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Dycom Industries, Inc. Announces Fiscal 2012 Third Quarter Results

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PALM BEACH GARDENS, Fla., May 22, 2012 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 28, 2012. 

The Company reported:

  • Contract revenues of $296.1 million for the quarter ended April 28, 2012, compared to $252.4 million for the quarter ended April 30, 2011, an increase of 17.3%;
  • Adjusted EBITDA (Non-GAAP) of $29.9 million for the quarter ended April 28, 2012, compared to $23.8 million for the quarter ended April 30, 2011; and
  • Net income on a GAAP basis of $9.6 million, or $0.28 per common share diluted, for the quarter ended April 28, 2012, compared to $1.5 million, or $0.04 per common share diluted, for the quarter ended April 30, 2011. On a Non-GAAP basis, net income for the quarter ended April 30, 2011 was $3.4 million, or $0.10 per common share diluted.  Non-GAAP net income for the three months ended April 30, 2011 excludes a $2.6 million pre-tax loss on debt extinguishment associated with the Company's redemption of $48.4 million of its 8.125% senior subordinated notes due 2015, and a $0.6 million pre-tax charge in cost of earned revenues related to a wage and hour class action litigation settlement.

The Company also reported:

  • Contract revenues of $883.1 million for the nine months ended April 28, 2012, compared to $732.1 million for the nine months ended April 30, 2011, an increase of 18.1% after adjusting for revenues in each period from businesses acquired during the second quarter of fiscal 2011;
  • Adjusted EBITDA (Non-GAAP) of $95.0 million for the nine months ended April 28, 2012, compared to $70.4 million for the nine months ended April 30, 2011; and
  • Net income on a GAAP basis of $26.1 million, or $0.76 per common share diluted, for the nine months ended April 28, 2012, compared to $3.1 million, or $0.09 per common share diluted, for the nine months ended April 30, 2011. On a Non-GAAP basis, net income for the nine months ended April 30, 2011 was $8.9 million, or $0.25 per common share diluted. Non-GAAP net income for the nine months ended April 30, 2011 excludes a $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, May 23, 2012; call 800-230-1085 (United States) or 612-288-0329 (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 May 23, 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, June 22, 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 third 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---

 






NYSE: "DY"





DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

April 28, 2012 and July 30, 2011

Unaudited








April 28,


July 30,



2012


2011

ASSETS


(Dollars in thousands)

CURRENT ASSETS:





Cash and equivalents

$

66,710

$

44,766

Accounts receivable, net


121,638


138,552

Costs and estimated earnings in excess of billings


105,874


90,855

Inventories


29,795


20,558

Deferred tax assets, net


15,653


15,957

Income taxes receivable


867


8,685

Other current assets


12,278


10,938

Total current assets


352,815


330,311






PROPERTY AND EQUIPMENT, NET


155,036


149,439

GOODWILL


174,849


174,849

INTANGIBLE ASSETS, NET


51,364


56,279

OTHER


12,981


13,877

TOTAL NON-CURRENT ASSETS


394,230


394,444

TOTAL ASSETS

$

747,045

$

724,755






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

33,287

$

39,399

Current portion of debt


121


232

Billings in excess of costs and estimated earnings


979


749

Accrued insurance claims


25,123


26,092

Other accrued liabilities


51,294


52,041

Total current liabilities


110,804


118,513






LONG-TERM DEBT


187,500


187,574

ACCRUED INSURANCE CLAIMS


22,546


23,344

DEFERRED TAX LIABILITIES, NET NON-CURRENT


44,011


39,923

OTHER LIABILITIES


3,798


3,550

Total liabilities


368,659


372,904






Total Stockholders' Equity


378,386


351,851

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

747,045

$

724,755







  



















NYSE: "DY"









DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited












Three Months


Three Months


Nine Months


Nine Months



Ended


Ended


Ended


Ended



April 28,


April 30,


April 28,


April 30,



2012


2011


2012


2011



(Dollars in thousands, except per share amounts)










Contract revenues 

$

296,103

$

252,363

$

883,085

$

732,150










Costs of earned revenues, excluding depreciation and amortization


241,386


207,045


716,812


597,987

General and administrative expenses (1)


