Dycom(US:DY)2025-11-20 13:50Financial Performance - Net income available to common stockholders for the three months ended October 25, 2025, was $106.4 million, compared to $69.8 million for the same period in 2024, representing a 52.5% increase [41]. - Basic earnings per common share increased to $3.67 for the three months ended October 25, 2025, from $2.39 in the same period of 2024, reflecting a 53.7% growth [41]. - For the three months ended October 25, 2025, total contract revenues were $1,451.8 million, a 14.1% increase from $1,272.0 million for the same period in 2024 [98]. - For the nine months ended October 25, 2025, total contract revenues were $4,088.3 million, an increase from $3,617.5 million for the same period in 2024 [99]. - The telecommunications sector represented 91.6% of total contract revenues for the three months ended October 25, 2025, compared to 90.6% for the same period in 2024 [99]. Acquisitions and Investments - 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 [42][43][44]. - The preliminary purchase price for the acquisition of Power Solutions, LLC is $1,950,000,000, with 15% of this amount ($292,500,000) to be paid in common stock [111]. - The acquisition will involve a mix of 1,011,069 shares of common stock and cash, with the cash portion being $1,657,500,000 minus purchase price adjustments [111]. - The company has secured a $1,000 million senior secured term loan A facility and a $700 million 364-day senior secured bridge loan facility to finance the acquisition [113]. - The acquisition is subject to customary conditions and is not obligated to close before December 22, 2025, with an outside termination date of May 18, 2026 [112]. - The company aims to integrate Power Solutions' operations to realize anticipated benefits and synergies from the acquisition [116]. - Forward-looking statements regarding the acquisition are subject to various risks and uncertainties, including regulatory approvals and integration challenges [116]. Assets and Liabilities - Total accounts receivable, net, as of October 25, 2025, was $1.59 billion, up from $1.37 billion as of January 25, 2025, indicating a 15.6% increase [51]. - As of October 25, 2025, net contract assets amounted to $92.8 million, a significant increase from a net liability of $10.2 million as of January 25, 2025 [52]. - The company recorded intangible assets totaling $142.2 million from acquisitions, with customer relationships valued at $114.3 million [48]. - Goodwill and intangible assets from acquisitions totaled $163.1 million, which are deductible for tax purposes [47]. - Goodwill increased to $332.6 million as of October 25, 2025, from $330.3 million as of January 25, 2025, reflecting adjustments from fiscal 2025 acquisitions [57]. - Intangible assets, net, were reported at $183.999 million as of October 25, 2025, with amortization expense for finite-lived intangible assets at $11.8 million for the three months ended October 25, 2025 [59][60]. - The net carrying amount of long-term debt as of October 25, 2025, was $919,480,000, a slight decrease from $933,212,000 as of January 25, 2025 [72]. Cash Flow and Liquidity - Total cash and equivalents increased to $110.1 million as of October 25, 2025, compared to $92.7 million as of January 25, 2025 [55]. - The Company had borrowing availability under its revolving facility of $596.4 million as of October 25, 2025 [77]. - Cash paid for lease liabilities during the three months ended October 25, 2025, was $10,286,000, compared to $12,063,000 in 2024, reflecting a decrease of 14.8% [70]. Tax and Compliance - The effective income tax rate for the three months ended October 25, 2025, was 24.2%, compared to 23.6% for the same period in 2024 [82]. - The company plans to adopt ASU 2023-09 regarding income tax disclosures in the fourth quarter of fiscal 2026, which will enhance transparency without impacting financial position [37]. Stock and Compensation - Stock-based compensation expense for the three months ended October 25, 2025, was $7.986 million, down from $14.024 million in the same period of 2024 [93]. - As of October 25, 2025, the company had unrecognized compensation expense related to RSUs of $36.4 million, which will be recognized over a weighted-average period of 2.3 years [94]. - The company incurred approximately $11.4 million of incremental stock-based compensation modification expense in fiscal 2025 related to previously issued equity awards [92]. Risk Management - There were no material changes to the company's market risk disclosures during the three months ended October 25, 2025, primarily related to interest rate changes [192].