Dycom Industries, Inc. Announces Fiscal 2013 Fourth Quarter And Fiscal Year Results And Provides Guidance For The Next Fiscal Quarter

PALM BEACH GARDENS, Fla., Aug. 27, 2013 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter and fiscal year ended July 27, 2013.

The Company reported:

  • Contract revenues of $478.6 million for the quarter ended July 27, 2013, compared to contract revenues of $318.0 million for the quarter ended July 28, 2012. Contract revenues for the quarter ended July 27, 2013 grew 7.5% on an organic basis after excluding $139.1 million of revenue from businesses acquired during fiscal 2013 and $2.3 million of revenue from storm restoration services in the quarter ended July 28, 2012.
  • Adjusted EBITDA (Non-GAAP) of $58.1 million for the quarter ended July 27, 2013, compared to $40.5 million for the quarter ended July 28, 2012.
  • Net income on a GAAP basis of $14.7 million, or $0.43 per common share diluted, for the quarter ended July 27, 2013, compared to $13.3 million, or $0.39 per common share diluted, for the quarter ended July 28, 2012. On a Non-GAAP basis, net income for the quarter ended July 27, 2013 was $15.1 million, or $0.44 per common share diluted. The Non-GAAP net income for the quarter ended July 27, 2013 excludes a pre-tax $0.5 million charge for a wage and hour class action settlement and $0.2 million in pre-tax acquisition related costs.

The Company also reported:

  • Contract revenues of $1.609 billion for the fiscal year ended July 27, 2013, compared to contract revenues of $1.201 billion for the fiscal year ended July 28, 2012. Contract revenues for the fiscal year ended July 27, 2013 grew 4.9% on an organic basis after excluding $337.9 million of revenue from businesses acquired during fiscal 2013 and revenue for storm restoration services of $16.7 million and $6.0 million in the fiscal years ended July 27, 2013 and July 28, 2012, respectively.
  • Adjusted EBITDA (Non-GAAP) of $179.8 million for the fiscal year ended July 27, 2013, compared to $135.5 million for the fiscal year ended July 28, 2012.
  • Net income on a GAAP basis of $35.2 million, or $1.04 per common share diluted, for the fiscal year ended July 27, 2013, compared to $39.4 million, or $1.14 per common share diluted, for the fiscal year ended July 28, 2012. The fiscal year ended July 27, 2013 included $4.7 million in pre-tax gains on asset sales, as compared to $15.4 million during the fiscal year ended July 28, 2012. On a Non-GAAP basis, net income for the fiscal year ended July 27, 2013 was $39.8 million, or $1.18 per common share diluted. The Non-GAAP net income for the fiscal year ended July 27, 2013 excludes $6.8 million in pre-tax acquisition related costs, a pre-tax $0.5 million charge for a wage and hour class action settlement, and a pre-tax write-off of $0.3 million of deferred financing costs in connection with the replacement of the Company's credit facility in December 2012.

The Company also announced its outlook for the first quarter of fiscal 2014. The Company currently expects revenue for the first quarter of fiscal 2014 to range from $475.0 million to $495.0 million and diluted earnings per common share to range from $0.42 to $0.49.

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, write-off of deferred financing costs, charges for a wage and hour class action settlement, 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 will be hosted at 9 a.m. (ET), Wednesday, August 28, 2013; 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 28, 2013. 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 27, 2013.

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 fourth quarter and full year 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, preliminary purchase price allocations of businesses acquired, expected benefits and synergies of acquisitions, future financial and operating results, 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

CONSOLIDATED BALANCE SHEETS

July 27, 2013 and July 28, 2012

Unaudited








July 27,


July 28,



2013


2012

ASSETS


(Dollars in thousands)

CURRENT ASSETS:





Cash and equivalents

$

18,607

$

52,581

Accounts receivable, net


252,202


141,788

Costs and estimated earnings in excess of billings


204,349


127,321

Inventories


35,999


26,274

Deferred tax assets, net


15,919


15,633

Income taxes receivable


2,516


4,884

Other current assets


10,608


8,466

Total current assets


540,200


376,947






PROPERTY AND EQUIPMENT, NET


202,703


158,247

GOODWILL


267,810


174,849

INTANGIBLE ASSETS, NET


125,275


49,773

OTHER


17,286


12,377

     TOTAL NON-CURRENT ASSETS


613,074


395,246

     TOTAL ASSETS

$

1,153,274

$

772,193






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

77,954

$

36,823

Current portion of debt


7,813


74

Billings in excess of costs and estimated earnings


13,788


1,522

Accrued insurance claims


29,069


25,218

Other accrued liabilities


70,257


50,926

     Total current liabilities


198,881


114,563











LONG-TERM DEBT (including debt premium of $3.6 million at July 27, 2013)


444,169


187,500

ACCRUED INSURANCE CLAIMS


27,250


23,591

DEFERRED TAX LIABILITIES, NET NON-CURRENT


48,612


49,537

OTHER LIABILITIES


6,001


4,071

     Total liabilities


724,913


379,262






     Total Stockholders' Equity


428,361


392,931

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,153,274

$

772,193






 

