0000067215false00000672152024-05-222024-05-22
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 22, 2024
(Exact name of Registrant as specified in its charter)
| | | | | | | | | | | | | | | | | | | | |
Florida | | 001-10613 | | 59-1277135 |
(State or other jurisdiction of incorporation) | | (Commission file number) | | (I.R.S. employer identification no.) |
| | | | | | |
| | 11780 U.S. Highway One, Suite 600 | | |
| | Palm Beach Gardens, | FL | 33408 | | |
| | (Address of principal executive offices) (Zip Code) | | |
Registrant’s telephone number, including area code: (561) 627-7171
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of Each Class | | Trading Symbol(s) | | Name of Each Exchange on Which Registered |
Common stock, par value $0.33 1/3 per share | | DY | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On May 22, 2024, Dycom Industries, Inc. (the “Company”) issued a press release reporting fiscal 2025 first quarter results. The Company also provided forward guidance. Additionally, on May 22, 2024, the Company made available related materials to be discussed during the Company’s webcast and conference call referred to in such press release. A copy of the press release and related conference call materials are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are incorporated into Item 2.02 of this Current Report on Form 8-K by reference.
The information in the preceding paragraphs, as well as Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference into another filing under the Exchange Act or the Securities Act of 1933 (the “Securities Act”) if such subsequent filing specifically references this Current Report on Form 8-K.
Forward Looking Statements
This Current Report on Form 8-K, including the press release and related slide presentation and Non-GAAP reconciliations that are furnished as exhibits to this Current Report on Form 8-K, contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements are subject to change. Forward-looking statements are based on management’s current expectations, estimates and projections. These statements are subject to risks and uncertainties that may cause actual results for completed periods and periods in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. The most significant of these 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. These filings are available on a web site maintained by the Securities and Exchange Commission at http://www.sec.gov. The Company does not undertake any obligation to update forward-looking statements.
Item 9.01 Financial Statement and Exhibits.
(d)Exhibits
| | | | | |
| |
| |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: May 22, 2024
| | | | | |
DYCOM INDUSTRIES, INC. (Registrant) |
By: | /s/ Ryan F. Urness |
Name: | Ryan F. Urness |
Title: | Vice President, General Counsel and Corporate Secretary |
DYCOM INDUSTRIES, INC. ANNOUNCES FISCAL 2025 FIRST QUARTER RESULTS
First Quarter Highlights
•Contract revenues of $1.142 billion, an increase of 9.3%
•Non-GAAP Adjusted EBITDA of $130.9 million, or 11.5% of contract revenues
•Net Income of $62.6 million, or $2.12 per common share diluted
•Repurchased 210,000 common shares for $29.8 million during the quarter
Palm Beach Gardens, Florida, May 22, 2024 - Dycom Industries, Inc. (NYSE: DY) announced today its results for the first quarter ended April 27, 2024. Contract revenues increased 9.3% to $1.142 billion for the quarter ended April 27, 2024, compared to $1.045 billion in the year ago quarter. Contract revenues increased 2.5% on an organic basis after excluding $71.2 million of contract revenues from acquired businesses that were not owned during the year ago quarter.
Non-GAAP Adjusted EBITDA increased to $130.9 million, or 11.5% of contract revenues, for the quarter ended April 27, 2024, compared to $113.5 million, or 10.9% of contract revenues, in the year ago quarter. Net income increased to $62.6 million, or $2.12 per common share diluted, for the quarter ended April 27, 2024, compared to $51.5 million, or $1.73 per common share diluted, in the year ago quarter. Results for the quarter ended April 27, 2024 include income tax benefits resulting from the vesting and exercise of share-based awards of $5.9 million, or $0.20 per common share diluted, compared to $2.7 million, or $0.09 per common share diluted, in the year ago quarter.
