PALM BEACH GARDENS, Fla.,
Aug. 23, 2016 /PRNewswire/ -- Dycom Industries, Inc. (NYSE:
DY) announced today its results for the fourth quarter and fiscal
year ended July 30, 2016. The Company reported:
- Contract revenues of $789.2
million for the quarter ended July
30, 2016, compared to $578.5
million for the quarter ended July
25, 2015. Contract revenues for the quarter ended
July 30, 2016 grew 20.0% on an
organic basis after excluding contract revenues from acquired
businesses that were not owned for the entire period in both the
current and prior year quarter and adjusting for the
additional week of operations during the quarter ended
July 30, 2016 as a result of the
Company's 52/53 week fiscal year. Total contract revenues from
acquired businesses were $44.8
million for the quarter ended July
30, 2016, compared to $2.4
million for the quarter ended July
25, 2015.
- Non-GAAP Adjusted EBITDA of $126.0
million, or 16.0% of contract revenues, for the quarter
ended July 30, 2016, compared to
$88.5 million, or 15.3% of contract
revenues, for the quarter ended July 25,
2015.
- On a GAAP basis, net income was $49.4
million, or $1.54 per common
share diluted, for the quarter ended July
30, 2016. Non-GAAP Adjusted Net Income was $52.7 million, or $1.64 per common share diluted, for the quarter
ended July 30, 2016, compared to net
income of $33.8 million, or
$0.97 per common share diluted, for
the quarter ended July 25, 2015.
Non-GAAP Adjusted Net Income for the quarter ended July 30, 2016 excludes $0.7 million of pre-tax acquisition transaction
related costs and $4.6 million of
pre-tax interest expense incurred for non-cash amortization of the
debt discount associated with the Company's 0.75% senior
convertible notes due September
2021.
The Company also reported:
- Contract revenues of $2.673
billion for the fiscal year ended July 30, 2016, compared to $2.022 billion for the fiscal year ended
July 25, 2015. Contract revenues for
the fiscal year ended July 30, 2016
grew 22.7% on an organic basis after excluding contract revenues
from acquired businesses that were not owned for the full year in
both the current and prior year and adjusting for the
additional week of operations during the fourth quarter
of fiscal 2016 as a result of the Company's 52/53 week
fiscal year. Total contract revenues from acquired businesses were
$159.0 million for the fiscal year
ended July 30, 2016, compared to
$17.7 million for the fiscal year
ended July 25, 2015.
- Non-GAAP Adjusted EBITDA of $390.0
million, or 14.6% of contract revenues, for the fiscal year
ended July 30, 2016, compared to
$265.5 million, or 13.1% of contract
revenues, for the fiscal year ended July 25,
2015.
- On a GAAP basis, net income was $128.7
million, or $3.89 per common
share diluted, for the fiscal year ended July 30, 2016. Non-GAAP Adjusted Net Income was
$148.4 million, or $4.48 per common share diluted, for the fiscal
year ended July 30, 2016, compared to
net income of $84.3 million, or
$2.41 per common share diluted, for
the fiscal year ended July 25, 2015.
Non-GAAP Adjusted Net Income for the fiscal year ended July 30, 2016 excludes $0.7 million of pre-tax acquisition transaction
related costs, the impact of a pre-tax charge of approximately
$16.3 million for early
extinguishment of debt in connection with the redemption of the
Company's 7.125% senior subordinated notes, as well as $14.7 million of pre-tax interest expense
incurred for non-cash amortization of the debt discount associated
with the Company's 0.75% senior convertible notes due September 2021.
The Company's fiscal year ends on the last Saturday in July. As
a result, each fiscal year consists of either 52 weeks or 53 weeks
of operations (with the additional week of operations occurring in
the fourth quarter). Fiscal 2016 consisted of 53 weeks and fiscal
2015 consisted of 52 weeks of operations. Fiscal 2017 will consist
of 52 weeks of operations.
The Company also announced its outlook for the first quarter of
fiscal 2017. The Company currently expects total contract revenues
for the first quarter of fiscal 2017 to range from $780 million to $810 million. On a GAAP basis,
diluted earnings per common share for the first quarter of fiscal
2017 is expected to range from $1.47 to
$1.62. Non-GAAP Adjusted Diluted Earnings per Common Share
is expected to range from $1.55 to
$1.70. Non-GAAP Adjusted Diluted Earnings per Common Share
guidance excludes $4.3 million
of pre-tax interest expense for non-cash amortization of debt
discount, or $0.08 per common share
diluted on an after-tax basis. A reconciliation of Non-GAAP
Adjusted Diluted Earnings per Common Share guidance provided for
the first quarter of fiscal 2017 is included within the press
release tables.
