Dycom Industries, Inc. Announces Fiscal 2013 Second Quarter Results

     Dycom Industries, Inc. Announces Fiscal 2013 Second Quarter Results

PR Newswire

PALM BEACH GARDENS, Fla., Feb. 26, 2013

PALM BEACH GARDENS, Fla., Feb. 26, 2013 /PRNewswire/ -- Dycom Industries, Inc.
(NYSE: DY) announced today its results for the second quarter ended January
26, 2013. The results include the effect of the acquisition of substantially
all of the telecommunications infrastructure services subsidiaries of Quanta
Services, Inc., which was completed on December 3, 2012.

The Company reported:

  o Contract revenues of $369.3 million for the quarter ended January 26,
    2013, compared to contract revenues of $267.4 million for the quarter
    ended January 28, 2012. Contract revenues for the quarter ended January
    26, 2013 grew 3.5% on an organic basis after excluding $75.9 million of
    revenue from acquired subsidiaries and $16.7 million of revenue for storm
    restoration services in the current period.
  o Adjusted EBITDA (Non-GAAP) of $37.2 million for the quarter ended January
    26, 2013, compared to $24.7 million for the quarter ended  January 28,
    2012.
  o Net income on a GAAP basis of $1.5 million, or $0.04 per common share
    diluted, for the quarter ended January 26, 2013, compared to $3.5 million,
    or $0.10 per common share diluted, for the quarter ended January 28, 2012.
    On a Non-GAAP basis, net income for the quarter ended January 26, 2013 was
    $5.2 million, or $0.15 per common share diluted. The Non-GAAP net income
    for the quarter ended January 26, 2013 excludes $5.8 million in pre-tax
    acquisition related costs and a pre-tax write-off of $0.3 million of
    deferred financing costs in connection with the replacement of the
    Company's credit facility in December 2012.

The Company also reported:

  o Contract revenues of $692.6 million for the six months ended January 26,
    2013, compared to contract revenues of $587.0 million for the six months
    ended January 28, 2012. Contract revenues for the six months ended January
    26, 2013 grew 2.9% on an organic basis after excluding $75.9 million of
    revenue from acquired subsidiaries and $16.7 million of revenue for storm
    restoration services in the six months ended January 26, 2013 and $3.7
    million of revenue for storm restoration services in the six months ended
    January 28, 2012.
  o Adjusted EBITDA (Non-GAAP) of $77.6 million for the six months ended
    January 26, 2013, compared to $65.1 million for the six months ended
     January 28, 2012.
  o Net income on a GAAP basis of $13.3 million, or $0.40 per common share
    diluted, for the six months ended January 26, 2013, compared to $16.5
    million, or $0.48 per common share diluted, for the six months ended
    January 28, 2012. On a Non-GAAP basis, net income for the six months ended
    January 26, 2013 was $17.5 million, or $0.52 per common share diluted. The
    Non-GAAP net income for the six months ended January 26, 2013 excludes
    $6.5 million in pre-tax acquisition related costs and a pre-tax write-off
    of $0.3 million of deferred financing costs in connection with the
    replacement of the Company's credit facility in December 2012.

The Company has defined Adjusted EBITDA (Non-GAAP) as earnings before
interest, taxes, depreciation and amortization, gain on sale of fixed assets,
acquisition related costs, write-off of deferred financing costs, and
stock-based compensation expense. See the accompanying tables which present a
reconciliation of GAAP to Non-GAAP financial information.

Fiscal 2013 second quarter results are preliminary and are unaudited. In
addition, the purchase price allocation of the tangible and intangible assets
acquired and liabilities assumed during the period is preliminary and is
subject to change.

A conference call to review the Company's results will be hosted at
9 a.m. (ET), Wednesday, February 27, 2013; call (877) 209-9922 (United States)
or (612) 332-0632 (International) ten minutes before the conference call
begins and ask for the "Dycom Results" conference call.  A live webcast of the
conference call, along with related materials, will be available at
http://www.dycomind.com under the heading "Events." The conference call
materials will be available at approximately 8 a.m. (ET) on February 27, 2013.
If you are unable to attend the conference call at the scheduled time, a
replay of the live webcast and the conference call materials will be available
at http://www.dycomind.com until Friday, March 29, 2013.

Dycom is a leading provider of specialty contracting services.  These
services, which are provided throughout the United States and in Canada,
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 and gas utilities and
others.