During the quarter ended April 27, 2024, the Company repurchased 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 July 27, 2024, the Company expects organic contract revenues to grow by high-single digits as a percentage of contract revenues compared to the quarter ended July 29, 2023. In addition, the Company expects approximately $70 million of acquired contract revenues for the quarter ending July 27, 2024. Non-GAAP Adjusted EBITDA as a percentage of contract revenues for the quarter ending July 27, 2024 is expected to increase 25 to 75 basis points compared to the quarter ended July 29, 2023. 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 first quarter results on Wednesday, May 22, 2024 at 9:00 a.m. Eastern time. Interested parties may participate in the question and answer session of the conference call by registering at https://register.vevent.com/register/BI1c2e72a7bcd9487582598a90de01968e. 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/pyhc9s3t. 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 July 27, 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 |
| | | |
| April 27, 2024 | | January 27, 2024 |
ASSETS | | | |
Current assets: | | | |
Cash and equivalents | $ | 26,139 | | | $ | 101,086 | |
Accounts receivable, net | 1,372,804 | | | 1,243,256 | |
Contract assets | 68,460 | | | 52,211 | |
Inventories | 103,952 | | | 108,565 | |
Income tax receivable | — | | | 2,665 | |
Other current assets | 55,466 | | | 42,253 | |
Total current assets | 1,626,821 | | | 1,550,036 | |
| | | |
Property and equipment, net | 458,197 | | | 444,909 | |
Operating lease right-of-use assets | 80,477 | | | 76,348 | |
Goodwill and other intangible assets, net | 423,773 | | | 420,945 | |
Other assets | 22,340 | | | 24,647 | |
Total assets | $ | 2,611,608 | | | $ | 2,516,885 | |
| | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | |
Current liabilities: | | | |
Accounts payable | $ | 212,887 | | | $ | 222,121 | |
Current portion of debt | 17,500 | | | 17,500 | |
Contract liabilities | 57,466 | | | 39,122 | |
Accrued insurance claims | 51,608 | | | 44,466 | |
Operating lease liabilities | 32,855 | | | 32,015 | |
Income taxes payable | 11,378 | | | 3,861 | |
Other accrued liabilities | 129,860 | | | 147,219 | |
Total current liabilities | 513,554 | | | 506,304 | |
| | | |
Long-term debt | 842,422 | | | 791,415 | |
Accrued insurance claims - non-current | 54,389 | | | 49,447 | |
Operating lease liabilities - non-current | 47,119 | | | 44,110 | |
Deferred tax liabilities, net - non-current | 51,715 | | | 49,562 | |
Other liabilities | 21,777 | | | 21,391 | |
Total liabilities | 1,530,976 | | | 1,462,229 | |
| | | |
Total stockholders’ equity | 1,080,632 | | | 1,054,656 | |
Total liabilities and stockholders’ equity | $ | 2,611,608 | | | $ | 2,516,885 | |
| | | |
| | | | | | | | | | | | | | | |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(Dollars in thousands, except share amounts) |
Unaudited |
| | | | | | | |
| Quarter | | Quarter | | | | |
| Ended | | Ended | | | | |
| April 27, 2024 | | April 29, 2023 | | | | |
Contract revenues | $ | 1,142,423 | | | $ | 1,045,474 | | | | | |
| | | | | | | |
Costs of earned revenues, excluding depreciation and amortization | 921,636 | | | 853,366 | | | | | |
General and administrative1 | 94,555 | | | 82,357 | | | | | |
Depreciation and amortization | 45,205 | | | 37,271 | | | | | |
Total | 1,061,396 | | | 972,994 | | | | | |
| | | | | | | |
Interest expense, net | (12,834) | | | (11,372) | | | | | |
| | | | | | | |
Other income, net | 9,251 | | | 4,991 | | | | | |
Income before income taxes | 77,444 | | | 66,099 | | | | | |
| | | | | | | |
Provision for income taxes2 | 14,890 | | | 14,576 | | | | | |
| | | | | | | |
Net income | $ | 62,554 | | | $ | 51,523 | | | | | |
| | | | | | | |
Earnings per common share: | | | | | | | |
| | | | | | | |
Basic earnings per common share | $ | 2.15 | | | $ | 1.75 | | | | | |
| | | | | | | |
Diluted earnings per common share | $ | 2.12 | | | $ | 1.73 | | | | | |
| | | | | | | |
Shares used in computing earnings per common share: | | | | |
| | | | | | | |
Basic | 29,113,943 | | | 29,369,185 | | | | | |
| | | | | | | |
Diluted | 29,551,709 | | | 29,782,251 | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | |
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 | | | | |
| Ended | | Ended | | | | |
| April 27, 2024 | | April 29, 2023 | | | | |
Contract Revenues - GAAP | $ | 1,142,423 | | $ | 1,045,474 | | | | | |
