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 | February 23, 2010 |
DYCOM ANNOUNCES FISCAL 2010 SECOND QUARTER RESULTS
Palm Beach Gardens, Florida, February 23, 2010--Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 23, 2010. The Company reported:
| | · | contract revenues of $216.3 million for the quarter ended January 23, 2010, compared to $245.5 million for the quarter ended January 24, 2009, a decrease of 11.9%. Included in contract revenues for the quarter ended January 24, 2009 was approximately $3.3 million for storm restoration services. There was no storm restoration services during the fiscal 2010 quarter; and |
| | · | loss from continuing operations on a GAAP basis of $4.0 million, or $0.10 per common share diluted, for the quarter ended January 23, 2010, compared to a loss of $78.0 million, or $1.98 per common share diluted, for the quarter ended January 24, 2009. On a Non-GAAP basis, loss from continuing operations for the quarter ended January 24, 2009 was $1.7 million, or $0.04 per common share diluted. Non-GAAP loss from continuing operations excludes a pre-tax gain of approximately $1.3 million related to the buyback of $4.65 million aggregate principal amount of the Company’s senior subordinated notes due 2015 and a pre-tax goodwill impairment charge of $94.4 million during the quarter ended January 24, 2009. |
See the accompanying table which presents a reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP financial measures.
The Company also reported:
| | · | contract revenues of $475.4 million for the six months ended January 23, 2010, compared to $579.5 million for the six months ended January 24, 2009, a decrease of 18.0%. Included in contract revenues for the six months ended January 24, 2009 was approximately $18.4 million for storm restoration services. There was no storm restoration services during the fiscal 2010 six month period; |
| | · | loss from continuing operations on a GAAP basis of $0.4 million, or $0.01 per common share diluted, for the six months ended January 23, 2010, compared to a loss of $67.4 million, or $1.71 per common share diluted, for the six months ended January 24, 2009; and |
| | · | income from continuing operations on a Non-GAAP basis of $1.7 million, or $0.04 per common share diluted, for the six months ended January 23, 2010, compared to Non-GAAP income from continuing operations of $9.2 million, or $0.23 per common share diluted, for the six months ended January 24, 2009. |
Non-GAAP income from continuing operations for the six months ended January 23, 2010 excludes a $2.0 million pre-tax charge in cost of earned revenues for the pending settlement of a wage and hour class action claim and a $1.1 million non-cash charge to income tax expense for a valuation allowance against a deferred tax asset recorded during the first quarter of fiscal 2010. Non-GAAP income from continuing operations for the six months ended January 24, 2009 excludes a pre-tax gain of approximately $1.3 million related to the buyback of $4.65 million aggregate principal amount of the Company’s senior subordinated notes, a pre-tax goodwill impairment charge of $94.4 million, and a pre-tax write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company’s credit facility during the prior year.
See the accompanying table which presents 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 a.m. (ET), Wednesday, February 24, 2010; Call 800-288-8974 (United States) or 612-332-0430 (International) and request “Dycom Results”conference call. A live webcast of the conference call, along with a slide presentation, will be available at http://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 at http://www.dycomind.com until Friday, March 26, 2010.
