Dycom Industries, Inc. (NYSE:DY) Q3 2024 Results Conference Call November 21, 2023 9:00 AM ET

Company Participants

Steven Nielsen - President and CEO

Drew DeFerrari - CFO

Ryan Urness - General Counsel

Conference Call Participants

Adam Thalhimer - Thompson Davis

Brent Thielman - D.A. Davidson

Frank Louthan - Raymond James

Alex Waters - Bank of America

Alex Rygiel - B. Riley Securities

Eric Luebchow - Wells Fargo

Avi Jaroslawicz - UBS

Alan Mitrani - Sylvan Lake Asset Management

Operator

Good day, and thank you for standing by. Welcome to the Dycom Industries, Inc. Third Quarter Fiscal 2024 Results Conference Call. [Operator Instructions] Today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Mr. Steven Nielsen, President and Chief Executive Officer. Please go ahead, sir.

Steven Nielsen

Thank you, operator. Good morning, everyone. Thank you for attending this conference call to review our third quarter fiscal 2024 results.

Going to Slide 2. During this call, we will be referring to a slide presentation, which can be found on our website's Investors Center main page. Relevant slides will be identified by number throughout our presentation. Today, we have on the call Drew DeFerrari, our Chief Financial Officer; and Ryan Urness, our General Counsel.

Now, I will turn the call over to Ryan Urness.

Ryan Urness

Thank you, Steve. All forward-looking statements made during this conference call are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all comments reflecting our expectations, assumptions or beliefs about future events. These forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from current projections, including those risks discussed in the company's filings with the U.S. Securities and Exchange Commission. Forward-looking statements are made solely as of the original broadcast date of this conference call, and we assume no obligation to update any forward-looking statements. Steve?

Steven Nielsen

Thanks, Ryan. Now moving to Slide 4 and a review of our third quarter results. As we review our results, please note that in our comments today and in the accompanying slides, we reference certain non-GAAP measures. We refer you to the Quarterly Reports section of our website for a reconciliation of these non-GAAP measures to their corresponding GAAP measures.

In addition, the impacts of the change order and the closeout of several projects increased contract revenues by $26.5 million during this quarter. After the impacts of certain other costs, all of these items contributed $23.6 million to both gross margin and adjusted EBITDA. As a result, reported gross margin was increased by 1.6% and reported adjusted EBITDA was increased by 1.8%, both as a percentage of contract revenues. On an after-tax basis, these items contributed approximately $17.5 million to reported net income or $0.59 per common share diluted.