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 24, 2003
DYCOM ANNOUNCES FISCAL 2003 SECOND QUARTER RESULTS
AND PROVIDES GUIDANCE FOR THE REMAINDER OF FISCAL 2003
Palm Beach Gardens, Florida, February 24, 2003--Dycom Industries, Inc. (NYSE
Symbol: "DY") announced its results today for the second quarter ended January
25, 2003. The Company reported a net loss for the quarter ended January 25, 2003
of $1.1 million, or a loss of $0.02 per common share diluted, on total contract
revenues of $137.2 million as compared to net income of $5.0 million, or $0.12
per common share diluted, on total contract revenues of $138.3 million for the
corresponding period ended January 26, 2002. This represents a year over year
decrease of 0.8% in total contract revenues.
For the six months ended January 25, 2003 net income was $3.0 million, or $0.06
per common share diluted. For the six months ended January 26, 2002 net income
was $13.0 million, or $0.30 per common share diluted, excluding the cumulative
effect of a change in accounting principle due to the Company's adoption of SFAS
No. 142. Net loss for the six months ended January 26, 2002, inclusive of this
cumulative effect of $86.9 million net of tax, was $73.9 million, or a loss of
$1.72 per common share diluted. Total contract revenues for the six months ended
January 25, 2003 were $295.6 million compared to total contract revenues of
$306.1 million for the six months ended January 26, 2002. This represents a year
over year decrease of 3.4% in total contract revenues.
Dycom also announced its outlook for the remainder of fiscal 2003. The Company
currently expects revenue for the third quarter of fiscal 2003 to range from
$120.0 million to $135.0 million and diluted earnings per share to range from
$0.02 to $0.06. For the fourth quarter of fiscal 2003, the Company currently
expects revenue to range from $135.0 million to $150.0 million and diluted
earnings per share to range from $0.13 to $0.18.
A Tele-Conference call to review the Company's results and address its outlook
will be hosted at 9:00 a.m. (ET), Tuesday, February 25, 2003; Call 888-428-4479
(United States) or 651-291-5254 (International) and request "Dycom Earnings"
conference call. A live webcast of the conference call will be available at
http://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 at
http://www.dycomind.com until Thursday, March 27, 2003.
Dycom is a leading provider of engineering, construction, and maintenance
services to telecommunication providers throughout the United States.
Additionally, the Company provides similar services related to the installation
of integrated voice, data, and video local and wide area networks within office
buildings and similar structures. Dycom also provides
underground utility locating and mapping and electric utility construction
services.
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, continued
deterioration in our customers' financial condition, the adequacy of our
reserves and allowances for doubtful accounts, whether the carrying value of our
assets may be impaired, the anticipated outcome of 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 undertakes no obligation to update the information in this press
release.
---Tables Follow---
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
($ in 000's except EPS) Three Months Ended Six Months Ended
----------------------------- -----------------------------
January 25, January 26, January 25, January 26,
2003 2002 2003 2002
----------- ----------- ------------ -----------
Contract revenues earned $ 137,154 $ 138,282 $ 295,635 $ 306,097
Cost of earned revenues 111,358 106,721 234,938 236,945
General & administrative expenses 17,448 15,262 35,724 31,343
Depreciation & amortization 10,461 8,680 21,290 17,721
---------- ----------- --------- ---------
Total costs and expenses 139,267 130,663 291,952 286,009
---------- ----------- --------- ---------
Interest income, net 370 679 645 1,605
Other income, net 618 448 1,703 795
---------- ----------- --------- ---------
(Loss) income before income taxes (1,125) 8,746 6,031 22,488
Benefit (provision) for income taxes 14 (3,738) (3,027) (9,454)
---------- ----------- ---------- ---------
(Loss) income before cumulative effect of
change in accouting principle (1,111) 5,008 3,004 13,034
Cumulative effect of change in accounting
principle, net of tax (1) (86,929)
---------- ----------- ---------- ---------
Net (loss) income $ (1,111) $ 5,008 $ 3,004 $(73,895)
========== =========== =========== =========
(Loss) earnings per common share:
Basic (loss) earnings per share before cumulative
effect of change in accounting principle $ (0.02) $ 0.12 $ 0.06 $ 0.30
Cumulative effect of change in accounting principle (2.02)
---------- ----------- ---------- ---------
Basic (loss) earnings per share $ (0.02) $ 0.12 $ 0.06 $ (1.72)
========== =========== ========== =========
Diluted (loss) earnings per share before cumulative
effect of change in accounting principle $ (0.02) $ 0.12 $ 0.06 $ 0.30
Cumulative effect of change in accounting principle (2.02)
---------- ----------- ---------- ---------
Diluted (loss) earnings per share $ (0.02) $ 0.12 $ 0.06 $ (1.72)
========== =========== ========== =========
Shares used in computing (loss) earnings
per common share:
Basic 47,870 42,926 47,866 42,936
========== =========== ========== ========
Diluted 47,870 43,061 47,872 43,036
========== =========== ========== ========
(1) In the first quarter fiscal 2002, the Company adopted SFAS No. 142,
"Goodwill and Intangible Assets." SFAS No. 142 eliminates the amortization
of goodwill and instead requires that goodwill be tested for impairment.
Because we adopted these statements effective with the beginning of fiscal
2002, we do not have goodwill amortization in either year.