<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1995
OR
[ ] 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 0-5423
DYCOM INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Florida 59-1277135
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
450 Australian Avenue, South, West Palm Beach, Florida 33401
(Address of principal executive office) (Zip Code)
(407) 659-6301
(Registrant's telephone number, including area code)
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 the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding as of December 7, 1995
_____ __________________________________
Common Stock, par value $0.33 1/3 8,551,931
<PAGE> 2
DYCOM INDUSTRIES, INC.
INDEX
<TABLE>
<CAPTION>
Page No.
________
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets-
October 31, 1995 and July 31, 1995 3
Condensed Consolidated Statements of
Operations for the Three Months Ended
October 31, 1995 and 1994 4
Condensed Consolidated Statements of
Cash Flows for the Three Months Ended
October 31, 1995 and 1994 5-6
Notes to Condensed Consolidated
Financial Statements 7-11
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 12-14
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURES 16
EXHIBIT INDEX 17
</TABLE>
<PAGE> 3
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
October 31, July 31,
1995 1995
____ ____
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 6,218,800 $ 4,306,675
Accounts receivable, net 12,579,133 16,330,477
Costs and estimated earnings in
excess of billings 6,589,468 5,223,425
Deferred tax assets 1,006,767 385,755
Other current assets 1,240,641 1,396,201
------------ ------------
Total current assets 27,634,809 27,642,533
------------ ------------
PROPERTY AND EQUIPMENT, net 18,172,910 18,802,563
------------ ------------
OTHER ASSETS:
Intangible assets, net 4,955,762 4,994,535
Other 359,503 353,227
------------ ------------
Total other assets 5,315,265 5,347,762
------------ ------------
TOTAL $ 51,122,984 $ 51,792,858
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3,813,493 $ 5,607,567
Notes payable 4,828,330 4,955,080
Billings in excess of costs and
estimated earnings 100,951
Accrued self-insured claims 2,811,291 2,266,855
Income taxes payable 1,404,744 621,483
Other accrued liabilities 6,675,472 6,585,387
------------ ------------
Total current liabilities 19,533,330 20,137,323
NOTES PAYABLE 12,347,233 13,870,064
ACCRUED SELF-INSURED CLAIMS 6,859,706 6,598,372
DEFERRED TAX LIABILITIES 203,970
------------ ------------
Total liabilities 38,944,239 40,605,759
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, par value $.33 1/3 per share:
50,000,000 shares authorized; 8,550,706
and 8,543,990 shares issued and
outstanding, respectively 2,850,236 2,847,997
Additional paid-in capital 24,314,078 24,293,309
Retained deficit (14,985,569) (15,954,207)
------------ ------------
Total stockholders' equity 12,178,745 11,187,099
------------ ------------
TOTAL $ 51,122,984 $ 51,792,858
============= ============
See notes to condensed consolidated financial statements--unaudited.
</TABLE>
<PAGE> 4
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
___________________________
October 31, October 31,
1995 1994
____ ____
<S> <C> <C>
REVENUES:
Contract revenues earned $ 37,365,990 $ 36,211,934
Other, net 239,593 210,665
------------ ------------
Total 37,605,583 36,422,599
------------ ------------
EXPENSES:
Costs of earned revenues
excluding depreciation 30,615,519 29,219,654
General and administrative 3,898,159 3,505,655
Depreciation and amortization 1,376,420 1,749,087
------------ ------------
Total 35,890,098 34,474,396
------------ ------------
INCOME BEFORE INCOME TAXES 1,715,485 1,948,203
------------ ------------
PROVISION (BENEFIT) FOR INCOME TAXES:
Current 1,163,888 1,008,976
Deferred (417,041)
------------ ------------
Total 746,847 1,008,976
------------ ------------
NET INCOME $ 968,638 $ 939,227
============ ============
NET INCOME PER COMMON SHARE $ 0.11 $ 0.11
====== ======
See notes to condensed consolidated financial statements--unaudited.
