Dycom Announces Fiscal 2008 Second Quarter Results and Provides Guidance for the Third Quarter of Fiscal 2008

PALM BEACH GARDENS, Fla., Feb. 26 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. (NYSE:DY) announced today its results for the second quarter ended January 26, 2008. The Company reported a loss from continuing operations for the quarter ended January 26, 2008 of ($3.1) million, or ($0.08) per common share diluted, versus income from continuing operations for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted. Net loss, including the results of discontinued operations, for the quarter ended January 26, 2008 was ($3.2) million, or ($0.08) per common share diluted, compared to net income of $5.6 million, or $0.14 per common share diluted, for the quarter ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company's subsidiaries, earnings from continuing operations for the quarter ended January 26, 2008 were $1.5 million, or $0.04 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 26, 2008 were $284.8 million compared to $258.3 million for the quarter ended January 27, 2007, an increase of 10.2%. Stock based compensation expense for the quarter ended January 26, 2008 and quarter ended January 27, 2007 was $1.0 million and $1.6 million, respectively, on a pre-tax basis.

For the six months ended January 26, 2008 income from continuing operations was $12.1 million, or $0.30 per common share diluted, versus income from continuing operations for the six months ended January 27, 2007 of $15.2 million, or $0.37 per common share diluted. Net income, including the results of discontinued operations, for the six months ended January 26, 2008 was $11.7 million or $0.28 per common share diluted, compared to net income of $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company's subsidiaries, income from continuing operations for the six months ended January 26, 2008 was $16.7 million, or $0.41 per common share on a fully diluted basis. Total contract revenues from continuing operations for the six months ended January 26, 2008 were $614.4 million compared to $528.8 million for the six months ended January 27, 2007, an increase of 16.2%. Stock based compensation expense for the six months ended January 26, 2008 and the six months ended January 27, 2007 was $3.2 million and $3.3 million, respectively, on a pre-tax basis.

Dycom also announced its outlook for the third quarter of fiscal 2008. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2008 to range from $270 million to $295 million and diluted earnings per share from continuing operations to range from $0.08 to $0.13, including stock based compensation expense of approximately $1.2 million on a pre-tax basis. Management believes that discontinued operations will not have a material impact on the quarter.

A Tele-Conference call to review the Company's results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, February 27, 2008; Call 800-230-1059 (United States) or 612-332-0923 (International) and request "Dycom Results" 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, March 29, 2008.

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 2008 second quarter and six-month results are preliminary and are 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, stock-based compensation expense 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 our recent acquisition 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.



    NYSE: "DY"

    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    January 26, 2008 and July 28, 2007
    Unaudited

                                                      January 26,    July 28,
                                                         2008         2007
                                                      -----------  -----------
                                                            ($ in 000's)
    ASSETS
    Current Assets:
    Cash and equivalents                                $27,259      $18,862
    Accounts receivable, net                            128,770      146,864
    Costs and estimated earnings in excess of
     billings                                            79,092       95,392
    Deferred tax assets, net                             19,448       15,478
    Income taxes receivable                               9,170            -
    Inventories                                           9,538        8,268
    Other current assets                                 12,416        7,266
    Current assets of discontinued operations               255          307
                                                      -----------  -----------
    Total current assets                                285,948      292,437

    Property and equipment, net                         174,251      164,544
    Intangible assets, net                              317,012      320,952
    Other                                                11,207       11,831
                                                      -----------  -----------
    Total                                              $788,418     $789,764
                                                      ===========  ===========
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
    Accounts payable                                    $25,674      $30,375
    Current portion of debt                               2,883        3,301
    Billings in excess of costs and estimated
     earnings                                             1,067          712
    Accrued self-insured claims                          29,774       26,902
    Income taxes payable                                      -        1,947
    Other accrued liabilities                            60,042       63,076
    Current liabilities of discontinued operations        1,126          939
                                                      -----------  -----------
    Total current liabilities                           120,566      127,252

    Long-term debt                                      152,119      163,509
    Accrued self-insured claims                          35,624       33,085
    Deferred tax liabilities, net non-current            16,767       19,316
    Other liabilities                                     8,178        1,322
    Non-current liabilities of discontinued
     operations                                             565          649

    Stockholders' Equity                                454,599      444,631
                                                      -----------  -----------
    Total                                              $788,418     $789,764
                                                      ===========  ===========



    NYSE: "DY"

    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    Unaudited

                                  Three       Three        Six         Six
                                  Months      Months      Months      Months
                                  Ended       Ended       Ended       Ended
                               January 26, January 27, January 26, January 27,
                                   2008        2007        2008        2007
                               ----------- ----------- ----------- -----------
                                     (In 000's, except per share amounts)

