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 | November 19, 2007 |
DYCOM ANNOUNCES FISCAL 2008 FIRST QUARTER RESULTS AND
PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER
PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, November 19, 2007 — Dycom Industries, Inc. (NYSE Symbol: “DY”) announced today its results for the first quarter ended October 27, 2007. The Company reported income from continuing operations for the quarter ended October 27, 2007 of $15.3 million, or $0.37 per common share diluted, versus income from continuing operations for the quarter ended October 28, 2006 of $9.5 million, or $0.24 per common share diluted. Net income, including the results of discontinued operations, for the quarter ended October 27, 2007 was $14.9 million, or $0.36 per common share diluted, compared to $9.6 million, or $0.24 per common share diluted, for the quarter ended October 28, 2006. Total contract revenues from continuing operations for the quarter ended October 27, 2007 were $329.7 million compared to total contract revenues from continuing operations of $270.6 million for the quarter ended October 28, 2006, an increase of 21.9%. Stock-based compensation expense for the quarter ended October 27, 2007 and quarter ended October 28, 2006 was $2.1 million and $1.7 million, respectively, on a pre-tax basis.
Dycom also announced its outlook for the second quarter of fiscal 2008. The Company currently expects revenue for the second quarter of fiscal 2008 to range from $290 million to $310 million and diluted earnings per share to range from $0.15 to $0.21. Included in the expected results is stock-based compensation expense of approximately $2.1 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, November 20, 2007; Call 866-205-3921 (United States) or 612-332-0718 (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, December 20, 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.
The fiscal 2008 first quarter results are preliminary and the 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, 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 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
CONDENSED CONSOLIDATED BALANCE SHEETS
October 27, 2007 and July 28, 2007
Unaudited
CONDENSED CONSOLIDATED BALANCE SHEETS
October 27, 2007 and July 28, 2007
Unaudited
October 27, | July 28, | |||||||
2007 | 2007 | |||||||
($ in 000’s) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 19,232 | $ | 18,862 | ||||
Accounts receivable, net | 157,078 | 146,864 | ||||||
Costs and estimated earnings in excess of billings | 97,554 | 95,392 | ||||||
Deferred tax assets, net | 16,634 | 15,478 | ||||||
Inventories | 9,349 | 8,268 | ||||||
Other current assets | 12,012 | 7,266 | ||||||
Current assets of discontinued operations | 288 | 307 | ||||||
Total current assets | 312,147 | 292,437 | ||||||
Property and equipment, net | 172,793 | 164,544 | ||||||
Intangible assets, net | 318,810 | 320,952 | ||||||
Other | 11,603 | 11,831 | ||||||
Total | $ | 815,353 | $ | 789,764 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 33,222 | $ | 30,375 | ||||
Current portion of debt | 3,094 | 3,301 | ||||||
Billings in excess of costs and estimated earnings | 1,375 | 712 | ||||||
Accrued self-insured claims | 27,690 | 26,902 | ||||||
Income taxes payable | 8,926 | 1,947 | ||||||
Other accrued liabilities | 51,153 | 63,076 | ||||||
Current liabilities of discontinued operations | 1,239 | 939 | ||||||
Total current liabilities | 126,699 | 127,252 | ||||||
Long-term debt | 167,786 | 163,509 | ||||||
Accrued self-insured claims | 36,355 | 33,085 | ||||||
Deferred tax liabilities, net non-current | 16,494 | 19,316 | ||||||
Other liabilities | 9,077 | 1,322 | ||||||
Non-current liabilities of discontinued operations | 651 | 649 | ||||||
Stockholders’ Equity | 458,291 | 444,631 | ||||||
Total | $ | 815,353 | $ | 789,764 | ||||
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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months | Three Months | |||||||
Ended | Ended | |||||||
October 27, | October 28, | |||||||
2007 | 2006 | |||||||
(In 000’s, except per share amounts) | ||||||||
Contract revenues | $ | 329,672 | $ | 270,553 | ||||
Cost of earned revenues, excluding depreciation | 261,312 | 217,765 | ||||||
General and administrative expenses (1) | 25,608 | 21,679 | ||||||
Depreciation and amortization | 16,047 | 12,495 | ||||||
Total | 302,967 | 251,939 | ||||||
Interest income | 210 | 393 | ||||||
Interest expense | (3,556 | ) | (3,757 | ) | ||||
Other income, net | 1,572 | 495 | ||||||
Income from continuing operations before income taxes | 24,931 | 15,745 | ||||||
Provision for income taxes | 9,674 | 6,219 | ||||||
Income from continuing operations | 15,257 | 9,526 | ||||||
Income (loss) from discontinued operations, net of tax (2) | (330 | ) | 34 | |||||
Net income | $ | 14,927 | $ | 9,560 | ||||
Earnings per common share — Basic: | ||||||||
Income from continuing operations | $ | 0.37 | $ | 0.24 | ||||
Income (loss) from discontinued operations | (0.01 | ) | — | |||||
Net income | $ | 0.37 | $ | 0.24 | ||||
Earnings per common share — Diluted: | ||||||||
Income from continuing operations | $ | 0.37 | $ | 0.24 | ||||
Income (loss) from discontinued operations | (0.01 | ) | — | |||||
Net income | $ | 0.36 | $ | 0.24 | ||||
Shares used in computing earnings per common share: | ||||||||
Basic | 40,718,872 | 40,211,358 | ||||||
Diluted | 41,174,497 | 40,509,514 | ||||||
Earnings per share amounts may not add due to rounding.
(1) | Includes stock-based compensation expense of $2.1 million and $1.7 million for the three months ended October 27, 2007 and October 28, 2006, respectively. | |
(2) | 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. |
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