[
X]
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from ________ to ________
|
Commission File Number 001-10613
|
DYCOM INDUSTRIES, INC.
|
(
Exact name of registrant as specified in its charter
)
|
Florida
|
59-1277135
|
|
(
State or other jurisdiction of incorporation or organization
)
|
(
I.R.S. Employer Identification No.
)
|
|
11770 US Highway 1, Suite 101,
Palm Beach Gardens, Florida
|
33408
|
|
(
Address of principal executive offices
)
|
(
Zip Code
)
|
Registrant’s telephone number, including area code: (561) 627-7171
|
Large accelerated filer [X] | Accelerated filer [ ] | Non-accelerated filer [ ] | Smaller reporting company [ ] |
(Do not check if a smaller reporting company) |
Document
|
Part of Form 10-K into which incorporated
|
Portions of the registrant’s Proxy Statement to be filed by November 25, 2012
|
Parts II and III
|
Such Proxy Statement, except for the portions thereof which have been specifically incorporated by reference, shall not be deemed “filed” as part of this Annual Report on Form 10-K.
|
Dycom
Industries, Inc.
|
||
3
|
||
3
|
||
PART I
|
||
3
|
||
8
|
||
13
|
||
13
|
||
13
|
||
13
|
||
PART II
|
||
13
|
||
16
|
||
17
|
||
32
|
||
32
|
||
64
|
||
64
|
||
66
|
||
PART III
|
||
66
|
||
66
|
||
66
|
||
66
|
||
66
|
||
PART IV
|
||
66
|
||
69
|
·
|
anticipated outcomes of contingent events, including litigation;
|
·
|
projections of revenues, income or loss, or capital expenditures;
|
·
|
whether the carrying value of our assets is impaired;
|
·
|
plans for future operations, growth and acquisitions, dispositions, or financial needs;
|
·
|
availability of financing;
|
·
|
the outcome of our plans for future operations, growth and services, including contract backlog;
|
·
|
restrictions imposed by our credit agreement and the indenture governing our senior subordinated notes;
|
·
|
the use of our cash flow to service our debt;
|
·
|
future economic conditions and trends in the industries we serve;
|
·
|
assumptions relating to any of foregoing;
|
Fiscal Year Ended
|
|||||||
2012
|
2011
|
2010
|
|||||
Telecommunications
|
84.5
|
%
|
82.1
|
%
|
79.2
|
%
|
|
Underground facility locating
|
10.9
|
14.0
|
17.8
|
||||
Electric and gas utilities and other customers
|
4.6
|
3.9
|
3.0
|
||||
Total contract revenues
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
Executive
|
||||||
Name
|
Age
|
Office
|
Officer Since
|
|||
Steven E. Nielsen
|
49
|
Chairman, President and Chief Executive Officer
|
February 26, 1996
|
|||
Timothy R. Estes
|
58
|
Executive Vice President and Chief Operating Officer
|
September 1, 2001
|
|||
H. Andrew DeFerrari
|
43
|
Senior Vice President and Chief Financial Officer
|
November 22, 2005
|
|||
Richard B. Vilsoet
|
59
|
Vice President, General Counsel and Corporate Secretary
|
June 11, 2005
|
·
|
fluctuations in our operating results or the operating results of one or more of our competitors;
|
·
|
announcements by us or our competitors of significant contracts, acquisitions or capital commitments;
|
·
|
changes in recommendations or earnings estimates by securities analysts; and
|
·
|
the impact of economic conditions on the credit and stock markets and on our customers’ demand for our services.
|
Fiscal 2012
|
Fiscal 2011
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
First Quarter
|
$ | 20.20 | $ | 12.59 | $ | 11.32 | $ | 7.45 | ||||||||
Second Quarter
|
$ | 22.18 | $ | 17.86 | $ | 16.79 | $ | 10.84 | ||||||||
Third Quarter
|
$ | 23.79 | $ | 21.28 | $ | 17.51 | $ | 14.40 | ||||||||
Fourth Quarter
|
$ | 23.58 | $ | 16.75 | $ | 18.56 | $ | 14.27 |
Period
|
Total Number of Shares Purchased
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
|||||||||
April 29, 2012 - May 26, 2012
|
52,100 | $ | 19.53 | 52,100 |
(a)
|
||||||||
May 27, 2012 - June 23, 2012
|
50,100 | $ | 19.98 | 50,100 |
(a)
|
||||||||
June 24, 2012 - July 28, 2012
|
- | $ | - | - |
(a)
|
Fiscal Year Ended
|
Number of Shares Repurchased
|
Total Consideration
(Dollars in thousands)
|
Average Price Per Share
|
|||||||||
July 31, 2010
|
475,602 | $ | 4,489 | $ | 9.44 | |||||||
July 30, 2011
|
5,389,500 | $ | 64,548 | $ | 11.98 | |||||||
July 28, 2012
|
597,700 | $ | 12,960 | $ | 21.68 |
Fiscal Year
|
||||||||||||||||||||
2012
|
2011 (1)
|
2010 (2)
|
2009 (3)
|
2008 (4)
|
||||||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||||||
Operating Data:
|
||||||||||||||||||||
Revenues
|
$ | 1,201,119 | $ | 1,035,868 | $ | 988,623 | $ | 1,106,900 | $ | 1,229,956 | ||||||||||
Income (loss) from continuing operations
|
$ | 39,378 | $ | 16,107 | $ | 5,849 | $ | (53,094 | ) | $ | 24,404 | |||||||||
Net income (loss)
|
$ | 39,378 | $ | 16,107 | $ | 5,849 | $ | (53,180 | ) | $ | 21,678 | |||||||||
Earnings (Loss) Per Common Share From Continuing Operations:
|
||||||||||||||||||||
Basic
|
$ | 1.17 | $ | 0.46 | $ | 0.15 | $ | (1.35 | ) | $ | 0.60 | |||||||||
Diluted
|
$ | 1.14 | $ | 0.45 | $ | 0.15 | $ | (1.35 | ) | $ | 0.60 | |||||||||
Earnings (Loss) Per Common Share:
|
||||||||||||||||||||
Basic
|
$ | 1.17 | $ | 0.46 | $ | 0.15 | $ | (1.35 | ) | $ | 0.54 | |||||||||
Diluted
|
$ | 1.14 | $ | 0.45 | $ | 0.15 | $ | (1.35 | ) | $ | 0.53 | |||||||||
Balance Sheet Data (at end of period):
|
||||||||||||||||||||
Total assets
|
$ | 772,193 | $ | 724,755 | $ | 679,556 | $ | 693,457 | $ | 801,272 | ||||||||||
Long-term liabilities (5)
|
$ | 264,699 | $ | 254,391 | $ | 187,798 | $ | 192,804 | $ | 225,715 | ||||||||||
Stockholders’ equity (6)
|
$ | 392,931 | $ | 351,851 | $ | 394,555 | $ | 390,623 | $ | 444,093 |
(1) |
Includes the results of Communication Services, Inc. (“Communication Services”) (acquired November 2010) and NeoCom Solutions, Inc. (“NeoCom”) (acquired December 2010) since their acquisition dates. Additionally, during fiscal 2011, the Company recognized debt extinguishment costs consisting of (a) $6.0 million in tender premiums and legal and professional fees associated with the tender offer to purchase the $135.35 million outstanding aggregate principal amount of its 8.125% senior subordinated notes due 2015 (the “2015 Notes”) and the subsequent redemption of the remaining balance of the 2015 Notes not tendered for purchase; and (b) $2.3 million in deferred debt issuance costs that were written off as a result of the completion of such tender offer and redemption. See Note 9 in Notes to the Consolidated Financial Statements.
|
(2) |
During the first quarter of fiscal 2010, we recognized a non-cash income tax charge of $1.1 million for a valuation allowance on a deferred tax asset associated with an investment that became impaired for tax purposes. See Note 10 in Notes to the Consolidated Financial Statements.
|
(3) |
During fiscal 2009, we recognized a goodwill impairment charge of $94.4 million as a result of an interim impairment test of goodwill that included impairments at the following reporting units: Broadband Installation Services for $14.8 million, C-2 Utility Contractors for $9.2 million, Ervin Cable Construction for $15.7 million, Nichols Construction for $2.0 million, Stevens Communications for $2.4 million and UtiliQuest for $50.5 million.
|
(4) |
During fiscal 2008, we incurred charges of approximately $8.2 million for amounts to be paid to current and former employees of our UtiliQuest, S.T.S., and Locating subsidiaries in connection with the settlement of litigation and charges of approximately $1.2 million in discontinued operations for the settlement of litigation at our Apex Digital, LLC subsidiary. Fiscal 2008 results also include goodwill impairment charges of $5.9 million and $3.8 million related to our Stevens Communications reporting unit and our Nichols Construction reporting unit, respectively, as a result of our annual assessment of goodwill.
