Dycom Industries, Inc. Announces Fiscal 2012 Fourth Quarter And Annual Results

PALM BEACH GARDENS, Fla., Aug. 28, 2012 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter and fiscal year ended July 28, 2012. 

The Company reported:

  • Contract revenues of $318.0 million for the quarter ended July 28, 2012, compared to $303.7 million for the quarter ended July 30, 2011, an increase of 4.7%. Included in contract revenues for the quarter ended July 28, 2012 and July 30, 2011 was approximately $2.3 million and $14.1 million for storm restoration services, respectively.  Excluding storm restoration revenues in each period, revenues increased 9.0%, or $26.1 million;
  • Adjusted EBITDA (Non-GAAP) of $40.5 million for the quarter ended July 28, 2012, compared to $39.9 million for the quarter ended July 30, 2011; and
  • Net income of $13.3 million, or $0.39 per common share diluted, for the quarter ended July 28, 2012, compared to $13.0 million, or $0.38 per common share diluted, for the quarter ended July 30, 2011.

The Company also reported:

  • Contract revenues of $1,201.1 million for the fiscal year ended July 28, 2012, compared to $1,035.9 million for the fiscal year ended July 30, 2011, an increase of 16.0%. Included in contract revenues for the fiscal year ended July 28, 2012 and July 30, 2011 was approximately $6.0 million and $14.1 million for storm restoration services, respectively, and revenues from business acquired in fiscal 2011 of $54.5 million and $33.8 million, respectively. After adjusting for revenues from business acquired in fiscal 2011 and storm restoration revenues in each period, revenue increased 15.4%, or $152.6 million; 
  • Adjusted EBITDA (Non-GAAP) of $135.5 million for the fiscal year ended July 28, 2012, compared to $110.2 million for the fiscal year ended July 30, 2011; and
  • Net income on a GAAP basis of $39.4 million, or $1.14 per common share diluted, for the fiscal year ended July 28, 2012, compared to $16.1 million, or $0.45 per common share diluted, for the fiscal year ended July 30, 2011. On a Non-GAAP basis, net income for the fiscal year ended July 30, 2011 was $21.9 million or $0.61 per common share diluted. Non-GAAP net income for the fiscal year ended July 30, 2011 excludes an $8.3 million pre-tax loss on debt extinguishment associated with the Company's tender offer and redemption of its 8.125% senior subordinated notes due 2015, a $0.6 million pre-tax charge in cost of earned revenues related to a wage and hour class action litigation settlement, and $0.2 million in pre-tax acquisition related costs.  

The Company has defined Adjusted EBITDA (Non-GAAP) as earnings before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, loss on debt extinguishment, acquisition related costs, and charges for a wage and hour class action settlement. See the accompanying tables which present a reconciliation of GAAP to Non-GAAP financial information.

A conference call to review the Company's results will be hosted at 9 a.m. (ET), Wednesday, August 29, 2012; call (800) 230-1059 (United States) or (612) 234-9959 (International) ten minutes before the conference call begins and ask for the "Dycom Results" conference call.  A live webcast of the conference call, along with related materials, will be available at http://www.dycomind.com under the heading "Events."  The conference call materials will be available at approximately 8 a.m. (ET) on August 29, 2012. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the conference call materials will be available at http://www.dycomind.com until Friday, September 28, 2012.

Dycom is a leading provider of specialty contracting services.  These services, which are provided throughout the United States and in Canada, include engineering, construction, maintenance and installation services to telecommunications providers, underground facility locating services to various utilities, including telecommunications providers, and other construction and maintenance services to electric and gas utilities and others.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The Company believes that the presentation of certain Non-GAAP financial measures in this press release provides information that is useful to investors because it allows for a more direct comparison of the Company's performance for the period with the Company's performance in the comparable prior-year period.  The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results.

Fiscal 2012 fourth quarter and annual results are preliminary and are unaudited.  This press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act.  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 and trends 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, the future impact of any acquisitions or dispositions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, and the other risks detailed in our filings with the Securities and Exchange Commission.  The Company does not undertake to update forward-looking statements.

---Tables Follow---

NYSE: "DY"





DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

July 28, 2012 and July 30, 2011

Unaudited








July 28,


July 30,



2012


2011

ASSETS


(Dollars in thousands)

CURRENT ASSETS:





Cash and equivalents

$

52,581

$

44,766

Accounts receivable, net


141,788


138,552

Costs and estimated earnings in excess of billings


127,321


90,855

Inventories


26,274


20,558

Deferred tax assets, net


15,633


15,957

Income taxes receivable


4,884


8,685

Other current assets


8,466


10,938

Total current assets


376,947


330,311






PROPERTY AND EQUIPMENT, NET


158,247


149,439

GOODWILL


174,849


174,849

INTANGIBLE ASSETS, NET


49,773


56,279

OTHER


12,377


13,877

TOTAL NON-CURRENT ASSETS


395,246


394,444

TOTAL ASSETS

$

772,193

$

724,755






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

36,823

$

39,399

Current portion of debt


74


232

Billings in excess of costs and estimated earnings


1,522


749

Accrued insurance claims


25,218


26,092

Other accrued liabilities


50,926


52,041

Total current liabilities


114,563


118,513






LONG-TERM DEBT


187,500


187,574

ACCRUED INSURANCE CLAIMS


23,591


23,344

DEFERRED TAX LIABILITIES, NET NON-CURRENT


49,537


39,923

OTHER LIABILITIES


4,071


3,550

Total liabilities


379,262


372,904






Total Stockholders' Equity


392,931


351,851

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

772,193

$

724,755






 

NYSE: "DY"









DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited












Three Months


Three Months


Twelve Months


Twelve Months



Ended


Ended


Ended


Ended



July 28,


July 30,


July 28,


July 30,



2012


2011


2012


2011



(Dollars in thousands, except per share amounts)










Contract revenues 

$

318,034

$

303,719

$

1,201,119

$

1,035,868










Costs of earned revenues, excluding depreciation and amortization


252,137


239,132


968,949


837,119

General and administrative expenses (1)


27,434


26,284


104,024


94,622

Depreciation and amortization


15,647


15,639


62,693


62,533

Total 


295,218


281,055


1,135,666


994,274










Interest expense, net


(4,189)


(4,098)


(16,717)


(15,911)

Loss on debt extinguishment


-


-


-


(8,295)

Other income, net


2,882


3,633


15,825


11,096










Income before income taxes


21,509


22,199


64,561


28,484










Provision for income taxes


8,227


9,234


25,183


12,377










Net income

$

13,282

$

12,965

$

39,378

$

16,107










Earnings per common share:


















Basic earnings per common share

$

0.40

$

0.38

$

1.17

$

0.46










Diluted earnings per common share

$

0.39

$

0.38

$

1.14

$

0.45



















Shares used in computing income per common share:









   Basic


33,600,852


33,822,998


33,653,055


35,306,900










   Diluted


34,384,915


34,503,794


34,481,895


35,754,168










(1) Includes stock-based compensation expense of $2.1 million and $7.0 million for the three and twelve
months ended July 28, 2012, respectively, and $1.3 million and $4.4 million for the three and twelve
months ended July 30, 2011, respectively.

 

NYSE: "DY"





DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited







The below table presents a reconciliation of GAAP to Non-GAAP net income for the twelve months ended July 28, 2012 and July 30, 2011.










Twelve Months


Twelve Months




Ended


Ended




July 28,


July 30,




2012


2011




(Dollars in thousands, except per share amounts)







Pre-Tax Reconciling Items decreasing net income






Loss on debt extinguishment

$

-

$

(8,295)


Charge for a wage and hour class action litigation settlement


-


(600)


Acquisition related costs


-


(223)

Total Reconciling Items

$

-

$

(9,118)







GAAP net income

$

39,378

$

16,107

Adjustment for Reconciling Items above, net of tax


-


5,776

Non-GAAP net income

$

39,378

$

21,883







Earnings per common share:











Basic earnings per common share  - GAAP

$

1.17

$

0.46

Adjustment for Reconciling Items above, net of tax


-


0.16

Basic earnings per common share - Non-GAAP 

$

1.17

$

0.62







Diluted earnings per common share - GAAP

$

1.14

$

0.45

Adjustment for Reconciling Items above, net of tax


-


0.16

Diluted earnings per common share - Non-GAAP 

$

1.14

$

0.61







Earnings per share amounts may not add due to rounding.











Shares used in computing GAAP and Non-GAAP earnings per common share and adjustment for Reconciling Items above:







   Basic


33,653,055


35,306,900







   Diluted


34,481,895


35,754,168







 


NYSE: "DY"

























DYCOM INDUSTRIES, INC. AND SUBSIDIARIES



RECONCILIATION OF GAAP TO NON-GAAP INFORMATION



Unaudited


(continued)















The below table presents the Non-GAAP financial measure of Adjusted EBITDA for the three and twelve months ended July 28, 2012 and July 30, 2011 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.



















Three Months


Three Months



Twelve Months


Twelve Months






Ended


Ended



Ended


Ended






July 28,


July 30,



July 28,


July 30,






2012


2011



2012


2011






(Dollars in thousands)



Reconciliation of Net income to Adjusted EBITDA (Non-GAAP):













Net income

$

13,282

$

12,965


$

39,378

$

16,107




Interest expense, net


4,189


4,098



16,717


15,911




Provision for income taxes


8,227


9,234



25,183


12,377




Depreciation and amortization expense


15,647


15,639



62,693


62,533




         Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA")

41,345


41,936



143,971


106,928




Gain on sale of fixed assets


(2,853)


(3,406)



(15,430)


(10,216)




Stock-based compensation expense


2,051


1,324



6,952


4,409




Loss on debt extinguishment


-


-



-


8,295




Charge for a wage and hour class action litigation settlement


-


-



-


600




Acquisition related costs


-


-



-


223




        Adjusted EBITDA (Non-GAAP)

$

40,543

$

39,854


$

135,493

$

110,239















 

NYSE: "DY"














DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited

(continued)
















The below table presents the reconciliation of contract revenues adjusted for revenues from businesses acquired in the second quarter
of fiscal 2011 and storm restoration service revenues generated during the fourth quarter and
annual periods for fiscal 2012 and 2011.



















Contract
Revenues -
GAAP


Revenues from
businesses
acquired in the
second quarter
of fiscal 2011 (a)


Revenues from
storm
restoration
services


Contract
Revenues -
Non-GAAP


%
Growth -
GAAP


%
Growth -
Non-
GAAP





(Dollars in thousands)






















Three Months Ended July 28, 2012


$    318,034


--


$           (2,256)


$    315,778


4.7

%

9.0

%

















Three Months Ended July 30, 2011


$    303,719


--


$         (14,054)


$    289,665






















Twelve Months Ended July 28, 2012


$ 1,201,119


$         (54,529)


$           (5,985)


$ 1,140,605


16.0

%

15.4

%

















Twelve Months Ended July 30, 2011


$ 1,035,868


$         (33,764)


$         (14,054)


$    988,050




































(a) There is no adjustment for revenues from businesses acquired during the second quarter of fiscal 2011 in the three month
periods ended July 28, 2012 or July 30, 2011 as the revenues from those businesses were included in both periods. 

SOURCE Dycom Industries, Inc.



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