ex99_1.htm

Exhibit 99.1

N E W S R E L E A S E

FOR IMMEDIATE RELEASE	Contact:	Steven E. Nielsen, President and CEO
		H. Andrew DeFerrari, Senior Vice President and CFO
		(561) 627-7171

Palm Beach Gardens, Florida

February 23, 2010

DYCOM ANNOUNCES FISCAL 2010 SECOND QUARTER RESULTS

Palm Beach Gardens, Florida, February 23, 2010--Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 23, 2010. The Company reported:

contract revenues of $216.3 million for the quarter ended January 23, 2010, compared to $245.5 million for the quarter ended January 24, 2009, a decrease of 11.9%. Included in contract revenues for the quarter ended January 24, 2009 was approximately $3.3 million for storm restoration services. There was no storm restoration services during the fiscal 2010 quarter; and

loss from continuing operations on a GAAP basis of $4.0 million, or $0.10 per common share diluted, for the quarter ended January 23, 2010, compared to a loss of $78.0 million, or $1.98 per common share diluted, for the quarter ended January 24, 2009. On a Non-GAAP basis, loss from continuing operations for the quarter ended January 24, 2009 was $1.7 million, or $0.04 per common share diluted. Non-GAAP loss from continuing operations excludes a pre-tax gain of approximately $1.3 million related to the buyback of $4.65 million aggregate principal amount of the Company’s senior subordinated notes due 2015 and a pre-tax goodwill impairment charge of $94.4 million during the quarter ended January 24, 2009.

See the accompanying table which presents a reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP financial measures.

The Company also reported:

contract revenues of $475.4 million for the six months ended January 23, 2010, compared to $579.5 million for the six months ended January 24, 2009, a decrease of 18.0%. Included in contract revenues for the six months ended January 24, 2009 was approximately $18.4 million for storm restoration services. There was no storm restoration services during the fiscal 2010 six month period;

loss from continuing operations on a GAAP basis of $0.4 million, or $0.01 per common share diluted, for the six months ended January 23, 2010, compared to a loss of $67.4 million, or $1.71 per common share diluted, for the six months ended January 24, 2009; and

income from continuing operations on a Non-GAAP basis of $1.7 million, or $0.04 per common share diluted, for the six months ended January 23, 2010, compared to Non-GAAP income from continuing operations of $9.2 million, or $0.23 per common share diluted, for the six months ended January 24, 2009.

Non-GAAP income from continuing operations for the six months ended January 23, 2010 excludes a $2.0 million pre-tax charge in cost of earned revenues for the pending settlement of a wage and hour class action claim and a $1.1 million non-cash charge to income tax expense for a valuation allowance against a deferred tax asset recorded during the first quarter of fiscal 2010. Non-GAAP income from continuing operations for the six months ended January 24, 2009 excludes a pre-tax gain of approximately $1.3 million related to the buyback of $4.65 million aggregate principal amount of the Company’s senior subordinated notes, a pre-tax goodwill impairment charge of $94.4 million, and a pre-tax write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company’s credit facility during the prior year.

See the accompanying table which presents a reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP financial measures.

A Tele-Conference call to review the Company’s results will be hosted at 9 a.m. (ET), Wednesday, February 24, 2010; Call 800-288-8974 (United States) or 612-332-0430 (International) and request “Dycom Results”conference call. A live webcast of the conference call, along with a slide presentation, will be available at http://www.dycomind.com under the heading “Investors” and subheading “Event Details.” If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the slide presentation will be available at http://www.dycomind.com until Friday, March 26, 2010.

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 facility locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.

Fiscal 2010 second quarter results are preliminary and are unaudited. This press release may contain 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. 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, 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---

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

January 23, 2010 and July 25, 2009

Unaudited

	January 23,		July 25,
	2010		2009
	($ in 000's)
ASSETS
Current Assets:
Cash and equivalents	$	135,928	$	104,707
Accounts receivable, net		90,786		116,968
Costs and estimated earnings in excess of billings		42,855		67,111
Deferred tax assets, net		13,425		15,779
Income taxes receivable		9,122		7,016
Inventories		10,814		8,303
Other current assets		13,516		7,323
Total current assets		316,446		327,207

Property and equipment, net		142,559		142,132
Goodwill		157,851		157,851
Intangible assets, net		52,875		56,056
Other		10,078		10,211
Total	$	679,809	$	693,457

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	23,980	$	28,977
Current portion of debt		348		926
Billings in excess of costs and estimated earnings		408		151
Accrued insurance claims		25,911		27,386
Other accrued liabilities		45,010		52,590
Total current liabilities		95,657		110,030