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited













Three Months


Three Months



Twelve Months


Twelve Months



Ended


Ended



Ended


Ended



July 27,


July 28,



July 27,


July 28,



2013


2012



2013


2012



(Dollars in thousands, except per share amounts)











Contract revenues 

$

478,632

$

318,034


$

1,608,612

$

1,201,119











Costs of earned revenues, excluding depreciation and amortization


384,169


252,137



1,300,416


968,949

General and administrative expenses (1)


39,914


27,434



145,771


104,024

Depreciation and amortization


24,820


15,647



85,481


62,693

Total 


448,903


295,218



1,531,668


1,135,666











Interest expense, net


(6,752)


(4,189)



(23,334)


(16,717)

Other income, net


1,069


2,882



4,589


15,825











Income before income taxes


24,046


21,509



58,199


64,561











Provision for income taxes


9,380


8,227



23,011


25,183











Net income

$

14,666

$

13,282


$

35,188

$

39,378











Earnings per common share:




















Basic earnings per common share

$

0.44

$

0.40


$

1.07

$

1.17











Diluted earnings per common share

$

0.43

$

0.39


$

1.04

$

1.14





















Shares used in computing income per common share:










   Basic


33,141,347


33,600,852



33,012,595


33,653,055











   Diluted


34,082,228


34,384,915



33,782,187


34,481,895











(1) Includes stock-based compensation expense of $2.6 million and $2.1 million for the three months ended July 27, 2013 and July 28, 2012, respectively, and $9.9 million and $7.0 million for the twelve months ended July 27, 2013 and July 28, 2012, respectively.

 

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited
















The below table presents the reconciliation of contract revenues adjusted for revenue from subsidiaries acquired in fiscal 2013 and storm restoration service revenues generated during the current and prior year periods.

















Contract

Revenues -

GAAP


Revenues from

subsidiaries

acquired in fiscal

2013


Revenues from

storm

restoration

services


Contract

Revenues -

Non-GAAP


%
Growth -

GAAP


%
Growth -

Non-GAAP




(Dollars in thousands)




















Three Months Ended July 27, 2013

$    478,632


$      (139,079)


$                     -


$    339,553


50.5

%

7.5

%















Three Months Ended July 28, 2012

$    318,034


$                   -


$            (2,256)


$    315,778




















Twelve Months Ended July 27, 2013

$ 1,608,612


$      (337,923)


$          (16,721)


$ 1,253,968


33.9

%

4.9

%















Twelve Months Ended July 28, 2012

$ 1,201,119


$                   -


$            (5,985)


$ 1,195,134




















 

 


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 27, 2013 and July 28, 2012 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 27,


July 28,



July 27,


July 28,





2013


2012



2013


2012





(Dollars in thousands)

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


Net income

$

14,666

$

13,282


$

35,188

$

39,378


Interest expense, net


6,752


4,189



23,334


16,717


Provision for income taxes


9,380


8,227



23,011


25,183


Depreciation and amortization expense


24,820


15,647



85,481


62,693


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


55,618


41,345



167,014


143,971


Gain on sale of fixed assets


(816)


(2,853)



(4,683)


(15,430)


Stock-based compensation expense


2,628


2,051



9,902


6,952


Charge for a wage and hour class action litigation settlement


495


-



495


-


Acquisition related costs


224


-



6,763


-


Write-off of deferred financing costs


-


-



321


-


        Adjusted EBITDA (Non-GAAP)

$

58,149

$

40,543


$

179,812

$

135,493

























 

 

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 and twelve months ended July 27, 2013 and July 28, 2012.















Three Months


Three Months



Twelve Months


Twelve Months




Ended


Ended



Ended


Ended




July 27,


July 28,



July 27,


July 28,




2013


2012



2013


2012






(Dollars in thousands, except per share amounts)



Reconciling Items:











Charge for a wage and hour class action litigation settlement

$

(495)

$

-


$

(495)

$

-


Acquisition related costs


(224)


-



(6,763)


-


Write-off of deferred financing costs


-


-



(321)


-

Total Reconciling Items

$

(719)

$

-


$

(7,579)

$

-












GAAP net income

$

14,666

$

13,282


$

35,188

$

39,378

Adjustment for Reconciling Items above, net of tax


435


-



4,589


-

Non-GAAP net income

$

15,101

$

13,282


$

39,777

$

39,378












Earnings per common share:





















Basic earnings per common share  - GAAP

$

0.44

$

0.40


$

1.07

$

1.17

Adjustment for Reconciling Items above, net of tax


0.01


-



0.14


-

Basic earnings per common share - Non-GAAP 

$

0.46

$

0.40


$

1.20

$

1.17












Diluted earnings per common share - GAAP

$

0.43

$

0.39


$

1.04

$

1.14

Adjustment for Reconciling Items above, net of tax


0.01


-



0.14


-

Diluted earnings per common share - Non-GAAP 

$

0.44

$

0.39


$

1.18

$

1.14












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


33,141,347


33,600,852



33,012,595


33,653,055












   Diluted


34,082,228


34,384,915



33,782,187


34,481,895












 

SOURCE Dycom Industries, Inc.



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