dy-20230429

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 April 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 29,325,154 shares of common stock with a par value of $0.33 1/3 outstanding at May 23, 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	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	36

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 6.	Exhibits	38

SIGNATURES		39

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)


	April 29, 2023		January 28, 2023
ASSETS
Current assets:
Cash and equivalents	$	71,397	$	224,186
Accounts receivable, net (Note 5)	1,184,871		1,067,013
Contract assets	56,617		43,932
Inventories	115,748		114,972
Income tax receivable	765		3,929
Other current assets	54,447		38,648
Total current assets	1,483,845		1,492,680

Property and equipment, net	374,415		367,852
Operating lease right-of-use assets	72,677		67,240
Goodwill	272,545		272,545
Intangible assets, net	83,057		86,566
Other assets	25,179		26,371

Total assets	$	2,311,718	$	2,313,254

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	196,183	$	207,739
Current portion of debt	17,500		17,500
Contract liabilities	23,522		19,512
Accrued insurance claims	44,191		41,043
Operating lease liabilities	28,618		27,527
Income taxes payable	6,092		14,896
Other accrued liabilities	116,968		141,334
Total current liabilities	433,074		469,551

Long-term debt	803,382		807,367
Accrued insurance claims - non-current	53,357		49,347
Operating lease liabilities - non-current	43,558		39,628
Deferred tax liabilities, net - non-current	62,181		60,205
Other liabilities	18,732		18,401
Total liabilities	1,414,284		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: 29,318,085 and 29,350,021 issued and outstanding, respectively	9,773		9,783
Additional paid-in capital	6,620		5,654
Accumulated other comprehensive loss	(1,546)		(1,771)
Retained earnings	882,587		855,089
Total stockholders’ equity	897,434		868,755
Total liabilities and stockholders’ equity	$	2,311,718	$	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
	April 29, 2023		April 30, 2022

Contract revenues	$	1,045,474	$	876,300


Costs of earned revenues, excluding depreciation and amortization	853,366		745,730
General and administrative	82,357		69,380
Depreciation and amortization	37,271		36,637

Total	972,994		851,747

Interest expense, net	(11,372