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Dycom Industries, Inc. Announces Fiscal 2024 Second Quarter Results
المصدر: Nasdaq GlobeNewswire / 23 أغسطس 2023 06:00:59 America/New_York
Second Quarter Highlights
- Contract revenues of $1.042 billion; 7.1% growth year over year
- Non-GAAP Adjusted EBITDA of $130.8 million, or 12.6% of contract revenues
- Net Income of $60.2 million, or $2.03 per common share diluted
PALM BEACH GARDENS, Fla., Aug. 23, 2023 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended July 29, 2023. Contract revenues were $1.042 billion for the quarter ended July 29, 2023, compared to $972.3 million in the year ago quarter, an increase of 7.1%. Non-GAAP Adjusted EBITDA was $130.8 million, or 12.6% of contract revenues, for the quarter ended July 29, 2023, compared to $104.7 million, or 10.8% of contract revenues, in the year ago quarter.
Net income was $60.2 million, or $2.03 per common share diluted, for the quarter ended July 29, 2023, compared to $43.9 million, or $1.46 per common share diluted, in the year ago quarter.
Year-to-Date Highlights
Contract revenues were $2.087 billion for the six months ended July 29, 2023, compared to $1.849 billion for the comparable year ago period, an increase of 12.9%. Non-GAAP Adjusted EBITDA was $244.3 million, or 11.7% of contract revenues, for the six months ended July 29, 2023, compared to $168.4 million, or 9.1% of contract revenues, in the comparable year ago period.
Net income was $111.8 million, or $3.76 per common share diluted, for the six months ended July 29, 2023, compared to $63.4 million, or $2.11 per common share diluted, for the comparable year ago period.
During the six months ended July 29, 2023, the Company purchased 225,000 shares of its own common stock in open market transactions for $20.3 million at an average price of $90.21 per share.
Outlook
The Company expects organic contract revenues for the quarter ending October 28, 2023 to be in line with contract revenues for the quarter ended October 29, 2022. In addition, the Company expects approximately $30 million of acquired contract revenues for the quarter ending October 28, 2023. Non-GAAP Adjusted EBITDA as a percentage of contract revenues for the quarter ending October 28, 2023 is expected to increase 50 to 100 basis points as compared to the quarter ended October 29, 2022. For additional information regarding the Company’s outlook, please see the presentation materials available on the Company’s website posted in connection with the conference call discussed below.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, the Company may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. See Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures in the press release tables that follow.
Conference Call Information and Other Selected Data
The Company will host a conference call to discuss fiscal 2024 second quarter results on Wednesday, August 23, 2023 at 9:00 a.m. Eastern time. Interested parties may participate in the question and answer session of the conference call by registering at https://register.vevent.com/register/BI288e769471ed45fd907adb9c35fcd006. Upon registration, participants will receive a dial-in number and unique PIN to access the call. Participants are encouraged to join approximately ten minutes prior to the scheduled start time.
For all other attendees, a live listen-only audio webcast of the call, including an accompanying slide presentation, can be accessed directly at https://edge.media-server.com/mmc/p/gexod6ui. A replay of the live webcast and the related materials will be available on the Company's Investor Center website at https://dycomind.com/investors for approximately 120 days following the event.
About Dycom Industries, Inc.
Dycom is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States. These services include program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services. Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.
Forward Looking Information
This press release contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarter ending October 28, 2023, including, but not limited to, those statements found under the “Outlook” section of this press release. Forward-looking statements are based on management’s expectations, estimates and projections, are made solely as of the date these statements are made, and are subject to both known and unknown risks and uncertainties that may cause the actual results and occurrences discussed in these forward-looking statements to differ materially from those referenced or implied in the forward-looking statements contained in this press release. The most significant of these known risks and uncertainties are described in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) and include future economic conditions and trends including the potential impacts of an inflationary economic environment, changes to customer capital budgets and spending priorities, the availability and cost of materials, equipment and labor necessary to perform our work, the adequacy of the Company’s insurance and other reserves and allowances for doubtful accounts, whether the carrying value of the Company’s assets may be impaired, the future impact of any acquisitions or dispositions, adjustments and cancellations of the Company’s projects, the impact to the Company’s backlog from project cancellations or postponements, the impacts of pandemics and public health emergencies, the impact of varying climate and weather conditions, the anticipated outcome of other contingent events, including litigation or regulatory actions involving the Company, the adequacy of our liquidity, the availability of financing to address our financials needs, the Company’s ability to generate sufficient cash to service its indebtedness, the impact of restrictions imposed by the Company’s credit agreement, and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update its forward-looking statements.
