Dycom Industries (DY) 8-K Dycom Announces Fiscal 2008 Third Quarter Results and Provides Guidance for the Fourth Quarter of Fiscal 2008

Exhibit 99.1

N E W S    R E L E A S E

FOR IMMEDIATE RELEASE Contact: Steven E. Nielsen, President and CEO
H. Andrew DeFerrari, Senior Vice
President and CFO
(561) 627-7171

Palm Beach Gardens, Florida May 20, 2008

DYCOM ANNOUNCES FISCAL 2008 THIRD QUARTER RESULTS AND
PROVIDES GUIDANCE FOR THE FOURTH QUARTER OF FISCAL 2008

Palm Beach Gardens, Florida, May 20, 2008—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced today its results for the third quarter ended April 26, 2008. The Company reported income from continuing operations for the quarter ended April 26, 2008 of $7.7 million, or $0.19 per common share diluted, versus income from continuing operations for the quarter ended April 28, 2007 of $12.6 million, or $0.31 per common share diluted. Net income, including the results of discontinued operations, for the quarter ended April 26, 2008 was $6.9 million, or $0.17 per common share diluted, compared to net income of $12.4 million, or $0.31 per common share diluted, for the quarter ended April 28, 2007. Total contract revenues from continuing operations for the quarter ended April 26, 2008 were $293.4 million compared to $291.6 million for the quarter ended April 28, 2007, an increase of 0.6%. Stock based compensation expense for the each of the quarters ended April 26, 2008 and April 28, 2007 was $1.4 million, on a pre-tax basis.

Income from continuing operations for the quarter ended April 26, 2008 included a reduction of interest and income tax expense of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax related liabilities and a reduction of $1.7 million in the cost of earned revenues related to the reversal of a pre-acquisition payroll related accrual. The aggregate effect of these items was to increase income from continuing operations by $2.1 million, net of tax, or $0.05 per common share diluted for the quarter ended April 26, 2008. Income from continuing operations for the quarter ended April 28, 2007 included a gain on sale of real estate of $1.5 million, net of tax, or $0.04 per common share diluted. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the quarter ended April 26, 2008 was $5.5 million, or $0.14 per common share diluted, versus $11.1 million, or $0.27 per common share diluted, for the quarter ended April 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

For the nine months ended April 26, 2008 income from continuing operations was $19.8 million, or $0.48 per common share diluted, versus income from continuing operations for the nine months ended April 28, 2007 of $27.7 million, or $0.68 per common share diluted. Net income, including the results of discontinued operations, for the nine months ended April 26, 2008 was $18.6 million or $0.45 per common share diluted, compared to net income of $27.6 million, or $0.68 per common share diluted for the nine months ended April 28, 2007. Total contract revenues from continuing operations for the nine months ended April 26, 2008 were $907.9 million compared to $820.5 million for the nine months ended April 28, 2007, an increase of 10.6%. Stock based compensation expense for the nine months ended April 26, 2008 and the nine months ended April 28, 2007 was $4.6 million and $4.8 million, respectively, on a pre-tax basis.

Income from continuing operations for the nine months ended April 26, 2008 included the accrual of $7.6 million related to the previously announced wage and hour class action settlement with respect to three of the Company’s subsidiaries. Additionally, income from continuing operations includes a reduction of interest and income tax expense of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax related liabilities and a reduction of $1.7 million in the cost of earned revenues related to the reversal of a pre-acquisition payroll related accrual. On a combined basis, these items decreased income from continuing operations $2.5 million, net of tax, or $0.06 per common share diluted for the nine months ended April 26, 2008. Income from continuing operations for the nine months ended April 28, 2007 included a gain on sale of real estate of $1.5 million, net of tax, or $0.04 per common share diluted. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the nine months ended April 26, 2008 was $22.3 million, or $0.54 per common share diluted, versus $26.2 million, or $0.65 per common share diluted, for the nine months ended April 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Dycom also announced its outlook for the fourth quarter of fiscal 2008. The Company currently expects revenue from continuing operations for the fourth quarter of fiscal 2008 to range from $305 million to $325 million and diluted earnings per share from continuing operations to range from $0.18 to $0.23, including stock based compensation expense of approximately $1.1 million on a pre-tax basis. Management currently 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 21, 2008; Call 800-230-1096 (United States) or 612-332-0107 (International) and request “Dycom Results” conference call.A live webcast of the conference call, along with a slide presentation, will be available athttp://www.dycomind.com under the heading “Investors” and subheading “Event Details.” If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the slide presentation will be available athttp://www.dycomind.com until Friday, June 20, 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 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, 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 acquisitions 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
April 26, 2008 and July 28, 2007
Unaudited

