Dycom Industries, Inc. Announces Fiscal 2015 Third Quarter Results And Provides Guidance For The Next Fiscal Quarter

PALM BEACH GARDENS, Fla., May 19, 2015 /PRNewswire/ -- Dycom Industries, Inc. DY announced today its results for the third quarter ended April 25, 2015.

The Company reported:

  • Contract revenues of $492.4 million for the quarter ended April 25, 2015, compared to $426.3 million for the quarter ended April 26, 2014. Contract revenues for the quarter ended April 25, 2015 grew 13.4% on an organic basis after excluding revenues from acquired businesses that were not owned for the full period in both the current and the prior year periods. Total revenues from acquired businesses were $8.9 million for the quarter ended April 25, 2015.
  • Adjusted EBITDA – Non-GAAP of $63.0 million, or 12.8% of revenue, for the quarter ended April 25, 2015, compared to $39.6 million, or 9.3% of revenue, for the quarter ended April 26, 2014.
  • Net income of $20.3 million, or $0.58 per common share diluted, for the quarter ended April 25, 2015, compared to $7.9 million, or $0.23 per common share, for the quarter ended April 26, 2014.

The Company also reported:

  • Contract revenues of $1.444 billion for the nine months ended April 25, 2015, compared to $1.330 billion for the nine months ended April 26, 2014. Contract revenues for the nine months ended April 25, 2015 grew 6.4% on an organic basis after excluding revenues from acquired businesses that were not owned for the full period in both the current and the prior year periods. Total revenues from acquired businesses were $28.6 million for the nine months ended April 25, 2015.
  • Adjusted EBITDA – Non-GAAP of $177.0 million, or 12.3% of revenue, for the nine months ended April 25, 2015 compared to $130.9 million, or 9.8% of revenue, for the nine months ended April 26, 2014.
  • Net income of $50.5 million, or $1.44 per common share diluted, for the nine months ended April 25, 2015 compared to $23.5 million, or $0.68 per common share diluted, for the nine months ended April 26, 2014.

The Company also announced its outlook for the fourth quarter of fiscal 2015. The Company currently expects total revenue for the fourth quarter of fiscal 2015 to range from $550 million to $570 million and diluted earnings per share to range from $0.74 to $0.82.

The Company has defined Adjusted EBITDA – Non-GAAP as earnings before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. See the accompanying table which presents a reconciliation of GAAP to Non-GAAP financial information.

A conference call to review the Company's results will be hosted at 9:00 a.m. (ET), Wednesday, May 20, 2015; call (800) 230-1085 (United States) or (612) 288-0337 (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 7:00 a.m. (ET) on May 20, 2015. 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 19, 2015.

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 at http://www.dycomind.com in the Investor Center. The Trend Schedule will be available at approximately 7:00 a.m. (ET) on May 20, 2015.

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.

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 2015 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 acquired businesses, 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---

 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

April 25, 2015 and July 26, 2014

Unaudited








April 25, 2015


July 26, 2014

ASSETS


(Dollars in thousands)

Current assets:





Cash and equivalents


$              22,542


$              20,672

Accounts receivable, net


265,772


272,741

Costs and estimated earnings in excess of billings


247,979


230,569

Inventories


45,205


49,095

Deferred tax assets, net


19,278


19,932

Other current assets


20,112


12,727

Total current assets


620,888


605,736






Property and equipment, net 


226,328


205,413

Goodwill 


269,465


269,088

Intangible assets, net 


110,031


116,116

Other 


30,404


16,001

Total non-current assets


636,228


606,618

Total assets


$         1,257,116


$         1,212,354






LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities:





Accounts payable


$              64,463


$              63,318

Current portion of debt


-


10,938

Billings in excess of costs and estimated earnings


14,271


13,882

Accrued insurance claims


38,036


32,260

Other accrued liabilities


78,224


76,134

Total current liabilities


194,994


196,532






Long-term debt


446,692


446,863

Accrued insurance claims 


39,487


33,782

Deferred tax liabilities, net non-current 


48,815


45,361

Other liabilities 


4,942


4,882

Total liabilities


734,930


727,420






Total stockholders' equity


522,186


484,934

Total liabilities and stockholders' equity 


$         1,257,116


$         1,212,354






 

