2014

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

PALM BEACH GARDENS, Fla., May 20, 2014 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 26, 2014.

The Company reported:

  • Contract revenues of $426.3 million for the quarter ended April 26, 2014, compared to $437.4 million for the quarter ended April 27, 2013.
  • Adjusted EBITDA (Non-GAAP) of $39.6 million for the three months ended April 26, 2014, compared to $44.0 million for the three months ended April 27, 2013.
  • Net income of $7.9 million, or $0.23 per common share diluted, for the quarter ended April 26, 2014, compared to $7.2 million, or $0.21 per common share diluted, for the quarter ended April 27, 2013.

The Company also reported:

  • Contract revenues of $1.330 billion for the nine months ended April 26, 2014, compared to $1.130 billion for the nine months ended April 27, 2013. Contract revenues for the nine months ended April 26, 2014 grew 4.6% on an organic basis after excluding revenues from businesses acquired in fiscal 2013 in both periods and $16.7 million of revenues for storm restoration services in the nine months ended April 27, 2013. Total revenues from businesses acquired in fiscal 2013 were $373.2 million and $198.8 million for the nine months ended April 26, 2014 and April 27, 2013, respectively.
  • Adjusted EBITDA (Non-GAAP) of $130.9 million for the nine months ended April 26, 2014, compared to $121.7 million for the nine months ended April 27, 2013.
  • Net income of $23.5 million, or $0.68 per common share diluted, for the nine months ended April 26, 2014, compared to $20.5 million, or $0.61 per common share diluted, for the nine months ended April 27, 2013. 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 2014. The Company currently expects revenue for the fourth quarter of fiscal 2014 to range from $475.0 million to $495.0 million and diluted earnings per share to range from $0.43 to $0.50.

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, 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, May 21, 2014; call (800) 288-8975 (United States) or (612) 332-0335 (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 May 21, 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 Friday, June 20, 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 May 21, 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 third 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, 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

April 26, 2014 and July 27, 2013

Unaudited








April 26,


July 27,



2014


2013

ASSETS


(Dollars in thousands)

CURRENT ASSETS:





Cash and equivalents

$

18,722

$

18,607

Accounts receivable, net


233,276


252,202

Costs and estimated earnings in excess of billings


198,581


204,349

Inventories


42,512


35,999

Deferred tax assets, net


17,156


16,853

Income taxes receivable


12,287


2,516

Other current assets


18,656


10,608

Total current assets


541,190


541,134






PROPERTY AND EQUIPMENT, NET


205,703


202,703

GOODWILL


267,810


267,810

INTANGIBLE ASSETS, NET


111,819


125,275

OTHER


16,254


17,286

TOTAL NON-CURRENT ASSETS


601,586


613,074

TOTAL ASSETS

$

1,142,776

$

1,154,208






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

62,985

$

77,954

Current portion of debt


10,156


7,813

Billings in excess of costs and estimated earnings


13,401


13,788

Accrued insurance claims


32,567


29,069

Other accrued liabilities


69,758


71,191

Total current liabilities


188,867


199,815











LONG-TERM DEBT


403,082


444,169

ACCRUED INSURANCE CLAIMS


32,027


27,250

DEFERRED TAX LIABILITIES, NET NON-CURRENT


47,915


48,612

OTHER LIABILITIES


5,960


6,001

Total liabilities


677,851


725,847






Total Stockholders' Equity


464,925


428,361

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,142,776

$

1,154,208






 

NYSE: "DY"

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited












Three Months


Three Months


Nine Months


Nine Months



Ended


Ended


Ended


Ended



April 26,


April 27,


April 26,


April 27,



2014


2013


2014


2013



(Dollars in thousands, except per share amounts)










Contract revenues 

$

426,284

$

437,367

$

1,329,522

$

1,129,980










Costs of earned revenues, excluding depreciation and amortization


350,352


357,664


1,087,824


916,247

General and administrative expenses (1)