|
(5) |
During fiscal 2011, we issued $187.5 million aggregate principal amount of 7.125% senior subordinated notes due 2021 (the “2021 Notes”) in a private placement. A portion of the net proceeds was used to fund a tender offer and redemption of $135.35 million aggregate principal amount of the outstanding 2015 Notes. In March 2011, we filed a registration statement on Form S-4 with the SEC to exchange the 2021 Notes for registered notes with substantially similar terms. The registration statement became effective on June 23, 2011. During fiscal 2009, the Company repurchased a principal amount of $14.65 million of its 2015 Notes for $11.3 million.
|
(6) |
We purchased 597,700 shares of our common stock in fiscal 2012 for $13.0 million at an average price of $21.68 per share, 5,389,500 shares of our common stock in fiscal 2011 for $64.5 million at an average price of $11.98 per share, 475,602 shares of our common stock in fiscal 2010 for $4.5 million at an average price of $9.44 per share, 450,000 shares of our common stock in fiscal 2009 for $2.9 million at an average price of $6.48 per share, and 1,693,500 shares of our common stock in fiscal 2008 for $25.2 million at an average price of $14.83 per share.
|
Fiscal Year Ended
|
||||||
2012
|
2011
|
2010
|
||||
Multi-year master service agreements
|
70.3
|
%
|
75.5
|
%
|
76.0
|
%
|
Other long-term contracts
|
10.3
|
10.4
|
14.6
|
|||
Total long-term contracts
|
80.6
|
%
|
85.9
|
%
|
90.6
|
%
|
2012
|
2011
|
2010
|
||||
Terminal growth rate range
|
1.5% - 3.0%
|
1.5% - 3.0%
|
1.0% - 3.0%
|
|||
Discount rate
|
13.0%
|
13.5%
|
15.0%
|
Fiscal Year Ended
|
|||||||||||||||||||||
2012
|
2011
|
2010
|
|||||||||||||||||||
(Dollars in millions)
|
|||||||||||||||||||||
Revenues
|
$ | 1,201.1 | 100.0 | % | $ | 1,035.9 | 100.0 |
%
|
$ | 988.6 | 100.0 | % | |||||||||
Expenses:
|
|||||||||||||||||||||
Cost of earned revenue, excluding depreciation and amortization
|
968.9 | 80.7 | 837.1 | 80.8 | 810.1 | 81.9 | |||||||||||||||
General and administrative
|
104.0 | 8.7 | 94.6 | 9.1 | 98.1 | 9.9 | |||||||||||||||
Depreciation and amortization
|
62.7 | 5.2 | 62.5 | 6.0 | 63.6 | 6.4 | |||||||||||||||
Total
|
1,135.7 | 94.6 | 994.3 | 96.0 | 971.8 | 98.3 | |||||||||||||||
Interest expense, net
|
(16.7 | ) | (1.4 | ) | (15.9 | ) | (1.5 | ) | (14.2 | ) | (1.4 | ) | |||||||||
Loss on debt extinguishment
|
- | - | (8.3 | ) | (0.8 | ) | - | - | |||||||||||||
Other income, net
|
15.8 | 1.3 | 11.1 | 1.1 | 8.1 | 0.8 | |||||||||||||||
Income before income taxes
|
64.6 | 5.4 | 28.5 | 2.7 | 10.7 | 1.1 | |||||||||||||||
Provision for income taxes
|
25.2 | 2.1 | 12.4 | 1.2 | 4.9 | 0.5 | |||||||||||||||
Net income
|
$ | 39.4 | 3.3 | % | $ | 16.1 | 1.6 | % | $ | 5.8 | 0.6 | % |
Fiscal Year Ended
|
%
|
|||||||||||||||||||||||
2012
|
2011
|
Increase
|
Increase
|
|||||||||||||||||||||
Revenue
|
% of Total
|
Revenue
|
% of Total
|
(decrease)
|
(decrease)
|
|||||||||||||||||||
(Dollars in millions)
|
||||||||||||||||||||||||
Telecommunications
|
$ | 1,014.6 | 84.5 | % | $ | 850.5 | 82.1 | % | $ | 164.1 | 19.3 | % | ||||||||||||
Underground facility locating
|
131.3 | 10.9 | 144.7 | 14.0 | (13.4 | ) | (9.2 | ) | ||||||||||||||||
Electric and gas utilities and other customers
|
55.2 | 4.6 | 40.7 | 3.9 | 14.5 | 35.6 | ||||||||||||||||||
Total contract revenues
|
$ | 1,201.1 | 100.0 | % | $ | 1,035.9 | 100.0 | % | $ | 165.3 | 16.0 | % |
Fiscal Year Ended
|
||||||||
2012
|
2011
|
|||||||
(Dollars in millions)
|
||||||||
Income tax provision
|
$ | 25.2 | $ | 12.4 | ||||
Effective income tax rate
|
39.0 | % | 43.5 | % |
Fiscal Year Ended
|
%
|
|||||||||||||||||||||||
2011
|
2010
|
Increase
|
Increase
|
|||||||||||||||||||||
Revenue
|
% of Total
|
Revenue
|
% of Total
|
(decrease)
|
(decrease)
|
|||||||||||||||||||
(Dollars in millions)
|
||||||||||||||||||||||||
Telecommunications
|
$ | 850.5 | 82.1 | % | $ | 783.6 | 79.2 | % | $ | 66.9 | 8.5 | % | ||||||||||||
Underground facility locating
|
144.7 | 14.0 | 176.3 | 17.8 | (31.7 | ) | (17.9 | ) | ||||||||||||||||
Electric and gas utilities and other customers
|
40.7 | 3.9 | 28.7 | 3.0 | 12.0 | 41.8 | ||||||||||||||||||
Total contract revenues
|
$ | 1,035.9 | 100.0 | % | $ | 988.6 | 100.0 | % | $ | 47.2 | 4.8 | % |
Fiscal Year Ended
|
||||||||
2011
|
2010
|
|||||||
(Dollars in millions)
|
||||||||
Income tax provision
|
$ | 12.4 | $ | 4.9 | ||||
Effective income tax rate
|
43.5 | % | 45.5 | % |
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in millions)
|
||||||||||||
Net cash flows:
|
||||||||||||
Provided by operating activities
|
$ | 65.1 | $ | 43.9 | $ | 54.1 | ||||||
Used in investing activities
|
$ | (51.9 | ) | $ | (85.4 | ) | $ | (46.6 | ) | |||
Used in financing activities
|
$ | (5.4 | ) | $ | (17.0 | ) | $ | (8.9 | ) |
Less than 1 Year
|
Years 1-3
|
Years 3 - 5
|
Greater than 5 Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
7.125% senior subordinated notes due 2021
|
$ | - | $ | - | $ | - | $ | 187,500 | $ | 187,500 | ||||||||||
Interest payments on debt (excluding capital leases)
|
13,359 | 26,719 | 26,719 | 46,758 | 113,555 | |||||||||||||||
Capital lease obligations (including interest and executory costs)
|
76 | - | - | - | 76 | |||||||||||||||
Operating lease obligations
|
8,308 | 10,237 | 4,665 | 2,135 | 25,345 | |||||||||||||||
Employment agreements
|
3,224 | 2,242 | 652 | - | 6,118 | |||||||||||||||
Purchase and other contractual obligations
|
7,158 | - | - | - | 7,158 | |||||||||||||||
Total
|
$ | 32,125 | $ | 39,198 | $ | 32,036 | $ | 236,393 | $ | 339,752 |
·
|
our fiscal year which ends on the last Saturday in July, and as a result, fiscal 2012 and fiscal 2011 consisted of 52 weeks while fiscal 2010 consisted of 53 weeks, with its fourth quarter having 14 weeks of operations;
|
·
|
the timing and volume of customers’ construction and maintenance projects, including possible delays as a result of material procurement;
|
·
|
seasonal budgetary spending patterns of customers and the timing of their budget approvals;
|
·
|
the commencement or termination of master service agreements and other long-term agreements with customers;
|
·
|
costs incurred to support growth internally or through acquisitions;
|
·
|
fluctuations in results of operations caused by acquisitions;
|
·
|
fluctuations in the employer portion of payroll taxes as a result of reaching the limitation on payroll withholdings obligations;
|
·
|
changes in mix of customers, contracts, and business activities;
|
·
|
fluctuations in insurance expense due to changes in claims experience and actuarial assumptions;
|
·
|
fluctuations in stock-based compensation expense as a result of performance criteria in performance-based share awards, as well as the timing and vesting period of all stock-based awards;
|
·
|
fluctuations in incentive pay as a result of operating results;
|
·
|
fluctuations in interest expense due to levels of debt and related borrowing costs;
|
·
|
fluctuations in other income as a result of the timing and levels of capital assets sold during the period; and
|
·
|
fluctuations in income tax expense due to levels of taxable earnings, the impact of non-deductible items and tax credits, and the impact of disqualifying dispositions of incentive stock option expenses.
