Dycom Industries, Inc. Announces Fiscal 2013 Second Quarter Results

26 Feb, 2013, 16:24 ET from Dycom Industries, Inc.

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.



RELATED LINKS

http://www.dycomind.com