The Company reports its financial results in accordance with U.S. generally
accepted accounting principles (GAAP). The Company believes that the
presentation of certain Non-GAAP financial measures in this press release
provides information that is useful to investors because it allows for a more
direct comparison of the Company's performance for the period with the
Company's performance in the comparable prior-year period.  The Company
cautions that Non-GAAP financial measures should be considered in addition to,
but not as a substitute for, the Company's reported GAAP results.

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
and trends 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,
preliminary purchase price allocations of businesses acquired in December
2012, expected benefits and synergies of the acquisition, future financial and
operating results, future opportunities for the combined businesses, the
future impact of any acquisitions or dispositions, including the consummation
of such acquisitions and dispositions, the anticipated outcome of other
contingent events, including litigation, liquidity and other financial needs,
the availability of financing, and the 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 26, 2013 and July 28, 2012
Unaudited
                                                        January 26,   July 28,
                                                        2013          2012
ASSETS                                                  (Dollars in thousands)
CURRENT ASSETS:
Cash and equivalents                                  $ 22,590      $ 52,581
Accounts receivable, net                                227,413       141,788
Costs and estimated earnings in excess of billings      148,502       127,321
Inventories                                             34,909        26,274
Deferred tax assets, net                                15,422        15,633
Income taxes receivable                                 6,925         4,884
Other current assets                                    13,923        8,466
Total current assets                                    469,684       376,947
PROPERTY AND EQUIPMENT, NET                             187,242       158,247
GOODWILL                                                262,989       174,849
INTANGIBLE ASSETS, NET                                  134,306       49,773
OTHER                                                   18,588        12,377
TOTAL NON-CURRENT ASSETS                                603,125       395,246
TOTAL ASSETS                                          $ 1,072,809   $ 772,193
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable                                      $ 64,166      $ 36,823
Current portion of debt                                 6,250         74
Billings in excess of costs and estimated earnings      11,386        1,522
Accrued insurance claims                                26,313        25,218
Other accrued liabilities                               69,959        50,926
Total current liabilities                               178,074       114,563
LONG-TERM DEBT (including debt premium of $3.8          420,033       187,500
million at January 26, 2013)
ACCRUED INSURANCE CLAIMS                                23,693        23,591
DEFERRED TAX LIABILITIES, NET NON-CURRENT               48,100        49,537
OTHER LIABILITIES                                       4,537         4,071
Total liabilities                                       674,437       379,262
Total Stockholders' Equity                              398,372       392,931
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $ 1,072,809   $ 772,193

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                     Three Months    Three Months    Six Months    Six Months
                     Ended           Ended           Ended         Ended
                     January 26,     January 28,     January 26,   January 28,
                     2013            2012            2013          2012
                     (Dollars in thousands, except per share amounts)
Contract          $  369,326      $  267,407       $ 692,613     $ 586,981
revenues 
Costs of earned
revenues,
excluding            301,516         220,239         558,582       475,426
depreciation and
amortization
General and
administrative       38,827          24,275          67,652        49,633
expenses (1)
Depreciation and     20,819          15,528          36,130        31,486
amortization
Total                361,162         260,042         662,364       556,545
Interest expense,    (5,748)         (4,177)         (9,946)       (8,350)
net
Other income, net    428             2,357           2,042         5,317
Income before        2,844           5,545           22,345        27,403
income taxes
Provision for        1,381           2,060           9,022         10,952
income taxes
Net income        $  1,463        $  3,485         $ 13,323      $ 16,451
Earnings per
common share:
Basic earnings    $  0.04         $  0.10          $ 0.40        $ 0.49
per common share
Diluted earnings  $  0.04         $  0.10          $ 0.40        $ 0.48
per common share
Shares used in
computing income
per common share:
   Basic             32,780,667      33,759,015      32,935,305    33,633,596
   Diluted           33,514,416      34,636,520      33,607,180    34,431,419
(1) Includes stock-based compensation expense of $2.5 million and $1.6 million
for the three months ended January 26, 2013 and January 28, 2012,
respectively, and $4.8 million and $3.0 million for the six months ended
January 26, 2013 and January 28, 2012, respectively.

