For the year ended July 26, 2008, income from continuing operations on a non-GAAP basis was $31.4 million, or $0.77 per common share diluted. This excludes the non-cash goodwill impairment charge and reductions in interest and income tax expense, an accrual related to the previously announced wage and hour class action settlement and the reversal of a pre-acquisition payroll related accrual for the year ended July 26, 2008. On a combined basis, these items decreased income from continuing operations $7.0 million, net of tax, or $0.17 per common share diluted, for the year ended July 26, 2008. For the year ended July 28, 2007, income from continuing operations on a non-GAAP basis was $40.7 million, or $1.00 per common share diluted, excluding a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. On a GAAP basis, income from continuing operations for the year ended July 26, 2008 was $24.4 million, or $0.60 per common share diluted, compared to income from continuing operations of $42.2 million, or $1.04 per common share diluted, for the year ended July 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Total contract revenues from continuing operations for the year ended July 26, 2008 were $1.230 billion compared to total contract revenues from continuing operations of $1.138 billion for the year ended July 28, 2007, an increase of 8.1%. Stock-based compensation expense for the year ended July 26, 2008 and the year ended July 28, 2007 was $5.2 million and $6.2 million, respectively, on a pre-tax basis.
Net income, including the results of discontinued operations, for the quarter ended July 26, 2008 was $3.1 million, or $0.08 per common share diluted, compared to $14.3 million, or $0.35 per common share diluted for the quarter ended July 28, 2007. Net income, including the results of discontinued operations, for the year ended July 26, 2008 was $21.7 million, or $0.53 per common share diluted, compared to $41.9 million, or $1.03 per common share diluted, for the year ended July 28, 2007.
Dycom also announced its outlook for the first quarter of fiscal 2009. The Company currently expects revenue for the first quarter of fiscal 2009 to range from $305 million to $325 million and diluted earnings per share to range from $0.18 to $0.23. Included in the expected results is stock-based compensation expense of approximately $1.8 million on a pre-tax basis.
A Tele-Conference call to review the Company's results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, August 27, 2008; Call 800-230-1059 (United States) or 612-234-9959 (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 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 also be available at http://www.dycomind.com until Friday, September 26, 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 results are preliminary and the quarterly and annual 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 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, 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
CONSOLIDATED BALANCE SHEETS
July 26, 2008 and July 28, 2007
Unaudited
July 26, July 28,
2008 2007
-------- --------
($ in 000's)
ASSETS
Current Assets:
Cash and equivalents $22,068 $18,862
Accounts receivable, net 146,420 146,864
Costs and estimated earnings in
excess of billings 94,270 95,392
Deferred tax assets, net 19,474 15,478
Income taxes receivable 6,014 -
Inventories 8,994 8,268
Other current assets 7,301 7,266
Current assets of discontinued operations 667 307
-------- --------
Total current assets 305,208 292,437
Property and equipment, net 170,479 164,544
Intangible assets, net 302,998 320,952
Other 10,478 11,831
Total $789,163 $789,764
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $29,835 $30,375
Current portion of debt 2,306 3,301
Billings in excess of costs and
estimated earnings 483 712
Accrued insurance claims 29,834 26,902
Income taxes payable - 1,947
Other accrued liabilities 66,275 63,076
Current liabilities of discontinued
operations 2,731 939
-------- --------
Total current liabilities 131,464 127,252
Long-term debt 151,049 163,509
Accrued insurance claims 37,175 33,085
Deferred tax liabilities, net non-current 19,641 19,316
Other liabilities 5,314 1,322
Non-current liabilities of
discontinued operations 427 649
Stockholders' Equity 444,093 444,631
-------- --------
Total $789,163 $789,764
======== ========
NYSE: "DY"
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
July 26, July 28, July 26, July 28,
2008 2007 2008 2007
------------ ------------ ------------- -------------
(In 000's, except per share amounts)
Contract revenues $322,087 $317,324 $1,229,956 $1,137,812
------------ ------------ ------------- -------------
Cost of earned
revenues, excluding
depreciation and
amortization 262,403 253,057 1,011,219 915,250
General and
administrative
expenses (1) 26,050 23,304 98,942 90,090
Depreciation and
