.68 | $ | 0.19 | |||||||
Earnings (loss) per common share — Diluted: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.31 | $ | (0.16 | ) | $ | 0.68 | $ | 0.19 | |||||||
Income (loss) from discontinued operations | — | — | — | — | ||||||||||||
Net income (loss) | $ | 0.31 | $ | (0.16 | ) | $ | 0.68 | $ | 0.19 | |||||||
Shares used in computing earnings per common share (2): | ||||||||||||||||
Basic | 40,469,787 | 40,163,176 | 40,324,503 | 42,413,595 | ||||||||||||
Diluted | 40,770,976 | 40,163,176 | 40,622,116 | 42,628,492 | ||||||||||||
(1) | Includes stock-based compensation expense of $1.4 million and $4.8 million for the three and nine months ended April 28, 2007, respectively, and $1.4 million and $3.3 million for the three and nine months ended April 29, 2006, respectively. | |
(2) | The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer. | |
(3) | The Company discontinued the operations of one of its subsidiaries in fiscal 2007 and has reported those results separately as discontinued operations in the financial statements for all periods presented. |
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
($ in 000’s except per share amounts)
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
($ in 000’s except per share amounts)
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
April 28, | April 29, | April 28, | April 29, | |||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Items: | ||||||||||||||||
Gain on sale of real estate, net of tax | $ | 1,508 | $ | — | $ | 1,508 | $ | — | ||||||||
Goodwill impairment charge, net of tax | — | (14,835 | ) | — | (14,835 | ) | ||||||||||
$ | 1,508 | $ | (14,835 | ) | $ | 1,508 | $ | (14,835 | ) | |||||||
GAAP income (loss) from continuing operations | $ | 12,570 | $ | (6,488 | ) | $ | 27,744 | $ | 7,902 | |||||||
Adjustment for items above | (1,508 | ) | 14,835 | (1,508 | ) | 14,835 | ||||||||||
Non-GAAP income from continuing operations | $ | 11,062 | $ | 8,347 | $ | 26,236 | $ | 22,737 | ||||||||
Earnings (loss) per common share from continuing operations: | ||||||||||||||||
Basic earnings (loss) per share from continuing operations — GAAP | $ | 0.31 | $ | (0.16 | ) | $ | 0.69 | $ | 0.19 | |||||||
Adjustment for items above | (0.04 | ) | 0.37 | (0.04 | ) | 0.35 | ||||||||||
Basic earnings per share from continuing operations — Non-GAAP | $ | 0.27 | $ | 0.21 | $ | 0.65 | $ | 0.54 | ||||||||
Diluted earnings (loss) per share from continuing operations — GAAP | $ | 0.31 | $ | (0.16 | ) | $ | 0.68 | $ | 0.19 | |||||||
Adjustment for items above | (0.04 | ) | 0.37 | (0.04 | ) | 0.35 | ||||||||||
Diluted earnings per share from continuing operations — Non-GAAP(1) | $ | 0.27 | $ | 0.21 | $ | 0.65 | $ | 0.53 | ||||||||
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for items above: | ||||||||||||||||
Basic | 40,469,787 | 40,163,176 | 40,324,503 | 42,413,595 | ||||||||||||
Diluted | 40,770,976 | 40,163,176 | 40,622,116 | 42,628,492 | ||||||||||||
Shares used in computing Non-GAAP earnings per common share from continuing operations: | ||||||||||||||||
Basic | 40,469,787 | 40,163,176 | 40,324,503 | 42,413,595 | ||||||||||||
Diluted | 40,770,976 | 40,395,055 | 40,622,116 | 42,628,492 | ||||||||||||
(1) | Amounts may not foot due to rounding. |