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

21 May, 2013, 16:16 ET from Dycom Industries, Inc.

PALM BEACH GARDENS, Fla., May 21, 2013 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 27, 2013.

The Company reported:

  • Contract revenues of $437.4 million for the quarter ended April 27, 2013, compared to contract revenues of $296.1 million for the quarter ended April 28, 2012. Contract revenues for the quarter ended April 27, 2013 grew 6.2% on an organic basis after excluding $122.9 million of revenue from subsidiaries acquired from Quanta Services, Inc. on December 3, 2012.
  • Adjusted EBITDA (Non-GAAP) of $44.0 million for the quarter ended April 27, 2013, compared to $29.9 million for the quarter ended April 28, 2012.
  • Net income of $7.2 million, or $0.21 per common share diluted, for the quarter ended April 27, 2013, compared to $9.6 million, or $0.28 per common share diluted, for the quarter ended April 28, 2012. The quarter ended April 27, 2013 included $1.5 million in pre-tax gains on asset sales, as compared to pre-tax gains on asset sales of $7.4 million during the quarter ended April 28, 2012.

The Company also reported:

  • Contract revenues of $1.130 billion for the nine months ended April 27, 2013, compared to contract revenues of $883.1 million for the nine months ended April 28, 2012. Contract revenues for the nine months ended April 27, 2013 grew 4.0% on an organic basis after excluding $198.8 million of revenue from acquired subsidiaries and $16.7 million of revenue for storm restoration services in the nine months ended April 27, 2013 and $3.7 million of revenue from storm restoration services in the nine months ended April 28, 2012.
  • Adjusted EBITDA (Non-GAAP) of $121.7 million for the nine months ended April 27, 2013, compared to $95.0 million for the nine months ended April 28, 2012.
  • Net income on a GAAP basis of $20.5 million, or $0.61 per common share diluted, for the nine months ended April 27, 2013, compared to $26.1 million, or $0.76 per common share diluted, for the nine months ended April 28, 2012. The nine months ended April 27, 2013 included $3.9 million in pre-tax gains on asset sales, as compared to pre-tax gains on asset sales of $12.6 million during the quarter ended April 28, 2012. On a Non-GAAP basis, net income for the nine months ended April 27, 2013 was $24.7 million, or $0.73 per common share diluted. The Non-GAAP net income for the nine months ended April 27, 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 also announced its outlook for the fourth quarter of fiscal 2013. The Company currently expects revenue for the fourth quarter of fiscal 2013 to range from $455.0 million to $475.0 million and diluted earnings per share to range from $0.40 to $0.47.

Fiscal 2013 third quarter results are preliminary and are unaudited.  In addition, the purchase price allocation of the tangible and intangible assets acquired and liabilities assumed with the businesses acquired in December 2012 is preliminary and is subject to change.

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.

A conference call to review the Company's results will be hosted at 9 a.m. (ET), Wednesday, May 22, 2013; call (800) 230-1074 (United States) or (612) 234-9960 (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 22, 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, June 21, 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.  Such statements include, but are not limited to, the Company's expectations for revenues and earnings per share.  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.

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

April 27, 2013 and July 28, 2012

Unaudited

April 27,

July 28,

2013

2012

ASSETS

(Dollars in thousands)

CURRENT ASSETS:

Cash and equivalents

$

18,247

$

52,581

Accounts receivable, net

234,037

141,788

Costs and estimated earnings in excess of billings

183,920

127,321

Inventories

35,047

26,274

Deferred tax assets, net

16,622

15,633

Income taxes receivable

907

4,884

Other current assets

13,014

8,466

Total current assets

501,794

376,947

PROPERTY AND EQUIPMENT, NET

189,145

158,247

GOODWILL

260,708

174,849

INTANGIBLE ASSETS, NET

127,252

49,773

OTHER

18,294

12,377

TOTAL NON-CURRENT ASSETS

595,399

395,246

TOTAL ASSETS

$

1,097,193

$

772,193

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

64,509

$

36,823

Current portion of debt

7,031

74

Billings in excess of costs and estimated earnings

12,370

1,522

Accrued insurance claims

28,229

25,218

Other accrued liabilities

64,908

50,926

Total current liabilities

177,047

114,563

LONG-TERM DEBT (including debt premium of $3.7 million at April 27, 2013)

