Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Credit Suisse 2010 Engineering and Construction Conference
26 slides from Dycom Industries's conference presentation, Jun 3, 2010
Slide 1: Credit Suisse 2010 Engineering and Construction Conference
Credit Suisse 2010 Engineering and Construction Conference June 3, 2010
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “estimate,” “intend,” “forecast,” “may,” y “should”, “could”, “project,”
Slide 3: Dycom Industries Introduction
Dycom Industries Introduction Leading provider of specialty contracting services principally to telephone and cable companies Telecommunications industry dynamics driving growth potential Major participant in a large, but fragmented industry, which offers acquisition opportunities Significan
Slide 4: Revenue Mix
Revenue Mix Telecommunications 79.8% 2.2% 18.0% Electric and Gas Utilities and Other Construction and Maintenance Underground Facility Locating Quarter Ended April 24, 2010- $231.6 million 3
Slide 5: Providing End-To-End Services
Providing End-To-End Services Outside Plant & Equipment Installation Underground Facility Locating Engineering Premise Equipment Installation 4
Slide 6: Dycom Industries At a Glance
Dycom Industries At a Glance Headquartered in Palm Beach Gardens, Florida Third quarter fiscal 2010 revenues of $231.6 million Strong financial profile ` Cash C h and d equivalents i l t $116 $116.2 2 million illi att A Aprilil 24 24, 2010 ` Shareholders’ equity $389.1 million at April 24, 201
Slide 7: Dycom Operating Overview
Dycom Operating Overview Dycom’s Nationwide Presence Dycom Headquarters Subsidiary Headquarters Subsidiaries Strong subsidiaries, broad national footprint 6
Slide 8: Industry Developments…
Industry Developments… Telephone/cable industry convergence - a reality ` Competition for customers drives growth Network bandwidth expansion – an imperative ` Telephone companies expanding network capacity ` Cable responding to match capabilities and facilitate new products such as VOIP, HDTV,
Slide 9: …And Opportunities
…And Opportunities Increased capital spending ` Telephone company deployments of Fiber (FTTx) ` Cable company bandwidth expansion ` Customer premise equipment deployments ` Fiber Fib to the h cellll site i Renewed focus on network reliability and availability as subscribers demand better service
Slide 10: Telecom Capital Spending
Telecom Capital Spending “… we believe IPTV is an important part of our future. And we’ll be looking for ways to continue to expand our investment and the rollout of this product in the months ahead.” Glen Post III – CenturyLink y – Chairman and Chief Executive Officer May y 2010 Capex Commentary
Slide 11: Cable Capital Spending
Cable Capital Spending “We also contin continuee to make significant progress deploying deplo ing All-Digital All Digital and DOCSIS 3.0. We reach nearly 80% of our footprint with DOCSIS 3.0, reinforcing our leadership position in broadband. As we deploy this capability, we are doubling the speeds t
Slide 12: Underground Facility Locating Services
Underground Facility Locating Services “Dig Safe” laws in all 50 states require owners of underground utilities to identify and mark their facilities prior to excavation ` Regulate telephone, cable, power, gas, water & sewer utilities ` Seek to minimize network outages, protect job-site workers, a
Slide 13: Dycom's Competitive Advantages
Dycom’s Competitive Advantages Established customer relationships and reputation Broad geographic coverage Scale to satisfy customer time and service requirements Responsive, local decentralized business units Access to capital Senior management operating expertise 12
Slide 14: Growth Strategy As Opportunities Expand
Growth Strategy As Opportunities Expand Build and maintain long-term customer relationships at the local level ` Position business to capture p both recurring g maintenance and new capital p spending Empower subsidiary management ` Build relationships with customer contracting decision makers `
Slide 15: Well Established Customers
Well Established Customers Fiscal Quarter Ended April 24, 2010 Customer Revenue Breakdown Other 19% AT&T 22% Qwest 1% West Carolina Telephone 1% Electric Power Board 2% 2% Cablevision 3% Windstream 14% Comcast 7% Charter 8% 11% 10% Time Warner Cable CenturyLink Verizon Blue-chip, predominantly inves
Slide 16: Customer Rotation
Customer Rotation $300 $250 $200 $150 $100 $50 $‐ Revenue ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 AT&T Comcast CenturyLink Verizon Qwest Adelphia Charter Comm Time Warner Cable 1400 $1,230 1200 $1,138 $1,107 $ , $ $995 1000 $958 $761 $784 $842 800 64% 64% $579 63% $588 68%
Slide 17: Revenue – Q3 Fiscal 2010
Revenue – Q3 Fiscal 2010 Revenue By Contract Type Quarter Ended April 24, 2010 Master Service Agreements (MSA’s) ` Multi-year, Multi year multi multi-million million dollar Master Service Agreements 78.1% arrangements covering thousands of individual work orders ` Generally exclusive requirement c
Slide 18: Senior Management
Senior Management Executive Industry Tenure Comment Steven E. Nielsen 16 years with Dycom; prior experience with 25 years President & CEO Henkels & McCoy Timothy R R. Estes 16 years with Dycom; prior experience with 37 years EVP & COO BellSouth H. Andrew DeFerrari 5 years with Dycom; prior exp
Slide 19: Financial Update
DYCOM INDUSTRIES INC. ye Financial Update &
Slide 20: Financial Overview
Financial Overview Centralize activities which yield synergistic benefits ` Treasury ` Tax ` Risk management ` Capital p asset p procurement ` Information technology resources Decentralize financial operations p to p provide solid support and flexibility at operating unit level Maintain financ
Slide 21: Fiscal Year Results – Revenue and Earnings
Fiscal Year Results – Revenue and Earnings Contract Revenues ($ in millions) Annual revenue exceeding $1.1 $1,400 $1,200 $1,138 $1,230 $1,107 , billion for the three most recent $995 $1,000 $958 fiscal years $800 $600 Revenue of $707.1 million for the $400 $200 nine months ended April 24, 2010 $
Slide 22: Quarterly Results – Revenue and Earnings
Quarterly Results – Revenue and Earnings Contract Revenues ($ in millions) $300 $270 Seasonal revenue pattern driven by $258 $259 $232 $240 $216 weather and available work days $180 $120 Q3-10 impacted by difficult weather $60 conditions; total revenue trends beginning g g to improve p in Q3-10
Slide 23: Fiscal Year Results – Cash Flow and Liquidity
Fiscal Year Results – Cash Flow and Liquidity Cash Flow from Operating Activities and Cap-ex, net ($ in millions) $160 $126.6 Cash flow from operations over $100 $120 $108.5 $104 3 $104.3 $87.4 $102 3 $102.3 million illi ffor th the ffour mostt recentt years $80 $62.3 $62.3 $48.4 $47.3 Ample cas
Slide 24: Quarterly Results – Cash Flow and Liquidity
Quarterly Results – Cash Flow and Liquidity Cash Flow from Operating Activities and Cap-ex, net ($ in millions) $40 $30.5 $32.3 Cash flows used to fund operations as $30 $24 6 $24.6 activity level increased during the quarter $20.9 $20 $16.4 $8.3 $6.9 Capital expenditures, net of disposals at $1
Slide 25: Regulation G Disclosure
Regulation G Disclosure Reconciliation of GAAP to Non-GAAP measures ($ in millions) (amounts may not add due to rounding) Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Adjusting Items: Write-off of deferred financing costs $ - $
Slide 26: Credit Suisse 2010 Engineering and Construction Conference
Credit Suisse 2010 Engineering and Construction Conference June 3, 2010
Dycom Industries — Credit Suisse 2010 Engineering and Construction Conference on 6ix