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
(continued)
The below table presents the reconciliation of contract revenues adjusted for
revenue from subsidiaries acquired in the second quarter of fiscal 2013 and
storm restoration service revenues generated during the current and prior year
periods.
                      Revenues
                      from
            Contract  subsidiaries  Revenues     Contract  %
            Revenues  acquired in   from storm   Revenues  Growth   %
            -         the           restoration  -         -        Growth -
            GAAP      second        services     Non-GAAP  GAAP     Non-GAAP
                      quarter
                      of fiscal
                      2013
            (Dollars in thousands)
Three
Months      $         $             $            $  
Ended        369,326  (75,946)      (16,721)      276,659  38.1   % 3.5      %
January
26, 2013
Three
Months      $         $             $            $  
Ended        267,407            -             -   267,407
January
28, 2012
Six Months
Ended       $         $             $            $         18.0   % 2.9      %
January      692,613  (75,946)      (16,721)      599,946
26, 2013
Six Months
Ended       $         $             $            $  
January      586,981            -   (3,729)       583,252
28, 2012

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
(continued)
The below table presents a reconciliation of GAAP to Non-GAAP net income for
the three and six months ended January 26, 2013 and January 28, 2012.
                        Three         Three          Six Months    Six Months
                        Months        Months
                        Ended         Ended          Ended         Ended
                        January 26,   January 28,    January 26,   January 28,
                        2013          2012           2013          2012
                        (Dollars in thousands, except per share amounts)
Reconciling Items:
    Acquisition      $  (5,829)     $ -            $ (6,539)     $ -
    related costs
    Write-off of
    deferred            (321)         -              (321)         -
    financing costs
Total Reconciling    $  (6,150)     $ -            $ (6,860)     $ -
Items
GAAP net income      $  1,463       $ 3,485        $ 13,323      $ 16,451
Adjustment for
Reconciling Items       3,710         -              4,154         -
above, net of tax
Non-GAAP net income  $  5,173       $ 3,485        $ 17,477      $ 16,451
Earnings per common
share:
Basic earnings per   $  0.04        $ 0.10         $ 0.40        $ 0.49
common share  - GAAP
Adjustment for
Reconciling Items       0.11          -              0.13          -
above, net of tax
Basic earnings per
common share -       $  0.16        $ 0.10         $ 0.53        $ 0.49
Non-GAAP 
Diluted earnings per $  0.04        $ 0.10         $ 0.40        $ 0.48
common share - GAAP
Adjustment for
Reconciling Items       0.11          -              0.12          -
above, net of tax
Diluted earnings per
common share -       $  0.15        $ 0.10         $ 0.52        $ 0.48
Non-GAAP 
Earnings per share amounts may not add due to
rounding.
Shares used in computing GAAP and Non-GAAP earnings per common share and
adjustment for Reconciling Items above:
   Basic                32,780,667    33,759,015     32,935,305    33,633,596
   Diluted              33,514,416    34,636,520     33,607,180    34,431,419

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
(continued)
The below table presents the Non-GAAP financial measure of Adjusted EBITDA for
the three and six months ended January 26, 2013 and January 28, 2012 and a
reconciliation of Adjusted EBITDA to net income, the most directly comparable
GAAP measure.
                              Three       Three           Six         Six
                              Months      Months          Months      Months
                              Ended       Ended           Ended       Ended
                              January     January         January     January
                              26,         28,             26,         28,
                              2013        2012            2013        2012
                              (Dollars in thousands)
Reconciliation of Net
income to Adjusted EBITDA
(Non-GAAP):
    Net income             $  1,463    $  3,485        $  13,323   $  16,451
    Interest expense, net     5,748       4,177           9,946       8,350
    Provision for income      1,381       2,060           9,022       10,952
    taxes
    Depreciation and          20,819      15,528          36,130      31,486
    amortization expense
        Earnings Before
        Interest, Taxes,
        Depreciation &        29,411      25,250          68,421      67,239
        Amortization
        ("EBITDA")
    Gain on sale of fixed     (826)       (2,220)         (2,407)     (5,139)
    assets
    Stock-based               2,496       1,642           4,762       2,968
    compensation expense
    Acquisition related       5,829       -               6,539       -
    costs
    Write-off of deferred     321         -               321         -
    financing costs
        Adjusted EBITDA    $  37,231   $  24,672       $  77,636   $  65,068
        (Non-GAAP)

 

SOURCE Dycom Industries, Inc.

Website: http://www.dycomind.com
Contact: Steven E. Nielsen, President and CEO, or H. Andrew DeFerrari, Senior
Vice President and CFO, both at +1-561-627-7171