EX-99.1 2 g09261exv99w1.htm EX-99.1 PRESS RELEASE DATED AUGUST 28, 2007 EX-99.1 Press Release dated August 28, 2007
 

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   August 28, 2007
DYCOM ANNOUNCES FISCAL 2007 FOURTH QUARTER EARNINGS AND
PROVIDES GUIDANCE FOR THE NEXT FISCAL QUARTER
Palm Beach Gardens, Florida, August 28, 2007—Dycom Industries, Inc. (NYSE: DY) announced its results today for the fourth quarter ended July 28, 2007. The Company reported income from continuing operations for the quarter ended July 28, 2007 of $14.5 million, or $0.35 per common share diluted, versus income from continuing operations for the quarter ended July 29, 2006 of $10.1 million, or $0.25 per common share diluted. Total contract revenues for the quarter ended July 28, 2007 were $317.3 million compared to total contract revenues of $253.2 million for the quarter ended July 29, 2006, an increase of 25.3%. Stock-based compensation expense for the quarter ended July 28, 2007 and quarter ended July 29, 2006 was $1.5 million and $1.4 million, respectively, on a pre-tax basis.
For the year ended July 28, 2007 income from continuing operations was $42.2 million, or $1.04 per common share diluted, compared to income from continuing operations of $18.0 million, or $0.43 per common share diluted, for the year ended July 29, 2006. Income from continuing operations for the year ended July 28, 2007 included a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. For the year ended July 29, 2006 income from continuing operations included 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 these items, non-GAAP income from continuing operations was $40.7 million, or $1.00 per common share diluted, for the year ended July 28, 2007 and $32.9 million, or $0.78 per common share diluted, for the year ended July 29, 2006. Total contract revenues from continuing operations for the year ended July 28, 2007 were $1.138 billion compared to total contract revenues from continuing operations of $995 million for the year ended July 29, 2006, an increase of 14.4%. Stock-based compensation expense for the year ended July 28, 2007 and the year ended July 29, 2006 was $6.2 million and $4.7 million, respectively, on a pre-tax basis.
Net income, including the results of discontinued operations, for the quarter ended July 28, 2007 was $14.3 million, or $0.35 per common share diluted, compared to $10.1 million, or $0.25 per common share diluted for the quarter ended July 29, 2006. Net income, including the results of discontinued operations, for the year ended July 28, 2007 was $41.9 million, or $1.03 per common share diluted, compared to $18.2 million, or $0.43 per common share diluted, for the year ended July 29, 2006.

 

 

Dycom also announced its outlook for the first quarter of fiscal 2008. The Company currently expects revenue for the first quarter of fiscal 2008 to range from $310 million to $330 million and diluted earnings per share to range from $0.31 to $0.37. Included in the expected results is stock-based compensation expense of approximately $2.2 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, August 29, 2007; Call 888-428-4480 (United States) or 651-291-5254 (International) ten minutes before the conference call begins and ask for the “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, September 28, 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 results are preliminary and the quarterly and annual information is 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 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. 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
July 28, 2007 and July 29, 2006
Unaudited
                 
    July 28,     July 29,  
    2007     2006  
    ($ in 000's)  
 
                
ASSETS
                
Current Assets:
                
Cash and equivalents
   $ 18,862     $ 27,268  
Accounts receivable, net
     146,864       143,099  
Costs and estimated earnings in excess of billings
     95,392       79,546  
Deferred tax assets, net
     15,478       12,793  
Inventories
     8,268       7,095  
Other current assets
     7,266       9,311  
Current assets of discontinued operations
     307       5,196  
 
            
Total current assets
     292,437       284,308  
 
                
Property and equipment, net
     164,544       125,393  
Intangible assets, net
     320,952       265,133  
Other
     11,831       13,928  
Non-current assets of discontinued operations
     —       1,253  
 
            
Total
   $ 789,764     $ 690,015  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 30,375     $ 25,715  
Current portion of debt
     3,301       5,169  
Billings in excess of costs and estimated earnings
     712       397  
Accrued self-insured claims
     26,902       25,886  
Income taxes payable
     1,947       4,979  
Other accrued liabilities
     63,076       44,337  
Current liabilities of discontinued operations
     939       5,311  
 
            
Total current liabilities
     127,252       111,794  
 
                
Long-term debt
     163,509       150,009  
Accrued self-insured claims
     33,085       30,770  
Deferred tax liabilities, net non-current
     19,316       6,576  
Other liabilities
     1,322       289  
Non-current liabilities of discontinued operations
     649       1,122  
Stockholders’ Equity
     444,631       389,455  
 
