Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q2 2023 Earnings Presentation
14 slides from Dycom Industries's earnings presentation, Aug 24, 2022
Slide 1: Quarter 2 | Fiscal 2023 Results
Quarter 2 | Fiscal 2023 Results August 24, 2022
Slide 2: Participants and Agenda
Participants and Agenda Steven E. Nielsen President and Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Ryan F. Urness General Counsel • Q2 2023 Overview • Industry Update • Financial & Operational Highlights • Outlook • Closing Remarks • Q&A 2
Slide 3: Important Information
Important Information Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarters ending October 29, 2022 and January 2
Slide 4: Q2 2023 Overview
Q2 2023 Overview Contract Revenues • Contract revenues of $972.3 million increased 23.5% Operating Performance • Non-GAAP Adjusted EBITDA of $104.7 million, or 10.8% of contract Contract revenues, compared to $73.8 million, or 9.4% of contract revenues, in Revenues the year ago period • Diluted earn
Slide 5: Industry Update
Industry Update The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry • Major industry participants are constructing or upgrading significant wireline networks across broad sections of the country • High-capacity fiber networks
Slide 6: Contract Revenues
Contract Revenues Non-GAAP Organic Growth (Decline) %1 Top 5 Customers - % of Total Contract Revenues Q2 2022 Q2 2023 Q2 2023 Organic Growth: Top 5 customers represented 67.4% and 65.7% of contract revenues in Q2 2023 and Q2 2022, respectively 23.5% 26.6% 17.4% Total Customers Top 5 Customers All Ot
Slide 7: Backlog, Awards and Employees
Backlog, Awards and Employees Backlog3 Employee Headcount Customer Description of Services Area Term Selected Q2 2023 Awards Lumen Fiber Construction WA, OR, AZ, CO, MN 3 years and Extensions: Brightspeed Fiber Construction PA, NJ, VA, NC 1 year Verizon Construction & Maintenance PA 3 years Frontier
Slide 8: Financial Highlights
Financial Highlights Contract Revenues Non-GAAP Adjusted EBITDA Diluted EPS As % of Contract Revenues • Contract revenues of $972.3 million increased 23.5% • Non-GAAP Adjusted EBITDA of $104.7 million, or 10.8% of contract revenues • Diluted earnings per common share of $1.46 8
Slide 9: Debt and Liquidity Overview
Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility • Solid liquidity of $366.3 million at Q2 2023 • Capital allocation prioritizes organic growth, followed by opportunistic share repurchases and M&A, within the context of the Company’s historical range of n
Slide 10: Cash Flow Overview
Cash Flow Overview Operating Cash Flow 4 Qtrs Ended Q2 2023 • Operating cash flow used to support strong organic growth during Q2 2023 • Repurchased 104,030 common shares for $10.0 million during Q2 2023 10
Slide 11: Outlook
Outlook Q3 2023 (October 29, 2022): CONTRACT REVENUES INTEREST EXPENSE Increase low- to mid-teens as a percentage of $10.8 million contract revenues compared to Q3 2022 EFFECTIVE INCOME TAX RATE NON-GAAP ADJUSTED EBITDA % OF Approximately 26.5% CONTRACT REVENUES Increase modestly compared to Q3 2022
Slide 12: Closing Remarks
Closing Remarks We maintain significant customer presence throughout our markets and are encouraged by the breadth in our business Our extensive market presence has allowed us to be at the forefront of evolving industry opportunities • Telephone companies are deploying FTTH to enable gigabit high sp
Slide 13: Notes
Notes 1. Organic growth (decline) % adjusted for contract revenues from storm restoration services, and for the additional week of operations during the fourth quarter as a result of the Company’s 52/53 week fiscal year, when applicable. 2. Q2 2023 % of contract revenues for customers #6 through #10
Slide 14: The people connecting America
The people connecting America ® 14