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 August 25, 2003
DYCOM ANNOUNCES FISCAL 2003 FOURTH QUARTER EARNINGS AND PROVIDES
GUIDANCE FOR THE NEXT TWO FISCAL QUARTERS
Palm Beach Gardens, Florida, August 25, 2003--Dycom Industries, Inc. (NYSE
Symbol: "DY") announced its results today for the fourth quarter ended July 26,
2003. The Company reported net income for the quarter ended July 26, 2003 of
$11.4 million, or $0.24 per common share diluted, on total contract revenues of
$182.9 million versus contract revenues of $148.2 million for the quarter ended
July 27, 2002. This represents a year over year increase of 23.4% in total
contract revenues. On a generally accepted accounting principles (GAAP) basis,
Dycom's reported net loss for the quarter ended July 27, 2002 was $56.8 million,
or a loss of $1.19 per common share diluted. Included in this loss was an after
tax increase in our allowance for doubtful accounts of $12.1 million and an
after tax impairment charge of $47.8 million related to the write-down of
goodwill and other intangible assets. These charges resulted from customer
difficulties and bankruptcies. The total effect of these charges was an
after tax charge of $59.9 million, or $1.25 per common share diluted. Excluding
these charges, net income for the quarter ended July 27, 2002 would have been
$3.0 million, or $0.06 per common share diluted.
For the year ended July 26, 2003 net income was $17.1 million, or $0.36 per
common share diluted. On a generally accepted accounting principles (GAAP)
basis, Dycom's reported net loss for the year ended July 27, 2002 was $123.0
million, or a loss of $2.73 per common share. Included in this loss was an after
tax increase in our allowance for doubtful accounts of $12.1 million and an
after tax impairment charge of $47.8 million related to the write-down of
goodwill and other intangible assets. Each of these charges resulted from
customer difficulties and bankruptcies. This loss also included an after tax
charge of $86.9 million, or $1.93 per common share diluted, for the cumulative
effect of the adoption of the accounting standard for goodwill. The total after
tax effect of these charges was $146.8 million, or $3.26 per common share
diluted. Excluding these charges, net income for the year ended July 27, 2002
would have been $23.8 million, or $0.53 per common share diluted.
In evaluating the operating performance of its business for the three and twelve
month periods ended July 27, 2002, Dycom's management excluded certain 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. Please
see attached table for reconciliation of these financial measures to GAAP.
Dycom also announced its outlook for the remainder of the first and second
quarter of fiscal 2004. The Company currently expects revenue for the first
quarter of fiscal 2004 to range from $165.0 million to $185.0 million and
diluted
earnings per share to range from $0.22 to $0.27. For the second quarter of
fiscal 2004, the Company currently expects revenue to range from $135.0 million
to $150.0 million and diluted earnings per share to range from $0.12 to $0.16.
A Tele-Conference call to review the Company's results and address its outlook
will be hosted at 9:00 a.m. (ET), Tuesday, August 26, 2003; Call 800-450-0788
(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, September 25, 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
July 26, 2003 and July 27, 2002
July 26, July 27,
($ in 000's) 2003 2002
----------- -----------
ASSETS
Current Assets:
Cash and equivalents $ 129,852 $ 116,052
Accounts receivable, net 121,980 86,443
Costs & estimated earnings in excess of billings 34,814 33,349
Deferred tax assets, net 8,779 8,681
Income tax receivable - 460
Inventories 2,670 5,643
Other current assets 7,378 6,108
----------- -----------
Total current assets 305,473 256,736
Property and Equipment, net 86,894 110,452
Intangible assets, net 107,345 107,743
Deferred tax asset, net 7,167 13,042
Other 29,664 26,580
----------- -----------
Total $ 536,543 $ 514,553
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 22,735 $ 26,611
Notes payable 10 79
Billings in excess of costs & estimated earnings 703 354
Accrued self-insurance claims 11,219 8,463
Customer advances 2 5,013
Income taxes payable 5,169 -
Other accrued liabilities 30,896 30,031