26,956


23,678


76,589


68,338

Depreciation and amortization


15,561


15,491


47,047


46,894

Total 


283,903


246,214


840,448


713,219










Interest expense, net


(4,178)


(4,395)


(12,528)


(11,813)

Loss on debt extinguishment


-


(2,557)


-


(8,296)

Other income, net


7,627


3,500


12,943


7,464










Income before income taxes


15,649


2,697


43,052


6,286










Provision for income taxes


6,004


1,208


16,956


3,144










Net income

$

9,645

$

1,489

$

26,096

$

3,142










Earnings per common share:


















Basic earnings per common share

$

0.29

$

0.04

$

0.78

$

0.09










Diluted earnings per common share

$

0.28

$

0.04

$

0.76

$

0.09



















Shares used in computing income per common share:









   Basic


33,741,255


34,706,822


33,669,974


35,800,175










   Diluted


34,682,891


35,323,667


34,516,902


36,130,585










(1) Includes stock-based compensation expense of $1.9 million and $4.9 million for the three and nine months ended April 28, 2012, respectively, and $1.3 million and $3.1 million for the three and nine months ended April 30, 2011, respectively.


  























NYSE: "DY"











DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited















Three Months


Three Months



Nine Months


Nine Months




Ended


Ended



Ended


Ended




April 28,


April 30,



April 28,


April 30,




2012


2011



2012


2011




(Dollars in thousands, except per share amounts)












Pre-Tax Reconciling Items decreasing net income










Loss on debt extinguishment

$

-

$

(2,557)


$

-

$

(8,296)

Charge for a wage and hour class action litigation settlement


-


(600)



-


(600)

Acquisition related costs


-


-



-


(223)

Total Reconciling Items

$

-

$

(3,157)


$

-

$

(9,119)























GAAP net income

$

9,645

$

1,489


$

26,096

$

3,142

Adjustment for Reconciling Items above, net of tax


-


1,901



-


5,777

Non-GAAP net income

$

9,645

$

3,390


$

26,096

$

8,919












Earnings per common share:





















Basic earnings per common share  - GAAP

$

0.29

$

0.04


$

0.78

$

0.09

Adjustment for Reconciling Items above, net of tax


-


0.05



-


0.16

Basic earnings per common share - Non-GAAP 

$

0.29

$

0.10


$

0.78

$

0.25












Diluted earnings per common share - GAAP

$

0.28

$

0.04


$

0.76

$

0.09

Adjustment for Reconciling Items above, net of tax


-


0.05



-


0.16

Diluted earnings per common share - Non-GAAP 

$

0.28

$

0.10


$

0.76

$

0.25












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


33,741,255


34,706,822



33,669,974


35,800,175












   Diluted


34,682,891


35,323,667



34,516,902


36,130,585
























  





















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 nine months ended April 28, 2012 and April 30, 2011 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.














Three Months


Three Months


Nine Months


Nine Months




Ended


Ended


Ended


Ended




April 28,


April 30,


April 28,


April 30,




2012


2011


2012


2011




(Dollars in thousands)

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









Net income

$

9,645

$

1,489

$

26,096

$

3,142

Interest expense, net


4,178


4,395


12,528


11,813

Provision for income taxes


6,004


1,208


16,956


3,144

Depreciation and amortization expense


15,561


15,491


47,047


46,894

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


35,388


22,583


102,627


64,993

Gain on sale of fixed assets


(7,439)


(3,300)


(12,578)


(6,810)

Stock-based compensation expense


1,933


1,314


4,901


3,086

Loss on debt extinguishment


-


2,557


-


8,296

Charge for a wage and hour class action litigation settlement


-


600


-


600

Acquisition related costs


-


-


-


223

Adjusted EBITDA (Non-GAAP)

$

29,882

$

23,754

$

94,950

$

70,388






















  

































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 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)
























Nine Months Ended April 28, 2012


$

883,085


$

(41,779)


$

841,306


20.6

%

18.1

%


















Nine Months Ended April 30, 2011


$

732,150


$

(19,646)


$

712,504






















 

SOURCE Dycom Industries, Inc.



RELATED LINKS
http://www.dycomind.com

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