Exhibit 99.1
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NEWS RELEASE
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 | November 24, 2008 |
DYCOM ANNOUNCES FISCAL 2009 FIRST QUARTER RESULTS AND
PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER
PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, November 24, 2008 — Dycom Industries, Inc. (NYSE: DY) announced today its results for the first quarter ended October 25, 2008. The Company reported income from continuing operations for the quarter ended October 25, 2008 of $10.6 million, or $0.27 per common share diluted, versus income from continuing operations for the quarter ended October 27, 2007 of $15.3 million, or $0.37 per common share diluted. On a non-GAAP basis, excluding the write-off of deferred financing costs of $0.6 million, income from continuing operations for the quarter ended October 25, 2008 was $10.9 million, or $0.28 per common share diluted, versus income from continuing operations for the quarter ended October 27, 2007 of $15.3 million, or $0.37 per common share diluted. The write-off resulted from the Company replacing its existing credit facility with a new $195 million three year facility. Net income, including the results of discontinued operations, for the quarter ended October 25, 2008 was $10.5 million, or $0.27 per common share diluted, compared to $14.9 million, or $0.36 per common share diluted for the quarter ended October 27, 2007. Total contract revenues from continuing operations for the quarter ended October 25, 2008 were $334.0 million, including approximately $15 million from work related to hurricanes that impacted the Southern United States during the quarter, compared to total contract revenues from continuing operations of $329.7 million for the quarter ended October 27, 2007, an increase of 1.3%.
Steven Nielsen, President and CEO stated, “We performed well during our first fiscal quarter with revenue and earnings exceeding our expectations despite an economic environment that became more challenging as the quarter progressed. As we look to the second quarter, our guidance reflects an economy now in recession. Accordingly, we have implemented a number of corporate initiatives including reductions in general and administrative expenses and capital expenditures. These second quarter initiatives are intended to fortify our already strong balance sheet and meaningfully increase our already robust liquidity. While we expect the economic environment to impact the spending plans of our customers, we are encouraged that our major customers possess significant financial strength and remain committed to multi-year capital spending initiatives.”
Dycom announced its outlook for the second quarter of fiscal 2009. The Company currently expects revenue for the second quarter of fiscal 2009 to range from $250 million to $270 million and diluted earnings per share to range from $0.02 to $0.07.
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 25, 2008; Call 800-288-8960 (United States) or 612-332-0523 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 will also be available athttp://www.dycomind.com until Thursday, December 25, 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.
The fiscal 2009 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, 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—
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
October 25, 2008 and July 26, 2008
Unaudited
CONDENSED CONSOLIDATED BALANCE SHEETS
October 25, 2008 and July 26, 2008
Unaudited
October 25, | July 26, | |||||||
2008 | 2008 | |||||||
($ in 000’s) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 45,723 | $ | 22,068 | ||||
Accounts receivable, net | 155,791 | 146,420 | ||||||
Costs and estimated earnings in excess of billings | 96,231 | 94,270 | ||||||
Deferred tax assets, net | 16,779 | 19,347 | ||||||
Income taxes receivable | 2,241 | 6,014 | ||||||
Inventories | 10,135 | 8,994 | ||||||
Other current assets | 11,945 | 7,301 | ||||||
Current assets of discontinued operations | 618 | 667 | ||||||
