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

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

PR Newswire

PALM BEACH GARDENS, Fla., May 20, 2014

PALM BEACH GARDENS, Fla., May 20, 2014 /PRNewswire/ -- Dycom Industries, Inc.
(NYSE: DY) announced today its results for the third quarter ended April 26,
2014.

The Company reported:

  oContract revenues of $426.3 million for the quarter ended April 26, 2014,
    compared to $437.4 million for the quarter ended April 27, 2013.
  oAdjusted EBITDA (Non-GAAP) of $39.6 million for the three months ended
    April 26, 2014, compared to $44.0 million for the three months ended April
    27, 2013.
  oNet income of $7.9 million, or $0.23 per common share diluted, for the
    quarter ended April 26, 2014, compared to $7.2 million, or $0.21 per
    common share diluted, for the quarter ended April 27, 2013.

The Company also reported:

  oContract revenues of $1.330 billion for the nine months ended April 26,
    2014, compared to $1.130billion for the nine months ended April 27, 2013.
    Contract revenues for the nine months ended April 26, 2014 grew 4.6% on an
    organic basis after excluding revenues from businesses acquired in fiscal
    2013 in both periods and $16.7 million of revenues for storm restoration
    services in the nine months ended April 27, 2013. Total revenues from
    businesses acquired in fiscal 2013 were $373.2 million and $198.8 million
    for the nine months ended April 26, 2014 and April 27, 2013, respectively.
  oAdjusted EBITDA (Non-GAAP) of $130.9 million for the nine months ended
    April 26, 2014, compared to $121.7 million for the nine months ended April
    27, 2013.
  oNet income of $23.5 million, or $0.68 per common share diluted, for the
    nine months ended April 26, 2014, compared to $20.5 million, or $0.61 per
    common share diluted, for the nine months ended April 27, 2013. On a
    Non-GAAP basis, net income for the nine months ended April 27, 2013 was
    $24.7 million, or $0.73 per common share diluted. The Non-GAAP net income
    for the nine months ended April 27, 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 fourth quarter of fiscal 2014.
The Company currently expects revenue for the fourth quarter of fiscal 2014 to
range from $475.0 million to $495.0 million and diluted earnings per share to
range from $0.43 to $0.50.

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
9:00a.m.(ET), Wednesday, May 21, 2014; call (800) 288-8975 (United States)
or (612) 332-0335 (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 7:00a.m. (ET) on May 21, 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, June 20, 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 7:00a.m.(ET) on May 21, 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 third 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---



NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
April 26, 2014 and July 27, 2013
Unaudited
                                                     April 26,    July 27,
                                                     2014         2013
ASSETS                                               (Dollars in thousands)
CURRENT ASSETS:
Cash and equivalents                               $ 18,722     $ 18,607
Accounts receivable, net                             233,276      252,202
Costs and estimated earnings in excess of billings   198,581      204,349
Inventories                                          42,512       35,999
Deferred tax assets, net                             17,156       16,853
Income taxes receivable                              12,287       2,516
Other current assets                                 18,656       10,608
Total current assets                                 541,190      541,134
PROPERTY AND EQUIPMENT, NET                          205,703      202,703
GOODWILL                                             267,810      267,810
INTANGIBLE ASSETS, NET                               111,819      125,275
OTHER                                                16,254       17,286
TOTAL NON-CURRENT ASSETS                             601,586      613,074
TOTAL ASSETS                                       $ 1,142,776  $ 1,154,208
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable                                   $ 62,985     $ 77,954
Current portion of debt                              10,156       7,813
Billings in excess of costs and estimated earnings   13,401       13,788
Accrued insurance claims                             32,567       29,069
Other accrued liabilities                            69,758       71,191
Total current liabilities                            188,867      199,815
LONG-TERM DEBT                                       403,082      444,169
ACCRUED INSURANCE CLAIMS                             32,027       27,250
DEFERRED TAX LIABILITIES, NET NON-CURRENT            47,915       48,612
OTHER LIABILITIES                                    5,960        6,001
Total liabilities                                    677,851      725,847
Total Stockholders' Equity                           464,925      428,361
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 1,142,776  $ 1,154,208



NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
                      Three          Three          Nine Months    Nine Months
                      Months         Months
                      Ended          Ended          Ended          Ended
                      April 26,      April 27,      April 26,      April 27,
                      2014           2013           2014           2013
                      (Dollars in thousands, except per share amounts)
Contract revenues $  426,284     $  437,367     $  1,329,522    $ 1,129,980
Costs of earned
revenues,
excluding             350,352        357,664        1,087,824      916,247
depreciation and
amortization
General and
administrative        39,162         38,205         120,799        105,857
expenses (1)
Depreciation and      22,726         24,531         69,713         60,660
amortization
Total                412,240        420,400        1,278,336      1,082,764
Interest expense,     (6,563)        (6,637)        (20,249)       (16,582)
net
Other income, net     5,593          1,477          8,200          3,519
Income before         13,074         11,807         39,137         34,153
income taxes
Provision for         5,179          4,608          15,649         13,631
income taxes
Net income         $  7,895       $  7,199       $  23,488       $ 20,522
Earnings per
common share:
Basic earnings per $  0.23        $  0.22        $  0.70         $ 0.62
common share
Diluted earnings   $  0.23        $  0.21        $  0.68         $ 0.61
per common share
Shares used in
computing income
per common share:
 Basic              33,860,832     33,033,740     33,707,957     32,968,897
 Diluted            34,763,035     33,842,150     34,767,400     33,684,974
(1) Includes stock-based compensation expense of $2.7 million and $2.5 million
for the three months ended April 26, 2014 and April 27, 2013, respectively,
and $9.7 million and $7.3 million for the nine months ended April 26, 2014 and
April 27, 2013, respectively.



NYSE: "DY"
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 and the percentages of growth (decline) of GAAP and
Non-GAAP contract revenues.
                                                                   %
                    Revenues    Revenues     Contract  %           Growth
         Contract   from        from storm   Revenues  Growth
         Revenues   businesses  restoration  -         (decline)   (decline)
         - GAAP     acquired    services     Non-GAAP  - GAAP      -
                    (1)         (1)          (1)
                                                                   Non-GAAP
         (Dollars in thousands)
 Three
 Months
 Ended   $         $       $       $        (2.5)     % (3.8)     %
 April   426,284    (5,545)    -         420,739
 26,
 2014
 Three
 Months             $    
 Ended   $                $       $ 
 April   437,367   -            -         437,367
 27,
 2013
 Nine
 Months
 Ended   $          $        $       $        17.7      % 4.6       %
 April   1,329,522  (373,223)    -         956,299
 26,
 2014
 Nine
 Months
 Ended   $          $        $           $ 
 April   1,129,980  (198,844)   (16,721)    914,415
 27,
 2013
 (1) For the three months ended April 26, 2014, the Non-GAAP decline % is
 adjusted for revenues from businesses acquired during the fourth quarter of
 fiscal 2013. For the nine months ended April 26, 2014, the Non-GAAP growth %
 is adjusted for revenues from businesses acquired during fiscal 2013, as the
 revenues were not included in both the current year and prior year full
 period, and storm restoration service revenues, if any.



NYSE: "DY"
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 nine months ended April 26, 2014 and April 27, 2013 and a
reconciliation of Adjusted EBITDA to net income, the most directly comparable
GAAP measure.
                            Three         Three           Nine        Nine
                            Months        Months          Months      Months
                            Ended         Ended           Ended       Ended
                            April 26,     April 27,       April       April
                                                          26,         27,
                            2014          2013            2014        2013
                            (Dollars in thousands)
   Reconciliation of net
   income to Adjusted
   EBITDA (Non-GAAP):
      Net income         $  7,895      $  7,199        $  23,488   $  20,522
      Interest expense,     6,563         6,637           20,249      16,582
      net
      Provision for         5,179         4,608           15,649      13,631
      income taxes
      Depreciation and
      amortization          22,726        24,531          69,713      60,660
      expense
      Earnings Before
      Interest, Taxes,
      Depreciation &        42,363        42,975          129,099     111,395
      Amortization
      ("EBITDA")
      Gain on sale of       (5,469)       (1,459)         (7,904)     (3,867)
      fixed assets
      Stock-based
      compensation          2,671         2,513           9,721       7,275
      expense
      Acquisition           -             -               -           6,539
      related costs
      Write-off of
      deferred financing    -             -               -           321
      costs
      Adjusted EBITDA    $  39,565     $  44,029       $  130,916  $  121,663
      (Non-GAAP)



NYSE: "DY"
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 nine months ended April 27, 2013.
                                                        Nine Months Ended
                                                        April 27, 2013
                                                 (Dollars in thousands, except
                                                 per share amounts)
Reconciling Items:
         Acquisition related costs, pre-tax      $      (6,539)
         Write-off of deferred financing costs          (321)
Total Reconciling Items                          $      (6,860)
GAAP net income                                  $      20,522
Adjustment for Reconciling Items above, net of          4,154
tax
Non-GAAP net income                              $      24,676
Earnings per common share:
Basic earnings per common share - GAAP          $      0.62
Adjustment for Reconciling Items above, net of          0.13
tax
Basic earnings per common share - Non-GAAP      $      0.75
Diluted earnings per common share - GAAP         $      0.61
Adjustment for Reconciling Items above, net of          0.12
tax
Diluted earnings per common share - Non-GAAP    $      0.73
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                                                32,968,897
 Diluted                                              33,684,974



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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