Dycom Industries, Inc. Announces Fiscal 2014 Second Quarter Results And Provides Guidance For The Next Fiscal Quarter

   Dycom Industries, Inc. Announces Fiscal 2014 Second Quarter Results And
                Provides Guidance For The Next Fiscal Quarter

PR Newswire

PALM BEACH GARDENS, Fla., Feb. 25, 2014

PALM BEACH GARDENS, Fla., Feb.25, 2014 /PRNewswire/ --Dycom Industries, Inc.
(NYSE: DY) announced today its results for the second quarter ended January
25, 2014.

The Company reported:

  oContract revenues of $390.5 million for the quarter ended January 25,
    2014, compared to $369.3 million for the quarter ended January 26, 2013.
    Contract revenues for the quarter ended January 25, 2014 grew 0.9% on an
    organic basis after excluding revenues from businesses acquired during
    fiscal 2013 from the three month periods ended January 25, 2014 and
    January 26, 2013 and $16.7 million of revenues for storm restoration
    services in the three months ended January 26, 2013. Revenues from
    businesses acquired during fiscal 2013 were $111.5 million and $75.9
    million for the three months ended January 25, 2014 and January 26, 2013,
    respectively.
  oAdjusted EBITDA (Non-GAAP) of $28.2 million for the three months ended
    January 25, 2014, compared to $37.2 million for the three months ended
    January 26, 2013.
  oNet loss of $3.1 million, or $0.09 loss per common share, for the quarter
    ended January 25, 2014, compared to net income of $1.5 million, or $0.04
    per common share diluted, for the quarter ended January 26, 2013. 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.

Worse than expected weather during the latter part of the second fiscal
quarter of 2014 sharply impacted the Company's results. Major snowfalls and
extremely cold temperatures reduced the number of available workdays and
negatively impacted productivity and margins.

The Company also reported:

  oContract revenues of $903.2 million for the six months ended January 25,
    2014, compared to $692.6 million for the six months ended January 26,
    2013. Contract revenues for the six months ended January 25, 2014 grew
    5.8% on an organic basis after excluding revenues from businesses acquired
    during fiscal 2013 from the six month periods ended January 25, 2014 and
    January 26, 2013 and $16.7 million of revenues for storm restoration
    services in the six months ended January 26, 2013. Revenues from
    businesses acquired during fiscal 2013 were $268.6 million and $75.9
    million for the six months ended January 25, 2014 and January 26, 2013,
    respectively.
  oAdjusted EBITDA (Non-GAAP) of $91.4 million for the six months ended
    January 25, 2014, compared to $77.6 million for the six months ended
    January 26, 2013.
  oNet income of $15.6 million, or $0.45 per common share diluted, for the
    six months ended January 25, 2014, compared to $13.3 million, or $0.40 per
    common share diluted, for the six months ended January 26, 2013. 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 also announced its outlook for the third quarter of fiscal 2014.
The Company currently expects revenue for the third quarter of fiscal 2014 to
range from $415.0 million to $435.0 million and diluted earnings per share to
range from $0.19 to $0.26.

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, stock-based
compensation expense, and certain non-recurring items. See the accompanying
tables which present a reconciliation of GAAP to Non-GAAP financial
information.

A conference call to review the Company's results  will be hosted at 9:00
a.m.(ET), Wednesday, February 26, 2014; call (800) 230-1074 (United States)
or (612) 288-0340 (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 7:00 a.m. (ET) on February 26,
2014. 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 28, 2014.

For additional detail on selected financial information including organic
revenue, customer metrics, and certain other selected financial data and
Non-GAAP measures, please refer to the Trend Schedule on Dycom's website
athttp://www.dycomind.com in the Investor Center. The Trend Schedule will be
available at approximately 7:00 a.m. (ET) on February 26, 2014.

Dycom is a leading provider of specialty contracting services throughout the
United States and in Canada. 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 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.

