Dycom Industries, Inc. Announces Fiscal 2019 Fourth Quarter And Annual Results And Provides Guidance For The Next Fiscal Quarter
PALM BEACH GARDENS, Fla., Feb. 27, 2019 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter and fiscal year ended January 26, 2019. The Company reported:
-- Contract revenues of $748.6 million for the quarter ended January 26,
2019, compared to $655.1 million for the quarter ended January 27, 2018.
Contract revenues for the quarter ended January 26, 2019 increased 13.7%
on an organic basis after excluding contract revenues of $5.9 million
from an acquired business that was not owned during the comparable prior
period and contract revenues from storm restoration services. Contract
revenues from storm restoration services were $20.4 million for the
quarter ended January 26, 2019 compared to $19.8 million for the quarter
ended January 27, 2018.
-- Non-GAAP Adjusted EBITDA of $59.8 million, or 8.0% of contract revenues,
for the quarter ended January 26, 2019, compared to Non-GAAP Adjusted
EBITDA of $59.6 million, or 9.1% of contract revenues, for the quarter
ended January 27, 2018.
-- On a GAAP basis, net loss was $12.1 million, or a loss of $0.38 per
common share, for the quarter ended January 26, 2019, compared to net
income of $40.1 million, or $1.24 per common share diluted, for the
quarter ended January 27, 2018. Non-GAAP Adjusted Net Income was $3.2
million, or $0.10 per Non-GAAP Adjusted Diluted Share, for the quarter
ended January 26, 2019, compared to Non-GAAP Adjusted Net Income of $3.8
million, or $0.12 per Non-GAAP Adjusted Diluted Share, for the quarter
ended January 27, 2018.
-- One of its customers filed a voluntary petition for reorganization on
February 25, 2019. During the quarter ended January 26, 2019, the
Company recorded a pre-tax non-cash charge of $17.2 million against
approximately $45.0 million of total accounts receivable and contract
assets related to this customer. During the twelve months ended January
26, 2019, the Company's contract revenues from this customer were $113.6
million. The Company looks forward to working with this customer on
collecting the balances owed and continues to provide services to this
customer post-petition.
The Company also reported:
-- Contract revenues of $3.128 billion for the fiscal year ended January
26, 2019, compared to $2.978 billion for the twelve months ended January
27, 2018. Contract revenues for the fiscal year ended January 26, 2019
increased 3.6% on an organic basis after excluding contract revenues
from acquired businesses that were not owned for the entire period in
both the current and comparable prior periods and contract revenues from
storm restoration services. Total contract revenues from acquired
businesses were $69.9 million for the fiscal year ended January 26, 2019
compared to $32.3 million for the twelve months ended January 27, 2018.
Contract revenues from storm restoration services were $42.9 million for
the fiscal year ended January 26, 2019 compared to $35.1 million for the
twelve months ended January 27, 2018, excluding amounts from acquired
businesses.
-- Non-GAAP Adjusted EBITDA of $330.0 million, or 10.5% of contract
revenues, for the fiscal year ended January 26, 2019, compared to
Non-GAAP Adjusted EBITDA of $383.5 million, or 12.9% of contract
revenues, for the twelve months ended January 27, 2018.
-- On a GAAP basis, net income was $62.9 million, or $1.97 per common share
diluted, for the fiscal year ended January 26, 2019, compared to net
income of $151.3 million, or $4.74 per common share diluted, for the
twelve months ended January 27, 2018. Non-GAAP Adjusted Net Income was
$88.5 million, or $2.78 per Non-GAAP Adjusted Diluted Share, for the
fiscal year ended January 26, 2019, compared to Non-GAAP Adjusted Net
Income of $123.5 million, or $3.88 per Non-GAAP Adjusted Diluted Share,
for the twelve months ended January 27, 2018.
