Dycom Industries, Inc. Announces Fiscal 2015 Fourth Quarter And Annual Results And Provides Guidance For The Next Fiscal Quarter

Aug 25, 2015, 16:08 ET from Dycom Industries, Inc.

PALM BEACH GARDENS, Fla., Aug. 25, 2015 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter and fiscal year ended July 25, 2015.

The Company reported:

  • Contract revenues of $578.5 million for the quarter ended July 25, 2015, compared to $482.1 million for the quarter ended July 26, 2014. Contract revenues for the quarter ended July 25, 2015 grew 18.2% on an organic basis after excluding revenues from acquired businesses that were not owned for the full period in both the current and prior year quarter. Total revenues from acquired businesses were $11.8 million for the quarter ended July 25, 2015, compared to $2.8 million for the quarter ended July 26, 2014.
  • Adjusted EBITDA – Non-GAAP of $88.5 million, or 15.3% of revenue, for the quarter ended July 25, 2015, compared to $57.5 million, or 11.9% of revenue, for the quarter ended July 26, 2014.
  • Net income of $33.8 million, or $0.97 per common share diluted, for the quarter ended July 25, 2015, compared to $16.5 million, or $0.47 per common share diluted, for the quarter ended July 26, 2014. On a Non-GAAP basis, net income was $16.9 million, or $0.48 per common share diluted, for the quarter ended July 26, 2014. Net income – Non-GAAP for the quarter ended July 26, 2014 excludes the impact of pre-tax charges of $0.6 million for a wage and hour class action settlement.

The Company also reported:

  • Contract revenues of $2.022 billion for the fiscal year ended July 25, 2015, compared to $1.812 billion for the fiscal year ended July 26, 2014. Contract revenues for the fiscal year ended July 25, 2015 grew 9.6% on an organic basis after excluding revenues from acquired businesses that were not owned for the full year in both the current and prior year. Total revenues from acquired businesses were $40.4 million for the fiscal year ended July 25, 2015, compared to $2.8 million for the fiscal year ended July 26, 2014.
  • Adjusted EBITDA – Non-GAAP of $265.5 million, or 13.1% of revenue, for the fiscal year ended July 25, 2015 compared to $188.4 million, or 10.4% of revenue, for the fiscal year ended July 26, 2014.
  • Net income of $84.3 million, or $2.41 per common share diluted, for the fiscal year ended July 25, 2015 compared to $40.0 million, or $1.15 per common share diluted, for the fiscal year ended July 26, 2014. On a Non-GAAP basis, net income was $40.3 million, or $1.16 per common share diluted, for the fiscal year ended July 26, 2014. Net income – Non-GAAP for the fiscal year ended July 26, 2014 excludes the impact of pre-tax charges of $0.6 million for a wage and hour class action settlement.

The Company also announced its outlook for the first quarter of fiscal 2016. The Company currently expects total revenue for the first quarter of fiscal 2016 to range from $615 million to $635 million and diluted earnings per share to range from $0.96 to $1.04.

Fiscal 2016 first quarter guidance includes the expected results from recently acquired businesses, including TelCom Construction, Inc. and an affiliate (collectively, "TelCom"). TelCom was acquired on August 7th, 2015 for approximately $48.6 million in cash. It is based in Clearwater, Minnesota, and provides construction and maintenance services for telecommunications providers throughout the United States.

The Company has defined Adjusted EBITDA – Non-GAAP as earnings before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. See the accompanying table which presents 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 26, 2015; call (800) 230-1059 (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 7:00 a.m. (ET) on August 26, 2015. 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, September 25, 2015.

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 26, 2015.

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.

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 2015 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 acquired businesses, 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---

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited



As of 


As of 



July 25, 2015


July 26, 2014

ASSETS


(Dollars in thousands)

Current assets:





Cash and equivalents


$             21,289


$             20,672

Accounts receivable, net


315,134


272,741

Costs and estimated earnings in excess of billings


274,730


230,569

Inventories


48,650


49,095

Deferred tax assets, net


20,630


19,932

Other current assets


16,199


12,727

Total current assets


696,632


605,736






Property and equipment, net 


231,564


205,413

Goodwill and other intangible assets, net


392,579


385,204

Other 


38,089


16,001

Total non-current assets


662,232


606,618

Total assets


$        1,358,864


$        1,212,354






LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities:





Accounts payable


$             71,834


$             63,318

Current portion of debt


3,750


10,938

Billings in excess of costs and estimated earnings


16,896


13,882

Accrued insurance claims


35,824


32,260

Other accrued liabilities


98,406


76,134

Total current liabilities


226,710


196,532






Long-term debt


521,841


446,863

Accrued insurance claims 


51,476


33,782

Deferred tax liabilities, net non-current 


47,388


45,361

Other liabilities 


4,249


4,882

Total liabilities


851,664


727,420






Total stockholders' equity


507,200


484,934

Total liabilities and stockholders' equity 


$        1,358,864


$        1,212,354






 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited












Three Months


Three Months


Fiscal Year


Fiscal Year



Ended


Ended


Ended


Ended



July 25, 2015


July 26, 2014


July 25, 2015


July 26, 2014



(Dollars in thousands, except per share amounts)