|
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||
Net income available to common stockholders (numerator)
|
$ | 39,378 | $ | 16,107 | $ | 5,849 | ||||||
Weighted-average number of common shares (denominator)
|
33,653,055 | 35,306,900 | 38,931,029 | |||||||||
Basic earnings per common share
|
$ | 1.17 | $ | 0.46 | $ | 0.15 | ||||||
Weighted-average number of common shares
|
33,653,055 | 35,306,900 | 38,931,029 | |||||||||
Potential common stock arising from stock options, and unvested restricted share units
|
828,840 | 447,268 | 65,837 | |||||||||
Total shares-diluted (denominator)
|
34,481,895 | 35,754,168 | 38,996,866 | |||||||||
Diluted earnings per common share
|
$ | 1.14 | $ | 0.45 | $ | 0.15 | ||||||
Anti-dilutive weighted shares excluded from the calculation of earnings per share
|
1,262,964 | 2,071,254 | 2,647,975 |
July 28,
|
July 30,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Contract billings
|
$ | 136,610 | $ | 136,371 | ||||
Retainage and other receivables
|
5,448 | 2,549 | ||||||
Total
|
142,058 | 138,920 | ||||||
Less: allowance for doubtful accounts
|
(270 | ) | (368 | ) | ||||
Accounts receivable, net
|
$ | 141,788 | $ | 138,552 |
Fiscal Year Ended
|
||||||||
July 28, 2012
|
July 30, 2011
|
|||||||
(Dollars in thousands)
|
||||||||
Allowance for doubtful accounts at beginning of period
|
$ | 368 | $ | 559 | ||||
Bad debt expense (recovery), net
|
186 | (23 | ) | |||||
Amounts charged against the allowance
|
(284 | ) | (168 | ) | ||||
Allowance for doubtful accounts at end of period
|
$ | 270 | $ | 368 |
July 28,
|
July 30,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Costs incurred on contracts in progress
|
$ | 100,766 | $ | 71,685 | ||||
Estimated to date earnings
|
26,555 | 19,170 | ||||||
Total costs and estimated earnings
|
127,321 | 90,855 | ||||||
Less: billings to date
|
(1,522 | ) | (749 | ) | ||||
$ | 125,799 | $ | 90,106 | |||||
Included in the accompanying consolidated balance sheets under the captions:
|
||||||||
Costs and estimated earnings in excess of billings
|
$ | 127,321 | $ | 90,855 | ||||
Billings in excess of costs and estimated earnings
|
(1,522 | ) | (749 | ) | ||||
$ | 125,799 | $ | 90,106 |
General
|
July 28,
|
July 30,
|
||||||||||
Useful Lives
|
2012
|
2011
|
||||||||||
(Years)
|
(Dollars in thousands)
|
|||||||||||
Land
|
-- | $ | 2,915 | $ | 3,165 | |||||||
Buildings
|
15-35 | 10,630 | 11,707 | |||||||||
Leasehold improvements
|
3-15 | 4,674 | 4,554 | |||||||||
Vehicles
|
3-5 | 220,669 | 216,648 | |||||||||
Computer hardware and software
|
3-10 | 57,965 | 54,998 | |||||||||
Office furniture and equipment
|
3-5 | 5,552 | 5,477 | |||||||||
Equipment and machinery
|
2-10 | 133,467 | 127,412 | |||||||||
Total
|
435,872 | 423,961 | ||||||||||
Less: accumulated depreciation
|
(277,625 | ) | (274,522 | ) | ||||||||
Property and equipment, net
|
$ | 158,247 | $ | 149,439 |
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Depreciation expense
|
$ | 56,187 | $ | 55,727 | $ | 57,177 | ||||||
Repairs and maintenance expense
|
$ | 15,623 | $ | 15,130 | $ | 14,634 |
Fiscal 2011 Changes
|
||||||||||||||||||||
As of
|
Impairment
|
As of
|
As of
|
|||||||||||||||||
July 31, 2010
|
Losses
|
Acquisitions
|
July 30, 2011
|
July 28, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Goodwill
|
$ | 353,618 | $ | - | $ | 16,998 | $ | 370,616 | $ | 370,616 | ||||||||||
Accumulated impairment losses
|
(195,767 | ) | - | - | (195,767 | ) | (195,767 | ) | ||||||||||||
$ | 157,851 | $ | - | $ | 16,998 | $ | 174,849 | $ | 174,849 |
Weighted Average Remaining Useful Lives
|
July 28, 2012
|
July 30, 2011
|
|||||||||
(Years)
|
(Dollars in thousands)
|
||||||||||
Carrying amount:
|
|||||||||||
Customer relationships
|
9.4 | $ | 89,145 | $ | 89,145 | ||||||
UtiliQuest trade name
|
-- | 4,700 | 4,700 | ||||||||
Trade names
|
8.2 | 2,860 | 2,860 | ||||||||
Non-compete agreements
|
3.4 | 150 | 150 | ||||||||
96,855 | 96,855 | ||||||||||
Accumulated amortization:
|
|||||||||||
Customer relationships
|
45,852 | 39,601 | |||||||||
Trade names
|
1,182 | 957 | |||||||||
Non-compete agreements
|
48 | 18 | |||||||||
Net Intangible Assets
|
$ | 49,773 | $ | 56,279 |
2013
|
$ | 6,364 |
2014
|
$ | 6,125 |
2015
|
$ | 6,006 |
2016
|
$ | 5,625 |
2017
|
$ | 4,826 |
Thereafter
|
$ | 16,128 |
2012
|
2011
|
2010
|
||||
Terminal growth rate range
|
1.5% - 3.0%
|
1.5% - 3.0%
|
1.0% - 3.0%
|
|||
Discount rate
|
13.0%
|
13.5%
|
15.0%
|
July 28,
|
July 30,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Amounts expected to be paid within one year:
|
||||||||
Accrued auto, general liability and workers' compensation
|
$ | 16,514 | $ | 16,708 | ||||
Accrued employee group health
|
2,867 | 2,728 | ||||||
Accrued damage claims
|
5,837 | 6,656 | ||||||
25,218 | 26,092 | |||||||
Amounts expected to be paid beyond one year:
|
||||||||
Accrued auto, general liability and workers' compensation
|
21,423 | 20,539 | ||||||
Accrued damage claims
|
2,168 | 2,805 | ||||||
23,591 | 23,344 | |||||||
Total accrued insurance claims
|
$ | 48,809 | $ | 49,436 |
July 28,
|
July 30,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Accrued payroll and related taxes
|
$ | 19,248 | $ | 18,959 | ||||
Accrued employee benefit and incentive plan costs
|
12,488 | 9,683 | ||||||
Accrued construction costs
|
11,515 | 11,743 | ||||||
Other current liabilities
|
7,675 | 11,656 | ||||||
Total other accrued liabilities
|
$ | 50,926 | $ | 52,041 |
July 28,
|
July 30,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
7.125% senior subordinated notes due 2021
|
$ | 187,500 | $ | 187,500 | ||||
Capital leases
|
74 | 306 | ||||||
187,574 | 187,806 | |||||||
Less: current portion
|
(74 | ) | (232 | ) | ||||
Long-term debt
|
$ | 187,500 | $ | 187,574 |
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Current:
|
||||||||||||
Federal
|
$ | 11,831 | $ | (3,116 | ) | $ | 2,429 | |||||
State
|
3,478 | 765 | 531 | |||||||||
15,309 | (2,351 | ) | 2,960 | |||||||||
Deferred:
|
||||||||||||
Federal
|
9,392 | 14,375 | 1,895 | |||||||||
Foreign
|
49 | 107 | (40 | ) | ||||||||
State
|
433 | 246 | 66 | |||||||||
9,874 | 14,728 | 1,921 | ||||||||||
Total tax provision
|
$ | 25,183 | $ | 12,377 | $ | 4,881 |
July 28,
|
July 30,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Deferred tax assets:
|
||||||||
Insurance and other reserves
|
$ | 22,014 | $ | 23,396 | ||||
Allowance for doubtful accounts and reserves
|
484 | 708 | ||||||
Net operating loss carryforwards
|
1,473 | 6,907 | ||||||
Other
|
4,378 | 4,333 | ||||||
Total deferred tax assets
|
28,349 | 35,344 | ||||||
Valuation allowance
|
(1,696 | ) | (2,097 | ) | ||||
Deferred tax assets, net of valuation allowance
|
$ | 26,653 | $ | 33,247 | ||||
Deferred tax liabilities:
|
||||||||
Property and equipment
|
$ | 35,832 | $ | 35,935 | ||||
Goodwill and intangibles
|
24,039 | 20,592 | ||||||
Other
|
686 | 686 | ||||||
Deferred tax liabilities
|
$ | 60,557 | $ | 57,213 | ||||
Net deferred tax liabilities
|
