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Dycom Industries, Inc. Announces Fiscal 2013 Second Quarter Results
Submitted by admin on 2/26/2013 @ 1:24 PM
Companies mentioned in this article:
Dycom Industries, Inc.
PALM BEACH GARDENS, Fla., Feb. 26, 2013 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended January 26, 2013. The results include the effect of the acquisition of substantially all of the telecommunications infrastructure services subsidiaries of Quanta Services, Inc., which was completed on December 3, 2012.
The Company reported:
-- Contract revenues of $369.3 million for the quarter ended January 26,
2013, compared to contract revenues of $267.4 million for the quarter
ended January 28, 2012. Contract revenues for the quarter ended January
26, 2013 grew 3.5% on an organic basis after excluding $75.9 million of
revenue from acquired subsidiaries and $16.7 million of revenue for
storm restoration services in the current period.
-- Adjusted EBITDA (Non-GAAP) of $37.2 million for the quarter ended
January 26, 2013, compared to $24.7 million for the quarter ended
January 28, 2012.
-- Net income on a GAAP basis of $1.5 million, or $0.04 per common share
diluted, for the quarter ended January 26, 2013, compared to $3.5
million, or $0.10 per common share diluted, for the quarter ended
January 28, 2012. On a Non-GAAP basis, net income for the quarter ended
January 26, 2013 was $5.2 million, or $0.15 per common share diluted.
The Non-GAAP net income for the quarter ended January 26, 2013 excludes
$5.8 million in pre-tax acquisition related costs and a pre-tax
write-off of $0.3 million of deferred financing costs in connection with
the replacement of the Company's credit facility in December 2012.
The Company also reported:
-- Contract revenues of $692.6 million for the six months ended January 26,
2013, compared to contract revenues of $587.0 million for the six months
ended January 28, 2012. Contract revenues for the six months ended
January 26, 2013 grew 2.9% on an organic basis after excluding $75.9
million of revenue from acquired subsidiaries and $16.7 million of
revenue for storm restoration services in the six months ended January
26, 2013 and $3.7 million of revenue for storm restoration services in
the six months ended January 28, 2012.
-- Adjusted EBITDA (Non-GAAP) of $77.6 million for the six months ended
January 26, 2013, compared to $65.1 million for the six months ended
January 28, 2012.
-- Net income on a GAAP basis of $13.3 million, or $0.40 per common share
diluted, for the six months ended January 26, 2013, compared to $16.5
million, or $0.48 per common share diluted, for the six months ended
January 28, 2012. On a Non-GAAP basis, net income for the six months
ended January 26, 2013 was $17.5 million, or $0.52 per common share
diluted. The Non-GAAP net income for the six months ended January 26,
2013 excludes $6.5 million in pre-tax acquisition related costs and a
pre-tax write-off of $0.3 million of deferred financing costs in
connection with the replacement of the Company's credit facility in
December 2012.
The Company has defined Adjusted EBITDA (Non-GAAP) as earnings before interest, taxes, depreciation and amortization, gain on sale of fixed assets, acquisition related costs, write-off of deferred financing costs, and stock-based compensation expense. See the accompanying tables which present a reconciliation of GAAP to Non-GAAP financial information.
Fiscal 2013 second quarter results are preliminary and are unaudited. In addition, the purchase price allocation of the tangible and intangible assets acquired and liabilities assumed during the period is preliminary and is subject to change.
A conference call to review the Company's results will be hosted at 9 a.m. (ET), Wednesday, February 27, 2013; call (877) 209-9922 (United States) or (612) 332-0632 (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 8 a.m. (ET) on February 27, 2013. 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, March 29, 2013.
Dycom is a leading provider of specialty contracting services. These services, which are provided throughout the United States and in Canada, 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 and others.
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.
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 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 businesses acquired in December 2012, expected benefits and synergies of the acquisition, future financial and operating results, future opportunities for the combined businesses, the future impact of any acquisitions or dispositions, including the consummation of such acquisitions and dispositions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, and the other risks detailed 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
January 26, 2013 and July 28, 2012
Unaudited
January 26, July 28,
2013 2012
---- ----
ASSETS (Dollars in thousands)
CURRENT
ASSETS:
Cash and
equivalents $22,590 $52,581
Accounts
receivable,
net 227,413 141,788
Costs and
estimated
earnings in
excess of
billings 148,502 127,321
Inventories 34,909 26,274
Deferred tax
assets, net 15,422 15,633
Income taxes
receivable 6,925 4,884
Other current
assets 13,923 8,466
------ -----
Total current
assets 469,684 376,947
------- -------
PROPERTY AND
EQUIPMENT,
NET 187,242 158,247
GOODWILL 262,989 174,849
INTANGIBLE
ASSETS, NET 134,306 49,773
OTHER 18,588 12,377
------ ------
TOTAL NON-
CURRENT
ASSETS 603,125 395,246
------- -------
TOTAL ASSETS $1,072,809 $772,193
========== ========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
CURRENT
