Dycom Industries Inc (DY) has reported a 52.93 percent jump in profit for the quarter ended Jan. 28, 2017. The company has earned $23.66 million, or $0.74 a share in the quarter, compared with $15.47 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $26.41 million, or $0.82 a share compared with $17.99 million or $0.54 a share, a year ago.
Revenue during the quarter grew 25.32 percent to $701.13 million from $559.47 million in the previous year period. Gross margin for the quarter expanded 42 basis points over the previous year period to 19.93 percent. Total expenses were 93.46 percent of quarterly revenues, down from 94.23 percent for the same period last year. This has led to an improvement of 77 basis points in operating margin to 6.54 percent.
Operating income for the quarter was $45.86 million, compared with $32.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $86.16 million compared with $66.42 million in the prior year period. At the same time, adjusted EBITDA margin improved 42 basis points in the quarter to 12.29 percent from 11.87 percent in the last year period.
For the third-quarter, Dycom Industries expects revenue to be in the range of $715 million to $745 million. The company projects diluted earnings per share to be in the range of $1.02 to $1.15 for the third-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.11 to $1.24 for the third-quarter.
Working capital increases
Dycom Industries Inc has recorded an increase in the working capital over the last year. It stood at $625.18 million as at Jan. 28, 2017, up 10.68 percent or $60.30 million from $564.88 million on Jan. 23, 2016. Current ratio was at 3.38 as on Jan. 28, 2017, down from 3.80 on Jan. 23, 2016.
Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 53 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 7 days for the quarter compared with 12 days for the previous year period. At the same time, days payable outstanding was almost stable at 16 days for the quarter, when compared with the previous year period.
Debt moves up
Dycom Industries Inc has witnessed an increase in total debt over the last one year. It stood at $759.39 million as on Jan. 28, 2017, up 22.86 percent or $141.31 million from $618.08 million on Jan. 23, 2016. Total debt was 42.99 percent of total assets as on Jan. 28, 2017, compared with 41.11 percent on Jan. 23, 2016. Debt to equity ratio was at 1.23 as on Jan. 28, 2017, up from 1.10 as on Jan. 23, 2016.
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