amortization 17,030 15,835 67,288 57,799
Goodwill impairment
charge 9,672 - 9,672 -
------------ ------------ ------------- -------------
Total 315,155 292,196 1,187,121 1,063,139
------------ ------------ ------------- -------------
Interest income 73 165 691 966
Interest expense (2,865) (3,503) (13,096) (14,809)
Other income, net 2,113 1,833 7,154 8,647
------------ ------------ ------------- -------------
Income from continuing
operations before
income taxes 6,253 23,623 37,584 69,477
Provision for income
taxes 1,666 9,165 13,180 27,275
------------ ------------ ------------- -------------
Income from continuing
operations 4,587 14,458 24,404 42,202
Loss from discontinued
operations, net of
tax (2) (1,497) (164) (2,726) (318)
------------ ------------ ------------- -------------
Net income $3,090 $14,294 $21,678 $41,884
============ ============ ============= =============
Earnings per common
share - Basic:
Income from continuing
operations $0.12 $0.36 $0.60 $1.04
Loss from discontinued
operations (0.04) - (0.07) (0.01)
------------ ------------ ------------- -------------
Net income $0.08 $0.35 $0.54 $1.04
============ ============ ============= =============
Earnings per common
share - Diluted:
Income from continuing
operations $0.12 $0.35 $0.60 $1.04
Loss from discontinued
operations (0.04) - (0.07) (0.01)
------------ ----------- -------------- -------------
Net income $0.08 $0.35 $0.53 $1.03
============ =========== ============== =============
Shares used in computing
earnings per common
share:
Basic 39,718,070 40,659,201 40,417,945 40,407,641
============ =========== ============== =============
Diluted 39,801,674 41,066,597 40,601,739 40,713,895
============ =========== ============== =============
Earnings per share amounts may not add due to rounding.
(1) Includes stock-based compensation expense of $0.6 million and $5.2 million for the three and twelve months ended July 26, 2008, respectively, and $1.5 million and $6.2 million for the three and twelve months ended July 28, 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 Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
July 26, July 28, July 26, July 28,
2008 2007 2008 2007
------------ ------------ ------------- -------------
(In 000's, except per share amounts)
Items:
Goodwill impairment
charge $(9,672) $- $(9,672) $-
Reversal of interest
expense on income tax
related liabilities 377 - 716 -
Reversal of income tax
related liabilities 1,133 - 1,991 -
Charge for wage and hour
litigation - - (7,591) -
Reversal of
pre-acquisition payroll
related accruals - - 1,680 -
Gain on sale of real
estate - - - 2,485
------------ ------------ ------------- -------------
$(8,162) $- $(12,876) $2,485
============ ============ ============= =============
GAAP income from
continuing operations $4,587 $14,458 $24,404 $42,202
Adjustment for items
above, net of tax 4,507 - 6,953 (1,508)
------------ ------------ ------------- -------------
Non-GAAP income from
continuing operations $9,094 $14,458 $31,357 $40,694
============ ============ ============= =============
Earnings per common share
from continuing
operations:
Basic earnings per share
from continuing
operations - GAAP $0.12 $0.36 0.60 $1.04
Adjustment for items
above 0.11 - 0.17 (0.04)
------------ ------------ ------------- -------------
Basic earnings per share
from continuing
operations -
Non-GAAP (1) $0.23 $0.36 0.78 $1.01
============ ============ ============= =============
Diluted earnings per
share from continuing
operations - GAAP $0.12 $0.35 0.60 $1.04
Adjustment for items
above 0.11 - 0.17 (0.04)
------------ ------------ ------------- -------------
Diluted earnings per
share from continuing
operations-
Non-GAAP (1) $0.23 $0.35 0.77 $1.00
============ ============ ============= =============
Shares used in computing
GAAP earnings per common
share from continuing
operations and
adjustment for items
above (2):
Basic 39,718,070 40,659,201 40,417,945 40,407,641
=========== =========== ============= ============
Diluted 39,801,674 41,066,597 40,601,739 40,713,895
=========== =========== ============= ============
Shares used in computing
Non-GAAP earnings per
common share from
continuing operations (2):
Basic 39,718,070 40,659,201 40,417,945 40,407,641
=========== =========== ============= ============
Diluted 39,801,674 41,066,597 40,628,916 40,713,895
=========== =========== ============= ============
(1) Amounts may not add due to rounding.
(2) On each of August 28, 2007 and May 20, 2008, the Company's Board of Directors authorized the repurchase of up to $15 million of its common stock over an eighteen month period in open market or private transactions (for a cumulative authorization of $30 million). The Company repurchased 677,300 shares of its common stock during the three months ended July 26, 2008. The total amount repurchased during the twelve months ended July 26, 2008 was 1,693,500 shares.
