Fourth Quarter Fiscal 2021 Highlights
- Contract revenues of
$750.7 million for the quarter endedJanuary 30, 2021 , compared to$737.6 million for the quarter endedJanuary 25, 2020 . Contract revenues decreased 6.2% on an organic basis after excluding$5.7 million in contract revenues from storm restoration services and adjusting for the additional week of operations during the quarter endedJanuary 30, 2021 as a result of the Company's 52/53 week fiscal year.
- Non-GAAP Adjusted EBITDA of
$45.7 million , or 6.1% of contract revenues, for the quarter endedJanuary 30, 2021 , compared to$44.5 million , or 6.0% of contract revenues, for the quarter endedJanuary 25, 2020 .
- On a GAAP basis, net loss was
$4.2 million , or a loss of$0.13 per common share, for the quarter endedJanuary 30, 2021 , compared to net loss of$11.2 million , or a loss of$0.35 per common share, for the quarter endedJanuary 25, 2020 . Non-GAAP Adjusted Net Loss was$2.3 million , or a loss of$0.07 per common share, for the quarter endedJanuary 30, 2021 , compared to Non-GAAP Adjusted Net Loss of$7.2 million , or a loss of$0.23 per common share, for the quarter endedJanuary 25, 2020 .
- As of
January 30, 2021 , the Company had cash and equivalents of$11.8 million , borrowings on its revolving line of credit of$105.0 million ,$421.9 million of term loans outstanding and$58.3 million aggregate principal amount of 0.75% convertible senior notes dueSeptember 2021 (the "Notes") outstanding.
- During the quarter ended
January 30, 2021 , the Company repurchased 1,324,381 common shares in open market transactions for$100.0 million at an average price of$75.51 per share. As ofJanuary 30, 2021 , the Company had 30,615,167 shares outstanding, excluding the dilutive effect of stock options and unvested restricted stock.
Fiscal 2021 Highlights
- Contract revenues of
$3.199 billion for the fiscal year endedJanuary 30, 2021 , compared to$3.340 billion for the fiscal year endedJanuary 25, 2020 . Contract revenues for the fiscal year endedJanuary 30, 2021 decreased 6.1% on an organic basis after excluding contract revenues from storm restoration services and adjusting for the additional week of operations during the quarter endedJanuary 30, 2021 as a result of the Company's 52/53 week fiscal year. Contract revenues from storm restoration services were$14.6 million and$4.7 million for the fiscal years endedJanuary 30, 2021 andJanuary 25, 2020 , respectively.
- Non-GAAP Adjusted EBITDA of
$311.0 million , or 9.7% of contract revenues, for the fiscal year endedJanuary 30, 2021 , compared to$299.1 million , or 9.0% of contract revenues, for the fiscal year endedJanuary 25, 2020 . Non-GAAP Adjusted EBITDA for the fiscal year endedJanuary 25, 2020 excludes$11.0 million of income before taxes reflecting the net benefit of a contract modification.
- On a GAAP basis, net income was
$34.3 million , or$1.07 per common share diluted, for the fiscal year endedJanuary 30, 2021 , compared to$57.2 million , or$1.80 per common share diluted, for the fiscal year endedJanuary 25, 2020 . Non-GAAP Adjusted Net Income was$81.4 million , or$2.54 per common share diluted, for the fiscal year endedJanuary 30, 2021 , compared to$65.1 million , or$2.05 per common share diluted, for the fiscal year endedJanuary 25, 2020 .