Outlook
The Company also announced its outlook for the fiscal quarter ending April 27, 2019. The Company currently expects total contract revenues for the fiscal quarter ending April 27, 2019 to range from $750 million to $800 million. On a GAAP basis, diluted earnings per common share for the fiscal quarter ending April 27, 2019 is expected to range from $0.23 to $0.45. Non-GAAP Adjusted Diluted Earnings per Common Share is expected to range from $0.34 to $0.56. Non-GAAP Adjusted Diluted Earnings per Common Share guidance excludes $4.9 million of pre-tax interest expense, or $0.11 per common diluted share on an after-tax basis, for the non-cash amortization of the debt discount associated with the Company's 0.75% convertible senior notes due September 2021 (the "Notes"). A reconciliation of Non-GAAP Adjusted Diluted Earnings per Common Share guidance provided for the fiscal quarter ending April 27, 2019, along with reconciliations of other Non-GAAP measures, is included within the press release tables. For additional discussion regarding the Company's outlook, please see the presentation materials available on the Company's website posted in connection with the conference call discussed below.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, the Company may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. See Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures in the press release tables that follow.
Conference Call Information and Other Selected Data
A conference call to review the Company's results will be hosted at 9:00 a.m. (ET), Wednesday, February 27, 2019; call (800) 230-1074 (United States) or (612) 288-0329 (International) ten minutes before the conference call begins and ask for the "Dycom Results" conference call. A live webcast of the conference call and related materials will be available on the Company's Investor Center website at https://ir.dycomind.com. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the related materials will be available at https://ir.dycomind.com until Friday, March 29, 2019.
About Dycom Industries, Inc.
Dycom is a leading provider of specialty contracting services throughout the United States. These services include program management, engineering, construction, maintenance and installation services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.
Forward Looking Information
This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarter ending April 27, 2019 found under the "Outlook" and "Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures" sections of this release. Forward-looking statements are based on management's current expectations, estimates and projections. These statements are subject to risks and uncertainties that may cause actual results for completed periods and periods in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. The most significant of these risks and uncertainties are described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) and include business and economic conditions and trends in the telecommunications industry affecting the Company's customers, customer capital budgets and spending priorities, the adequacy of the Company's insurance and other reserves and allowances for doubtful accounts, whether the carrying value of the Company's assets may be impaired, preliminary purchase price allocations of acquired businesses, expected benefits and synergies of acquisitions, the future impact of any acquisitions or dispositions, adjustments and cancellations related to the Company's backlog, weather conditions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, and the other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements.
---Tables Follow---
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
January 26, 2019 January 27,
2018
ASSETS
Current assets:
Cash and equivalents $
128,342 $
84,029
Accounts receivable, net (a) 625,258 318,684
Contract assets (a) 215,849 369,472
Inventories 94,385 79,039
Income tax receivable 3,461 13,852
Other current assets 29,145 39,710
Total current assets 1,096,440 904,786
Property and equipment, net 424,751 414,768
Goodwill and other intangible assets, net 486,874 493,212
Other 89,438 28,190
Total non-current assets 1,001,063 936,170
Total assets $
2,097,503 $
1,840,956
===
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $
119,485 $
92,361
Current portion of debt 5,625 26,469
Contract liabilities 15,125 6,480
Accrued insurance claims 39,961 53,890
Income taxes payable 721 755
Other accrued liabilities 104,074 79,657
Total current liabilities 284,991 259,612
Long-term debt 867,574 733,843
Accrued insurance claims 68,315 59,385
Deferred tax liabilities, net non-current 65,963 57,428
Other liabilities 6,492 5,692
Total liabilities 1,293,335 1,115,960
Total stockholders' equity 804,168 724,996
Total liabilities and stockholders' equity $
2,097,503 $
1,840,956
===
(a) The Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09") effective January 28, 2018, the first day of
fiscal 2019. The adoption of ASU 2014-09 resulted in balance sheet classification changes for amounts that have not been invoiced to customers but for which the Company has
satisfied the performance obligation and has an unconditional right to receive payment. Prior to adoption, amounts not invoiced to customers were included in the Company's contract
asset, historically referred to as Costs and Estimated Earnings in Excess of Billings. Under ASU 2014-09, these amounts of unbilled receivables are included in accounts receivable,
net. As of January 28, 2018, the date of adoption, the Company reclassified $311.7 million of unbilled receivables from contract assets to accounts receivable, net. Upon
reclassification, accounts receivable, net and contract assets were $630.4 million and $57.8 million, respectively, as of January 28, 2018.
