Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q2 FY2018 Earnings Presentation
22 slides from Dycom Industries's earnings presentation, Feb 28, 2018
Slide 1: 2nd Quarter Fiscal 2018 Results Conference Call
February 28, 2018 2nd Quarter Fiscal 2018 Results Conference Call Exhibit 99.2
Slide 2: Forward Looking Statements, Non-GAAP Financial Measures and Other Information
2 Forward Looking Statements, Non-GAAP Financial Measures and Other 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, f
Slide 3: Participants and Agenda
3 Participants Steven E. Nielsen President & Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Counsel Agenda Introduction and Q2-18 Overview Industry Update Financial & Operational Highlights Outlook Conclusion Q&A Participants and Agenda 3
Slide 4: Strengthening market opportunities despite near-term revenue declines
4 Strengthening market opportunities despite near-term revenue declines Contract revenues of $655.1 million in Q2-18, included $19.6 million of revenue from storm restoration services. Excluding revenue from storm restoration services and from an acquired business, revenues declined 10.6% organi
Slide 5: Industry increasing network bandwidth dramatically
5 Industry increasing network bandwidth dramatically Major industry participants deploying significant 1 gigabit wireline networks Emerging wireless technologies, in and of themselves, are driving significant wireline deployments o A complementary wireline investment cycle is underway to facil
Slide 6: Revenue Highlights
6 Revenue Highlights Q2-18 organic decline of 10.6% Top 5 customers decreased 8.5% organically, impacted by the expected moderation spending by a large customer in Q2-18 All other customers decreased 16.6% organically See “Regulation G Disclosure” slides 13-21 for a reconciliation of GAAP to N
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 contracts. These estimates are generally based on contract terms and assessments regarding the timing of the s
Slide 8: Financial Highlights
8 As a % of Contract Revenues 12.3% 9.1% Revenues of $655.1 million in Q2-18 declined organically 10.6% from Q2-17 Moderation in Q2-18 from a large customer and declines from certain other customers Solid growth by two Top 5 customers During Q2-18, storm restoration services contributed $19.
Slide 9: Strong balance sheet and liquidity
9 Strong balance sheet and liquidity Liquidity Overview (a) Availability on Revolver presented net of $48.7 million and $48.6 million L/C’s under the Senior Credit Facility at Q1-18 and Q2-18, respectively Financial tables - $ in millions Robust operating cash flows Balance sheet reflects the stre
Slide 10: Annual Outlook for Fiscal Year Ending January 26, 2019
10 Trailing 4 Quarters Ended Jan. 27, 2018 Outlook Fiscal 2019 Contract Revenues $ 2,978 $ 3,300 - $ 3,500 Diluted Earnings per Common Share – GAAP $ 4.74 $ 4.78 - $ 5.70 Non-GAAP Adjusted Diluted Earnings per Common Share $ 3.88 $ 5.22 - $ 6.14 Non-GAAP Adjusted EBITDA % 12.9% 13.6% -14.1% Annual O
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) See “Regulation G Disclosure” slides 13-21 for a reconciliation of GAAP to Non-GAAP financial measures. Financial table- $ in millions, except earnings per share amounts (% as a percent of contract revenues, except as noted for Effective
Slide 12: Conclusion
12 Conclusion Firm and strengthening end market opportunities Fiber deployments in contemplation of emerging wireless technologies have begun in many regions of the country. A significant number of new project initiations will continue to occur in the near term. Wireless construction activity in
Slide 13: Explanation of Non-GAAP Measures
13 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 14: Appendix: Regulation G Disclosure - Non-GAAP Organic Contract Revenue
14 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 15: Non-GAAP Organic Contract Revenue – certain customers
15 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 16: Non-GAAP Adjusted EBITDA
16 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 17: Non-GAAP Adjusted Net Income and Adjusted Diluted EPS
17 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 18: Non-GAAP Adjusted EBITDA
18 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 19: Non-GAAP Adjusted Net Income and Adjusted Diluted EPS
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) Use of Non-GAAP Financial Measures Th
Slide 20: Outlook – Non-GAAP Diluted EPS for Fiscal 2019 and Q1-19
20 Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Outlook – Non-GAAP Diluted Earnings per Common Share for Fiscal 2019 and Quarter Ending April 28, 2018 (Q1-19) Unaudited Use of Non-GAAP Financial Measures The Company reports its financial results in accordance w
Slide 21: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA Guidance
21 Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Reconciliation of Net Income to Non-GAAP Adjusted EBITDA based on the Midpoint of Earnings per Common Share ("EPS") Guidance for Fiscal 2019 and Quarter Ending April 28, 2018 (Q1-19) (Dollars in millions) Unaudite
Slide 22: 2nd Quarter Fiscal 2018 Results Conference Call
February 28, 2018 2nd Quarter Fiscal 2018 Results Conference Call