    Contract revenues            $284,758    $258,293    $614,430    $528,846
                               ----------- ----------- ----------- -----------
    Cost of earned revenues,
     excluding depreciation
     and amortization             247,906     210,771     509,218     428,536
    General and administrative
     expenses (1)                  22,315      21,395      47,923      43,074
    Depreciation and
     amortization                  16,910      14,142      32,957      26,637
                               ----------- ----------- ----------- -----------

    Total                         287,131     246,308     590,098     498,247
                               ----------- ----------- ----------- -----------

    Interest income                   171         234         381         627
    Interest expense               (3,566)     (3,953)     (7,122)     (7,710)
    Other income, net                 798       1,129       2,370       1,624
                               ----------- ----------- ----------- -----------

    Income (loss) from continuing
     operations before income
     taxes                         (4,970)      9,395      19,961      25,140


    Provision (benefit) for income
     taxes                         (1,837)      3,747       7,837       9,966
                               ----------- ----------- ----------- -----------

    Income (loss) from continuing
     operations                    (3,133)      5,648      12,124      15,174


    Loss from discontinued
     operations, net of tax (2)       (93)        (63)       (422)        (29)
                               ----------- ----------- ----------- -----------
    Net income (loss)             $(3,226)     $5,585    $ 11,702     $15,145
                               =========== =========== =========== ===========

    Earnings (loss) per common
     share - Basic:

    Income (loss) from continuing
     operations                    $(0.08)      $0.14       $0.30       $0.38
    Loss from discontinued
     operations                         -           -       (0.01)          -
                               ----------- ----------- ----------- -----------
    Net income (loss)              $(0.08)      $0.14       $0.29       $0.38
                               =========== =========== =========== ===========


    Earnings (loss) per common
     share - Diluted:

    Income (loss) from
     continuing operations         $(0.08)      $0.14       $0.30       $0.37
    Loss from discontinued
     operations                         -           -       (0.01)          -
                               ----------- ----------- ----------- -----------
    Net income (loss)              $(0.08)      $0.14       $0.28       $0.37
                               =========== =========== =========== ===========


    Shares used in computing
     earnings (loss) per
     common share:
      Basic                    40,799,664  40,295,932  40,759,267  40,253,498
                               =========== =========== =========== ===========

      Diluted                  40,799,664  40,599,162  41,073,223  40,553,092
                               =========== =========== =========== ===========

    Earnings per share amounts may not add due to rounding.

    (1) Includes stock-based compensation expense of $1.0 million and $3.2
        million for the three and six months ended January 26, 2008,
        respectively, and $1.6 million and $3.3 million for the three and six
        months ended January 27, 2007, respectively.

    (2) 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.



    NYSE: "DY"

    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
    Unaudited

                                  Three       Three        Six         Six
                                  Months      Months      Months      Months
                                  Ended       Ended       Ended       Ended
                               January 26, January 27, January 26, January 27,
                                   2008        2007        2008        2007
                               ----------- ----------- ----------- -----------
                                      (In 000's, except per share amounts)


    Item:
      Charge for wage and
       hour litigation             $(7,591)     $    -     $(7,591)    $     -
                               =========== =========== =========== ===========


    GAAP income (loss) from
     continuing operations         $(3,133)     $5,648     $12,124     $15,174
    Adjustment for item above,
     net of tax                      4,597           -       4,597           -
                               ----------- ----------- ----------- -----------
    Non-GAAP income from
     continuing operations          $1,464      $5,648     $16,721     $15,174
                               =========== =========== =========== ===========
    Earnings (loss) per common
     share from continuing
     operations:

    Basic earnings (loss) per
     share from continuing
     operations - GAAP              $(0.08)      $0.14       $0.30       $0.38
    Adjustment for item above         0.11           -        0.11           -
                               ----------- ----------- ----------- -----------
    Basic earnings per share
     from continuing operations
     - Non-GAAP (1)                  $0.04       $0.14       $0.41       $0.38
                               =========== =========== =========== ===========
    Diluted earnings (loss) per
     share from continuing
     operations- GAAP               $(0.08)      $0.14       $0.30       $0.37
    Adjustment for item above         0.11          -         0.11           -
                               ----------- ----------- ----------- -----------
    Diluted earnings per share
     from continuing operations
     - Non-GAAP (1)                  $0.04       $0.14       $0.41       $0.37
                               =========== =========== =========== ===========

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

      Basic                     40,799,664  40,295,932  40,759,267  40,253,498
                               =========== =========== =========== ===========
      Diluted                   40,799,664  40,599,162  41,073,223  40,553,092
                               =========== =========== =========== ===========
    Shares used in computing
     Non-GAAP earnings per
     common share from
     continuing operations:

      Basic                     40,799,664  40,295,932  40,759,267  40,253,498
                               =========== =========== =========== ===========
      Diluted                   41,106,655  40,599,162  41,127,577  40,553,092
                               =========== =========== =========== ===========

    (1) Amounts may not add due to rounding.

Source: Dycom Industries, Inc.

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