            
Total
   $ 789,764     $ 690,015  
 
            

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NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                                 
    Three Months     Three Months     Twelve Months     Twelve Months  
    Ended     Ended     Ended     Ended  
    July 28,     July 29,     July 28,     July 29,  
    2007     2006     2007     2006  
    (In 000’s, except per share amounts)  
Contract revenues
   $ 317,324     $ 253,163     $ 1,137,812     $ 994,973  
 
                        
 
                                
Cost of earned revenues, excluding depreciation
     253,057       202,629       915,250       811,210  
General and administrative expenses (1)
     23,304       20,517       90,090       78,516  
Depreciation and amortization
     15,835       11,790       57,799       46,467  
Goodwill impairment charge
     —       —       —       14,835  
 
                        
 
                                
Total
     292,196       234,936       1,063,139       951,028  
 
                        
 
                                
Interest income
     165       371       966       1,911  
Interest expense
     (3,503 )     (3,476 )     (14,809 )     (11,991 )
Other income, net
     1,833       2,114       8,647       6,333  
 
                        
 
                                
Income from continuing operations before income taxes
     23,623       17,236       69,477       40,198  
 
                                
Provision for income taxes
     9,165       7,098       27,275       22,158  
 
                        
 
                                
Income from continuing operations
     14,458       10,138       42,202       18,040  
 
                                
Income (loss) from discontinued operations, net of tax (3)
     (164 )     (49 )     (318 )     140  
 
                        
 
                                
Net income
   $ 14,294     $ 10,089     $ 41,884     $ 18,180  
 
                        
 
                                
Earnings per common share — Basic:
                                
 
                                
Income from continuing operations
   $ 0.36     $ 0.25     $ 1.04     $ 0.43  
Income (loss) from discontinued operations
     —       —       (0.01 )     —  
 
                        
Net income (4)
   $ 0.35     $ 0.25     $ 1.04     $ 0.43  
 
                        
 
                                
Earnings per common share — Diluted:
                                
 
                                
Income from continuing operations
   $ 0.35     $ 0.25     $ 1.04     $ 0.43  
Income (loss) from discontinued operations
     —       —       (0.01 )     —  
 
                        
Net income
   $ 0.35     $ 0.25     $ 1.03     $ 0.43  
 
                        
 
                                
Shares used in computing earnings per common share (2):
                                
Basic
     40,659,201       40,191,164       40,407,641       41,835,966  
 
                        
 
                                
Diluted
     41,066,597       40,425,555       40,713,895       42,056,597  
 
                        
 
(1)   Includes stock-based compensation expense of $1.5 million and $6.2 million for the three and twelve months ended July 28, 2007, respectively, and $1.4 million and $4.7 million for the three and twelve months ended July 29, 2006, respectively.
 
(2)   The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.
 
(3)   The Company discontinued the operations of one of its subsidiaries in fiscal 2007 and has reported those results separately as discontinued operations in the financial statements for all periods presented.
 
(4)   Amounts may not add due to rounding.

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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)
                 
    Twelve Months     Twelve Months  
    Ended     Ended  
    July 28,     July 29,  
    2007     2006  
Items:
                
Gain on sale of real estate, net of tax
   $ 1,508     $ —  
Goodwill impairment charge, net of tax
     —       (14,835 )
 
            
 
   $ 1,508     $ (14,835 )
 
            
 
                
GAAP income from continuing operations
   $ 42,202     $ 18,040  
Adjustment for items above
     (1,508 )     14,835  
 
            
Non-GAAP income from continuing operations
   $ 40,694     $ 32,875  
 
            
 
                
Earnings per common share from continuing operations:
                
 
                
Basic earnings per share from continuing operations — GAAP
   $ 1.04     $ 0.43  
Adjustment for items above
     (0.04 )     0.35  
 
            
Basic earnings per share from continuing operations — Non-GAAP (1)
   $ 1.01     $ 0.79  
 
            
 
                
Diluted earnings per share from continuing operations — GAAP
   $ 1.04     $ 0.43  
Adjustment for items above
     (0.04 )     0.35  
 
            
Diluted earnings per share from continuing operations- Non-GAAP
   $ 1.00     $ 0.78  
 
            
 
                
Shares used in computing GAAP and Non-GAAP earnings per common share from continuing operations and adjustment for items above:
                
 
                
Basic
     40,407,641       41,835,966  
 
            
Diluted
     40,713,895       42,056,597  
 
            
 
(1)   Amounts may not add due to rounding.

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