----------- -----------
Total current liabilities 70,734 70,551
Notes payable 20 30
Accrued self-insured claims 14,175 10,814
Other liabilities 1,274 1,861
Stockholders' Equity 450,340 431,297
----------- -----------
Total $ 536,543 $ 514,553
=========== ===========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in 000's except EPS) Three Months Ended Year Ended
---------------------------- ------------------------------
July 26, July 27, July 26, July 27,
2003 2002 2003 2002
---------- ---------- ---------- ------------
Contract revenues earned $ 182,882 $ 148,172 $ 618,183 $ 624,021
Cost of earned revenues 138,673 115,008 482,877 478,971
General & administrative expenses 15,933 17,039 68,774 67,446
Bad debt expense 630 20,595 1,285 21,550
Depreciation & amortization 8,898 10,914 39,073 38,844
Impairment charge - 47,880 - 47,880
---------- ---------- ---------- ------------
Total costs and expenses 164,134 211,436 592,009 654,691
---------- ---------- ---------- ------------
Interest income, net 310 509 1,300 2,620
Other income, net 632 87 2,981 1,460
---------- ---------- ---------- ------------
Income (loss) before income taxes 19,690 (62,668) 30,455 (26,590)
Provision (benefit) for income taxes 8,328 (5,824) 13,306 9,508
---------- ---------- ---------- ------------
Income (loss) before cumulative effect of
change in accouting principle 11,362 (56,844) 17,149 (36,098)
Cumulative effect of change in accounting
principle, net of tax (1) - - - (86,929)
---------- ---------- ---------- ------------
Net income (loss) $ 11,362 $ (56,844) $ 17,149 $ (123,027)
========== ========== ========== ============
Earnings (loss) per common share:
Basic earnings (loss) per share before cumulative
effect of change in accounting principle $ 0.24 $ (1.19) $ 0.36 $ (0.80)
Cumulative effect of change in accounting principle - - - (1.93)
---------- ---------- ---------- ------------
Basic earnings (loss) per share $ 0.24 $ (1.19) $ 0.36 $ (2.73)
========== ========== ========== ============
Diluted earnings (loss) per share before cumulative
effect of change in accounting principle $ 0.24 $ (1.19) $ 0.36 $ (0.80)
Cumulative effect of change in accounting principle - - - (1.93)
---------- ---------- ---------- ------------
Diluted earnings (loss) per share $ 0.24 $ (1.19) $ 0.36 $ (2.73)
========== ========== ========== ============
Shares used in computing earnings (loss)
per common share:
Basic 47,918 47,829 47,881 45,049
========== ========== ========== ============
Diluted (2) 48,042 47,829 47,887 45,049
========== ========== ========== ============
(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.
(2) For the three months and twelve months ended July 27, 2002, the total
number of stock options excluded because their effect would have been
anti-dilutive was 29,420 and 69,649, respectively.
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF FISCAL 2002 GAAP TO NON-GAAP INFORMATION
($ in 000's except EPS) Three Months Year
Ended Ended
July 27, July 27,
2002 2002
------------ ----------
Item
Write-down of goodwill and other intangible assets, net of income taxes $ (47,751) $ (47,751)
Increase in allowance for doubtful accounts, net of income taxes (12,130) (12,130)
Charge for the cumulative effect of a change in accounting
principle, net of $12,117 income tax benefit - (86,929)
--------- ----------
Total adjustments $ (59,881) $ (146,810)
========= ==========
GAAP net loss $ (56,844) $ (123,027)
Adjusted for items described above 59,881 146,810
--------- ----------
Non-GAAP net income $ 3,037 $ 23,783
========= ==========
Earnings (loss) per common share:
Basic loss per share - GAAP $ (1.19) $ (2.73)
Basic earnings per share - Adjustments for items described above 1.25 3.26
--------- ----------
Basic earnings per share - Non-GAAP $ 0.06 $ 0.53
========= ==========
Diluted loss per share - GAAP $ (1.19) $ (2.73)
Diluted earnings per share - Adjustments for items described above 1.25 3.26
--------- ----------
Diluted earnings per share - Non-GAAP $ 0.06 $ 0.53
========= ==========
Shares used in computing (loss) earnings per common share:
Basic [a] 47,829 45,049
========= ==========
Diluted [a] 47,858 45,119
========= ==========
[a] Common stock equivalents related to stock options were excluded from
diluted loss per share calculations if their effect would be anti-dilutive.