Exhibit 99.1
NEWS RELEASE
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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 19, 2009 |
DYCOM ANNOUNCES FISCAL 2009 THIRD QUARTER RESULTS
Palm Beach Gardens, Florida, May 19, 2009—Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 25, 2009. The Company reported:
| | • | | contract revenues from continuing operations of $257.7 million for the quarter ended April 25, 2009, compared to $293.4 million for the quarter ended April 26, 2008, a decrease of 12.2%; |
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| | • | | income from continuing operations on a GAAP basis of $7.6 million, or $0.19 per common share diluted, for the quarter ended April 25, 2009, compared to $7.7 million, or $0.19 per common share diluted, for the quarter ended April 26, 2008; and |
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| | • | | income from continuing operations on a non-GAAP basis of $5.0 million, or $0.13 per common share diluted, for the quarter ended April 25, 2009, compared to $5.5 million, or $0.14 per common share diluted, for the quarter ended April 26, 2008. |
Non-GAAP income from continuing operations for the quarter ended April 25, 2009 excludes a pre-tax gain of $1.7 million related to the buyback of $10.0 million principal amount of the Company’s senior subordinated notes due 2015, and a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax liabilities no longer required. For the quarter ended April 26, 2008, non-GAAP income from continuing operations excludes a reduction of $1.7 million in cost of earned revenues related to the reversal of pre-acquisition payroll related accruals, and a reduction of interest and income tax expenses of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax liabilities no longer required. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
The Company also reported:
| | • | | contract revenues from continuing operations of $837.2 million for the nine months ended April 25, 2009 compared to $907.9 million for the nine months ended April 26, 2008, a decrease of 7.8%; |
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| | • | | loss from continuing operations on a GAAP basis of ($59.8) million, or ($1.52) per common share diluted, for the nine months ended April 25, 2009, compared to income from continuing operations of $19.8 million, or $0.48 per common share diluted, for the nine months ended April 26, 2008; and |
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| | • | | income from continuing operations on a non-GAAP basis of $14.2 million, or $0.36 per common share diluted, for the nine months ended April 25, 2009, compared to $22.3 million, or $0.54 per common share diluted, for the nine months ended April 26, 2008. |
Non-GAAP income from continuing operations for the nine months ended April 25, 2009 excludes a pre-tax gain of approximately $3.0 million related to the buyback of $14.65 million principal amount of the Company’s senior subordinated notes due 2015, a goodwill impairment charge of $94.4 million, the write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company’s credit facility, and a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax liabilities no longer required. For the nine months ended April 26, 2008, non-GAAP income from continuing operations excludes a $7.6 million charge in cost of earned revenues related to a wage and hour class action settlement with respect to three of the Company’s subsidiaries, a reduction of $1.7 million in cost of earned revenues related to the reversal of pre-acquisition payroll related accruals, and a reduction of interest and income tax expenses of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax liabilities no longer required. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
A Tele-Conference call to review the Company’s results will be hosted at 9:00 a.m. (ET), Wednesday, May 20, 2009; Call 800-230-1074 (United States) or 612-288-0337 (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 19, 2009.
