Dycom Industries, Inc. Announces Fiscal 2012 Second Quarter Results

News provided by

Dycom Industries, Inc.

Feb 28, 2012, 04:10 ET

PALM BEACH GARDENS, Fla., Feb. 28, 2012 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 28, 2012.  

The Company reported:

  • Contract revenues of $267.4 million for the quarter ended January 28, 2012, compared to $218.2 million for the quarter ended January 29, 2011, an increase of 19.2% after adjusting for revenues in each period from businesses acquired during the second quarter of fiscal 2011;
  • Adjusted EBITDA (Non-GAAP) of $24.7 million for the quarter ended January 28, 2012, compared to $16.2 million for the quarter ended January 29, 2011; and
  • Net income on a GAAP basis of $3.5 million, or $0.10 per common share diluted, for the quarter ended January 28, 2012, compared to a net loss on a GAAP basis of $5.1 million, or $0.14 loss per common share diluted, for the quarter ended January 29, 2011. On a Non-GAAP basis, the net loss for the quarter ended January 29, 2011 was $1.2 million, or $0.03 per common share diluted.  This Non-GAAP net loss excludes a $5.7 million pre-tax loss on debt extinguishment associated with the Company's fiscal 2011 tender offer for its 8.125% senior subordinated notes due 2015, and $0.2 million in pre-tax acquisition related costs.

The Company also reported:

  • Contract revenues of $587.0 million for the six months ended January 28, 2012, compared to $479.8 million for the six months ended January 29, 2011, an increase of 17.8% after adjusting for revenues in each period from businesses acquired during the second quarter of fiscal 2011;
  • Adjusted EBITDA (Non-GAAP) of $65.1 million for the six months ended January 28, 2012, compared to $46.6 million for the six months January 29, 2011; and
  • Net income on a GAAP basis of $16.5 million, or $0.48 per common share diluted, for the six months ended January 28, 2012, compared to $1.7 million, or $0.05 per common share diluted, for the six months ended January 29, 2011. On a Non-GAAP basis, net income for the six months ended January 29, 2011 was $5.5 million, or $0.15 per common share diluted. Non-GAAP net income for the six months ended January 29, 2011 excludes a $5.7 million pre-tax loss on debt extinguishment associated with the Company's fiscal 2011 tender offer for its 8.125% senior subordinated notes due 2015, and $0.2 million in pre-tax acquisition related costs.  

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, loss on debt extinguishment, and acquisition related costs. 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 a.m. (ET), Wednesday, February 29, 2012; call 800-553-5260 (United States) or 612-332-0820 (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 8 a.m. (ET) on February 29, 2012. 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, March 30, 2012.

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 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 2012 second 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.

---Tables Follow---

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

January 28, 2012 and July 30, 2011

Unaudited







January 28,

July 30,


2012

2011

ASSETS

(Dollars in thousands)

CURRENT ASSETS:



Cash and equivalents

$

86,195

$

44,766

Accounts receivable, net

102,698

138,552

Costs and estimated earnings in excess of billings

83,493

90,855

Inventories

30,263

20,558

Deferred tax assets, net

15,393

15,957

Income taxes receivable

4,437

8,685

Other current assets

12,641

10,938

Total current assets

335,120

330,311





PROPERTY AND EQUIPMENT, NET

156,315

149,439

GOODWILL

174,849

174,849

INTANGIBLE ASSETS, NET

52,972

56,279

OTHER

12,846

13,877

TOTAL NON-CURRENT ASSETS

396,982

394,444

TOTAL ASSETS

$

732,102

$

724,755





LIABILITIES AND STOCKHOLDERS' EQUITY



CURRENT LIABILITIES:



Accounts payable

$

31,602

$

39,399

Current portion of debt

167

232

Billings in excess of costs and estimated earnings

1,307

749

Accrued insurance claims

24,999

26,092

Other accrued liabilities

41,355

52,041

Total current liabilities

99,430

118,513





LONG-TERM DEBT

187,500

187,574

ACCRUED INSURANCE CLAIMS

22,642

23,344

DEFERRED TAX LIABILITIES, NET NON-CURRENT

42,883

39,923

OTHER LIABILITIES

3,752

3,550

Total liabilities

356,207

372,904





Total Stockholders' Equity

375,895

351,851

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

732,102

$

724,755

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited











Three Months

Three Months

Six Months

Six Months


Ended

Ended

Ended

Ended


January 28,

January 29,

January 28,

January 29,


2012

2011

2012

2011


(Dollars in thousands, except per share amounts)









Contract revenues

$

267,407

 $

218,203

 $

586,981

$

479,787









Costs of earned revenues, excluding depreciation and amortization

220,239

181,621

475,426

390,943

General and administrative expenses (1)

24,275

21,835

49,633

44,660

Depreciation and amortization

15,528

15,787

31,486

31,403

Total


260,042

219,243

556,545

467,006









Interest income

8

34

25

63

Interest expense

(4,185)

