Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (September 2019)
26 slides from Dycom Industries's investor presentation, Sep 16, 2019
Slide 1: Investor Presentation September 2019
Investor Presentation September 2019
Slide 2: Important Information
Important Information Caution Concerning Forward-Looking Statements 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 revenu
Slide 3: Dycom Overview
Dycom Overview Leading supplier of specialty contracting services to telecommunication providers Operates throughout the continental United States Nationwide footprint with 44 operating subsidiaries and over 15,000 employees Strong revenue base, customer relationships and profitable results Contract
Slide 4: Strong Secular Trend
Strong Secular Trend North America Internet Protocol Traffic vs. GDP Growth Data Usage Growth & Broadband Speeds 10% 70,000 Weighted Average Data Provisioned Speed Tiers of Users Consumed per Month Consuming 250+ GB/Month 8% 60,000 6% 4% 50,000 c ) i e f h f g t a n n r a o 2% T h P M C 40,000 I r P
Slide 5: Industry Themes
Industry Themes Industry increasing network bandwidth dramatically Major industry participants constructing or upgrading significant wireline networks generally designed to provision 1 gigabit network speeds directly to consumers or wirelessly using 5G technologies Emerging wireless technologies are
Slide 6: Industry Drivers
Industry Drivers Firm and strengthening end market opportunities Fiber deployments enabling new wireless technologies are underway in many regions of the country Wireless construction activity in support of expanded coverage and capacity has begun to accelerate through the deployment of enhanced mac
Slide 7: Key Driver: High Bandwidth Deployments
Key Driver: High Bandwidth Deployments Telephone companies are deploying fiber to the home and fiber to the node technologies to enable video offerings and 1 gigabit connections Data transmission speeds dramatically increasing AT&T Verizon 16 14.0 ) s 14 n o 12.0 i l l i 12 11.0 M 10.0 n I ( 10 9.0
Slide 8: Key Driver: Wireless Network Upgrades
Key Driver: Wireless Network Upgrades Growth in Number of Cell Sites Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term Carriers enhancing coverage and capacity by increasing the number of small cells
Slide 9: Key Driver: Fiber to Businesses
Key Driver: Fiber to Businesses Revenue earned by Comcast and Charter from Business Services totaled $13.8 Billion9 of an Addressable Market of $70 billion Source: Comcast and Charter press releases and transcripts And now, a still pretty early push into enterprise, whereas we've talked before, Cabl
Slide 10: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Complete Lifecycle Services Crucial to Customers’ Success INSTALLATION MAINTENANCE Wireline Wireless PROCUREMENT PROGRAM CONSTRUCTION MANAGEMENT ENGINEERING & DESIGN Q2 2020 Revenue by Customer Type: 91.0% 6.1% 2.9% Telecommunications Underground Electr
Slide 11: Local Credibility, National Capability
Local Credibility, National Capability Operating Subsidiaries
Slide 12: Well Established Customers
Well Established Customers Top 5 Customers Q2 2020 Organic growth1: 11.1% 12.7% 5.5% Top 5 customers represented 78.6% and 77.9% of contract revenues in Q2 2020 and Q2 2019, respectively4 Total Customers Top 5 Customers All Other Customers Established relationships with high quality, long-term 39.1%
Slide 13: Durable Customer Relationships
Durable Customer Relationships 13
Slide 14: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements Revenue by Contract Type for Fiscal Q2 2020 Backlog3 Master Service Agreements Short-term contracts Long-term contracts Dycom is party to hundreds of MSA’s and other agreements with customers that extend for periods of one or more years Generally multiple agreements
Slide 15: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation $2,150 million $2,150 million Net Increase in Cash $106 Share Strong operating cash flow of Other Cash Flow Repurchases $724 $447 $1.425 billion over 10+ years Business Prudent approach to capital allocation: Acquisitions $618 $447 million invested in share r
Slide 16: Financial Update
Financial Update
Slide 17: Financial Overview
Financial Overview Strong market opportunities Contract revenues of $884.2 million for Q2 2020, compared to $799.5 million for Q2 2019 Non-GAAP Adjusted EBITDA for Q2 2020 of $100.2 million, or 11.3% of contract revenues, compared to $97.8 million, or 12.2% of contract revenues, for Q2 2019 Non-GAAP
Slide 18: Contract Revenue Trend
Contract Revenue Trend Annual Growth in Contract Revenues Quarterly Contract Revenues Annual Organic Revenue Trend Quarterly Organic Revenue Trend1 18
Slide 19: Earnings
Earnings Non-GAAP Adjusted EBITDA Quarterly Non-GAAP Adjusted EBITDA Non-GAAP Adjusted Diluted EPS Quarterly Non-GAAP Adjusted Diluted EPS 19
Slide 20: Liquidity and Cash Flow
Liquidity and Cash Flow Cash Flow from Operating Activities Balance sheet reflects the strength of our business Cash flow and borrowings used to support organic growth and capital expenditures during Q2 2020 Liquidity of $289.1 million at July 27, 2019 consisting of availability under Senior Credit
Slide 21: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Dycom is committed to maximizing long term returns through prudent capital allocation Invest in Pursue Complementary Share Organic Growth Acquisitions Repurchases Leverage our scale and expertise to Selectively acquire businesses that Repurchased 23.9 million sh
Slide 22: Questions and Answers
Questions and Answers 22
Slide 23: Selected Information from Q2 2020 Dycom Results Conference Call Materials
Selected Information from Q2 2020 Dycom Results Conference Call Materials The following slides 24 & 25 were used on August 28, 2019 in connection with the Company’s conference call for its fiscal 2020 second quarter results and are included for your convenience. Reference is made to slide 2 titled “
Slide 24: Outlook for Quarter Ending October 26, 2019 (Q3 2020)
Outlook for Quarter Ending October 26, 2019 (Q3 2020) $ MillionsQ1 (except 2020 per Outlookshare amounts) Outlook Outlook Q3 2019 Q3 2020 Q3 2019 Q3 2020 Contract revenues $848.2 $ 820 - $ 870 Depreciation $39.8 $41.8 - $42.6 GAAP Diluted Earnings per Common Share $0.87 $0.48 - $0.68 Amortization $5
Slide 25: Looking Ahead to the Quarter Ending January 25, 2020
Looking Ahead to the Quarter Ending January 25, 2020 (Q4 2020) $ MillionsQ1 (except 2020 per Outlookshare amounts) Outlook Outlook Q4 2019 Q4 2020 Q4 2019 Q4 2020 Contract revenues $748.6 Organic revenue Depreciation $40.5 $41.9 - $42.7 ranging from in-line Amortization $5.4 $5.2 For comparative pur
Slide 26: Notes
Notes 1) Organic growth (decline) % adjusted for revenues from acquired businesses and storm restoration services, when applicable. 2) Due to the change in the Company’s fiscal year end, the Company’s fiscal 2018 six month transition period consisted of Q1 2018 and Q2 2018. Amounts provided for the
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