Dycom Industries Inc. (DY, Financial) filed Quarterly Report for the period ended 2009-10-24.
Dycom Industries, Inc. is a leading provider of specialty contracting services throughout the United States. These services include engineering, construction, maintenance and installation services to telecommunications providers, underground locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others. Dycom Industries Inc. has a market cap of $303.8 million; its shares were traded at around $7.79 with a P/E ratio of 14.4 and P/S ratio of 0.3. Dycom Industries Inc. had an annual average earning growth of 4.4% over the past 10 years.
significant customers as a result of their reductions in spending, including a $27.5 million decrease for a customer engaged in a multi-year fiber deployment project, a $6.6 million decrease for installation, maintenance and construction services provided to three cable multiple system operators, and a $5.3 million decline in work performed for two significant telephone customers. Other customers had net decreases of $7.3 million during the three months ended October 24, 2009 as compared to the three months ended October 25, 2008. Partially offsetting these decreases was a $2.3 million increase in services to a significant telephone customer that merged with another telephone customer in July 2009.
Costs of Earned Revenues. Costs of earned revenues decreased $58.7 million to $210.0 million for the three months ended October 24, 2009 compared to $268.6 million for the three months ended October 25, 2008. Included in costs of earned revenues for the three months ended October 24, 2009 is a $2.0 million charge recorded in connection with the proposed settlement of a legal matter described under Legal Proceedings above. The primary components of the remaining $60.7 million net decrease in cost of earned revenues were direct labor and subcontractor costs taken together, other direct costs, and direct materials which decreased $45.9 million, $11.3 million, and $3.5 million, respectively. The decrease in costs of earned revenues was primarily due to lower levels of operations during the three months ended October 24, 2009 as compared to the period ended October 25, 2008. Costs of earned revenues as a percentage of contract revenues increased 0.6% for the three months ended October 24, 2009 as compared to the same period last year due in part to the $2.0 million charge related to the proposed legal settlement referred to above, or 0.8% of contract revenues. Excluding the $2.0 million legal settlement charge referred to above, costs of earned revenues as a percentage of contract revenues decreased 0.2% for the three months ended October 24, 2009 as compared to the three months ended October 25, 2008. Fuel costs decreased 0.9% as a percentage of contract revenues as compared to the same period last year primarily due to declines in the price of gasoline and diesel fuel. Labor and subcontractor costs decreased 0.1% as compared to the same period last year due to reduced labor and subcontractor costs in relation to current operating levels. Offsetting these decreases was an increase in other direct costs of 0.8% as a percentage of contract revenues, primarily from increased development costs related to prior insurance claims and from lower absorption of support and field office costs in relation to reduced operating levels during the current year period.
General and Administrative Expenses. General and administrative expenses decreased $4.0 million to $23.5 million during the three months ended October 24, 2009 as compared to $27.5 million for the three months ended October 25, 2008. This decrease resulted from a reduction in incentive pay expense due to lower operating levels and reduced legal and professional fees and
Interest Income and Expense. Interest expense was $3.5 million during the three months ended October 24, 2009 as compared to $4.1 million during the three months ended October 25, 2008. The decrease in the current period reflects reduced interest expense on our senior subordinated notes as a result of the buyback of $14.65 million principal amount of the notes during fiscal 2009 and reduced balances for letters of credit and borrowings under our Credit Agreement.
Other Income, Net. Other income increased to $1.1 million during the three months ended October 24, 2009 from $0.4 million during the three months ended October 25, 2008. During the three months ended October 25, 2008 other income, net included a charge of $0.6 million for the write-off of deferred financing costs in connection with the replacement of our previous credit agreement.
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Dycom Industries, Inc. is a leading provider of specialty contracting services throughout the United States. These services include engineering, construction, maintenance and installation services to telecommunications providers, underground locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others. Dycom Industries Inc. has a market cap of $303.8 million; its shares were traded at around $7.79 with a P/E ratio of 14.4 and P/S ratio of 0.3. Dycom Industries Inc. had an annual average earning growth of 4.4% over the past 10 years.
Highlight of Business Operations:
Revenues decreased $74.9 million, or 22.4%, during the three months ended October 24, 2009 as compared to the three months ended October 25, 2008. The decrease was the result of a $58.3 million decrease in specialty contracting services provided to telecommunications customers, a $12.0 million decrease in revenues from construction and maintenance services provided to electric utilities and other customers, and a $4.6 million decrease in underground facility locating services revenue.significant customers as a result of their reductions in spending, including a $27.5 million decrease for a customer engaged in a multi-year fiber deployment project, a $6.6 million decrease for installation, maintenance and construction services provided to three cable multiple system operators, and a $5.3 million decline in work performed for two significant telephone customers. Other customers had net decreases of $7.3 million during the three months ended October 24, 2009 as compared to the three months ended October 25, 2008. Partially offsetting these decreases was a $2.3 million increase in services to a significant telephone customer that merged with another telephone customer in July 2009.
Costs of Earned Revenues. Costs of earned revenues decreased $58.7 million to $210.0 million for the three months ended October 24, 2009 compared to $268.6 million for the three months ended October 25, 2008. Included in costs of earned revenues for the three months ended October 24, 2009 is a $2.0 million charge recorded in connection with the proposed settlement of a legal matter described under Legal Proceedings above. The primary components of the remaining $60.7 million net decrease in cost of earned revenues were direct labor and subcontractor costs taken together, other direct costs, and direct materials which decreased $45.9 million, $11.3 million, and $3.5 million, respectively. The decrease in costs of earned revenues was primarily due to lower levels of operations during the three months ended October 24, 2009 as compared to the period ended October 25, 2008. Costs of earned revenues as a percentage of contract revenues increased 0.6% for the three months ended October 24, 2009 as compared to the same period last year due in part to the $2.0 million charge related to the proposed legal settlement referred to above, or 0.8% of contract revenues. Excluding the $2.0 million legal settlement charge referred to above, costs of earned revenues as a percentage of contract revenues decreased 0.2% for the three months ended October 24, 2009 as compared to the three months ended October 25, 2008. Fuel costs decreased 0.9% as a percentage of contract revenues as compared to the same period last year primarily due to declines in the price of gasoline and diesel fuel. Labor and subcontractor costs decreased 0.1% as compared to the same period last year due to reduced labor and subcontractor costs in relation to current operating levels. Offsetting these decreases was an increase in other direct costs of 0.8% as a percentage of contract revenues, primarily from increased development costs related to prior insurance claims and from lower absorption of support and field office costs in relation to reduced operating levels during the current year period.
General and Administrative Expenses. General and administrative expenses decreased $4.0 million to $23.5 million during the three months ended October 24, 2009 as compared to $27.5 million for the three months ended October 25, 2008. This decrease resulted from a reduction in incentive pay expense due to lower operating levels and reduced legal and professional fees and
Interest Income and Expense. Interest expense was $3.5 million during the three months ended October 24, 2009 as compared to $4.1 million during the three months ended October 25, 2008. The decrease in the current period reflects reduced interest expense on our senior subordinated notes as a result of the buyback of $14.65 million principal amount of the notes during fiscal 2009 and reduced balances for letters of credit and borrowings under our Credit Agreement.
Other Income, Net. Other income increased to $1.1 million during the three months ended October 24, 2009 from $0.4 million during the three months ended October 25, 2008. During the three months ended October 25, 2008 other income, net included a charge of $0.6 million for the write-off of deferred financing costs in connection with the replacement of our previous credit agreement.
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