</TABLE>
<PAGE> 5
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
___________________________
October 31, October 31,
1995 1994
____ ____
<S> <C> <C>
Increase (Decrease) in Cash and equivalents from:
OPERATING ACTIVITIES:
Net income $ 968,638 $ 939,227
Adjustments to reconcile net cash provided
by operating activities:
Depreciation and amortization 1,376,420 1,749,087
Gain on disposal of assets (144,033) (40,616)
Deferred income taxes (417,041)
Changes in assets and liabilities:
Accounts receivable, net 3,751,344 (1,615,880)
Unbilled revenues, net (1,466,994) (862,803)
Other current assets 155,560 (4,015)
Other assets (6,276) 68,745
Accounts payable (1,794,074) 1,165,415
Accrued self-insured claims and
other liabilities 895,898 (3,078)
Accrued income taxes 783,261 1,008,976
------------ ------------
Net cash inflow from operating activities 4,102,703 2,405,058
------------ ------------
INVESTING ACTIVITIES:
Capital expenditures (943,240) (1,783,750)
Proceeds from sales of assets 379,235 303,224
------------ ------------
Net cash outflow from investing activities (564,005) (1,480,526)
------------ ------------
FINANCING ACTIVITIES:
Borrowing on bank lines-of-credit 500,000
Principal payments on notes payable
and bank lines-of-credit (1,649,581) (1,232,236)
Exercise of stock options 23,008
------------ ------------
Net cash outflow from financing activities (1,626,573) (732,236)
------------ ------------
NET CASH INFLOW FROM ALL ACTIVITIES 1,912,125 192,296
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 4,306,675 2,625,783
------------ ------------
CASH AND EQUIVALENTS AT END OF PERIOD $ 6,218,800 $ 2,818,079
============ ============
See notes to condensed consolidated financial statements--unaudited.
</TABLE>
<PAGE> 6
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
___________________________
October 31, October 31,
1995 1994
____ ____
<S> <C> <C>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Cash paid during the period for:
Interest $ 445,161 $ 475,424
Income taxes 392,005 115,351
See notes to condensed consolidated financial statements--unaudited.
</TABLE>
<PAGE> 7
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS--Unaudited
1. The accompanying condensed consolidated balance sheets of Dycom
Industries, Inc. ("Dycom" or the "Company") as of October 31, 1995 and July
31, 1995, the related condensed consolidated statements of operations for
the three months ended October 31, 1995 and 1994 and the condensed
consolidated statements of cash flows for the three months ended October 31,
1995 and 1994 reflect all normal recurring adjustments which are, in the
opinion of management, necessary for a fair presentation of such statements.
The results of operations for the three months ended October 31, 1995 are not
necessarily indicative of the results which may be expected for the entire
year.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF CONSOLIDATION-- The condensed consolidated financial statements
include Dycom Industries, Inc. and its subsidiaries, all of which are
wholly-owned. The Company's operations consist primarily of
telecommunication and utility services contracting. All material
intercompany accounts and transactions have been eliminated.
REVENUE-- Income on long-term contracts is recognized on the
percentage-of-completion method based primarily on the ratio of contract
costs incurred to date to total estimated contract costs. As some of these
contracts extend over one or more years, revisions in cost and profit
estimates during the course of the work are reflected in the accounting
period in which the facts which require the revision become known. At the
time a loss on a contract becomes known, the entire amount of the estimated
ultimate loss is accrued. Income on short-term unit contracts is
recognized as the related work is completed. Work-in-process on unit
contracts is based on management's estimate of work performed but not
billed.
"Costs and estimated earnings in excess of billings" represent the excess
of contract revenues recognized under the percentage-of-completion method
of accounting for long-term contracts and work-in-process on unit contracts
over billings to date. For those contracts in which billings exceed
contract revenue recognized to date, such excesses are included in the
caption "Billings in excess of costs and estimated earnings".
CASH AND EQUIVALENTS-- Cash and equivalents include cash balances in excess
of the daily requirements which are invested in overnight repurchase
agreements, certificates of deposits, and various other financial
instruments having a maturity of three months or less. For purposes of the
condensed consolidated statements of cash flows, the Company considers
these amounts to be cash equivalents.