433,601

187,500

ACCRUED INSURANCE CLAIMS

26,394

23,591

DEFERRED TAX LIABILITIES, NET NON-CURRENT

46,691

49,537

OTHER LIABILITIES

4,637

4,071

Total liabilities

688,370

379,262

Total Stockholders' Equity

408,823

392,931

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,097,193

$

772,193

 

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

Three Months

Three Months

Nine Months

Nine Months

Ended

Ended

Ended

Ended

April 27,

April 28,

April 27,

April 28,

2013

2012

2013

2012

(Dollars in thousands, except per share amounts)

Contract revenues 

$

437,367

$

296,103

$

1,129,980

$

883,085

Costs of earned revenues, excluding depreciation and amortization

357,664

241,386

916,247

716,812

General and administrative expenses (1)

38,205

26,956

105,857

76,589

Depreciation and amortization

24,531

15,561

60,660

47,047

Total 

420,400

283,903

1,082,764

840,448

Interest expense, net

(6,637)

(4,178)

(16,582)

(12,528)

Other income, net

1,477

7,627

3,519

12,943

Income before income taxes

11,807

15,649

34,153

43,052

Provision for income taxes

4,608

6,004

13,631

16,956

Net income

$

7,199

$

9,645

$

20,522

$

26,096

Earnings per common share:

Basic earnings per common share

$

0.22

$

0.29

$

0.62

$

0.78

Diluted earnings per common share

$

0.21

$

0.28

$

0.61

$

0.76

Shares used in computing income per common share:

   Basic

33,033,740

33,741,255

32,968,897

33,669,974

   Diluted

33,842,150

34,682,891

33,684,974

34,516,902

(1) Includes stock-based compensation expense of $2.5 million and $1.9 million for the three months ended April 27, 2013 and April 28, 2012, respectively, and $7.3 million and $4.9 million for the nine months ended April 27, 2013 and April 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 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 April 27, 2013

$    437,367

$       (122,898)

$                    -

$    314,469

47.7

%

6.2

%

Three Months Ended April 28, 2012

$    296,103

$                    -

$                    -

$    296,103

Nine Months Ended April 27, 2013

$ 1,129,980

$       (198,844)

$         (16,721)

$    914,415

28.0

%

4.0

%

Nine Months Ended April 28, 2012

$    883,085

$                    -

$           (3,729)

$    879,356

 

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 nine months ended April 27, 2013 and April 28, 2012.

Nine Months

Nine Months

Ended

Ended

April 27,

April 28,

2013

2012

Reconciling Items:

Acquisition related costs

$

(6,539)

$

-

Write-off of deferred financing costs

(321)

-

Total Reconciling Items

$

(6,860)

$

-

GAAP net income

$

20,522

$

26,096

Adjustment for Reconciling Items above, net of tax

4,154

-

Non-GAAP net income

$

24,676

$

26,096

Earnings per common share:

Basic earnings per common share  - GAAP

$

0.62

$

0.78

Adjustment for Reconciling Items above, net of tax

0.13

-

Basic earnings per common share - Non-GAAP 

$

0.75

$

0.78

Diluted earnings per common share - GAAP

$

0.61

$

0.76

Adjustment for Reconciling Items above, net of tax

0.12

-

Diluted earnings per common share - Non-GAAP 

$

0.73

$

0.76

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

32,968,897

33,669,974

   Diluted

33,684,974

34,516,902

 

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 27, 2013 and April 28, 2012 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 27,

April 28,

April 27,

April 28,

2013

2012

2013

2012

(Dollars in thousands)

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

Net income

$

7,199

$

9,645

$

20,522

$

26,096

Interest expense, net

6,637

4,178

16,582

12,528

Provision for income taxes

4,608

6,004

13,631

16,956

Depreciation and amortization expense

24,531

15,561

60,660

47,047

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

42,975

35,388

111,395

102,627

Gain on sale of fixed assets

(1,459)

(7,439)

(3,867)

(12,578)

Stock-based compensation expense

2,513

1,933

7,275

4,901

Acquisition related costs

-

-

6,539

-

Write-off of deferred financing costs

-

-

321

-

        Adjusted EBITDA (Non-GAAP)

$

44,029

$

29,882

$

121,663

$

94,950

 

 

SOURCE Dycom Industries, Inc.



RELATED LINKS

http://www.dycomind.com