PALM BEACH GARDENS, Fla., Aug. 25, 2015 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter and fiscal year ended July 25, 2015.
The Company reported:
- Contract revenues of $578.5 million for the quarter ended July 25, 2015, compared to $482.1 million for the quarter ended July 26, 2014. Contract revenues for the quarter ended July 25, 2015 grew 18.2% on an organic basis after excluding revenues from acquired businesses that were not owned for the full period in both the current and prior year quarter. Total revenues from acquired businesses were $11.8 million for the quarter ended July 25, 2015, compared to $2.8 million for the quarter ended July 26, 2014.
- Adjusted EBITDA – Non-GAAP of $88.5 million, or 15.3% of revenue, for the quarter ended July 25, 2015, compared to $57.5 million, or 11.9% of revenue, for the quarter ended July 26, 2014.
- Net income of $33.8 million, or $0.97 per common share diluted, for the quarter ended July 25, 2015, compared to $16.5 million, or $0.47 per common share diluted, for the quarter ended July 26, 2014. On a Non-GAAP basis, net income was $16.9 million, or $0.48 per common share diluted, for the quarter ended July 26, 2014. Net income – Non-GAAP for the quarter ended July 26, 2014 excludes the impact of pre-tax charges of $0.6 million for a wage and hour class action settlement.
The Company also reported:
- Contract revenues of $2.022 billion for the fiscal year ended July 25, 2015, compared to $1.812 billion for the fiscal year ended July 26, 2014. Contract revenues for the fiscal year ended July 25, 2015 grew 9.6% on an organic basis after excluding revenues from acquired businesses that were not owned for the full year in both the current and prior year. Total revenues from acquired businesses were $40.4 million for the fiscal year ended July 25, 2015, compared to $2.8 million for the fiscal year ended July 26, 2014.
- Adjusted EBITDA – Non-GAAP of $265.5 million, or 13.1% of revenue, for the fiscal year ended July 25, 2015 compared to $188.4 million, or 10.4% of revenue, for the fiscal year ended July 26, 2014.
- Net income of $84.3 million, or $2.41 per common share diluted, for the fiscal year ended July 25, 2015 compared to $40.0 million, or $1.15 per common share diluted, for the fiscal year ended July 26, 2014. On a Non-GAAP basis, net income was $40.3 million, or $1.16 per common share diluted, for the fiscal year ended July 26, 2014. Net income – Non-GAAP for the fiscal year ended July 26, 2014 excludes the impact of pre-tax charges of $0.6 million for a wage and hour class action settlement.
The Company also announced its outlook for the first quarter of fiscal 2016. The Company currently expects total revenue for the first quarter of fiscal 2016 to range from $615 million to $635 million and diluted earnings per share to range from $0.96 to $1.04.
Fiscal 2016 first quarter guidance includes the expected results from recently acquired businesses, including TelCom Construction, Inc. and an affiliate (collectively, "TelCom"). TelCom was acquired on August 7th, 2015 for approximately $48.6 million in cash. It is based in Clearwater, Minnesota, and provides construction and maintenance services for telecommunications providers throughout the United States.