PROPERTY AND EQUIPMENT-- Property and equipment are stated at cost, reduced
in certain cases by valuation reserves. Depreciation and amortization are
computed over the estimated useful life of the assets utilizing the
straight-line method. The estimated useful lives of the assets are:
buildings--20-31 years; leasehold improvements--the term of the respective
lease or the estimated useful life of the improvement, whichever is
shorter; vehicles--3-7 years; equipment and machinery--3-10 years; and
furniture and fixtures--3-10 years. Maintenance and repairs are expensed
as incurred; expenditures that enhance the value of the property or extend
their useful lives are capitalized. When assets are sold or retired, the
cost and the accumulated depreciation are removed from the accounts and the
resulting gain or loss is included in income.
<PAGE> 8
INTANGIBLE ASSETS-- The excess of the purchase price over the fair market
value of the tangible net assets of acquired businesses (goodwill) is
amortized on the straight-line method over 40 years. The appropriateness
of the carrying value of intangible assets is continually reviewed and
adjusted where appropriate. The ongoing assessment of intangible assets
for impairment is based on the recoverability of such amounts through
future operations.
Intangible assets are net of accumulated amortization of $879,955 at October
31, 1995 and $841,182 at July 31, 1995. Amortization expense for the three
month periods ended October 31, 1995 and 1994 was $38,773.
SELF-INSURED CLAIMS LIABILITY-- The Company is primarily self-insured, up
to certain limits, for automobile and general liability, workers'
compensation, and employee group health claims. A liability for unpaid
claims and associated expenses, including incurred but not reported losses,
is actuarially determined and reflected in the condensed consolidated
financial statements as an accrued liability. The self-insured claims
liability includes incurred but not reported losses of $5,117,000 and
$5,072,000 at October 31, 1995 and July 31, 1995, respectively. The
determination of such claims and expenses and the appropriateness of the
related liability is continually reviewed and updated.
INCOME TAXES-- The Company and its subsidiaries file a consolidated
federal income tax return. Deferred income taxes are recognized for the tax
consequences of temporary differences by applying enacted statutory tax rates
to differences between the financial statement carrying value and the tax
basis of the Company's existing assets and liabilities. The effect on
deferred taxes of a change in tax law or rates is recognized in income in the
period that includes the enactment date.
A valuation allowance is provided when it is more likely than not that some
portion of the deferred tax asset will not be realized. Management has
evaluated the available evidence about future taxable income and other
possible sources of realization of deferred tax assets. The valuation
allowance recorded in the financial statements reduces deferred tax assets to
an amount that represents management's best estimate of the amount of such
deferred tax assets that more likely than not will be realized. Accordingly,
at October 31, 1995 and July 31, 1995, deferred tax assets are net of a
valuation allowance of $1,786,518.
PER SHARE DATA-- Per common share amounts are computed on the basis of
weighted average shares of common stock outstanding, plus common stock
equivalent shares arising from the effect of dilutive stock options, using
the treasury stock method. In the three month periods ended October 31, 1995
and 1994, stock options did not impact the per share amounts as they were
either insignificant or antidilutive. The weighted average number of
shares was 8,546,782 and 8,528,990 for the three month periods ended October
31, 1995 and 1994, respectively.