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share amounts)
Unaudited
Quarter Quarter Twelve Twelve
Months Months
Ended Ended Ended Ended
January 26, January 27, January 26, January 27,
2019 2018 2019 2018
---
Contract revenues $
748,619 $
655,133 $
3,127,700 $
2,977,874
---
Costs of earned revenues, excluding depreciation and 633,279 540,633 2,562,392 2,369,853
amortization
General and administrative expenses (a) 73,540 60,370 269,140 245,766
Depreciation and amortization 45,909 42,401 179,603 162,708
---
Total 752,728 643,404 3,011,135 2,778,327
---
Interest expense, net (b) (12,447) (9,853) (44,369) (38,677)
Other income, net 1,157 295 15,842 17,061
---
(Loss) income before income taxes (15,399) 2,171 88,038 177,931
(Benefit) provision for income taxes (c) (3,345) (37,888) 25,131 26,592
Net (loss) income $
(12,054) $
40,059 $
62,907 $
151,339
===
(Loss) earnings per common share:
Basic (loss) earnings per common share $
(0.38) $
1.29 $
2.01 $
4.86
===
Diluted (loss) earnings per common share $
(0.38) $
1.24 $
1.97 $
4.74
===
Shares used in computing earnings per common share:
Basic 31,359,765 31,056,840 31,250,376 31,140,119
===
Diluted (d)(e) 31,359,765 32,218,324 31,990,168 31,921,254
===
(a) Includes stock-based compensation
expense of $1.9 million and $5.9 million
for the quarters ended January 26, 2019
and January 27, 2018, respectively, and
$20.2 million and $23.1 million for the
twelve months ended January 26, 2019 and
January 27, 2018, respectively. In
addition, for the quarter and twelve
months ended January 26, 2019 general and
administrative expenses include a $17.2
million pre-tax non-cash charge for
accounts receivable and contract assets
related to balances owed from a customer.
On February 25, 2019, this customer filed
a voluntary petition for reorganization.
(b) Includes pre-tax interest expense for
non-cash amortization of the debt
discount associated with the Notes of
approximately $4.9 million and $4.6
million for the quarters ended January 26,
2019 and January 27, 2018, respectively,
and approximately $19.1 million and $18.1
million for the twelve months ended
January 26, 2019 and January 27, 2018,
respectively.
(c) During the quarter and twelve months
ended January 26, 2019, the (benefit)
provision for income taxes includes
approximately $0.4 million of income tax
expense and $0.2 million of income tax
benefit, respectively, for the tax effects
of the vesting and exercise of share-
based awards. During the quarter and
twelve months ended January 27, 2018, the
(benefit) provision for income taxes
includes approximately $32.2 million of
income tax benefit resulting from the Tax
Cuts and Jobs Act of 2017 ("Tax Reform"),
primarily due to the re-measurement of
the Company's net deferred tax liabilities
at a lower U.S. federal corporate income
tax rate. It also includes approximately
$6.9 million and $7.8 million for the
quarter and twelve months ended January
27, 2018, respectively, of income tax
benefit for the tax effects of the vesting
and exercise of share-based awards.
(d) During the first and second quarter of
fiscal 2019 and the quarter ended January
27, 2018, the Company's average stock
price exceeded the $96.89 conversion price
of its Notes. As a result, diluted shares
used in computing diluted earnings per
common share for fiscal 2019, the quarter
ended January 27, 2018, and the twelve
months ended January 27, 2018 include
approximately 0.2 million, 0.4 million,
and 0.1 million, respectively, of
potential dilution from the embedded
conversion feature in the Notes.