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, August 26, 2015; 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 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 August 26, 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, September 25, 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 August 26, 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 fourth quarter and full year 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---
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DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
Unaudited
|
|
|
As of
|
|
As of
|
|
|
July 25, 2015
|
|
July 26, 2014
|
|
ASSETS
|
|
(Dollars in thousands)
|
|
Current assets:
|
|
|
|
|
|
Cash and equivalents
|
|
$ 21,289
|
|
$ 20,672
|
|
Accounts receivable, net
|
|
315,134
|
|
272,741
|
|
Costs and estimated earnings in excess of billings
|
|
274,730
|
|
230,569
|
|
Inventories
|
|
48,650
|
|
49,095
|
|
Deferred tax assets, net
|
|
20,630
|
|
19,932
|
|
Other current assets
|
|
16,199
|
|
12,727
|
|
Total current assets
|
|
696,632
|
|
605,736
|
|
|
|
|
|
|
Property and equipment, net
|
|
231,564
|
|
205,413
|
|
Goodwill and other intangible assets, net
|
|
392,579
|
|
385,204
|
|
Other
|
|
38,089
|
|
16,001
|
|
Total non-current assets
|
|
662,232
|
|
606,618
|
|
Total assets
|
|
$ 1,358,864
|
|
$ 1,212,354
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$ 71,834
|
|
$ 63,318
|
|
Current portion of debt
|
|
3,750
|
|
10,938
|
|
Billings in excess of costs and estimated earnings
|
|
16,896
|
|
13,882
|
|
Accrued insurance claims
|
|
35,824
|
|
32,260
|
|
Other accrued liabilities
|
|
98,406
|
|
76,134
|
|
Total current liabilities
|
|
226,710
|
|
196,532
|
|
|
|
|
|
|
Long-term debt
|
|
521,841
|
|
446,863
|
|
Accrued insurance claims
|
|
51,476
|
|
33,782
|
|
Deferred tax liabilities, net non-current
|
|
47,388
|
|
45,361
|
|
Other liabilities
|
|
4,249
|
|
4,882
|
|
Total liabilities
|
|
851,664
|
|
727,420
|
|
|
|
|
|
|
Total stockholders' equity
|
|
507,200
|
|
484,934
|
|
Total liabilities and stockholders' equity
|
|
$ 1,358,864
|
|
$ 1,212,354
|
|
|
|
|
|
|
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Three Months
|
|
Fiscal Year
|
|
Fiscal Year
|
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
|
July 25, 2015
|
|
July 26, 2014
|
|
July 25, 2015
|
|
July 26, 2014
|
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Contract revenues
|
|
$ 578,479
|
|
$ 482,071
|
|
$ 2,022,312
|
|
$ 1,811,593
|
|
|
|
|
|
|
|
|
|
|
Costs of earned revenues, excluding depreciation and amortization
|
|
446,114
|
|
387,221
|
|
1,593,250
|
|
1,475,045
|
|
General and administrative expenses (a)
|
|
47,483
|
|
41,058
|
|
178,700
|
|
161,858
|
|
Depreciation and amortization
|
|
25,865
|
|
23,060
|
|
96,044
|
|
92,772
|
|
Total
|
|
519,462
|
|
451,339
|
|
1,867,994
|
|
1,729,675
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
(6,899)
|
|
(6,578)
|
|
(27,025)
|
|
(26,827)
|
|
Other income, net
|
|
1,292
|
|
3,028
|
|
8,291
|
|
11,228
|
|
Income before income taxes
|
|
53,410
|
|
27,182
|
|
135,584
|
|
66,319
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
19,583
|
|
10,693
|
|
51,260
|
|
26,341
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 33,827
|
|
$ 16,489
|
|
$ 84,324
|
|
$ 39,978
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$ 1.00
|
|
$ 0.49
|
|
$ 2.48
|
|
$ 1.18
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$ 0.97
|
|
$ 0.47
|
|
$ 2.41
|
|
$ 1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing earnings per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
33,936,859
|
|
33,965,484
|
|
34,045,481
|
|
33,773,158
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
34,830,901
|
|
34,960,049
|
|
35,026,688
|
|
34,816,381
|
|
|
|
|
|
|
|
|
|
|
(a) Includes stock-based compensation expense of $3.1 million and $2.9 million for the three months ended July 25, 2015 and July 26, 2014,
|
|
respectively, and $13.9 million and $12.6 million for the fiscal years ended July 25, 2015 and July 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
businesses
acquired (a)
|
|
Contract
Revenues -
Non-GAAP
|
|
%
Growth -
GAAP
|
|
%
Growth -
Non-GAAP
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 25, 2015
|
$ 578,479
|
|
$ (11,793)
|
|
$ 566,686
|
|
20.0%
|
|
18.2%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 26, 2014
|
$ 482,071
|
|
$ (2,772)
|
|
$ 479,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended July 25, 2015
|
$ 2,022,312
|
|
$ (40,353)
|
|
$ 1,981,959
|
|
11.6%
|
|
9.6%
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended July 26, 2014
|
$ 1,811,593
|
|
$ (2,772)
|
|
$ 1,808,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts for the three months and fiscal year ended July 25, 2015 represent revenues from businesses acquired during fiscal 2015 and the fourth quarter of fiscal 2014. Amounts for the three months and fiscal year ended July 26, 2014 represent revenues from a business acquired during the fourth quarter of fiscal 2014.
