EXHIBIT 12.1
[DYCOM 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 February 23, 2004
DYCOM ANNOUNCES FISCAL 2004 SECOND QUARTER EARNINGS AND PROVIDES
GUIDANCE FOR THE NEXT TWO FISCAL QUARTERS
Palm Beach Gardens, Florida, February 23, 2004--Dycom Industries, Inc. (NYSE
Symbol: "DY") announced its results today for the second quarter ended January
24, 2004. The Company reported net income for the quarter ended January 24, 2004
of $16.4 million, or $0.34 per common share diluted, versus a net loss for the
quarter ended January 25, 2003 of $1.1 million, or $0.02 per common share
diluted. Total contract revenues for the quarter ended January 24, 2004 were
$196.4 million compared to total contract revenues of $137.2 million for the
quarter ended January 25, 2003, an increase of 43.1%. Included in the net income
for the second quarter of fiscal 2004 was a nonrecurring gain of $11.4 million
($6.8 million net of tax) related to the sale of long-term accounts receivable.
Excluding this gain, net income for the quarter ended January 24, 2004 would
have been $9.6 million, or $0.20 per common share diluted.
Dycom also announced that it has been notified by Verizon that it intends to
enter into a contract with Dycom pursuant to which Dycom will perform a portion
of Verizon's Fiber-to-the Premises (FTTP) buried plant installations. The
contract is subject to completion of final documentation.
Additionally, Dycom provided its outlook for the third and fourth quarters of
fiscal 2004. Dycom utilizes a 52/53 week fiscal year ending on the last Saturday
in July. As a result, the fourth quarter of fiscal 2004 will contain 14 weeks.
The Company currently expects revenue for the third quarter of fiscal 2004 to
range from $185 million to $200 million and diluted earnings per share to range
from $0.18 to $0.24. For the fourth quarter of fiscal 2004, the Company
currently expects revenue to range from $205 million to $225 million and diluted
earnings per share to range from $0.24 to $0.30.
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 24, 2004; Call 888-428-4478
(United States) or 612-288-0329 (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 25, 2004.
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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, the
adequacy of our insurance and other reserves and allowances for doubtful
accounts, whether the carrying value of our assets may be impaired, whether
recent acquisitions can be efficiently integrated into our existing operations,
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.
---Tables Follow---
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NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 24, 2004 and July 26, 2003
Unaudited
January 24, July 26,
($ in 000's) 2004 2003
------------ ----------
ASSETS
Current Assets:
Cash and equivalents $ 118,344 $ 129,852
Accounts receivable, net 126,645 121,980
Costs & estimated earnings in excess of billings 40,510 34,814
Deferred tax assets, net 11,595 8,779
Inventories 3,742 2,670
Income tax receivable 2,096 -
Other current assets 13,710 7,378
------------ ----------
Total current assets 316,642 305,473
Property and Equipment, net 98,168 86,894
Intangible assets, net 255,442 107,345
Deferred tax asset, net 12,313 7,167
Other 12,835 29,664
------------ ----------
Total $ 695,400 $ 536,543
============ ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 26,049 $ 22,735
Notes payable 4,850 10
Billings in excess of costs & estimated earnings 1,993 703
Accrued self-insurance claims 12,995 11,219
Customer advances - 2
Income taxes payable - 5,169
Other accrued liabilities 50,924 30,896
------------ ----------
Total current liabilities 96,811 70,734
Notes payable 93,157 20
Accrued self-insured claims 15,790 14,175
Other liabilities 931 1,274
Stockholders' Equity 488,711 450,340
------------ ----------
Total $ 695,400 $ 536,543
============ ==========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
($ in 000's except EPS) Three Months Ended Six Months Ended
----------------------------- ------------------------------
January 24, January 25, January 24, January 25,
2004 2003 2004 2003
---------- ---------- ---------- -----------
Contract revenues earned $ 196,369 $ 137,154 $ 392,390 $ 295,635
Cost of earned revenues 151,224 111,358 298,274 234,938
General & administrative expenses 18,862 17,448 36,370 35,724
Depreciation & amortization 11,009 10,461 20,342 21,290
---------- ---------- ---------- -----------
Total costs and expenses 181,095 139,267 354,986 291,952
---------- ---------- ---------- -----------
Interest (expense)/income, net (284) 370 34 645
Other income, net 583 618 1,428 1,703
Gain on sale of long term Accounts Receivable 11,359 - 11,359 -
---------- ---------- ---------- -----------
Income (loss) before income taxes 26,932 (1,125) 50,225 6,031
Provision (benefit) for income taxes 10,490 (14) 19,856 3,027
---------- ---------- ---------- -----------
Net (loss) income $ 16,442 $ (1,111) $ 30,369 $ 3,004
========== ========== ========== ===========
Earnings (loss) per common share:
Basic earnings (loss) per share $ 0.34 $ (0.02) $ 0.63 $ 0.06
========== ========== ========== ===========
Diluted earnings (loss) per share $ 0.34 $ (0.02) $ 0.62 $ 0.06
========== ========== ========== ===========
Shares used in computing earnings (loss)
per common share:
Basic 48,285 47,870 48,157 47,866
========== ========== ========== ===========
Diluted 48,922 47,870 48,712 47,872
========== ========== ========== ===========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON GAAP INFORMATION
Unaudited
($ in 000's except EPS) Three Months Ended Six Months Ended
------------------------------ -----------------------------
January 24, January 25, January 24, January 25,
2004 2003 2004 2003
------------- ------------ ------------ ------------
Item
Gain on sale of long term Accounts
Receivable, net of taxes of $4,544 $ 6,815 $ - $ 6,815 $ -
GAAP net income (loss) $ 16,442 $ (1,111) $ 30,369 $ 3,004
Adjusted for items above (6,815) - (6,815) -
------------- ------------ ------------ ------------
Non GAAP net income $ 9,627 $ (1,111) $ 23,554 $ 3,004
============= ============ ============ ============
Earnings (loss) per common share:
Basic earnings per share - GAAP $ 0.34 $ (0.02) $ 0.63 $ 0.06
Basic earnings per share - Adjustment
for gain on sale of long term
Accounts Receivable, net of taxes of $4,544 (0.14) - (0.14) -
------------- ------------ ------------ ------------
Basic earnings per share - Non GAAP $ 0.20 $ (0.02) $ 0.49 $ 0.06
============= ============ ============ ============
Diluted earnings per share - GAAP $ 0.34 $ (0.02) $ 0.62 $ 0.06
Diluted earnings per share - Adjustment for
gain on sale of long term
Accounts Receivable, net of taxes of $4,544 (0.14) - (0.14) -
------------- ------------ ------------ ------------
Diluted earnings per share - Non GAAP $ 0.20 $ (0.02) $ 0.48 $ 0.06
============= ============ ============ ============
Shares used in computing earnings (loss)
per common share:
Basic 48,285 47,870 48,157 47,866
============= ============ ============ ============
Diluted 48,922 47,870 48,712 47,872
============= ============ ============ ============