Dycom Announces Fiscal 2009 Second Quarter Results

PALM BEACH GARDENS, Fla., Feb. 24 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 24, 2009. The Company reported a loss from continuing operations for the quarter ended January 24, 2009 of ($78.3) million, or ($1.99) per common share, versus a loss from continuing operations for the quarter ended January 26, 2008 of ($3.1) million, or ($0.08) per common share. Total contract revenues from continuing operations for the quarter ended January 24, 2009 were $245.5 million compared to $284.8 million for the quarter ended January 26, 2008, a decrease of 13.8%.

For the quarter ended January 24, 2009, loss from continuing operations included 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 preliminary goodwill impairment charge of $96.8 million. This pre-tax impairment charge is the result of an interim test for impairment prompted by a sustained reduction in the Company's market capitalization compared to the book value of shareholders' equity. The interim impairment testing includes a reassessment of a number of valuation assumptions, including customer spending in the current economic environment. The Company expects to complete its impairment analysis in the third quarter of fiscal 2009. For the quarter ended January 26, 2008, loss from continuing operations included a pre-tax $7.6 million charge related to the settlement of a wage and hour class action. On a non-GAAP basis, excluding the aforementioned items, loss from continuing operations for the quarter ended January 24, 2009 was ($1.7) million, or ($0.04) per common share, versus income from continuing operations of $1.5 million, or $0.04 per common share diluted, for the quarter ended January 26, 2008. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

For the six months ended January 24, 2009, loss from continuing operations was ($67.8) million, or ($1.72) per common share, versus income from continuing operations for the six months ended January 26, 2008 of $12.1 million, or $0.30 per common share diluted. Total contract revenues from continuing operations for the six months ended January 24, 2009 were $579.5 million compared to $614.4 million for the six months ended January 26, 2008, a decrease of 5.7%.

For the six months ended January 24, 2009, loss from continuing operations included the pre-tax gain of approximately $1.3 million and the pre-tax goodwill impairment charge referred to above in addition to a write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company's credit facility in the first quarter of fiscal 2009. For the six months ended January 26, 2008, income from continuing operations included the $7.6 million pre-tax charge related to the settlement of the wage and hour class action referred to above. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the six months ended January 24, 2009 was $9.2 million, or $0.23 per common share diluted, versus income from continuing operations of $16.7 million, or $0.41 per common share diluted, for the six months ended January 26, 2008. See the attached tables which present 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 9:00 a.m. (ET), Wednesday, February 25, 2009; Call 800-398-9402 (United States) or 612-332-0806 (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 27, 2009.

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.

The fiscal 2009 second quarter results are preliminary and the information is 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, goodwill impairment and earnings (loss) 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, 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---


    NYSE: "DY"

    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    January 24, 2009 and July 26, 2008
    Unaudited

                                           January 24,    July 26,
                                              2009         2008
                                           --------     ---------
                                                 ($ in 000's)
    ASSETS
    Current Assets:
    Cash and equivalents                    $74,037       $22,068
    Accounts receivable, net                115,146       146,420
    Costs and estimated earnings in
     excess of billings                      58,047        94,270
    Deferred tax assets, net                 16,788        19,347
    Income taxes receivable                  10,921         6,014
    Inventories                               9,639         8,994
    Other current assets                     12,820         7,301
    Current assets of discontinued
     operations                                 644           667
                                           --------     ---------
    Total current assets                    298,042       305,081

    Property and equipment, net             156,801       170,479
    Goodwill (1)                            159,598       256,394
    Intangible assets, net                   59,334        62,860
    Other                                    11,605        10,478
                                           --------     ---------

    Total                                  $685,380      $805,292
                                           ========     =========

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
    Accounts payable                        $22,717       $29,835
    Current portion of debt                   1,759         2,306
    Billings in excess of costs and
     estimated earnings                         332           483
    Accrued insurance claims                 32,671        29,834
    Other accrued liabilities                44,060        66,275
    Current liabilities of
     discontinued operations                    638         2,731
                                           --------     ---------

    Total current liabilities               102,177       131,464

    Long-term debt                          145,678       151,049
    Accrued insurance claims                 34,378        37,175
    Deferred tax liabilities, net non-
     current (1)                             20,047        35,770
    Other liabilities                         5,830         5,314
    Non-current liabilities of
     discontinued operations                    473           427

    Stockholders' Equity                    376,797       444,093
                                           --------     ---------

    Total                                  $685,380      $805,292
                                           ========      ========

    (1) Goodwill and Deferred tax liabilities, net non-current have been
    increased by $16.3 million on the Condensed Consolidated Balance Sheet of
    the Company at July 26, 2008.  This correction is related to certain
    prior acquisitions and had no impact on the Company's Consolidated
    Statements of Operations or Consolidated Statements of Cash Flows.



