Dycom Industries, Inc. Announces Fiscal 2012 Second Quarter Results

PALM BEACH GARDENS, Fla., Feb. 28, 2012 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 28, 2012.  

The Company reported:

  • Contract revenues of $267.4 million for the quarter ended January 28, 2012, compared to $218.2 million for the quarter ended January 29, 2011, an increase of 19.2% after adjusting for revenues in each period from businesses acquired during the second quarter of fiscal 2011;
  • Adjusted EBITDA (Non-GAAP) of $24.7 million for the quarter ended January 28, 2012, compared to $16.2 million for the quarter ended January 29, 2011; and
  • Net income on a GAAP basis of $3.5 million, or $0.10 per common share diluted, for the quarter ended January 28, 2012, compared to a net loss on a GAAP basis of $5.1 million, or $0.14 loss per common share diluted, for the quarter ended January 29, 2011. On a Non-GAAP basis, the net loss for the quarter ended January 29, 2011 was $1.2 million, or $0.03 per common share diluted.  This Non-GAAP net loss excludes a $5.7 million pre-tax loss on debt extinguishment associated with the Company's fiscal 2011 tender offer for its 8.125% senior subordinated notes due 2015, and $0.2 million in pre-tax acquisition related costs.

The Company also reported:

  • Contract revenues of $587.0 million for the six months ended January 28, 2012, compared to $479.8 million for the six months ended January 29, 2011, an increase of 17.8% after adjusting for revenues in each period from businesses acquired during the second quarter of fiscal 2011;
  • Adjusted EBITDA (Non-GAAP) of $65.1 million for the six months ended January 28, 2012, compared to $46.6 million for the six months January 29, 2011; and
  • Net income on a GAAP basis of $16.5 million, or $0.48 per common share diluted, for the six months ended January 28, 2012, compared to $1.7 million, or $0.05 per common share diluted, for the six months ended January 29, 2011. On a Non-GAAP basis, net income for the six months ended January 29, 2011 was $5.5 million, or $0.15 per common share diluted. Non-GAAP net income for the six months ended January 29, 2011 excludes a $5.7 million pre-tax loss on debt extinguishment associated with the Company's fiscal 2011 tender offer for its 8.125% senior subordinated notes due 2015, 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, and acquisition related costs. 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, February 29, 2012; call 800-553-5260 (United States) or 612-332-0820 (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 February 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, March 30, 2012.

Dycom is a leading provider of specialty contracting services throughout the United States.  These services 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 second quarter 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---

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

January 28, 2012 and July 30, 2011

Unaudited








January 28,


July 30,



2012


2011

ASSETS


(Dollars in thousands)

CURRENT ASSETS:





Cash and equivalents

$

86,195

$

44,766

Accounts receivable, net


102,698


138,552

Costs and estimated earnings in excess of billings


83,493


90,855

Inventories


30,263


20,558

Deferred tax assets, net


15,393


15,957

Income taxes receivable


4,437


8,685

Other current assets


12,641


10,938

Total current assets


335,120


330,311






PROPERTY AND EQUIPMENT, NET


156,315


149,439

GOODWILL


174,849


174,849

INTANGIBLE ASSETS, NET


52,972


56,279

OTHER


12,846


13,877

TOTAL NON-CURRENT ASSETS


396,982


394,444

TOTAL ASSETS

$

732,102

$

724,755






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

31,602

$

39,399

Current portion of debt


167


232

Billings in excess of costs and estimated earnings


1,307


749

Accrued insurance claims


24,999


26,092

Other accrued liabilities


41,355


52,041

Total current liabilities


99,430


118,513






LONG-TERM DEBT


187,500


187,574

ACCRUED INSURANCE CLAIMS


22,642


23,344

DEFERRED TAX LIABILITIES, NET NON-CURRENT


42,883


39,923

OTHER LIABILITIES


3,752


3,550

Total liabilities


356,207


372,904






Total Stockholders' Equity


375,895


351,851

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

732,102

$

724,755



DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited












Three Months


Three Months


Six Months


Six Months



Ended


Ended


Ended


Ended



January 28,


January 29,


January 28,


January 29,



2012


2011


2012


2011



(Dollars in thousands, except per share amounts)










Contract revenues

$

267,407

 $

218,203

 $

586,981

$

479,787










Costs of earned revenues, excluding depreciation and amortization


220,239


181,621


475,426


390,943

General and administrative expenses (1)


24,275


21,835


49,633


44,660

Depreciation and amortization


15,528


15,787


31,486


31,403

Total


260,042


219,243


556,545


467,006










Interest income


8


34


25


63

Interest expense


(4,185)