	April 26,		July 28,
	2008		2007
	($ in 000’s)
ASSETS
Current Assets:
Cash and equivalents	$	25,040	$	18,862
Accounts receivable, net		127,856		146,864
Costs and estimated earnings in excess of billings		84,764		95,392
Deferred tax assets, net		19,229		15,478
Income taxes receivable		9,380		—
Inventories		8,854		8,268
Other current assets		9,628		7,266
Current assets of discontinued operations		171		307
Total current assets		284,922		292,437
Property and equipment, net		177,027		164,544
Intangible assets, net		314,584		320,952
Other		10,668		11,831
Total	$	787,201	$	789,764
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	28,778	$	30,375
Current portion of debt		2,518		3,301
Billings in excess of costs and estimated earnings		613		712
Accrued self-insured claims		31,652		26,902
Income taxes payable		—		1,947
Other accrued liabilities		55,479		63,076	��
Current liabilities of discontinued operations		1,608		939
Total current liabilities		120,648		127,252
Long-term debt		151,529		163,509
Accrued self-insured claims		35,468		33,085
Deferred tax liabilities, net non-current		20,599		19,316
Other liabilities		6,953		1,322
Non-current liabilities of discontinued operations		507		649
Stockholders’ Equity		451,497		444,631
Total	$	787,201	$	789,764

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NYSE: “DY”

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

	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	April 26,			April 28,			April 26,			April 28,
	2008			2007			2008			2007
	(In 000’s, except per share amounts)
Contract revenues	$	293,440		$	291,643		$	907,869		$	820,488
Cost of earned revenues, excluding depreciation and amortization		239,598			233,657			748,816			662,193
General and administrative expenses (1)		24,969			23,712			72,892			66,786
Depreciation and amortization		17,301			15,327			50,258			41,964
Total		281,868			272,696			871,966			770,943
Interest income		238			174			619			801
Interest expense		(3,110	)		(3,596	)		(10,231	)		(11,306	)
Other income, net		2,670			5,189			5,040			6,814
Income from continuing operations before income taxes		11,370			20,714			31,331			45,854
Provision for income taxes		3,677			8,144			11,515			18,110
Income from continuing operations		7,693			12,570			19,816			27,744
Loss from discontinued operations, net of tax (2)		(807	)		(125	)		(1,228	)		(154	)
Net income	$	6,886		$	12,445		$	18,588		$	27,590
Earnings per common share — Basic:
Income from continuing operations	$	0.19		$	0.31		$	0.49		$	0.69
Loss from discontinued operations		(0.02	)		—			(0.03	)		(0.01	)
Net income	$	0.17		$	0.31		$	0.46		$	0.68
Earnings per common share — Diluted:
Income from continuing operations	$	0.19		$	0.31		$	0.48		$	0.68
Loss from discontinued operations		(0.02	)		—			(0.03	)		—
Net income	$	0.17		$	0.31		$	0.45		$	0.68
Shares used in computing earnings per common share:
Basic		40,436,212			40,469,787			40,651,236			40,324,503
Diluted		40,486,765			40,770,976			40,865,349			40,622,116

Earnings per share amounts may not add due to rounding.

(1)	Includes stock-based compensation expense of $1.4 million and $4.6 million for the three and nine months ended April 26, 2008, respectively, and $1.4 million and $4.8 million for the three and nine months ended April 28, 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

	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	April 26,			April 28,			April 26,			April 28,
	2008			2007			2008			2007
	(In 000’s, except per share amounts)
Items:
Charge for wage and hour litigation	$	—		$	—		$	(7,591	)	$	—
Reversal of interest expense on income tax related liabilities		339			—			339			—
Reversal of income tax related liabilities		858			—			858			—
Reversal of pre-acquisition payroll related accruals		1,680			—			1,680			—
Gain on sale of real estate		—			2,485			—			2,485
	$	2,877		$	2,485		$	(4,714	)	$	2,485
GAAP income from continuing operations	$	7,693		$	12,570		$	19,816		$	27,744
Adjustment for items above, net of tax		(2,144	)		(1,508	)		2,451			(1,508	)
Non-GAAP income from continuing operations	$	5,549		$	11,062		$	22,267		$	26,236
Earnings per common share from continuing operations:
Basic earnings per share from continuing operations — GAAP	$	0.19		$	0.31			0.49		$	0.69
Adjustment for items above		(0.05	)		(0.04	)		0.06			(0.04	)
Basic earnings per share from continuing operations — Non-GAAP (1)	$	0.14		$	0.27			0.55		$	0.65
Diluted earnings per share from continuing operations — GAAP	$	0.19		$	0.31			0.48		$	0.68
Adjustment for items above		(0.05	)		(0.04	)		0.06			(0.04	)
Diluted earnings per share from continuing operations- Non-GAAP (1)	$	0.14		$	0.27			0.54		$	0.65
Shares used in computing GAAP earnings per common share from continuing operations and adjustment for items above (2):
Basic		40,436,212			40,469,787			40,651,236			40,324,503
Diluted		40,486,765			40,770,976			40,865,349			40,622,116
Shares used in computing Non-GAAP earnings per common share from continuing operations (2):
Basic		40,436,212			40,469,787			40,651,236			40,324,503
Diluted		40,486,765			40,770,976			40,901,585			40,622,116

(1)	Amounts may not add due to rounding.
(2)	On August 28, 2007, the Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock over an eighteen month period in open market or private transactions. The Company repurchased 922,200 shares of its common stock during the three months ended April 26, 2008. The total amount repurchased during the nine months ended April 26, 2008 was 1,016,200 shares.

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