LIABILITIES:
Accounts
payable $64,166 $36,823
Current
portion of
debt 6,250 74
Billings in
excess of
costs and
estimated
earnings 11,386 1,522
Accrued
insurance
claims 26,313 25,218
Other accrued
liabilities 69,959 50,926
------ ------
Total current
liabilities 178,074 114,563
LONG-TERM
DEBT
(including
debt premium
of $3.8
million at
January 26,
2013) 420,033 187,500
ACCRUED
INSURANCE
CLAIMS 23,693 23,591
DEFERRED TAX
LIABILITIES,
NET NON-
CURRENT 48,100 49,537
OTHER
LIABILITIES 4,537 4,071
----- -----
Total
liabilities 674,437 379,262
Total
Stockholders'
Equity 398,372 392,931
------- -------
TOTAL
LIABILITIES
AND
STOCKHOLDERS'
EQUITY $1,072,809 $772,193
========== ========
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
January 26, January 28, January 26, January 28,
2013 2012 2013 2012
---- ---- ---- ----
(Dollars in thousands, except per share amounts)
Contract revenues $369,326 $267,407 $692,613 $586,981
Costs of earned revenues, excluding 301,516 220,239 558,582 475,426
depreciation and amortization
General and administrative expenses (1) 38,827 24,275 67,652 49,633
Depreciation and amortization 20,819 15,528 36,130 31,486
------ ------ ------ ------
Total 361,162 260,042 662,364 556,545
Interest expense, net (5,748) (4,177) (9,946) (8,350)
Other income, net 428 2,357 2,042 5,317
--- ----- ----- -----
Income before income taxes 2,844 5,545 22,345 27,403
Provision for income taxes 1,381 2,060 9,022 10,952
----- ----- ----- ------
Net income $1,463 $3,485 $13,323 $16,451
Earnings per common share:
Basic earnings per common share $0.04 $0.10 $0.40 $0.49
Diluted earnings per common share $0.04 $0.10 $0.40 $0.48
Shares used in computing income per common share:
Basic 32,780,667 33,759,015 32,935,305 33,633,596
========== ========== ========== ==========
Diluted 33,514,416 34,636,520 33,607,180 34,431,419
========== ========== ========== ==========
(1) Includes stock-based compensation expense of $2.5 million and $1.6 million for the three months ended January 26, 2013 and January 28, 2012, respectively, and $4.8 million and $3.0 million for the six months ended January 26, 2013 and January 28,
2012, respectively.
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
(continued)
The below table presents the reconciliation of contract revenues adjusted for revenue from subsidiaries acquired in the second quarter of fiscal 2013 and storm restoration service revenues generated during the current and prior year periods.
Contract Revenues from Revenues Contract % %
Revenues - subsidiaries from storm Revenues - Growth - Growth -
GAAP acquired in the restoration Non-GAAP GAAP Non-GAAP
second quarter services
of fiscal 2013
--------------
(Dollars in thousands)
$369,326 $(75,946) $(16,721) $276,659 38.1% 3.5%
Three Months Ended January 26, 2013
$267,407 $ - $ - $267,407
Three Months Ended January 28, 2012
$692,613 $(75,946) $(16,721) $599,946 18.0% 2.9%
Six Months Ended January 26, 2013
$586,981 $ - $(3,729) $583,252
Six Months Ended January 28, 2012
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
(continued)
The below table presents a reconciliation of GAAP to Non-GAAP net income for the three and six months ended January 26, 2013 and January 28, 2012.
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
January 26, January 28, January 26, January 28,
2013 2012 2013 2012
---- ---- ---- ----
(Dollars in thousands, except per share amounts)
Reconciling Items:
Acquisition related costs $(5,829) $ - $(6,539) $ -
Write-off of deferred financing costs (321) - (321) -
Total Reconciling Items $(6,150) $ - $(6,860) $ -
GAAP net income $1,463 $3,485 $13,323 $16,451
Adjustment for Reconciling Items above, net of tax 3,710 - 4,154 -
----- ---
Non-GAAP net income $5,173 $3,485 $17,477 $16,451
Earnings per common share:
Basic earnings per common share - GAAP $0.04 $0.10 $0.40 $0.49
Adjustment for Reconciling Items above, net of tax 0.11 - 0.13 -
---- --- ---- ---
Basic earnings per common share - Non-GAAP $0.16 $0.10 $0.53 $0.49
Diluted earnings per common share - GAAP $0.04 $0.10 $0.40 $0.48
Adjustment for Reconciling Items above, net of tax 0.11 - 0.12 -
---- --- ---- ---
Diluted earnings per common share - Non-GAAP $0.15 $0.10 $0.52 $0.48
Earnings per share amounts may not add due to rounding.
Shares used in computing GAAP and Non-GAAP earnings per common share and adjustment for Reconciling Items above:
Basic 32,780,667 33,759,015 32,935,305 33,633,596
========== ========== ========== ==========
Diluted 33,514,416 34,636,520 33,607,180 34,431,419
========== ========== ========== ==========
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
(continued)
The below table presents the Non-GAAP financial measure of Adjusted EBITDA for the three and six months ended January 26, 2013 and January 28, 2012 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
January 26, January 28, January 26, January 28,
2013 2012 2013 2012
---- ---- ---- ----
(Dollars in thousands)
Reconciliation of Net income to Adjusted EBITDA (Non-GAAP):
Net income $1,463 $3,485 $13,323 $16,451
Interest expense, net 5,748 4,177 9,946 8,350
Provision for income taxes 1,381 2,060 9,022 10,952
Depreciation and amortization expense 20,819 15,528 36,130 31,486
Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") 29,411 25,250 68,421 67,239
(826) (2,220) (2,407) (5,139)
Gain on sale of fixed assets
2,496 1,642 4,762 2,968
Stock-based compensation expense
5,829 - 6,539 -
Acquisition related costs
321 - 321 -
Write-off of deferred financing costs
Adjusted EBITDA (Non-GAAP) $37,231 $24,672 $77,636 $65,068
======= ======= ======= =======
SOURCE Dycom Industries, Inc.