Dycom Industries Inc (DY) Reports Solid Fiscal 2024 Third Quarter Results
Organic contract revenue growth of 4.6% year-over-year in Q3.
Non-GAAP Adjusted EBITDA margin improves to 14.7% of contract revenues.
Net income jumps to $83.7 million, with diluted EPS climbing to $2.82.
Year-to-date highlights include a 9.9% organic revenue increase and a net income of $195.5 million.
On November 21, 2023, Dycom Industries Inc (NYSE:DY) released its 8-K filing, announcing financial results for the third quarter ended October 28, 2023. The company reported a robust performance with contract revenues reaching $1.136 billion, marking a 4.6% organic growth compared to the same quarter in the previous year. This growth is attributed to the company's consistent operational execution and strategic initiatives.
Financial Performance Overview
Dycom Industries Inc (NYSE:DY) experienced a notable increase in net income, which surged to $83.7 million, or $2.82 per diluted common share, up from $54.0 million, or $1.80 per diluted common share, in the year-ago quarter. The increase in net income includes the positive impacts of a change order and the closeout of several projects, which contributed approximately $17.5 million to reported net income, or $0.59 per diluted common share.
The company's Non-GAAP Adjusted EBITDA also saw a significant improvement, reaching $166.8 million, or 14.7% of contract revenues, compared to $114.6 million, or 11.0% of contract revenues, in the prior-year quarter. This improvement in profitability metrics underscores Dycom's enhanced operational efficiency and cost management.
Year-to-Date Financial Highlights
For the nine months ended October 28, 2023, Dycom reported contract revenues of $3.223 billion, a 9.9% organic increase from the $2.891 billion reported for the comparable period last year. Net income for the nine-month period was $195.5 million, or $6.58 per diluted common share, compared to $117.4 million, or $3.91 per diluted common share, in the previous year. These figures reflect the company's sustained growth trajectory and its ability to capitalize on market opportunities.
Balance Sheet and Cash Flow Statement Summary
The balance sheet of Dycom Industries Inc (NYSE:DY) as of October 28, 2023, shows total assets of $2.664 billion, with current assets accounting for $1.708 billion. The company's cash and equivalents stood at $15.665 million, a decrease from $224.186 million at the beginning of the fiscal year. Total liabilities were reported at $1.610 billion, with stockholders' equity amounting to $1.053 billion.
The condensed consolidated statements of operations reveal that the costs of earned revenues, excluding depreciation and amortization, were $886.662 million for the quarter, while general and administrative expenses were $87.511 million. Interest expense netted to $13.952 million, and the provision for income taxes was $28.633 million for the quarter.
Forward Outlook
Dycom Industries Inc (NYSE:DY) expects organic contract revenues for the quarter ending January 27, 2024, to align with the revenues for the quarter ended January 28, 2023. The company also anticipates approximately $50 million of acquired contract revenues for the upcoming quarter. Non-GAAP Adjusted EBITDA as a percentage of contract revenues is expected to increase by 75 to 125 basis points compared to the quarter ended January 28, 2023.
The company's management remains focused on delivering operational excellence and financial discipline, positioning Dycom for continued success in the dynamic telecommunications infrastructure and utility industries.
Investors and interested parties are encouraged to review the detailed financial tables and reconciliations provided by the company, which offer a comprehensive view of Dycom's financial standing and performance metrics.
For further details and to participate in the upcoming conference call, stakeholders can access information through the company's Investor Center website.
Dycom Industries Inc (NYSE:DY) continues to demonstrate its ability to navigate the market effectively, delivering solid financial results and maintaining a positive outlook for the future.
Explore the complete 8-K earnings release (here) from Dycom Industries Inc for further details.
This article first appeared on GuruFocus.
