Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Raymond James 34th Annual Institutional Investors Conference 2013
32 slides from Dycom Industries's conference presentation, Mar 5, 2013
Slide 1: Raymond James 34th Annual Institutional Investors Conference
Raymond James 34th Annual Institutional Investors Conference March 5, 2013
Slide 2: Forward-Looking Statements and Non-GAAP Information
2 Forward-Looking Statements and Non-GAAP Information Fiscal 2013 second quarter results are unaudited. This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and the competitive environment. All
Slide 3: Positioned for strong equity returns
3 Positioned for strong equity returns A leading supplier of specialty contracting services to telecommunication providers nationwide Telecommunications networks fundamental to economic progress Firm end market opportunities Wireless backhaul Fiber deployments to businesses Wireless netw
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide Footprint and Significant Resources Headquartered in Palm Beach Gardens, Florida Nationwide footprint Operates in 49 states and in Canada Over 40 operating subsidiaries and hundreds of field offices Fiscal 2013 second quarter revenues of $369.3 million grew organically 3.5% ye
Slide 5: Recent Developments
5 Recent Developments Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. Acquisition Acquired substantially all of the domestic telecommunications infrastructure services operations of Quanta Services, Inc. in December 2012 Purchase price of
Slide 6: Services Crucial to Customer Success
6 Services Crucial to Customer Success Engineering Underground Facility Locating Outside Plant & Equipment Installation Premise Equipment Installation Wireless Services
Slide 7: Intensely Focused on Telecommunications Market
7 Intensely Focused on Telecommunications Market Contract Revenue $369.3 million Quarter Ended January 26, 2013 87.8% 7.5%4.7% Telecommunications Electric and Gas Utilities and Other Construction and Maintenance Underground Facility Locating
Slide 8: Strong Secular Trend
8 Strong Secular Trend Q u a rte rl y G D P C h a n g e U .S . In te rn et P ro to c o l T raff ic (Peta b y tes p e r M o n th ) Sources: U.S. Telecom, The Broadband Association Cisco Visual Networking Index U.S. National Bureau of Economic Analysis “…what we've seen today is 13 billion devices con
Slide 9: Key Driver: Wireless Backhaul
9 Key Driver: Wireless Backhaul 0X 10X 20X 30X 40X 50X 2009 2010 2011 2012 2013E 2014E Mobile Data Traffic Growth Relative to 2009 Yankee Group Coda Research Cisco Systems, Inc. Average “…a third key strategic initiative for us is investing in fiber builds to as many towers and service areas as is e
Slide 10: Key Driver: Business Services
10 $9.5B $20.0B $27.5B 2012 Business Services Revenue $5.0 Billion Addressable Business Services Market $57 Billion •Emerging as an industry battleground •Multi-year cap-ex trajectory provides visible revenue opportunities •Leverages Dycom’s existing cable engineering and construction resources “Bus
Slide 11: Key Driver: Wireless Network Upgrades
11 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 US cell sites US Towers Key Driver: Wireless Network Upgrades “…Probably in the neighborhood of 60% of that spend [CY 2013 cap-ex] will be in the Wireless space; that Wireless space will be focused on additional capacity in the existing net
Slide 12: Key Driver: FTTx Deployments
12 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 4Q 07 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11 2Q 12 4Q 12 Cumulative Subscribers Verizon FiOS Video AT&T U-Verse Key Driver: FTTx Deployments “….our project, Velocity IP, or Project VIP. It is, quite frankly, simply put, bringing extensi
Slide 13: Dycom's Nationwide Presence
13 Subsidiaries Dycom’s Nationwide Presence Local Credibility, National Capability Dycom Headquarters Subsidiary Headquarters
Slide 14: Focused on High Value Profitable Growth
14 Focused on High Value Profitable Growth Anticipating emerging technology trends which drive capital spending Deliberately targeting high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities Selectively acquiring businesses which com
Slide 15: Well Established Customers
15 15% 13% 11% 9%9% 6% 4% 3% 3% 2% 25% Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Well Established Customers Quarter Ended January 26, 2013 Customer Revenue Breakdown Comcast AT&T CenturyLink Verizon Windstream Charter Ericsson Time Warner Cable Other Fro
Slide 16: Durable Customer Relationships