39,162


38,205


120,799


105,857

Depreciation and amortization


22,726


24,531


69,713


60,660

Total 


412,240


420,400


1,278,336


1,082,764










Interest expense, net


(6,563)


(6,637)


(20,249)


(16,582)

Other income, net


5,593


1,477


8,200


3,519










Income before income taxes


13,074


11,807


39,137


34,153










Provision for income taxes


5,179


4,608


15,649


13,631










Net income

$

7,895

$

7,199

$

23,488

$

20,522










Earnings per common share:


















Basic earnings per common share

$

0.23

$

0.22

$

0.70

$

0.62










Diluted earnings per common share

$

0.23

$

0.21

$

0.68

$

0.61



















Shares used in computing income per common share:









   Basic


33,860,832


33,033,740


33,707,957


32,968,897










   Diluted


34,763,035


33,842,150


34,767,400


33,684,974










(1) Includes stock-based compensation expense of $2.7 million and $2.5 million for the three months ended April 26, 2014 and April 27, 2013, respectively, and $9.7 million and $7.3 million for the nine months ended April 26, 2014 and April 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 (decline) of GAAP and Non-GAAP contract revenues.



















Contract Revenues - GAAP


Revenues from businesses acquired (1)


Revenues from storm restoration services (1)


Contract Revenues - Non-GAAP (1)


%
Growth (decline) - GAAP


%
Growth

(decline) -

Non-GAAP





(Dollars in thousands)






















Three Months Ended April 26, 2014


$    426,284


$           (5,545)


$              -


$    420,739


(2.5)

%

(3.8)

%

















Three Months Ended April 27, 2013


$    437,367


$                   -


$              -


$    437,367






















Nine Months Ended April 26, 2014


$ 1,329,522


$       (373,223)


$              -


$    956,299


17.7

%

4.6

%

















Nine Months Ended April 27, 2013


$ 1,129,980


$       (198,844)


$    (16,721)


$    914,415






















(1) For the three months ended April 26, 2014, the Non-GAAP decline % is adjusted for revenues from businesses acquired during the fourth quarter of fiscal 2013. For the nine months ended April 26, 2014, the Non-GAAP growth % is adjusted for revenues from businesses acquired during fiscal 2013, as the revenues were not included in both the current year and prior year full period, and storm restoration service revenues, if any.


 

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 nine months ended April 26, 2014 and April 27, 2013 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 26,


April 27,



April 26,


April 27,





2014


2013



2014


2013





(Dollars in thousands)


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











Net income

$

7,895

$

7,199


$

23,488

$

20,522



Interest expense, net


6,563


6,637



20,249


16,582



Provision for income taxes


5,179


4,608



15,649


13,631



Depreciation and amortization expense


22,726


24,531



69,713


60,660



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


42,363


42,975



129,099


111,395



Gain on sale of fixed assets


(5,469)


(1,459)



(7,904)


(3,867)



Stock-based compensation expense


2,671


2,513



9,721


7,275



Acquisition related costs


-


-



-


6,539



Write-off of deferred financing costs


-


-



-


321



Adjusted EBITDA (Non-GAAP)

$

39,565

$

44,029


$

130,916

$

121,663

























 

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 nine months ended April 27, 2013.
















Nine Months Ended




April 27, 2013



(Dollars in thousands, except per share amounts)





Reconciling Items:




Acquisition related costs, pre-tax

$

(6,539)


Write-off of deferred financing costs


(321)

Total Reconciling Items

$

(6,860)





GAAP net income

$

20,522

Adjustment for Reconciling Items above, net of tax


4,154

Non-GAAP net income

$

24,676





Earnings per common share:







Basic earnings per common share  - GAAP

$

0.62

Adjustment for Reconciling Items above, net of tax


0.13

Basic earnings per common share - Non-GAAP 

$

0.75





Diluted earnings per common share - GAAP

$

0.61

Adjustment for Reconciling Items above, net of tax


0.12

Diluted earnings per common share - Non-GAAP 

$

0.73





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





   Diluted


33,684,974





 

SOURCE Dycom Industries, Inc.



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