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

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.



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