Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (May 2019)
27 slides from Dycom Industries's investor presentation, May 29, 2019
Slide 1: Investor Presentation May/June 2019
Exhibit 99.1 Investor Presentation May/June 2019
Slide 2: Important Information: Caution Concerning Forward-Looking Statements
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: Agenda
Agenda • Dycom Overview • Industry Update & Drivers • Customer Focus & Services • Financial & Operational Highlights • Closing Thoughts • Q&A 3
Slide 4: 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 5: Strong Secular Trend
Strong Secular Trend North America Internet Protocol Traffic vs. GDP Growth Data Usage Growth & Broadband Speeds Weighted Average Data Consumed Provisioned Speed Tiers Sources: U.S. Telecom, The Broadband Association; Cisco Visual Networking Index; U.S. National Bureau of Economic Analysis Source: O
Slide 6: Industry Themes
Industry Themes Industry increasing network bandwidth dramatically Major industry participants deploying significant 1 gigabit wireline networks Emerging wireless technologies are driving significant wireline deployments Wireline deployments necessary to facilitate expected decades long deployment o
Slide 7: Industry Drivers
Industry Drivers Firm and strengthening end market opportunities Fiber deployments in contemplation of emerging 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
Slide 8: 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 Key customer committed to passing millions of new locations with fiber AT
Slide 9: 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 10: Key Driver: Fiber to Businesses
Key Driver: Fiber to Businesses Revenue earned by Comcast and Charter from Business Services totaled $13.6 Billion7 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, ther
Slide 11: 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 Q1 2020 Revenue by Customer Type: 91.3% 5.8% 2.9% Telecommunications Underground Electr
Slide 12: Local Credibility, National Capability
Local Credibility, National Capability Operating Subsidiaries
Slide 13: Well Established Customers
Well Established Customers Top 5 Customers Q1 2020 Organic growth: Q1 2020 Organic growth with the following customers: 15.8% 19.4% 3.0% 28.7% 47.2% 17.8% 38.0% Total Customers Top 5 Customers All Other Customers AT&T Verizon CenturyLink Windstream Established relationships with high quality, long-t
Slide 14: Durable Customer Relationships
Durable Customer Relationships 14
Slide 15: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements Revenue by Contract Type for Fiscal Q1 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 16: 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 17: Financial Update
Financial Update 17
Slide 18: Financial Overview
Financial Overview Strong market opportunities Contract revenues of $833.7 million in Q1 2020, increased organically 15.8% from the comparable prior period Non‐GAAP Adjusted EBITDA of $73.6 million, or 8.8% of revenue, for Q1 2020 Non‐GAAP Adjusted Diluted EPS of $0.53 per share for Q1 2020 Solid fi
Slide 19: Contract Revenue Trend
Contract Revenue Trend Annual Growth in Contract Revenues Quarterly Contract Revenues Annual Organic Revenue Trend Quarterly Organic Revenue Trend 19
Slide 20: Earnings
Earnings Non-GAAP Adjusted EBITDA Quarterly Non-GAAP Adjusted EBITDA Non-GAAP Adjusted Diluted EPS Quarterly Non-GAAP Adjusted Diluted EPS 20
Slide 21: Liquidity and Cash Flow
Liquidity and Cash Flow $ Millions January 26, 2019 April 27, 2019 Cash and equivalents $ 128.3 $ 33.6 Cash Flow from Operating Activities Senior Credit Facility, matures Oct 2023:4 Revolving Facility $ - $ - Term Loan Facilities 450.0 450.0 0.75% Convertible Senior Notes, mature Sept 2021: Notional
Slide 22: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Dycom is committed to maximizing long term returns through prudent capitol 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 23: Questions and Answers
Questions and Answers 23
Slide 24: Selected Information from Q1 2020 Dycom Results Conference Call Materials
Selected Information from Q1 2020 Dycom Results Conference Call Materials The following slides 25 & 26 were used on May 21, 2019 in connection with the Company’s conference call for its fiscal 2020 first quarter results and are included for your convenience. Reference is made to slide 2 titled “Impo
Slide 25: Outlook for Quarter Ending July 27, 2019 (Q2 2020)
Outlook for Quarter Ending July 27, 2019 (Q2 2020) $ MillionsQ1 (except2020 per Outlook share amounts) Other Expectations Outlook Outlook Q2 2019 Q2 2020 Q2 2019 Q2 2020 Contract revenues $799.5 $835 - $885 Depreciation $39.0 $41.1 - $41.9 GAAP Diluted Earnings per Common Share $0.94 $0.59 - $0.81 A
Slide 26: Looking Ahead to the Quarter Ending October 26, 2019 (Q3 2020)
Looking Ahead to the Quarter Ending October 26, 2019 (Q3 2020) $ MillionsQ1 (except2020 per Outlook share amounts) Other Expectations Outlook Outlook Q3 2019 Q3 2020 Q3 2019 Q3 2020 Contract revenues $848.2 Total revenue Depreciation $39.8 $41.7 - $42.5 growth % of Amortization $5.8 $5.3 low- to mid
Slide 27: Notes
Notes 1) Organic growth (decline) % adjusted for revenues from acquired businesses and storm restoration services, when applicable. Organic growth % in Q4 2017 adjusted for additional week in Q4 2016 resulting from the Company’s 52/53 week fiscal calendar. 2) Due to the change in the Company’s fisca