Dycom Industries, Inc. · NYSE:DY
Dycom Industries — D.A. Davidson 10th Annual Engineering & Construction Conference 2011
36 slides from Dycom Industries's conference presentation, Sep 20, 2011
Slide 1: D.A. Davidson 10th Annual Engineering & Construction Conference
Exhibit 99-1 D.A. Davidson 10th Annual Engineering & Construction Conference September 20-21, 2011
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Non-GAAP InformationInformation This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and competitive environment. All statements, other than statements o
Slide 3: Positioned for strong equity returns
Positioned for strong equity returns n A leading supplier of specialty contracting services to telecommunication providers nationwide n Telecommunications networks fundamental to economic progress n End market opportunities driving organic growth, margin expansion and increased earnings potential Ø
Slide 4: Nationwide Footprint and Significant Resources
Nationwide Footprint and Significant Resources n Headquartered in Palm Beach Gardens, Florida n Nationwide footprint } Operates in 48 states and in Canada } 31 operating subsidiaries and hundreds of field offices n Fiscal 2011 revenues of $1.036 billion grew organically 3.5% year over year, and over
Slide 5: Services Crucial to Customer Success
Services Crucial to Customer Success Outside Plant & Equipment Installation Engineering Wireless Services Premise Equipment Installation Underground Facility Locating 4
Slide 6: Contract Revenue $303.7 million Quarter Ended July 30, 2011
Contract Revenue $303.7 million Quarter Ended July 30, 2011 5
Slide 7: Strong Secular Trend
Strong Secular Trend Sources: U.S. Telecom, The Broadband Association Cisco Visual Networking Index U.S. National Bureau of Economic Analysis “When the stability of an entire economy depends on the speed, intelligence, quality of service, robustness and security of its Internet backbone, will a just
Slide 8: Key Driver: Wireless Backhaul
Key Driver: Wireless Backhaul “The returns associated with cell backhaul are very attractive, and they’re very attractive with a single tenant. As you can imagine, once you have that fat pipe up to that tower, there are multiple tenants that you can upsell to.” Mike Lovett, President and CEO, Charte
Slide 9: Key Driver: Rural Fiber Networks
Key Driver: Rural Fiber Networks The American Recovery and Reinvestment Act (ARRA) provided the Department of Commerce’s National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture’s Rural Utilities Service (RUS) with $7.2 billion to expand broadband serv
Slide 10: Key Driver: Fiber to Businesses
Key Driver: Fiber to Businesses Addressable Business Services Market Sources: Company Filings Company Transcripts $53.5 Billion The small and medium business market reachable by every U.S. cable company is $50 to $70 billion. Craig Moffett, Analyst, Sanford C. Bernstein & Co. - September 2010 •Emerg
Slide 11: Key Driver: Wireless Network Upgrades
Key Driver: Wireless Network Upgrades Sources: CTIA Collins Stewart, LLC “I would tell you that the range that we have for wireless CapEx - and really for the Company as a whole -- is sort of in this mid-teens as a percentage of revenue. And with the technology curves that we have coming in our busi
Slide 12: Key Driver: FTTx Deployments
Key Driver: FTTx Deployments Sources: Company Filings “…we’ll continue to push fiber closer to the customers. Yes, we’re using the fiber to the tower build to try to shorten the loops and get fiber to nodes at the same time, so that when you open the trench once and take fiber out to the tower, you’
Slide 13: Why Dycom?
