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

PALM BEACH GARDENS, Fla., Aug. 26, 2014 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter and fiscal year ended July 26, 2014.

The Company reported:

  • Contract revenues of $482.1 million for the quarter ended July 26, 2014, compared to $478.6 million for the quarter ended July 27, 2013.
  • Adjusted EBITDA – Non-GAAP of $57.5 million for the quarter ended July 26, 2014, compared to $58.1 million for the quarter ended July 27, 2013.
  • Net income – Non-GAAP was $16.9 million, or $0.48 per common share diluted, for the quarter ended July 26, 2014, compared to $15.1 million, or $0.44 per common share diluted for the quarter ended July 27, 2013. Net income – Non-GAAP excludes the impact of pre-tax charges of $0.6 million and $0.5 million for wage and hour class action settlements for the quarter ended July 26, 2014 and July 27, 2013, respectively. Net income – Non-GAAP for the quarter ended July 27, 2013 also excludes the impact of $0.2 million in pre-tax acquisition related costs. Net income on a GAAP basis was $16.5 million, or $0.47 per common share diluted, for the quarter ended July 26, 2014, compared to $14.7 million, or $0.43 per common share diluted, for the quarter ended July 27, 2013.

The Company also reported:

  • Contract revenues of $1.812 billion for the fiscal year ended July 26, 2014, compared to $1.609 billion for the fiscal year ended July 27, 2013. Contract revenues for the fiscal year ended July 26, 2014 grew 4.7% on an organic basis after excluding revenues from businesses acquired that were not included for the full period in both the current and the prior year periods, and $16.7 million of revenues for storm restoration services in the fiscal year ended July 27, 2013. Total revenues from these businesses acquired were $499.3 million and $337.9 million for the fiscal year ended July 26, 2014 and July 27, 2013 respectively.
  • Adjusted EBITDA – Non-GAAP of $188.4 million for the fiscal year ended July 26, 2014, compared to $179.8 million for the fiscal year ended July 27, 2013.
  • Net income – Non-GAAP was $40.3 million, or $1.16 per common share diluted, for the fiscal year ended July 26, 2014, compared to $39.8 million, or $1.18 per common share diluted, for the fiscal year ended July 27, 2013. Net income – Non-GAAP excludes the impact of pre-tax charges of $0.6 million and $0.5 million for wage and hour class action settlements for the fiscal year ended July 26, 2014 and July 27, 2013, respectively. Net income – Non-GAAP for the fiscal year ended July 27, 2013 also excludes the impact of $6.8 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. Net income on a GAAP basis was $40.0 million, or $1.15 per common share diluted, for the fiscal year ended July 26, 2014, compared to $35.2 million, or $1.04 per common share diluted, for the fiscal year ended July 27, 2013.

The Company also announced its outlook for the first quarter of fiscal 2015. The Company currently expects total revenue for the first quarter of fiscal 2015 to range from $490 million to $510 million and diluted earnings per share to range from $0.45 to $0.52.

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, charges for wage and hour class action settlements, 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 9:00 a.m. (ET), Wednesday, August 27, 2014; call (800) 230-1074 (United States) or (612) 288-0329 (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 7:00 a.m. (ET) on August 27, 2014. 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 Saturday, September 27, 2014.

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. The Trend Schedule will be available at approximately 7:00 a.m. (ET) on August 27, 2014.

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 fourth quarter and full year 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, 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---

 

 

NYSE: "DY"

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

July 26, 2014 and July 27, 2013

Unaudited








July 26,


July 27,



2014


2013

ASSETS


(Dollars in thousands)

CURRENT ASSETS:





Cash and equivalents

$

20,672

$

18,607

Accounts receivable, net


272,741


252,202

Costs and estimated earnings in excess of billings


230,569


204,349

Inventories


49,095


35,999

Deferred tax assets, net


16,846


16,853

Other current assets


12,727


13,124

Total current assets


602,650


541,134






PROPERTY AND EQUIPMENT, NET


205,413


202,703

GOODWILL


269,088


267,810

INTANGIBLE ASSETS, NET


116,116


125,275

OTHER


16,001


17,286

TOTAL NON-CURRENT ASSETS


606,618


613,074

TOTAL ASSETS

$

1,209,268

$

1,154,208






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

63,318

$

77,954

Current portion of debt


10,938


7,813

Billings in excess of costs and estimated earnings


13,882


13,788

Accrued insurance claims


32,260


29,069

Other accrued liabilities


76,134


71,191

Total current liabilities


196,532


199,815











LONG-TERM DEBT


446,863


444,169

ACCRUED INSURANCE CLAIMS


33,782


27,250

DEFERRED TAX LIABILITIES, NET NON-CURRENT


42,274


48,612

OTHER LIABILITIES


4,882


6,001

Total liabilities


724,333


725,847






Total Stockholders' Equity


484,935


428,361

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,209,268

$

1,154,208






 

 

NYSE: "DY"

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited












Three Months


Three Months


Twelve Months


Twelve Months



Ended


Ended


Ended


Ended



July 26,


July 27,


July 26,


July 27,



2014


2013


2014


2013



(Dollars in thousands, except per share amounts)










