[Dycom Industries, Inc. logo and 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 28, 2005
DYCOM ANNOUNCES FISCAL 2005 SECOND QUARTER EARNINGS AND PROVIDES
GUIDANCE FOR THE NEXT TWO FISCAL QUARTERS
Palm Beach Gardens, Florida, February 28, 2005--Dycom Industries, Inc. (NYSE
Symbol: "DY") announced its results today for the second quarter ended January
29, 2005. The Company reported net income for the quarter ended January 29, 2005
of $7.4 million, or $0.15 per common share diluted, versus net income for the
quarter ended January 24, 2004 of $16.4 million, or $0.34 per common share
diluted. 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. Total contract revenues for the quarter ended January 29, 2005
were $224.5 million compared to total contract revenues of $196.4 million for
the quarter ended January 24, 2004, an increase of 14.3%.
For the six months ended January 29, 2005 net income was $23.0 million, or $0.47
per common share diluted. For the six months ended January 24, 2004 net income
was $30.4 million, or $0.62 per common share diluted. Included in the net income
for the six months ended January 24, 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 six months ended January 24,
2004 would have been $23.6 million, or $0.48 per common share diluted. Total
contract revenues for the six months ended January 29, 2005 were $487.7 million
compared to total contract revenues of $392.4 million for the six months ended
January 24, 2004, an increase of 24.3%.
Dycom also announced its outlook for the third and fourth quarters of fiscal
2005. The Company currently expects revenue for the third quarter of fiscal 2005
to range from $235 million to $250 million and diluted earnings per share to
range from $0.23 to $0.28. For the fourth quarter of fiscal 2005, the
Company currently expects revenue to range from $275 million to $295 million and
diluted earnings per share to range from $0.35 to $0.45.
A Tele-Conference call to review the Company's results and address its outlook
will be hosted at 9:00 a.m. (ET), Tuesday, March 1, 2005; Call 800-288-8975
(United States) or 612-332-0802 (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 31, 2005.
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---
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 29, 2005 and July 31, 2004
Unaudited
January 29, July 31,
($ in 000's) 2005 2004
------------ -----------
ASSETS
Current Assets:
Cash and equivalents $ 51,834 $ 31,383
Short-term investments 19,379 20,010
Accounts receivable, net 115,651 131,927
Costs and estimated earnings in excess of billings 54,226 58,175
Deferred tax assets, net 12,950 11,923
Income tax receivable 8,161 6,988
Inventories 6,121 5,353
Other current assets 16,186 10,275
------------ -----------
Total current assets 284,508 276,034
Property and equipment, net 110,531 100,353
Intangible assets, net 258,232 259,319
Deferred tax assets, net non-current - 5,561
Other 15,051 10,568
------------ -----------
Total $ 668,322 $ 651,835
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 26,195 $ 34,348
Notes and capital leases payable 3,882 4,163
Billings in excess of costs and estimated earnings 539 142
Accrued self-insured claims 26,254 22,297
Other accrued liabilities 37,079 41,528
------------ -----------
Total current liabilities 93,949 102,478
Notes and capital leases payable 5,078 7,094
Accrued self-insured claims 22,075 22,473
Deferred tax liabilities, net 28 -
Other liabilities 521 829
Stockholders' Equity 546,671 518,961
------------ -----------
Total $ 668,322 $ 651,835
============ ===========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Ended Six Months Ended
--------------------------- --------------------------
January 29, January 24, January 29, January 24,
(In 000's, except Earnings per share) 2005 2004 2005 2004
------------ ----------- ----------- -----------
Contract revenues earned $ 224,539 $ 196,369 $ 487,704 $ 392,390
Cost of earned revenues, excluding depreciation 181,986 151,224 390,656 298,274
General and administrative 18,931 18,862 36,914 36,370
Depreciation and amortization 12,800 11,009 24,065 20,342
------------ ----------- ----------- -----------
Total costs and expenses 213,717 181,095 451,635 354,986
------------ ----------- ----------- -----------
Interest income / (expense), net 191 (284) 146 34
Other income, net 1,183 583 1,777 1,428
Gain on sale of long term accounts receivable - 11,359 - 11,359
------------ ----------- ----------- -----------
Income before income taxes 12,196 26,932 37,992 50,225
Provision for income taxes 4,822 10,490 14,998 19,856
------------ ----------- ----------- -----------
Net income $ 7,374 $ 16,442 $ 22,994 $ 30,369
============ =========== =========== ===========
Earnings per common share:
Basic earnings per share $ 0.15 $ 0.34 $ 0.47 $ 0.63
============ =========== =========== ===========
Diluted earnings per share $ 0.15 $ 0.34 $ 0.47 $ 0.62
============ =========== =========== ===========
Shares used in computing earnings per common share:
Basic 48,689 48,285 48,647 48,157
============ =========== =========== ===========
Diluted 49,343 48,922 49,257 48,712
============ =========== =========== ===========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON GAAP INFORMATION
Unaudited
($ in 000's except Earnings per share) Three Months Ended Six Months Ended
--------------------------- --------------------------
January 29, January 24, January 24, January 24,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Item
Gain on sale of long term accounts receivable, net of
taxes of $4,544 $ - $ 6,815 $ - $ 6,815
GAAP net income $ 7,374 $ 16,442 $ 22,994 $ 30,369
Adjusted for items above - (6,815) - (6,815)
---------- --------- --------- ---------
Non GAAP net income $ 7,374 $ 9,627 $ 22,994 $ 23,554
========== ========= ========= =========
Earnings per common share:
Basic earnings per share - GAAP $ 0.15 $ 0.34 $ 0.47 $ 0.63
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 $ 0.15 $ 0.20 $ 0.47 $ 0.49
========== ========= ========= =========
Diluted earnings per share - GAAP $ 0.15 $ 0.34 $ 0.47 $ 0.62
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 $ 0.15 $ 0.20 $ 0.47 $ 0.48
========== ========= ========= =========
Shares used in computing earnings per common share:
Basic 48,689 48,285 48,647 48,157
========== ========= ========= =========
Diluted 49,343 48,922 49,257 48,712
========== ========= ========= =========