Dycom Industries Inc (DY) Reports Mixed Fiscal 2024 Q4 and Annual Results
Contract Revenues: Increased to $952.5 million in Q4, up 3.8% year-over-year.
Organic Revenue: Decreased by 2.5% in Q4 after adjusting for acquisitions.
Adjusted EBITDA: Rose to $93.7 million in Q4, representing 9.8% of contract revenues.
Net Income: Q4 net income was $23.4 million, a slight decrease from $24.8 million in the prior year.
Annual Performance: Fiscal year contract revenues grew 9.6% to $4.176 billion, with net income increasing to $218.9 million.
Stock Repurchase: DY repurchased 260,000 shares in Q4 and 485,000 shares during the fiscal year.
Outlook: Expects organic contract revenues for the next quarter to be in-line or slightly lower year-over-year.
On February 28, 2024, Dycom Industries Inc (NYSE:DY) released its 8-K filing, announcing the financial results for the fourth quarter and fiscal year ended January 27, 2024. The company, a leading provider of specialty contracting services to the telecommunications and utility industries, reported a mixed set of results with an increase in contract revenues but a slight decline in net income for the quarter.
Fiscal Summary
Dycom Industries Inc (NYSE:DY) saw its contract revenues for the fourth quarter rise to $952.5 million, a 3.8% increase compared to $917.5 million in the year-ago quarter. However, when adjusting for the impact of an acquired business, organic revenues actually decreased by 2.5%. Despite this, the company's Non-GAAP Adjusted EBITDA improved to $93.7 million, or 9.8% of contract revenues, up from $83.1 million, or 9.1% of contract revenues, in the same quarter of the previous year.
Net income for the quarter was reported at $23.4 million, or $0.79 per diluted common share, a slight decrease from $24.8 million, or $0.83 per diluted common share, in the year-ago quarter. For the full fiscal year, contract revenues increased by 9.6% to $4.176 billion, with net income significantly increasing to $218.9 million, or $7.37 per diluted common share, compared to $142.2 million, or $4.74 per diluted common share, in the previous year.
Financial Achievements and Challenges
The company's financial achievements, particularly the growth in annual contract revenues and net income, underscore the demand for its specialty contracting services within the telecommunications and utility sectors. The increase in Adjusted EBITDA as a percentage of contract revenues indicates improved operational efficiency. However, the decline in organic revenue growth poses a challenge, potentially signaling market saturation or competitive pressures.
Dycom Industries Inc (NYSE:DY) also continued its share repurchase program, buying back 260,000 shares during the quarter at an average price of $112.93 per share, and 485,000 shares throughout the fiscal year at an average price of $102.39 per share. This reflects the company's confidence in its long-term value proposition.
Looking Ahead
Looking forward, Dycom anticipates organic contract revenues for the quarter ending April 27, 2024, to be in-line or slightly lower as a percentage compared to the same quarter in the previous year. However, the company expects to see an increase in Non-GAAP Adjusted EBITDA as a percentage of contract revenues for the upcoming quarter and anticipates organic revenue growth to resume in the quarter ending July 27, 2024.
The company's balance sheet remains solid with cash and equivalents of $101.1 million as of January 27, 2024. Long-term debt stands at $791.4 million, reflecting the company's capital structure and ongoing investments in its business operations.
Investors and stakeholders will be watching closely to see how Dycom navigates the challenges ahead and capitalizes on the opportunities within the dynamic telecommunications and utility industries.
For more detailed information, investors are encouraged to review the full earnings release and financial statements, as well as participate in the earnings call or access the webcast and accompanying slide presentation provided by the company.
Dycom's performance and strategic initiatives will continue to be monitored by value investors seeking to understand the company's position within the market and its potential for long-term growth.
Explore the complete 8-K earnings release (here) from Dycom Industries Inc for further details.
This article first appeared on GuruFocus.