Outlook
For the quarter ending
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with
Conference Call Information and Other Selected Data
The Company will host a conference call to discuss fiscal 2021 fourth quarter results on Wednesday, March 3, 2021 at 9:00 a.m. Eastern time. A live webcast of the conference call and related materials will be available on the Company's Investor Center website at https://ir.dycomind.com. Parties interested in participating via telephone should dial (833) 519-1313 (
About
Forward Looking Information
This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarter ending
---Tables Follow---
CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) Unaudited |
|||||
|
|
||||
ASSETS |
|||||
Current assets: |
|||||
Cash and equivalents |
$ |
11,770 |
$ |
54,560 |
|
Accounts receivable, net |
858,123 |
817,245 |
|||
Contract assets |
197,110 |
253,005 |
|||
Inventories |
70,849 |
98,324 |
|||
Income tax receivable |
1,706 |
3,168 |
|||
Other current assets |
29,072 |
31,991 |
|||
Total current assets |
1,168,630 |
1,258,293 |
|||
Property and equipment, net |
273,960 |
376,610 |
|||
Operating lease right-of-use assets |
63,179 |
69,596 |
|||
|
391,807 |
465,694 |
|||
Other |
46,589 |
47,438 |
|||
Total assets |
$ |
1,944,165 |
$ |
2,217,631 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Accounts payable |
$ |
158,966 |
$ |
119,612 |
|
Current portion of debt |
81,722 |
22,500 |
|||
Contract liabilities |
14,101 |
16,332 |
|||
Accrued insurance claims |
41,736 |
38,881 |
|||
Operating lease liabilities |
24,769 |
26,581 |
|||
Income taxes payable |
6,387 |
344 |
|||
Other accrued liabilities |
120,809 |
98,775 |
|||
Total current liabilities |
448,490 |
323,025 |
|||
Long-term debt |
501,562 |
844,401 |
|||
Accrued insurance claims - non-current |
70,224 |
56,026 |
|||
Operating lease liabilities - non-current |
38,359 |
43,606 |
|||
Deferred tax liabilities, net - non-current |
47,650 |
75,527 |
|||
Other liabilities |
26,572 |
6,442 |
|||
Total liabilities |
1,132,857 |
1,349,027 |
|||
Total stockholders' equity |
811,308 |
868,604 |
|||
Total liabilities and stockholders' equity |
$ |
1,944,165 |
$ |
2,217,631 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share amounts) Unaudited |
|||||||||||
Quarter |
Quarter |
Fiscal Year |
Fiscal Year |
||||||||
Ended |
Ended |
Ended |
Ended |
||||||||
|
|
|
|
||||||||
Contract revenues |
$ |
750,665 |
$ |
737,603 |
$ |
3,199,165 |
$ |
3,339,682 |
|||
Costs of earned revenues, excluding depreciation and amortization1,2 |
645,476 |
633,203 |
2,641,989 |
2,779,730 |
|||||||
General and administrative3,4 |
63,898 |
60,976 |
259,770 |
254,590 |
|||||||
Depreciation and amortization |
43,584 |
46,615 |
175,897 |
187,556 |
|||||||
|
— |
— |
53,264 |
— |
|||||||
Total |
752,958 |
740,794 |
3,130,920 |
3,221,876 |
|||||||
Interest expense, net6 |
(4,651) |
(12,620) |
(29,671) |
(50,859) |
|||||||
Gain (loss) on debt extinguishment7 |
— |
(76) |
12,046 |
(76) |
|||||||
Other income, net |
676 |
554 |
8,597 |
11,665 |
|||||||
(Loss) income before income taxes |
(6,268) |
(15,333) |
59,217 |
78,536 |
|||||||
(Benefit) provision for income taxes8 |
(2,073) |
(4,144) |
24,880 |
21,321 |
|||||||
Net (loss) income |
$ |
(4,195) |
$ |
(11,189) |
$ |
34,337 |
$ |
57,215 |
|||
(Loss) earnings per common share: |
|||||||||||
Basic (loss) earnings per common share |
$ |
(0.13) |
$ |
(0.35) |
$ |
1.08 |
$ |
1.82 |
|||
Diluted (loss) earnings per common share |
$ |
(0.13) |
$ |
(0.35) |
$ |
1.07 |
$ |
1.80 |
|||
Shares used in computing (loss) earnings per common share: |
|||||||||||
Basic |
31,445,075 |
31,549,417 |
31,665,183 |
31,498,474 |
|||||||
Diluted |
31,445,075 |
31,549,417 |
32,090,578 |
31,821,782 |
