Exhibit 99.2
[Dycom Industries, Inc. logo]
[letterhead]
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 June 2, 2003
DYCOM ANNOUNCES FISCAL 2003 THIRD QUARTER RESULTS AND PROVIDES
GUIDANCE FOR THE NEXT TWO FISCAL QUARTERS
Palm Beach Gardens, Florida, June 2, 2003--Dycom Industries, Inc. (NYSE Symbol:
"DY") announced its results today for the third quarter ended April 26, 2003.
The Company reported net income for the quarter ended April 26, 2003 of $2.8
million, or $0.06 per common share diluted, on total contract revenues of $139.7
million versus contract revenues of $169.8 million for the quarter ended April
27, 2002. This represents a year over year decrease of 17.7% in total contract
revenues. On a generally accepted accounting principles (GAAP) basis, Dycom's
reported net income for the quarter ended April 27, 2002 was $7.7 million, or
$0.17 per common share. Earnings per common share for the period ending April
27, 2002, excluding a nonrecurring gain of $0.02 per common share due to the
settlement of a federal employment tax issue relating to prior years, was $0.15
per common share.
For the nine months ended April 26, 2003 net income was $5.8 million, or $0.12
per common share. On a generally accepted accounting principles (GAAP) basis,
Dycom's reported net loss for the nine months ended April 27, 2002 was $66.2
million, or $1.50 per common share. Net income for the nine-month period ending
April 27, 2002, excluding a nonrecurring gain of $0.02 per common share due to
the settlement of a federal employment tax issue relating to prior years and the
$1.97 per common share charge for the cumulative effect of the adoption of SFAS
No.142 relating to the accounting for goodwill and other intangible assets, was
$19.8 million, or $0.45 per common share.
In evaluating the operating performance of its business for the three and nine
month periods ended April 27, 2002, Dycom's management excluded certain gains
and charges that are required by GAAP. The Company believes that presentation of
net income and earnings per share excluding these items is beneficial to
investors due to their unusual nature. Please see attached table for
reconciliation of these financial measures to GAAP.
Dycom also announced its outlook for the remainder of fiscal 2003 and the first
quarter of fiscal 2004. The Company currently expects revenue for the fourth
quarter of fiscal 2003 to range from $150.0 million to $165.0 million and
earnings per share to range from $0.15 to $0.20. For the first quarter of fiscal
2004, the Company currently expects revenue to range from $150.0 million to
$165.0 million and earnings per share to range from $0.16 to $0.21.
A Tele-Conference call to review the Company's results and address its outlook
will be hosted at 9:00 a.m. (ET), Tuesday, June 3, 2003; Call 888-273-9890
(United States) or 612-332-0228 (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, July 3, 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 BALANCE SHEETS
April 26, 2003 and July 27, 2002
Unaudited
April 26, July 27,
($ in 000's) 2003 2002
--------- --------
ASSETS
Current Assets:
Cash and equivalents $118,032 $116,052
Accounts receivable, net 105,289 86,443
Costs & estimated earnings in excess of billings 30,986 33,349
Deferred tax assets, net 7,908 8,681
Income tax receivable 7,297 460
Inventories 2,766 5,643
Other current assets 7,599 6,108
-------- --------
Total current assets 279,877 256,736
Property and Equipment, net 91,753 110,452
Intangible assets, net 107,413 107,743
Deferred tax asset, net 6,693 13,042
Other 30,568 26,580
-------- --------
Total $516,304 $514,553
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 25,706 $ 26,611
Notes payable 14 79
Billings in excess of costs & estimated earnings 1,108 354
Accrued self-insurance claims 9,561 8,463
Customer advances 85 5,013
Other accrued liabilities 28,803 30,031
-------- --------
Total current liabilities 65,277 70,551
