• Dycom Industries, Inc. Announces Fiscal 2025 Second Quarter Results

    المصدر: Nasdaq GlobeNewswire / 21 أغسطس 2024 05:00:00   America/Chicago

    Second Quarter Highlights

    • Contract revenues of $1.203 billion, an increase of 15.5%
    • Non-GAAP Adjusted EBITDA of $158.3 million, or 13.2% of contract revenues
    • Non-GAAP Adjusted Net Income of $72.5 million, or $2.46 per common share diluted

    PALM BEACH GARDENS, Fla., Aug. 21, 2024 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended July 27, 2024. Contract revenues increased 15.5% to $1.203 billion for the quarter ended July 27, 2024, compared to $1.042 billion in the year ago quarter. On an organic basis, contract revenues increased 9.2% after excluding $65.9 million of contract revenues from acquired businesses that were not owned during the year ago quarter.

    Non-GAAP Adjusted EBITDA increased to $158.3 million, or 13.2% of contract revenues, for the quarter ended July 27, 2024, compared to $130.8 million, or 12.6% of contract revenues, in the year ago quarter.

    On a GAAP basis, net income increased to $68.4 million, or $2.32 per common share diluted, for the quarter ended July 27, 2024, compared to $60.2 million, or $2.03 per common share diluted, in the year ago quarter. Non-GAAP Adjusted Net Income was $72.5 million, or $2.46 per common share diluted for the quarter ended July 27, 2024.

    During the quarter ended July 27, 2024, the Company amended its credit agreement to, among other things, expand term loan capacity and extend the maturity to January 2029.

    Year-to-Date Highlights

    Contract revenues increased 12.4% to $2.345 billion for the six months ended July 27, 2024, compared to $2.087 billion for the comparable year ago period. On an organic basis, contract revenues increased 5.8% after excluding $137.2 million of contract revenues from acquired businesses that were not owned during the comparable year ago period.

    Non-GAAP Adjusted EBITDA increased to $289.2 million, or 12.3% of contract revenues, for the six months ended July 27, 2024, compared to $244.3 million, or 11.7% of contract revenues, for the comparable year ago period.

    On a GAAP basis, net income increased to $131.0 million, or $4.44 per common share diluted, for the six months ended July 27, 2024, compared to $111.8 million, or $3.76 per common share diluted, for the comparable year ago period. Non-GAAP Adjusted Net Income was $135.0 million, or $4.58 per common share diluted for the six months ended July 27, 2024.

    During the six months ended July 27, 2024, the Company purchased 210,000 shares of its own common stock in open market transactions for $29.8 million at an average price of $141.84 per share.

    Outlook

    For the quarter ending October 26, 2024, the Company expects total contract revenues to increase mid- to high single digit as a percentage of contract revenues, compared to $1.136 billion for the quarter ended October 28, 2023. Included in the expectation for the current quarter is approximately $75 million of acquired revenues, compared to the prior year period that included $45.2 million of acquired revenues and $26.5 million of revenues from the impacts of a change order and the closeout of several projects.

    Non-GAAP Adjusted EBITDA as a percentage of contract revenues for the quarter ending October 26, 2024 is expected to increase approximately 25 to 50 basis points compared to 12.9% for the quarter ended October 28, 2023, after excluding 1.8% of incremental benefit in EBITDA margin from the impacts of a change order and the closeout of several projects reported in the prior year period.

    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 2025 second quarter results on Wednesday, August 21, 2024 at 9:00 a.m. ET. Interested parties may participate in the question and answer session of the conference call by registering at https://register.vevent.com/register/BI792f883035104fca9ba48d0d4da25061. 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/rk4t4eoj. 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 26, 2024, 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, Vice President 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 27, 2024 January 27, 2024
    ASSETS   
    Current assets:   
    Cash and equivalents$19,564  $101,086 
    Accounts receivable, net 1,507,475   1,243,256 
    Contract assets 74,229   52,211 
    Inventories 101,248   108,565 
    Income tax receivable 5,826   2,665 
    Other current assets 52,323   42,253 
    Total current assets 1,760,665   1,550,036 
        
    Property and equipment, net 482,996   444,909 
    Operating lease right-of-use assets 79,975   76,348 
    Goodwill and other intangible assets, net 429,548   420,945 
    Other assets 26,211   24,647 
    Total assets$2,779,395  $2,516,885 
        