$ | (33,904 | ) | $ | (23,966 | ) |
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Statutory rate applied to pre-tax income
|
$ | 22,600 | $ | 9,970 | $ | 3,756 | ||||||
State taxes, net of federal tax benefit
|
2,766 | 659 | 388 | |||||||||
Non-deductible and non-taxable items
|
208 | 1,517 | 1,064 | |||||||||
Change in accruals for uncertain tax positions
|
93 | 53 | (823 | ) | ||||||||
Valuation allowance of deferred tax asset
|
(313 | ) | - | 1,090 | ||||||||
Other items, net
|
(171 | ) | 178 | (594 | ) | |||||||
Total tax provision
|
$ | 25,183 | $ | 12,377 | $ | 4,881 |
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Balance at beginning of year
|
$ | 2,054 | $ | 1,977 | $ | 2,897 | ||||||
Additions based on tax positions related to the fiscal year
|
154 | 226 | 231 | |||||||||
Additions based on tax positions related to prior years
|
6 | 36 | 74 | |||||||||
Reductions related to the expiration of statutes of limitation
|
(20 | ) | (185 | ) | (1,225 | ) | ||||||
Balance at end of year
|
$ | 2,194 | $ | 2,054 | $ | 1,977 |
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Gain on sale of fixed assets
|
$ | 15,430 | $ | 10,216 | $ | 7,677 | ||||||
Miscellaneous income, net
|
395 | 880 | 416 | |||||||||
Total other income, net
|
$ | 15,825 | $ | 11,096 | $ | 8,093 |
·
|
assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers;
|
·
|
if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be inherited by the remaining participating employers; and
|
·
|
if the Company chooses to stop participating in the Multi-Employer Plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
|
Fiscal Year Ended
|
Number of Shares Repurchased
|
Total Consideration
(Dollars in thousands)
|
Average Price Per Share
|
|||||||||
July 31, 2010
|
475,602 | $ | 4,489 | $ | 9.44 | |||||||
July 30, 2011
|
5,389,500 | $ | 64,548 | $ | 11.98 | |||||||
July 28, 2012
|
597,700 | $ | 12,960 | $ | 21.68 |
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Stock-based compensation expense
|
$ | 6,952 | $ | 4,409 | $ | 3,351 | ||||||
Tax benefit recognized in the Statement of Operations
|
$ | 2,412 | $ | 1,284 | $ | 806 |
Fiscal Year Ended
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Weighted average fair value of restricted share units granted
|
$ | 19.49 | $ | 13.60 | $ | 8.56 | ||||||
Weighted average fair value of performance restricted share units granted
|
$ | 19.47 | $ | 10.60 | $ | 12.25 | ||||||
Weighted average fair value of stock options granted
|
$ | 12.51 | $ | 8.15 | $ | 5.06 | ||||||
Stock option assumptions:
|
||||||||||||
Risk-free interest rate
|
1.8 | % | 2.3 | % | 2.7 | % | ||||||
Expected life (years)
|
9.4 | 6.8 | 6.8 | |||||||||
Expected volatility
|
56.1 | % | 58.6 | % | 58.4 | % | ||||||
Expected dividends
|
- | - | - |
Stock Options
|
||||||||||||||||
Shares
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life
|
Aggregate Intrinsic Value
|
|||||||||||||
(In years)
|
(In thousands)
|
|||||||||||||||
Outstanding as of July 30, 2011
|
3,879,555 | $ | 15.91 | |||||||||||||
Granted
|
124,816 | $ | 19.44 | |||||||||||||
Options Exercised
|
(617,103 | ) | $ | 10.52 | ||||||||||||
Forfeited or cancelled
|
(88,521 | ) | $ | 14.95 | ||||||||||||
Outstanding as of July 28, 2012
|
3,298,747 | $ | 17.08 | 5.7 | $ | 15,150 | ||||||||||
Exercisable options as of July 28, 2012
|
1,880,936 | $ | 21.05 | 4.0 | $ | 6,636 |
Restricted Stock
|
||||||||||||||||||
RSUs
|
Performance RSUs
|
|||||||||||||||||
Share Units
|
Weighted Average Grant Price
|
Aggregate Intrinsic Value
|
Share Units
|
Weighted Average Grant Price
|
Aggregate Intrinsic Value
|
|||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Outstanding as of July 30, 2011
|
215,319 | $ | 11.56 | 149,552 | $ | 10.49 | ||||||||||||
Granted
|
95,095 | $ | 19.49 | 721,596 | $ | 19.47 | ||||||||||||
Share Units Vested
|
(81,340 | ) | $ | 12.30 | (17,745 | ) | $ | 10.09 | ||||||||||
Forfeited or cancelled
|
(6,314 | ) | $ | 11.88 | (79,139 | ) | $ | 11.57 | ||||||||||
Outstanding as of July 28, 2012
|
222,760 | $ | 14.49 |
$ 3,938
|
774,264 | $ | 18.76 |
$ 13,689
|
July 28, 2012
|
July 30, 2011
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in millions)
|
||||||||||||||||
CenturyLink
|
$ | 47.6 | 17.7 | % | $ | 41.4 | 18.0 | % | ||||||||
Windstream Corporation
|
$ | 35.4 | 13.2 | % | $ | 20.5 | 8.9 | % | ||||||||
Verizon
|
$ | 30.5 | 11.3 | % | $ | 26.4 | 11.5 | % | ||||||||
AT&T
|
$ | 24.7 | 9.2 | % | $ | 29.2 | 12.7 | % |
Future Minimum
|
|||
Lease Payments
|
|||
(Dollars in thousands)
|
|||
2013
|
$ | 7,636 | |
2014
|
5,567 | ||
2015
|
3,661 | ||
2016
|
2,351 | ||
2017
|
1,291 | ||
Thereafter
|
2,109 | ||
Total
|
$ | 22,615 |
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Fiscal 2012:
|
||||||||||||||||
Revenues
|
$ | 319,575 | $ | 267,407 | $ | 296,103 | $ | 318,034 | ||||||||
Costs of earned revenues, excluding depreciation and amortization
|
$ | 255,187 | $ | 220,239 | $ | 241,386 | $ | 252,137 | ||||||||
Gross profit
|
$ | 64,388 | $ | 47,168 | $ | 54,717 | $ | 65,897 | ||||||||
Net income
|
$ | 12,966 | $ | 3,485 | $ | 9,645 | $ | 13,282 | ||||||||
Earnings per common share - Basic
|
$ | 0.39 | $ | 0.10 | $ | 0.29 | $ | 0.40 | ||||||||
Earnings per common share - Diluted
|
$ | 0.38 | $ | 0.10 | $ | 0.28 | $ | 0.39 | ||||||||
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Fiscal 2011:
|
||||||||||||||||
Revenues
|
$ | 261,584 | $ | 218,203 | $ | 252,363 | $ | 303,719 | ||||||||
Costs of earned revenues, excluding depreciation and amortization
|
$ | 209,322 | $ | 181,621 | $ | 207,045 | $ | 239,132 | ||||||||
Gross profit
|
$ | 52,262 | $ | 36,582 | $ | 45,318 | $ | 64,587 | ||||||||
Net income
|
$ | 6,747 | $ | (5,094 | ) | $ | 1,489 | $ | 12,965 | |||||||
Earnings per common share - Basic
|
$ | 0.18 | $ | (0.14 | ) | $ | 0.04 | $ | 0.38 | |||||||
Earnings per common share - Diluted
|
$ | 0.18 | $ | (0.14 | ) | $ | 0.04 | $ | 0.38 |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED BALANCE SHEET
|
||||||||||||||||||||||||
JULY 28, 2012
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Subsidiary Guarantors
|
Non- Guarantor Subsidiaries
|
Eliminations and Reclassifications
|
Dycom Consolidated
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
CURRENT ASSETS:
|
||||||||||||||||||||||||
Cash and equivalents
|
$ | - | $ | - | $ | 51,563 | $ | 1,018 | $ | - | $ | 52,581 | ||||||||||||
Accounts receivable, net
|
- | - | 140,426 | 1,362 | - | 141,788 | ||||||||||||||||||
Costs and estimated earnings in excess of billings
|
- | - | 125,869 | 1,452 | - | 127,321 | ||||||||||||||||||
Inventories
|
- | - | 26,274 | - | - | 26,274 | ||||||||||||||||||
Deferred tax assets, net
|
2,390 | - | 13,566 | 80 | (403 | ) | 15,633 | |||||||||||||||||
Income taxes receivable
|
4,884 | - | - | - | - | 4,884 | ||||||||||||||||||
Other current assets
|
2,211 | 10 | 5,458 | 787 | - | 8,466 | ||||||||||||||||||
Total current assets
|
9,485 | 10 | 363,156 | 4,699 | (403 | ) | 376,947 | |||||||||||||||||
