EX-99.1 2 ex99-1_083104.txt PRESS RELEASE [DYCOM LETTERHEAD] N E W S R E L E A S E ----------------------- FOR IMMEDIATE RELEASE Contact: Steven E. Nielsen, President and CEO Richard L. Dunn, Senior Vice President and CFO (561) 627-7171 Palm Beach Gardens, Florida August 30, 2004 DYCOM ANNOUNCES FISCAL 2004 FOURTH QUARTER EARNINGS AND PROVIDES GUIDANCE FOR THE NEXT TWO FISCAL QUARTERS Palm Beach Gardens, Florida, August 30, 2004--Dycom Industries, Inc. (NYSE Symbol: "DY") announced its results today for the fourth quarter ended July 31, 2004. The Company reported net income for the quarter ended July 31, 2004 of $17.1 million, or $0.35 per common share diluted, versus net income for the quarter ended July 26, 2003 of $11.4 million, or $0.24 per common share diluted. Total contract revenues for the quarter ended July 31, 2004 were $260.8 million compared to total contract revenues of $182.9 million for the quarter ended July 26, 2003, an increase of 42.6 %. For the year ended July 31, 2004, the Company reported net income of $58.6 million, or $1.20 per common share diluted, versus net income for the year ended July 26, 2003 of $17.1 million, or $0.36 per common share diluted. Total contract revenues for the year ended July 31, 2004 were $872.7 million compared to total contract revenues of $618.2 million for the year ended July 26, 2003, an increase of 41.2%. Included in the net income for the year ended July 31, 2004 was a nonrecurring gain of $11.4 million ($6.8 million net of tax) related to the sale of long-term accounts receivable, and a charge of $2.3 million ($1.4 million net of tax) related to a reserve recorded in connection with an ongoing federal employment tax audit. Excluding these items, net income for the year ended July 31, 2004 would have been $53.2 million, or $1.09 per common share diluted. In comparing the financial results for the three-month and one-year periods ended July 31, 2004 with prior periods, it should be noted that Dycom utilizes a 52/53 week fiscal year ending on the last Saturday in July. As a result, the fourth quarter of fiscal 2004 contained 14 weeks and the year ended July 31, 2004 contained 53 weeks compared to 13 weeks and 52 weeks for the fourth quarter and year ended July 26, 2003. Dycom also announced its outlook for the first and second quarter of fiscal 2005. The Company currently expects revenue for the first quarter of fiscal 2005 to range from $240 million to $260 million and diluted earnings per share to range from $0.31 to $0.39. For the second quarter of fiscal 2005, the Company currently expects revenue to range from $200 million to $220 million and diluted earnings per share to range from $0.19 to $0.26. A Tele-Conference call to review the Company's results and address its outlook will be hosted at 9:00 a.m. (ET), Tuesday, August 31, 2004; Call 888-428-4479 (United States) or 612-332-0335 (International) and request "Dycom Earnings" conference call. A live webcast of the conference call will be available at http://www.dycomind.com. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast will also be available at http://www.dycomind.com until Thursday, September 30, 2004. Dycom is a leading provider of engineering, construction, and maintenance services to telecommunication providers throughout the United States. Additionally, the Company provides similar services related to the installation of integrated voice, data, and video local and wide area networks within office buildings and similar structures. Dycom also provides underground utility locating and mapping and electric utility construction services. This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. Such statements include, but are not limited to, the Company's expectations for revenues and earnings per share. 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 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, whether recent acquisitions can be efficiently integrated into our existing operations, the impact of any future acquisitions, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks detailed in our filings with the Securities and Exchange Commission. ---Tables Follow--- NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS July 31, 2004 and July 26, 2003 Unaudited
