2014

Dycom Industries, Inc. Announces Fiscal 2013 Second Quarter Results

PALM BEACH GARDENS, Fla., Feb. 26, 2013 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 26, 2013. The results include the effect of the acquisition of substantially all of the telecommunications infrastructure services subsidiaries of Quanta Services, Inc., which was completed on December 3, 2012.

The Company reported:

  • Contract revenues of $369.3 million for the quarter ended January 26, 2013, compared to contract revenues of $267.4 million for the quarter ended January 28, 2012. Contract revenues for the quarter ended January 26, 2013 grew 3.5% on an organic basis after excluding $75.9 million of revenue from acquired subsidiaries and $16.7 million of revenue for storm restoration services in the current period.
  • Adjusted EBITDA (Non-GAAP) of $37.2 million for the quarter ended January 26, 2013, compared to $24.7 million for the quarter ended  January 28, 2012.
  • Net income on a GAAP basis of $1.5 million, or $0.04 per common share diluted, for the quarter ended January 26, 2013, compared to $3.5 million, or $0.10 per common share diluted, for the quarter ended January 28, 2012. On a Non-GAAP basis, net income for the quarter ended January 26, 2013 was $5.2 million, or $0.15 per common share diluted. The Non-GAAP net income for the quarter ended January 26, 2013 excludes $5.8 million in pre-tax acquisition related costs 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 reported:

  • Contract revenues of $692.6 million for the six months ended January 26, 2013, compared to contract revenues of $587.0 million for the six months ended January 28, 2012. Contract revenues for the six months ended January 26, 2013 grew 2.9% on an organic basis after excluding $75.9 million of revenue from acquired subsidiaries and $16.7 million of revenue for storm restoration services in the six months ended January 26, 2013 and $3.7 million of revenue for storm restoration services in the six months ended January 28, 2012.
  • Adjusted EBITDA (Non-GAAP) of $77.6 million for the six months ended January 26, 2013, compared to $65.1 million for the six months ended  January 28, 2012.
  • Net income on a GAAP basis of $13.3 million, or $0.40 per common share diluted, for the six months ended January 26, 2013, compared to $16.5 million, or $0.48 per common share diluted, for the six months ended January 28, 2012. On a Non-GAAP basis, net income for the six months ended January 26, 2013 was $17.5 million, or $0.52 per common share diluted. The Non-GAAP net income for the six months ended January 26, 2013 excludes $6.5 million in pre-tax acquisition related costs 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 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, and stock-based compensation expense. See the accompanying tables which present a reconciliation of GAAP to Non-GAAP financial information.

Fiscal 2013 second quarter results are preliminary and are unaudited. In addition, the purchase price allocation of the tangible and intangible assets acquired and liabilities assumed during the period is preliminary and is subject to change.

A conference call to review the Company's results will be hosted at 9 a.m. (ET), Wednesday, February 27, 2013; call (877) 209-9922 (United States) or (612) 332-0632 (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 27, 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, March 29, 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.

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 in December 2012, expected benefits and synergies of the acquisition, future financial and operating results, future opportunities for the combined businesses, 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

January 26, 2013 and July 28, 2012

Unaudited








January 26,


July 28,



2013


2012

ASSETS


(Dollars in thousands)

CURRENT ASSETS:





Cash and equivalents

$

22,590

$

52,581

Accounts receivable, net


227,413


141,788

Costs and estimated earnings in excess of billings


148,502


127,321

Inventories


34,909


26,274

Deferred tax assets, net


15,422


15,633

Income taxes receivable


6,925


4,884

Other current assets


13,923


8,466

Total current assets


469,684


376,947






PROPERTY AND EQUIPMENT, NET


187,242


158,247

GOODWILL


262,989


174,849

INTANGIBLE ASSETS, NET


134,306


49,773

OTHER


18,588


12,377

TOTAL NON-CURRENT ASSETS


603,125


395,246

TOTAL ASSETS

$

1,072,809

$

772,193






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

64,166

$

36,823

Current portion of debt


6,250


74

Billings in excess of costs and estimated earnings


11,386


1,522

Accrued insurance claims


26,313


25,218

Other accrued liabilities


69,959


50,926

Total current liabilities


178,074


114,563











LONG-TERM DEBT (including debt premium of $3.8 million at January 26, 2013)


420,033


187,500

ACCRUED INSURANCE CLAIMS


23,693


23,591

DEFERRED TAX LIABILITIES, NET NON-CURRENT


48,100


49,537

OTHER LIABILITIES


4,537


4,071

Total liabilities


674,437


379,262






Total Stockholders' Equity


398,372


392,931

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,072,809

$

772,193






 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited













Three Months


Three Months



Six Months


Six Months



Ended


Ended



Ended


Ended



January 26,


January 28,



January 26,


January 28,



2013


2012



2013


2012



(Dollars in thousands, except per share amounts)











