Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q1 FY2018 Earnings Presentation
21 slides from Dycom Industries's earnings presentation, Nov 20, 2017
Slide 1: 1st Quarter Fiscal 2018 Results Conference Call
November 20, 2017 1st Quarter Fiscal 2018 Results Conference Call Exhibit 99.2
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures Information
2 Forward Looking Statements and Non-GAAP Financial Measures Information 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 r
Slide 3: Participants and Agenda
3 Participants Steven E. Nielsen President & Chief Executive Officer Timothy R. Estes Chief Operating Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Counsel Agenda Introduction and Q1-18 Overview Industry Update Financial & Operational Highlights Outlook Conclusion Q&
Slide 4: Q1-18 Overview
4 Strengthening market opportunities Contract revenues of $756.2 million in Q1-18, included $15.5 million in revenue from storm restoration services. Excluding revenue from an acquired business and storm restoration services, revenues declined 8.4% organically. Operating performance producing
Slide 5: Industry Update
5 Industry increasing network bandwidth dramatically Major industry participants deploying significant 1 gigabit wireline networks Emerging wireless technologies require incremental wireline deployments o A complementary wireline investment cycle is underway to facilitate applications enabled
Slide 6: Revenue Highlights
6 Revenue Highlights Q1-18 organic decline of 8.4%, impacted by near-term moderation in spending by a large customer Revenues from Q1-18 top 5 customers decreased 6.8% organically. All other customers decreased 12.7% organically. See “Regulation G Disclosure” slides 14-20 for a reconciliation of
Slide 7: Backlog and Awards
7 Backlog and Awards Notes: Our backlog estimates represent amounts under master service agreements and other contractual agreements for services projected to be performed over the terms of the contracts and are based on contract terms, our historical experience with customers and, more generally, o
Slide 8: Financial Highlights
8 As a % of Contract Revenues 16.2% 12.9% Revenues of $756.2 million in Q1-18 declined organically 8.4% from Q1-17 Near-term moderation in spending by a large customer During Q1-18, an acquired business contributed $8.6 million of revenue and storm restoration services contributed $15.5 millio
Slide 9: Strong balance sheet and liquidity
9 Strong balance sheet and liquidity Liquidity Overview (a) Availability on Revolver presented net of $48.7million L/C’s under the Senior Credit Facility at both Q4-17 and Q1-18 Financial tables - $ in millions Robust operating cash flows * Amounts may not add due to rounding. Total days sales outst
Slide 10: Q2-2018 Outlook and Commentary
10 Q2-2017 for comparison Q2-2018 Outlook and Commentary Contract Revenues $ 701.1 $ 645 - $ 675 Revenue from a large customer stabilizes after the decline in Q2-18 compared to Q2-17 Solid demand from several other large customers 1 gigabit deployments, fiber deep cable capacity projects, and
Slide 11: Looking Ahead to the Quarter Ended April 28, 2018 (Q1-2019)
11 Looking Ahead to the Quarter Ended April 28, 2018 (Q1-2019) Quarter ended April 29, 2017 for comparison Quarter ended April 28, 2018 (Q1-19) Outlook and Commentary Contract Revenues $ 786.3 Total revenue to range from in-line to a low single digit increase as a percentage of revenue compared to t
Slide 12: Fiscal Year Change
12 Fiscal Year Change In September 2017, the Company changed its fiscal year end from July to January Beginning with a six month transitional period ending January 27, 2018, the Company’s fiscal year will end on the last Saturday of January Fiscal year 2019 will be for the period from January
Slide 13: Conclusion
13 Conclusion Firm and strengthening end market opportunities Fiber deployments in contemplation of newly emerging wireless technologies have begun in many regions of the country. A significant number of new project initiations will occur in the near term. Wireless construction activity in suppo
Slide 14: Explanation of Non-GAAP Measures
14 Explanation of Non-GAAP Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, it may use or discuss Non-GAAP fin
Slide 15: Appendix: Regulation G Disclosure
15 Appendix: Regulation G Disclosure (a) Q4-16 contained 14 weeks as a result of our 52/53 week fiscal year as compared to 13 weeks in all other quarterly periods presented herein. The Q4-16 Non-GAAP adjustment is calculated independently for each comparative period as (i) contract revenues less, (i
Slide 16: Reconciliation: Non-GAAP Organic Contract Revenue
16 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Organic Contract Revenue – certain customers Unaudited ($ in millions) Use of Non-GAAP Financial Measures The Company reports its financial results in acco
Slide 17: Reconciliation: Non-GAAP Adjusted EBITDA
17 Notes: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted EBITDA Unaudited ($ in 000's) Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally acce
Slide 18: Reconciliation: Non-GAAP Adjusted Net Income and EPS
18 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings Per Share Unaudited ($ in 000's, except per share amounts) Use of Non-GAAP Financial Measures Th
Slide 19: Reconciliation: Non-GAAP Adjusted Net Income and EPS (comparison)
19 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings Per Share Unaudited ($ in 000's, except per share amounts) For comparison purposes for slides 10
Slide 20: Outlook – Non-GAAP Diluted Earnings per Common Share
20 Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Outlook – Non-GAAP Diluted Earnings per Common Share for the Three Months Ending January 27, 2018 Unaudited Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. gene
Slide 21: 1st Quarter Fiscal 2018 Results Conference Call
November 20, 2017 1st Quarter Fiscal 2018 Results Conference Call