Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (October 2015)
32 slides from Dycom Industries's investor presentation, Oct 5, 2015
Slide 1: Investor Presentation October 2015
Click to edit Master title style Click to edit Master subtitle style Investor Presentation October 2015 Exhibit 99.1
Slide 2: Forward Looking Statements and Non-GAAP Information
2 This presentation contains “forward-looking statements”. Other than statements of historical facts, all statements contained in this presentation, including statements regarding the Company’s future financial position, future revenue, prospects, plans and objectives of management, are forward-look
Slide 3: Positioned for Strong Equity Returns
3 Positioned for Strong Equity Returns Leading supplier of specialty contracting services to telecommunication providers nationwide Telecommunications networks fundamental to economic progress Firm and strengthening end market opportunities head2right Telephone companies deploying FTTX to enable vid
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide Footprint and Significant Resources Nationwide footprint head2right Operates in all 50 states, Washington, D.C. and in Canada head2right Over 40 operating subsidiaries Strong revenue base and customer relationships head2right Revenues of $578.5 million in Q4-15 compared to $482.1 millio
Slide 5: Intensely Focused on Telecommunications Market
5 Intensely Focused on Telecommunications Market xrhombus Outside Plant & Equipment Installation xrhombus Premise Equipment Installation xrhombus Wireless xrhombus Engineering xrhombus Underground Facility Locating Telecommunications Underground Facility Locating Electric and Gas Utilities and Other
Slide 6: Strong Secular Trend
6 Strong Secular Trend “It took 32 years – from 1984 to 2016 – to generate the first zettabyte of IP traffic annually. However, as this year’s Visual Networking Index forecasts, it will take only three additional years to reach the next zettabyte milestone when there will be more than 2 zettabytes o
Slide 7: Industry Developments
7 Industry Developments Industry increasing network bandwidth dramatically head2right Major industry participants deploying significant wireline networks head2right Newly deployed networks provisioning 1 gigabit speeds, speeds beyond 1 gigabit envisioned head2right Industry developments are producin
Slide 8: Key Driver: FTTx Deployments
8 Key Driver: FTTx Deployments “The sentiment in this management team broadly over the last two years on fiber investment to the home has just gone off the charts. What we have done in Austin and the other markets where we have gone in and aggressively built has just given us an incredible amount of
Slide 9: Key Driver: Fiber to Businesses
9 Key Driver: Fiber to Businesses Sources: Comcast, Charter, and Time Warner Cable Press Releases and transcripts “[…] the contribution from midsize businesses continues to increase. There is a tremendous opportunity for growth in this segment as we have captured only a 25% share of the small end of
Slide 10: Key Driver: Connect America Fund
10 Key Driver: Connect America Fund “.. the CAF-II subsidy program creates a tremendous opportunity to enhance our network and residential capabilities in the states in which we operate and will provide an attractive financial return for our stakeholders, all while supporting the FCC's long-term obj
Slide 11: Key Driver: Wireless Network Upgrades
11 Key Driver: Wireless Network Upgrades “In terms of capital spending, we continue investing for the capacity to further optimize our 4G LTE network and position the network for the future. Wireless capital spending totaled $3.1 billion in the quarter and $5.5 billion for the first half of the year
Slide 12: Local Credibility, National Capability
12 Local Credibility, National Capability Dycom headquarters Primary locations SubsidiariesDycom’s Nationwide Presence
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth xrhombus Anticipate emerging technology trends which drive capital spending xrhombus Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities xrhombus Selectively acquire busine
Slide 14: Well Established Customers
14 Well Established Customers Top Customers Dycom has established relationships with: head2right Telephone companies head2right Wireless carriers head2right Cable television multiple system operators head2right Electric utilities and others Customer Revenue Breakdown Q4-15 Blue-chip, investment grad
Slide 15: Durable Customer Relationships
15 Durable Customer Relationships $- $50 $100 $150 $200 $250 $300 $350 $400 $450 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 AT&T Comcast CenturyLink Verizon Charter Time Warner Cable Windstream Unnamed 33% 34% 33% 34% 34% 38% 40% 41% 42% 39% 67% 66% 67% 66% 66% 62% 60% 59% 58% 61% $