Long-term debt		135,350		135,377
Accrued insurance claims		29,451		29,759
Deferred tax liabilities, net non-current		23,581		22,910
Other liabilities		4,752		4,758

Stockholders' Equity		391,018		390,623

Total	$	679,809	$	693,457

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	January 23,			January 24,			January 23,			January 24,
	2010			2009			2010			2009
	(In 000's, except per share amounts)

Contract revenues	$	216,331		$	245,522		$	475,447		$	579,489

Cost of earned revenues, excluding depreciation and amortization		180,936			205,860			390,908			474,506
General and administrative expenses (1)		23,898			21,535			47,401			49,074
Depreciation and amortization		15,516			16,817			30,707			33,429
Goodwill impairment charge		-			94,429			-			94,429
Total		220,350			338,641			469,016			651,438

Interest income		22			40			58			174
Interest expense		(3,541	)		(4,099	)		(7,084	)		(8,151	)
Other income, net		903			1,832			2,008			2,234

Income (loss) from continuing operations before income taxes		(6,635	)		(95,346	)		1,413			(77,692	)

Provision (benefit) for income taxes		(2,670	)		(17,393	)		1,855			(10,324	)

Loss from continuing operations		(3,965	)		(77,953	)		(442	)		(67,368	)

Loss from discontinued operations, net of tax		-			-			-			(37	)

Net loss	$	(3,965	)	$	(77,953	)	$	(442	)	$	(67,405	)

Loss per common share - Basic and Diluted:

Loss from continuing operations	$	(0.10	)	$	(1.98	)	$	(0.01	)	$	(1.71	)
Loss from discontinued operations		-			-			-			-
Net loss	$	(0.10	)	$	(1.98	)	$	(0.01	)	$	(1.71	)


Shares used in computing loss per common share - Basic and Diluted		39,069,364			39,379,470			39,029,822			39,350,611

(1) Includes stock-based compensation expense of $0.7 million and $1.7 million for the three and six months ended January 23, 2010, respectively, and $0.3 million and $1.9 million for the three and six months ended January 24, 2009, respectively.

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION

Unaudited

	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	January 23,			January 24,			January 23,			January 24,
	2010			2009			2010			2009
	(In 000's, except per share amounts)

Pre-Tax Reconciling Items:

Charge for pending wage and hour class action settlement	$	-		$	-		$	(2,000	)	$	-
Goodwill impairment charge		-			(94,429	)		-			(94,429	)
Gain on debt extinguishment, net		-			1,300			-			1,300
Write-off of deferred financing costs		-			-			-			(551	)
Total Pre-Tax Reconciling Items	$	-		$	(93,129	)	$	(2,000	)	$	(93,680	)
Tax-effect of Pre-Tax Reconciling items		-			16,880			923			17,101
Other Reconciling Item:
Valuation allowance on deferred tax asset		-			-			(1,090	)		-
Total Reconciling Items, net of tax	$	-		$	(76,249	)	$	(2,167	)	$	(76,579	)


GAAP loss from continuing operations	$	(3,965	)	$	(77,953	)	$	(442	)	$	(67,368	)
Adjustment for Reconciling Items above, net of tax		-			76,249			2,167			76,579
Non-GAAP income (loss) from continuing operations	$	(3,965	)	$	(1,704	)	$	1,725		$	9,211

Earnings (loss) per common share from continuing operations:

Basic loss per share from continuing operations - GAAP	$	(0.10	)	$	(1.98	)	$	(0.01	)	$	(1.71	)
Adjustment for Reconciling Items above, net of tax		-			1.94			0.06			1.95
Basic earnings (loss) per common share from continuing operations - Non-GAAP	$	(0.10	)	$	(0.04	)	$	0.04		$	0.23

Diluted loss per share from continuing operations - GAAP	$	(0.10	)	$	(1.98	)	$	(0.01	)	$	(1.71	)
Adjustment for Reconciling Items above, net of tax		-			1.94			0.06			1.95
Diluted earnings (loss) per common share from continuing operations- Non-GAAP	$	(0.10	)	$	(0.04	)	$	0.04		$	0.23


Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for Reconciling items above:

Basic		39,069,364			39,379,470			39,029,822			39,350,611

Diluted		39,069,364			39,379,470			39,029,822			39,350,611

Shares used in computing Non-GAAP earnings (loss) per common share from continuing operations:

Basic		39,069,364			39,379,470			39,029,822			39,350,611

Diluted		39,069,364			39,379,470			39,185,239			39,430,966

Earnings (loss) per share amounts may not add due to rounding.