    NYSE: "DY"

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

                     Three Months  Three Months  Six Months   Six Months
                         Ended         Ended       Ended        Ended
                      January 24,   January 26,  January 24,  January 26,
                         2009          2008         2009         2008
                      ----------    ----------   ----------   ----------
                            (In 000's, except per share amounts)

    Contract
     revenues           $245,522      $284,758     $579,489     $614,430
                      ----------    ----------   ----------   ----------

    Cost of earned
     revenues,
     excluding
     depreciation
     and
     amortization        205,860       247,906      474,506      509,218
    General and
     administrative
     expenses (1)         21,535        22,315       49,074       47,923
    Depreciation
     and amortization     16,817        16,910       33,429       32,957
    Goodwill
     impairment charge    96,796             -       96,796            -
                      ----------    ----------   ----------   ----------

    Total                341,008       287,131      653,805      590,098

    Interest income           40           171          174          381
    Interest expense      (4,099)       (3,566)      (8,151)      (7,122)
    Other income, net      1,832           798        2,234        2,370
                      ----------    ----------   ----------   ----------

    Income (loss)
     from continuing
     operations
     before income
     taxes               (97,713)       (4,970)     (80,059)      19,961

    Provision
     (benefit) for
     income taxes        (19,371)       (1,837)     (12,301)       7,837
                      ----------    ----------   ----------   ----------

    Income (loss)
     from continuing
     operations          (78,342)       (3,133)     (67,758)      12,124

    Loss from
     discontinued
     operations,
     net of tax                -           (93)         (37)        (422)
                      ----------    ----------   ----------   ----------

    Net income (loss)   $(78,342)      $(3,226)    $(67,795)     $11,702
                      ==========    ==========   ==========   ==========

    Earnings
     (loss) per
     common share -
     Basic:

    Income (loss)
     from continuing
     operations           $(1.99)       $(0.08)      $(1.72)       $0.30
    Loss from
     discontinued
     operations                -             -            -        (0.01)
                      ----------    ----------   ----------   ----------
    Net income (loss)     $(1.99)       $(0.08)      $(1.72)       $0.29
                      ==========    ==========   ==========   ==========

    Earnings
     (loss) per
     common share -
     Diluted:

    Income (loss)
     from continuing
     operations           $(1.99)       $(0.08)      $(1.72)       $0.30
    Loss from
     discontinued
     operations                -             -            -        (0.01)
                      ----------    ----------   ----------   ----------
    Net income (loss)     $(1.99)       $(0.08)      $(1.72)       $0.28
                      ==========    ==========   ==========   ==========


    Shares used in
     computing earnings
     (loss) per
     common share:
       Basic          39,379,470    40,799,664   39,350,611   40,759,267
                      ==========    ==========   ==========   ==========

       Diluted        39,379,470    40,799,664   39,350,611   41,073,223
                      ==========    ==========   ==========   ==========


    Earnings per share amounts may not add due to rounding.

    (1) Includes stock-based compensation expense of $0.3 million and $1.9
    million for the three and six months ended January 24, 2009,
    respectively, and $1.0 million and $3.2 million for the three and six
    months ended January 26, 2008, respectively.



    NYSE: "DY"

    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 24,   January 26,  January 24,  January 26,
                          2009          2008         2009         2008
                       ----------    ----------   ----------   ----------
                             (In 000's, except per share amounts)

    Item:
    Goodwill
     impairment charge   $(96,796)      $    -     $(96,796)      $    -
    Charge for wage
     and hour
     class action
     settlement                 -        (7,591)           -       (7,591)
    Gain on debt
     extinguishment, net    1,300             -        1,300            -
    Write-off of
     deferred
     financing costs            -             -         (551)           -
                       ----------    ----------   ----------   ----------
                         $(95,496)      $(7,591)    $(96,047)     $(7,591)
                       ==========    ==========   ==========   ==========


    GAAP income
     (loss) from
     continuing
     operations          $(78,342)      $(3,133)    $(67,758)     $12,124
    Adjustment for
     items above,
     net of tax            76,638         4,597       76,969        4,597
                       ----------    ----------   ----------   ----------
    Non-GAAP income
     (loss) from
     continuing
     operations           $(1,704)       $1,464       $9,211      $16,721
                       ==========    ==========   ==========   ==========

    Earnings (loss) per
     common share from
     continuing operations:

    Basic earnings
     (loss) per
     share from
     continuing
     operations -
     GAAP                  $(1.99)       $(0.08)      $(1.72)       $0.30
    Adjustment for
     items above             1.95          0.11         1.96         0.11
                       ----------    ----------   ----------   ----------
    Basic earnings
     (loss) per
     common share
     from continuing
     operations -
     Non-GAAP              $(0.04)        $0.04        $0.23        $0.41
                       ==========    ==========   ==========   ==========

    Diluted
     earnings (loss)
     per share from
     continuing
     operations  -
     GAAP                  $(1.99)       $(0.08)      $(1.72)       $0.30
    Adjustment for
     items above             1.95          0.11         1.96         0.11
                       ----------    ----------   ----------   ----------
    Diluted
     earnings (loss)
     per common
     share from
     continuing
     operations- Non-
     GAAP                  $(0.04)        $0.04        $0.23        $0.41
                       ==========    ==========   ==========   ==========


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

       Basic           39,379,470    40,799,664   39,350,611   40,759,267
                       ==========    ==========   ==========   ==========

       Diluted         39,379,470    40,799,664   39,350,611   41,073,223
                       ==========    ==========   ==========   ==========

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

       Basic           39,379,470    40,799,664   39,350,611   40,759,267
                       ==========    ==========   ==========   ==========

       Diluted         39,379,470    41,106,655   39,430,966   41,127,577
                       ==========    ==========   ==========   ==========

    Earnings per share amounts may not add due to rounding.

SOURCE Dycom Industries, Inc.

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