EX-99.1 2 g05809exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 Press Release
 

EXHIBIT 99.1
(Dycom Logo)
NEWS RELEASE
         
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   February 27, 2007
DYCOM ANNOUNCES FISCAL 2007 SECOND QUARTER EARNINGS AND
PROVIDES GUIDANCE FOR THE THIRD QUARTER OF FISCAL 2007
Palm Beach Gardens, Florida, February 27, 2007—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the second quarter ended January 27, 2007. The Company reported income from continuing operations and net income for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted, versus income from continuing operations and net income for the quarter ended January 28, 2006 of $3.9 million, or $0.10 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 27, 2007 were $258.3 million compared to $237.1 million for the quarter ended January 28, 2006, an increase of 8.9%. Stock based compensation expense for the quarter ended January 27, 2007 and quarter ended January 28, 2006 was $1.6 million and $0.9 million, respectively, on a pre-tax basis.
For the six months ended January 27, 2007 income from continuing operations was $15.2 million, or $0.37 per common share diluted. For the six months ended January 28, 2006 income from continuing operations was $14.4 million, or $0.33 per common share diluted. Net income was $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007, versus net income of $14.6 million, or $0.33 per common share diluted for the six months ended January 28, 2006. Total contract revenues from continuing operations for the six months ended January 27, 2007 were $528.8 million compared to $490.7 million for the six months ended January 28, 2006, an increase of 7.8%. Stock based compensation expense for the six months ended January 27, 2007 and the six months ended January 28, 2006 was $3.3 million and $1.9 million, respectively, on a pre-tax basis.
The Company has reported the results of Apex Digital, LLC as discontinued operations in the accompanying financial information. In August 2006, Apex notified its primary customer of its intention to cease performing installation services in February 2007. Effective December 2006, this customer transitioned its installation service requirements to other providers.
Dycom also announced its outlook for the third quarter of fiscal 2007. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2007 to range from $275 million to $295

 

 

million and diluted earnings per share from continuing operations to range from $0.23 to $0.28, including stock based compensation expense of approximately $1.5 million on a pre-tax basis. Management believes that discontinued operations will not have a material impact on the quarter.
A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, February 28, 2007; 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, March 30, 2007.
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 2007 second quarter and six-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, stock-based compensation expense 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—

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 27, 2007 and July 29, 2006
Unaudited
                 
    January 27,     July 29,  
    2007     2006  
    ($ in 000's)  
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 14,445     $ 27,268  
Accounts receivable, net
     120,052       143,099  
Costs and estimated earnings in excess of billings
     80,886       79,546  
Deferred tax assets, net
     14,216       12,793  
Inventories
     8,350       7,095  
Other current assets
     12,646       9,311  
Current assets of discontinued operations
     6,152       5,196  
 
            
Total current assets
     256,747       284,308  
 
                
Property and equipment, net
     154,354       125,393  
Intangible assets, net
     319,113       265,133  
Other
     13,371       13,928  
Non-current assets of discontinued operations
     121       1,253  
 
            
Total
   $ 743,706     $ 690,015  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 26,668     $ 25,715  
Current portion of debt
     3,343       5,169  
Billings in excess of costs and estimated earnings
     584       397  
Accrued self-insured claims
     28,410       25,886  
Income taxes payable
     1,198       4,979  
Other accrued liabilities
     45,871       44,337  
Current liabilities of discontinued operations
     5,047       5,311  
 
            
Total current liabilities
     111,121       111,794  
 
                
Long-term debt
     174,517       150,009  
Accrued self-insured claims
     30,689       30,770  
Deferred tax liabilities, net non-current
     17,357       6,576  
Other liabilities
     1,310       289  
Non-current liabilities of discontinued operations
     1,283       1,122  
Stockholders’ Equity
     407,429       389,455  
 
            
Total
   $ 743,706     $ 690,015  
 
            

 

 

NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                                 
    Three Months     Three Months     Six Months     Six Months  
    Ended     Ended     Ended     Ended  
    January 27,     January 28,     January 27,     January 28,  
    2007     2006     2007     2006  
    (In 000's, except per share amounts)  
Contract revenues
   $ 258,293     $ 237,091     $ 528,846     $ 490,733  
 
                        
 
                                
Cost of earned revenues
     210,771       196,994       428,536       404,272  
General and administrative expenses (1)
     21,395       18,552       43,074       37,377  
Depreciation and amortization
     14,142       11,776       26,637       22,817  
 
                        
 
                                
Total
     246,308       227,322       498,247       464,466  
 
                        
 
                                
Interest income
     234       523       627       1,212  
Interest expense
     (3,953 )     (4,007 )     (7,710 )     (4,873 )
Other income, net
     1,129       240       1,624       1,325  
 
                        
 
                                
Income from continuing operations before income taxes
     9,395       6,525       25,140       23,931  
 
                                
Provision for income taxes
     3,747       2,654       9,966       9,540  
 
                        
 
                                
Income from continuing operations
     5,648       3,871       15,174       14,391  
 
                                
Income (loss) from discontinued operations, net of tax
     (63 )     —       (29 )     202  
 
                        
 
                                
Net income
   $ 5,585     $ 3,871     $ 15,145     $ 14,593  
 
                        
 
                                
Earnings per common share — Basic:
                                
 
                                
Income from continuing operations
   $ 0.14     $ 0.10     $ 0.38     $ 0.33  
Income (loss) from discontinued operations
     —       —       —       0.01  
 
                        
Net income
   $ 0.14     $ 0.10     $ 0.38     $ 0.34  
 
                        
 
                                
Earnings per common share — Diluted:
                                
 
                                
Income from continuing operations
   $ 0.14     $ 0.10     $ 0.37     $ 0.33  
Income (loss) from discontinued operations
     —       —       —       —  
 
                        
Net income
   $ 0.14     $ 0.10     $ 0.37     $ 0.33  
 
                        
 
                                
Shares used in computing earnings per common share (2):
                                
Basic
     40,295,932       40,058,234       40,253,498       43,533,157  
 
                        
 
                                
Diluted
     40,599,162       40,274,160       40,553,092       43,738,518  
 
                        
 
(1)   Includes stock-based compensation expense of $1.6 million and $3.3 million for the three and six months ended January 27, 2007, respectively, and $0.9 million and $1.9 million for the three and six months ended January 28, 2006, respectively.
 
(2)   The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.