Slide 1: 3rd Quarter Presentation
3rd Quarter Presentation May 25, 2011
Slide 2: 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 Participants
Slide 3: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information Forward-Looking Statements and Non-GAAP Information Fiscal 2011 third quarter results are unaudited. This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, e
Slide 4: Q3-2011 Overview
Q3-2011 Overview n Contract revenue of $252.4 million grew organically 2.7% year-over- year after adjusting for revenues from acquired companies n Non-GAAP income of $0.10 per share compared to $0.02 per share in the prior year n Backlog increased sequentially to $1.373 billion n Repurchased 1,278,1
Slide 5: Revenue Summary
Revenue Summary n Top 5 customers from Q3-11 represented 61.6% of revenue in Q3-11 and 61.2% of revenue in Q3-10 n Windstream became Dycom’s fifth largest customer in Q3-11 with organic growth of 47.1% n Organic revenue growth of 2.7% on an overall basis, with revenue from Top 5 customers up 3.2% an
Slide 6: Backlog and Awards
Customers Description Area Approximate Term (in years) n Windstream Engineering Services for Broadband Stimulus Iowa, Missouri, New York, Pennsylvania 2 n Windstream Construction Services for Broadband Stimulus Kentucky, Georgia, New Mexico, Oklahoma, Texas 2 n Verizon Construction and Maintenance S
Slide 7: Summary Results
Fully Diluted EPS - Non-GAAP Q3-10 Q3-11 $0.02 $0.10 Summary Results Note: See “Regulation G Disclosure” slides 11-12 for a reconciliation of GAAP to Non-GAAP financial measures. 8.9% Overall growth 2.7% Organic change
Slide 8: Q3-11 vs Q3-10 Income Statement Summary
Q3-11 Q3-10 Change (b) ($ in millions) Contract Revenues $252.4 $231.6 $20.7 Cost of Earned Revenues -Non-GAAP(a) $206.4 81.8% $191.3 82.6% $15.1 (0.8)% § Cost of earned revenues as a percentage of revenue decreased primarily as a result of improved labor efficiency, partially offset by a 40 basis p
Slide 9: Cash Flow and Liquidity
Cash Flow and Liquidity n Operating cash flows grew year-over-year reflecting improved operating results n Capital expenditures, net of disposals, were at $6.9 million n 1,278,100 shares repurchased for $21.3 million, or $16.63 per share n Availability on Senior Credit agreement increased sequential
Slide 10: Summary
Summary n Experienced the effects of an improving environment n Broadband stimulus awards accelerated throughout the quarter n Deployment of new technologies by cable operators which enable them to increase the effective bandwidth of their networks n Increasing number of industry participants aggres
Slide 11: Looking Ahead
Looking Ahead n Organic revenue which grows modestly generating high single digit to low double digit total growth n Margins and earnings which increase faster than revenues n Solid and growing cash flows dedicated to accretive acquisition opportunities and share repurchases as valuation and project
Slide 12: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure Amounts may not foot due to rounding. (a) Non-GAAP adjustments in Q3-11 and Q2-11 reflect revenues from businesses acquired during Q2-11. Non-GAAP adjustments in Q4-10 result from the Company’s 52/53 week fiscal year. The Q4-10 Non-GAAP adjustments reflect the impac
Slide 13: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure
Slide 14: Appendix: Regulation G Disclosure
a ; = oO Appendix: Regulation G Disclosure Mill owe Reconciliation of GAAP to Non-GAAP Measures (in 000s, except per share amounts) [ ‘Nine Months Ended April 30, 2071 1 [ ‘Nine Months Ended April 24, 2010 ] Reconciling Reconciling GAAP Items Non-GAAP GAAP Items Non-GAAP Contract revenues S721 S$ 3
Slide 15: Appendix: Regulation G Disclosure
3 rd Quarter Presentation May 25, 2011