Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (May 2024)
27 slides from Dycom Industries's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
DYCOM The people connecting America® Investor Presentation May 2024
Slide 2: Important Information
Important Information Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarter ending July 27, 202
Slide 3: Dycom Overview
Dycom Overview Leading provider of Nationwide Significant scale Durable customer specialty contracting footprint with $4.2 Billion relationships with well services to the established, leading 15,675+ employees of contract revenues & telecommunications $505 Million telecommunications across 560+ fiel
Slide 4: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Program Management From the smallest town to the largest city, we manage telecommunications projects that connect America Engineering Our integrated engineering teams work hand-in-hand with construction Dycom Industries, Inc. and logistics teams through
Slide 5: Fiscal 2024 Highlights
Fiscal 2024 Highlights Operating Performance Financial Snapshot • Revenue growth and margin expansion $ Millions, Except EPS FY 2024 FY 2023 Y/Y • Total Backlog of $6.364 billion as of Q1 2025 Contract Revenues $4,176 $3,808 9.6% Liquidity Organic Revenue Growth2 6.9% • Solid liquidity of $573.6 mil
Slide 6: Telecommunications Industry Overview
Telecommunications Industry Overview Dycom’s extensive market presence and complete lifecycle services offering have allowed the Company to be at the forefront of evolving industry opportunities The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunit
Slide 7: U.S. Homes with Fiber Passings
Telecommunications Industry Overview Massive fiber investment presents significant opportunities for sustained growth 150 140 U.S. Homes with Fiber Passings (a) • Increasing consumer demand for bandwidth continues to drive fiber 110 deployments (in Millions) 100 • Eventual fiber passings estimated t
Slide 8: Strong Secular Trend
Strong Secular Trend Data usage and download/upload speeds continue to increase as consumer behavior moves to streaming, video conferencing, and connected devices 100% 700 Gigabytes 605.8 90% 600 560.5 80% 70% 60% 50% 72% 66% 500 400 “ Consumers increasingly see the value of a fiber broadband connec
Slide 9: Key Driver: Fiber to the Home Deployments
Key Driver: Fiber to the Home Deployments Massive fiber investment continues • Analyst research indicates ~7 million homes were passed by network operators in 2023 and ~7.5M new passings are expected in 2024 • Fiber capex continues to increase as rural subsidized opportunities grow from both state a
Slide 10: Key Driver: US Government Spending on Communications Infrastructure
Key Driver: US Government Spending on Communications Infrastructure Selected US Government Programs: BEAD Funding Allocations by State Broadband, Equity, Access and Deployment (BEAD) Program Provides $42.5 billion to expand high-speed internet access to unserved and underserved rural America Approxi
Slide 11: Key Driver: Wireless Deployments
Key Driver: Wireless Deployments Wireless construction activity in support of newly available spectrum continues this year • Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term “ Recently, we passed 25
Slide 12: Local Credibility, National Capability
Local Credibility, National Capability Dycom combines local knowledge with national reach Operating Subsidiaries Corporate headquarters Subsidiary headquarters Branch location 12
Slide 13: Durable Customer Relationships
Durable Customer Relationships Increasing customer breadth and opportunity; well-established investment grade customers comprise a substantial portion of revenue 13
Slide 14: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements FY 2024 Revenue by Contract Type Backlog1 • 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 mult
Slide 15: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation Robust cash flow generation and prudent capital allocation provide strong foundation for returns Strong operating cash flows of $2.201 billion over 10+ years Prudent approach to capital allocation: • $651 million invested in share repurchases • $375 million i
Slide 16: Firm and strengthening end market opportunities
Firm and strengthening end market opportunities Encouraged that industry participants are committed to multi-year capital spending initiatives Telephone companies are deploying FTTH to enable gigabit high speed connections and rural electric utilities are doing the same Dramatically increased speeds
Slide 17: Financial Update
Financial Update ibe VA | ah
Slide 18: Annual Trends
Annual Trends Contract Revenues Non-GAAP Adjusted EBITDA $4,176 $505 $3,808 8 $3,131 & = = a a Fy 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 HEE Non-GAAP Adjusted EBITDA == Non-GAAP Adjusted EBITDA % Non-GAAP Organic Growth (Decline) % Non-GAAP Adjusted Diluted EPS? $7.37 21.8% $4.74 6.9% (0.2)%,
Slide 19: Quarterly Trends
Quarterly Trends $ Millions Contract Revenues $1,136 $1,142 1,042 $1,045 $1,042 | ; I : 922023 Q32023 942023 12024 22024 Q32024 942024 Qi 2025 Non-GAAP Adjusted EBITDA $167 $ Millions. 022023 032023 42023 012024 22024 032024 042024 Qi 2025 NEE Non-GAAP Adjusted EBITDA === Non-GAAP Adjusted EBITDA %
Slide 20: Debt and Liquidity Overview
Debt and Liquidity Overview Debt Summary Q4 2024 Q1 2025 $ Millions 4.50% Senior Notes, mature April 2029 $ 500.0 $ 500.0 Proforma liquidity is $707 million as 4 Senior Credit Facility, matures April 2026: of Q1 2025 with the expansion of the Term Loan Facility 315.0 310.6 capacity of Senior Credit
Slide 21: Cash Flow Overview
Cash Flow Overview Cash Flow Summary Q1 2024 Q1 2025 $ Millions Operating cash flow $ (85.1) $ (37.4) Capital expenditures, net of proceeds from sale of assets $ (33.6) $ (29.3) Cash paid for acquisitions, net of cash acquired $ - $ (13.0) Borrowings (Repayments) on Senior Credit Facility $ (4.4) $
Slide 22: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Dycom is committed to maximizing its long-term returns through prudent capital allocation Invest in Organic Growth Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions Selectively acquire b
Slide 23: Committed to Sustainability
Committed to Sustainability We believe that addressing sustainability risks and opportunities through our corporate strategy and operations allows us to best serve our stakeholders People Safety Environment Employees are our most We strive to ensure the Working together, we important resource and hi
Slide 24: Questions and Answers
Questions and Answers
Slide 25: Slide used on May 22, 2024 conference call
This slide was used on May 22, 2024 in connection with the Company’s conference call for its fiscal 2025 first quarter results. This information is provided for your reference only and should not be interpreted as a reiteration of these projections by the Company at any time after the date originall
Slide 26: Notes
Notes 1. The Company’s backlog represents an estimate of services to be performed pursuant to master service agreements and other contractual agreements over the terms of those contracts. These estimates are based on contract terms and evaluations regarding the timing of the services to be provided.
Slide 27: The People Connecting America
® The People Connecting America