Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (September 2014)
34 slides from Dycom Industries's investor presentation, Sep 9, 2014
Slide 1: Investor Presentation September 2014
Investor Presentation September 2014 Exhibit 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Information
2 This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and the competitive environment. Other than statements of historical facts, all statements contained in this presentation, including state
Slide 3: Positioned for Strong Equity Returns
3 Positioned for Strong Equity Returns xrhombus A leading supplier of specialty contracting services to telecommunication providers nationwide xrhombus Telecommunications networks fundamental to economic progress xrhombus Firm end market opportunities head2right Telephone companies deploying FTTX to
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide Footprint and Significant Resources Notes: Total liquidity of $183.3 million includes cash and equivalents of $20.7 million and availability on Senior Credit Facility of $162.6 million as of July 26, 2014. xrhombus Headquartered in Palm Beach Gardens, Florida xrhombus Nationwide footpri
Slide 5: Intensely Focused on Telecommunications Market
5 xrhombus Outside Plant & Equipment Installation xrhombus Premise Equipment Installation xrhombus Wireless xrhombus Engineering xrhombus Underground Facility Locating Intensely Focused on Telecommunications Market Contract Revenues of $1.812 billion for Fiscal 2014 Services Crucial to Customers Suc
Slide 6: Industry Drivers Strong Secular Trend
6 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% GDP Traffic Industry Drivers Strong Secular Trend Sources: U.S. Telecom, The Broadband Association Cisco Visual Networking Index U.S. National Bureau of Economic Analysis North Am erica
Slide 7: Industry Developments
7 Industry developments are producing opportunities which in aggregate are unprecedented for the industry head2right Major industry participants have initiated significant wireline network deployments head2right Most participants believe newly deployed networks should provision 1 gigabit speeds Dyco
Slide 8: Key Driver: FTTx Deployments
8 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 6,000,000 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11 2Q 12 4Q 12 2Q 13 4Q 13 2Q 14 Verizon FiOS Video AT&T U-Verse Key Driver: FTTx Deployments Cumulative Subscribers “In our consumer business, y
Slide 9: Key Driver: Fiber to Businesses
9 $9.5B $20.0B $30.0 B $0.8B $2.3B $3.2 B Key Driver: Fiber to Businesses Business Services Revenue and Addressable Business Services Market “Additionally, in business services, revenue growth remains robust at 22% this quarter as we approach a $4 billion revenue run rate. The midmarket segment in b
Slide 10: Key Driver: Wireless Network Upgrades
10 Key Driver: Wireless Network Upgrades Number of Cell Sites “[..] what we have been concentrating on this year is really investing in the small cell technology, diversified antenna systems and in building coverage because you need that densification in the LTE network. So that is really where most
Slide 11: Key Driver: Wireless Backhaul
11 Key Driver: Wireless Backhaul Mobile Data Traffic Growth Relative to 2013 “…We also continue to see good growth in Ethernet services from our fiber-to-the-tower investments in our wholesale business, as we meet the growing data transport needs of wireless carriers.” Glen Post, CEO & President, Ce
Slide 12: Local Credibility, National Capability
12 Local Credibility, National Capability Dycom Headquarters Subsidiary Headquarters Dycom’s Nationwide Presence Subsidiaries
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth xrhombus Anticipate emerging technology trends which drive capital spending xrhombus Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities xrhombus Selectively acquire busine
Slide 14: Well Established Customers
14 19.2% 13.8% 11.7% 8.2%5.5% 5.3% 4.5% 3.2% 1.6%1.5% 25.6% Well Established Customers Blue-chip, predominantly investment grade clients comprise the vast majority of revenue FY-14 Customer Revenue Breakdown Comcast AT&T CenturyLink Verizon Windstream Charter Ericson Time Warner Cable Other Frontier
Slide 15: Durable Customer Relationships
15 Durable Customer Relationships Revenues ($ in millions) FY 2013 reflects the results of the businesses acquired in fiscal 2013, including the operations of the telecommunications infrastructure services subsidiaries acquired by Dycom on December 3, 2012 from Quanta Services, Inc. For comparison p
Slide 16: Anchored by Long-Term Agreements
16 Anchored by Long-Term Agreements Revenues by Contract Type Fiscal 2014 Master Service Agreements Long-term contracts Short-term contracts xrhombus Master Service Agreements (MSA’s) head2right Multi-year, multi-million dollar arrangements covering thousands of individual work orders head2right Gen
Slide 17: Robust Cash Flow
17 Robust Cash Flow Capital Investments FY2005 – FY 2014 ($ in millions) $883 million Cash flow from operations $484 million Provided by borrowings, other financing and investing activities and beginning cash on hand Cumulative Cash Flows Fiscal 2005 – Fiscal 2014 $1.368 Billion for Investment Notes
Slide 18: Financial Update
Financial Update
Slide 19: Financial Overview
19 Financial Overview xrhombus Fiscal 2014 Revenues of $1.812 billion xrhombus Backlog of $2.331 billion at July 26, 2014 xrhombus Solid margins and earnings xrhombus Strong balance sheet, cash flow and liquidity xrhombus Capital structure designed to produce strong equity returns
Slide 20: Contract Revenue Trend
20 2.4% 3.5% 6.2% 7.5% 10.0% 0.9% (3.8)% (0.7)% (2.4)% 4.0% 10.7% 12.6% 15.8% 4.6% (2.5)% 1.7% -10% -5% 0% 5% 10% 15% 20% 25% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Organic Growth % Organic Growth % - Excluding stimulus revenue $293 $314 $340 $356 $279 $76 $123 $139 $157 $112 $323 $369 $437
Slide 21: Earnings & Backlog
21 $40.4 $37.2 $44.0 $58.1 $63.2 $28.2 $39.6 $57.5 12.5% 10.1% 10.1% 12.1% 12.3% 7.2% 9.3% 11.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% $0 $10 $20 $30 $40 $50 $60 $70 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 E B I T D A - A d j u s t e d a s a % o f R e v e n u e Q u a r t e r l y A d j u s t e d
Slide 22: Cash Flows and Liquidity Support Growth
22 $54.1 $43.9 $65.1 $106.7 $84.2 $46.6 $49.2 $52.8 $58.8 $73.7 $- $20 $40 $60 $80 $100 $120 FY2010 FY2011 FY2012 FY 2013 FY'14 Cash Flow from Operations Cap-ex (net)(a) Cash Flows and Liquidity Cash Flow from Operations and Cap-ex, net ($ in millions) Liquidity ($ in millions) Q4-14 Q4-13 Cash Flow
Slide 23: Capital Allocated to Maximize Shareholder Returns
23 Capital Allocated to Maximize Shareholder Returns xrhombus Organic growth, solid free cash flow and confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns xrhombus Fiscal 2013 & 2014 acquisitions further strengthen our customer base, geographic s
Slide 24: Questions & Answers
Questions & Answers
Slide 25: Selected Information from Q4-14 Dycom Results Conference Call Materials
25 Selected Information from Q4-14 Dycom Results Conference Call Materials The following slides 26-27 were used on August 27, 2014 in connection with the Company’s conference call to discuss fiscal 2014 fourth quarter results and are included for your convenience. Reference is made to slide 2 titled
Slide 26: Q1-2015 Outlook
26 Q1-2015 Outlook This slide was used on August 27, 2014 in connection with the Company’s conference call to discuss fiscal 2014 fourth quarter results. Reference is made to slide 2 titled “Forward-Looking Statements and Non-GAAP Information” with respect to this slide. The information and statemen
Slide 27: Looking Ahead to Q2-15
27 Looking Ahead to Q2-15 This slide was used on August 27, 2014 in connection with the Company’s conference call to discuss fiscal 2014 fourth quarter results. Reference is made to slide 2 titled “Forward-Looking Statements and Non-GAAP Information” with respect to this slide. The information and s
Slide 28: Supplemental Schedules Regulation G Disclosures
Supplemental Schedules Regulation G Disclosures
Slide 29: Appendix: Regulation G Disclosure
29 Appendix: Regulation G Disclosure NON-GAAP ADJUSTMENTS GAAP % NON-GAAP - Organic % (a) NON-GAAP - Organic % excluding stimulus (a) (c) Q4-14 Organic Growth (Decline): Q4-14 482.1$ (9.5)$ -$ 472.6$ (23.8)$ 448.7$ 0.7% (0.7)% 1.7% Q4-13 478.6$ (2.6)$ -$ 476.1$ (34.8)$ 441.3$ Prior Quarters Organic
Slide 30: Appendix: Regulation G Disclosure - Cumulative Cash Flows
30 Notes: Amounts may not add due to rounding. (a) Other financing activities represents net cash provided by (used in) financing activities less repurchases of common stock. (b) (b) Other investing activities represents net cash provided by (used in) investing activities less capital expenditures,
Slide 31: Appendix: Regulation G Disclosure Notes
31 Notes: Amounts may not add due to rounding. (a) 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 calculated as the percentage increase
Slide 32: Appendix: Regulation G Disclosure - Annual Reconciliation
32 Fiscal 2010 Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014 Adjusting Items: Write-off of deferred financing costs -$ -$ -$ 0.3$ -$ (Loss) gain on debt extinguishment, net -$ 8.3$ -$ -$ -$ Charges for settlement of wage and hour l itigation 1.6$ 0.6$ -$ 0.5$ 0.6$ Reversal of certain income tax re
Slide 33: Appendix: Regulation G Disclosure - Quarterly Reconciliation
33 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in millions) Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Adjusting Items: Write-off of deferred financing costs -$ 0.3$ -$ -$ -$ -$ -$ -$ Charges for settlement of wage and hour l itigation
Slide 34: Investor Presentation September 2014
Investor Presentation September 2014
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