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Dollars in thousands) Unaudited |
|||||||||||||||||
CONTRACT REVENUES, NON-GAAP ORGANIC CONTRACT REVENUES, AND GROWTH (DECLINE) %'s |
|||||||||||||||||
Contract Revenues - GAAP |
Revenues from storm restoration services |
Additional week of revenue as a result of the Company's 52/53 week fiscal year |
Non-GAAP |
GAAP - Organic Growth (Decline) % |
Non-GAAP - Organic (Decline) % |
||||||||||||
Quarter Ended |
$ |
750,665 |
$ |
(5,693) |
$ |
(53,212) |
$ |
691,760 |
1.8 |
% |
(6.2) |
% |
|||||
Quarter Ended |
$ |
737,603 |
$ |
— |
$ |
— |
$ |
737,603 |
|||||||||
Fiscal Year Ended |
$ |
3,199,165 |
$ |
(14,587) |
$ |
(53,212) |
$ |
3,131,366 |
(4.2) |
% |
(6.1) |
% |
|||||
Fiscal Year Ended |
$ |
3,339,682 |
$ |
(4,716) |
$ |
— |
$ |
3,334,966 |
NET (LOSS) INCOME AND NON-GAAP ADJUSTED EBITDA |
|||||||||||||||
Quarter |
Quarter |
Fiscal Year |
Fiscal Year |
||||||||||||
Ended |
Ended |
Ended |
Ended |
||||||||||||
|
|
|
|
||||||||||||
Reconciliation of net (loss) income to Non-GAAP Adjusted EBITDA: |
|||||||||||||||
Net (loss) income |
$ |
(4,195) |
$ |
(11,189) |
$ |
34,337 |
$ |
57,215 |
|||||||
Interest expense, net |
4,651 |
12,620 |
29,671 |
50,859 |
|||||||||||
(Benefit) provision for income taxes |
(2,073) |
(4,144) |
24,880 |
21,321 |
|||||||||||
Depreciation and amortization expense |
43,584 |
46,615 |
175,897 |
187,556 |
|||||||||||
Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") |
41,967 |
43,902 |
264,785 |
316,951 |
|||||||||||
Gain on sale of fixed assets |
(819) |
(1,094) |
(10,026) |
(14,879) |
|||||||||||
Stock-based compensation expense |
2,281 |
1,584 |
12,771 |
10,034 |
|||||||||||
Charges for a wage and hour litigation settlement1 |
2,254 |
— |
2,254 |
— |
|||||||||||
|
— |
— |
53,264 |
— |
|||||||||||
(Gain) loss on debt extinguishment7 |
— |
76 |
(12,046) |
76 |
|||||||||||
Recovery of previously reserved accounts receivable and contract assets4 |
— |
— |
— |
(10,345) |
|||||||||||
Charge for warranty costs2 |
— |
— |
— |
8,200 |
|||||||||||
Non-GAAP Adjusted EBITDA |
$ |
45,683 |
$ |
44,468 |
$ |
311,002 |
$ |
310,037 |
|||||||
Non-GAAP Adjusted EBITDA % of contract revenues |
6.1 |
% |
6.0 |
% |
9.7 |
% |
9.3 |
% |
|||||||
Non-GAAP Adjusted EBITDA, excluding contract modification10 |
$ |
299,076 |
|||||||||||||
Non-GAAP Adjusted EBITDA, excluding contract modification % of contract revenues10 |
9.0 |
% |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Dollars in thousands, except share amounts) Unaudited |
|||||||||||
NET (LOSS) INCOME, NON-GAAP ADJUSTED NET (LOSS) INCOME, DILUTED (LOSS) EARNINGS PER COMMON SHARE, AND NON-GAAP ADJUSTED DILUTED (LOSS) EARNINGS PER COMMON SHARE |
|||||||||||
Quarter |
Quarter |
Fiscal Year |
Fiscal Year |
||||||||
Ended |
Ended |
Ended |
Ended |
||||||||
|
|
|
|
||||||||
Reconciliation of net (loss) income to Non-GAAP Adjusted Net (Loss) Income: |
|||||||||||
Net (loss) income |
$ |
(4,195) |
$ |
(11,189) |
$ |
34,337 |
$ |
57,215 |
|||
Pre-Tax Adjustments: |
|||||||||||
Non-cash amortization of debt discount on Notes |
710 |
5,097 |
7,441 |
20,112 |
|||||||
Charges for a wage and hour litigation settlement1 |
2,254 |
— |
2,254 |
— |
|||||||
Gain on debt extinguishment7 |
— |
— |
(12,046) |
— |
|||||||
|
— |
— |
53,264 |
— |
|||||||
Charge for warranty costs2 |
— |
— |
— |
8,200 |
|||||||
Recovery of previously reserved accounts receivable and contract assets4 |
— |
— |
— |
(10,345) |
|||||||
Tax Adjustments: |
|||||||||||
Tax impact for the vesting and exercise of share-based awards |
(255) |
255 |
(497) |
1,056 |
|||||||
Tax effect from net operating loss carryback under enacted CARES Act8 |
— |
— |
(2,631) |
— |
|||||||
Tax impact related to previous tax year filing8 |