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 2009 third quarter and nine-month results are preliminary and are unaudited. This press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. 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
April 25, 2009 and July 26, 2008
Unaudited
| | | | | | | | | |
| | | April 25, | | | July 26, | |
| | | 2009 | | | 2008 | |
| | | ($ in 000’s) | |
| ASSETS | | | | | | | | |
| Current Assets: | | | | | | | | |
| Cash and equivalents | | $ | 78,762 | | | $ | 22,068 | |
| Accounts receivable, net | | | 108,239 | | | | 146,420 | |
| Costs and estimated earnings in excess of billings | | | 63,853 | | | | 94,270 | |
| Deferred tax assets, net | | | 15,695 | | | | 19,347 | |
| Income taxes receivable | | | 11,557 | | | | 6,014 | |
| Inventories | | | 9,153 | | | | 8,994 | |
| Other current assets | | | 10,018 | | | | 7,301 | |
| Current assets of discontinued operations | | | 164 | | | | 667 | |
| | | | | | | |
| Total current assets | | | 297,441 | | | | 305,081 | |
| | | | | | | | | |
| Property and equipment, net | | | 148,186 | | | | 170,479 | |
| Goodwill | | | 157,851 | | | | 252,374 | |
| Intangible assets, net | | | 57,695 | | | | 62,860 | |
| Other | | | 10,711 | | | | 10,478 | |
| | | | | | | |
| Total | | $ | 671,884 | | | $ | 801,272 | |
| | | | | | | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| Current Liabilities: | | | | | | | | |
| Accounts payable | | $ | 24,542 | | | $ | 29,835 | |
| Current portion of debt | | | 1,394 | | | | 2,306 | |
| Billings in excess of costs and estimated earnings | | | 512 | | | | 483 | |
| Accrued insurance claims | | | 28,743 | | | | 29,834 | |
| Other accrued liabilities | | | 41,360 | | | | 66,275 | |
| Current liabilities of discontinued operations | | | 537 | | | | 2,731 | |
| | | | | | | |
| Total current liabilities | | | 97,088 | | | | 131,464 | |
| | | | | | | | | |
| Long-term debt | | | 135,487 | | | | 151,049 | |
| Accrued insurance claims | | | 30,463 | | | | 37,175 | |
| Deferred tax liabilities, net non-current | | | 21,595 | | | | 31,750 | |
| Other liabilities | | | 4,106 | | | | 5,314 | |
| Non-current liabilities of discontinued operations | | | 388 | | | | 427 | |
| | | | | | | | | |
| Stockholders’ Equity | | | 382,757 | | | | 444,093 | |
| | | | | | | |
| | | | | | | | | |
| Total | | $ | 671,884 | | | $ | 801,272 | |
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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 25, | | | April 26, | | | April 25, | | | April 26, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in 000’s, except per share amounts) | |
| | | | | | | | | | | | | | | | | |
| Contract revenues | | $ | 257,719 | | | $ | 293,440 | | | $ | 837,209 | | | $ | 907,869 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cost of earned revenues, excluding depreciation and amortization | | | 206,733 | | | | 239,598 | | | | 681,239 | | | | 748,816 | |
| General and administrative expenses (1) | | | 24,276 | | | | 24,969 | | | | 73,350 | | | | 72,892 | |
| Depreciation and amortization | | | 16,163 | | | | 17,301 | | | | 49,592 | | | | 50,258 | |
| Goodwill impairment charge | | | — | | | | — | | | | 94,429 | | | | — | |
| | | | | | | | | | | | | |
| Total | | | 247,172 | | | | 281,868 | | | | 898,610 | | | | 871,966 | |
| | | | | | | | | | | | | | | | | |
| Interest income | | | 60 | | | | 238 | | | | 234 | | | | 619 | |
| Interest expense | | | (3,162 | ) | | | (3,110 | ) | | | (11,313 | ) | | | (10,231 | ) |
| Other income, net | | | 3,566 | | | | 2,670 | | | | 5,799 | | | | 5,040 | |
| | | | | | | | | | | | | |
| Income (loss) from continuing operations before income taxes | | | 11,011 | | | | 11,370 | | | | (66,681 | ) | | | 31,331 | |
| | | | | | | | | | | | | | | | | |
| Provision (benefit) for income taxes | | | 3,442 | | | | 3,677 | | | | (6,882 | ) | | | 11,515 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | | 7,569 | | | | 7,693 | | | | (59,799 | ) | | | 19,816 | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from discontinued operations, net of tax | | | 28 | | | | (807 | ) | | | (9 | ) | | | (1,228 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 7,597 | | | $ | 6,886 | | | $ | (59,808 | ) | | $ | 18,588 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Earnings (loss) per common share — Basic: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | 0.19 | | | $ | 0.19 | | | $ | (1.52 | ) | | $ | 0.49 | |
| Income (loss) from discontinued operations | | | — | | | | (0.02 | ) | | | — | | | | (0.03 | ) |
| | | | | | | | | | | | | |
| Net income (loss) | | $ | 0.19 | | | $ | 0.17 | | | $ | (1.52 | ) | | $ | 0.46 | |
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| | | | | | | | | | | | | | | | | |
