Palm Beach Gardens, Florida, August 29, 2005--Dycom Industries, Inc. (NYSE Symbol: "DY") announced its results today for the fourth quarter ended July 30, 2005. The Company reported a net loss for the quarter ended July 30, 2005 of $12.4 million, or a loss of $0.25 per common share diluted, versus net income for the quarter ended July 31, 2004 of $17.1 million, or $0.35 per common share diluted. Included in net loss for the quarter ended July 30, 2005 was a goodwill impairment charge of approximately $29.0 million (or $0.59 per diluted share) related to the Company’s White Mountain Cable Construction subsidiary. Excluding this item, net income for the quarter ended July 30, 2005 would have been $16.6 million, or $0.34 per common share diluted. Total contract revenues for the quarter ended July 30, 2005 were $251.3 million compared to total contract revenues of $260.8 million for the quarter ended July 31, 2004, a decrease of 3.6%.
For the year ended July 30, 2005, the Company reported net income of $24.3 million, or $0.49 per common share diluted, versus net income for the year ended July 31, 2004 of $58.6 million, or $1.20 per common share diluted. Total contract revenues for the year ended July 30, 2005 were $986.6 million compared to total contract revenues of $872.7 million for the year ended July 31, 2004, an increase of 13.1%. Included in the net income for the year ended July 30, 2005 was a goodwill impairment charge of approximately $29.0 million (or $0.59 per diluted share) related to the Company’s White Mountain Cable Construction subsidiary. Excluding this item, net income for the year ended July 30, 2005 would have been $53.3 million, or $1.08 per common share diluted. Included in the net income for the year ended July 31, 2004 was a nonrecurring gain of $11.4 million ($6.8 million net of tax) related to the sale of long-term accounts receivable, and a charge of $2.3 million ($1.4 million net of tax) related to a reserve recorded in connection with a federal employment tax audit. Excluding these items, net income for the year ended July 31, 2004 would have been $53.2 million, or $1.09 per common share diluted.
In comparing the financial results for the three-month and one-year periods ended July 30, 2005 with prior periods, it should be noted that Dycom utilizes a 52/53 week fiscal year ending on the last Saturday in July. As a result, the fourth quarter of fiscal 2005 contained 13 weeks and the year ended July 30, 2005 contained 52 weeks compared to 14 weeks for the fourth quarter of fiscal 2004 and 53 weeks for the year ended July 31, 2004.
Dycom also announced its outlook for the first quarter of fiscal 2006. The Company currently expects revenue for the first quarter of fiscal 2006 to range from $225 million to $245 million and diluted earnings per share to range from $0.17 to $0.23.
A Tele-Conference call to review the Company's results and address its outlook will be hosted at 9:00 a.m. (ET), Tuesday, August 30, 2005; call 877-531-2988 (United States) or 612-332-0720 (International) and request "Dycom Earnings" 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
http://www.dycomind.com until Thursday, September 29, 2005.
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 locating services to various utilities, including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2005 results are preliminary and quarterly information is 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 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 recent acquisitions 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. We do not undertake to update forward looking statements.
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