Dycom Announces Fiscal 2009 Fourth Quarter Results

PALM BEACH GARDENS, Fla., Aug. 25 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter ended July 25, 2009. The Company reported:

  • contract revenues from continuing operations of $269.7 million for the quarter ended July 25, 2009, compared to $322.1 million for the quarter ended July 26, 2008, a decrease of 16.3%;
  • income from continuing operations on a GAAP basis of $6.7 million, or $0.17 per common share diluted, for the quarter ended July 25, 2009, compared to $4.6 million, or $0.12 per common share diluted, for the quarter ended July 26, 2008; and
  • income from continuing operations on a non-GAAP basis for the quarter ended July 26, 2008 was $9.1 million, or $0.23 per common share diluted.

Non-GAAP income from continuing operations for the quarter ended July 26, 2008 excludes a non-cash impairment charge of $9.7 million resulting from the Company's fiscal 2008 annual goodwill impairment test and a reduction of interest and income tax expense of $0.4 million and $1.1 million, respectively, related to the reversal of certain income tax related liabilities no longer required.

The Company also reported:

  • contract revenues from continuing operations of $1,106.9 million for the year ended July 25, 2009 compared to $1,230.0 million for the year ended July 26, 2008, a decrease of 10.0%;
  • loss from continuing operations on a GAAP basis of ($53.1) million, or ($1.35) per common share diluted, for the year ended July 25, 2009, compared to income from continuing operations of $24.4 million, or $0.60 per common share diluted, for the year ended July 26, 2008; and
  • income from continuing operations on a non-GAAP basis of $20.9 million, or $0.53 per common share diluted, for the year ended July 25, 2009, compared to $31.4 million, or $0.77 per common share diluted, for the year ended July 26, 2008.

Non-GAAP income from continuing operations for the year ended July 25, 2009 excludes a pre-tax gain of approximately $3.0 million related to the buyback of $14.65 million principal amount of the Company's senior subordinated notes due 2015, a goodwill impairment charge of $94.4 million and the write-off of $0.6 million of deferred financing costs in connection with the replacement of the Company's credit facility. In addition, non-GAAP income from continuing operations for the year ended July 25, 2009 excludes a reduction of interest and income tax expenses of $0.3 million and $1.4 million, respectively, related to the reversal of certain income tax liabilities no longer required. For the year ended July 26, 2008, non-GAAP income from continuing operations excludes a $7.6 million charge in cost of earned revenues related to a wage and hour class action settlement with respect to three of the Company's subsidiaries, a reduction of $1.7 million in cost of earned revenues related to the reversal of pre-acquisition payroll related accruals, a goodwill impairment charge of $9.7 million, and a reduction of interest and income tax expenses of $0.7 million and $2.0 million, respectively, related to the reversal of certain income tax liabilities no longer required.

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, August 26, 2009; Call 877-260-8900 (United States) or 612-332-0720 (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, September 25, 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.

Fiscal 2009 fourth quarter and annual results are preliminary and are unaudited. 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 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
    CONSOLIDATED BALANCE SHEETS
    July 25, 2009 and July 26, 2008
    Unaudited

                                              July 25,  July 26,
                                                2009      2008
                                                ----      ----
                                                 ($ in 000's)
    ASSETS
    Current Assets:
    Cash and equivalents                      $104,707   $22,068
    Accounts receivable, net                   116,968   146,420
    Costs and estimated earnings
     in excess of billings                      67,111    94,270
    Deferred tax assets, net                    15,779    19,347
    Income taxes receivable                      7,016     6,014
    Inventories                                  8,303     8,994
    Other current assets                         7,323     7,968
                                                 -----     -----

    Total current assets                       327,207   305,081

    Property and equipment, net                142,132   170,479
    Goodwill                                   157,851   252,374
    Intangible assets, net                      56,056    62,860
    Other                                       10,211    10,478
                                                ------    ------

    Total                                     $693,457  $801,272
                                              ========  ========

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
    Accounts payable                           $28,977   $29,835
    Current portion of debt                        926     2,306
    Billings in excess of costs and
     estimated earnings                            151       483
    Accrued insurance claims                    27,386    29,834
    Other accrued liabilities                   52,590    69,006
                                                ------    ------

    Total current liabilities                  110,030   131,464

    Long-term debt                             135,377   151,049
    Accrued insurance claims                    29,759    37,175
    Deferred tax liabilities,
     net non-current                            22,910    31,750
    Other liabilities                            4,758     5,741

    Stockholders' Equity                       390,623   444,093
                                               -------   -------

    Total                                     $693,457  $801,272
                                              ========  ========



    NYSE: "DY"

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

                         Three          Three         Twelve         Twelve
                         Months         Months        Months         Months
                         Ended          Ended         Ended          Ended
                         July 25,       July 26,      July 25,       July 26,
                         2009           2008          2009           2008
                         --------       --------      --------       --------
                               ($ in 000's, except per share amounts)

    Contract
     revenues           $269,691      $322,087     $1,106,900     $1,229,956
                        --------      --------     ----------     ----------

    Cost of earned
     revenues,
     excluding
     depreciation
     and amortization    213,646       262,403        894,885      1,011,219
    General and
     administrative
     expenses (1)         25,381        26,050         98,732         98,942
    Depreciation
     and
     amortization         15,843        17,030         65,435         67,288
    Goodwill
     impairment charge         -         9,672         94,429          9,672
                            ----         -----         ------          -----

