Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q1 FY2016 Earnings Presentation
20 slides from Dycom Industries's earnings presentation, Nov 24, 2015
Slide 1: Fiscal 2016 - 1st Quarter Presentation
DYCOM INDUSTRIES, INC. Fiscal 2016 - 1st Quarter Presentation November 24, 2015 Exhibit 99.2
Slide 2: Forward Looking Statements and Non-GAAP Information
2 Forward Looking Statements and Non-GAAP Information 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,
Slide 3: Participants and Agenda
3 Participants and Agenda Introduction and Q1-16 Overview Industry Update Financial & Operational Highlights Outlook Conclusion Q&A Steven E. Nielsen President & Chief Executive Officer Timothy R. Estes Chief Operating Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Co
Slide 4: Strong first quarter performance
4 Strong first quarter performance Contract revenues of $659.3 million in Q1-16 compared to $510.4 million in Q1-15. Organic growth of 21.9% excluding contract revenues of businesses not included for the entire period of Q1-16 and Q1-15 Non-GAAP Adjusted EBITDA of $105.7 million, or 16.0% of r
Slide 5: Industry Update
5 Industry increasing network bandwidth dramatically Major industry participants deploying significant wireline networks Newly deployed networks provisioning 1 gigabit speeds; speeds beyond 1 gigabit envisioned Industry developments are producing opportunities which in aggregate are without pr
Slide 6: Revenue Highlights
6 Top 5 customers represented 64.9% of revenues in Q1-16 compared to 59.4% in Q1-15 All Top 5 customers with double digit organic growth during Q1-16: AT&T - 15.4% CenturyLink - 16.5% Comcast - 21.8% Verizon - 71.2% Unnamed customer - 120.9% Revenue Highlights Organic growth of 21.9%
Slide 7: Backlog and Awards
7 Customers Description Area Approximate Term (in years) AT&T Construction and Maintenance Services North Carolina, South Carolina, Georgia, Florida 3 Windstream Construction and Maintenance Services North Carolina 3 Comcast Construction and Maintenance Services Washington 2 Verizon Engineering Serv
Slide 8: Financial Highlights
8 As a % of Revenues 13.0% 16.0% Revenues of $659.3 million, organic growth of 21.9% year-over-year. Recently acquired businesses contributed $39.5 million in Q1-16 as compared to $1.9 million in Q1-15 Non-GAAP Adjusted EBITDA increased to 16.0% of revenue in Q1-16 compared to 13.0% in Q1-15 G
Slide 9: Q1-16 Financing Transactions
9 Q1-16 Financing Transactions $485 million Senior Convertible Notes, 0.75% coupon, due 2021 (“Notes”) Value allocated between debt and equity components on issuance Debt discount of $116.4 million amortizes as GAAP interest expense over the 6-year term of the Notes, but will not require cash in
Slide 10: Cash Flow and Liquidity
10 Balance sheet reflects the strength of our business Operating cash flows used $28.9 million including outflows of $19.1 million for the redemption of our 7.125% Senior Subordinated Notes. Remaining operating cash flow funded strong organic growth. Capital expenditures, net of disposals, of
Slide 11: Looking Ahead to Q2-2016
11 Q2-2015 Included for comparison Q2-2016 Outlook and Commentary Contract Revenues $ 441.1 $ 530 - $ 550 Expectation of normal winter weather patterns Broad range of demand from several large customers Robust 1 gigabit deployments, CAF II launches, core market share growth Total revenue exp
Slide 12: Looking Ahead to Q3-2016
12 Looking Ahead to Q3-2016 Q3-2015 Included for comparison Q3-2016 Outlook and Commentary Contract Revenues $ 492.4 Total revenue growth % in high teens or slightly better as % of revenue compared to Q3-15 Broad range of demand from several large customers Robust 1 gigabit deployments, CAF II u
Slide 13: Conclusion
13 Conclusion Firm and strengthening end market opportunities Telephone companies deploying FTTX to enable video offerings and 1 gigabit connections Cable operators continuing to deploy fiber to small and medium businesses with overall cable capital expenditures, new build opportunities, and cap
Slide 14: Appendix: Regulation G Disclosure - Organic Revenue
14 Appendix: Regulation G Disclosure Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, we may u
Slide 15: Regulation G Disclosure - Adjusted EBITDA
15 Notes: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted EBITDA Unaudited ($ in 000's) Appendix: Regulation G Disclosure Use of Non-GAAP Financial Measures The Company reports its financial results in a
Slide 16: Regulation G Disclosure - Organic Revenue by Customer
16 Note: Amounts above may not add due to rounding. Appendix: Regulation G Disclosure Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Organic Revenue – certain customers Unaudited ($ in millions) Use of Non-GAAP Financial Measures The Company reports its
Slide 17: Regulation G Disclosure - Adjusted Net Income and EPS
17 Appendix: Regulation G Disclosure Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Earnings Per Share Unaudited ($ in 000's, except per share amounts) Use of Non-
Slide 18: Regulation G Disclosure - Guidance Diluted EPS
18 Appendix: Regulation G Disclosure Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Guidance – Diluted Earnings per Common Share Unaudited Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted acco
Slide 19: Explanation of Non-GAAP Measures
19 Appendix: Regulation G Disclosure Explanation of Non-GAAP Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts,
Slide 20: Dycom Industries, Inc. Fiscal 2016 - 1st Quarter Presentation
DYCOM INDUSTRIES, INC. Fiscal 2016 - 1st Quarter Presentation November 24, 2015