Dycom Announces Fiscal 2008 Second Quarter Results and Provides Guidance for the Third Quarter of Fiscal 2008

PALM BEACH GARDENS, Fla., Feb. 26 /PRNewswire-FirstCall/ -- Dycom Industries, Inc. (NYSE:DY) announced today its results for the second quarter ended January 26, 2008. The Company reported a loss from continuing operations for the quarter ended January 26, 2008 of ($3.1) million, or ($0.08) per common share diluted, versus income from continuing operations for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted. Net loss, including the results of discontinued operations, for the quarter ended January 26, 2008 was ($3.2) million, or ($0.08) per common share diluted, compared to net income of $5.6 million, or $0.14 per common share diluted, for the quarter ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company's subsidiaries, earnings from continuing operations for the quarter ended January 26, 2008 were $1.5 million, or $0.04 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 26, 2008 were $284.8 million compared to $258.3 million for the quarter ended January 27, 2007, an increase of 10.2%. Stock based compensation expense for the quarter ended January 26, 2008 and quarter ended January 27, 2007 was $1.0 million and $1.6 million, respectively, on a pre-tax basis.

For the six months ended January 26, 2008 income from continuing operations was $12.1 million, or $0.30 per common share diluted, versus income from continuing operations for the six months ended January 27, 2007 of $15.2 million, or $0.37 per common share diluted. Net income, including the results of discontinued operations, for the six months ended January 26, 2008 was $11.7 million or $0.28 per common share diluted, compared to net income of $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007. On a non-GAAP basis, excluding the impact of the pending settlement of the previously announced wage and hour class action with respect to three of the Company's subsidiaries, income from continuing operations for the six months ended January 26, 2008 was $16.7 million, or $0.41 per common share on a fully diluted basis. Total contract revenues from continuing operations for the six months ended January 26, 2008 were $614.4 million compared to $528.8 million for the six months ended January 27, 2007, an increase of 16.2%. Stock based compensation expense for the six months ended January 26, 2008 and the six months ended January 27, 2007 was $3.2 million and $3.3 million, respectively, on a pre-tax basis.

Dycom also announced its outlook for the third quarter of fiscal 2008. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2008 to range from $270 million to $295 million and diluted earnings per share from continuing operations to range from $0.08 to $0.13, including stock based compensation expense of approximately $1.2 million on a pre-tax basis. Management believes that discontinued operations will not have a material impact on the quarter.

A Tele-Conference call to review the Company's results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, February 27, 2008; Call 800-230-1059 (United States) or 612-332-0923 (International) and request "Dycom Results" conference call. A live webcast of the conference call will be available at http://www.dycomind.com/. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast will also be available at
Dycom is a leading provider of specialty contracting services throughout the United States. 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 utilities and others.

Fiscal 2008 second quarter and six-month results are preliminary and are unaudited. This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. Such statements include, but are not limited to, the Company's expectations for revenues, stock-based compensation expense and earnings per share. 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 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, whether our recent acquisition can be efficiently integrated into our existing operations, the impact of any future acquisitions, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks detailed in our filings with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements.

NYSE: "DY"

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
January 26, 2008 and July 28, 2007
Unaudited

January 26, July 28,
2008 2007
----------- ----------- ($ in 000's)
ASSETS
Current Assets:
Cash and equivalents $27,259 $18,862
Accounts receivable, net 128,770 146,864
Costs and estimated earnings in excess of
billings 79,092 95,392
Deferred tax assets, net 19,448 15,478
Income taxes receivable 9,170 - Inventories 9,538 8,268
Other current assets 12,416 7,266
Current assets of discontinued operations 255 307
----------- ----------- Total current assets 285,948 292,437

Property and equipment, net 174,251 164,544
Intangible assets, net 317,012 320,952
Other 11,207 11,831
----------- ----------- Total $788,418 $789,764

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $25,674 $30,375
Current portion of debt 2,883 3,301
Billings in excess of costs and estimated
earnings 1,067 712
Accrued self-insured claims 29,774 26,902
Income taxes payable - 1,947
Other accrued liabilities 60,042 63,076
Current liabilities of discontinued operations 1,126 939
----------- ----------- Total current liabilities 120,566 127,252

Long-term debt 152,119 163,509
Accrued self-insured claims 35,624 33,085
Deferred tax liabilities, net non-current 16,767 19,316
Other liabilities 8,178 1,322
Non-current liabilities of discontinued
operations 565 649

Stockholders' Equity 454,599 444,631
----------- ----------- Total $788,418 $789,764

NYSE: "DY"

