EX-99.1 2 g01777exv99w1.htm PRESS RELEASE Press Release
 

Exhibit 99.1
(Dycomlogo)
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   May 23, 2006
DYCOM ANNOUNCES FISCAL 2006 THIRD QUARTER EARNINGS, GOODWILL
IMPAIRMENT CHARGE AND PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, May 23, 2006—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the third quarter ended April 29, 2006. The Company reported a net loss for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted, versus net income for the quarter ended April 30, 2005 of $13.7 million, or $0.28 per common share diluted. Included in the net loss for the quarter ended April 29, 2006 was a goodwill impairment charge of approximately $14.8 million (or $0.37 per common share diluted) related to the Company’s Can Am Communications subsidiary. Can Am was underperforming compared to expectations, increasing the uncertainty about its future cash flows. As a result, management recently implemented operational changes at Can Am which, together with Can Am’s underperformance, required the Company to perform an interim impairment test in accordance with Statement of Financial Accounting Standards No. 142 “Goodwill and Other Intangible Assets,” resulting in the impairment charge. Excluding this item, non-GAAP net income for the quarter ended April 29, 2006 was $8.3 million, or $0.21 per common share diluted. Total contract revenues for the quarter ended April 29, 2006 were $258.7 million compared to total contract revenues of $247.7 million for the quarter ended April 30, 2005, an increase of 4.5%. Stock-based compensation expense for the quarter ended April 29, 2006 and quarter ended April 30, 2005 was $1.4 million and $0.3 million, respectively, on a pre-tax basis.
For the nine months ended April 29, 2006 net income was $8.1 million, or $0.19 per common share diluted. For the nine months ended April 30, 2005 net income was $36.7 million, or $0.75 per common share diluted. Included in the net income for the nine months ended April 29, 2006 was a goodwill impairment charge of approximately $14.8 million (or $0.35 per common share diluted) related to the Company’s Can Am Communications subsidiary. Excluding this item, non-GAAP net income for the nine months ended April 29, 2006 was $22.9 million, or $0.54 per common share diluted. Total contract revenues for the nine months ended April 29, 2006 were $763.7 million compared to total contract revenues of $735.4 million for the nine months ended April 30, 2005, an increase of 3.9%. Stock-based compensation expense for the nine months ended April 29, 2006 and the nine months ended April 30, 2005 was $3.3 million and $0.7 million, respectively, on a pre-tax basis.
Dycom also announced its outlook for the fourth quarter of fiscal 2006. The Company currently expects revenue for the fourth quarter of fiscal 2006 to range from $240 million to $260 million and diluted

 

 

earnings per share to range from $0.17 to $0.23. Included in the expected results is stock-based compensation expense of approximately $1.5 million on a pre-tax basis .
A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, May 24, 2006; Call 877-209-0397 (United States) or 612-332-1213 (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 Friday, June 23, 2006.
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 locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2006 third quarter and nine-month results are preliminary and are unaudited. 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 our recent acquisition 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. The Company does not undertake to update forward-looking statements.
—Tables Follow—

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NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 29, 2006 and July 30, 2005
Unaudited
                 
    April 29,     July 30,  
    2006     2005  
    ($ in 000’s)  
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 13,589     $ 83,062  
Accounts receivable, net
     153,722       161,321  
Costs and estimated earnings in excess of billings
     69,415       65,559  
Deferred tax assets, net
     15,068       12,535  
Inventories
     9,474       8,116  
Income taxes receivable
     1,774       —  
Other current assets
     16,471       11,286  
 
            
 
                
Total current assets
     279,513       341,879  
 
                
Property and equipment, net
     127,645       117,145  
Intangible assets, net
     266,320       227,443  
Other
     12,714       10,242  
 
            
 
                
Total
   $ 686,192     $ 696,709  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 31,050     $ 37,185  
Current portion of debt
     7,388       2,749  
Billings in excess of costs and estimated earnings
     978       464  
Accrued self-insured claims
     31,710       28,166  
Income taxes payable
     —       6,598  
Other accrued liabilities
     41,387       43,550  
 