PROPERTY AND EQUIPMENT, NET
|
9,671 | - | 133,145 | 15,431 | - | 158,247 | ||||||||||||||||||
GOODWILL
|
- | - | 174,849 | - | - | 174,849 | ||||||||||||||||||
INTANGIBLE ASSETS, NET
|
- | - | 49,773 | - | - | 49,773 | ||||||||||||||||||
DEFERRED TAX ASSETS, NET NON-CURRENT
|
- | 65 | 9,341 | 1,085 | (10,491 | ) | - | |||||||||||||||||
INVESTMENT IN SUBSIDIARIES
|
734,451 | 1,425,451 | - | - | (2,159,902 | ) | - | |||||||||||||||||
INTERCOMPANY RECEIVABLES
|
- | - | 860,758 | 54 | (860,812 | ) | - | |||||||||||||||||
OTHER
|
6,075 | 4,338 | 1,731 | 233 | - | 12,377 | ||||||||||||||||||
TOTAL NON-CURRENT ASSETS
|
750,197 | 1,429,854 | 1,229,597 | 16,803 | (3,031,205 | ) | 395,246 | |||||||||||||||||
TOTAL ASSETS
|
$ | 759,682 | $ | 1,429,864 | $ | 1,592,753 | $ | 21,502 | $ | (3,031,608 | ) | $ | 772,193 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
CURRENT LIABILITIES:
|
||||||||||||||||||||||||
Accounts payable
|
$ | 2,785 | $ | - | $ | 33,441 | $ | 597 | $ | - | $ | 36,823 | ||||||||||||
Current portion of debt
|
- | - | 74 | - | - | 74 | ||||||||||||||||||
Billings in excess of costs and estimated earnings
|
- | - | 1,522 | - | - | 1,522 | ||||||||||||||||||
Accrued insurance claims
|
588 | - | 24,551 | 79 | - | 25,218 | ||||||||||||||||||
Deferred tax liabilities
|
- | 249 | 84 | 70 | (403 | ) | - | |||||||||||||||||
Other accrued liabilities
|
5,054 | 565 | 43,772 | 1,535 | - | 50,926 | ||||||||||||||||||
Total current liabilities
|
8,427 | 814 | 103,444 | 2,281 | (403 | ) | 114,563 | |||||||||||||||||
LONG-TERM DEBT
|
- | 187,500 | - | - | - | 187,500 | ||||||||||||||||||
ACCRUED INSURANCE CLAIMS
|
708 | - | 22,815 | 68 | - | 23,591 | ||||||||||||||||||
DEFERRED TAX LIABILITIES, NET NON-CURRENT
|
1,020 | - | 57,140 | 1,868 | (10,491 | ) | 49,537 | |||||||||||||||||
INTERCOMPANY PAYABLES
|
353,713 | 507,099 | - | - | (860,812 | ) | - | |||||||||||||||||
OTHER LIABILITIES
|
2,883 | - | 1,185 | 3 | - | 4,071 | ||||||||||||||||||
Total liabilities
|
366,751 | 695,413 | 184,584 | 4,220 | (871,706 | ) | 379,262 | |||||||||||||||||
Total stockholders' equity
|
392,931 | 734,451 | 1,408,169 | 17,282 | (2,159,902 | ) | 392,931 | |||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 759,682 | $ | 1,429,864 | $ | 1,592,753 | $ | 21,502 | $ | (3,031,608 | ) | $ | 772,193 |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED BALANCE SHEET
|
||||||||||||||||||||||||
JULY 30, 2011
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Subsidiary Guarantors
|
Non- Guarantor Subsidiaries
|
Eliminations and Reclassifications
|
Dycom Consolidated
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
CURRENT ASSETS:
|
||||||||||||||||||||||||
Cash and equivalents
|
$ | - | $ | - | $ | 44,608 | $ | 158 | $ | - | $ | 44,766 | ||||||||||||
Accounts receivable, net
|
- | - | 136,168 | 2,384 | - | 138,552 | ||||||||||||||||||
Costs and estimated earnings in excess of billings
|
- | - | 89,120 | 1,735 | - | 90,855 | ||||||||||||||||||
Inventories
|
- | - | 20,488 | 70 | - | 20,558 | ||||||||||||||||||
Deferred tax assets, net
|
1,458 | - | 14,596 | 168 | (265 | ) | 15,957 | |||||||||||||||||
Income taxes receivable
|
8,685 | - | - | - | - | 8,685 | ||||||||||||||||||
Other current assets
|
2,492 | 9 | 7,505 | 932 | - | 10,938 | ||||||||||||||||||
Total current assets
|
12,635 | 9 | 312,485 | 5,447 | (265 | ) | 330,311 | |||||||||||||||||
PROPERTY AND EQUIPMENT, NET
|
8,880 | - | 119,722 | 21,399 | (562 | ) | 149,439 | |||||||||||||||||
GOODWILL
|
- | - | 174,849 | - | - | 174,849 | ||||||||||||||||||
INTANGIBLE ASSETS, NET
|
- | - | 56,279 | - | - | 56,279 | ||||||||||||||||||
DEFERRED TAX ASSETS, NET NON-CURRENT
|
- | 54 | 8,067 | 179 | (8,300 | ) | - | |||||||||||||||||
INVESTMENT IN SUBSIDIARIES
|
695,073 | 1,373,992 | - | - | (2,069,065 | ) | - | |||||||||||||||||
INTERCOMPANY RECEIVABLES
|
- | - | 859,629 | - | (859,629 | ) | - | |||||||||||||||||
OTHER
|
6,924 | 4,745 | 1,907 | 301 | - | 13,877 | ||||||||||||||||||
TOTAL NON-CURRENT ASSETS
|
710,877 | 1,378,791 | 1,220,453 | 21,879 | (2,937,556 | ) | 394,444 | |||||||||||||||||
TOTAL ASSETS
|
$ | 723,512 | $ | 1,378,800 | $ | 1,532,938 | $ | 27,326 | $ | (2,937,821 | ) | $ | 724,755 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
CURRENT LIABILITIES:
|
||||||||||||||||||||||||
Accounts payable
|
$ | 159 | $ | - | $ | 38,847 | $ | 393 | $ | - | $ | 39,399 | ||||||||||||
Current portion of debt
|
- | - | 232 | - | - | 232 | ||||||||||||||||||
Billings in excess of costs and estimated earnings
|
- | - | 749 | - | - | 749 | ||||||||||||||||||
Accrued insurance claims
|
606 | - | 25,413 | 73 | - | 26,092 | ||||||||||||||||||
Deferred tax liabilities
|
- | 193 | 4 | 68 | (265 | ) | - | |||||||||||||||||
Other accrued liabilities
|
5,651 | 1,106 | 43,340 | 1,944 | - | 52,041 | ||||||||||||||||||
Total current liabilities
|
6,416 | 1,299 | 108,585 | 2,478 | (265 | ) | 118,513 | |||||||||||||||||
LONG-TERM DEBT
|
- | 187,500 | 74 | - | - | 187,574 | ||||||||||||||||||
ACCRUED INSURANCE CLAIMS
|
716 | - | 22,569 | 59 | - | 23,344 | ||||||||||||||||||
DEFERRED TAX LIABILITIES, NET NON-CURRENT
|
737 | - | 45,123 | 2,363 | (8,300 | ) | 39,923 | |||||||||||||||||
INTERCOMPANY PAYABLES
|
361,067 | 494,928 | - | 3,646 | (859,641 | ) | - | |||||||||||||||||
OTHER LIABILITIES
|
2,725 | - | 820 | 5 | - | 3,550 | ||||||||||||||||||
Total liabilities
|
371,661 | 683,727 | 177,171 | 8,551 | (868,206 | ) | 372,904 | |||||||||||||||||
Total stockholders' equity
|
351,851 | 695,073 | 1,355,767 | 18,775 | (2,069,615 | ) | 351,851 | |||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 723,512 | $ | 1,378,800 | $ | 1,532,938 | $ | 27,326 | $ | (2,937,821 | ) | $ | 724,755 |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS
|
||||||||||||||||||||||||
YEAR ENDED JULY 28, 2012
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Subsidiary Guarantors
|
Non- Guarantor Subsidiaries
|
Eliminations and Reclassifications
|
Dycom Consolidated
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||
Contract Revenues
|
$ | - | $ | - | $ | 1,186,380 | $ | 14,739 | $ | - | $ | 1,201,119 | ||||||||||||
EXPENSES:
|
||||||||||||||||||||||||
Costs of earned revenues, excluding depreciation and amortization
|
- | - | 957,449 | 11,500 | - | 968,949 | ||||||||||||||||||
General and administrative
|
28,048 | 574 | 65,185 | 10,217 | - | 104,024 | ||||||||||||||||||
Depreciation and amortization
|
3,137 | - | 54,735 | 4,833 | (12 | ) | 62,693 | |||||||||||||||||
Intercompany charges (income), net
|
(34,212 | ) | - | 33,749 | 463 | - | - | |||||||||||||||||
Total
|
(3,027 | ) | 574 | 1,111,118 | 27,013 | (12 | ) | 1,135,666 | ||||||||||||||||
Interest income (expense), net
|
(3,049 | ) | (13,660 | ) | (8 | ) | - | - | (16,717 | ) | ||||||||||||||
Other income, net
|
22 | - | 15,281 | 522 | - | 15,825 | ||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
- | (14,234 | ) | 90,535 | (11,752 | ) | 12 | 64,561 | ||||||||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES