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 2010 second quarter 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---
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
January 23, 2010 and July 25, 2009
Unaudited
| | | January 23, | | | July 25, | |
| | | 2010 | | | 2009 | |
| | | ($ in 000's) | |
| ASSETS | | | | | | |
| Current Assets: | | | | | | |
| Cash and equivalents | | $ | 135,928 | | | $ | 104,707 | |
| Accounts receivable, net | | | 90,786 | | | | 116,968 | |
| Costs and estimated earnings in excess of billings | | | 42,855 | | | | 67,111 | |
| Deferred tax assets, net | | | 13,425 | | | | 15,779 | |
| Income taxes receivable | | | 9,122 | | | | 7,016 | |
| Inventories | | | 10,814 | | | | 8,303 | |
| Other current assets | | | 13,516 | | | | 7,323 | |
| Total current assets | | | 316,446 | | | | 327,207 | |
| | | | | | | | | |
| Property and equipment, net | | | 142,559 | | | | 142,132 | |
| Goodwill | | | 157,851 | | | | 157,851 | |
| Intangible assets, net | | | 52,875 | | | | 56,056 | |
| Other | | | 10,078 | | | | 10,211 | |
| Total | | $ | 679,809 | | | $ | 693,457 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Current Liabilities: | | | | | | | | |
| Accounts payable | | $ | 23,980 | | | $ | 28,977 | |
| Current portion of debt | | | 348 | | | | 926 | |
| Billings in excess of costs and estimated earnings | | | 408 | | | | 151 | |
| Accrued insurance claims | | | 25,911 | | | | 27,386 | |
| Other accrued liabilities | | | 45,010 | | | | 52,590 | |
| Total current liabilities | | | 95,657 | | | | 110,030 | |
| | | | | | | | | |
| Long-term debt | | | 135,350 | | | | 135,377 | |
| Accrued insurance claims | | | 29,451 | | | | 29,759 | |
| Deferred tax liabilities, net non-current | | | 23,581 | | | | 22,910 | |
| Other liabilities | | | 4,752 | | | | 4,758 | |
| | | | | | | | | |
| Stockholders' Equity | | | 391,018 | | | | 390,623 | |
| | | | | | | | | |
| Total | | $ | 679,809 | | | $ | 693,457 | |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
| | | Three Months | | | Three Months | | | Six Months | | | Six Months | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | January 23, | | | January 24, | | | January 23, | | | January 24, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | (In 000's, except per share amounts) | |
| | | | | | | | | | | | | |
| Contract revenues | | $ | 216,331 | | | $ | 245,522 | | | $ | 475,447 | | | $ | 579,489 | |
| | | | | | | | | | | | | | | | | |
| Cost of earned revenues, excluding depreciation and amortization | | | 180,936 | | | | 205,860 | | | | 390,908 | | | | 474,506 | |
| General and administrative expenses (1) | | | 23,898 | | | | 21,535 | | | | 47,401 | | | | 49,074 | |
| Depreciation and amortization | | | 15,516 | | | | 16,817 | | | | 30,707 | | | | 33,429 | |
| Goodwill impairment charge | | | - | | | | 94,429 | | | | - | | | | 94,429 | |
| Total | | | 220,350 | | | | 338,641 | | | | 469,016 | | | | 651,438 | |
| | | | | | | | | | | | | | | | | |
| Interest income | | | 22 | | | | 40 | | | | 58 | | | | 174 | |
| Interest expense | | | (3,541 | ) | | | (4,099 | ) | | | (7,084 | ) | | | (8,151 | ) |
| Other income, net | | | 903 | | | | 1,832 | | | | 2,008 | | | | 2,234 | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations before income taxes | | | (6,635 | ) | | | (95,346 | ) | | | 1,413 | | | | (77,692 | ) |
| | | | | | | | | | | | | | | | | |
| Provision (benefit) for income taxes | | | (2,670 | ) | | | (17,393 | ) | | | 1,855 | | | | (10,324 | ) |
| | | | | | | | | | | | | | | | | |
| Loss from continuing operations | | | (3,965 | ) | | | (77,953 | ) | | | (442 | ) | | | (67,368 | ) |
| | | | | | | | | | | | | | | | | |
| Loss from discontinued operations, net of tax | | | - | | | | - | | | | - | | | | (37 | ) |
| | | | | | | | | | | | | | | | | |
| Net loss | | $ | (3,965 | ) | | $ | (77,953 | ) | | $ | (442 | ) | | $ | (67,405 | ) |
| | | | | | | | | | | | | | | | | |
| Loss per common share - Basic and Diluted: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Loss from continuing operations | | $ | (0.10 | ) | | $ | (1.98 | ) | | $ | (0.01 | ) | | $ | (1.71 | ) |
| Loss from discontinued operations | | | - | | | | - | | | | - | | | | - | |
| Net loss | | $ | (0.10 | ) | | $ | (1.98 | ) | | $ | (0.01 | ) | | $ | (1.71 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Shares used in computing loss per common share - Basic and Diluted | | | 39,069,364 | | | | 39,379,470 | | | | 39,029,822 | | | | 39,350,611 | |
(1) Includes stock-based compensation expense of $0.7 million and $1.7 million for the three and six months ended January 23, 2010, respectively, and $0.3 million and $1.9 million for the three and six months ended January 24, 2009, respectively.