Contract revenues 

$

369,326

$

267,407


$

692,613

$

586,981











Costs of earned revenues, excluding
depreciation and amortization


301,516


220,239



558,582


475,426

General and administrative expenses (1)


38,827


24,275



67,652


49,633

Depreciation and amortization


20,819


15,528



36,130


31,486

Total 


361,162


260,042



662,364


556,545











Interest expense, net


(5,748)


(4,177)



(9,946)


(8,350)

Other income, net


428


2,357



2,042


5,317











Income before income taxes


2,844


5,545



22,345


27,403











Provision for income taxes


1,381


2,060



9,022


10,952











Net income

$

1,463

$

3,485


$

13,323

$

16,451











Earnings per common share:




















Basic earnings per common share

$

0.04

$

0.10


$

0.40

$

0.49











Diluted earnings per common share

$

0.04

$

0.10


$

0.40

$

0.48





















Shares used in computing income per common share:










   Basic


32,780,667


33,759,015



32,935,305


33,633,596











   Diluted


33,514,416


34,636,520



33,607,180


34,431,419











(1) Includes stock-based compensation expense of $2.5 million and $1.6 million for the three months ended January 26, 2013 and January 28, 2012, respectively, and $4.8 million and $3.0 million for the six months ended January 26, 2013 and January 28, 2012, 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 revenue from subsidiaries acquired in the second quarter of fiscal 2013 and storm restoration service revenues generated during the current and prior year periods.



















Contract
Revenues -
GAAP


Revenues from
subsidiaries
acquired in the
second quarter
of fiscal 2013


Revenues
from storm
restoration
services


Contract
Revenues -
Non-GAAP


%
Growth -
GAAP


%
Growth -
Non-GAAP





(Dollars in thousands)





















Three Months Ended January 26, 2013


$    369,326


$         (75,946)


$         (16,721)


$    276,659


38.1

%

3.5

%
















Three Months Ended January 28, 2012


$    267,407


$                     -


$                     -


$    267,407





















Six Months Ended January 26, 2013


$    692,613


$         (75,946)


$         (16,721)


$    599,946


18.0

%

2.9

%
















Six Months Ended January 28, 2012


$    586,981


$                     -


$           (3,729)


$    583,252





















 

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 six months ended January 26, 2013 and January 28, 2012.















Three Months


Three Months



Six Months


Six Months




Ended


Ended



Ended


Ended




January 26,


January 28,



January 26,


January 28,




2013


2012



2013


2012




(Dollars in thousands, except per share amounts)












Reconciling Items:











Acquisition related costs

$

(5,829)

$

-


$

(6,539)

$

-


Write-off of deferred financing costs


(321)


-



(321)


-

Total Reconciling Items

$

(6,150)

$

-


$

(6,860)

$

-












GAAP net income

$

1,463

$

3,485


$

13,323

$

16,451

Adjustment for Reconciling Items above, net of tax


3,710


-



4,154


-

Non-GAAP net income

$

5,173

$

3,485


$

17,477

$

16,451












Earnings per common share:





















Basic earnings per common share  - GAAP

$

0.04

$

0.10


$

0.40

$

0.49

Adjustment for Reconciling Items above, net of tax


0.11


-



0.13


-

Basic earnings per common share - Non-GAAP 

$

0.16

$

0.10


$

0.53

$

0.49












Diluted earnings per common share - GAAP

$

0.04

$

0.10


$

0.40

$

0.48

Adjustment for Reconciling Items above, net of tax


0.11


-



0.12


-

Diluted earnings per common share - Non-GAAP 

$

0.15

$

0.10


$

0.52

$

0.48












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


32,780,667


33,759,015



32,935,305


33,633,596












   Diluted


33,514,416


34,636,520



33,607,180


34,431,419












 

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 six months ended January 26, 2013 and January 28, 2012 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.

















Three Months


Three Months



Six Months


Six Months





Ended


Ended



Ended


Ended





January 26,


January 28,



January 26,


January 28,





2013


2012



2013


2012





(Dollars in thousands)

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











Net income

$

1,463

$

3,485


$

13,323

$

16,451


Interest expense, net


5,748


4,177



9,946


8,350


Provision for income taxes


1,381


2,060



9,022


10,952


Depreciation and amortization expense


20,819


15,528



36,130


31,486



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


29,411


25,250



68,421


67,239


Gain on sale of fixed assets


(826)


(2,220)



(2,407)


(5,139)


Stock-based compensation expense


2,496


1,642



4,762


2,968


Acquisition related costs


5,829


-



6,539


-


Write-off of deferred financing costs


321


-



321


-



Adjusted EBITDA (Non-GAAP)

$

37,231

$

24,672


$

77,636

$

65,068













 

SOURCE Dycom Industries, Inc.



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