Dycom Industries Inc. (DY, Financial) filed Quarterly Report for the period ended 2010-10-30.
Dycom Industries Inc. has a market cap of $477.7 million; its shares were traded at around $12.47 with a P/E ratio of 65.6 and P/S ratio of 0.4. Dycom Industries Inc. had an annual average earning growth of 4.4% over the past 10 years.DY is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Revenues increased $2.5 million, or 1.0%, during the three months ended October 30, 2010 as compared to the three months ended October 24, 2009. The increase was the result of a $5.3 million increase in revenues from construction and maintenance services provided to electric and gas utilities and other customers and a $0.5 million increase in specialty contracting services provided to telecommunications customers, partially offset by a $3.3 million decrease in services provided to underground facility locating customers.
Specialty construction services provided to telecommunications companies were $205.4 million during the three months ended October 30, 2010, compared to $204.9 million during the three months ended October 24, 2009, an increase of 0.2%. We experienced a $14.2 million increase for a significant telephone customer upgrading and deploying fiber to their network and a $2.1 million combined increase for two other significant telephone customers upgrading their networks. Other customers had net increases of $1.9 million during the three months ended October 30, 2010 as compared to the three months ended October 24, 2009. Partially offsetting these increases was a $16.4 million decrease for a customer engaged in a fiber deployment project and a $1.3 million net decrease for installation, maintenance and construction services provided to leading cable multiple system operators.
Total revenues from underground facility locating customers during the three months ended October 30, 2010 were $43.6 million, compared to $46.9 million during the three months ended October 24, 2009, a decrease of 7.0%. The decrease resulted from contracts that ended subsequent to the first quarter of fiscal 2010 and from declines in customer demand levels as a result of lower levels of construction activity.
Costs of Earned Revenues. Costs of earned revenues were $209.3 million during the three months ended October 30, 2010, compared to $210.0 million during the three months ended October 24, 2009, a decrease of $0.6 million. Included in costs of earned revenues for the three months ended October 30, 2010 and October 24, 2009 are charges of $0.5 million and $2.0 million, respectively, in connection with the settlement of legal matters. Excluding such charges, there was a net $0.9 million increase in costs of earned revenues. The primary components of the net $0.9 million increase was composed of a $6.7 million increase in direct materials, partially offset by a $5.2 million decrease in direct labor and subcontractor costs taken together, and a $0.6 million decrease in other direct costs.
General and Administrative Expenses. General and administrative expenses decreased $0.7 million to $22.8 million during the three months ended October 30, 2010 as compared to $23.5 million during the three months ended October 24, 2009. The decrease in total general and administrative expenses primarily resulted from a reduction of payroll expense and reduced legal and professional fees. Additionally, stock-based compensation expense decreased to $0.8 million during the three months ended October 30, 2010 as compared to $1.0 million during the three months ended October 24, 2009 from reduced performance-based restricted stock unit expense as a result of not meeting fiscal 2010 performance criteria.
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Dycom Industries Inc. has a market cap of $477.7 million; its shares were traded at around $12.47 with a P/E ratio of 65.6 and P/S ratio of 0.4. Dycom Industries Inc. had an annual average earning growth of 4.4% over the past 10 years.DY is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Cost of earned revenues includes all direct costs of providing services under our contracts, including costs for direct labor provided by employees, services by subcontractors, operation of capital equipment (excluding depreciation and amortization), direct material and insurance claims and other related costs. We retain the risk of loss, up to certain limits, for claims related to automobile liability, general liability, workers compensation, employee group health, and locate damages. Locate damage claims result from property and other damages arising in connection with our underground facility locating services. A change in claims experience or actuarial assumptions related to these risks could materially affect our results of operations. For a majority of the contract services we perform, our customers provide all necessary materials and we provide the personnel, tools, and equipment necessary to perform installation and maintenance services. Materials supplied by our customers, for which the customer retains financial and performance risk, are not included in our revenue or costs of sales. During the three months ended October 30, 2010, cost of earned revenues includes a $0.5 million charge related to the settlement of a legal matter as described in “Legal Proceedings” below. In addition, cost of earned revenues for the three months ended October 24, 2009 includes a $2.0 million charge related to the settlement of legal matters, of which $1.6 million was ultimately paid in June 2010.Revenues increased $2.5 million, or 1.0%, during the three months ended October 30, 2010 as compared to the three months ended October 24, 2009. The increase was the result of a $5.3 million increase in revenues from construction and maintenance services provided to electric and gas utilities and other customers and a $0.5 million increase in specialty contracting services provided to telecommunications customers, partially offset by a $3.3 million decrease in services provided to underground facility locating customers.
Specialty construction services provided to telecommunications companies were $205.4 million during the three months ended October 30, 2010, compared to $204.9 million during the three months ended October 24, 2009, an increase of 0.2%. We experienced a $14.2 million increase for a significant telephone customer upgrading and deploying fiber to their network and a $2.1 million combined increase for two other significant telephone customers upgrading their networks. Other customers had net increases of $1.9 million during the three months ended October 30, 2010 as compared to the three months ended October 24, 2009. Partially offsetting these increases was a $16.4 million decrease for a customer engaged in a fiber deployment project and a $1.3 million net decrease for installation, maintenance and construction services provided to leading cable multiple system operators.
Total revenues from underground facility locating customers during the three months ended October 30, 2010 were $43.6 million, compared to $46.9 million during the three months ended October 24, 2009, a decrease of 7.0%. The decrease resulted from contracts that ended subsequent to the first quarter of fiscal 2010 and from declines in customer demand levels as a result of lower levels of construction activity.
Costs of Earned Revenues. Costs of earned revenues were $209.3 million during the three months ended October 30, 2010, compared to $210.0 million during the three months ended October 24, 2009, a decrease of $0.6 million. Included in costs of earned revenues for the three months ended October 30, 2010 and October 24, 2009 are charges of $0.5 million and $2.0 million, respectively, in connection with the settlement of legal matters. Excluding such charges, there was a net $0.9 million increase in costs of earned revenues. The primary components of the net $0.9 million increase was composed of a $6.7 million increase in direct materials, partially offset by a $5.2 million decrease in direct labor and subcontractor costs taken together, and a $0.6 million decrease in other direct costs.
General and Administrative Expenses. General and administrative expenses decreased $0.7 million to $22.8 million during the three months ended October 30, 2010 as compared to $23.5 million during the three months ended October 24, 2009. The decrease in total general and administrative expenses primarily resulted from a reduction of payroll expense and reduced legal and professional fees. Additionally, stock-based compensation expense decreased to $0.8 million during the three months ended October 30, 2010 as compared to $1.0 million during the three months ended October 24, 2009 from reduced performance-based restricted stock unit expense as a result of not meeting fiscal 2010 performance criteria.
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