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 RelationsEmail: (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