    LIABILITIES AND STOCKHOLDERS’ EQUITY   
    Current liabilities:   
    Accounts payable$233,533  $222,121 
    Current portion of debt —   17,500 
    Contract liabilities 34,754   39,122 
    Accrued insurance claims 51,165   44,466 
    Operating lease liabilities 33,310   32,015 
    Income taxes payable —   3,861 
    Other accrued liabilities 158,341   147,219 
    Total current liabilities 511,103   506,304 
        
    Long-term debt 942,368   791,415 
    Accrued insurance claims - non-current 55,206   49,447 
    Operating lease liabilities - non-current 46,190   44,110 
    Deferred tax liabilities, net - non-current 43,943   49,562 
    Other liabilities 22,136   21,391 
    Total liabilities 1,620,946   1,462,229 
        
    Total stockholders’ equity 1,158,449   1,054,656 
    Total liabilities and stockholders’ equity$2,779,395  $2,516,885 
        


     
    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 27, 2024 July 29, 2023 July 27, 2024 July 29, 2023
    Contract revenues$1,203,059  $1,041,535  $2,345,482  $2,087,009 
            
    Costs of earned revenues, excluding depreciation and amortization 952,882   830,409   1,874,518   1,683,775 
    General and administrative1 99,583   84,832   194,138   167,188 
    Depreciation and amortization 46,572   37,993   91,777   75,265 
    Total 1,099,037   953,234   2,160,433   1,926,228 
            
    Interest expense, net (14,657)  (12,277)  (27,490)  (23,649)
    Loss on debt extinguishment2 (965)  —   (965)  — 
    Other income, net 6,419   5,731   15,669   10,722 
    Income before income taxes 94,819   81,755   172,263   147,854 
            
    Provision for income taxes3 26,419   21,509   41,309   36,085 
            
    Net income$68,400  $60,246  $130,954  $111,769 
            
    Earnings per common share:       
            
    Basic earnings per common share$2.35  $2.05  $4.50  $3.81 
            
    Diluted earnings per common share$2.32  $2.03  $4.44  $3.76 
            
    Shares used in computing earnings per common share:    
            
    Basic 29,096,224   29,328,218   29,105,081   29,348,700 
            
    Diluted 29,435,895   29,610,946   29,508,906   29,708,025 
            


     
    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP FINANCIAL MEASURES
    (Dollars in thousands)
    Unaudited
            
    CONTRACT REVENUES, NON-GAAP ORGANIC CONTRACT REVENUES, AND GROWTH %
            
     Quarter Quarter Six Months Six Months
     Ended Ended Ended Ended
     July 27, 2024 July 29, 2023 July 27, 2024 July 29, 2023
    Contract Revenues - GAAP$1,203,059  $1,041,535  $2,345,482  $2,087,009 
    Contract Revenues - GAAP Growth % 15.5%    12.4%  
            
    Contract Revenues - GAAP$1,203,059  $1,041,535  $2,345,482  $2,087,009 
    Revenues from acquired businesses4 (65,913)  —   (137,150)  — 
    Non-GAAP Organic Contract Revenues$1,137,146  $1,041,535  $2,208,332  $2,087,009 
    Non-GAAP Organic Contract Revenues Growth % 9.2%    5.8%  
            


    NET INCOME AND NON-GAAP ADJUSTED EBITDA
            
     Quarter Quarter Six Months Six Months
     Ended Ended Ended Ended
     July 27, 2024 July 29, 2023 July 27, 2024 July 29, 2023
    Reconciliation of net income to Non-GAAP Adjusted EBITDA:       
    Net income$68,400  $60,246  $130,954  $111,769 
    Interest expense, net 14,657   12,277   27,490   23,649 
    Provision for income taxes 26,419   21,509   41,309   36,085 
    Depreciation and amortization 46,572   37,993   91,777   75,265 
    Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") 156,048   132,025   291,530   246,768 
    Gain on sale of fixed assets (8,160)  (7,558)  (20,564)  (15,374)
    Stock-based compensation expense 9,482   6,323   17,305   12,942 
    Loss on debt extinguishment2 965   —   965   — 
    Non-GAAP Adjusted EBITDA$158,335  $130,790  $289,236  $244,336 
    Non-GAAP Adjusted EBITDA % of contract revenues 13.2%  12.6%  12.3%  11.7%
            