<PAGE> 9
3. ACCOUNTS RECEIVABLE
Accounts receivable, net consist of the following:
<TABLE>
<CAPTION>
October 31, July 31,
1995 1995
____ ____
<S> <C> <C>
Contract billings $ 11,767,894 $ 15,222,897
Retainage 1,341,985 1,201,454
Other receivables 409,608 773,704
------------ ------------
Total 13,519,487 17,198,055
Less allowance for doubtful accounts 940,354 867,578
------------ ------------
Accounts receivable, net $ 12,579,133 $ 16,330,477
============ ============
</TABLE>
4. COSTS AND ESTIMATED EARNINGS ON CONTRACTS IN PROGRESS
The accompanying condensed consolidated balance sheets include costs and
estimated earnings on contracts in progress, net of progress billings as
follows:
<TABLE>
<CAPTION>
October 31, July 31,
1995 1995
____ ____
<S> <C> <C>
Costs incurred on contracts in progress $ 23,056,340 $ 20,862,665
Estimated earnings thereon 204,785 609,280
------------ ------------
23,261,125 21,471,945
Less billings to date 16,671,657 16,349,471
------------ ------------
$ 6,589,468 $ 5,122,474
============ ============
Included in the accompanying condensed
consolidated balance sheets under
the captions:
Costs and estimated earnings in
excess of billings $ 6,589,468 $ 5,223,425
Billings in excess of costs and
estimated earnings (100,951)
------------ ------------
$ 6,589,468 $ 5,122,474
============ ============
</TABLE>
<PAGE> 10
5. PROPERTY AND EQUIPMENT
The accompanying condensed consolidated balance sheets include the following
property and equipment:
<TABLE>
<CAPTION>
October 31, July 31,
1995 1995
____ ____
<S> <C> <C>
Land $ 1,723,527 $ 1,723,527
Buildings 2,263,332 2,223,627
Leasehold improvements 759,527 750,955
Vehicles 21,724,897 21,381,527
Equipment and machinery 19,168,792 19,711,023
Furniture and fixtures 2,947,544 2,930,467
------------ ------------
Total 48,587,619 48,721,126
Less accumulated depreciation and
amortization 30,414,709 29,918,563
------------ ------------
Property and equipment, net $ 18,172,910 $ 18,802,563
============ ============
</TABLE>
Certain subsidiaries of the Company entered into lease arrangements accounted
for as capitalized leases. The carrying value of capital leases at October
31, 1995 and July 31, 1995 was $312,556 and $326,704, respectively, net of
accumulated depreciation of $47,686 and $33,538, respectively. Capital
leases are included as a component of equipment and machinery.
6. NOTES PAYABLE
Notes and loans payable are summarized by type of borrowings as follows:
<TABLE>
<CAPTION>
October 31, July 31,
1995 1995
____ ____
<S> <C> <C>
Bank Credit Agreement:
Revolving credit facility $ 9,000,000 $ 9,000,000
Term-loan 6,565,369 7,948,469
Equipment acquisition term-loans 1,316,667 1,566,667
Capital lease obligations 293,527 310,008
------------ ------------
Total 17,175,563 18,825,144
Less current portion 4,828,330 4,955,080
------------ ------------
Notes payable--non-current $ 12,347,233 $ 13,870,064
============ ============
</TABLE>
At October 31, 1995, the Company had a bank credit agreement consisting of a
$6.6 million term-loan, a $9.0 million revolving credit facility, a $9.8
million standby letter of credit facility, and a $3.0 million capital
equipment acquisition facility of which $1.7 million was available and
unused. The bank credit agreement contains restrictions which, among other
things, requires maintenance of certain financial ratios and covenants,
restricts encumbrances of assets and creation of indebtedness, and limits the
payment of cash dividends. The bank credit agreement restricts the payment
of cash dividends until the term-loan is reduced to $5.0 million; thereafter,
cash dividends are limited to 33 1/3 percent of earnings available for
<PAGE> 11
distribution as dividends. Substantially all of the Company's assets are
pledged as collateral under the terms of the agreement. At October 31, 1995,
the Company was in compliance with all financial covenants and conditions.
The interest on the term-loan and the revolving credit facility is at the
bank's prime rate plus one-half percent (9.25% at October 31, 1995 and July
31, 1995). The interest on the equipment acquisition term-loans is at the
bank's prime rate plus three-quarters of one percent (9.50% at October 31,
1995 and July 31, 1995). Interest costs incurred on notes payable, all of
which were expensed, for the three month periods ended October 31, 1995 and
1994 were $429,008 and $462,777, respectively. Such amounts are included in
general and administrative expenses in the accompanying condensed
consolidated statements of operations.
Beginning September 1995, the term-loan quarterly principal payments
increased to $1.0 million from $750,000. The outstanding balance of the
equipment acquisition term-loans is payable quarterly through January 1998.