Total current assets | 339,463 | 305,081 | ||||||
Property and equipment, net | 164,597 | 170,479 | ||||||
Goodwill | 240,138 | 240,138 | ||||||
Intangible assets, net | 61,035 | 62,860 | ||||||
Other | 11,428 | 10,478 | ||||||
Total | $ | 816,661 | $ | 789,036 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 32,994 | $ | 29,835 | ||||
Current portion of debt | 2,064 | 2,306 | ||||||
Billings in excess of costs and estimated earnings | 311 | 483 | ||||||
Accrued insurance claims | 29,883 | 29,834 | ||||||
Other accrued liabilities | 47,934 | 66,275 | ||||||
Current liabilities of discontinued operations | 1,828 | 2,731 | ||||||
Total current liabilities | 115,014 | 131,464 | ||||||
Long-term debt | 180,621 | 151,049 | ||||||
Accrued insurance claims | 39,118 | 37,175 | ||||||
Deferred tax liabilities, net non-current | 19,947 | 19,514 | ||||||
Other liabilities | 5,717 | 5,314 | ||||||
Non-current liabilities of discontinued operations | 437 | 427 | ||||||
Stockholders’ Equity | 455,807 | 444,093 | ||||||
Total | $ | 816,661 | $ | 789,036 | ||||
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months | Three Months | |||||||
Ended | Ended | |||||||
October 25, | October 27, | |||||||
2008 | 2007 | |||||||
(In 000’s, except per share amounts) | ||||||||
Contract revenues | $ | 333,967 | $ | 329,672 | ||||
Cost of earned revenues, excluding depreciation and amortization | 268,646 | 261,312 | ||||||
General and administrative expenses (1) | 27,540 | 25,608 | ||||||
Depreciation and amortization | 16,612 | 16,047 | ||||||
Total | 312,798 | 302,967 | ||||||
Interest income | 135 | 210 | ||||||
Interest expense | (4,052 | ) | (3,556 | ) | ||||
Other income, net | 402 | 1,572 | ||||||
Income from continuing operations before income taxes | 17,654 | 24,931 | ||||||
Provision for income taxes | 7,068 | 9,674 | ||||||
Income from continuing operations | 10,586 | 15,257 | ||||||
Loss from discontinued operations, net of tax | (38 | ) | (330 | ) | ||||
Net income | $ | 10,548 | $ | 14,927 | ||||
Earnings per common share — Basic: | ||||||||
Income from continuing operations | $ | 0.27 | $ | 0.37 | ||||
Loss from discontinued operations | — | (0.01 | ) | |||||
Net income | $ | 0.27 | $ | 0.37 | ||||
Earnings per common share — Diluted: | ||||||||
Income from continuing operations | $ | 0.27 | $ | 0.37 | ||||
Loss from discontinued operations | — | (0.01 | ) | |||||
Net income | $ | 0.27 | $ | 0.36 | ||||
Shares used in computing earnings per common share: | ||||||||
Basic | 39,321,662 | 40,718,872 | ||||||
Diluted | 39,421,590 | 41,174,497 | ||||||
Earnings per share amounts may not add due to rounding.
(1) | Includes stock-based compensation expense of $1.5 million and $2.1 million for the three months ended October 25, 2008 and October 27, 2007, respectively. |
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 | |||||||
Ended | Ended | |||||||
October 25, | October 27, | |||||||
2008 | 2007 | |||||||
(In 000’s, except per share amounts) | ||||||||
Item: | ||||||||
Write-off of deferred financing costs | $ | (551 | ) | $ | — | |||
GAAP income from continuing operations | $ | 10,586 | $ | 15,257 | ||||
Adjustment for item above, net of tax | 330 | — | ||||||
Non-GAAP income from continuing operations | $ | 10,916 | $ | 15,257 | ||||
Earnings per common share from continuing operations: | ||||||||
Basic earnings per share from continuing operations — GAAP | $ | 0.27 | $ | 0.37 | ||||
Adjustment for item above | 0.01 | — | ||||||
Basic earnings per share from continuing operations — Non-GAAP | $ | 0.28 | $ | 0.37 | ||||
Diluted earnings per share from continuing operations — GAAP | $ | 0.27 | $ | 0.37 | ||||
Adjustment for item above | 0.01 | — | ||||||
Diluted earnings per share from continuing operations- Non-GAAP | $ | 0.28 | $ | 0.37 | ||||
Shares used in computing GAAP and Non-GAAP earnings per common share from continuing operations and adjustment for item above: | ||||||||
Basic | 39,321,662 | 40,718,872 | ||||||
Diluted | 39,421,590 | 41,174,497 | ||||||