Notes payable 23 30
Accrued self-insured claims 12,034 10,814
Other liabilities 1,617 1,861
Stockholders' Equity 437,353 431,297
-------- --------
Total $516,304 $514,553
======== ========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
($ in 000's except EPS) Three Months Ended Nine Months Ended
---------------------- -----------------------
April 26, April 27, April 26, April 27,
2003 2002 2003 2002
--------- --------- --------- ----------
Contract revenues earned $ 139,666 $ 169,752 $ 435,300 $ 475,849
Cost of earned revenues 109,266 127,018 344,204 363,963
General & administrative expenses 17,772 20,019 53,496 51,362
Depreciation & amortization 8,885 10,208 30,175 27,930
--------- --------- --------- ---------
Total costs and expenses 135,923 157,245 427,875 443,255
--------- --------- --------- ---------
Interest income, net 345 505 991 2,111
Other income, net 646 578 2,349 1,373
--------- --------- --------- ---------
Income before income taxes 4,734 13,590 10,765 36,078
Provision for income taxes 1,950 5,878 4,977 15,332
--------- --------- --------- ---------
Income before cumulative effect of
change in accounting principle 2,784 7,712 5,788 20,746
Cumulative effect of change in accounting
principle, net of tax (1)
-- -- -- (86,929)
--------- --------- --------- ---------
Net income (loss) $ 2,784 $ 7,712 $ 5,788 $ (66,183)
========= ========= ========= =========
Earnings (loss) per common share:
Basic earnings per share before cumulative
effect of change in accounting principle $ 0.06 $ 0.17 $ 0.12 $ 0.47
Cumulative effect of change in accounting
principle -- -- -- (1.97)
--------- --------- --------- ---------
Basic earnings (loss) per share $ 0.06 $ 0.17 $ 0.12 $ (1.50)
========= ========= ========= =========
Diluted earnings per share before cumulative
effect of change in accounting principle $ 0.06 $ 0.17 $ 0.12 $ 0.47
Cumulative effect of change in accounting
principle -- -- -- (1.97)
--------- --------- --------- ---------
Diluted earnings (loss) per share $ 0.06 $ 0.17 $ 0.12 $ (1.50)
========= ========= ========= =========
Shares used in computing earnings (loss)
per common share:
Basic 47,872 46,472 47,868 44,115
========= ========= ========= =========
Diluted 47,873 46,601 47,871 44,237
========= ========= ========= =========
(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.
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON GAAP INFORMATION
Unaudited
($ in 000's except EPS) Three Months Ended Nine Months Ended
---------------------- -----------------------
April 26, April 27, April 26, April 27,
2003 2002 2003 2002
-------- -------- --------- ---------
Item
Gain on employment tax settlement $ - $ 1,585 $ - $ 1,585
Income tax on gain (686) (686)
Charge for the cumulative effect of a change
in accounting principle, net of $12,117
income tax benefit - - - (86,929)
-------- -------- --------- ---------
Total adjustments $ - $ 899 $ - $ (86,030)
======== ======== ========= =========
GAAP net income (loss) $ 2,784 $ 7,712 $ 5,788 $ (66,183)
Adjusted for items above - (899) - 86,030
-------- -------- --------- ---------
Non GAAP net income $ 2,784 $ 6,813 $ 5,788 $ 19,847
======== ======== ========= =========
Earnings (loss) per common share:
Basic earnings per share - GAAP $ 0.06 $ 0.17 $ 0.12 $ (1.50)
Basic earnings per share - Adjustments - (0.02) - 1.95
-------- -------- --------- ---------
Basic earnings per share - Non GAAP $ 0.06 $ 0.15 $ 0.12 $ 0.45
======== ======== ========= =========
Diluted earnings per share - GAAP $ 0.06 $ 0.17 $ 0.12 $ (1.50)
Diluted earnings per share - Adjustments - (0.02) - 1.95
-------- -------- --------- ---------
Diluted earnings per share - Non GAAP $ 0.06 $ 0.15 $ 0.12 $ 0.45
======== ======== ========= =========
Shares used in computing earnings (loss)
per common share:
Basic 47,872 46,472 47,868 44,115
======== ======== ========= =========
Diluted 47,873 46,601 47,871 44,237
======== ======== ========= =========