July 31, July 26, ($ in 000's) 2004 2003 ----------------- --------------- ASSETS Current Assets: Cash and equivalents $ 51,393 $ 129,852 Accounts receivable, net 131,927 121,980 Costs and estimated earnings in excess of billings 58,175 34,814 Deferred tax assets, net 11,922 8,779 Income tax receivable 6,988 - Inventories 5,353 2,670 Other current assets 10,276 7,378 ---------- ------------ Total current assets 276,034 305,473 Property and Equipment, net 100,353 86,894 Intangible assets, net 259,319 107,345 Deferred tax assets, net non-current 5,561 7,167 Accounts receivable, net - 21,567 Other 10,568 8,097 ----------- ------------ Total $ 651,835 $ 536,543 =========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 34,348 $ 22,735 Notes and capital leases payable 4,163 10 Billings in excess of costs and estimated earnings 142 703 Accrued self-insurance claims 22,298 17,677 Income taxes payable - 5,169 Other accrued liabilities 41,527 24,440 ----------- ------------ Total current liabilities 102,478 70,734 Notes and capital leases payable 7,094 20 Accrued self-insured claims 22,473 14,175 Other liabilities 829 1,274 Stockholders' Equity 518,961 450,340 ----------- ------------- Total $ 651,835 $ 536,543 =========== =============
NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited
14 Weeks 13 Weeks 53 Weeks 52 Weeks Ended Ended Ended Ended July 31, July 26, July 31, July 26, (In 000's, except Earnings per share) 2004 2003 2004 2003 ------------- ------------- ------------- ------------- Contract revenues earned $ 260,764 $ 182,882 $ 872,716 $ 618,183 Cost of earned revenues 200,672 138,673 673,562 482,877 General and administrative expenses 21,224 16,563 75,356 70,059 Depreciation and amortization 11,614 8,898 42,066 39,073 ----------- ----------- ----------- ---------- Total costs and expenses 233,510 164,134 790,984 592,009 ----------- ----------- ----------- ---------- Interest income/(expense), net 37 310 (189) 1,300 Other income, net 929 632 4,277 2,981 Gain on sale of long term accounts receivable - - 11,359 - ----------- ----------- ----------- ---------- Income before income taxes 28,220 19,690 97,179 30,455 Provision for income taxes 11,134 8,328 38,547 13,306 ----------- ----------- ----------- ---------- Net income $ 17,086 $ 11,362 $ 58,632 $ 17,149 =========== =========== =========== ========== Earnings per common share: Basic earnings per share $ 0.35 $ 0.24 $ 1.21 $ 0.36 =========== =========== =========== ========== Diluted earnings per share $ 0.35 $ 0.24 $ 1.20 0.36 =========== =========== =========== ========== Shares used in computing earnings per common share: Basic 48,554 47,918 48,349 47,881 =========== =========== =========== ========== Diluted 48,998 48,042 48,820 47,887 =========== =========== =========== ==========
NYSE: "DY" DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON GAAP INFORMATION Unaudited
(In 000's, except Earnings per share) 53 Weeks Ended July 31, 2004 ----------------------------------------------------------- GAAP Non-GAAP Net Income Adjustments Net Income ----------------------------------------------------------- Contract revenues earned $ 872,716 $ $ 872,716 Cost of earned revenues 673,562 (2,300)(1) 671,262 General and administrative expenses 75,356 75,356 Depreciation and amortization 42,066 42,066 ----------- ------------ ---------- Total costs and expenses 790,984 (2,300) 788,684 ----------- ------------ ---------- Interest expense, net (189) (189) Other income, net 4,277 4,277 Gain on sale of long term accounts receivable 11,359 (11,359)(2) - ----------- ------------ ---------- Income (loss) before income taxes 97,179 (9,059) 88,120 Provision (benefit) for income taxes 38,547 (3,630)(3) 34,917 ----------- ------------ ---------- Net income (loss) $ 58,632 $ (5,429) $ 53,203 =========== ============= ========== Earnings (loss) per common share: Basic earnings (loss) per share $ 1.21 $ (0.11) $ 1.10 =========== ============= ========== Diluted earnings (loss) per share $ 1.20 $ (0.11) $ 1.09 =========== ============= ========== Shares used in computing earnings (loss) per common share: Basic 48,349 48,349 48,349 =========== ============= ========== Diluted 48,820 48,820 48,820 =========== ============= ==========
(1) Reserve recorded in connection with an ongoing federal employment tax audit. (2) Gain on sale of long term accounts receivable. (3) Benefit for income taxes related to adjustments.