Why Dycom? n Established customer relationships and reputation n Broad geographic coverage n Scale to satisfy customer time and service requirements n Access to capital n Responsive, local business units 12
Slide 14: Local Credibility, National Capability
Local Credibility, National Capability Dycom’s Nationwide Presence Subsidiaries 13
Slide 15: Focused on High Value Profitable Growth
Focused on High Value Profitable Growth n Positioned in front of emerging technology trends which drive capital spending n Deliberately targeting high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities n Selectively acquiring businesses wh
Slide 16: Well Established Customers
Well Established Customers Fiscal Year Ended July 30, 2011 Customer Revenue Breakdown Other AT&T Duke Xcel Energy Comcast Cablevision Energy Time Warner Cable Windstream CenturyLink Charter Verizon Blue-chip, predominantly investment grade clients comprise the vast majority of revenue 15
Slide 17: Durable Customer Relationships
Durable Customer Relationships For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. 16
Slide 18: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements n Master Service Agreements (MSA’s) Revenue By Contract Type } Multi-year, multi-million dollar Fiscal Year Ended July 30, 2011 arrangements covering thousands of individual work orders } Generally exclusive requirement contracts n Long-term contracts relate to speci
Slide 19: Robust Cash Flow - Investing for Growth
Robust Cash Flow - Investing for Growth $393 million $349 million Capital Business expenditures, acquisitions $284 million net Share repurchases $184 million provided by other financing and investing activities and beginning cash on hand $842 million Cash flow from operations Cumulative Cash Flows F
Slide 20: Capital Allocated to Maximize Shareholder Returns
Capital Allocated to Maximize Shareholder Returns n Organic growth, robust free cash flow and renewed confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns n Acquisitions of NeoCom Solutions and Communication Services in FY 2011 supplement organic
Slide 21: Financial Update
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Slide 22: Financial Overview
Financial Overview nOrganic revenue growth trends improving nMargins and earnings are expanding nStrong balance sheet nSolid cash flows and liquidity nCapital structure designed to produce strong equity returns 21
Slide 23: Organic Growth Returning
Organic Growth Returning n Organic revenue growth has increased since Q1-2010 reflecting improved operating environment and new contract awards n Organic growth accelerated in the second half of FY 2011 n NeoCom Solutions and Communication Services contributed aggregate revenues of $33.8 million in
Slide 24: Margins and Earnings Expanding
Margins and Earnings Expanding n FY 2011 EBITDA -Adjusted grew, driven by higher revenues and improved cost structure n Margins and earnings grew at a higher rate than revenue growth Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (a)The amount
Slide 25: Accelerating through Q3 and Q4
Accelerating through Q3 and Q4 n Growth in EBITDA-Adjusted % expanded during FY 2011 and improved each quarterly period n EBITDA -Adjusted growth contributes to bottom line expansion n Net income of $13.0 million,$0.38 per share in Q4-2011, represents highest quarterly earnings per share since the O
Slide 26: Strong Balance Sheet, Solid Cash Flow
Strong Balance Sheet, Solid Cash Flow n Financial profile positioned to address emerging industry opportunities } Fiscal 2021 maturity of Senior Subordinated Notes } Net debt to EBITDA-Adjusted of 1.3x suitable for growth (a) } Increasing availability on Senior Credit Agreement n Solid operating cas
Slide 27: Strategy for Success
Strategy for Success Organic Growth Higher Equity Returns Lower Share Count 26
Slide 28: Supplemental schedules: Regulation G Disclosures
Supplemental schedules Regulation G Disclosures
Slide 29: Regulation G Disclosure
Regulation G Disclosure Reconciliation of GAAP to Non-GAAP Measures Calculation of Organic Growth (including revenues from storm restoration services) ($ in millions) The reconciliation of contract revenues adjusted for revenues from acquired businesses and the incremental week in the fourth quarter
Slide 30: Regulation G Disclosure
Regulation G Disclosure = Reconciliation of GAAP to Non-GAAP Measures Calculation of Organic Growth (Decline) % (excluding revenues from storm restoration services) ($ in millions) The reconciliation of contract revenues adjusted for revenues from acquired businesses, revenues from storm restoration
Slide 31: Regulation G Disclosure
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 Company
Slide 32: Regulation G Disclosure
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 Company
Slide 33: Regulation G Disclosure
oe Regulation G Disclosure Calculation of EBITDA and EBITDA - Adjusted (Non-GAAP) as % of Contract Revenue GAAP EBITDA as % 01 Non-GAAP EBITDA - Adjusted Contract Contract EBITDA - Adjusted as % of Contract Revenues EBITDA (a) Revenue (a) Revenue ($ in millions) Annual Results: FY-11 $ 1,035.9 $ 106
Slide 34: Regulation G Disclosure
a a Regulation G Disclosure AN = Calculation of Cumulative Cash Flows Fiscal 2002 through Fiscal 2011 ($ in millions) Cash Paid Net Cash for Provided by Capital Expenditures,| |Acquisitions,| |Repurchases| Total Other Operating Net of Proceeds from net of cash of Common Other Financing Other Investi
Slide 35: D.A. Davidson 10th Annual Engineering & Construction Conference
D.A. Davidson 10th Annual Engineering & Construction Conference September 20-21, 2011
Slide 36: Slide 36
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