The revolving credit facility is used to finance working capital and is
payable in March 1998.
At October 31, 1995, the Company had $8.5 million outstanding standby
letters of credit issued as security to the Company's insurance
administrators as part of its self-insurance program. The capital equipment
acquisition facility and standby letter of credit facility expired November
30, 1995. The Company has petitioned the bank for renewal of these
facilities and anticipates that the renewals will be granted.
In addition to the borrowings under the bank credit agreement, certain
subsidiaries have outstanding obligations under capital leases. The
obligations are payable in monthly installments expiring at various dates
through July 1998.
7. COMMITMENTS AND CONTINGENCIES
In the normal course of business, certain subsidiaries of the Company have
pending and unasserted claims. Although the ultimate resolution and
liability of these claims cannot be determined, management believes the
final disposition of these claims will not have a material adverse impact on
the Company's consolidated financial condition or results of operations.
<PAGE> 12
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion and analysis provides information which management
believes is relevant to an assessment and understanding of the Company's
consolidated financial condition and results of operations. The discussion
should be read in conjunction with the condensed consolidated financial
statements and notes thereto.
Results of Operations
Contract revenues for the quarter ended October 31, 1995 increased 3.2% to
$37.4 million, as compared to $36.2 million for the same quarter last year.
The increase in contract revenues is primarily attributable to the
increased volume experienced in telecommunication services group. The
telecommunication services group contract revenue increased 8.3% to $31.3
million for the quarter. The utility line locating services and electrical
services groups contract revenue reflect a slight decrease as compared to the
corresponding period last year.
The contract revenue mix between telecommunication services, utility line
locating services and electrical services over recent years has reflected a
steady increase in contract revenues from the telecommunication services
group offset by a decline in the electrical services group. The contract
revenue mix between telecommunication services, utility line locating
services and electrical services for the quarter ended October 31, 1995 was
84%, 9%, and 7%, respectively, and 80%, 10% and 10%, respectively, for the
quarter ended October 31, 1994. Multi-year comprehensive services contracts
continue to be a significant source of contract revenue. For the three month
periods ended October 31, 1995 and 1994, multi-year comprehensive services
contracts included in the telecommunications services group, represented 65%
and 69% of total contract revenues, respectively. In addition, the
telecommunication services group experienced increased bid activity during
the quarter ended October 31, 1995 in comparison to the same period last
year.
The Company's backlog of uncompleted work at October 31, 1995 was $188
million as compared to $184 million at October 31, 1994. Contracts awarded
during the three month period ended October 31, 1995 included a significant
three year telecommunications comprehensive services contract valued at $26
million and the extension of several telecommunication comprehensive services
contracts valued at $21 million.
The Company's costs and operating expenses may be affected by a number of
factors including contract volumes, character of services rendered, work
locations, competition, and changes in productivity. Costs of earned
revenues, excluding depreciation, were 82% and 81% of contract revenues for
the quarters ended October 31, 1995 and 1994, respectively. The Company's
prime costs of direct labor, materials, subcontractors, and equipment costs
remained relatively stable for the quarter ended October 31, 1995 compared to
the corresponding period last year. In addition, the Company's insurance
costs increased $0.5 million as a result of certain claims which occurred
during the quarter ended October 31, 1995.
General and administrative expenses increased $0.4 million for the quarter
ended October 31, 1995 to $3.9 million as compared to $3.5 million for the
same quarter last year. This increase is primarily attributable to payroll
and payroll taxes which increased by $0.3 million, general insurance costs
which increased by $0.1 million and other general expenses which increased by
$0.2 million. The increases in general and administrative expenses were
partially offset by a $0.1 million decreases in the provision for doubtful
accounts and a $0.1 million decrease in professional fees.
<PAGE> 13
The variance from the statutory income tax rates resulted from state income
taxes, the amortization of intangible assets with no tax benefit and other
non-deductible expenses for tax purposes.
Liquidity and Capital Resources
The Company's sources of funds are generated from operations, proceeds from
the sale of idle real property and equipment and its available borrowing
capabilities under the current bank credit agreement. Cash flow from
operating activities increased $1.7 million to $4.1 million in comparison
to the same period last year. Improved cash collections contributed to the
increase in cash flow.