            
 
                
Total current liabilities
     112,513       118,712  
 
 Long-term debt
     161,011       4,179  
Accrued self-insured claims
     27,936       22,652  
Deferred tax liabilities, net non-current
     6,973       1,299  
Other liabilities
     308       57  
 
                
Stockholders’ Equity
     377,451       549,810  
 
            
 
                
Total
   $ 686,192     $ 696,709  
 
            

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NYSE: “DY”

DYCOM INDUSTRIES, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                                 
    Three Months     Three Months     Nine Months     Nine Months  
    Ended     Ended     Ended     Ended  
    April 29,     April 30,     April 29,     April 30,  
    2006     2005     2006     2005  
    (In 000’s, except per share amounts)  
Contract revenues
   $ 258,690     $ 247,660     $ 763,729     $ 735,364  
 
                        
 
                                
Cost of earned revenues
     211,050       195,943       627,381       586,600  
General and administrative expenses (1)
     21,145       20,928       59,747       57,841  
Depreciation and amortization
     12,243       11,525       35,791       35,590  
Goodwill impairment charge
     14,835       —       14,835       —  
 
                        
 
                                
Total
     259,273       228,396       737,754       680,031  
 
                        
 
                                
Interest income
     327       407       1,540       783  
Interest expense
     (3,641 )     (90 )     (8,514 )     (320 )
Other income, net
     2,902       3,214       4,272       4,991  
 
                        
 
                                
Income (loss) before income taxes
     (995 )     22,795       23,273       60,787  
 
                                
Provision for income taxes
     5,508       9,082       15,183       24,080  
 
                        
 
                                
Net income (loss)
   $ (6,503 )   $ 13,713     $ 8,090     $ 36,707  
 
                        
 
                                
Earnings (loss) per common share:
                                
Basic earnings (loss) per share
   $ (0.16 )   $ 0.28     $ 0.19     $ 0.75  
 
                        
 
                                
Diluted earnings (loss) per share
   $ (0.16 )   $ 0.28     $ 0.19     $ 0.75  
 
                        
 
                                
Shares used in computing earnings (loss) per common share (2):
                                
Basic
     40,163,176       48,828,142       42,413,595       48,712,816  
 
                        
 
                                
Diluted
     40,163,176       49,178,944       42,628,492       49,229,362  
 
                        
 
(1)   Includes stock-based compensation expense of $1.4 million and $3.3 million for the three and nine months ended April 29, 2006, respectively, and $0.3 million and $0.7 million for the three and nine months ended April 30, 2005, respectively.
 
(2)   The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.

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NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
($ in 000’s except per share amounts)
                 
    Three Months     Nine Months  
    Ended     Ended  
    April 29,     April 29,  
    2006     2006  
Item
                
Goodwill impairment charge
   $ 14,835     $ 14,835  
 
            
 
                
GAAP net income (loss)
   $ (6,503 )   $ 8,090  
Adjusted for item above
     14,835       14,835  
 
            
Non-GAAP net income
   $ 8,332     $ 22,925  
 
            
 
                
Earnings (loss) per common share:
                
 
                
Basic income (loss) per share — GAAP
   $ (0.16 )   $ 0.19  
Adjustment for item above
     0.37       0.35  
 
            
Basic earnings per share — Non-GAAP
   $ 0.21     $ 0.54  
 
            
 
                
Diluted earnings (loss) per share — GAAP
   $ (0.16 )   $ 0.19  
Adjustment for item above
     0.37       0.35  
 
            
Diluted earnings per share — Non-GAAP
   $ 0.21     $ 0.54  
 
            
 
                
Shares used in computing GAAP earnings (loss) per common share and adjustment for item above:
                
 
                
Basic
     40,163,176       42,413,595  
 
            
 
                
Diluted
     40,163,176       42,628,492  
 
            
 
                
Shares used in computing Non-GAAP earnings per common share:
                
 
                
Basic
     40,163,176       42,413,595  
 
            
 
                
Diluted
     40,395,055       42,628,492  
 
            

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