Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (March 2022)
24 slides from Dycom Industries's investor presentation, Mar 23, 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022 1 Exhibit 99.1
Slide 2: Important Information: Caution Concerning Forward-Looking Statements
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 quarter ending April 30, 2022 found within thi
Slide 3: Dycom Overview
Dycom Overview • Leading supplier of specialty contracting services to telecommunication providers throughout the US • Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to economic progress • Durable customer relations
Slide 4: Financial Overview
Financial Overview Fiscal 2022 Annual Operating Performance • Contract Revenues of $3.131 billion • Non-GAAP Adjusted EBITDA of $244.3 million, or 7.8% of contract revenues Backlog and Headcount as of January 29, 2022 (Q4 2022) • Total Backlog of $5.822 billion • Employee headcount of 15,000+ Liquid
Slide 5: Strong Secular Trend
Strong Secular Trend 5 • The monthly weighted average data consumed by subscribers in 4Q-21 was a record of 536.3 GB, up 11% from 4Q-20 • 83% of these subscribers are provisioned at speeds of 100+ Mbps • The gigabit subscriber tier exceeded 12% of all subscribers for the first time in 4Q-21, up from
Slide 6: Industry Update
Industry Update The industry 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
Slide 7: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Dycom’s extensive market presence and complete lifecycle services offering have allowed the Company to be at the forefront of evolving industry opportunities • Telephone companies are deploying FTTH to enable gigabit high speed connections and, increasi
Slide 8: Strong Tailwinds For Fiber Deployments
Strong Tailwinds For Fiber Deployments 8 FTTH Passings Outlook • Increasing consumer demand for bandwidth continues to drive fiber deployments • Fiber passings with telcos are poised to materially accelerate, with an estimated > 40 million premises to be connected to fiber through 2025; doubling cur
Slide 9: 5G Deployment
5G Deployment 9 Growth in Number of Small/Macro Cells • Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term • Hundreds of thousands of small cells will need to be deployed in the next few years to meet
Slide 10: Local Credibility, National Capability
Local Credibility, National Capability Nationwide footprint with more than 40 operating subsidiaries and 15,000+ employees 10 Operating Subsidiaries
Slide 11: Durable Customer Relationships
Durable Customer Relationships 11
Slide 12: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 12 FY 2022 Revenue by Contract Type Backlog2 • 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 maintained with each customer • Master Service Agreements (MSA’s) are m
Slide 13: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation 13 Prudent approach to capital allocation: • $581 million invested in share repurchases • $582 million invested in business acquisitions • $1,155 million in CapEx, net of disposals Robust cash flow generation and prudent capital allocation provide strong foun
Slide 14: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Invest in Organic Growth • Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions • Selectively acquire businesses that further strengthen our customer relationships, geographic scope, and te
Slide 15: Committed to Sustainability
Committed to Sustainability 15 • Built a program anchored to three core pillars – People, Safety and Environment – that are both important to our long-term success and important to our key stakeholders • Completed a baseline ESG materiality assessment that identified our top priorities • Established
Slide 16: Financial Update
FINANCIAL UPDATE — X.
Slide 17: Annual Trends
Annual Trends 17 $2,978 $3,128 $3,340 $3,199 $3,131 4 Qtrs Ended Jan 2018 FY 2019 FY 2020 FY 2021 FY 2022 Contract Revenues $ M il li o n s $383 $330 $310 $311 $244 12.9% 10.5% 9.3% 9.7% 7.8% 4 Qtrs Ended Jan 2018 FY 2019 FY 2020 FY 2021 FY 2022 Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA Non-
Slide 18: Quarterly Trends
Quarterly Trends 18 $814 $824 $810 $751 $727 $788 $854 $761 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Contract Revenues $ M il li o n s $70 $103 $93 $46 $44 $74 $83 $43 8.6% 12.5% 11.5% 6.1% 6.1% 9.4% 9.7% 5.7% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Non
Slide 19: Debt and Liquidity Overview
Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility 19 • Solid liquidity of $351.5 million at Q4 2022 • Sound credit metrics and no near term debt maturities • Capital allocation prioritizes organic growth, followed by opportunistic share repurchases and M&A
Slide 20: Cash Flow Overview
Cash Flow Overview 20 Operating Cash Flow • Robust operating cash flows of $145.5 million during Q4 2022 • Repurchased 600,000 common shares for $56.1 million at an average price of $93.55 per share during Q4 2022 • Capital expenditures, net of disposals, for fiscal 2023 anticipated at $180 - $190 m
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS 21
Slide 22: Outlook for Quarter Ending April 30, 2022 (Q1 2023)
Outlook for Quarter Ending April 30, 2022 (Q1 2023) 22 Q1 2023 Outlook: CONTRACT REVENUES Increase mid-to-high single digits as a percentage of contract revenues compared to Q1 2022 NON-GAAP ADJUSTED EBITDA % OF CONTRACT REVENUES Increases modestly as compared to Q1 2022 NON-GAAP ADJUSTED EFFECTIVE
Slide 23: Notes
Notes 1. Due to the change in the Company’s fiscal year end, the Company’s fiscal 2018 six month transition period consisted of Q1 2018 and Q2 2018. Amounts provided for the Four Quarters Ended January 27, 2018 represent the aggregate of Q3 2017, Q4 2017, Q1 2018, and Q2 2018 for comparative purpose
Slide 24: The people connecting America
The people connecting America® 24
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