Dycom Industries Inc. F2Q09 (Qtr End 01/24/09) Earnings Call Transcript

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2009-02-25 09:42:20.0

Tags: Call Transcript, Quarter, Earnings, Basis, Dycom Industries Inc., Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). And we will go to with Alex Rygiel with FBR Capital Markets. Please go ahead.

Alex Rygiel - FBR Capital Markets

That’s FBR. Thank you. Good morning Steve.

Steven Nielsen

Good morning Alex.

Alex Rygiel - FBR Capital Markets

I’m sorry; I missed a couple of those customer numbers. Could you run through the number 6 through 10 again?

Drew DeFerrari

Alex, this is Drew. I’ll go through those. Charter was at 4.7%; Windstream was at 3.6%; Cablevision was at 2%; Qwest was at 1.9%; and the Williams Companies was at 1.8%.

Alex Rygiel - FBR Capital Markets

Great and then what was Verizon in the fiscal first quarter?

Drew DeFerrari

As a percentage, fiscal first quarter was 19.4%.

Alex Rygiel - FBR Capital Markets

Okay, so on a dollar basis it was around $65 million and in this current quarter it’s about $36 million, is that fair?

Drew DeFerrari

That is correct.

Steven Nielsen

Yes, that’s about right Alex. I think it was actually a little over $65 million.

Alex Rygiel - FBR Capital Markets

Steve, could you talk about that material decline on sequential basis a little bit? Is the 36 million kind of the ongoing quarterly kind of run rate? Did you lose any market share; did you give up any states; anything going on there other than the customer just cutting back?

Steven Nielsen

Well the customer slowed down. Actually we gained market share, because in areas where they slowed down we retained business where they did cutback on the number of vendors in certain markets; and actually from a seasonal perspective, although we are not providing guidance, we do provide services in New England and New York, where this is the slowest quarter of the year for obvious reasons.

Alex Rygiel - FBR Capital Markets

Okay. What was your amortization expense in the quarter?

Drew DeFerrari

Alex, it was $1.7 million.

Alex Rygiel - FBR Capital Markets

And based upon your adjustment to goodwill impairment, what do you anticipate amortization expense going forward on a quarterly basis?

Drew DeFerrari

It should be consistent. That was non-amortizing goodwill on the write-down. So we still have the acquired intangibles that continue to amortize.

Alex Rygiel - FBR Capital Markets

And Steve, what is your thought on CapEx this year, both gross and net?

Steven Nielsen

Well, as we said before, we think about this on a net basis, and we talked about for the full fiscal year $25 million to $30 million and we’ll adjust that depending on how we see the market for used assets, which so far still holds it in there based on most recent results.

 

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