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
| | | Three Months | | | Three Months | | | Six Months | | | Six Months | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | January 23, | | | January 24, | | | January 23, | | | January 24, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | (In 000's, except per share amounts) | |
| | | | | | | | | | | | | |
| Pre-Tax Reconciling Items: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Charge for pending wage and hour class action settlement | | $ | - | | | $ | - | | | $ | (2,000 | ) | | $ | - | |
| Goodwill impairment charge | | | - | | | | (94,429 | ) | | | - | | | | (94,429 | ) |
| Gain on debt extinguishment, net | | | - | | | | 1,300 | | | | - | | | | 1,300 | |
| Write-off of deferred financing costs | | | - | | | | - | | | | - | | | | (551 | ) |
| Total Pre-Tax Reconciling Items | | $ | - | | | $ | (93,129 | ) | | $ | (2,000 | ) | | $ | (93,680 | ) |
| Tax-effect of Pre-Tax Reconciling items | | | - | | | | 16,880 | | | | 923 | | | | 17,101 | |
| Other Reconciling Item: | | | | | | | | | | | | | | | | |
| Valuation allowance on deferred tax asset | | | - | | | | - | | | | (1,090 | ) | | | - | |
| Total Reconciling Items, net of tax | | $ | - | | | $ | (76,249 | ) | | $ | (2,167 | ) | | $ | (76,579 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| GAAP loss from continuing operations | | $ | (3,965 | ) | | $ | (77,953 | ) | | $ | (442 | ) | | $ | (67,368 | ) |
| Adjustment for Reconciling Items above, net of tax | | | - | | | | 76,249 | | | | 2,167 | | | | 76,579 | |
| Non-GAAP income (loss) from continuing operations | | $ | (3,965 | ) | | $ | (1,704 | ) | | $ | 1,725 | | | $ | 9,211 | |
| | | | | | | | | | | | | | | | | |
| Earnings (loss) per common share from continuing operations: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic loss per share from continuing operations - GAAP | | $ | (0.10 | ) | | $ | (1.98 | ) | | $ | (0.01 | ) | | $ | (1.71 | ) |
| Adjustment for Reconciling Items above, net of tax | | | - | | | | 1.94 | | | | 0.06 | | | | 1.95 | |
| Basic earnings (loss) per common share from continuing operations - Non-GAAP | | $ | (0.10 | ) | | $ | (0.04 | ) | | $ | 0.04 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | | |
| Diluted loss per share from continuing operations - GAAP | | $ | (0.10 | ) | | $ | (1.98 | ) | | $ | (0.01 | ) | | $ | (1.71 | ) |
| Adjustment for Reconciling Items above, net of tax | | | - | | | | 1.94 | | | | 0.06 | | | | 1.95 | |
| Diluted earnings (loss) per common share from continuing operations- Non-GAAP | | $ | (0.10 | ) | | $ | (0.04 | ) | | $ | 0.04 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling items above: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic | | | 39,069,364 | | | | 39,379,470 | | | | 39,029,822 | | | | 39,350,611 | |
| | | | | | | | | | | | | | | | | |
| Diluted | | | 39,069,364 | | | | 39,379,470 | | | | 39,029,822 | | | | 39,350,611 | |
| | | | | | | | | | | | | | | | | |
| Shares used in computing Non-GAAP earnings (loss) per common share from continuing operations: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic | | | 39,069,364 | | | | 39,379,470 | | | | 39,029,822 | | | | 39,350,611 | |
| | | | | | | | | | | | | | | | | |
| Diluted | | | 39,069,364 | | | | 39,379,470 | | | | 39,185,239 | | | | 39,430,966 | |
Earnings (loss) per share amounts may not add due to rounding.