Contract Revenues - GAAP Growth % | 9.3 | % | | | | | | |
| | | | | | | |
Contract Revenues - GAAP | $ | 1,142,423 | | $ | 1,045,474 | | | | | |
Revenues from acquired businesses3 | (71,237) | | — | | | | | |
Non-GAAP Organic Contract Revenues | $ | 1,071,186 | | $ | 1,045,474 | | | | | |
Non-GAAP Organic Contract Revenues Growth % | 2.5 | % | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | |
NET INCOME AND NON-GAAP ADJUSTED EBITDA |
| | | | | | | |
| Quarter | | Quarter | | | | |
| Ended | | Ended | | | | |
| April 27, 2024 | | April 29, 2023 | | | | |
Reconciliation of net income to Non-GAAP Adjusted EBITDA: | | | | | | | |
Net income | $ | 62,554 | | | $ | 51,523 | | | | | |
Interest expense, net | 12,834 | | | 11,372 | | | | | |
Provision for income taxes | 14,890 | | | 14,576 | | | | | |
Depreciation and amortization | 45,205 | | | 37,271 | | | | | |
Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") | 135,483 | | | 114,742 | | | | | |
Gain on sale of fixed assets | (12,404) | | | (7,816) | | | | | |
Stock-based compensation expense | 7,823 | | | 6,620 | | | | | |
Non-GAAP Adjusted EBITDA | $ | 130,902 | | | $ | 113,546 | | | | | |
Non-GAAP Adjusted EBITDA % of contract revenues | 11.5 | % | | 10.9 | % | | | | |
| | | | | | | |
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.
Notes
1 Includes stock-based compensation expense of $7.8 million and $6.6 million for the quarters ended April 27, 2024 and April 29, 2023, respectively.
2 Net income for the quarters ended April 27, 2024 and April 29, 2023 includes income tax benefits of $5.9 million and $2.7 million, respectively, resulting from the vesting and exercise of share-based awards.
3 Amounts represent contract revenues from acquired businesses that were not owned for the full period in both the current and comparable prior periods.
st May 22, 2024
2 Participants Agenda Q1 2025 Overview Industry Update Financial and Operational Highlights Outlook Closing Remarks Q&A Steven E. Nielsen President and Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Ryan F. Urness General Counsel
Important Information 3 Caution Concerning Forward-Looking Statements This presentation 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 July 27, 2024, including, but not limited to, those statements found under the “Outlook” section of this presentation. 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 presentation. 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 financial 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. Non-GAAP Financial Measures This presentation includes certain “Non-GAAP” financial measures as defined by Regulation G of the SEC. As required by the SEC, an explanation of the Non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP financial measures are provided in slides 14 through 19 of this presentation. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results.
Q1 2025 Overview 4 Financial Snapshot Q1-25 Q1-24 Y/Y Contract Revenues $1,142 $1,045 9.3% Organic Revenue Growth1 2.5% Adjusted EBITDA $130.9 $113.5 15.3% Adjusted EBITDA % 11.5% 10.9% Diluted EPS* $2.12 $1.73 22.5% Operating Performance • Revenue growth and margin expansion Liquidity • Solid liquidity of $573.6 million • In May 2024, amended Senior Credit Facility to expand capacity and extend maturity to January 2029 Capital Allocation • In May 2024, acquired a telecommunications construction contractor that expands our geographic footprint to Alaska • Repurchased 210,000 common shares for $29.8 million $ Millions, Except EPS *Diluted earnings per common share included incremental tax benefits resulting from the vesting and exercise of share-based awards of $0.20 per common share in Q1-25, compared to $0.09 in Q1-24
Industry Update 5 The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry • Major industry participants are constructing or upgrading significant wireline networks across broad sections of the country • High-capacity fiber networks are increasingly viewed as the most cost-effective technology, enabling multiple revenue streams from a single investment • We are encouraged that a number of our customers are pursuing strategic transactions aimed largely in part to increase access to capital and expand fiber deployment programs • Fiber network deployment opportunities are increasing in rural America; federal and state support programs for the construction of communications