| Earnings (loss) per common share — Diluted: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | 0.19 | | | $ | 0.19 | | | $ | (1.52 | ) | | $ | 0.48 | |
| Income (loss) from discontinued operations | | | — | | | | (0.02 | ) | | | — | | | | (0.03 | ) |
| | | | | | | | | | | | | |
| Net income (loss) | | $ | 0.19 | | | $ | 0.17 | | | $ | (1.52 | ) | | $ | 0.45 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Shares used in computing earnings (loss) per common share: | | | | | | | | | | | | | | | | |
| Basic | | | 39,330,308 | | | | 40,436,212 | | | | 39,343,834 | | | | 40,651,236 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted | | | 39,346,102 | | | | 40,486,765 | | | | 39,343,834 | | | | 40,865,349 | |
| | | | | | | | | | | | | |
| | |
| (1) | | Includes stock-based compensation expense of $0.9 million and $2.8 million for the three and nine months ended April 25, 2009, respectively, and $1.4 million and $4.6 million for the three and nine months ended April 26, 2008, respectively. |
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
| | | | | | | | | | | | | | | | | |
| | | Three Months | | | Three Months | | | Nine Months | | | Nine Months | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | April 25, | | | April 26, | | | April 25, | | | April 26, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | ($ in 000’s, except per share amounts) | |
| Reconciling Items (a): | | | | | | | | | | | | | | | | |
| Items decreasing Income (loss) from continuing operations: | | | | | | | | | | | | | | | | |
| Goodwill impairment charge | | $ | — | | | $ | — | | | $ | (94,429 | ) | | $ | — | |
| Charge for wage and hour class action settlement | | $ | — | | | $ | — | | | $ | — | | | $ | (7,591 | ) |
| Write-off of deferred financing costs | | $ | — | | | $ | — | | | $ | (551 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | |
| Items increasing Income (loss) from continuing operations: | | | | | | | | | | | | | | | | |
| Gain on debt extinguishment, net | | $ | 1,727 | | | $ | — | | | $ | 3,027 | | | $ | — | |
| Reversal of interest expense on certain income tax liabilities | | $ | 268 | | | $ | 339 | | | $ | 268 | | | $ | 339 | |
| Reversal of certain income tax liabilities | | $ | 1,358 | | | $ | 858 | | | $ | 1,358 | | | $ | 858 | |
| Reversal of pre-acquisition payroll related accruals | | $ | — | | | $ | 1,680 | | | $ | — | | | $ | 1,680 | |
| (a) Reconciling Items reported above are on a pre-tax basis, except for “Reversal of certain income tax liabilities.” |
| | | | | | | | | | | | | | | | | |
| GAAP income (loss) from continuing operations | | $ | 7,569 | | | $ | 7,693 | | | $ | (59,799 | ) | | $ | 19,816 | |
| Adjustment for Reconciling Items above, net of tax | | | (2,560 | ) | | | (2,144 | ) | | | 74,019 | | | | 2,451 | |
| | | | | | | | | | | | | |
| Non-GAAP income from continuing operations | | $ | 5,009 | | | $ | 5,549 | | | $ | 14,220 | | | $ | 22,267 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Earnings (loss) per common share from continuing operations: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic earnings (loss) per common share from continuing operations — GAAP | | $ | 0.19 | | | $ | 0.19 | | | $ | (1.52 | ) | | $ | 0.49 | |
| Adjustment for Reconciling Items above, net of tax | | | (0.07 | ) | | | (0.05 | ) | | | 1.88 | | | | 0.06 | |
| | | | | | | | | | | | | |
| Basic earnings per common share from continuing operations — Non-GAAP | | $ | 0.13 | | | $ | 0.14 | | | $ | 0.36 | | | $ | 0.55 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted earnings (loss) per common share from continuing operations — GAAP | | $ | 0.19 | | | $ | 0.19 | | | $ | (1.52 | ) | | $ | 0.48 | |
| Adjustment for Reconciling Items above, net of tax | | | (0.07 | ) | | | (0.05 | ) | | | 1.88 | | | | 0.06 | |
| | | | | | | | | | | | | |
| Diluted earnings per common share from continuing operations- Non-GAAP | | $ | 0.13 | | | $ | 0.14 | | | $ | 0.36 | | | $ | 0.54 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling Items above: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic | | | 39,330,308 | | | | 40,436,212 | | | | 39,343,834 | | | | 40,651,236 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted | | | 39,346,102 | | | | 40,486,765 | | | | 39,343,834 | | | | 40,865,349 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Shares used in computing Non-GAAP earnings per common share from continuing operations: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic | | | 39,330,308 | | | | 40,436,212 | | | | 39,343,834 | | | | 40,651,236 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted | | | 39,346,102 | | | | 40,486,765 | | | | 39,393,923 | | | | 40,901,585 | |
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Earnings per share amounts may not add due to rounding.