— |
— |
— |
1,092 |
|||||||
Tax impact of pre-tax adjustments |
(815) |
(1,402) |
(702) |
(4,941) |
|||||||
Total adjustments, net of tax |
1,894 |
3,950 |
47,083 |
15,174 |
|||||||
Non-GAAP Adjusted Net (Loss) Income |
$ |
(2,301) |
$ |
(7,239) |
$ |
81,420 |
$ |
72,389 |
|||
Non-GAAP Adjusted Net Income, excluding contract modification10 |
$ |
65,138 |
|||||||||
Reconciliation of diluted (loss) earnings per common share to Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share: |
|||||||||||
GAAP diluted (loss) earnings per common share |
$ |
(0.13) |
$ |
(0.35) |
$ |
1.07 |
$ |
1.80 |
|||
Total adjustments, net of tax |
0.06 |
0.13 |
1.47 |
0.48 |
|||||||
Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share |
$ |
(0.07) |
$ |
(0.23) |
$ |
2.54 |
$ |
2.27 |
|||
Non-GAAP Adjusted Diluted Earnings per Common Share, excluding contract modification10 |
$ |
2.05 |
|||||||||
Shares used in computing Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share |
31,445,075 |
31,549,417 |
32,090,578 |
31,821,782 |
|||||||
Amounts in table above may not add due to rounding. |
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
- 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, adjusted for the additional week in the fourth quarter of fiscal 2021, the quarter ended
January 30, 2021 , as a result of the Company's 52/53 week fiscal year. Non-GAAP Organic Contract Revenue (decline) growth is calculated as the percentage change in Non-GAAP Organic Contract Revenues over those of the comparable prior year periods. Management believes organic (decline) growth is a helpful measure for comparing the Company's revenue performance with prior periods.
- Non-GAAP Adjusted EBITDA - net (loss) 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.
- Non-GAAP Adjusted Net (Loss) Income - GAAP net (loss) income before the non-cash amortization of the debt discount and the related tax impact, certain tax impacts resulting from vesting and exercise of share-based awards, and certain non-recurring items. Management believes Non-GAAP Adjusted Net (Loss) Income is a helpful measure for comparing the Company's operating performance with prior periods.
- Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share - Non-GAAP Adjusted Net (Loss) Income divided by weighted average diluted shares outstanding. Diluted shares used in the calculation of GAAP loss per common share and Non-GAAP Adjusted Loss per Common Share for the quarters ended
January 30, 2021 andJanuary 25, 2020 exclude common stock equivalents related to share-based awards as their effect would be anti-dilutive.
- 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 long-term debt. Management believes notional net debt is a helpful measure to assess the Company's liquidity.
Management excludes or adjusts each of the items identified below from Non-GAAP Adjusted Net (Loss) Income and Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share:
- Non-cash amortization of debt discount on Notes - The Company's Notes were allocated between debt and equity components. The difference between the principal amount and the carrying amount of the liability component of the Notes represents a debt discount. The debt discount is being amortized over the term of the Notes but does not result in periodic cash interest payments. The Company excludes the non-cash amortization of the debt discount from its Non-GAAP financial measures because it believes it is useful to analyze the component of interest expense for the Notes that will be paid in cash. The exclusion of the non-cash amortization from the Company's Non-GAAP financial measures provides management with a consistent measure for assessing financial results.