Additionally, the Company reported that the recently
acquired operations of Goodman Networks are now expected to
produce lower revenue in fiscal 2017 than initially anticipated but
are expected to achieve higher EBITDA margins sooner than initially
anticipated. The Company currently expects these operations to
produce revenues of approximately $100 million during fiscal
2017. Beginning in the second quarter of fiscal 2017, these
operations are expected to produce EBITDA as a percentage of
revenue in line with Dycom's consolidated EBITDA as a percentage of
revenue.
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 Explanation of Non-GAAP
Financial Measures directly following the press release tables.
Conference Call Information and Other Selected Data
A conference call to review the Company's results will be hosted
at 9:00 a.m. (ET), Wednesday, August 24, 2016; call
(800) 230-1074 (United
States) or (612) 234-9960 (International) ten minutes before
the conference call begins and ask for the "Dycom Results"
conference call. A live webcast of the conference call, along with
related materials, will be available at www.dycomind.com. The
conference call materials will be available at approximately
7:00 a.m. (ET) on August 24, 2016. If you are unable to
attend the conference call at the scheduled time, a replay of the
live webcast and the conference call materials will be available at
www.dycomind.com until Friday, September 23, 2016.
For additional detail on selected financial information
including organic contract revenue, customer metrics, and certain
other selected financial data and Non-GAAP financial measures,
please refer to the Trend Schedule at www.dycomind.com in the
Investor Center. The Trend Schedule will be available at
approximately 7:00 a.m. (ET) on August 24, 2016.
About Dycom Industries, Inc.
Dycom is a leading provider of specialty contracting services
throughout the United States and
in Canada. These services include
program management, engineering, construction, maintenance and
installation services for telecommunications providers, underground
facility locating services for various utilities, including
telecommunications providers, and other construction and
maintenance services for electric and gas utilities.
Forward Looking Information
Fiscal 2016 fourth quarter results are preliminary and
unaudited. This press release contains forward-looking statements
as contemplated by the 1995 Private Securities Litigation Reform
Act. These statements are based on management's current
expectations, estimates and projections and includes the first
quarter of fiscal 2017 outlook and statements found under the
"Reconciliation of Non-GAAP Financial Measures to Comparable GAAP
Financial Measures" section of this release. 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. 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 business and economic conditions and trends in
the telecommunications industry affecting the
Company's customers, 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, preliminary purchase price allocations of
acquired businesses, expected benefits and synergies of
acquisitions, the future impact of any acquisitions or
dispositions, the anticipated outcome of other contingent events,
including litigation, liquidity and other financial needs, the
availability of financing, and the 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
to update forward-looking statements.
---Tables Follow---
DYCOM INDUSTRIES,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Unaudited
|
|
As
of
|
|
As
of
|
|
July 30,
2016
|
|
July 25,
2015
|
|
(Dollars in
thousands)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
equivalents
|
$
|
33,787
|
|
|
$
|
21,289
|
|
Accounts receivable,
net
|
328,030
|
|
|
315,134
|
|
Costs and estimated
earnings in excess of billings
|
376,972
|
|
|
274,730
|
|
Inventories
|
73,606
|
|
|
48,650
|
|
Deferred tax assets,
net
|
22,733
|
|
|
20,630
|
|
Other current
assets
|
16,106
|
|
|
16,199
|
|
Total current
assets
|
851,234
|
|
|
696,632
|
|
|
|
|
|
Property and
equipment, net
|
326,670
|
|
|
231,564
|
|
Goodwill and other