(e) Diluted shares for the quarter ended
January 26, 2019 exclude common stock
equivalents related to share-based awards
as their effect would be anti-dilutive.
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES
(Dollars in thousands)
Unaudited
CONTRACT REVENUES, NON-GAAP ORGANIC CONTRACT REVENUES, AND GROWTH %'s
Contract Revenues Revenues Non-GAAP GAAP Non-GAAP -
Revenues - from from storm Organic
GAAP acquired restoration -Organic -Growth Growth %
businesses (a) services Contract %
Revenues
---
Quarter Ended January 26, 2019 $
748,619 $
(5,885) $
(20,409) $
722,325 14.3% 13.7%
Quarter Ended January 27, 2018 $
655,133
$ $
(19,818) $
635,315
Twelve Months Ended January 26, 2019 $
3,127,700 $
(69,949) $
(42,888) $
3,014,863 5.0% 3.6%
Twelve Months Ended January 27, 2018 $
2,977,874 $
(32,311) $
(35,058) $
2,910,505
(a) Amounts for the quarters and twelve months ended January 26, 2019 and January 27, 2018 represent contract revenues from acquired businesses that were not owned for the full period in both the current and comparable prior periods, including any contract revenues from storm restoration services for these acquired businesses.
NON-GAAP ADJUSTED EBITDA
Quarter Quarter Twelve Twelve
Months Months
Ended Ended Ended Ended
January 26, January 27, January 26, January 27,
2019 2018 2018
2019
Reconciliation of net income to Non-GAAP Adjusted EBITDA:
Net (loss) income $
(12,054) $
40,059 $
62,907 $
151,339
Interest expense, net 12,447 9,853 44,369 38,677
(Benefit) provision for income taxes (3,345) (37,888) 25,131 26,592
Depreciation and amortization 45,909 42,401 179,603 162,708
Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") 42,957 54,425 312,010 379,316
Gain on sale of fixed assets (2,192) (722) (19,390) (18,911)
Stock-based compensation expense 1,910 5,897 20,187 23,066
Non-cash charge for accounts receivable and contract assets 17,157 17,157
Non-GAAP Adjusted EBITDA $
59,832 $
59,600 $
329,964 $
383,471
Contract revenues $
748,619 $
655,133 $
3,127,700 $
2,977,874
Non-GAAP Adjusted EBITDA % of contract revenues 8.0% 9.1% 10.5% 12.9%
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)
(Dollars in thousands, except share amounts)
Unaudited
NET INCOME, NON-GAAP ADJUSTED NET INCOME, DILUTED EARNINGS PER COMMON SHARE, NON-GAAP ADJUSTED DILUTED EARNINGS PER COMMON SHARE, AND NON-GAAP ADJUSTED DILUTED SHARES
Quarter Quarter Twelve Twelve
Months Months
Ended Ended Ended Ended
January 26, January 27, January 26, January 27,
2019 2018 2019 2018
Reconciliation of Non-GAAP Adjusted Net Income:
Net (loss) income $
(12,054) $
40,059 $
62,907 $
151,339
Pre-Tax Adjustments:
Non-cash amortization of debt discount on Notes 4,881 4,623 19,103 18,095
Non-cash charge for accounts receivable and contract assets (a) 17,157 17,157 -
Impact on stock-based compensation expense from non-cash charge for accounts receivable and
contract assets (b) (1,851) (1,851) -
Tax Adjustments:
Tax impact of Tax Reform (c) (32,249) (32,249)
Tax impact of share-based award activities (d) 371 (6,912) 371 (6,912)
Tax impact of pre-tax adjustments (5,257) (1,757) (9,168) (6,804)
Total adjustments, net of tax 15,301 (36,295) 25,612 (27,870)
Non-GAAP Adjusted Net Income $
3,247 $
3,764 $
88,519 $
123,469
Reconciliation of Non-GAAP Adjusted Diluted Earnings per Common Share:
Diluted (loss) earnings per common share - GAAP $
(0.38) $
1.24 $
1.97 $
4.74
Total adjustments, net of tax and dilutive share effect of Notes (e)(f) 0.49 (1.12) 0.82 (0.86)
Non-GAAP Adjusted Diluted Earnings per Common Share $
0.10 $
0.12 $
2.78 $
3.88
Shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share:
Diluted shares - GAAP (f) 31,359,765 32,218,324 31,990,168 31,921,254
Adjustment for economic benefit of note hedge related to Notes (e) (434,788) (183,799) (108,697)
Adjustment for dilutive common stock equivalents (f) 418,695 -
Non-GAAP Adjusted Diluted Shares (e) 31,778,460 31,783,536 31,806,369 31,812,557
(a) During the quarter and twelve months
ended January 26, 2019, the Company
recognized a pre-tax non-cash charge for
accounts receivable and contract assets of
$17.2 million related to balances owed
from a customer. On February 25, 2019,
this customer filed a voluntary petition
for reorganization.