    Total                254,870       315,155      1,153,481      1,187,121

    Interest income           26            73            260            691
    Interest expense      (3,429)       (2,865)       (14,742)       (13,096)
    Other income, net        765         2,113          6,564          7,154
                             ---         -----          -----          -----

    Income (loss)
     from continuing
     operations
     before income
     taxes                12,183         6,253        (54,499)        37,584

    Provision
     (benefit) for
     income taxes          5,477         1,666         (1,405)        13,180
                           -----         -----         ------         ------

    Income (loss)
     from continuing
     operations            6,706         4,587        (53,094)        24,404

    Loss from
     discontinued
     operations,
     net of tax              (78)       (1,497)           (86)        (2,726)
                             ---        ------            ---         ------

    Net income (loss)     $6,628        $3,090       $(53,180)       $21,678
                          ======        ======       ========        =======

    Earnings
     (loss) per
     common share -
     Basic:

    Income (loss)
     from continuing
     operations            $0.17         $0.12         $(1.35)         $0.60
    Loss from
     discontinued
     operations                -         (0.04)             -          (0.07)
                            ----         -----           ----          -----
    Net income (loss)      $0.17         $0.08         $(1.35)         $0.54
                           =====         =====         ======          =====

    Earnings
     (loss) per
     common share -
     Diluted:

    Income (loss)
     from
     continuing
     operations            $0.17         $0.12         $(1.35)         $0.60
    Loss from
     discontinued
     operations                -         (0.04)             -          (0.07)
                            ----         -----           ----          -----
    Net income (loss)      $0.17         $0.08         $(1.35)         $0.53
                           =====         =====         ======          =====

    Shares used in
     computing earnings
     (loss) per common
      share:
       Basic          38,987,751    39,718,070     39,254,813     40,417,945
                      ==========    ==========     ==========     ==========

       Diluted        39,133,159    39,801,674     39,254,813     40,601,739
                      ==========    ==========     ==========     ==========

    Earnings (loss) per share amounts may not add due to rounding.

    (1) Includes stock-based compensation expense of $1.1 million
        and $3.9 million for the three and twelve months ended July 25,
        2009, respectively, and $0.6 million and $5.2 million for the three
        and twelve months ended July 26, 2008, respectively.



    NYSE: "DY"

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

                            Three        Three         Twelve         Twelve
                            Months       Months        Months         Months
                            Ended        Ended         Ended          Ended
                            July 25,     July 26,      July 25,       July 26,
                            2009         2008          2009           2008
                            --------     --------      --------       --------
                                ($ in 000's, except per share amounts)
    Reconciling Items (a):
    Items decreasing
     Income (loss) from
     continuing operations:
      Goodwill impairment
       charge              $    -       $(9,672)      $(94,429)       $(9,672)
      Charge for wage and
       hour class action
       settlement          $    -       $     -       $      -        $(7,591)
      Write-off of deferred
       financing costs     $    -       $     -       $   (551)       $     -

    Items increasing Income
     (loss) from continuing
     operations:
      Gain on debt
       extinguishment, net $    -       $     -       $  3,027        $     -
      Reversal of interest
       expense on certain
       income tax
     liabilities           $    -       $   377       $    268        $   716
      Reversal of certain
       income tax
       liabilities         $    -       $ 1,133       $  1,358        $ 1,991
      Reversal of pre-
       acquisition payroll
       related accruals    $    -       $     -       $      -        $ 1,680

    (a) Reconciling Items
     reported above are on
     a pre-tax basis,
     except for "Reversal
     of certain income tax
     liabilities."

    GAAP income (loss) from
     continuing
     operations            $6,706       $ 4,587       $(53,094)       $24,404
    Adjustment for
     Reconciling Items
     above, net of tax          -         4,507         74,019          6,953
                             ----         -----         ------          -----
    Non-GAAP income from
     continuing operations $6,706       $ 9,094       $ 20,925        $31,357
                           ======        ======        =======        =======

    Earnings (loss) per
     common share from
     continuing
     operations:

    Basic earnings (loss)
     per common share from
     continuing operations
     - GAAP                $ 0.17       $  0.12       $  (1.35)       $  0.60
    Adjustment for
     Reconciling Items
     above, net of tax          -          0.11           1.89           0.17
                           ------       -------       --------        -------
    Basic earnings per
     common share from
     continuing operations
     - Non-GAAP            $ 0.17       $  0.23       $   0.53        $  0.78
                           ======       =======       ========        =======

    Diluted earnings (loss)
     per common share from
     continuing operations
     - GAAP                $ 0.17       $  0.12       $  (1.35)       $  0.60
    Adjustment for
     Reconciling Items
     above, net of tax          -          0.11           1.89           0.17
                           ------       -------       --------        -------
    Diluted earnings per
     common share from
     continuing
     operations- Non-GAAP  $ 0.17       $  0.23       $   0.53        $  0.77
                           ======       =======       ========        =======


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

       Basic           38,987,751   39,718,070     39,254,813     40,417,945
                       ==========   ==========     ==========     ==========

       Diluted         39,133,159   39,801,674     39,254,813     40,601,739
                       ==========   ==========     ==========     ==========

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

       Basic           38,987,751   39,718,070     39,254,813     40,417,945
                       ==========   ==========     ==========     ==========

       Diluted         39,133,159   39,801,674     39,284,817     40,628,916
                       ==========   ==========     ==========     ==========

    Earnings per share amounts may not add due to rounding.

SOURCE Dycom Industries, Inc.

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