Dycom Industries, Inc. Announces Fiscal 2014 First Quarter Results And Provides Guidance For The Next Fiscal Quarter

PALM BEACH GARDENS, Fla., Nov. 25, 2013 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the first quarter ended October 26, 2013.

The Company reported:

  • Contract revenues of $512.7 million for the quarter ended October 26, 2013, compared to contract revenues of $323.3 million for the quarter ended October 27, 2012. Contract revenues for the quarter ended October 26, 2013 grew 10.0% on an organic basis after excluding $157.1 million of revenue from businesses acquired during fiscal 2013.
  • Adjusted EBITDA (Non-GAAP) of $63.2 million for the quarter ended October 26, 2013, compared to $40.4 million for the quarter ended October 27, 2012.
  • Net income of $18.7 million, or $0.54 per common share diluted, for the quarter ended October 26, 2013, compared to $11.9 million, or $0.35 per common share diluted, for the quarter ended October 27, 2012. On a Non-GAAP basis, net income for the quarter ended October 27, 2012 was $12.3 million, or $0.36 per common share diluted. Non-GAAP net income for the quarter ended October 27, 2012 excludes $0.7 million in pre-tax acquisition related costs.

The Company also announced its outlook for the second quarter of fiscal 2014. The Company currently expects revenue for the second quarter of fiscal 2014 to range from $400.0 million to $420.0 million and diluted earnings per share to range from $0.03 to $0.09.

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, stock-based compensation expense, and certain non-recurring items. 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), Tuesday, November 26, 2013; call (800) 230-1074 (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 November 26, 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 Thursday, December 26, 2013.

For additional detail on selected financial information including organic revenue, customer metrics, and certain other selected financial data and Non-GAAP measures, please refer to the Trend Schedule on Dycom's website at http://www.dycomind.com in the Investor Center.

Dycom is a leading provider of specialty contracting services throughout the United States and in Canada. These services 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 2014 first quarter results are preliminary and are unaudited.  This press release contains 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. The most significant of these risks and uncertainties are described in our Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) and 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 and uncertainties detailed from time to time 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

October 26, 2013 and July 27, 2013

Unaudited








October 26,


July 27,



2013


2013

ASSETS


(Dollars in thousands)

CURRENT ASSETS:





Cash and equivalents

$

14,394

$

18,607

Accounts receivable, net


304,412


252,202

Costs and estimated earnings in excess of billings


221,110


204,349

Inventories


39,273


35,999

Deferred tax assets, net


17,718


16,853

Income taxes receivable


2,231


2,516

Other current assets


16,192


10,608

Total current assets


615,330


541,134






PROPERTY AND EQUIPMENT, NET


203,916


202,703

GOODWILL


267,810


267,810

INTANGIBLE ASSETS, NET


120,021


125,275

OTHER


17,199


17,286

TOTAL NON-CURRENT ASSETS


608,946


613,074

TOTAL ASSETS

$

1,224,276

$

1,154,208






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

68,926

$

77,954

Current portion of debt


8,594


7,813

Billings in excess of costs and estimated earnings


13,347


13,788

Accrued insurance claims


31,528


29,069

Other accrued liabilities


79,453


71,191

Total current liabilities


201,848


199,815











LONG-TERM DEBT


475,735


444,169

ACCRUED INSURANCE CLAIMS


30,114


27,250

DEFERRED TAX LIABILITIES, NET NON-CURRENT


49,603


48,612

OTHER LIABILITIES


5,992


6,001

Total liabilities


763,292


725,847






Total Stockholders' Equity


460,984


428,361

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,224,276

$

1,154,208






 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited








Three Months


Three Months



Ended


Ended



October 26,


October 27,



2013


2012



(Dollars in thousands, except per share amounts)






Contract revenues 

$

512,720

$

323,286






Costs of earned revenues, excluding depreciation and amortization


410,119


257,066

General and administrative expenses (1)


43,075


28,824

Depreciation and amortization


23,552


15,311

Total 


476,746


301,201






Interest expense, net


(6,886)


(4,197)

Other income, net


2,012


1,614






Income before income taxes


31,100


19,502






Provision for income taxes


12,440


7,641






Net income

$

18,660

$

11,861






Earnings per common share:










Basic earnings per common share

$

0.56

$

0.36






Diluted earnings per common share

$

0.54

$

0.35











Shares used in computing income per common share:





   Basic


33,423,678


33,089,959






   Diluted


34,638,998


33,721,070






(1) Includes stock-based compensation expense of $3.5 million and $2.3 million for the three months ended October 26, 2013 and October 27, 2012, respectively.

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited















The below table presents the reconciliation of GAAP contract revenues to Non-GAAP contract revenues adjusted to exclude revenues from subsidiaries acquired during fiscal 2013.

















Contract Revenues - GAAP


Revenues from subsidiaries acquired in fiscal 2013


Contract Revenues - Non-GAAP


%
Growth - GAAP


%
Growth -

Non-GAAP





(Dollars in thousands)




















Three Months Ended October 26, 2013


$    512,720


$       (157,076)


$    355,644


58.6

%

10.0

%















Three Months Ended October 27, 2012


$    323,286


$                   -


$    323,286



















 

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 months ended October 26, 2013 and October 27, 2012 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.





























Three Months


Three Months






Ended


Ended






October 26,


October 27,






2013


2012






(Dollars in thousands)



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








Net income

$

18,660

$

11,861




Interest expense, net


6,886


4,197




Provision for income taxes


12,440


7,641




Depreciation and amortization expense


23,552


15,311




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


61,538


39,010




Gain on sale of fixed assets


(1,865)


(1,581)




Stock-based compensation expense


3,506


2,266




Acquisition related costs


-


710




        Adjusted EBITDA (Non-GAAP)

$

63,179

$

40,405










 

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 months ended October 27, 2012.









Three Months





Ended





October 27,





2012





(Dollars in thousands,
except per share
amounts)







Reconciling Item:





Acquisition related costs, pre-tax

$

710







GAAP net income

$

11,861


Adjustment for Reconciling Item above, net of tax


431


Non-GAAP net income

$

12,292







Earnings per common share:









Basic earnings per common share  - GAAP

$

0.36


Adjustment for Reconciling Item above, net of tax


0.01


Basic earnings per common share - Non-GAAP 

$

0.37







Diluted earnings per common share - GAAP

$

0.35


Adjustment for Reconciling Item above, net of tax


0.01


Diluted earnings per common share - Non-GAAP 

$

0.36







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 Item above:







   Basic


33,089,959







   Diluted


33,721,070







 

SOURCE Dycom Industries, Inc.



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