(b) As a result of the pre-tax non-cash
charge for accounts receivable and
contract assets recognized during the
quarter ended January 26, 2019, the
Company's stock-based compensation
expense was reduced by approximately $1.9
million for the quarter and twelve months
ended January 26, 2019.
(c) During the quarter and twelve months
ended January 27, 2018, the Company
recognized an income tax benefit of
approximately $32.2 million resulting from
Tax Reform, primarily due to the re-
measurement of the Company's net deferred
tax liabilities at a lower U.S. federal
corporate income tax rate.
(d) During the quarter and twelve months
ended January 26, 2019, the Company
excluded income tax expense of
approximately $0.4 million for the tax
effects of the vesting and exercise of
share-based awards from its Non-GAAP
Adjusted Net Income and Non-GAAP Adjusted
Diluted Earnings per Common Share. During
the quarter and twelve months ended
January 27, 2018, the Company excluded
income tax benefit of approximately $6.9
million for the tax effects of the vesting
and exercise of share-based awards from
its Non-GAAP Adjusted Net Income and Non-
GAAP Adjusted Diluted Earnings per Common
Share.
(e) The Company has a note hedge in effect
to offset the economic dilution of
additional shares from the Notes up to an
average quarterly share price of $130.43
per share. Non-GAAP Adjusted Diluted
Shares exclude the GAAP dilutive share
effect of the Notes.
(f) GAAP diluted shares excludes 418,695
common stock equivalents related to share-
based awards as their effect would be
anti-dilutive. Non-GAAP Adjusted Diluted
Shares includes the dilutive effect of
these additional shares.
Amounts in table above may not add due to
rounding.
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES
(CONTINUED)
Unaudited
OUTLOOK - DILUTED EARNINGS PER COMMON
SHARE AND NON-GAAP ADJUSTED DILUTED
EARNINGS PER COMMON SHARE
Quarter
Ending
April 27,
2019
GAAP Diluted
Earnings per
common share
$0.23 - $0.45
Adjustment
Addback of after-
tax non-cash
amortization of
debt discount on
Notes (a) 0.11
Non-GAAP Adjusted
Diluted Earnings
per Common Share
$0.34 - $0.56
Diluted shares (in
millions) 31.8
(a) The Company expects to recognize
approximately $4.9 million in pre-tax
interest expense during the quarter
ending April 27, 2019 for the non-cash
amortization of the debt discount
associated with the Notes.
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)
Explanation of Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company's quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company believes that the presentation of certain Non-GAAP financial measures in these materials provides information that is useful to investors because it allows for a more direct comparison of the Company's performance for the period reported with the Company's performance in prior periods. The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results. Management defines the Non-GAAP financial measures used in this release as follows:
-- Non-GAAP Organic Contract Revenues - contract revenues from businesses
that are included for the entire period in both the current and
comparable prior periods, excluding contract revenues from storm
restoration services. Non-GAAP Organic Contract Revenue growth is
calculated as the percentage change in Non-GAAP Organic Contract
Revenues over those of the comparable prior year periods. Management
believes organic growth is a helpful measure for comparing the Company's
revenue performance with prior periods.