For more information, contact:
Callie Tomasso, Investor Relations
Email: investorrelations@dycomind.com
Phone: (561) 627-7171---Tables Follow--- DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) Unaudited July 29, 2023 January 28, 2023 ASSETS Current assets: Cash and equivalents $ 83,377 $ 224,186 Accounts receivable, net 1,214,450 1,067,013 Contract assets 77,254 43,932 Inventories 117,225 114,972 Income tax receivable 10,659 3,929 Other current assets 52,282 38,648 Total current assets 1,555,247 1,492,680 Property and equipment, net 393,233 367,852 Operating lease right-of-use assets 72,790 67,240 Goodwill and other intangible assets, net 352,132 359,111 Other assets 22,199 26,371 Total assets $ 2,395,601 $ 2,313,254 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 204,776 $ 207,739 Current portion of debt 17,500 17,500 Contract liabilities 20,864 19,512 Accrued insurance claims 45,225 41,043 Operating lease liabilities 29,348 27,527 Income taxes payable — 14,896 Other accrued liabilities 141,733 141,334 Total current liabilities 459,446 469,551 Long-term debt 799,395 807,367 Accrued insurance claims - non-current 49,293 49,347 Operating lease liabilities - non-current 43,213 39,628 Deferred tax liabilities, net - non-current 61,177 60,205 Other liabilities 19,031 18,401 Total liabilities 1,431,555 1,444,499 Total stockholders’ equity 964,046 868,755 Total liabilities and stockholders’ equity $ 2,395,601 $ 2,313,254 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share amounts) Unaudited Quarter Quarter Six Months Six Months Ended Ended Ended Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Contract revenues $ 1,041,535 $ 972,273 $ 2,087,009 $ 1,848,573 Costs of earned revenues, excluding depreciation and amortization 830,409 797,980 1,683,775 1,543,710 General and administrative1 84,832 73,336 167,188 142,716 Depreciation and amortization 37,993 35,345 75,265 71,981 Total 953,234 906,661 1,926,228 1,758,407 Interest expense, net (12,277 ) (9,347 ) (23,649 ) (18,465 ) Other income, net 5,731 2,587 10,722 7,381 Income before income taxes 81,755 58,852 147,854 79,082 Provision for income taxes2 21,509 14,996 36,085 15,690 Net income $ 60,246 $ 43,856 $ 111,769 $ 63,392 Earnings per common share: Basic earnings per common share $ 2.05 $ 1.48 $ 3.81 $ 2.14 Diluted earnings per common share $ 2.03 $ 1.46 $ 3.76 $ 2.11 Shares used in computing earnings per common share: Basic 29,328,218 29,540,174 29,348,700 29,579,498 Diluted 29,610,946 29,943,422 29,708,025 30,021,486 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES(Dollars in thousands) Unaudited NET INCOME AND NON-GAAP ADJUSTED EBITDA Quarter Quarter Six Months Six Months Ended Ended Ended Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Reconciliation of net income to Non-GAAP Adjusted EBITDA: Net income $ 60,246 $ 43,856 $ 111,769 $ 63,392 Interest expense, net 12,277 9,347 23,649 18,465 Provision for income taxes 21,509 14,996 36,085 15,690 Depreciation and amortization 37,993 35,345 75,265 71,981 Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") 132,025 103,544 246,768 169,528 Gain on sale of fixed assets (7,558 ) (3,467 ) (15,374 ) (8,856 ) Stock-based compensation expense 6,323 4,630 12,942 7,758 Non-GAAP Adjusted EBITDA $ 130,790 $ 104,707 $ 244,336 $ 168,430 Non-GAAP Adjusted EBITDA % of contract revenues 12.6 % 10.8 % 11.7 % 9.1 % DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)Explanation of Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company believes that the presentation of certain Non-GAAP financial measures in these materials provides information that is useful to investors because it allows for a more direct comparison of the Company’s performance for the period reported with the Company’s performance in prior periods. 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. Management defines the Non-GAAP financial measures used as follows:
- Non-GAAP Organic Contract Revenues - contract revenues from businesses that are included for the entire period in both the current and prior year periods, excluding contract revenues from storm restoration services. Non-GAAP Organic Contract Revenue change percentage is calculated as the change in Non-GAAP Organic Contract Revenues from the comparable prior year period divided by the comparable prior year period Non-GAAP Organic Contract Revenues. Management believes Non-GAAP Organic Contract Revenues is a helpful measure for comparing the Company’s revenue performance with prior periods.
- Non-GAAP Adjusted EBITDA - net income before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. Management believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the Company’s operating performance with prior periods as well as with the performance of other companies with different capital structures or tax rates.
Notes
1 Includes stock-based compensation expense of $6.3 million and $4.6 million for the quarters ended July 29, 2023 and July 30, 2022, respectively, and $12.9 million and $7.8 million for the six months ended July 29, 2023 and July 30, 2022, respectively.
2 Net income for the quarters ended July 29, 2023 and July 30, 2022 includes income tax benefits of $0.1 million and $0.1 million, respectively, related to the vesting and exercise of share-based awards. Net income for the six months ended July 29, 2023 includes income tax benefits of $2.8 million related to the vesting and exercise of share-based awards. Net income for the six months ended July 30, 2022 includes income tax benefits of $2.7 million related to the vesting and exercise of share-based awards, and $1.7 million for tax credits related to a tax filing for a prior year.