networks in unserved and underserved areas across the country are unprecedented and meaningfully increase the rural market that we expect will ultimately be addressed Macro-economic conditions appear stable The market for labor has improved in many regions and automotive and equipment supply chains are also improving For several customers, we expect the pace of deployments to increase this year, including two significant customers whose capital expenditures were more heavily weighted toward the first half of calendar 2023 Our scale and financial strength position us well to take advantage of these opportunities to deliver valuable services to our customers, including integrated planning, engineering and design, procurement and construction and maintenance services
Contract Revenues 6 Top 5 Customers2 - Percentage of Total Contract Revenues Non-GAAP Organic Growth (Decline)%1 Q1 2025 Organic Growth: Total Customers Top 5 Customers2 All Other Customers3 2.5% 0.1% 5.7% Lumen Charter 15.0% 121.8% Top 5 customer concentration reduced to 56.4% in Q1 2025 compared to 65.5% in Q1 2024 Fiber construction revenue from electric utilities was $96.0 million in Q1 2025 $ Millions
Backlog, Awards and Employee Headcount 7 Customer Description of Services Area Term (in years) Frontier Construction and Maintenance IL 2 Comcast Construction WA 1 Various Rural Fiber Deployments WA, AZ, TN, GA 1-2 Various Utility Line Locating CA, VA, GA 3 Selected Q1 2025 Awards and Extensions: Backlog4 $ Billions Employee Headcount
Financial Highlights 8 • Contract revenues of $1.142 billion increased 9.3% year-over-year • Organic contract revenues increased 2.5% year-over-year after excluding $71.2 million of contract revenues from acquired businesses • Non-GAAP Adjusted EBITDA increased to $130.9 million, or 11.5% of contract revenues • Earnings increased to $2.12 per common share diluted and included incremental tax benefits of $0.20 per share 10.9% 11.5% Non-GAAP Adjusted EBITDA % of Contract Revenues Contract Revenues Non-GAAP Adjusted EBITDA Diluted EPS
Debt and Liquidity Overview 9 • Solid liquidity of $573.6 million at Q1 2025 • Capital allocation prioritizes organic growth, followed by M&A and opportunistic share repurchases, within the context of the Company’s historical range of net leverage Debt Summary Q4 2024 Q1 2025 $ Millions 4.50% Senior Notes, mature April 2029 $ 500.0 $ 500.0 Senior Credit Facility, matures April 2026:5 Term Loan Facility 315.0 310.6 Revolving Facility - 55.0 Total Notional Amount of Debt $ 815.0 $ 865.6 Less: Cash and Equivalents 101.1 26.1 Notional Net Debt 713.9 839.5 Liquidity6 $ 703.6 $ 573.6 Proforma liquidity is $707 million as of Q1 2025 with the expansion of the capacity of Senior Credit Facility in May 2024 Debt maturity profile and liquidity provide financial flexibility
Cash Flow Overview 10 • Operating cash flow used to support sequential growth • Days Sales Outstanding (“DSO”)7 were 110 days, a reduction of 10 days sequentially • Capital expenditures, net of $29.3 million for Q1 2025 • In February 2024, acquired a telecommunications construction contractor based in the Midwest US • In May 2024, acquired a telecommunications construction contractor that expands our geographic footprint to Alaska • Repurchased 210,000 common shares for $29.8 million during Q1 2025 Cash Flow Summary Q1 2024 Q1 2025 $ Millions Operating cash flow $ (85.1) $ (37.4) Capital expenditures, net of proceeds from sale of assets $ (33.6) $ (29.3) Cash paid for acquisitions, net of cash acquired $ - $ (13.0) Borrowings (Repayments) on Senior Credit Facility $ (4.4) $ 50.6 Repurchase of common stock $ (20.3) $ (29.8) Other financing and investing activities, net $ (9.4) $ (16.2)
Outlook for Quarter Ending July 27, 2024 (Q2 2025) AMORTIZATION EXPENSE $6.0 million INTEREST EXPENSE, NET $14.9 million EFFECTIVE INCOME TAX RATE Approximately 26.5% DILUTED SHARES 29.4 million 11 CONTRACT REVENUES Organic contract revenues to grow by high-single digits as a percentage of contract revenues compared to Q2 2024 In addition, we expect approximately $70 million of acquired contract revenues in Q2 2025 NON-GAAP ADJUSTED EBITDA % OF CONTRACT REVENUES Increases 25 to 75 basis points compared to Q2 2024 Q2 2025 Outlook:
Closing Remarks 12 We maintain significant customer presence throughout our markets and are encouraged by the increasing breadth in our business Our extensive market presence has allowed us to be at the forefront of evolving industry opportunities • Telephone companies are deploying FTTH to enable gigabit high speed connections and rural electric utilities are doing the same • Dramatically increased speeds for consumers are being provisioned and consumer data usage is growing, particularly upstream • Wireless construction activity in support of newly available spectrum bands continues this year • Federal and state support for rural deployments of communications networks is dramatically increasing in scale and duration • Cable operators are increasing fiber deployments in rural America; capacity expansion projects are underway • Customers are consolidating supply chains creating opportunities for market share growth and increasing the long-term value of our maintenance and operations business We are pleased that many of our customers are committed to multi-year capital spending initiatives as our nation and industry experience stable economic conditions
Notes 1. Organic growth (decline) % from businesses that are included for the entire period in both the current and comparable prior period, adjusted for contract revenues from storm restoration services, and for the additional week of operations during the fourth quarter as a result of the Company’s 52/53 week fiscal year, when applicable. 2. Top 5 customers for Q1 2025 were AT&T, Lumen, Comcast, Charter, and Verizon. Top 5 customers for Q1 2024 were AT&T, Lumen, Comcast, Frontier, and Verizon. Top 5 Customer Organic Growth is calculated as the year-over-year organic revenue change for the current period top 5 customers. 3. Q1 2025 percentage of contract revenues for customers #6 through #10 included in All Other Customers are presented in the following table: 4. The Company’s backlog represents an estimate of services to be performed pursuant to master service agreements and other contractual agreements over the terms of those contracts. These estimates are based on contract terms and evaluations regarding the timing of the services to be provided. In the case of master service agreements, backlog is estimated based on the work performed in the preceding 12-month period, when available. When estimating backlog for newly initiated master service agreements and other long and short-term contracts, the Company also considers the anticipated scope of the contract and information received from the customer during the procurement process. A significant majority of the Company’s backlog comprises services under master service agreements and other long-term contracts. Backlog is not a measure defined by United States generally accepted accounting principles (“GAAP”) and should be considered in addition to, but not as a substitute for, information provided in accordance with GAAP. Participants in the Company’s industry also disclose a calculation of their backlog; however, the Company’s methodology for determining backlog may not be comparable to the methodologies used by others. Dycom utilizes the calculation of backlog to assist in measuring aggregate awards under existing contractual relationships with its customers. The Company believes its backlog disclosures will assist investors in better understanding this estimate of the services to be performed pursuant to awards by its customers under existing contractual relationships. 5. As of both Q4 2024 and Q1 2025, the Company had $47.5 million of standby letters of credit outstanding under the Senior Credit Facility. 6. Liquidity represents the sum of availability from the Company’s Senior Credit Facility, considering net funded debt balances, and available cash and equivalents. For calculation of availability under the Senior Credit Facility, applicable cash and equivalents are netted against the funded debt amount. 7. DSO is calculated as the summation of current and non-current accounts receivable (including unbilled receivables), net of allowance for doubtful accounts, plus current contract assets, less contract liabilities, divided by average revenue per day during the respective quarter. Long-term contract assets are excluded from the calculation of DSO, as these amounts represent payments made to customers pursuant to long-term agreements and are recognized as a reduction of contract revenues over the period for which the related services are provided to the customers. 13 Customer #6 Brightspeed Frontier Windstream Ubiquity 6.8% 5.4% 5.1% 2.4% 1.7%