-- Non-GAAP Adjusted EBITDA - net income (loss) before interest, taxes,
depreciation and amortization, gain on sale of fixed assets, stock-based
compensation expense, and certain non-recurring items. Management
believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the
Company's operating performance with prior periods as well as with the
performance of other companies with different capital structures or tax
rates.
-- Non-GAAP Adjusted Net Income - GAAP net income (loss) before the
non-cash amortization of the debt discount and the related tax impact,
certain tax impacts resulting from vesting and exercise of share-based
awards, certain impacts of Tax Reform, and certain non-recurring items.
-- Non-GAAP Adjusted Diluted Earnings per Common Share and Non-GAAP
Adjusted Diluted Shares - Non-GAAP Adjusted Net Income divided by
Non-GAAP Adjusted Diluted Shares outstanding. The Company has a note
hedge in effect to offset the economic dilution of additional shares
from the Notes up to an average quarterly share price of $130.43. The
measure of Non-GAAP Adjusted Diluted shares used in computing Non-GAAP
Adjusted Diluted Earnings per Common Share excludes dilution from the
Notes. Management believes that the calculation of Non-GAAP Adjusted
Diluted shares to reflect the note hedge will be useful to investors
because it provides insight into the offsetting economic effect of the
hedge against potential conversion of the Notes.
Management excludes or adjusts each of the items identified below from Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings per Common Share:
-- Non-cash amortization of the debt discount - The Company's Notes were
allocated between debt and equity components. The difference between the
principal amount and the carrying amount of the liability component of
the Notes represents a debt discount. The debt discount is being
amortized over the term of the Notes but does not result in periodic
cash interest payments. The Company has excluded the non-cash
amortization of the debt discount from its Non-GAAP financial measures
because it believes it is useful to analyze the component of interest
expense for the Notes that will be paid in cash. The exclusion of the
non-cash amortization from the Company's Non-GAAP financial measures
provides management with a consistent measure for assessing financial
results.
-- Non-cash charge for accounts receivable and contract assets - During the
quarter and twelve months ended January 26, 2019, the Company recognized
a pre-tax non-cash charge for accounts receivable and contract assets of
$17.2 million related to balances owed from a customer. On February 25,
2019, this customer filed a voluntary petition for reorganization. The
Company excludes the impact of this non-cash charge for accounts
receivable and contract assets from its Non-GAAP financial measures
because the Company believes it is not indicative of its underlying
results or ongoing operations.
-- Impact on stock-based compensation expense from non-cash charge for
accounts receivable and contract assets - The Company excludes the
impact on stock-based compensation expense from the non-cash charge for
accounts receivable and contract assets from its Non-GAAP financial
measures because the Company believes it is not indicative of its
underlying results or ongoing operations.
-- Tax impact from Tax Reform - During the quarter and twelve months ended
January 27, 2018, the Company recognized an income tax benefit of
approximately $32.2 million resulting from Tax Reform, primarily due to
a reduction of net deferred tax liabilities. The Company has excluded
this impact because it is a significant change in the U.S. federal
corporate tax rate and because the Company believes it is not indicative
of the Company's underlying results or ongoing operations.
-- Tax impact of excess tax benefits or deficiencies - The Company excludes
certain tax impacts resulting from the vesting and exercise of
share-based awards as these amounts may vary significantly from period
to period. Excluding these amounts from the Company's Non-GAAP financial
measures provides management with a more consistent measure for
assessing financial results.
-- Tax impact of adjusted results - The tax impact of adjusted results
reflects the Company's estimated tax impact of specific adjustments and
the effective tax rate used for financial planning for the applicable
period.
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SOURCE Dycom Industries, Inc.