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited












Three Months


Three Months


Nine Months


Nine Months



Ended


Ended


Ended


Ended



April 25, 2015


April 26, 2014


April 25, 2015


April 26, 2014



(Dollars in thousands, except per share amounts)










Contract revenues 


$                492,363


$                426,284


$             1,443,833


$             1,329,522










Costs of earned revenues, excluding depreciation and amortization


388,239


350,352


1,147,136


1,087,824

General and administrative expenses (a)


44,707


39,162


131,218


120,799

Depreciation and amortization


23,985


22,726


70,179


69,713

Total 


456,931


412,240


1,348,533


1,278,336










Interest expense, net


(6,646)


(6,563)


(20,126)


(20,249)

Other income, net


3,471


5,593


7,001


8,200

Income before income taxes


32,257


13,074


82,175


39,137










Provision for income taxes


11,999


5,179


31,678


15,649










Net income 


$                  20,258


$                    7,895


$                  50,497


$                  23,488










Earnings per common share:


















Basic earnings per common share


$                      0.59


$                      0.23


$                      1.48


$                      0.70










Diluted earnings per common share


$                      0.58


$                      0.23


$                      1.44


$                      0.68



















Shares used in computing earnings per common share:









   Basic


34,107,262


33,860,832


34,081,381


33,707,957










   Diluted


35,028,956


34,763,035


35,091,644


34,767,400










(a) Includes stock-based compensation expense of $3.2 million and $2.7 million for the three months ended April 25, 2015 and April 26, 2014, 

      respectively, and $10.8 million and $9.7 million for the nine months ended April 25, 2015 and April 26, 2014, respectively.










 

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 of GAAP and Non-GAAP contract revenues.
















Contract Revenues - GAAP


Revenues from
acquired
businesses (a)


Contract Revenues - Non-GAAP


%
Growth - GAAP


%
Growth -
Non-GAAP




(Dollars in thousands)


















Three Months Ended April 25,2015


$    492,363


$

(8,919)


$

483,444


15.5%


13.4%














Three Months Ended April 26, 2014


$    426,284


$

-


$

426,284


















Nine Months Ended April 25, 2015


$ 1,443,833


$

(28,560)


$

1,415,273


8.6%


6.4%














Nine Months Ended April 26, 2014


$ 1,329,522


$

-


$

1,329,522

















(a) Amounts for the three and nine months ended April 25, 2015 represent revenues from businesses acquired during the fourth quarter of fiscal 2014 and the first quarter of fiscal 2015.













 


DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INFORMATION (CONTINUED)

Unaudited











The below table presents the Non-GAAP financial measure of Adjusted EBITDA for the three and nine months ended April 25, 2015 and April 26, 2014 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.













Three Months


Three Months



Nine Months


Nine Months



Ended


Ended



Ended


Ended



April 25, 2015


April 26, 2014



April 25, 2015


April 26, 2014



(Dollars in thousands)

Reconciliation of net income to Adjusted EBITDA - Non-GAAP:










Net income 


$              20,258


$                7,895



$              50,497


$              23,488

Interest expense, net


6,646


6,563



20,126


20,249

Provision for income taxes


11,999


5,179



31,678


15,649

Depreciation and amortization expense


23,985


22,726



70,179


69,713

Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA")

62,888


42,363



172,480


129,099

Gain on sale of fixed assets


(3,067)


(5,469)



(6,249)


(7,904)

Stock-based compensation expense


3,219


2,671



10,773


9,721

Adjusted EBITDA - Non-GAAP


$              63,040


$              39,565



$            177,004


$            130,916

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dycom-industries-inc-announces-fiscal-2015-third-quarter-results-and-provides-guidance-for-the-next-fiscal-quarter-300085994.html

SOURCE Dycom Industries, Inc.

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