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited

Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
January 26, January 27, January 26, January 27,
2008 2007 2008 2007
----------- ----------- ----------- ----------- (In 000's, except per share amounts)

Contract revenues $284,758 $258,293 $614,430 $528,846
----------- ----------- ----------- ----------- Cost of earned revenues,
excluding depreciation
and amortization 247,906 210,771 509,218 428,536
General and administrative
expenses (1) 22,315 21,395 47,923 43,074
Depreciation and
amortization 16,910 14,142 32,957 26,637
----------- ----------- ----------- -----------
Total 287,131 246,308 590,098 498,247
----------- ----------- ----------- -----------
Interest income 171 234 381 627
Interest expense (3,566) (3,953) (7,122) (7,710)
Other income, net 798 1,129 2,370 1,624
----------- ----------- ----------- -----------
Income (loss) from continuing
operations before income
taxes (4,970) 9,395 19,961 25,140

Provision (benefit) for income
taxes (1,837) 3,747 7,837 9,966
----------- ----------- ----------- -----------
Income (loss) from continuing
operations (3,133) 5,648 12,124 15,174

Loss from discontinued
operations, net of tax (2) (93) (63) (422) (29)
----------- ----------- ----------- ----------- Net income (loss) $(3,226) $5,585 $ 11,702 $15,145

Earnings (loss) per common
share - Basic:

Income (loss) from continuing
operations $(0.08) $0.14 $0.30 $0.38
Loss from discontinued
operations - - (0.01) - ----------- ----------- ----------- ----------- Net income (loss) $(0.08) $0.14 $0.29 $0.38

Earnings (loss) per common
share - Diluted:

Income (loss) from
continuing operations $(0.08) $0.14 $0.30 $0.37
Loss from discontinued
operations - - (0.01) - ----------- ----------- ----------- ----------- Net income (loss) $(0.08) $0.14 $0.28 $0.37

Shares used in computing
earnings (loss) per
common share:
Basic 40,799,664 40,295,932 40,759,267 40,253,498

Diluted 40,799,664 40,599,162 41,073,223 40,553,092

Earnings per share amounts may not add due to rounding.

(1) Includes stock-based compensation expense of $1.0 million and $3.2
million for the three and six months ended January 26, 2008,
respectively, and $1.6 million and $3.3 million for the three and six
months ended January 27, 2007, respectively.

(2) The Company discontinued the operations of one of its subsidiaries in
fiscal 2007 and has reported those results separately as discontinued
operations in the financial statements for all periods presented.

NYSE: "DY"

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited

Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
January 26, January 27, January 26, January 27,
2008 2007 2008 2007
----------- ----------- ----------- ----------- (In 000's, except per share amounts)

Item:
Charge for wage and
hour litigation $(7,591) $ - $(7,591) $ -

GAAP income (loss) from
continuing operations $(3,133) $5,648 $12,124 $15,174
Adjustment for item above,
net of tax 4,597 - 4,597 - ----------- ----------- ----------- ----------- Non-GAAP income from
continuing operations $1,464 $5,648 $16,721 $15,174

Earnings (loss) per common
share from continuing
operations:

Basic earnings (loss) per
share from continuing
operations - GAAP $(0.08) $0.14 $0.30 $0.38
Adjustment for item above 0.11 - 0.11 - ----------- ----------- ----------- ----------- Basic earnings per share
from continuing operations
- Non-GAAP (1) $0.04 $0.14 $0.41 $0.38

Diluted earnings (loss) per
share from continuing
operations- GAAP $(0.08) $0.14 $0.30 $0.37
Adjustment for item above 0.11 - 0.11 - ----------- ----------- ----------- ----------- Diluted earnings per share
from continuing operations
- Non-GAAP (1) $0.04 $0.14 $0.41 $0.37

Shares used in computing GAAP
earnings (loss) per common
share from continuing
operations and adjustment
for item above:

Basic 40,799,664 40,295,932 40,759,267 40,253,498

Diluted 40,799,664 40,599,162 41,073,223 40,553,092

Shares used in computing
Non-GAAP earnings per
common share from
continuing operations:

Basic 40,799,664 40,295,932 40,759,267 40,253,498

Diluted 41,106,655 40,599,162 41,127,577 40,553,092

(1) Amounts may not add due to rounding.

First Call Analyst:
FCMN Contact: jeng@dycominc.com

Source: Dycom Industries, Inc.

CONTACT: Steven E. Nielsen, President and CEO, or Richard L. Dunn, Senior
Vice President and CFO, both of Dycom Industries, Inc., +1-561-627-7171

Web site: http://www.dycomind.com/

2008-02-26 17:44:54 0298913 PRNEWSWIRE