|
- | (5,550 | ) | 35,299 | (4,566 | ) | - | 25,183 | ||||||||||||||||
NET INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES
|
- | (8,684 | ) | 55,236 | (7,186 | ) | 12 | 39,378 | ||||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
39,378 | 48,062 | - | - | (87,440 | ) | - | |||||||||||||||||
NET INCOME (LOSS)
|
$ | 39,378 | $ | 39,378 | $ | 55,236 | $ | (7,186 | ) | $ | (87,428 | ) | $ | 39,378 |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS
|
||||||||||||||||||||||||
YEAR ENDED JULY 30, 2011
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Subsidiary Guarantors
|
Non-Guarantor Subsidiaries
|
Eliminations and Reclassifications
|
Dycom Consolidated
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||
Contract Revenues
|
$ | - | $ | - | $ | 1,025,484 | $ | 10,384 | $ | - | $ | 1,035,868 | ||||||||||||
EXPENSES:
|
||||||||||||||||||||||||
Costs of earned revenues, excluding depreciation and amortization
|
- | - | 827,980 | 9,139 | - | 837,119 | ||||||||||||||||||
General and administrative
|
23,520 | 648 | 62,174 | 8,280 | - | 94,622 | ||||||||||||||||||
Depreciation and amortization
|
3,192 | - | 54,232 | 5,156 | (47 | ) | 62,533 | |||||||||||||||||
Intercompany charges (income), net
|
(29,852 | ) | - | 29,437 | 415 | - | - | |||||||||||||||||
Total
|
(3,140 | ) | 648 | 973,823 | 22,990 | (47 | ) | 994,274 | ||||||||||||||||
Interest income (expense), net
|
(3,140 | ) | (12,852 | ) | 81 | - | - | (15,911 | ) | |||||||||||||||
Loss on debt extinguishment
|
- | (8,295 | ) | - | - | - | (8,295 | ) | ||||||||||||||||
Other income, net
|
- | - | 10,845 | 251 | - | 11,096 | ||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
- | (21,795 | ) | 62,587 | (12,355 | ) | 47 | 28,484 | ||||||||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES
|
- | (9,430 | ) | 27,142 | (5,335 | ) | - | 12,377 | ||||||||||||||||
NET INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES
|
- | (12,365 | ) | 35,445 | (7,020 | ) | 47 | 16,107 | ||||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
16,107 | 28,472 | - | - | (44,579 | ) | - | |||||||||||||||||
NET INCOME (LOSS)
|
$ | 16,107 | $ | 16,107 | $ | 35,445 | $ | (7,020 | ) | $ | (44,532 | ) | $ | 16,107 |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS
|
||||||||||||||||||||||||
YEAR ENDED JULY 31, 2010
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Subsidiary Guarantors
|
Non-Guarantor Subsidiaries
|
Eliminations and Reclassifications
|
Dycom Consolidated
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||
Contract revenues
|
$ | - | $ | - | $ | 980,082 | $ | 8,541 | $ | - | $ | 988,623 | ||||||||||||
EXPENSES:
|
||||||||||||||||||||||||
Costs of earned revenues, excluding depreciation and amortization
|
- | - | 802,203 | 7,861 | - | 810,064 | ||||||||||||||||||
General and administrative
|
21,659 | 457 | 65,058 | 10,966 | - | 98,140 | ||||||||||||||||||
Depreciation and amortization
|
3,293 | - | 56,368 | 3,991 | (45 | ) | 63,607 | |||||||||||||||||
Intercompany charges (income), net
|
(27,589 | ) | - | 27,026 | 563 | - | - | |||||||||||||||||
Total
|
(2,637 | ) | 457 | 950,655 | 23,381 | (45 | ) | 971,811 | ||||||||||||||||
Interest income (expense), net
|
(2,637 | ) | (11,558 | ) | 20 | - | - | (14,175 | ) | |||||||||||||||
Other income, net
|
- | - | 8,007 | 86 | - | 8,093 | ||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
- | (12,015 | ) | 37,454 | (14,754 | ) | 45 | 10,730 | ||||||||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES
|
1,092 | (5,493 | ) | 16,027 | (6,745 | ) | - | 4,881 | ||||||||||||||||
NET INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES
|
(1,092 | ) | (6,522 | ) | 21,427 | (8,009 | ) | 45 | 5,849 | |||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
6,941 | 13,463 | - | - | (20,404 | ) | - | |||||||||||||||||
NET INCOME (LOSS)
|
$ | 5,849 | $ | 6,941 | $ | 21,427 | $ | (8,009 | ) | $ | (20,359 | ) | $ | 5,849 |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS
|
||||||||||||||||||||||||
YEAR ENDED JULY 28, 2012
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Subsidiary Guarantors
|
Non- Guarantor Subsidiaries
|
Eliminations and Reclassifications
|
Dycom Consolidated
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$ | 6,755 | $ | (8,774 | ) | $ | 69,823 | $ | (2,679 | ) | $ | - | $ | 65,125 | ||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(3,685 | ) | - | (69,362 | ) | (4,565 | ) | - | (77,612 | ) | ||||||||||||||
Proceeds from sale of assets
|
- | - | 19,211 | 5,572 | - | 24,783 | ||||||||||||||||||
Changes in restricted cash
|
926 | - | - | - | - | 926 | ||||||||||||||||||
Capital contributions to subsidiaries
|
- | (4,943 | ) | - | - | 4,943 | - | |||||||||||||||||
Net cash provided by (used in) investing activities
|
(2,759 | ) | (4,943 | ) | (50,151 | ) | 1,007 | 4,943 | (51,903 | ) | ||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||||||
Repurchases of common stock
|
(12,960 | ) | - | - | - | - | (12,960 | ) | ||||||||||||||||
Exercise of stock options and other
|
6,490 | - | - | - | - | 6,490 | ||||||||||||||||||
Restricted stock tax withholdings
|
(329 | ) | - | - | - | - | (329 | ) | ||||||||||||||||
Excess tax benefit from share-based awards
|
1,625 | - | - | - | - | 1,625 | ||||||||||||||||||
Principal payments on capital lease obligations
|
- | - | (233 | ) | - | - | (233 | ) | ||||||||||||||||
Intercompany funding
|
1,178 | 13,717 | (12,484 | ) | 2,532 | (4,943 | ) | - | ||||||||||||||||
Net cash provided by (used in) financing activities
|
(3,996 | ) | 13,717 | (12,717 | ) | 2,532 | (4,943 | ) | (5,407 | ) | ||||||||||||||
Net increase in cash and equivalents
|
- | - | 6,955 | 860 | - | 7,815 | ||||||||||||||||||
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
|
- | - | 44,608 | 158 | - | 44,766 | ||||||||||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD
|
$ | - | $ | - | $ | 51,563 | $ | 1,018 | $ | - | $ | 52,581 |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||||||||||
YEAR ENDED JULY 30, 2011
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Subsidiary Guarantors
|
Non-Guarantor Subsidiaries
|
Eliminations and Reclassifications
|
Dycom Consolidated
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$ | 7,979 | $ | (12,343 | ) | $ | 53,611 | $ | (5,390 | ) | $ | - | $ | 43,857 | ||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(1,746 | ) | - | (53,346 | ) | (6,365 | ) | - | (61,457 | ) | ||||||||||||||
Proceeds from sale of assets
|
- | - | 11,645 | 660 | - | 12,305 | ||||||||||||||||||
Cash paid for acquisitions
|
- | (27,500 | ) | (8,951 | ) | - | - | (36,451 | ) | |||||||||||||||
Changes in restricted cash
|
25 | - | 200 | - | - | 225 | ||||||||||||||||||
Capital contributions to subsidiaries
|
- | (52,492 | ) | - | - | 52,492 | - | |||||||||||||||||
Net used in investing activities
|
(1,721 | ) | (79,992 | ) | (50,452 | ) | (5,705 | ) | 52,492 | (85,378 | ) | |||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||||||