intangible assets, net
|
508,036
|
|
|
392,579
|
|
Other (b)
|
33,776
|
|
|
33,148
|
|
Total non-current
assets
|
868,482
|
|
|
657,291
|
|
Total
assets
|
$
|
1,719,716
|
|
|
$
|
1,353,923
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
115,492
|
|
|
$
|
71,834
|
|
Current portion of debt
(a)
|
13,125
|
|
|
3,750
|
|
Billings in excess of
costs and estimated earnings
|
19,557
|
|
|
16,896
|
|
Accrued insurance
claims
|
36,844
|
|
|
35,824
|
|
Income taxes
payable
|
15,307
|
|
|
8,916
|
|
Other accrued
liabilities
|
122,302
|
|
|
89,490
|
|
Total current
liabilities
|
322,627
|
|
|
226,710
|
|
|
|
|
|
Long-term debt (a)
(b)
|
706,202
|
|
|
516,900
|
|
Accrued insurance
claims
|
52,835
|
|
|
51,476
|
|
Deferred tax
liabilities, net non-current
|
76,587
|
|
|
47,388
|
|
Other
liabilities
|
4,178
|
|
|
4,249
|
|
Total
liabilities
|
1,162,429
|
|
|
846,723
|
|
Total stockholders'
equity
|
557,287
|
|
|
507,200
|
|
Total liabilities and
stockholders' equity
|
$
|
1,719,716
|
|
|
$
|
1,353,923
|
|
|
|
|
|
(a) Total carrying
amount of outstanding indebtedness consisted of the following
(dollars in thousands):
|
|
As
of
|
|
As
of
|
|
July 30,
2016
|
|
July 25,
2015
|
Credit Agreement -
Revolving facility (matures April 2020)
|
$
|
—
|
|
|
$
|
95,250
|
|
Credit Agreement -
Term loan facilities (mature April 2020)
|
346,250
|
|
|
150,000
|
|
0.75% senior
convertible notes (matures September 2021)
|
485,000
|
|
|
—
|
|
Debt discount and
unamortized debt issuance costs (b)
|
(111,923)
|
|
|
(4,941)
|
|
7.125% senior
subordinated notes (including debt premium)
|
—
|
|
|
280,341
|
|
|
719,327
|
|
|
520,650
|
|
Less: Current portion
of term loan facilities
|
(13,125)
|
|
|
(3,750)
|
|
Long-term
debt
|
$
|
706,202
|
|
|
$
|
516,900
|
|
|
|
|
|
(b) During the fourth
quarter of fiscal 2016, debt issuance costs of $4.9 million
(previously reported within other non-current assets) were
reclassified as a reduction to long-term debt as of July 25, 2015
due to the Company's adoption of Financial Accounting Standards
Board Accounting Standards Update No. 2015-03, Interest -
Imputation of Interest (Subtopic 835-30): Simplifying the
Presentation of Debt Issuance Costs.
|
DYCOM INDUSTRIES,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Unaudited
|
|
|
Three
Months
|
|
Three
Months
|
|
Fiscal
Year
|
|
Fiscal
Year
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
July 30,
2016
|
|
July 25,
2015
|
|
July 30,
2016
|
|
July 25,
2015
|
|
(Dollars in
thousands, except per share amounts)
|
|
Contract
revenues
|
$
|
789,159
|
|
$
|
578,479
|
|
$
|
2,672,542
|
|
$
|
2,022,312
|
|
Costs of earned
revenues, excluding
depreciation and amortization
|
605,909
|
|
446,114
|
|
2,083,579
|
|
1,593,250
|
General and
administrative expenses (a)
|
62,146
|
|
47,483
|
|
217,149
|
|
178,700
|
Depreciation and
amortization
|
36,010
|
|
25,865
|
|
124,940
|
|
96,044
|
Total
|
704,065
|
|
519,462
|
|
2,425,668
|
|
1,867,994
|
|
Interest expense, net
(b)
|
(9,710)
|
|
(6,899)
|
|
(34,720)
|
|
(27,025)
|
Loss on debt
extinguishment (c)
|
—
|
|
—
|
|
(16,260)
|
|
—
|
Other income,
net
|
3,569
|
|
1,292
|
|
10,433
|
|
8,291
|
Income before income
taxes
|
78,953
|
|
53,410
|
|
206,327
|
|
135,584
|
|
Provision for income
taxes
|
29,593
|
|
19,583
|
|
77,587
|
|
51,260
|
|
Net income
|
$
|
49,360
|
|
$
|
33,827
|
|
$
|
128,740
|
|
$
|
84,324
|
|
Earnings per common
share:
|
|
|
Basic earnings per
common share
|
$
|
1.57
|
|
$
|
1.00
|
|
$
|
3.98
|
|
$
|
2.48
|
|
Diluted earnings per
common share
|
$
|
1.54
|
|
$
|
0.97
|
|
$
|
3.89
|
|
$
|
2.41
|
|
|
Shares used in
computing earnings per common share:
|
Basic
|
31,363,768
|
|
33,936,859
|
|
32,315,636
|
|
34,045,481
|
|
Diluted
|
32,074,169
|
|
34,830,901
|
|
33,115,755
|
|
35,026,688
|
|
(a) Includes
stock-based compensation expense of $4.2 million and $3.1 million
for the three months ended July 30, 2016 and July 25, 2015,
respectively, and $16.8 million and $13.9 million for the fiscal
year ended July 30, 2016 and July 25, 2015, respectively. Includes
$0.7 million of acquisition transaction related costs for the three
months and fiscal year ended July 30, 2016.
|
|
(b) Includes $4.6
million and $14.7 million for the three months and fiscal year
ended July 30, 2016, respectively, for non-cash amortization
of the debt discount associated with the 0.75% convertible senior
notes due 2021.
|
|
(c) The Company
incurred a pre-tax charge of approximately $16.3 million for early
extinguishment of debt in connection with the redemption of its
7.125% senior subordinated notes due 2021 on September 15,
2015.
|
DYCOM INDUSTRIES,
INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP
FINANCIAL MEASURES
|
Unaudited
|
|
|
NON-GAAP
ORGANIC CONTRACT REVENUES AND NON-GAAP ORGANIC CONTRACT REVENUES
GROWTH %
|
|
|
Contract Revenues
-
GAAP
|
|
Revenues
from businesses acquired (a)
|
|
Additional
week of
revenue as a
result of the
Company's
52/53 week
year (b)
|
|
Non-GAAP
- Organic
Contract Revenues
|
|
GAAP
-
Growth
%
|
|
Non-
GAAP -
Organic
Growth
%
|
|
(Dollars in
thousands)
|
|
Three Months Ended
July 30, 2016
|
$
|
789,159
|
|
$
|
(44,782)
|
|
$
|
(53,170)
|
|
$
|
691,207
|
|
36.4%
|
|
20.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
July 25, 2015
|
$
|
578,479
|
|
$
|
(2,354)
|
|
$
|
—
|
|
$
|
576,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
July 30, 2016
|
$
|
2,672,542
|
|
$
|
(158,965)
|
|
$
|
(52,897)
|
|
$
|
2,460,680
|
|
32.2%
|
|
22.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
July 25, 2015
|
$
|
2,022,312
|
|
$
|
(17,657)
|
|
$
|
—
|
|
$
|
2,004,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts for the
three months and fiscal year ended July 30, 2016 and July 25, 2015
represent revenues from acquired businesses that were not owned for
the full period in both the current and prior year
periods.
|
|
(b) Calculated as
total fourth quarter of fiscal 2016 contract revenues less contract
revenues for the fourth quarter of fiscal 2016 from
businesses acquired that were not owned for the full period in both
the current and prior year period, divided by 14 weeks.
|
|
NON-GAAP
ADJUSTED EBITDA
|
|
|
Three
Months
|
|
Three
Months
|
|
Fiscal
Year
|
|
Fiscal
Year
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
July 30,
2016
|
|
July 25,
2015
|
|
July 30,
2016
|
|
July 25,
2015
|
|
(Dollars in
thousands)
|
Reconciliation of net
income to Non-GAAP
Adjusted EBITDA:
|
|
Net income
|
$
|
49,360
|
|
$
|
33,827
|
|
$
|
128,740
|
|
$
|
84,324
|
Interest expense,
net
|
9,710
|
|
6,899
|
|
34,720
|
|
27,025
|
Provision for income
taxes
|
29,593
|
|
19,583
|
|
77,587
|
|
51,260
|
Depreciation and
amortization expense
|
36,010
|
|
25,865
|
|
124,940
|
|
96,044
|
Earnings Before
Interest, Taxes, Depreciation &
Amortization ("EBITDA")
|
124,673
|
|
86,174
|
|
365,987
|
|
258,653
|
Gain on sale of fixed
assets
|
(3,593)
|
|
(861)
|
|
(9,806)
|
|
(7,110)
|
Stock-based
compensation expense
|
4,249
|
|
3,150
|
|
16,850
|
|
13,923
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
16,260
|
|
—
|
Acquisition related
costs
|
715
|
|
—
|
|
715
|
|
—
|
Non-GAAP Adjusted
EBITDA
|
$
|
126,044
|
|
$
|
88,463
|
|
$
|
390,006
|
|
$
|
265,466
|
DYCOM INDUSTRIES,
INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)
|
Unaudited
|
|
NON-GAAP
ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER COMMON
SHARE
|
|
|
Three
Months
|
|
Fiscal
Year
|
|
Ended
|
|
Ended
|
|
July 30,
2016
|
|
July 30,
2016
|
|
(Dollars in
thousands,
except share
amounts)
|
Reconciliation of
Non-GAAP Adjusted Net Income:
|
|
|
|
|
|
|
|
Net income
|
$
|
49,360
|
|
$
|
128,740
|
|
|
|
|
Adjustments
|
|
|
|
Pre-tax loss on debt
extinguishment
|
—
|
|
16,260
|
Pre-tax non-cash
amortization of debt discount
|
4,590
|
|
14,709
|
Acquisition related
costs
|
715
|
|
715
|
Tax impact of
adjustments
|
(1,995)
|
|
(12,040)
|
Total adjustments,
net of tax
|
3,310
|
|
19,644
|
Non-GAAP Adjusted Net
Income
|
$
|
52,670
|
|
$
|
148,384
|
|
|
|
|
Reconciliation of
Non-GAAP Adjusted Diluted Earnings per Common
Share:
|
|
|
|
|
|
|
|
Net income per common
share
|
$
|
1.54
|
|
$
|
3.89
|
Total adjustments
from above, net of tax
|
0.10
|
|
0.59
|
Non-GAAP Adjusted
Diluted Earnings per Common Share
|
$
|
1.64
|
|
$
|
4.48
|
|
|
|
|
Diluted shares used