The Company's sources of funds provided for capital expenditures of $0.9
million during the three month period ended October 31, 1995. These capital
expenditures resulted from the normal replacement of equipment. Aside from
these capital expenditures, the Company obtained approximately $0.6 million
of equipment under various noncancelable operating leases.
At October 31, 1995, the Company had outstanding borrowings under a term-loan
of $6.6 million, equipment acquisition term-loans aggregating $1.3
million, and a revolving credit facility of $9.0 million. Interest on the
term-loan and revolving credit facility is at the bank's prime rate plus
one-half percent (9.25% at October 31, 1995). The interest on the equipment
acquisition term-loans is at the bank's prime rate plus three-quarters of
one percent (9.50% at October 31, 1995). During the three month period ended
October 31, 1995, the Company reduced its outstanding debt balance by $1.6
million, which included a $0.4 million prepayment of the term-loan
principal utilizing the proceeds received from the sale of equipment.
Substantially all of the Company's assets are pledged as collateral in
support of these facilities.
In addition, the Company has available a $9.8 million standby letter of
credit facility and a $3.0 million capital equipment acquisition facility
of which $1.7 million is available and unused at October 31, 1995. The
standby letter of credit facility is issued as security to the Company's
insurance administrators as part of its self-insurance program. The
Company had outstanding standby letters of credit of $8.5 million against
the standby letter of credit facility at October 31, 1995. Both facilities
expired November 30, 1995. The Company has petitioned the bank for renewal
of these facilities and anticipates that the renewals will be granted.
The bank credit agreement contains provisions regarding minimum working
capital, tangible net worth, debt-to-equity ratios and certain other
financial covenants. At October 31, 1995, the Company was in compliance with
all financial covenants and conditions.
Cash flow generated from operations will continue to be the Company's primary
source of funds as available borrowing capabilities under the bank credit
agreement are limited. The Company foresees these available sources of funds
along with existing cash balances to be sufficient to meet its financial
obligations, including the scheduled debt payments under the bank credit
agreement and operating lease commitments, and to support the Company's
normal replacement of equipment at its current level of business. The
Company's future operating results and cash flows may be affected by a number
of factors. These factors include the Company's success in bidding on future
contracts, and the Company's ability to effectively manage controllable
costs.
<PAGE> 14
The board will determine future dividend policies based on financial
condition, profitability, cash flow, capital requirements, and business
outlook, as well as other factors relevant at the time. No cash dividends
have been paid during the three month period ended October 31, 1995. In
addition, the Company's bank credit agreement prohibits, without prior
approval of the bank, the declaration or payment of any cash dividends until
the term-loan is reduced to $5.0 million; thereafter, cash dividends are
limited to 33 1/3 percent of earnings available for distribution as dividends.
<PAGE> 15
PART II. OTHER INFORMATION
__________________________
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibits furnished pursuant to the requirements of Form 10-Q:
See Exhibit Index on Page 17
(b) Reports On Form 8-K
No reports on Form 8-K were filed on behalf of the Registrant during the
quarter ended October 31, 1995.
<PAGE> 16
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DYCOM INDUSTRIES, INC.
Registrant
<TABLE>
<S> <C>
Date: December 12, 1995 /s/ Thomas R. Pledger
_________________ ____________________________
Thomas R. Pledger
Chairman and Chief Executive
Officer
Date: December 12, 1995 /s/ Ronald L. Roseman
_________________ ____________________________
Ronald L. Roseman
President and Chief Operating
Officer
Date: December 12, 1995 /s/ Douglas J. Betlach
_________________ ____________________________
Douglas J. Betlach
Vice President and Chief
Financial Officer
</TABLE>
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
Number Description
______ ___________
<C> <C>
(27) Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE DYCOM
INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET AT OCTOBER 31, 1995 AND
THE CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED
OCTOBER 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000067215
<NAME> DYCOM INDUSTRIES, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-1996
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0
0
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