(3,773)


(8,375)


(7,481)

Loss on debt extinguishment


-


(5,738)


-


(5,738)

Other income, net


2,357


2,207


5,317


3,964










Income (loss) before income taxes


5,545


(8,310)


27,403


3,589










Provision (benefit) for income taxes


2,060


(3,216)


10,952


1,936










Net income (loss)

$

3,485

$

(5,094)

$

16,451

$

1,653










Earnings (loss) per common share:


















Basic earnings (loss) per common share

$

0.10

$

(0.14)

$

0.49

$

0.05










Diluted earnings (loss) per common share

$

0.10

$

(0.14)

$

0.48

$

0.05



















Shares used in computing income (loss) per common share:









  Basic


33,759,015


35,221,017


33,633,596


36,343,068










  Diluted


34,636,520


35,221,017


34,431,419


36,566,672










(1) Includes stock-based compensation expense of $1.6 million and $3.0 million for the three and six months ended January 28, 2012, respectively, and $1.0 million and $1.8 million for the three and six months ended January 29, 2011, respectively.



DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited















Three Months


Three Months



Six Months


Six Months




Ended


Ended



Ended


Ended




January 28,


January 29,



January 28,


January 29,




2012


2011



2012


2011




(Dollars in thousands, except per share amounts)












Pre-Tax Reconciling Items decreasing net income (loss)











Loss on debt extinguishment

$

-

$

(5,738)


$

-

$

(5,738)


Acquisition related costs


-


(223)



-


(223)

Total Reconciling Items

$

-

$

(5,961)


$

-

$

(5,961)























GAAP net income (loss)

$

3,485

$

(5,094)


$

16,451

$

1,653

Adjustment for Reconciling Items above, net of tax


-


3,875



-


3,875

Non-GAAP net income (loss)

$

3,485

$

(1,219)


$

16,451

$

5,528












Earnings (loss) per common share:





















Basic earnings (loss) per common share  - GAAP

$

0.10

$

(0.14)


$

0.49

$

0.05

Adjustment for Reconciling Items above, net of tax


-


0.11



-


0.11

Basic earnings (loss) per common share - Non-GAAP

$

0.10

$

(0.03)


$

0.49

$

0.15












Diluted earnings (loss) per common share - GAAP

$

0.10

$

(0.14)


$

0.48

$

0.05

Adjustment for Reconciling Items above, net of tax


-


0.11



-


0.11

Diluted earnings (loss) per common share - Non-GAAP

$

0.10

$

(0.03)


$

0.48

$

0.15












Earnings (loss) per share amounts may not add due to rounding.





















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












  Basic


33,759,015


35,221,017



33,633,596


36,343,068












  Diluted


34,636,520


35,221,017



34,431,419


36,566,672














DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited












The below table presents the Non-GAAP financial measure of Adjusted EBITDA for the three and six months ended January 28, 2012 and January 29, 2011 and a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.















Three Months


Three Months



Six Months


Six Months




Ended


Ended



Ended


Ended




January 28,


January 29,



January 28,


January 29,




2012


2011



2012


2011




(Dollars in thousands)

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











Net income

$

3,485

$

(5,094)


$

16,451

$

1,653


Interest expense, net


4,177


3,739



8,350


7,418


Provision for income taxes


2,060


(3,216)



10,952


1,936


Depreciation and amortization expense


15,528


15,787



31,486


31,403


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


25,250


11,216



67,239


42,410


Gain on sale of fixed assets


(2,220)


(1,980)



(5,139)


(3,510)


Stock-based compensation expense


1,642


981



2,968


1,772


Loss on debt extinguishment


-


5,738



-


5,738


Acquisition related costs


-


223



-


223


  Adjusted EBITDA (Non-GAAP)

$

24,672

$

16,178


$

65,068

$

46,633



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 the change from the comparable prior year period.

















Contract
Revenues -
GAAP


Revenues from
businesses
acquired in the
second quarter
of fiscal 2011


Contract
Revenues -
Non-GAAP


%
Growth -
GAAP


%
Growth -
Non-GAAP





(Dollars in thousands)




















Three Months Ended January 28, 2012


$      267,407


$        (13,633)


$      253,774


22.5%


19.2%
















Three Months Ended January 29, 2011


$      218,203


$          (5,258)


$      212,945

































Six Months Ended January 28, 2012


$      586,981


$        (28,101)


$      558,880


22.3%


17.8%
















Six Months Ended January 29, 2011


$      479,787


$          (5,258)


$      474,529








SOURCE Dycom Industries, Inc.



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