Third Quarter Highlights
- Contract revenues increased 12.0% to $1.272 billion
- Non-GAAP Adjusted EBITDA increased to $170.7 million, or 13.4% of contract revenues
- Non-GAAP Adjusted Net Income increased to $79.2 million, or $2.68 per common share diluted
Non-GAAP Adjusted EBITDA increased to $170.7 million, or 13.4% of contract revenues, for the quarter ended October 26, 2024, compared to $143.2 million, or 12.9% of contract revenues, in the year ago quarter. Non-GAAP Adjusted EBITDA for the quarter ended October 28, 2023 excludes $23.6 million, or 1.8% of contract revenues, of incremental benefit in EBITDA from the impacts of a change order and the closeout of several projects reported in the prior year quarter.
On a GAAP basis, net income was $69.8 million, or $2.37 per common share diluted, for the quarter ended October 26, 2024, compared to $83.7 million, or $2.82 per common share diluted, in the prior year quarter. Non-GAAP Adjusted Net Income increased to $79.2 million, or $2.68 per common share diluted for the quarter ended October 26, 2024, compared to $66.3 million, or $2.23 per common share diluted, in the prior year quarter. Non-GAAP Adjusted Net Income for the quarter ended October 28, 2023 excludes $17.5 million, or $0.59 per common share diluted, of after-tax benefit from the impacts of a change order and the closeout of several projects reported in the prior year quarter.
Year-to-Date Highlights
Contract revenues increased 12.2% to $3.617 billion for the nine months ended October 26, 2024, compared to $3.223 billion in the year ago period. On an organic basis, contract revenues increased 6.4% after excluding revenues from acquired businesses that were not owned for the entirety of both the current and prior year periods, revenues from storm restoration services in the current period, and revenue from a change order and project closeout in the prior year period.
Non-GAAP Adjusted EBITDA increased to $460.0 million, or 12.7% of contract revenues, for the nine months ended October 26, 2024, compared to $387.5 million, or 12.1% of contract revenues, in the year ago period. Non-GAAP Adjusted EBITDA for the nine months ended October 28, 2023 excludes $23.6 million, or 0.7% of contract revenues, of incremental benefit in EBITDA from the impacts of a change order and the closeout of several projects reported in the prior year period.
On a GAAP basis, net income increased to $200.7 million, or $6.81 per common share diluted, for the nine months ended October 26, 2024, compared to $195.5 million, or $6.58 per common share diluted, in the year ago period. Non-GAAP Adjusted Net Income increased to $214.2 million, or $7.26 per common share diluted for the nine months ended October 26, 2024, compared to $178.0 million, or $5.99 per common share diluted, in the year ago period. Non-GAAP Adjusted Net Income for the nine months ended October 28, 2023 excludes $17.5 million, or $0.59 per common share diluted, of after-tax benefit from the impacts of a change order and the closeout of several projects reported in the prior year period.
During the nine months ended October 26, 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 January 25, 2025, the Company expects total contract revenues to increase mid- to high single digit as a percentage of contract revenues, compared to $952.5 million for the quarter ended January 27, 2024. Included in the expectation for the quarter ending January 25, 2025 is approximately $35 million of revenues from acquired businesses not owned for the entirety of both the current and prior year quarters. For comparison purposes, there were no acquired revenues from these businesses in the quarter ended January 27, 2024. Non-GAAP Adjusted EBITDA as a percentage of contract revenues for the quarter ending January 25, 2025 is expected to increase approximately 25 basis points, compared to 9.8% in the quarter ended January 27, 2024.
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 third quarter results on Wednesday, November 20, 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/BI23ce626113c940d8b42fa7eec38956e3. 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/uah4hfjv. 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 January 25, 2025, 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 | |||||
| October 26, 2024 | January 27, 2024 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and equivalents | $ | 15,269 | $ | 101,086 | |
| Accounts receivable, net | 1,661,293 | 1,243,256 | |||
| Contract assets | 60,963 | 52,211 | |||
| Inventories | 115,973 | 108,565 | |||
| Income tax receivable | - | 2,665 | |||
| Other current assets | 43,321 | 42,253 | |||
| Total current assets | 1,896,819 | 1,550,036 | |||
| Property and equipment, net | 514,858 | 444,909 | |||
| Operating lease right-of-use assets | 107,924 | 76,348 | |||
| Goodwill and other intangible assets, net | 560,043 | 420,945 | |||
| Other assets | 35,051 | 24,647 | |||
| Total assets | $ | 3,114,695 | $ | 2,516,885 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 241,007 | $ | 222,121 | |
| Current portion of debt | 5,000 | 17,500 | |||
| Contract liabilities | 58,885 | 39,122 | |||
| Accrued insurance claims | 49,614 | 44,466 | |||
| Operating lease liabilities | 34,752 | 32,015 | |||
| Income taxes payable | 23,557 | 3,861 | |||
| Other accrued liabilities | 195,660 | 147,219 | |||
| Total current liabilities | 608,475 | 506,304 | |||
| Long-term debt | 1,092,789 | 791,415 | |||
| Accrued insurance claims - non-current | 51,227 | 49,447 | |||
| Operating lease liabilities - non-current | 72,946 | 44,110 | |||
| Deferred tax liabilities, net - non-current | 31,682 | 49,562 | |||
| Other liabilities | 23,898 | 21,391 | |||
| Total liabilities | 1,881,017 | 1,462,229 | |||
| Total stockholders' equity | 1,233,678 | 1,054,656 | |||
| Total liabilities and stockholders' equity | $ | 3,114,695 | $ | 2,516,885 | |
| DYCOM INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Dollars in thousands, except share amounts) | |||||||||||||||
| Unaudited | |||||||||||||||
| Quarter | Quarter | Nine Months | Nine Months | ||||||||||||
| Ended | Ended | Ended | Ended | ||||||||||||
| October 26, 2024 | October 28, 2023 | October 26, 2024 | October 28, 2023 | ||||||||||||
| Contract revenues | $ | 1,272,007 | $ | 1,136,110 | $ | 3,617,489 | $ | 3,223,119 | |||||||
| Costs of earned revenues, excluding depreciation and amortization | 1,007,412 | 886,662 | 2,881,930 | 2,570,437 | |||||||||||
| General and administrative1 | 110,777 | 87,511 | 304,915 | 254,699 | |||||||||||
| Depreciation and amortization | 52,001 | 42,522 | 143,778 | 117,786 | |||||||||||
| Total | 1,170,190 | 1,016,695 | 3,330,623 | 2,942,922 | |||||||||||
| Interest expense, net | (17,451 | ) | (13,952 | ) | (44,941 | ) | (37,601 | ) | |||||||
| Loss on debt extinguishment2 | - | - | (965 | ) | - | ||||||||||
| Other income, net | 6,926 | 6,906 | 22,595 | 17,628 | |||||||||||
| Income before income taxes | 91,292 | 112,369 | 263,555 | 260,224 | |||||||||||
| Provision for income taxes3 | 21,503 | 28,633 | 62,812 | 64,719 | |||||||||||
| Net income | $ | 69,789 | $ | 83,736 | $ | 200,743 | $ | 195,505 | |||||||
| Earnings per common share: | |||||||||||||||
| Basic earnings per common share | $ | 2.39 |
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