Repurchases of common stock
|
(64,548 | ) | - | - | - | - | (64,548 | ) | ||||||||||||||||
Exercise of stock options and other
|
1,321 | - | - | - | - | 1,321 | ||||||||||||||||||
Restricted stock tax withholdings
|
(197 | ) | - | - | - | - | (197 | ) | ||||||||||||||||
Principal payments on capital lease obligations
|
- | - | (582 | ) | - | - | (582 | ) | ||||||||||||||||
Debt issuance costs
|
(456 | ) | (4,721 | ) | - | - | - | (5,177 | ) | |||||||||||||||
Proceeds from issuance of 7.125% senior subordinated notes due 2021
|
- | 187,500 | - | - | - | 187,500 | ||||||||||||||||||
Purchase of 8.125% senior subordinated notes due 2015
|
- | (135,350 | ) | - | - | - | (135,350 | ) | ||||||||||||||||
Intercompany funding
|
57,622 | 44,906 | (60,827 | ) | 10,791 | (52,492 | ) | - | ||||||||||||||||
Net cash provided by (used in) financing activities
|
(6,258 | ) | 92,335 | (61,409 | ) | 10,791 | (52,492 | ) | (17,033 | ) | ||||||||||||||
Net decrease in cash and equivalents
|
- | - | (58,250 | ) | (304 | ) | - | (58,554 | ) | |||||||||||||||
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
|
- | - | 102,858 | 462 | - | 103,320 | ||||||||||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD
|
$ | - | $ | - | $ | 44,608 | $ | 158 | $ | - | $ | 44,766 |
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||||||||||
YEAR ENDED JULY 31, 2010
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Subsidiary Guarantors
|
Non-Guarantor Subsidiaries
|
Eliminations and Reclassifications
|
Dycom Consolidated
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$ | 1,412 | $ | (6,025 | ) | $ | 62,857 | $ | (4,106 | ) | $ | - | $ | 54,138 | ||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(3,191 | ) | - | (47,248 | ) | (4,937 | ) | - | (55,376 | ) | ||||||||||||||
Proceeds from sale of assets
|
- | - | 8,617 | 151 | - | 8,768 | ||||||||||||||||||
Capital contributions to subsidiaries
|
- | (26,615 | ) | - | - | 26,615 | - | |||||||||||||||||
Net used in investing activities
|
(3,191 | ) | (26,615 | ) | (38,631 | ) | (4,786 | ) | 26,615 | (46,608 | ) | |||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||||||
Repurchases of common stock
|
(4,489 | ) | - | - | - | - | (4,489 | ) | ||||||||||||||||
Exercise of stock options and other
|
33 | - | - | - | - | 33 | ||||||||||||||||||
Restricted stock tax withholdings
|
(274 | ) | - | - | - | - | (274 | ) | ||||||||||||||||
Excess tax benefit from share-based awards
|
69 | - | - | - | - | 69 | ||||||||||||||||||
Principal payments on capital lease obligations
|
- | - | (1,023 | ) | - | - | (1,023 | ) | ||||||||||||||||
Debt issuance costs
|
(3,233 | ) | - | - | - | - | (3,233 | ) | ||||||||||||||||
Intercompany funding
|
9,673 | 32,640 | (24,927 | ) | 9,229 | (26,615 | ) | - | ||||||||||||||||
Net cash provided by (used in) financing activities
|
1,779 | 32,640 | (25,950 | ) | 9,229 | (26,615 | ) | (8,917 | ) | |||||||||||||||
Net increase (decrease) in cash and equivalents
|
- | - | (1,724 | ) | 337 | - | (1,387 | ) | ||||||||||||||||
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
|
- | - | 104,582 | 125 | - | 104,707 | ||||||||||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD
|
$ | - | $ | - | $ | 102,858 | $ | 462 | $ | - | $ | 103,320 |
1.
|
Consolidated financial statements:
|
Page
|
|
33
|
|
34
|
|
35
|
|
36
|
|
37
|
|
63
|
|
64
|
|
65
|
2.
|
Financial statement schedules:
|
3.
|
Exhibits furnished pursuant to the requirements of Form 10-K:
|
3(i)
|
Restated Articles of Incorporation of Dycom Industries, Inc. (incorporated by reference to Dycom Industries, Inc.’s Form 10-Q filed with the SEC on June 11, 2002).
|
3(ii)
|
Amended and Restated By-laws of Dycom Industries, Inc., as amended on February 24, 2009 (incorporated by reference to Dycom Industries, Inc.’s Form 8-K, filed with the SEC on March 2, 2009).
|
4.2
|
Shareholder Rights Agreement, dated April 4, 2001, between Dycom Industries, Inc. and the rights Agent (which includes the Form of Rights Certificate, as Exhibit A, the Summary of Rights to Purchase Preferred Stock, as Exhibit B, and the Form of Articles of Amendment to the Articles of Incorporation for Series A Preferred Stock, as Exhibit C), (incorporated by reference to Dycom Industries, Inc.’s Form 8-A filed with the SEC on April 6, 2001).
|
4.3
|
Stockholders’ Agreement, dated as of January 7, 2002, among Dycom Industries, Inc., Troy Acquisition Corp., Arguss Communications, Inc. and certain stockholders of Arguss Communications, Inc. (incorporated by reference to Dycom Industries, Inc.’s Registration Statement on Form S-4 (File No. 333-81268), filed with the SEC on January 23, 2002).
|
4.4
|
Indenture, dated as of January 21, 2011, among Dycom Investments, Inc., Dycom Industries, Inc. and certain subsidiaries of Dycom Industries, Inc., as guarantors, and U.S. Bank National Association, as trustee (incorporated by reference to Dycom Industries, Inc.’s Form 8-K filed with the SEC on January 24, 2011).
|
10.1*
|
1998 Incentive Stock Option Plan (incorporated by reference to Dycom Industries, Inc.’s Preliminary Proxy Statement filed with the SEC on September 30, 1999).
|
10.2*
|
2003 Long-Term Incentive Plan, amended and restated effective as of September 19, 2011 (incorporated by reference to Dycom Industries, Inc.’s Form 8-K, filed with the SEC on September 23, 2011).
|
10.3*+ | Form of Non-Qualified Stock Option Agreement under the 2003 Long-Term Incentive Plan, as amended and restated. |
10.4*+ | Form of Incentive Stock Option Agreement under the 2003 Long-Term Incentive Plan, as amended and restated. |
10.5*+ | Form of Restricted Stock Unit Agreement under the 2003 Long-Term Incentive Plan, as amended and restated. |
10.6*+ | Form of Performance Unit Agreement under the 2003 Long-Term Incentive Plan, as amended and restated. |
10.7*+ | Form of Non-Employee Director Non-Qualified Stock Option Agreement, under the 2007 Non-Employee Directors Equity Plan, as amended and restated. |
10.8*+ | Form of Non-Employee Director Restricted Stock Unit Agreement, under the 2007 Non-Employee Directors Equity Plan, as amended and restated. |
10.9* | 2007 Non-Employee Directors Equity Plan, amended and restated effective as of September 19, 2011 (incorporated by reference to Dycom Industries, Inc.’s Form 8-K filed with the SEC on September 23, 2011). |
10.10*
|
Employment Agreement for Richard B. Vilsoet dated as of May 5, 2005 (incorporated by reference to Dycom Industries, Inc.’s Form 10-K filed with the SEC on September 9, 2005).
|
10.11*
|
Employment Agreement for H. Andrew DeFerrari dated as of July 14, 2004 (incorporated by reference to Dycom Industries, Inc.’s Form 8-K filed with the SEC on January 23, 2006).
|
10.12*
|
Amendment to the Employment Agreement of H. Andrew DeFerrari dated as of August 25, 2006 (incorporated by reference to Dycom Industries, Inc.’s Form 8-K filed with the SEC on August 31, 2006).
|
DYCOM INDUSTRIES, INC.
