Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (March 2021)
23 slides from Dycom Industries's investor presentation, Mar 9, 2021
Slide 1: Investor Presentation March 2021
Investor Presentation March 2021 Exhibit 99.1
Slide 2: Important Information
Important Information 2 Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarter ending May 1, 2021 found within this
Slide 3: Dycom Overview
Dycom Overview 3 Operates throughout the continental United States Nationwide footprint with more than 40 operating subsidiaries and over 14,250 employees Strong revenue base and customer relationships Contract revenues of $3.199 billion for Fiscal 2021, compared to $3.340 billion for Fiscal 2020 No
Slide 4: Industry Update
4 Industry Update Major industry participants constructing or upgrading significant wireline networks across broad sections of the country generally designed to provision 1 gigabit network speeds directly to consumers or wirelessly using 5G technologies Industry effort to deploy high capacity fiber
Slide 5: Industry Drivers
Industry Drivers 5 Fiber deployments enabling new wireless technologies are underway in many regions of the country Telephone companies are deploying FTTH to enable 1 gigabit high speed connections and, increasingly, rural electric utilities are doing the same Cable operators are deploying fiber to
Slide 6: Data Usage Growth & Broadband Speeds
344 483 - 50 100 150 200 250 300 350 400 450 500 G ig a b y te s Weighted Average Data Consumed per Month 4Q-19 4Q-20 Strong Secular Trend 6 North America Internet Protocol Traffic vs. GDP Growth Strong and stable growth in IP traffic even in times of GDP decline Telecommunications networks fundamen
Slide 7: Key Driver: High Bandwidth Deployments
7 Key Driver: High Bandwidth Deployments Verizon AT&T When it comes to our 5G and investing our business, we have a big year in front of us in 2021. Again, we're going to almost double the amount of 5G Ultra Wideband sites. We're going to have 14,000 new sites coming in during 2021. That will enable
Slide 8: Key Driver: 5G Deployment
Key Driver: 5G Deployment 8 Growth in Number of Small Cells Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term Number of small cells are predicted to exceed 1,000,000 by 2027; hundreds of thousands of
Slide 9: Dycom is well-positioned to benefit from future growth opportunities
9 Dycom is well-positioned to benefit from future growth opportunities Complete Lifecycle Services Crucial to Customers’ Success PROCUREMENT INSTALLATION CONSTRUCTION ENGINEERING & DESIGN Wireline Wireless MAINTENANCE PROGRAM MANAGEMENT Fiscal 2021 Revenue by Customer Type: 89.1% Telecommunications
Slide 10: Local Credibility, National Capability Operating Subsidiaries
Local Credibility, National Capability Operating Subsidiaries
Slide 11: Well Established Customers
11 Well Established Customers Q4 2021 Organic Growth (Decline): (6.2)% (15.5)% 25.3% Total Customers Top 5 Customers All Other Customers 28.8% Comcast Top 5 customers represented 69.4% and 77.2% of contract revenues in Q4 2021 and Q4 2020, respectively Fiber construction revenue from electrical util
Slide 12: Durable Customer Relationships
Durable Customer Relationships 12 $ Millions 26% 23% 22% 22% 26% 74% 77% 78% 78% 74% $2,954 $2,978 $3,128 $3,340 $3,199 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2017 2018 2019 2020 2021 C u st o m e r C o n tr a ct R e ve n u e s Trailing Twelve Months Ended January2 Top 5 Customers
Slide 13: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 13 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 multi-year, multi-million dollar arrangements cov
Slide 14: 10+ Years of Robust Cash Flow Generation
Cap-Ex, net $1,053 Business Acquisitions $618 Share Repurchases $540 Cash on Hand, $96 Cash Flow from Operations $1,684 Other Cash Flow $431 Sources of Cash Uses of Cash 10+ Years of Robust Cash Flow Generation 14 Fiscal 2011 – Fiscal 2021 Robust cash flow generation and prudent capital allocation p
Slide 15: Financial Update
Financial Update
Slide 16: Financial Overview
Financial Overview 16 Strong market opportunities Solid financial profile Strong liquidity of $570.5 million at Q4 2021 Reduced notional net debt by $276.4 million during Fiscal 2021 Contract revenues of $3.199 billion for Fiscal 2021, compared to $3.340 billion for Fiscal 2020 Non-GAAP Adjusted EBI
Slide 17: Annual Trends
$3,067 $2,978 $3,128 $3,340 $3,199 FY 2017 4 Qtrs Ended Jan 2018 FY 2019 FY 2020 FY 2021 $ M il li o n s 2 $442 $383 $330 $310 $311 14.4% 12.9% 10.5% 9.3% 9.7% FY 2017 4 Qtrs Ended Jan 2018 FY 2019 FY 2020 FY 2021 Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA % $ M il li
Slide 18: Quarterly Trends
$834 $884 $884 $738 $814 $824 $810 $751 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 $ M il li o n s Quarterly Trends 18 Contract Revenues Non-GAAP Adjusted EBITDA $74 $100 $92 $45 $70 $103 $93 $46 8.8% 11.3% 10.4% 6.0% 8.6% 12.5% 11.5% 6.1% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Slide 19: Liquidity Overview
Debt Summary Q3 2021 Q4 2021 $ Millions 0.75% Convertible Senior Notes, mature Sept 2021: $ 58.3 $ 58.3 Senior Credit Facility, matures Oct 2023: 4 Term Loan Facility 427.5 421.9 Revolving Facility 85.0 105.0 Total Notional Amount of Debt $ 570.8 $ 585.1 Less: Cash and Equivalents 12.0 11.8 Notional
Slide 20: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns 20 Focus on organic growth opportunities through strategic capital investments in the business Dycom is committed to maximizing long term returns through prudent capital allocation Repurchased 25.2 million shares for approximately $758 million from fiscal 2006 t
Slide 21: Questions and Answers
21 Questions and Answers
Slide 22: Outlook
Outlook 22 For Q1 2022, as compared sequentially to Q4 2021, the Company expects contract revenues to range from in-line to modestly lower and Non-GAAP Adjusted EBITDA as a percentage of contract revenues to range from in-line to modestly higher The Company believes that, in addition to other factor
Slide 23: Notes
Notes 1) Organic growth (decline) % adjusted for revenues from acquired businesses, storm restoration services, and for the additional week of operations during the fourth quarter as a result of the Company’s 52/53 week fiscal year, when applicable. 2) Due to the change in the Company’s fiscal year
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