Dycom Industries finished fiscal year 2004 in a strong position. Having successfully weathered several years of an industry-wide downturn, we continue to benefit from a strong balance sheet with ample cash reserves, and are pursuing a solid strategy for resuming our long-term growth. A significant increase in revenues, which was especially noticeable during the last two quarters of the year, gives us every reason to be optimistic about our long-term prospects. For the fiscal year that ended July 31, 2004, Dycom reported total contract revenues of $872.7 million, an increase of 41.2 percent over the previous year’s revenues. When contributions from subsidiaries not owned during the previous fiscal year are excluded, contract revenues increased by 21.2 percent. Net income for the fiscal year was $58.6 million, an increase of over 200 percent from the previous year. This computes to $1.20 per common share diluted, on a generally accepted accounting principles (GAAP) basis. Before proceeding, I must note three technical points: First, the fiscal year ending July 31, 2004 contained 53 weeks instead of 52, an anomaly that should be kept in mind when making any comparisons. Second, the GAAP results reported above include an after-tax gain of approximately $6.8 million on the sale of certain long-term receivables, which was reported in the second quarter of the year. Third, the GAAP results also reflect an after-tax charge of approximately $1.4 million related to an ongoing federal employment tax audit, which we reported in the third quarter of the fiscal year. One of the most significant industry developments in We are pleased to have been selected as a provider for this important project, not only for the immediate revenue it provides to our company, but also because it the past year was the launch of Verizon’s fiber-to-the- premises (FTTP) program. This much-anticipated initiative uses fiber-optic cable and optical electronics to directly link homes and businesses to Verizon’s network, replacing traditional copper-wire links. Verizon’s FTTP program was launched in Texas in May 2004, and is now also being rolled out in the Tampa area. Although fiber-optic technology is widely used throughout the telecom industry, Verizon’s FTTP program is the first use of fiber-optics to connect individual homes and businesses to the network on such a widespread scale. DEAR FELLOW SHAREHOLDERS: