Exhibit 99.1
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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 | February 26, 2008 |
DYCOM ANNOUNCES FISCAL 2008 SECOND QUARTER RESULTS AND
PROVIDES GUIDANCE FOR THE THIRD QUARTER OF FISCAL 2008
PROVIDES GUIDANCE FOR THE THIRD QUARTER OF FISCAL 2008
Palm Beach Gardens, Florida, February 26, 2008—Dycom Industries, Inc. (NYSE: “DY”) announced today its results for the second quarter ended January 26, 2008. The Company reported a loss from continuing operations for the quarter ended January 26, 2008 of ($3.1) million, or ($0.08) per common share diluted, versus income from continuing operations for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted. Net loss, including the results of discontinued operations, for the quarter ended January 26, 2008 was ($3.2) million, or ($0.08) per common share diluted, compared to net income of $5.6 million, or $0.14 per common share diluted, for the quarter ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company’s subsidiaries, earnings from continuing operations for the quarter ended January 26, 2008 were $1.5 million, or $0.04 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 26, 2008 were $284.8 million compared to $258.3 million for the quarter ended January 27, 2007, an increase of 10.2%. Stock based compensation expense for the quarter ended January 26, 2008 and quarter ended January 27, 2007 was $1.0 million and $1.6 million, respectively, on a pre-tax basis.
For the six months ended January 26, 2008 income from continuing operations was $12.1 million, or $0.30 per common share diluted, versus income from continuing operations for the six months ended January 27, 2007 of $15.2 million, or $0.37 per common share diluted. Net income, including the results of discontinued operations, for the six months ended January 26, 2008 was $11.7 million or $0.28 per common share diluted, compared to net income of $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company’s subsidiaries, income from continuing operations for the six months ended January 26, 2008 was $16.7 million, or $0.41 per common share on a fully diluted basis. Total contract revenues from continuing operations for the six months ended January 26, 2008 were $614.4 million compared to $528.8 million for the six months ended January 27, 2007, an increase of 16.2%. Stock based compensation expense for the six months ended January 26, 2008 and the six months ended January 27, 2007 was $3.2 million and $3.3 million, respectively, on a pre-tax basis.
Dycom also announced its outlook for the third quarter of fiscal 2008. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2008 to range from $270 million to $295 million and diluted earnings per share from continuing operations to range from $0.08 to $0.13, including stock based compensation expense of approximately $1.2 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, February 27, 2008; Call 800-230-1059 (United States) or 612-332-0923 (International) and request “Dycom Results” 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, March 29, 2008.
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 facility locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2008 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—
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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
January 26, 2008 and July 28, 2007
Unaudited
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
January 26, 2008 and July 28, 2007
Unaudited
January 26, | July 28, | |||||||
2008 | 2007 | |||||||
($ in 000’s) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 27,259 | $ | 18,862 | ||||
Accounts receivable, net | 128,770 | 146,864 | ||||||
Costs and estimated earnings in excess of billings | 79,092 | 95,392 | ||||||
Deferred tax assets, net | 19,448 | 15,478 | ||||||
Income taxes receivable | 9,170 | — | ||||||
Inventories | 9,538 | 8,268 | ||||||
Other current assets | 12,416 | 7,266 | ||||||
Current assets of discontinued operations | 255 | 307 | ||||||
Total current assets | 285,948 | 292,437 | ||||||
Property and equipment, net | 174,251 | 164,544 | ||||||
Intangible assets, net | 317,012 | 320,952 | ||||||
Other | 11,207 | 11,831 | ||||||
Total | $ | 788,418 | $ | 789,764 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 25,674 | $ | 30,375 | ||||
Current portion of debt | 2,883 | 3,301 | ||||||
Billings in excess of costs and estimated earnings | 1,067 | 712 | ||||||
Accrued self-insured claims | 29,774 | 26,902 | ||||||
Income taxes payable | — | 1,947 | ||||||
Other accrued liabilities | 60,042 | 63,076 | ||||||
Current liabilities of discontinued operations | 1,126 | 939 | ||||||
Total current liabilities | 120,566 | 127,252 | ||||||
Long-term debt | 152,119 | 163,509 | ||||||
Accrued self-insured claims | 35,624 | 33,085 | ||||||
Deferred tax liabilities, net non-current | 16,767 | 19,316 | ||||||
Other liabilities | 8,178 | 1,322 | ||||||
Non-current liabilities of discontinued operations | 565 | 649 | ||||||
Stockholders’ Equity | 454,599 | 444,631 | ||||||
Total | $ | 788,418 | $ | 789,764 | ||||
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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
DYCOM INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months | Three Months | Six Months | Six Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
January 26, | January 27, | January 26, | January 27, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In 000’s, except per share amounts) | ||||||||||||||||
Contract revenues | $ | 284,758 | $ | 258,293 | $ | 614,430 | $ | 528,846 | ||||||||
Cost of earned revenues, excluding depreciation and amortization | 247,906 | 210,771 | 509,218 | 428,536 | ||||||||||||
General and administrative expenses (1) | 22,315 | 21,395 | 47,923 | 43,074 | ||||||||||||
Depreciation and amortization | 16,910 | 14,142 | 32,957 | 26,637 | ||||||||||||
Total | 287,131 | 246,308 | 590,098 | 498,247 | ||||||||||||
Interest income | 171 | 234 | 381 | 627 | ||||||||||||
Interest expense | (3,566 | ) | (3,953 | ) | (7,122 | ) | (7,710 | ) | ||||||||
Other income, net | 798 | 1,129 | 2,370 | 1,624 | ||||||||||||
Income (loss) from continuing operations before income taxes | (4,970 | ) | 9,395 | 19,961 | 25,140 | |||||||||||
Provision (benefit) for income taxes | (1,837 | ) | 3,747 | 7,837 | 9,966 | |||||||||||
Income (loss) from continuing operations | (3,133 | ) | 5,648 | 12,124 | 15,174 | |||||||||||
Loss from discontinued operations, net of tax (2) | (93 | ) | (63 | ) | (422 | ) | (29 | ) | ||||||||
Net income (loss) | $ | (3,226 | ) | $ | 5,585 | $ | 11,702 | $ | 15,145 | |||||||
Earnings (loss) per common share — Basic: | ||||||||||||||||
Income (loss) from continuing operations | $ | (0.08 | ) | $ | 0.14 | $ | 0.30 | $ | 0.38 | |||||||
Loss from discontinued operations | — | — | (0.01 | ) | — | |||||||||||
Net income (loss) | $ | (0.08 | ) | $ | 0.14 | $ | 0.29 | $ | 0.38 | |||||||
Earnings (loss) per common share — Diluted: | ||||||||||||||||
Income (loss) from continuing operations | $ | (0.08 | ) | $ | 0.14 | $ | 0.30 | $ | 0.37 | |||||||
Loss from discontinued operations | — | — | (0.01 | ) | — | |||||||||||
Net income (loss) | $ | (0.08 | ) | $ | 0.14 | $ | 0.28 | $ | 0.37 | |||||||
Shares used in computing earnings (loss) per common share: | ||||||||||||||||
Basic | 40,799,664 | 40,295,932 | 40,759,267 | 40,253,498 | ||||||||||||
Diluted | 40,799,664 | 40,599,162 | 41,073,223 | 40,553,092 | ||||||||||||
Earnings per share amounts may not add due to rounding.
(1) | Includes stock-based compensation expense of $1.0 million and $3.2 million for the three and six months ended January 26, 2008, respectively, and $1.6 million and $3.3 million for the three and six months ended January 27, 2007, 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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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
Three Months | Three Months | Six Months | Six Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
January 26, | January 27, | January 26, | January 27, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In 000’s, except per share amounts) | ||||||||||||||||
Item: | ||||||||||||||||
Charge for wage and hour litigation | $ | (7,591 | ) | $ | — | $ | (7,591 | ) | $ | — | ||||||
GAAP income (loss) from continuing operations | $ | (3,133 | ) | $ | 5,648 | $ | 12,124 | $ | 15,174 | |||||||
Adjustment for item above, net of tax | 4,597 | — | 4,597 | — | ||||||||||||
Non-GAAP income from continuing operations | $ | 1,464 | $ | 5,648 | $ | 16,721 | $ | 15,174 | ||||||||
Earnings (loss) per common share from continuing operations: | ||||||||||||||||
Basic earnings (loss) per share from continuing operations — GAAP | $ | (0.08 | ) | $ | 0.14 | $ | 0.30 | $ | 0.38 | |||||||
Adjustment for item above | 0.11 | — | 0.11 | — | ||||||||||||
Basic earnings per share from continuing operations — Non-GAAP (1) | $ | 0.04 | $ | 0.14 | $ | 0.41 | $ | 0.38 | ||||||||
Diluted earnings (loss) per share from continuing operations — GAAP | $ | (0.08 | ) | $ | 0.14 | $ | 0.30 | $ | 0.37 | |||||||
Adjustment for item above | 0.11 | — | 0.11 | — | ||||||||||||
Diluted earnings per share from continuing operations- Non-GAAP (1) | $ | 0.04 | $ | 0.14 | $ | 0.41 | $ | 0.37 | ||||||||
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for item above: | ||||||||||||||||
Basic | 40,799,664 | 40,295,932 | 40,759,267 | 40,253,498 | ||||||||||||
Diluted | 40,799,664 | 40,599,162 | 41,073,223 | 40,553,092 | ||||||||||||
Shares used in computing Non-GAAP earnings per common share from continuing operations: | ||||||||||||||||
Basic | 40,799,664 | 40,295,932 | 40,759,267 | 40,253,498 | ||||||||||||
Diluted | 41,106,655 | 40,599,162 | 41,127,577 | 40,553,092 | ||||||||||||
(1) | Amounts may not add due to rounding. |
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