Non-GAAP Reconciliations Q1 2025 14
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. • Notional Net Debt - Notional net debt is a Non-GAAP financial measure that is calculated by subtracting cash and equivalents from the aggregate face amount of outstanding debt. Management believes notional net debt is a helpful measure to assess the Company’s liquidity. 15
Unaudited $ Millions Contract Revenues - GAAP Revenues from Acquired Businesses1 Non-GAAP - Organic Revenues Growth (Decline) % Quarter Ended GAAP - % Non-GAAP - Organic % April 27, 2024 Q1 2025 $ 1,142.4 $ (71.2) $ 1,071.2 9.3% 2.5% April 29, 2023 Q1 2024 $ 1,045.5 $ - $ 1,045.5 January 27, 2024 Q4 2024 $ 952.5 $ (57.5) $ 895.0 3.8% (2.5%) January 28, 2023 Q4 2023 $ 917.5 $ - $ 917.5 October 28, 2023 Q3 2024 $ 1,136.1 $ (45.2) $ 1,090.9 9.0% 4.6% October 29, 2022 Q3 2023 $ 1,042.4 $ - $ 1,042.4 July 29, 2023 Q2 2024 $ 1,041.5 $ - $ 1,041.5 7.1% 7.1% July 30, 2022 Q2 2023 $ 972.3 $ - $ 972.3 April 29, 2023 Q1 2024 $ 1,045.5 $ - $ 1,045.5 19.3% 19.3% April 30, 2022 Q1 2023 $ 876.3 $ - $ 876.3 January 28, 2023 Q4 2023 $ 917.5 $ - $ 917.5 20.5% 20.5% January 29, 2022 Q4 2022 $ 761.5 $ - $ 761.5 October 29, 2022 Q3 2023 $ 1,042.4 $ - $ 1,042.4 22.1% 22.1% October 30, 2021 Q3 2022 $ 854.0 $ - $ 854.0 July 30, 2022 Q2 2023 $ 972.3 $ - $ 972.3 23.5% 23.5% July 31, 2021 Q2 2022 $ 787.6 $ - $ 787.6 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures 16 Non-GAAP Organic Contract Revenues
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures (continued) 17 Non-GAAP Organic Contract Revenues – Selected Customers Unaudited $ Millions Contract Revenues – GAAP Revenues from Acquired Businesses1 Non-GAAP - Organic Revenues Growth (Decline) % Quarter Ended GAAP - % Non-GAAP - Organic % Charter Communications April 27, 2024 Q1 2025 $ 89.1 $ (40.8) $ 48.2 309.6% 121.8% April 29, 2023 Q1 2024 $ 21.7 $ - $ 21.7 Top 5 Customers2 April 27, 2024 Q1 2025 $ 644.6 $ (40.8) $ 603.7 6.9% 0.1% April 29, 2023 Q1 2024 $ 603.1 $ - $ 603.1 All Other Customers (excluding Top 5 Customers) April 27, 2024 Q1 2025 $ 497.8 $ (30.4) $ 467.4 12.5% 5.7% April 29, 2023 Q1 2024 $ 442.4 $ - $ 442.4 Note: Amounts above may not add due to rounding.
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures (continued) 18 Unaudited $ Thousands Quarter Ended Quarter Ended April 27, 2024 April 29, 2023 Net income $ 62,554 $ 51,523 Interest expense, net 12,834 11,372 Provision for income taxes 14,890 14,576 Depreciation and amortization 45,205 37,271 Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) 135,483 114,742 Gain on sale of fixed assets (12,404) (7,816) Stock-based compensation expense 7,823 6,620 Non-GAAP Adjusted EBITDA $ 130,902 $ 113,546 Non-GAAP Adjusted EBITDA % of contract revenues 11.5% 10.9% Non-GAAP Adjusted EBITDA
Notes to Reconciliation of Non-GAAP Financial Measures 19 1 Amounts represents contract revenues from acquired businesses that were not owned for the full period in both the current and comparable prior periods. 2 Top 5 customers for the quarter ended April 27, 2024 were AT&T, Lumen, Comcast, Charter, and Verizon. Top 5 customers for the quarter ended April 29, 2023 were AT&T, Lumen, Comcast, Frontier, and Verizon. Top 5 Customer Organic Growth is calculated as the year-over-year organic revenue change for the current period top 5 customers.
The People Connecting America ®
v3.24.1.1.u2
Document and Entity Information Document
|
May 22, 2024 |
Document and Entity Information [Abstract] |
|
Title of 12(b) Security |
Common stock, par value $0.33 1/3 per share
|
Entity Central Index Key |
0000067215
|
Entity Incorporation, State or Country Code |
FL
|
Entity Registrant Name |
DYCOM INDUSTRIES, INC.
|
Document Type |
8-K
|
Document Period End Date |
May 22, 2024
|
City Area Code |
561
|
Local Phone Number |
627-7171
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Entity File Number |
001-10613
|
Entity Tax Identification Number |
59-1277135
|
Entity Address, Address Line One |
11780 U.S. Highway One, Suite 600
|
Entity Address, City or Town |
Palm Beach Gardens,
|
Entity Address, State or Province |
FL
|
Entity Address, Postal Zip Code |
33408
|
Amendment Flag |
false
|
Trading Symbol |
DY
|
Security Exchange Name |
NYSE
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Dycom Industries (NYSE:DY)
Historical Stock Chart
From Nov 2024 to Dec 2024
Dycom Industries (NYSE:DY)
Historical Stock Chart
From Dec 2023 to Dec 2024