|
|
|
|
|
|
|
|
|
|
|
|
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 months and fiscal years ended July 25, 2015 and July 26, 2014 and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Three Months
|
|
Fiscal Year
|
|
Fiscal Year
|
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
|
July 25, 2015
|
|
July 26, 2014
|
|
July 25, 2015
|
|
July 26, 2014
|
|
|
(Dollars in thousands)
|
|
Reconciliation of net income to Adjusted EBITDA - Non-GAAP:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 33,827
|
|
$ 16,489
|
|
$ 84,324
|
|
$ 39,978
|
|
Interest expense, net
|
|
6,899
|
|
6,578
|
|
27,025
|
|
26,827
|
|
Provision for income taxes
|
|
19,583
|
|
10,693
|
|
51,260
|
|
26,341
|
|
Depreciation and amortization expense
|
|
25,865
|
|
23,060
|
|
96,044
|
|
92,772
|
|
Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA")
|
|
86,174
|
|
56,820
|
|
258,653
|
|
185,918
|
|
Gain on sale of fixed assets
|
|
(861)
|
|
(2,802)
|
|
(7,110)
|
|
(10,706)
|
|
Stock-based compensation expense
|
|
3,150
|
|
2,876
|
|
13,923
|
|
12,596
|
|
Charges for a wage and hour class action litigation settlement
|
|
-
|
|
600
|
|
-
|
|
600
|
|
Adjusted EBITDA - Non-GAAP
|
|
$ 88,463
|
|
$ 57,494
|
|
$ 265,466
|
|
$ 188,408
|
|
|
|
|
|
|
|
|
|
|
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
|
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION (CONTINUED)
|
|
Unaudited
|
|
|
|
|
|
|
The below table presents a reconciliation of GAAP to Non-GAAP net income for the three months and fiscal year ended July 26, 2014.
|
|
|
|
|
|
|
|
Three Months
|
|
Fiscal Year
|
|
|
Ended
|
|
Ended
|
|
|
July 26, 2014
|
|
July 26, 2014
|
|
|
(Dollars in thousands,
except per share amounts)
|
|
Reconciling Item:
|
|
|
|
|
|
Charges for a wage and hour class action litigation settlement
|
|
$ (600)
|
|
$ (600)
|
|
Total Reconciling Item
|
|
$ (600)
|
|
$ (600)
|
|
|
|
|
|
|
GAAP net income
|
|
$ 16,489
|
|
$ 39,978
|
|
Adjustment for Reconciling Item above, net of tax
|
|
364
|
|
364
|
|
Net income - Non-GAAP
|
|
$ 16,853
|
|
$ 40,342
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share - GAAP
|
|
$ 0.49
|
|
$ 1.18
|
|
Adjustment for Reconciling Item above, net of tax
|
|
0.01
|
|
0.01
|
|
Basic earnings per common share - Non-GAAP
|
|
$ 0.50
|
|
$ 1.19
|
|
|
|
|
|
|
Diluted earnings per common share - GAAP
|
|
$ 0.47
|
|
$ 1.15
|
|
Adjustment for Reconciling Item above, net of tax
|
|
0.01
|
|
0.01
|
|
Diluted earnings per common share - Non-GAAP
|
|
$ 0.48
|
|
$ 1.16
|
|
|
|
|
|
|
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 Item above:
|
|
|
|
|
|
|
Basic
|
|
33,965,484
|
|
33,773,158
|
|
|
|
|
|
|
Diluted
|
|
34,960,049
|
|
34,816,381
|
|
|
|
|
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dycom-industries-inc-announces-fiscal-2015-fourth-quarter-and-annual-results-and-provides-guidance-for-the-next-fiscal-quarter-300133113.html
SOURCE Dycom Industries, Inc.