|
|||
Registrant
|
|||
Date:
|
September 4, 2012
|
/s/ Steven E. Nielsen
|
|
Name: Steven E. Nielsen
Title: President and Chief Executive Officer
|
Name
|
Position
|
Date
|
/s/
Steven E. Nielsen
|
Chairman of the Board of Directors and Chief Executive Officer
|
September 4, 2012
|
Steven E. Nielsen
|
||
/s/
H. Andrew DeFerrari
|
Senior Vice President and Chief Financial Officer
|
September 4, 2012
|
H. Andrew DeFerrari
|
(Principal Financial and Accounting Officer)
|
|
/s/
Thomas G. Baxter
|
Director
|
September 4, 2012
|
Thomas G. Baxter
|
||
/s/
Charles M. Brennan, III
|
Director
|
September 4, 2012
|
Charles M. Brennan, III
|
||
/s/
Charles B. Coe
|
Director
|
September 4, 2012
|
Charles B. Coe
|
||
/s/
Stephen C. Coley
|
Director
|
September 4, 2012
|
Stephen C. Coley
|
||
/s/
Dwight B. Duke
|
Director
|
September 4, 2012
|
Dwight B. Duke
|
||
/s/
Patricia L. Higgins
|
Director
|
September 4, 2012
|
Patricia L. Higgins
|
DYCOM INDUSTRIES, INC. | ||||
By: | ||||
PARTICIPANT | ||||
<<Name>> | ||||
Number of Stock Options: | Address: | |||
Exercise Price: | $ | |||
Date of Grant: |
DYCOM INDUSTRIES, INC. | ||||
By: | ||||
PARTICIPANT | ||||
<<Name>> | ||||
Number of Stock Options: | Address: | |||
Exercise Price: | $ | |||
Date of Grant: |
1.
|
Definitions; Incorporation of Plan Terms
.
|
2.
|
Grant of RSUs
.
|
3.
|
Vesting of RSUs
.
|
4.
|
Termination of Employment
.
|
5.
|
Nontransferability of the RSUs
.
|
6.
|
Rights as a Stockholder
.
|
7.
|
Taxes and Withholdings
.
|
8.
|
Notices
.
|
9.
|
Successor
.
|
10.
|
Governing Law
.
|
11.
|
Severability
.
|
12.
|
Corporate Changes; Changes in Capitalization
.
|
13.
|
Exchange Act
.
|
14.
|
Compliance with Code Section 409A
.
|
15.
|
Amendment
.
|
16.
|
No Rights to Future Awards or Continued Employment
.
|
17.
|
Entire Agreement
.
|
DYCOM INDUSTRIES, INC. | ||||
By: | ||||
PARTICIPANT | ||||
<<Name>> | ||||
Number of Restricted Stock Units: | Address: | |||
Date of Grant: |
1.
|
Definitions; Incorporation of Plan Terms
.
|
2.
|
Grant of Performance Units
.
|
3.
|
Vesting of Performance Units
.
|
4.
|
Termination of Employment
.
|
5.
|
Nontransferability of the Performance Units
.
|
6.
|
Rights as a Stockholder
.
|
7.
|
Taxes and Withholdings
.
|
8.
|
Notices
.
|
9.
|
Successor
.
|
10.
|
Governing Law
.
|
11.
|
Severability
.
|
12.
|
Corporate Changes; Changes in Capitalization
.
|
14.
|
Exchange Act
.
|
15.
|
Compliance with Code Section 409A
.
|
16.
|
Amendment
.
|
17.
|
No Rights to Future Awards or Continued Employment
.
|
18.
|
Acceptance and Acknowledgement of Award.
|
19.
|
Entire Agreement
.
|
DYCOM INDUSTRIES, INC. | ||||
By: | ||||
PARTICIPANT | ||||
<<Name>> | ||||
Target Number of Performance Units: | Address: | |||
$ | ||||
Date of Grant: |
DYCOM INDUSTRIES, INC. | ||||
By: | ||||
PARTICIPANT | ||||
<<Name>> | ||||
Number of Stock Options: | Address: | |||
Exercise Price: | $ | |||
Date of Grant: |
1.
|
Definitions; Incorporation of Plan Terms
.
|
2.
|
Grant of RSUs
.
|
3.
|
Vesting of RSUs
.
|
4.
|
Nontransferability of the RSUs
.
|
5.
|
Rights as a Stockholder
.
|
6.
|
Deferral Elections
|
7.
|
Notices
.
|
8.
|
Governing Law
.
|
9.
|
Severability
.
|
10.
|
Corporate Changes; Changes in Capitalization
.
|
11.
|
Exchange Act
.
|
12.
|
Compliance with Code Section 409A
.
|
13.
|
Amendment
.
|
14.
|
No Rights to Grants or to Continue as a Director.
|
15.
|
Entire Agreement
.
|
DYCOM INDUSTRIES, INC. | ||||
By: | ||||
PARTICIPANT | ||||
<<Name>> | ||||
Number of Restricted Stock Units: | Address: | |||
Date of Grant: |
Dycom Industries, Inc.
|
||||||||||||||||||||
Computation of Ratio of Earnings to Fixed Charges
|
||||||||||||||||||||
Fiscal Year Ended
|
||||||||||||||||||||
July 28, 2012
|
July 30, 2011
|
July 31, 2010
|
July 25, 2009
|
July 26, 2008
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Earnings, as defined:
|
||||||||||||||||||||
Income (loss) from continuing operations before cumulative effect of changes in accounting principles
|
$ | 39,378 | $ | 16,107 | $ | 5,849 | $ | (53,094 | ) | $ | 24,404 | |||||||||
Income tax expense (benefit)
|
25,183 | 12,377 | 4,881 | (1,405 | ) | 13,180 | ||||||||||||||
Fixed charges included in the determination of net income
|
24,001 | 22,185 | 20,292 | 21,921 | 20,520 | |||||||||||||||
Total earnings, as defined
|
$ | 88,562 | $ | 50,669 | $ | 31,022 | $ | (32,578 | ) | $ | 58,104 | |||||||||
Fixed charges, as defined:
|
||||||||||||||||||||
Interest charges
|
$ | 16,745 | $ | 16,017 | $ | 14,272 | $ | 14,743 | $ | 13,096 | ||||||||||
Rental interest factor
|
7,256 | 6,168 | 6,020 | 7,178 | 7,424 | |||||||||||||||
Total fixed charges, as defined
|
$ | 24,001 | $ | 22,185 | $ | 20,292 | $ | 21,921 | $ | 20,520 | ||||||||||
Ratio of earnings to fixed charges
|
3.7 | x | 2.3 | x | 1.5 | x | ( | *) | 2.8 | x | ||||||||||
*The ratio of earnings to fixed charges was less than one-to-one for fiscal 2009 and earnings were insufficient to cover fixed charges by $76.4 million.
|
Subsidiary
|
Jurisdiction
|
Ansco & Associates, LLC
|
Delaware
|
Broadband Express, LLC
|
Delaware
|
C-2 Utility Contractors of California, Inc.
|
Delaware
|
C-2 Utility Contractors, LLC
|
Delaware
|
Cable Connectors, LLC
|
Delaware
|
CableCom of California, Inc.
|
Delaware
|
CableCom, LLC
|
Delaware
|
Can-Am Communications, Inc.
|
Delaware
|
Cavo Broadband Communications, LLC
|
Delaware
|
CertusView Technologies, LLC
|
Delaware
|
Communication Services, LLC
|
North Carolina
|
Communications Construction Group of California, Inc.
|
Delaware
|
Communications Construction Group, LLC
|
Delaware
|
Dycom Capital Management, Inc.
|
Delaware
|
Dycom Corporate Identity, Inc.
|
Delaware
|
Dycom Identity, LLC
|
Delaware
|
Dycom Investments, Inc.
|
Delaware
|
Ervin Cable Construction, LLC
|
Delaware
|
Globe Communications, LLC
|
North Carolina
|
Ivy H. Smith Company, LLC
|
Delaware
|
Lambert’s Cable Splicing Company, LLC
|
Delaware
|
Locating, Inc.
|
Washington
|
Midtown Express, LLC
|
Delaware
|
NeoCom Solutions, Inc.
|
Georgia
|
Nichols Construction, LLC
|
Delaware
|
Niels Fugal Sons Company of California, Inc.
|
Delaware
|
Niels Fugal Sons Company, LLC
|
Delaware
|
Precision Valley Communications of Vermont, LLC
|
Delaware
|
Prince Telecom, LLC
|
Delaware
|
RJE Telecom of California, Inc.
|
Delaware
|
RJE Telecom, LLC
|
Delaware
|
S.T.S., LLC
|
Tennessee
|
Star Construction, LLC
|
Delaware
|
Stevens Communications, LLC
|
Delaware
|
TCS Communications, LLC
|
Delaware
|
Tesinc of California, Inc.
|
Delaware
|
Tesinc, LLC
|
Delaware
|
Triple-D Communications, LLC
|
Delaware
|
UtiliQuest, LLC
|
Georgia
|
White Mountain Cable Construction, LLC
|
Delaware
|
1.
|
I have reviewed this Annual Report on Form 10-K of Dycom Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this Annual Report on Form 10-K of Dycom Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
1.
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|