- Charges for a wage and hour litigation settlement - During the fiscal year ended
January 30, 2021 , the Company incurred a$2.3 million pre-tax charge in the fourth quarter for a wage and hour litigation settlement. The Company excludes the impact of this charge from its Non-GAAP financial measures because the Company believes it is not indicative of its underlying results in the current period.
Goodwill impairment charge - During the fiscal year endedJanuary 30, 2021 , the Company incurred a goodwill impairment charge in the first quarter of$53.3 million for a reporting unit that performs installation services inside third party premises. Management believes excluding the goodwill impairment charge from the Company's Non-GAAP financial measures assists investors' overall understanding of the Company's current financial performance and provides management with a consistent measure for assessing the current and historical financial results.
- Gain (loss) on debt extinguishment - During the fiscal year ended
January 30, 2021 , the Company recognized a gain on debt extinguishment of$12.0 million in connection with its purchase of$401.7 million aggregate principal amount of Notes for$371.4 million , including interest and fees. Additionally, during the fiscal year endedJanuary 25, 2020 the Company incurred a pre-tax charge of approximately$0.1 million for extinguishment of debt in connection with the purchase of$25.0 million aggregate principal amount of Notes for$24.3 million , including interest and fees. Management believes excluding the gain (loss) on debt extinguishment from the Company's Non-GAAP financial measures assists investors' overall understanding of the Company's current financial performance and provides management with a consistent measure for assessing the current and historical financial results.
- Charge for warranty costs - During the fiscal year ended
January 25, 2020 , the Company recorded an$8.2 million pre-tax charge in the first quarter for estimated warranty costs for work performed for a customer in prior periods. The Company excludes the impact of this charge from its Non-GAAP financial measures because the Company believes it is not indicative of its underlying results in the current period.
- Recovery of previously reserved accounts receivable and contract assets - During the fiscal year ended
January 25, 2020 , the Company recognized$10.3 million of pre-tax income from the recovery of previously reserved accounts receivable and contract assets in the first quarter based on collections from a customer. The Company excludes the impact of this recovery from its Non-GAAP financial measures because the Company believes it is not indicative of its underlying results.
- Tax impact of the vesting and exercise of share-based awards - The Company excludes certain tax impacts resulting from the vesting and exercise of share-based awards as these amounts may vary significantly from period to period. Excluding these amounts from the Company's Non-GAAP financial measures provides management with a more consistent measure for assessing financial results.
- Tax effect from a net operating loss carryback under enacted CARES Act - For the fiscal year ended
January 30, 2021 , the Company recognized an income tax benefit of$2.6 million during the first quarter from a net operating loss carryback under the enactedU.S. Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The Company excludes this impact because the Company believes it is not indicative of the Company's underlying results or ongoing operations.
- Tax impact of previous tax year filing - During the fiscal year ended
January 25, 2020 , the Company recognized an income tax expense of$1.1 million on a previous tax year filing. The Company excludes this impact because the Company believes it is not indicative of the Company's underlying results or ongoing operations.
- Tax impact of pre-tax adjustments - The tax impact of pre-tax adjustments reflects the Company's estimated tax impact of specific adjustments and the effective tax rate used for financial planning for the applicable period.
Notes
___________________________________________________________
1 During the fiscal year ended
2 During the fiscal year ended
3 Includes stock-based compensation expense of
4 During the fiscal year ended
5 The Company incurred a goodwill impairment charge of
6 Includes pre-tax interest expense for non-cash amortization of the debt discount associated with the Notes of
7 During the fiscal year ended
During the quarter ended
8 For the quarter and fiscal year ended
9 The Company has a 52/53 week fiscal year. The fiscal year ended
10 During the fiscal year ended
View original content to download multimedia:http://www.prnewswire.com/news-releases/dycom-industries-inc-announces-fiscal-2021-fourth-quarter-and-annual-results-301239077.html
SOURCE
Steven E. Nielsen, President and CEO; H. Andrew DeFerrari, Senior Vice President and CFO; Callie A. Tomasso, Investor Relations; (561) 627-7171