Slide 16: Anchored by Long-Term Agreements
16 Anchored by Long-Term Agreements xrhombus Dycom is party to hundreds of MSA’s and other arrangements with customers that extend for periods of one or more years xrhombus Generally multiple agreements maintained with each customer xrhombus Master Service Agreements (MSA’s) head2right Multi-year, m
Slide 17: Years of Robust Cash Flow Generation
17 10 Years of Robust Cash Flow Generation Sources and Uses of Cash ($ in millions) 62% 38% Notes: Amounts represent cumulative cash flow for fiscal 2006 – fiscal 2015; See “Regulation G Disclosure” slides as set forth in the Appendix for a summary of amounts. 1 Other cash flow includes borrowings,
Slide 18: Financial Update
Click to edit Master title style Click to edit Master subtitle style Financial Update
Slide 19: Financial Overview
19 Financial Overview xrhombus Strong fourth quarter operating performance head2right Contract revenues of $578.5 million in Q4-15 compared to $482.1 million in Q4-14 head2right Adjusted EBITDA - Non-GAAP of $88.5 million, or 15.3% of revenues in Q4-15, compared to $57.5 million, or 11.9% in Q4-14 h
Slide 20: Strong and sustained financial performance
20 Strong and sustained financial performance Contract Revenue Trend ($ in millions) Note: See “Regulation G Disclosure” slides as set forth in the Appendix for a reconciliation of GAAP to Non-GAAP financial measures. (1) Stimulus revenues comprised of projects funded in part by the American Recover
Slide 21: Earnings & Backlog
21 Earnings & Backlog ($ in millions) Notes: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (1) The amounts and percentages for Adjusted EBITDA are Non-GAAP financial measures adjusted to exclude certain items. See “Regulation G Disclosure” slides f
Slide 22: Cash Flows and Liquidity
22 Cash Flows and Liquidity ($ in millions) Cash Flow from Operations and Cap-ex, net (1) Notes: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (1) Capital expenditures, net of proceeds from asset sales represents capital expenditures less proceeds
Slide 23: Capital Allocated to Maximize Shareholder Returns
23 Capital Allocated to Maximize Shareholder Returns Strong balance sheet, solid cash flow and long-term confidence in industry outlook drives capital allocation strategy xrhombus Invest in organic growth head2right Organic revenue grew 9.6% in fiscal 2015, reflecting growth from several key custome
Slide 24: Questions & Answers
Click to edit Master title style Click to edit Master subtitle style Questions & Answers
Slide 25: Supplemental Schedules: Regulation G Disclosures
Click to edit Master title style Click to edit Master subtitle style Supplemental Schedules Regulation G Disclosures
Slide 26: Appendix: Regulation G Disclosure
26 Appendix: Regulation G Disclosure Notes: Amounts above may not add due to rounding. (1) Non-GAAP Organic Revenues are revenues from businesses that are included for the full period in both the current and prior year quarter, excluding storm restoration services, if any. Non-GAAP Organic Revenue g
Slide 27: Appendix: Regulation G Disclosure
27 Appendix: Regulation G Disclosure Notes: Amounts may not add due to rounding. 1 Other financing activities represents net cash provided by (used in) financing activities less repurchases of common stock. 2 Other investing activities represents net cash provided by (used in) investing activities l
Slide 28: Appendix: Regulation G Disclosure
28 Appendix: Regulation G Disclosure Notes: Amounts may not add due to rounding. 1 Organic Revenue – Non-GAAP are revenues from businesses that are included for the full period in both the current and prior year presented, excluding storm restoration services, if any. Organic Revenue growth is calcu
Slide 29: Appendix: Regulation G Disclosure
29 Appendix: Regulation G Disclosure Notes: Amounts above may not add due to rounding. *The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the most directly comparable GAAP measure. Adjusted EBITDA is a Non-GAAP financial measu
Slide 30: Appendix: Regulation G Disclosure
30 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in millions) Notes: Amounts above may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the mos
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
31 Reconciliation of GAAP to Non-GAAP Measures ($ in 000’s) Appendix: Regulation G Disclosure Notes: Amounts above may not add due to rounding. For the quarter ended July 26, 2014, the items reconciling GAAP to Non-GAAP financial measures are specifically described below: (1) Pre-tax charges for wag
Slide 32: Click to edit Master title style Click to edit Master subtitle style
Click to edit Master title style Click to edit Master subtitle style Investor Presentation October 2015
Dycom Industries — Investor Presentation (October 2015) on 6ix