16 Durable Customer Relationships R e v enue ( $ in mil lions ) For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. $- $50 $100 $150 $200 $250 $300 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 AT&T Comcast
Slide 17: Anchored by Long-Term Agreements
17 Master Service Agreements (MSA’s) Multi-year, multi-million dollar arrangements covering thousands of individual work orders Generally exclusive requirement contracts Long-term contracts relate to specific projects with terms in excess of one year from the contract date Dycom is party t
Slide 18: Robust Cash Flow - Investing for Growth
18 $462 $347 $312 $315 $- $200 $400 $600 $800 Capital Expenditures Business Acquisitions Share Repurchases Capital Investments FY 2003 - January 2013 Q2-13 Acquisition $662 FY 2003 - 2012 Robust Cash Flow - Investing for Growth $932 million Cash flow from operations $483 million Provided by borrowin
Slide 19: Financial Update
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Slide 20: Financial Overview
20 Organic revenue growth of 3.5% during Q2-2013 Solid margins and earnings Stable balance sheet Strong cash flows and liquidity Capital structure designed to produce strong equity returns Financial Overview
Slide 21: Contract Revenue Growth
21 (12.0)% (10.5)% 2.0% 15.4% 2.9% (15)% (10)% (5)% 0% 5% 10% 15% 20% FY2009 FY2010(a) FY2011 FY2012 FY 2013 (Q2 YTD) Annual Organic Growth Note: Subsidiaries acquired in Q2-13 represent the operations of the telecommunications infrastructure services subsidiaries acquired by Dycom on December 3, 20
Slide 22: Margins and Earnings Expansion
22 Margins and Earnings Expansion Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (a) The amounts and percentages for EBITDA – Adjusted and amounts for Income from continuing operations – Non-GAAP are Non-GAAP financial measures adjusted to exc
Slide 23: Cash Flow and Liquidity
23 Cash Flow and Liquidity Strong Cash Flows To Fund Growth and Reduce Revolving Debt in FY 2013 Investing and Financing Transactions Acquisition expenditures of $314.8 million financed by new, 5-year credit facility and $90.0 million add-on to Senior Subordinated Notes due 2021 Repaid $70.0 mil
Slide 24: Q2-13 Results
24 Q2-13 Results Organic revenue growth of 3.5% in Legacy Dycom Revenues of $75.9 million from Acquired Subsidiaries in Q2-13 Consolidated Adjusted EBITDA of 10.1% Acquired subsidiaries: Adjusted EBITDA 9.1% Depreciation and amortization of $6.1 million Acquired backlog of $462 million
Slide 25: Strong Balance Sheet and Liquidity
25 Strong Balance Sheet and Liquidity Financial profile positioned to address emerging industry opportunities $400 million Senior Credit Facility entered into in Q2-13 - maturity in Dec 2017 $125 million Term Loan $275 Revolver Attractive financing terms Ample liquidity Senior Subordinat
Slide 26: Capital Allocated to Maximize Shareholder Returns
26 Capital Allocated to Maximize Shareholder Returns Organic growth, solid free cash flow and confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns December 2012 acquisition of substantially all of Quanta Services, Inc.’s domestic telecommunica
Slide 27: Supplemental schedules Regulation G Disclosures
Supplemental schedules Regulation G Disclosures
Slide 28: Regulation G Disclosure
28 Regulation G Disclosure (a) Year-over-year growth percentage is calculated as follows: (i) revenues in the current twelve month period less (ii) revenues in the comparative prior twelve month period; divided by (ii) revenues in the comparative prior twelve month period. (b) Non-GAAP adjustments i
Slide 29: Regulation G Disclosure
29 Regulation G Disclosure Amounts may not foot due to rounding. (a) Year-over-year growth (decline) percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (iii) revenues in the comparative prior year quar
Slide 30: Regulation G Disclosure
30 Regulation G Disclosure The below table presents the Non-GAAP financial measures of EBITDA and Adjusted EBITDA for the respective periods. EBITDA and Adjusted EBITDA are Non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Compa
Slide 31: Regulation G Disclosure: Cumulative Cash Flows
31 Regulation G Disclosure Calculation of Cumulative Cash Flows Fiscal 2002 through January 26, 2013 ($ in millions) Net Cash Provided by Operating Activities Capital Expenditures, Net of Proceeds from Asset Sales (a) Cash Paid for Acquisitions, net of cash acquired Repurchases of Common Stock Borro
Slide 32: Raymond James 34th Annual Institutional Investors Conference
Raymond James 34th Annual Institutional Investors Conference March 5, 2013
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