in computing Adjusted Diluted Earnings per Common Share
|
32,074,169
|
|
33,115,755
|
|
OUTLOOK -
ADJUSTED DILUTED EARNINGS PER COMMON SHARE
|
|
|
|
Outlook for
the
|
|
Three Months
Ending
|
|
October 29, 2016
(a)
|
|
|
|
|
Diluted earnings per
common share
|
$1.47 -
$1.62
|
|
|
Adjustment
|
|
After-tax non-cash
amortization of debt discount (b)
|
$0.08
|
|
|
Non-GAAP Adjusted
diluted earnings per common share
|
$1.55 -
$1.70
|
|
|
|
|
(a) Guidance for
diluted earnings per common share and Non-GAAP adjusted diluted
earnings per common share for the three months ending October 29,
2016 were computed using approximately 32.2 million in diluted
weighted average shares outstanding.
|
|
(b) The Company
expects to recognize approximately $4.3 million in pre-tax interest
expense during the three months ending October 29, 2016 for
non-cash amortization of the debt discount associated with its
0.75% senior convertible notes. The Company excludes the effect of
this amortization in its Non-GAAP financial measures.
|
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 in this
release 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, adjusted for the additional week in the fourth
quarter of fiscal 2016 as a result of the Company's 52/53 week
fiscal calendar. Non-GAAP Organic Contract Revenue growth (decline)
is calculated as the percentage change in Non-GAAP Organic Contract
Revenues over those of the comparable prior year period. Management
believes organic growth (decline) 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, loss on debt
extinguishment, 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 Income - GAAP net income
before loss on debt extinguishment, non-cash amortization of the
debt discount, certain non-recurring items and any tax impact
related to these items, and "Non-GAAP Adjusted Diluted Earnings per
Common Share" as Non-GAAP Adjusted Net Income divided by weighted
average diluted shares outstanding. Management excludes or adjusts
each of the items identified below from Non-GAAP Adjusted Net
Income and Non-GAAP Adjusted Diluted Earnings per Common
Share:
- Non-cash
amortization of the debt discount - The Company's 0.75% senior
convertible notes due September 2021 (the "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 will be amortized over the term of the notes but will
not result in periodic cash interest payments. During the three
months and fiscal year ended July 30, 2016, the Company
recognized approximately $4.6 million and $14.7 million,
respectively, in pre-tax interest expense for non-cash amortization
of the debt discount associated with the Notes. The Company has
excluded 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.
- Loss on debt
extinguishment - The Company incurred a pre-tax charge of
approximately $16.3 million for early extinguishment of debt in
connection with the redemption of its 7.125% senior subordinated
notes in the first quarter of fiscal 2016. Management believes
excluding the loss on debt extinguishment from the Company's
Non-GAAP financial measures assists investors' overall
understanding of the Company's current financial performance. The
Company believes this type of charge is not indicative of its core
operating results. The exclusion of the loss on debt extinguishment
from the Company's Non-GAAP financial measures provides management
with a consistent measure for assessing the current and historical
financial results.
- Tax impact of
adjusted results - The tax impact of the adjusted results for the
three months and fiscal year ended July 30, 2016 was
calculated utilizing a Non-GAAP effective tax rate which
approximates the Company's effective tax rate used for financial
planning. The tax impact included in the Company's guidance for the
quarter ending October 29, 2016 was calculated using an effective
tax rate used for financial planning and forecasting future
results.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dycom-industries-inc-announces-fiscal-2016-fourth-quarter-and-annual-results-and-provides-guidance-for-the-next-fiscal-quarter-300317276.html
SOURCE Dycom Industries, Inc.