Dycom(DY) - 2025 Q1 - Quarterly Results

Fiscal 2025 First Quarter Financial Performance First Quarter Highlights Dycom Industries reported strong Q1 FY2025 results, with significant increases in contract revenues, Adjusted EBITDA, and diluted EPS, and share repurchases Fiscal 2025 First Quarter Financial Highlights (YoY) | Metric | Quarter Ended April 27, 2024 | Quarter Ended April 29, 2023 | YoY Change | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Contract revenues | $1,142.4 million | $1,045.5 million | +9.3% | | Organic contract revenues | $1,071.2 million | $1,045.5 million | +2.5% | | Non-GAAP Adjusted EBITDA | $130.9 million | $113.5 million | +15.3% | | Non-GAAP Adjusted EBITDA % of revenues | 11.5% | 10.9% | +0.6 pp | | Net income | $62.6 million | $51.5 million | +21.4% | | Diluted EPS | $2.12 | $1.73 | +22.5% | - The Company repurchased 210,000 shares of its common stock for $29.8 million at an average price of $141.84 per share during the quarter[3][8] Outlook for Q2 Fiscal 2025 The Company anticipates Q2 FY2025 growth, projecting high-single digit organic contract revenue growth and increased Non-GAAP Adjusted EBITDA percentage - Organic contract revenues are expected to grow by high-single digits as a percentage of contract revenues compared to the prior year quarter[4] - Approximately $70 million of acquired contract revenues are expected for the quarter ending July 27, 2024[4] - Non-GAAP Adjusted EBITDA as a percentage of contract revenues is expected to increase 25 to 75 basis points compared to the prior year quarter[4] Company Information & Disclosures About Dycom Industries, Inc. Dycom Industries, Inc. is a leading US specialty contractor for telecommunications and utility infrastructure, offering comprehensive services from planning to maintenance - Dycom provides specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States[9] - Services include program management, planning, engineering and design, aerial, underground, and wireless construction, maintenance, fulfillment, and underground facility locating services[9] Forward-Looking Information This section outlines forward-looking statements based on management's expectations, subject to risks and uncertainties detailed in SEC filings - The press release contains forward-looking statements, particularly regarding the outlook for the quarter ending July 27, 2024[10] - These statements are based on management's expectations and are subject to known and unknown risks and uncertainties that may cause actual results to differ materially[10] - Significant risks and uncertainties are described in the Company's Form 10-K, 10-Q, and 8-K reports, including economic conditions, customer capital budgets, material/labor costs, and impacts of acquisitions[10] Conference Call Information Details for the fiscal 2025 first quarter results conference call, including registration, webcast access, and replay availability - A conference call to discuss fiscal 2025 first quarter results was scheduled for Wednesday, May 22, 2024, at 9:00 a.m. Eastern time[6] - Participants could register to receive a dial-in number and PIN, or access a live listen-only audio webcast with an accompanying slide presentation[6][7] - A replay of the webcast and related materials will be available on the Company's Investor Center website for approximately 120 days[7] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets The balance sheet shows Q1 FY2025 financial position, with total assets increasing to $2.61 billion and stockholders' equity rising to $1.08 billion sequentially Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | April 27, 2024 | January 27, 2024 | Change | | :------------------------- | :------------- | :--------------- | :----- | | ASSETS | | | | | Total current assets | $1,626,821 | $1,550,036 | +$76,785 | | Total assets | $2,611,608 | $2,516,885 | +$94,723 | | LIABILITIES & EQUITY | | | | | Total current liabilities | $513,554 | $506,304 | +$7,250 | | Total liabilities | $1,530,976 | $1,462,229 | +$68,747 | | Total stockholders' equity | $1,080,632 | $1,054,656 | +$25,976 | Condensed Consolidated Statements of Operations Q1 FY2025 operations show a 9.3% increase in contract revenues to $1.14 billion and a 21.4% rise in net income to $62.6 million year-over-year Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Quarter Ended April 27, 2024 | Quarter Ended April 29, 2023 | YoY Change | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------- | | Contract revenues | $1,142,423 | $1,045,474 | +9.3% | | Costs of earned revenues | $921,636 | $853,366 | +7.9% | | General and administrative | $94,555 | $82,357 | +14.8% | | Income before income taxes | $77,444 | $66,099 | +17.2% | | Net income | $62,554 | $51,523 | +21.4% | | Diluted earnings per common share | $2.12 | $1.73 | +22.5% | Non-GAAP Financial Measures Reconciliation and Explanation Reconciliation of Non-GAAP Financial Measures This section reconciles Non-GAAP financial measures, including organic contract revenues and adjusted EBITDA, to GAAP figures for clearer performance comparison Contract Revenues, Non-GAAP Organic Contract Revenues, and Growth % Contract Revenues Reconciliation (in thousands) | Metric | Quarter Ended April 27, 2024 | Quarter Ended April 29, 2023 | YoY Growth % | | :------------------------------------ | :--------------------------- | :--------------------------- | :----------- | | Contract Revenues - GAAP | $1,142,423 | $1,045,474 | 9.3% | | Revenues from acquired businesses | $(71,237) | — | N/A | | Non-GAAP Organic Contract Revenues | $1,071,186 | $1,045,474 | 2.5% | Net Income and Non-GAAP Adjusted EBITDA Net Income to Non-GAAP Adjusted EBITDA Reconciliation (in thousands) | Metric | Quarter Ended April 27, 2024 | Quarter Ended April 29, 2023 | YoY Change | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------- | | Net income | $62,554 | $51,523 | +$11,031 | | Interest expense, net | $12,834 | $11,372 | +$1,462 | | Provision for income taxes | $14,890 | $14,576 | +$314 | | Depreciation and amortization | $45,205 | $37,271 | +$7,934 | | EBITDA | $135,483 | $114,742 | +$20,741 | | Gain on sale of fixed assets | $(12,404) | $(7,816) | -$4,588 | | Stock-based compensation expense | $7,823 | $6,620 | +$1,203 | | Non-GAAP Adjusted EBITDA | $130,902 | $113,546 | +$17,356 | | Non-GAAP Adjusted EBITDA % of contract revenues | 11.5% | 10.9% | +0.6 pp | Explanation of Non-GAAP Financial Measures The company defines Non-GAAP Organic Contract Revenues and Non-GAAP Adjusted EBITDA, explaining their purpose for direct performance comparison - Non-GAAP Organic Contract Revenues are defined as contract revenues from businesses included for the entire period in both current and prior year periods, excluding storm restoration services[21][23] - Non-GAAP Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items[21][23] - Management believes these Non-GAAP measures are useful for comparing the Company's performance with prior periods and with other companies, despite different capital structures or tax rates[21][23]