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

May 19, 2015, 16:08 ET from Dycom Industries, Inc.

PALM BEACH GARDENS, Fla., May 19, 2015 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 25, 2015.

The Company reported:

  • Contract revenues of $492.4 million for the quarter ended April 25, 2015, compared to $426.3 million for the quarter ended April 26, 2014. Contract revenues for the quarter ended April 25, 2015 grew 13.4% on an organic basis after excluding revenues from acquired businesses that were not owned for the full period in both the current and the prior year periods. Total revenues from acquired businesses were $8.9 million for the quarter ended April 25, 2015.
  • Adjusted EBITDA – Non-GAAP of $63.0 million, or 12.8% of revenue, for the quarter ended April 25, 2015, compared to $39.6 million, or 9.3% of revenue, for the quarter ended April 26, 2014.
  • Net income of $20.3 million, or $0.58 per common share diluted, for the quarter ended April 25, 2015, compared to $7.9 million, or $0.23 per common share, for the quarter ended April 26, 2014.

The Company also reported:

  • Contract revenues of $1.444 billion for the nine months ended April 25, 2015, compared to $1.330 billion for the nine months ended April 26, 2014. Contract revenues for the nine months ended April 25, 2015 grew 6.4% on an organic basis after excluding revenues from acquired businesses that were not owned for the full period in both the current and the prior year periods. Total revenues from acquired businesses were $28.6 million for the nine months ended April 25, 2015.
  • Adjusted EBITDA – Non-GAAP of $177.0 million, or 12.3% of revenue, for the nine months ended April 25, 2015 compared to $130.9 million, or 9.8% of revenue, for the nine months ended April 26, 2014.
  • Net income of $50.5 million, or $1.44 per common share diluted, for the nine months ended April 25, 2015 compared to $23.5 million, or $0.68 per common share diluted, for the nine months ended April 26, 2014.

The Company also announced its outlook for the fourth quarter of fiscal 2015. The Company currently expects total revenue for the fourth quarter of fiscal 2015 to range from $550 million to $570 million and diluted earnings per share to range from $0.74 to $0.82.

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, May 20, 2015; call (800) 230-1085 (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 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 20, 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, June 19, 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 May 20, 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 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 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

April 25, 2015 and July 26, 2014

Unaudited

April 25, 2015

July 26, 2014

ASSETS

(Dollars in thousands)

Current assets:

Cash and equivalents

$              22,542

$              20,672

Accounts receivable, net

265,772

272,741

Costs and estimated earnings in excess of billings

247,979

230,569

Inventories

45,205

49,095

Deferred tax assets, net

19,278

19,932

Other current assets

20,112

12,727

Total current assets

620,888

605,736

Property and equipment, net 

226,328

205,413

Goodwill 

269,465

269,088

Intangible assets, net 

110,031

116,116

Other 

30,404

16,001

Total non-current assets

636,228

606,618

Total assets

$         1,257,116

$         1,212,354

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$              64,463

$              63,318

Current portion of debt

-

10,938

Billings in excess of costs and estimated earnings

14,271

13,882

Accrued insurance claims

38,036

32,260

Other accrued liabilities

78,224

76,134

Total current liabilities

194,994

196,532

Long-term debt

446,692

446,863

Accrued insurance claims 

39,487

33,782

Deferred tax liabilities, net non-current 

48,815

45,361

Other liabilities 

4,942

4,882

Total liabilities

734,930

727,420

Total stockholders' equity

522,186

484,934

Total liabilities and stockholders' equity 

$         1,257,116

$         1,212,354

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

Three Months

Three Months

Nine Months

Nine Months

Ended

Ended

Ended

Ended

April 25, 2015

April 26, 2014

April 25, 2015

April 26, 2014

(Dollars in thousands, except per share amounts)

Contract revenues 

$                492,363

$                426,284

$             1,443,833

$             1,329,522

Costs of earned revenues, excluding depreciation and amortization

388,239

350,352

1,147,136

1,087,824

General and administrative expenses (a)

44,707

39,162

131,218

120,799

Depreciation and amortization

23,985

22,726

70,179

69,713

Total 

456,931

412,240

1,348,533

1,278,336

Interest expense, net

(6,646)

(6,563)

(20,126)

(20,249)

Other income, net

3,471

5,593

7,001

8,200

Income before income taxes

32,257

13,074

82,175

39,137

Provision for income taxes

11,999

5,179

31,678

15,649

Net income 

$                  20,258

$                    7,895

$                  50,497

$                  23,488

Earnings per common share:

Basic earnings per common share

$                      0.59

$                      0.23

$                      1.48

$                      0.70

Diluted earnings per common share

$                      0.58

$                      0.23

$                      1.44

$                      0.68

Shares used in computing earnings per common share:

   Basic

34,107,262

33,860,832

34,081,381

33,707,957

   Diluted

35,028,956

34,763,035

35,091,644

34,767,400

(a) Includes stock-based compensation expense of $3.2 million and $2.7 million for the three months ended April 25, 2015 and April 26, 2014, 

      respectively, and $10.8 million and $9.7 million for the nine months ended April 25, 2015 and April 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 acquired businesses (a)

Contract Revenues - Non-GAAP

% Growth - GAAP

% Growth - Non-GAAP

(Dollars in thousands)

Three Months Ended April 25,2015

$    492,363

$

(8,919)

$

483,444

15.5%

13.4%

Three Months Ended April 26, 2014

$    426,284

$

-

$

426,284

Nine Months Ended April 25, 2015

$ 1,443,833

$

(28,560)

$

1,415,273

8.6%

6.4%

Nine Months Ended April 26, 2014

$ 1,329,522

$

-

$

1,329,522

(a) Amounts for the three and nine months ended April 25, 2015 represent revenues from businesses acquired during the fourth quarter of fiscal 2014 and the first quarter of fiscal 2015.

 

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 and nine months ended April 25, 2015 and April 26, 2014 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 25, 2015

April 26, 2014

April 25, 2015

April 26, 2014

(Dollars in thousands)

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

Net income 

$              20,258

$                7,895

$              50,497

$              23,488

Interest expense, net

6,646

6,563

20,126

20,249

Provision for income taxes

11,999

5,179

31,678

15,649

Depreciation and amortization expense

23,985

22,726

70,179

69,713

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

62,888

42,363

172,480

129,099

Gain on sale of fixed assets

(3,067)

(5,469)

(6,249)

(7,904)

Stock-based compensation expense

3,219

2,671

10,773

9,721

Adjusted EBITDA - Non-GAAP

$              63,040

$              39,565

$            177,004

$            130,916

 

SOURCE Dycom Industries, Inc.



RELATED LINKS

http://www.dycomind.com