Fiscal 2014 second quarter results are preliminary and are unaudited. This
press release contains 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. The
most significant of these risks and uncertainties are described in our Form
10-K, Form 10-Q and Form 8-K reports (including all amendments to those
reports) and 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, expected benefits and synergies of
acquisitions, the future impact of any acquisitions or dispositions, the
anticipated outcome of other contingent events, including litigation,
liquidity and other financial needs, the availability of financing, and the
other risks and uncertainties detailed from time to time 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 25, 2014 and July 27, 2013
Unaudited
                                                     January 25,   July 27,
                                                     2014          2013
ASSETS                                               (Dollars in thousands)
CURRENT ASSETS:
Cash and equivalents                               $ 16,344      $ 18,607
Accounts receivable, net                             231,619       252,202
Costs and estimated earnings in excess of billings   174,138       204,349
Inventories                                          43,426        35,999
Deferred tax assets, net                             16,334        16,853
Income taxes receivable                              18,347        2,516
Other current assets                                 16,142        10,608
Total current assets                                 516,350       541,134
PROPERTY AND EQUIPMENT, NET                          203,639       202,703
GOODWILL                                             267,810       267,810
INTANGIBLE ASSETS, NET                               115,243       125,275
OTHER                                                16,852        17,286
TOTAL NON-CURRENT ASSETS                             603,544       613,074
TOTAL ASSETS                                       $ 1,119,894   $ 1,154,208
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable                                   $ 52,315      $ 77,954
Current portion of debt                              9,375         7,813
Billings in excess of costs and estimated earnings   13,869        13,788
Accrued insurance claims                             32,638        29,069
Other accrued liabilities                            57,566        71,191
Total current liabilities                            165,763       199,815
LONG-TERM DEBT                                       416,301       444,169
ACCRUED INSURANCE CLAIMS                             30,942        27,250
DEFERRED TAX LIABILITIES, NET NON-CURRENT            49,003        48,612
OTHER LIABILITIES                                    6,249         6,001
Total liabilities                                    668,258       725,847
Total Stockholders' Equity                           451,636       428,361
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 1,119,894   $ 1,154,208



DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                   Three         Three        Six Months   Six Months
                   Months        Months
                   Ended         Ended        Ended        Ended
                   January 25,   January      January      January
                                 26,          25,          26,
                   2014          2013         2014         2013
                   (Dollars in thousands, except per share amounts)
Contract         $ 390,518     $ 369,326    $ 903,238    $ 692,613
revenues
Costs of earned
revenues,
excluding          327,353       301,516      737,472      558,582
depreciation and
amortization
General and
administrative     38,562        38,827       81,637       67,652
expenses (1)
Depreciation and   23,435        20,819       46,987       36,130
amortization
Total             389,350       361,162      866,096      662,364
Interest           (6,800)       (5,748)      (13,686)     (9,946)
expense, net
Other income,      595           428          2,607        2,042
net
Income (loss)
before income      (5,037)       2,844        26,063       22,345
taxes
Provision
(benefit) for      (1,970)       1,381        10,470       9,022
income taxes
Net income       $ (3,067)     $ 1,463      $ 15,593     $ 13,323
(loss)
Earnings (loss)
per common
share:
Basic earnings
(loss) per       $ (0.09)      $ 0.04       $ 0.46       $ 0.40
common share
Diluted earnings
(loss) per       $ (0.09)      $ 0.04       $ 0.45       $ 0.40
common share
Shares used in
computing income
(loss) per
common share:
 Basic           33,836,099    32,780,667   33,629,884   32,935,305
 Diluted         33,836,099    33,514,416   34,767,945   33,607,180
(1) Includes stock-based compensation expense of $3.5 million and
$2.5 million for the three months ended January 25, 2014 and January
26, 2013, respectively, and $7.0 million and $4.8 million for the six
months ended January 25, 2014 and January 26, 2013, respectively.



DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
The below table presents the reconciliation of GAAP contract revenues to
Non-GAAP contract revenues adjusted to exclude revenues from subsidiaries
acquired during fiscal 2013 and storm restoration service revenues generated
during the prior year periods, as well as the percentages of growth of GAAP
and Non-GAAP contract revenues.
                      Revenues
            Contract  from          Revenues     Contract  %        %
            Revenues  subsidiaries  from storm   Revenues  Growth   Growth -
            -         acquired in   restoration  -         -        Non-GAAP
            GAAP      fiscal        services     Non-GAAP  GAAP
                      2013
            (Dollars in thousands)
 Three
 Months     $        $          $       $ 
 Ended      390,518  (111,500)      -         279,018  5.7    % 0.9      %
 January
 25, 2014
 Three
 Months     $        $         $           $ 
 Ended      369,326  (75,946)      (16,721)     276,659
 January
 26, 2013
 Six
 Months     $        $          $       $ 
 Ended      903,238  (268,577)      -         634,661  30.4   % 5.8      %
 January
 25, 2014
 Six
 Months     $        $         $           $ 
 Ended      692,613  (75,946)      (16,721)     599,946
 January
 26, 2013



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 25, 2014 and January 26, 2013 and a
reconciliation of Adjusted EBITDA to net income (loss), the most directly
comparable GAAP measure.
                              Three         Three         Six         Six
                              Months        Months        Months      Months
                              Ended         Ended         Ended       Ended
                              January       January       January     January
                              25,           26,           25,         26,
                              2014          2013          2014        2013
                              (Dollars in thousands)
   Reconciliation of net income (loss)
   to Adjusted EBITDA (Non-GAAP):
      Net income (loss)   $   (3,067)   $   1,463      $  15,593   $  13,323
      Interest expense,       6,800         5,748         13,686      9,946
      net
      Provision (benefit)     (1,970)       1,381         10,470      9,022
      for income taxes
      Depreciation and
      amortization            23,435        20,819        46,987      36,130
      expense
      Earnings Before
      Interest, Taxes,
      Depreciation &          25,198        29,411        86,736      68,421
      Amortization
      ("EBITDA")
      Gain on sale of         (570)         (826)         (2,435)     (2,407)
      fixed assets
      Stock-based
      compensation            3,544         2,496         7,049       4,762
      expense
      Acquisition related     -             5,829         -           6,539
      costs
      Write-off of
      deferred financing      -             321           -           321
      costs
      Adjusted EBITDA     $   28,172    $   37,231     $  91,350   $  77,636
      (Non-GAAP)



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.
                                       Three Months              Six Months
                                       Ended                     Ended
                                       January 26,               January 26,
                                       2013                      2013
                                       (Dollars in thousands, except per share
                                       amounts)
Reconciling Items:
        Acquisition related costs, $   (5,829)               $   (6,539)
        pre-tax
        Write-off of deferred          (321)                     (321)
        financing costs
Total Reconciling Items            $   (6,150)               $   (6,860)
GAAP net income                    $   1,463                 $   13,323
Adjustment for Reconciling Items       3,710                     4,154
above, net of tax
Non-GAAP net income                $   5,173                 $   17,477
Earnings per common share:
Basic earnings per common share - $   0.04                  $   0.40
GAAP
Adjustment for Reconciling Items       0.11                      0.13
above, net of tax
Basic earnings per common share -  $   0.16                  $   0.53
Non-GAAP
Diluted earnings per common share  $   0.04                  $   0.40
- GAAP
Adjustment for Reconciling Items       0.11                      0.12
above, net of tax
Diluted earnings per common share  $   0.15                  $   0.52
- 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                32,935,305
 Diluted                             33,514,416                33,607,180



SOURCE Dycom Industries, Inc.

Website: http://www.dycomind.com
Contact: Steven E. Nielsen, President and CEO, H. Andrew DeFerrari, Senior
Vice President and CFO, (561) 627-7171
 
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