Palm Beach Gardens, Florida, August 25, 2003--Dycom Industries, Inc. (NYSE Symbol: "DY") announced its results today for the fourth quarter ended July 26, 2003. The Company reported net income for the quarter ended July 26, 2003 of $11.4 million, or $0.24 per common share diluted, on total contract revenues of $182.9 million versus contract revenues of $148.2 million for the quarter ended July 27, 2002. This represents a year over year increase of 23.4% in total contract revenues. On a generally accepted accounting principles (GAAP) basis, Dycom's reported net loss for the quarter ended July 27, 2002 was $56.8 million, or a loss of $1.19 per common share diluted. Included in this loss was an after tax increase in our allowance for doubtful accounts of $12.1 million and an after tax impairment charge of $47.8 million related to the write-down of goodwill and other intangible assets. These charges resulted from customer difficulties and bankruptcies. The total effect of these charges was an after tax charge of $59.9 million, or $1.25 per common share diluted. Excluding these charges, net income for the quarter ended July 27, 2002 would have been $3.0 million, or $0.06 per common share diluted.
For the year ended July 26, 2003 net income was $17.1 million, or $0.36 per common share diluted. On a generally accepted accounting principles (GAAP) basis, Dycom's reported net loss for the year ended July 27, 2002 was $123.0 million, or a loss of $2.73 per common share. Included in this loss was an after tax increase in our allowance for doubtful accounts of $12.1 million and an after tax impairment charge of $47.8 million related to the write-down of goodwill and other intangible assets. Each of these charges resulted from customer difficulties and bankruptcies. This loss also included an after tax charge of $86.9 million, or $1.93 per common share diluted, for the cumulative effect of the adoption of the accounting standard for goodwill. The total after tax effect of these charges was $146.8 million, or $3.26 per common share diluted. Excluding these charges, net income for the year ended July 27, 2002 would have been $23.8 million, or $0.53 per common share diluted.
In evaluating the operating performance of its business for the three and twelve month periods ended July 27, 2002, Dycom's management excluded certain charges that are required by GAAP. The Company believes that presentation of net income and earnings per share excluding these items is beneficial to investors. Please see attached table for reconciliation of these financial measures to GAAP.
Dycom also announced its outlook for the remainder of the first and second quarter of fiscal 2004. The Company currently expects revenue for the first quarter of fiscal 2004 to range from $165.0 million to $185.0 million and diluted earnings per share to range from $0.22 to $0.27. For the second quarter of fiscal 2004, the Company currently expects revenue to range from $135.0 million to $150.0 million and diluted earnings per share to range from $0.12 to $0.16.
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 26, 2003; Call 800-450-0788 (United States) or 612-332-0228 (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 25, 2003.
Dycom is a leading provider of engineering, construction, and maintenance services to telecommunication providers throughout the United States. Additionally, the Company provides similar services related to the installation of integrated voice, data, and video local and wide area networks within office buildings and similar structures. Dycom also provides underground utility locating and mapping and electric utility construction services.
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, continued deterioration in our customers' financial condition, the adequacy of our reserves and allowances for doubtful accounts, whether the carrying value of our assets may be impaired, the anticipated outcome of 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 undertakes no obligation to update the information in this press release.
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