(3,773)

(8,375)

(7,481)

Loss on debt extinguishment

-

(5,738)

-

(5,738)

Other income, net

2,357

2,207

5,317

3,964









Income (loss) before income taxes

5,545

(8,310)

27,403

3,589









Provision (benefit) for income taxes

2,060

(3,216)

10,952

1,936









Net income (loss)

$

3,485

$

(5,094)

$

16,451

$

1,653









Earnings (loss) per common share:
















Basic earnings (loss) per common share

$

0.10

$

(0.14)

$

0.49

$

0.05









Diluted earnings (loss) per common share

$

0.10

$

(0.14)

$

0.48

$

0.05


















Shares used in computing income (loss) per common share:







  Basic

33,759,015

35,221,017

33,633,596

36,343,068









  Diluted

34,636,520

35,221,017

34,431,419

36,566,672









(1) Includes stock-based compensation expense of $1.6 million and $3.0 million for the three and six months ended January 28, 2012, respectively, and $1.0 million and $1.8 million for the three and six months ended January 29, 2011, respectively.

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited














Three Months

Three Months

Six Months

Six Months



Ended

Ended

Ended

Ended



January 28,

January 29,

January 28,

January 29,



2012

2011

2012

2011



(Dollars in thousands, except per share amounts)











Pre-Tax Reconciling Items decreasing net income (loss)









Loss on debt extinguishment

$

-

$

(5,738)

$

-

$

(5,738)

Acquisition related costs

-

(223)

-

(223)

Total Reconciling Items

$

-

$

(5,961)

$

-

$

(5,961)






















GAAP net income (loss)

$

3,485

$

(5,094)

$

16,451

$

1,653

Adjustment for Reconciling Items above, net of tax

-

3,875

-

3,875

Non-GAAP net income (loss)

$

3,485

$

(1,219)

$

16,451

$

5,528











Earnings (loss) per common share:



















Basic earnings (loss) per common share  - GAAP

$

0.10

$

(0.14)

$

0.49

$

0.05

Adjustment for Reconciling Items above, net of tax

-

0.11

-

0.11

Basic earnings (loss) per common share - Non-GAAP

$

0.10

$

(0.03)

$

0.49

$

0.15











Diluted earnings (loss) per common share - GAAP

$

0.10

$

(0.14)

$

0.48

$

0.05

Adjustment for Reconciling Items above, net of tax

-

0.11

-

0.11

Diluted earnings (loss) per common share - Non-GAAP

$

0.10

$

(0.03)

$

0.48

$

0.15











Earnings (loss) per share amounts may not add due to rounding.



















Shares used in computing GAAP and Non-GAAP earnings (loss) per common share and adjustment for Reconciling Items above:











  Basic

33,759,015

35,221,017

33,633,596

36,343,068











  Diluted

34,636,520

35,221,017

34,431,419

36,566,672











DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited











The below table presents the Non-GAAP financial measure of Adjusted EBITDA for the three and six months ended January 28, 2012 and January 29, 2011 and a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.














Three Months

Three Months

Six Months

Six Months



Ended

Ended

Ended

Ended



January 28,

January 29,

January 28,

January 29,



2012

2011

2012

2011



(Dollars in thousands)

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









Net income

$

3,485

$

(5,094)

$

16,451

$

1,653

Interest expense, net

4,177

3,739

8,350

7,418

Provision for income taxes

2,060

(3,216)

10,952

1,936

Depreciation and amortization expense

15,528

15,787

31,486

31,403

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

25,250

11,216

67,239

42,410

Gain on sale of fixed assets

(2,220)

(1,980)

(5,139)

(3,510)

Stock-based compensation expense

1,642

981

2,968

1,772

Loss on debt extinguishment

-

5,738

-

5,738

Acquisition related costs

-

223

-

223

  Adjusted EBITDA (Non-GAAP)

$

24,672

$

16,178

$

65,068

$

46,633

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited

(continued)













The below table presents the reconciliation of contract revenues adjusted for revenues from businesses acquired in the second quarter of fiscal 2011, and the change from the comparable prior year period.
















Contract
Revenues -
GAAP

Revenues from
businesses
acquired in the
second quarter
of fiscal 2011

Contract
Revenues -
Non-GAAP

%
Growth -
GAAP

%
Growth -
Non-GAAP



(Dollars in thousands)


















Three Months Ended January 28, 2012

$      267,407

$        (13,633)

$      253,774

22.5%

19.2%














Three Months Ended January 29, 2011

$      218,203

$          (5,258)

$      212,945































Six Months Ended January 28, 2012

$      586,981

$        (28,101)

$      558,880

22.3%

17.8%














Six Months Ended January 29, 2011

$      479,787

$          (5,258)

$      474,529




SOURCE Dycom Industries, Inc.

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