Dycom Industries, Inc. Announces Fiscal 2013 First Quarter Results

Nov 19, 2012, 17:46 ET from Dycom Industries, Inc.

PALM BEACH GARDENS, Fla., Nov. 19, 2012 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the first quarter ended October 27, 2012. 

The Company reported:

  • Contract revenues of $323.3 million for the quarter ended October 27, 2012, compared to $319.6 million for the quarter ended October 29, 2011, an increase of 1.2%. Included in contract revenues for the quarter ended October 29, 2011 was approximately $3.7 million for storm restoration services; there were no revenues from storm restoration services for the quarter ended October 27, 2012. Excluding storm restoration services, revenues increased 2.4%, or $7.4 million;
  • Adjusted EBITDA (Non-GAAP) of $40.4 million for each of the quarters ended October 27, 2012, and October 29, 2011; and
  • Net income of $11.9 million, or $0.35 per common share diluted, for the quarter ended October 27, 2012, compared to $13.0 million, or $0.38 per common share diluted, for the quarter ended October 29, 2011. On a Non-GAAP basis, net income for the quarter ended October 27, 2012 was $12.3 million or $0.36 per common share diluted.  Non-GAAP net income for the quarter ended October 27, 2012 excludes $0.7 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, acquisition related costs, and stock-based compensation expense. See the accompanying tables which present a reconciliation of GAAP to Non-GAAP financial information.

A conference call to review the Company's results, together with the previously announced acquisition of telecommunications infrastructure services subsidiaries from Quanta Services, Inc., will be hosted at 9 a.m. (ET), Tuesday, November 20, 2012; call (800) 230-1074 (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 November 20, 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 Thursday, December 20, 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 2013 first 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, including the consummation of such acquisitions and 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

October 27, 2012 and July 28, 2012

Unaudited

October 27, 

July 28,

2012

2012

ASSETS

(Dollars in thousands)

CURRENT ASSETS:

Cash and equivalents

$

54,726

$

52,581

Accounts receivable, net

153,794

141,788

Costs and estimated earnings in excess of billings

118,409

127,321

Inventories

25,142

26,274

Deferred tax assets, net

16,074

15,633

Income taxes receivable

741

4,884

Other current assets

12,822

8,466

Total current assets

381,708

376,947

PROPERTY AND EQUIPMENT, NET

154,701

158,247

GOODWILL

174,849

174,849

INTANGIBLE ASSETS, NET

48,182

49,773

OTHER

12,093

12,377

TOTAL NON-CURRENT ASSETS

389,825

395,246

TOTAL ASSETS

$

771,533

$

772,193

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

38,485

$

36,823

Current portion of debt

55

74

Billings in excess of costs and estimated earnings

1,447

1,522

Accrued insurance claims

24,244

25,218

Income taxes payable

4,567

-

Other accrued liabilities

47,642

50,926

Total current liabilities

116,440

114,563

LONG-TERM DEBT

187,500

187,500

ACCRUED INSURANCE CLAIMS

22,847

23,591

DEFERRED TAX LIABILITIES, NET NON-CURRENT

48,792

49,537

OTHER LIABILITIES

3,959

4,071

Total liabilities

379,538

379,262

Total Stockholders' Equity

391,995

392,931

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

771,533

$

772,193

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

Three Months

Three Months

Ended

Ended

October 27, 

October 29,

2012

2011

(Dollars in thousands, except per share amounts)

Contract revenues 

$

323,286

$

319,575

Costs of earned revenues, excluding depreciation and amortization

257,066

255,187

General and administrative expenses (1)

28,824

25,358

Depreciation and amortization

15,311

15,958

Total 

301,201

296,503

Interest expense, net

(4,197)

(4,173)

Other income, net

1,614

2,959

Income before income taxes

19,502

21,858

Provision for income taxes

7,641

8,892

Net income

$

11,861

$

12,966

Earnings per common share:

Basic earnings per common share

$

0.36

$

0.39

Diluted earnings per common share

$

0.35

$

0.38

Shares used in computing income per common share:

   Basic

33,089,959

33,508,193

   Diluted

33,721,070

34,216,451

(1) Includes stock-based compensation expense of $2.3 million and $1.3 million for the three months ended October 27, 2012 and October 29, 2011, respectively.

 

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 storm restoration service revenues generated during the first quarter of fiscal 2012.

Contract Revenues - GAAP

Revenues from storm restoration services

Contract Revenues - Non-GAAP

% Growth - GAAP

% Growth - Non-GAAP

(Dollars in thousands)

Three Months Ended October 27, 2012

$    323,286

$                   -

$    323,286

1.2

%

2.4

%

Three Months Ended October 29, 2011

$    319,575

$           (3,729)

$    315,846

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited

(continued)

The below table presents a reconciliation of GAAP to Non-GAAP net income for the three months ended October 27, 2012 and October 29, 2011.

Three Months

Three Months

Ended

Ended

October 27,

October 29,

2012

2011

(Dollars in thousands, except per share amounts)

Reconciling Item:

Acquisition related costs

$

710

$

-

GAAP net income

$

11,861

$

12,966

Adjustment for Reconciling Item above, net of tax

431

-

Non-GAAP net income

$

12,292

$

12,966

Earnings per common share:

Basic earnings per common share  - GAAP

$

0.36

$

0.39

Adjustment for Reconciling Item above, net of tax

0.01

-

Basic earnings per common share - Non-GAAP 

$

0.37

$

0.39

Diluted earnings per common share - GAAP

$

0.35

$

0.38

Adjustment for Reconciling Item above, net of tax

0.01

-

Diluted earnings per common share - Non-GAAP 

$

0.36

$

0.38

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 Item above:

   Basic

33,089,959

33,508,193

   Diluted

33,721,070

34,216,451

 

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 months ended October 27, 2012 and October 29, 2011 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.

Three Months

Three Months

Ended

Ended

October 27, 

October 29,

2012

2011

(Dollars in thousands)

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

Net income

$

11,861

$

12,966

Interest expense, net

4,197

4,173

Provision for income taxes

7,641

8,892

Depreciation and amortization expense

15,311

15,958

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

39,010

41,989

Gain on sale of fixed assets

(1,581)

(2,918)

Stock-based compensation expense

2,266

1,326

Acquisition related costs

710

-

        Adjusted EBITDA (Non-GAAP)

$

40,405

$

40,397

SOURCE Dycom Industries, Inc.



RELATED LINKS

http://www.dycomind.com