Contract revenues 


$               578,479


$               482,071


$            2,022,312


$            1,811,593










Costs of earned revenues, excluding depreciation and amortization


446,114


387,221


1,593,250


1,475,045

General and administrative expenses (a)


47,483


41,058


178,700


161,858

Depreciation and amortization


25,865


23,060


96,044


92,772

Total 


519,462


451,339


1,867,994


1,729,675










Interest expense, net


(6,899)


(6,578)


(27,025)


(26,827)

Other income, net


1,292


3,028


8,291


11,228

Income before income taxes


53,410


27,182


135,584


66,319










Provision for income taxes


19,583


10,693


51,260


26,341










Net income 


$                 33,827


$                 16,489


$                 84,324


$                 39,978










Earnings per common share:


















Basic earnings per common share


$                     1.00


$                     0.49


$                     2.48


$                     1.18










Diluted earnings per common share


$                     0.97


$                     0.47


$                     2.41


$                     1.15



















Shares used in computing earnings per common share:









   Basic


33,936,859


33,965,484


34,045,481


33,773,158










   Diluted


34,830,901


34,960,049


35,026,688


34,816,381










(a) Includes stock-based compensation expense of $3.1 million and $2.9 million for the three months ended July 25, 2015 and July 26, 2014,

      respectively, and $13.9 million and $12.6 million for the fiscal years ended July 25, 2015 and July 26, 2014, 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 and the percentages of growth of GAAP and Non-GAAP contract revenues.












Contract

Revenues -

GAAP


Revenues from

businesses

acquired (a)


Contract

Revenues -
Non-GAAP


%
Growth -

GAAP


%
Growth -

Non-GAAP


(Dollars in thousands)











Three Months Ended July 25, 2015

$        578,479


$        (11,793)


$        566,686


20.0%


18.2%











Three Months Ended July 26, 2014

$        482,071


$          (2,772)


$        479,299















Fiscal Year Ended July 25, 2015

$     2,022,312


$        (40,353)


$     1,981,959


11.6%


9.6%











Fiscal Year Ended July 26, 2014

$     1,811,593


$          (2,772)


$     1,808,821















(a) Amounts for the three months and fiscal year ended July 25, 2015 represent revenues from businesses acquired during fiscal 2015 and the fourth quarter of fiscal 2014. Amounts for the three months and fiscal year ended July 26, 2014 represent revenues from a business acquired during the fourth quarter of fiscal 2014.











 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION (CONTINUED)

Unaudited










The below table presents the Non-GAAP financial measure of Adjusted EBITDA for the three months and fiscal years ended July 25, 2015 and July 26, 2014 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.












Three Months


Three Months


Fiscal Year


Fiscal Year



Ended


Ended


Ended


Ended



July 25, 2015


July 26, 2014


July 25, 2015


July 26, 2014



(Dollars in thousands)

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









Net income 


$           33,827


$           16,489


$         84,324


$         39,978

Interest expense, net


6,899


6,578


27,025


26,827

Provision for income taxes


19,583


10,693


51,260


26,341

Depreciation and amortization expense


25,865


23,060


96,044


92,772

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


86,174


56,820


258,653


185,918

Gain on sale of fixed assets


(861)


(2,802)


(7,110)


(10,706)

Stock-based compensation expense


3,150


2,876


13,923


12,596

Charges for a wage and hour class action litigation settlement


-


600


-


600

Adjusted EBITDA - Non-GAAP


$           88,463


$           57,494


$       265,466


$       188,408










 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION (CONTINUED)

Unaudited






The below table presents a reconciliation of GAAP to Non-GAAP net income for the three months and fiscal year ended July 26, 2014.








Three Months


Fiscal Year



Ended


Ended



July 26, 2014


July 26, 2014



(Dollars in thousands,
except per share amounts)

Reconciling Item:





Charges for a wage and hour class action litigation settlement


$                     (600)


$                     (600)

Total Reconciling Item


$                     (600)


$                     (600)






GAAP net income


$                 16,489


$                 39,978

Adjustment for Reconciling Item above, net of tax


364


364

Net income - Non-GAAP


$                 16,853


$                 40,342






Earnings per common share:










Basic earnings per common share  - GAAP


$                     0.49


$                     1.18

Adjustment for Reconciling Item above, net of tax


0.01


0.01

Basic earnings per common share - Non-GAAP


$                     0.50


$                     1.19






Diluted earnings per common share - GAAP


$                     0.47


$                     1.15

Adjustment for Reconciling Item above, net of tax


0.01


0.01

Diluted earnings per common share - Non-GAAP


$                     0.48


$                     1.16






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


33,965,484


33,773,158






   Diluted


34,960,049


34,816,381






 

SOURCE Dycom Industries, Inc.



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