Slide 1: D.A. Davidson 11th Annual Engineering & Construction Conference
Exhibit 99.1 D.A. Davidson 11th Annual Engineering & Construction Conference September 11, 2012
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and competitive environment. All statements, other than statements of historical facts,
Slide 3: Positioned for strong equity returns
Positioned for strong equity returns n A leading supplier of specialty contracting services to telecommunication providers nationwide n Telecommunications networks fundamental to economic progress n Firm end market opportunities Ø Wireless backhaul Ø Rural fiber networks Ø Fiber deployments to busin
Slide 4: Nationwide Footprint and Significant Resources
Nationwide Footprint and Significant Resources n Headquartered in Palm Beach Gardens, Florida n Nationwide footprint } Operates in 48 states and in Canada } 31 operating subsidiaries and hundreds of field offices n Fiscal 2012 fourth quarter revenues of $318.0 million grew organically 9.0% year over
Slide 5: Services Crucial to Customer Success
Services Crucial to Customer Success Outside Plant & Equipment Installation Engineering Wireless Services Premise Equipment Installation Underground Facility Locating 4
Slide 6: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Contract Revenue $318.0 million Quarter Ended July 28, 2012 5
Slide 7: Strong Secular Trend
Strong Secular Trend Sources: U.S. Telecom, The Broadband Association Cisco Visual Networking Index U.S. National Bureau of Economic Analysis “When the stability of an entire economy depends on the speed, intelligence, quality of service, robustness and security of its Internet backbone, will a just
Slide 8: Fiber deployments to wireless towers
Sources: FCC OBI Technical Paper 6, Mobile Broadband: The Benefits of Additional Spectrum “Our third key strategic initiative is investing in fiber builds to as many towers in our service area as economically feasible. This initiative supports anticipated long-term growth in data transport, much of
Slide 9: Key Driver: Rural Fiber Networks
Key Driver: Rural Fiber Networks The American Recovery and Reinvestment Act (ARRA) provided the Department of Commerce’s National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture’s Rural Utilities Service (RUS) with $7.2 billion to expand broadband serv
Slide 10: Key Driver: Fiber Deployments to Businesses
$3.9 Billion Sources: Company Filings Addressable Business Services Market Company Transcripts $53.5 Billion “…so give or take $700 million a year I think is the number for capital spending for business services. [….] That $700 million is powering a business that grew 40% the last several years and
Slide 11: Key Driver: Wireless Network Upgrades
Key Driver: Wireless Network Upgrades Sources: CTIA Collins Stewart, LLC “…We've had a volume surge that is hard to explain what's transpired. The last five years we've had literally in the mobile Internet traffic going across our network it's been a 20,000 percent increase in traffic, and we're see
Slide 12: Key Driver: FTTx Deployments
Key Driver: FTTx Deployments Sources: Company Filings “…our Prism TV service represents a very compelling entertainment alternative to cable TV services in the eight markets where it is currently available. We remain focused on expanding our Prism TV enabled footprint and in driving additional subsc
Slide 13: Local Credibility, National Capability
Local Credibility, National Capability Dycom’s Nationwide Presence Subsidiaries 12
Slide 14: Focused on High Value Profitable Growth
Focused on High Value Profitable Growth n Anticipating emerging technology trends which drive capital spending n Deliberately targeting high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities n Selectively acquiring businesses which comple
Slide 15: Well Established Customers
Well Established Customers Quarter Ended July 28, 2012 Customer Revenue Breakdown CenturyLink Other AT&T Cablevision Ericcson Frontier Comcast Charter Windstream Verizon Blue-chip, predominantly investment grade clients comprise the vast majority of revenue 14
Slide 16: Durable Customer Relationships
Durable Customer Relationships For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. 15
Slide 17: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements n Master Service Agreements (MSA’s) } Multi-year, multi-million dollar Revenue By Contract Type arrangements covering thousands of Quarter Ended July 28, individual work orders 2012 n Significant majority of contracts are based on units of delivery 16
Slide 18: Robust Cash Flow - Investing for Growth
Robust Cash Flow - Investing for Growth $436 million $347 million Capital Business expenditures, acquisitions $296 million net Share repurchases $238 million provided by other financing and investing activities and beginning cash on hand $1.079 Billion Available $841 million for Investment Cash flow
Slide 19: Capital Allocated to Maximize Shareholder Returns
Capital Allocated to Maximize Shareholder Returns n Organic growth, solid free cash flow and confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns n Acquisitions of NeoCom Solutions and Communication Services in FY 2011 supplement organic growth an
Slide 20: Financial Update
___ DYCOM INDUSTRIES INC.
Slide 21: Financial Overview
Financial Overview n Organic revenue growth of 9.0% during Q4-2012 n Strong margins and earnings n Stable balance sheet n Solid cash flows and liquidity n Capital structure designed to produce strong equity returns 20
Slide 22: Contract Revenue Growth
Contract Revenue Growth Organic growth trend since fiscal 2009 Six consecutive quarters of organic growth Growth within existing contracts and rural broadband projects driving revenue increases Quarterly results exhibit seasonal weather patterns Note: See “Regulation G Disclosure” slides for a recon
Slide 23: Margins and Earnings Expansion
Margins and Earnings Expansion Adjusted EBITDA expanding in recent periods as a percentage of revenue Earnings growth from higher revenues and tight cost controls Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (a)The amounts and percentages fo
Slide 24: Solid Cash Flow
Solid Cash Flow Solid cash flows support growth in operations Targeted capital spending supports organic growth and fleet efficiency (a) Capital expenditures are presented net of proceeds from the sale of assets. 23
Slide 25: Strong Balance Sheet
Strong Balance Sheet Financial profile positioned to address emerging industry opportunities n Fiscal 2021 maturity of Senior Subordinated Notes n Over $239 million of liquidity from cash on hand and availability under Senior Credit agreement n Repurchased $2.0 million of common shares during Q4-12
Slide 26: Supplemental schedules Regulation G Disclosures
Supplemental schedules Regulation G Disclosures
Slide 27: Regulation G Disclosure
Regulation G Disclosure (a) Year-over-year growth percentage is calculated as follows: (i) revenues in the current twelve month period less (ii) revenues in the comparative prior twelve month period; divided by (ii) revenues in the comparative prior twelve month period. (b) Non-GAAP adjustments in F
Slide 28: Year-over-year growth percentage notes
(a) Year-over-year growth (decline) percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (ii) revenues in the comparative prior year quarter period. (b) Q4-12 organic growth excludes storm restoration re
Slide 29: Regulation G Disclosure
Regulation G Disclosure The below table presents the Non-GAAP financial measures of EBITDA and Adjusted EBITDA for the respective periods. EBITDA and Adjusted EBITDA are Non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company
Slide 30: Regulation G Disclosure
4 Regulation G Disclosure Calculation of Cumulative Cash Flows Fiscal 2002 through Fiscal 2012 ($ in millions) Net Cash Cash Paid for Provided by Capital Expenditures, Acquisitions, Repurchases Total Other Operating Net of Proceeds from net of cash of Common Other Financing Other Investing Financing
Slide 31: D.A. Davidson 11th Annual Engineering & Construction Conference
D.A. Davidson 11th Annual Engineering & Construction Conference September 11, 2012
Slide 32: Slide 32