Dycom Announces Fiscal 2011 Fourth Quarter and Annual Results

PALM BEACH GARDENS, Fla., Aug. 23, 2011 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fiscal 2011 fourth quarter and year ended July 30, 2011.  Dycom utilizes a 52/53 week fiscal year ending on the last Saturday in July; as a result, the fourth quarter of fiscal 2011 contained 13 weeks compared to 14 weeks in the fourth quarter of fiscal 2010.

The Company reported:

• contract revenues of $303.7 million for the quarter ended July 30, 2011, compared to $281.5 million for the quarter ended July 31, 2010, an increase of 10.8% after adjusting for revenues from acquired businesses and the incremental week in the fourth quarter of fiscal 2010;
• Adjusted EBITDA (Non-GAAP) of $39.9 million for the quarter ended July 30, 2011, compared to $28.2 million for the quarter ended July 31, 2010;
• net income of $13.0 million, or $0.38 per common share diluted, for the quarter ended July 30, 2011, compared to $4.6 million, or $0.12 per common share diluted, for the quarter ended July 31, 2010; and  
• share repurchases of 580,000 shares of its common stock for $9.1 million in open market transactions during the quarter ended July 30, 2011.

The Company also reported:

• contract revenues of $1,035.9 million for the fiscal year ended July 30, 2011, compared to $988.6 million for the fiscal year ended July 31, 2010, an increase of 3.5% after adjusting for revenues from acquired businesses and the incremental week in the fourth quarter of fiscal 2010;
• Adjusted EBITDA (Non-GAAP) of $110.2 million for the fiscal year ended July 30, 2011, compared to $85.7 million for the fiscal year ended July 31, 2010; and
• net income on a GAAP basis of $16.1 million, or $0.45 per common share diluted, for the fiscal year ended July 30, 2011, compared to $5.8 million, or $0.15 per common share diluted, for the fiscal year ended July 31, 2010.  On a Non-GAAP basis, net income for the fiscal year ended July 30, 2011 was $21.9 million, or $0.61 per common share diluted, as compared to $6.8 million, or $0.17 per common share diluted, for the fiscal year ended July 31, 2010.  

Non-GAAP net income for the fiscal year ended July 30, 2011 excludes an $8.3 million pre-tax loss on debt extinguishment associated with the Company's tender offer and redemption of its senior subordinated notes due 2015, a $0.6 million pre-tax charge in cost of earned revenues for the proposed settlement of the Company's outstanding wage and hour class action litigation, and $0.2 million in pre-tax acquisition related costs.  Non-GAAP net income for the fiscal year ended July 31, 2010 excludes a $1.6 million pre-tax charge in cost of earned revenues for the settlement of a wage and hour class action claim.  Additionally, Non-GAAP net income for the fiscal year ended July 31, 2010 excludes a $1.1 million non-cash charge to income tax expense for a valuation allowance against a deferred tax asset, and the reversal of $1.0 million for certain income tax liabilities that were no longer required.  

The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization.  Non-GAAP Adjusted EBITDA excludes from EBITDA those items that were excluded in determining Non-GAAP net income.  In addition, Non-GAAP Adjusted EBITDA excludes gain on sale of fixed assets and stock-based compensation expense for the respective periods.

A Tele-Conference call and slide presentation to review the Company's results will be hosted at 9 a.m. (ET), Wednesday, August 24, 2011; call 800-230-1096 (United States) or 612-288-0337 (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 the slide presentation, will be available at http://www.dycomind.com under the heading "Events."  The slide presentation will be available at approximately 8 a.m. (ET) on Wednesday, August 24, 2011.  If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the slide presentation will be available at http://www.dycomind.com until Friday, September 23, 2011.

Dycom is a leading provider of specialty contracting services throughout the United States.  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 periods.  See the accompanying tables which present a reconciliation of Non-GAAP to GAAP financial information.  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 2011 fourth quarter and annual results are preliminary and are unaudited.  This press release may contain 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.  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, 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 detailed in our filings with the Securities and Exchange Commission.  The Company does not undertake to update forward-looking statements.

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SOURCE Dycom Industries, Inc.