     
    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)
    (Dollars in thousands, except share amounts)
    Unaudited
            
    NET INCOME, NON-GAAP ADJUSTED NET INCOME, DILUTED EARNINGS PER COMMON SHARE, AND NON-GAAP ADJUSTED DILUTED EARNINGS PER COMMON SHARE
            
     Quarter Quarter Six Months Six Months
     Ended Ended Ended Ended
     July 27, 2024 July 29, 2023 July 27, 2024 July 29, 2023
    Reconciliation of net income to Non-GAAP Adjusted Net Income:       
    Net income$68,400  $60,246  $130,954  $111,769 
            
    Pre-Tax Adjustments:       
    Loss on debt extinguishment2 965   —   965   — 
    Stock-based compensation modification5 2,231   —   2,231   — 
            
    Tax Adjustments:       
    Tax impact of pre-tax adjustments 899   —   899   — 
    Total adjustments, net of tax 4,095   —   4,095   — 
            
    Non-GAAP Adjusted Net Income$72,495  $60,246  $135,049  $111,769 
            
    Reconciliation of diluted earnings per common share to Non-GAAP Adjusted Diluted Earnings per Common Share:       
    GAAP diluted earnings per common share$2.32  $2.03  $4.44  $3.76 
    Total adjustments, net of tax 0.14   —   0.14   — 
    Non-GAAP Adjusted Diluted Earnings per Common Share$2.46  $2.03  $4.58  $3.76 
            
    Shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share 29,435,895   29,610,946   29,508,906   29,708,025 
            
    Amounts in table above may not add due to rounding.
     

    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.

    • Non-GAAP Adjusted Net Income - GAAP net income before certain non-recurring items and the related tax impact. Management believes Non-GAAP Adjusted Net Income is a helpful measure for comparing the Company’s operating performance with prior periods.

    • Non-GAAP Adjusted Diluted Earnings per Common Share - Non-GAAP Adjusted Net Income divided by weighted average diluted shares outstanding.

    Management excludes or adjusts each of the items identified below from Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings per Common Share:

    • Stock-based compensation modification - During the quarter ended July 27, 2024, the Company announced its CEO succession plan and transition. In connection with this transition, the Company incurred stock-based compensation modification expense. The Company excludes the impact of the modification because the Company believes it is not indicative of its underlying results or ongoing operations.

    • Loss on debt extinguishment - Loss on debt extinguishment includes the write-off of deferred financing fees in connection with the amendment of the Company’s credit agreement during the quarter ended July 27, 2024. Management believes excluding the loss on debt extinguishment from the Company’s Non-GAAP financial measures assists investors’ overall understanding of the Company’s current financial performance and provides management with a consistent measure for assessing the current and historical financial results.

    • Tax impact of pre-tax adjustments - The tax impact of pre-tax adjustments reflects the Company’s estimated tax impact of specific adjustments and the effective tax rate used for financial planning for the applicable period.

    Notes

     

    1 Includes stock-based compensation expense of $9.5 million and $6.3 million for the quarters ended July 27, 2024 and July 29, 2023, respectively, and $17.3 million and $12.9 million for the six months ended July 27, 2024 and July 29, 2023, respectively.

    2 During quarter ended July 27, 2024, the Company recognized a loss on debt extinguishment of approximately $1.0 million in connection with the amendment of its credit agreement.

    3 Provision for income taxes includes benefits resulting from the vesting and exercise of share-based awards of approximately $0.1 million for each of the quarters ended July 27, 2024 and July 29, 2023, and approximately $6.0 million and $2.8 million for the six months ended July 27, 2024 and July 29, 2023, respectively.

    4 Amounts represent contract revenues from acquired businesses that were not owned for the full period in both the current and comparable prior periods.

    5 During the quarter ended July 27, 2024, the Company announced its CEO succession plan and transition. In connection with this transition, the Company will incur approximately $11.4 million of stock-based compensation modification expense through the current CEO’s retirement date of November 30, 2024 related to previously issued equity awards. Of this total, approximately $2.2 million was recognized during the quarter ended July 27, 2024.


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