dy-20230729

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 29, 2023

☐ 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.)

11780 US Highway 1, Suite 600

Palm Beach Gardens,

33408

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (561) 627-7171

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common stock, par value $0.33 1/3 per share

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 29,333,411 shares of common stock with a par value of $0.33 1/3 outstanding at August 22, 2023.

Dycom Industries, Inc.

Table of Contents



PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	40

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 5.	Other Information	41
Item 6.	Exhibits	42

SIGNATURES		43

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Table of Contents

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share amounts)

(Unaudited)


	July 29, 2023		January 28, 2023
ASSETS
Current assets:
Cash and equivalents	$	83,377	$	224,186
Accounts receivable, net (Note 5)	1,214,450		1,067,013
Contract assets	77,254		43,932
Inventories	117,225		114,972
Income tax receivable	10,659		3,929
Other current assets	52,282		38,648
Total current assets	1,555,247		1,492,680

Property and equipment, net	393,233		367,852
Operating lease right-of-use assets	72,790		67,240
Goodwill	272,545		272,545
Intangible assets, net	79,587		86,566
Other assets	22,199		26,371

Total assets	$	2,395,601	$	2,313,254

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	204,776	$	207,739
Current portion of debt	17,500		17,500
Contract liabilities	20,864		19,512
Accrued insurance claims	45,225		41,043
Operating lease liabilities	29,348		27,527
Income taxes payable	—		14,896
Other accrued liabilities	141,733		141,334
Total current liabilities	459,446		469,551

Long-term debt	799,395		807,367
Accrued insurance claims - non-current	49,293		49,347
Operating lease liabilities - non-current	43,213		39,628
Deferred tax liabilities, net - non-current	61,177		60,205
Other liabilities	19,031		18,401
Total liabilities	1,431,555		1,444,499

COMMITMENTS AND CONTINGENCIES (Note 19)

Stockholders’ equity:
Preferred stock, par value $1.00 per share: 1,000,000 shares authorized: no shares issued and outstanding	—		—
Common stock, par value $0.33 1/3 per share: 150,000,000 shares authorized: 29,332,495 and 29,350,021 issued and outstanding, respectively	9,777		9,783
Additional paid-in capital	12,982		5,654
Accumulated other comprehensive loss	(1,546)		(1,771)
Retained earnings	942,833		855,089
Total stockholders’ equity	964,046		868,755
Total liabilities and stockholders’ equity	$	2,395,601	$	2,313,254

See notes to the condensed consolidated financial statements.

Table of Contents

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except share amounts)

(Unaudited)


	For the Three Months Ended
	July 29, 2023		July 30, 2022

Contract revenues	$	1,041,535	$	972,273


Costs of earned revenues, excluding depreciation and amortization	830,409		797,980
General and administrative	84,832		73,336
Depreciation and amortization	37,993		35,345

Total	953,234		906,661

Interest expense, net	(12,277)		(9,347)

Other income, net	5,731		2,587
Income before income taxes	81,755		58,852




Provision for income taxes	21,509		14,996

Net income	$	60,246	$	43,856

Earnings per common share:
Basic earnings per common share	$	2.05	$	1.48

Diluted earnings per common share	$	2.03	$	1.46

Shares used in computing earnings per common share:
Basic	29,328,218		29,540,174

Diluted	29,610,946		29,943,422

See notes to the condensed consolidated financial statements.

Table of Contents

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

SEC Form 10-Q filed by Dycom Industries Inc.