Dycom Announces Fiscal 2011 Third Quarter Results

PALM BEACH GARDENS, Fla., May 24, 2011 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 30, 2011.  The Company reported:

• contract revenues of $252.4 million for the quarter ended April 30, 2011, as compared to $231.6 million for the quarter ended April 24, 2010, an increase of 8.9%;

• net income on a GAAP basis of $1.5 million, or $0.04 per common share diluted, for the quarter ended April 30, 2011, compared to $1.6 million, or $0.04 per common share diluted, for the quarter ended April 24, 2010. On a Non-GAAP basis, net income for the quarter ended April 30, 2011 was $3.4 million, or $0.10 per common share diluted as compared to $0.6 million, or $0.02 per common share diluted, for the three months ended April 24, 2010.  Non-GAAP net income for the three months ended April 30, 2011 excludes a $2.6 million pre-tax loss on debt extinguishment associated with the Company's redemption of its remaining senior subordinated notes due 2015, and 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.  Non-GAAP net income for the three months ended April 24, 2010 excludes the reversal of $1.0 million for certain income tax liabilities that were no longer required; and  

• share repurchases of 1,278,100 shares of its common stock for $21.3 million in open market transactions during the quarter ended April 30, 2011.

The Company also reported:

• contract revenues of $732.1 million for the nine months ended April 30, 2011, as compared to $707.1 million for the nine months ended April 24, 2010, an increase of 3.5%; and

• net income on a GAAP basis of $3.1 million, or $0.09 per common share diluted, for the nine months ended April 30, 2011, compared to $1.2 million, or $0.03 per common share diluted, for the nine months ended April 24, 2010.  On a Non-GAAP basis, net income for the nine months ended April 30, 2011 was $8.9 million, or $0.25 per common share diluted, as compared to $2.1 million, or $0.05 per common share diluted, for the nine months ended April 24, 2010.  Non-GAAP net income for the nine months ended April 30, 2011 excludes a $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 nine months ended April 24, 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, 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.  

See the accompanying tables which present a reconciliation of Non-GAAP net income to GAAP net income.

A Tele-Conference call and slide presentation to review the Company's results will be hosted at 9 a.m. (ET), Wednesday, May 25, 2011; call 800-230-1092 (United States) or 612-234-9960 (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, May 25, 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, June 24, 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.

Fiscal 2011 third quarter 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.