Dycom(DY)2025-05-22 12:07Financial Performance - Net income available to common stockholders for the three months ended April 26, 2025, was $61.048 million, compared to $62.554 million for the same period in 2024, reflecting a decrease of approximately 2.4%[34] - Basic earnings per common share for the three months ended April 26, 2025, was $2.11, down from $2.15 in the prior year, indicating a decline of about 1.9%[34] - Total contract revenues for the three months ended April 26, 2025, were $1,258.6 million, a 10.2% increase from $1,142.4 million for the same period in 2024[88] Acquisitions and Goodwill - The company acquired telecommunications construction contractors for a total cash purchase price of $191.2 million across three acquisitions in fiscal 2025, enhancing its geographic presence and customer base[35][36][37] - The company recorded goodwill and intangible assets totaling $161.0 million from the acquisitions, which are deductible for tax purposes[40] - Goodwill balance slightly increased to $330.5 million as of April 26, 2025, from $330.3 million on January 25, 2025, indicating a marginal growth[50] Accounts and Receivables - Total accounts receivable, net, as of April 26, 2025, was $1.528 billion, an increase from $1.375 billion as of January 25, 2025, representing a growth of approximately 11.1%[44] - Contract assets increased to $101.992 million as of April 26, 2025, from $63.375 million as of January 25, 2025, indicating a rise of about 60.7%[45] - Significant customers included Lumen Technologies, which accounted for 16.3% of total combined accounts receivable and contract assets as of April 26, 2025[46] Assets and Liabilities - Other current assets increased to $45.8 million as of April 26, 2025, from $34.6 million on January 25, 2025, representing a growth of approximately 32.3%[47] - Cash and equivalents decreased significantly to $16.1 million as of April 26, 2025, down from $92.7 million on January 25, 2025, a decline of about 82.7%[48] - Total property and equipment net value increased to $567.4 million as of April 26, 2025, compared to $541.9 million on January 25, 2025, reflecting a growth of approximately 4.7%[49] Debt and Interest - As of April 26, 2025, the company's long-term debt amounted to $1,017,635,000, an increase from $933,212,000 on January 25, 2025, representing an 8.99% increase[65] - The weighted average interest rate for the term loan facility was 6.04% as of April 26, 2025, compared to 6.02% on January 25, 2025[70] - The company has a total borrowing availability under its revolving facility of $513,500,000 as of April 26, 2025, down from $602,500,000 on January 25, 2025[70] Tax and Compensation - The effective income tax rate for the three months ended April 26, 2025, was 22.3%, up from 19.2% for the same period in the previous year[74] - The company realized $2,239,000 in income tax effects related to stock-based compensation for the three months ended April 26, 2025[82] - The company had unrecognized compensation expense related to stock options, RSUs, and target Performance RSUs of $1,100,000, $44,700,000, and $21,600,000, respectively, as of April 26, 2025[83] Operational Metrics - Total accrued insurance claims rose to $102.3 million as of April 26, 2025, compared to $96.5 million on January 25, 2025, an increase of approximately 6.0%[60] - Total lease cost recognized for the three months ended April 26, 2025, was $17.9 million, up from $15.5 million for the same period in 2024, representing a year-over-year increase of about 15.1%[62] - Total lease liabilities under long-term operating leases were $113.1 million as of April 26, 2025, slightly up from $112.8 million on January 25, 2025[62] Stock and Shareholder Activity - The company repurchased 200,000 shares of common stock at an average price of $150.93, totaling $30,200,000 during the three months ended April 26, 2025[76] - Performance RSUs granted during the three months ended April 26, 2025, included 95,514 shares with a weighted average grant date fair value of $161.57[85] - The total number of Performance RSUs outstanding as of April 26, 2025, was 275,236 shares, with a weighted average grant date fair value of $139.63[85] Market and Risk Disclosures - The company operates in one reportable segment, providing specialty contracting services throughout the United States[92] - The company has no material changes to its market risk disclosures, primarily related to interest rate fluctuations[169] - The company has issued $47.5 million in standby letters of credit under its credit agreement as of April 26, 2025[99]