Contract revenues 

$

482,071

$

478,632

$

1,811,593

$

1,608,612










Costs of earned revenues, excluding depreciation and amortization


387,221


384,169


1,475,045


1,300,416

General and administrative expenses (a)


41,058


39,914


161,858


145,771

Depreciation and amortization


23,060


24,820


92,772


85,481

Total 


451,339


448,903


1,729,675


1,531,668










Interest expense, net


(6,578)


(6,752)


(26,827)


(23,334)

Other income, net


3,028


1,069


11,228


4,589










Income before income taxes


27,182


24,046


66,319


58,199










Provision for income taxes


10,693


9,380


26,341


23,011










Net income

$

16,489

$

14,666

$

39,978

$

35,188










Earnings per common share:


















Basic earnings per common share

$

0.49

$

0.44

$

1.18

$

1.07










Diluted earnings per common share

$

0.47

$

0.43

$

1.15

$

1.04



















Shares used in computing income per common share:









   Basic


33,965,484


33,141,347


33,773,158


33,012,595










   Diluted


34,960,049


34,082,228


34,816,381


33,782,187










(a) Includes stock-based compensation expense of $2.9 million and $2.6 million for the three months ended July 26, 2014 and July 27, 2013, respectively, and $12.6 million and $9.9 million for the twelve months ended July 26, 2014 and July 27, 2013, respectively.

 

 

NYSE: "DY"

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 and the percentages of growth of GAAP and Non-GAAP contract revenues.



















Contract
Revenues -
GAAP


Revenues from
businesses
acquired (a)


Revenues
from storm
restoration
services


Contract
Revenues -
Non-GAAP


%
Growth -
GAAP


%
Growth -
Non-GAAP





(Dollars in thousands)






















Three Months Ended July 26, 2014


$    482,071


$           (9,488)


$                 -


$    472,583


0.7

%

(0.7)

%

















Three Months Ended July 27, 2013


$    478,632


$           (2,562)


$                 -


$    476,070






















Twelve Months Ended July 26, 2014


$ 1,811,593


$       (499,263)


$                 -


$ 1,312,330


12.6

%

4.7

%

















Twelve Months Ended July 27, 2013


$ 1,608,612


$       (337,923)


$     (16,721)


$ 1,253,968






















(a) Amounts for the three months ended July 26, 2014 and July 27, 2013 represent revenues from businesses acquired during the fourth quarter of fiscal 2013 and 2014. Amounts for the twelve months ended July 26, 2014 and July 27, 2013 represent revenues from businesses acquired during fiscal 2013 and 2014.

 

 

NYSE: "DY"

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 twelve months ended July 26, 2014 and July 27, 2013 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.






































Three Months


Three Months


Twelve Months


Twelve Months





Ended


Ended


Ended


Ended





July 26,


July 27,


July 26,


July 27,





2014


2013


2014


2013





(Dollars in thousands)


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











Net income

$

16,489

$

14,666

$

39,978

$

35,188



Interest expense, net


6,578


6,752


26,827


23,334



Provision for income taxes


10,693


9,380


26,341


23,011



Depreciation and amortization expense


23,060


24,820


92,772


85,481



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


56,820


55,618


185,918


167,014



Gain on sale of fixed assets


(2,802)


(816)


(10,706)


(4,683)



Stock-based compensation expense


2,876


2,628


12,596


9,902



Charges for wage and hour class action litigation settlements


600


495


600


495



Acquisition related costs


-


224


-


6,763



Write-off of deferred financing costs


-


-


-


321



Adjusted EBITDA - Non-GAAP

$

57,494

$

58,149

$

188,408

$

179,812

 

 

NYSE: "DY"

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 twelve months ended July 26, 2014 and July 27, 2013.















Three Months


Three Months


Twelve Months



Twelve Months




Ended


Ended


Ended



Ended




July 26,


July 27,


July 26,



July 27,




2014


2013


2014



2013




(Dollars in thousands, except per share amounts)












Reconciling Items:











Charges for wage and hour class action litigation settlements

$

(600)

$

(495)

$

(600)


$

(495)


Acquisition related costs, pre-tax


-


(224)


-



(6,763)


Write-off of deferred financing costs


-


-


-



(321)

Total Reconciling Items

$

(600)

$

(719)

$

(600)


$

(7,579)












GAAP net income

$

16,489

$

14,666

$

39,978


$

35,188

Adjustment for Reconciling Items above, net of tax


364


435


364



4,589

Net income - Non-GAAP

$

16,853

$

15,101

$

40,342


$

39,777












Earnings per common share:





















Basic earnings per common share  - GAAP

$

0.49

$

0.44

$

1.18


$

1.07

Adjustment for Reconciling Items above, net of tax


0.01


0.01


0.01



0.14

Basic earnings per common share - Non-GAAP

$

0.50

$

0.46

$

1.19


$

1.20












Diluted earnings per common share - GAAP

$

0.47

$

0.43

$

1.15


$

1.04

Adjustment for Reconciling Items above, net of tax


0.01


0.01


0.01



0.14

Diluted earnings per common share - Non-GAAP

$

0.48

$

0.44

$

1.16


$

1.18












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


33,965,484


33,141,347


33,773,158



33,012,595












   Diluted


34,960,049


34,082,228


34,816,381



33,782,187












 

SOURCE Dycom Industries, Inc.



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