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Oct 30, 2021

Dycom Q3 2022 Earnings Report

Dycom's Q3 2022 results were announced, showcasing revenue growth and strategic financial maneuvers.

Key Takeaways

Dycom Industries reported a revenue increase of 5.4% to $854.0 million for the quarter ended October 30, 2021. Net income was $28.7 million, or $0.94 per diluted share, compared to $33.9 million, or $1.05 per diluted share, for the quarter ended October 24, 2020. The company also repaid $58.3 million in convertible senior notes at maturity.

Contract revenues increased to $854.0 million, a 5.4% increase compared to the same period last year.

Net income decreased to $28.7 million, or $0.94 per diluted share, compared to $33.9 million, or $1.05 per diluted share, in the prior year.

Non-GAAP Adjusted EBITDA was $83.1 million, representing 9.7% of contract revenues.

The company successfully repaid $58.3 million in convertible senior notes at maturity.

Total Revenue
$854M
Previous year: $810M
+5.4%
EPS
$0.95
Previous year: $1.06
-10.4%
Gross Profit
$148M
Previous year: $152M
-2.5%
Cash and Equivalents
$264M
Previous year: $12M
+2090.9%
Free Cash Flow
$59.2M
Previous year: $103M
-42.3%
Total Assets
$2.2B
Previous year: $2.07B
+6.8%

Dycom

Dycom

Forward Guidance

The Company expects contract revenues for the quarter ending January 29, 2022 to increase modestly from Non-GAAP Organic Contract Revenues of $691.8 million for the quarter ended January 30, 2021. Non-GAAP Adjusted EBITDA is expected to range from in-line to modestly higher as a percentage of contract revenues for the quarter ending January 29, 2022 as compared to the quarter ended January 30, 2021.

Positive Outlook

  • Contract revenues expected to increase modestly.
  • Non-GAAP Adjusted EBITDA expected to range from in-line to modestly higher.
  • Strategic financial maneuvers completed.
  • Leading provider of specialty contracting services.
  • Focus on telecommunications, electric, and gas utilities.

Challenges Ahead

  • Subject to risks and uncertainties.
  • Impact of a pandemic caused by COVID-19.
  • Customer capital budgets and spending priorities.
  • Availability and cost of materials, equipment and labor.
  • Restrictions imposed by the Company’s credit agreement.