Slide 1: Dycom Industries, Inc. Investor Presentation June 2016
DYCOM INDUSTRIES, INC. INVESTOR PRESENTATION JUNE 2016 Exhibit 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Information
2 Looking Statements and Non-GAAP 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 revenue, prospects, plans an
Slide 3: Overview
3 Overview Leading supplier of specialty contracting services to telecommunication providers nationwide Telecommunications networks fundamental to economic progress Firm and strengthening end market opportunities Telephone companies deploying FTTX to enable video offerings and 1 gigabit connection
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide footprint Operates in all 50 states, Washington, D.C. and in Canada Over 40 operating subsidiaries Strong revenue base and customer relationships Contract revenues of $664.6 million in Q3-16 and organic growth of 28.7% year-over-year Non-GAAP Adjusted EBITDA at 13.8% of revenue
Slide 5: Industry increasing network bandwidth dramatically
5 Industry increasing network bandwidth dramatically Major industry participants deploying significant wireline networks Newly deployed networks provisioning 1 gigabit speeds; speeds beyond 1 gigabit envisioned Industry developments have produced opportunities which in aggregate are without pr
Slide 6: Intensely Focused on Telecommunications Market
6 Intensely Focused on Telecommunications Market Outside Plant & Equipment Installation Premise Equipment Installation Wireless Engineering Underground Facility Locating Contract revenues of $664.6 million for Q3-16 Services Crucial to Customers’ Success Dycom is well-positioned to benefit
Slide 7: Strong Secular Trend
7 Strong Secular Trend “It took 32 years – from 1984 to 2016 – to generate the first zettabyte of IP traffic annually. However, as this year’s Visual Networking Index forecasts, it will take only three additional years to reach the next zettabyte milestone when there will be more than 2 zettabytes o
Slide 8: Key Driver: FTTx Deployments
8 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Verizon FiOS Video AT&T U-Verse 2010 2011 2012 2013 2014 2015 2016 Key Driver: FTTx Deployments “[T]hrough Project VIP, which ended about a year ago, we made a
Slide 9: Key Driver: Fiber to Businesses
9 Key Driver: Fiber to Businesses Sources: Company Press Releases and transcripts “We have fiber to -- we can give you fiber to your premise. We're doing that more and more. Let's do it for the businesses, so we went to the medium-size market and we're kind of just getting started there. And we just
Slide 10: Key Driver: Connect America Fund
10 Key Driver: Connect America Fund “CAF is a tremendous program. It's been a great public-private partnership for Windstream. We're going to provide over 400,000 locations with either basically underserved or unserved, 400,000 locations. It's frankly a fairly staggering amount of communities that a
Slide 11: Key Driver: Wireless Network Upgrades
11 Key Driver: Wireless Network Upgrades “[F]irst and most important is obviously network. So, when you think about the wireless network, the fiber network, that is really where our concentration is right now. With Wireless we continue to densify that LTE network, continue to spend capital at a pret
Slide 12: Dycom's Nationwide Presence
12 Local Credibility, National Capability Dycom headquarters Primary locations Subsidiaries Dycom’s Nationwide Presence
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth Anticipate emerging technology trends that drive capital spending Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities Selectively acquire businesses that complement o
Slide 14: Well Established Customers
14 Well Established Customers Top Customers Dycom has established relationships with: Telephone companies Wireless carriers Cable television multiple system operators Electric utilities and others Customer Revenue Breakdown Q3-16 Blue-chip, investment grade customers comprise a substantial p
Slide 15: Durable Customer Relationships
15 Durable Customer Relationships $- $50 $100 $150 $200 $250 $300 $350 $400 $450 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 AT&T Comcast CenturyLink Verizon Charter Time Warner Cable Windstream Unnamed 33% 34% 33% 34% 34% 38% 40% 41% 42% 39% 67% 66% 67% 66% 66% 62% 60% 59% 58% 61% $
Slide 16: Anchored by Long-Term Agreements
16 Anchored by Long-Term Agreements Dycom is party to hundreds of MSA’s and other arrangements with customers that extend for periods of one or more years Generally multiple agreements maintained with each customer Master Service Agreements (MSA’s) Multi-year, multi-million dollar arrangemen
Slide 17: 10+ Years of Robust Cash Flow Generation
17 10+ Years of Robust Cash Flow Generation Sources and Uses of Cash ($ in millions) Notes: Amounts represent cumulative cash flow for fiscal 2006 – Q3 of fiscal 2016; See “Regulation G Disclosure” slides as set forth in the Appendix for a summary of amounts. Amounts may not add due to rounding. 1 O
Slide 18: Financial Update
VDYCOM Financial Update
Slide 19: Strong operating results
19 Strong operating results Contract revenues of $664.6 million in Q3-16 compared to $492.4 million in Q3-15. Organic growth of 28.7% Non-GAAP Adjusted EBITDA of $91.9 million, or 13.8% of revenues in Q3-16, compared to $63.0 million, or 12.8% in Q3-15 Non-GAAP Adjusted Diluted EPS increased
Slide 20: Strong and sustained financial performance
20 Strong and sustained financial performance Contract Revenue Trend Annual Organic Revenue Trend Quarterly Contract Revenues Quarterly Organic Revenue Trend Annual Growth in Contract Revenues Financial charts - $ in millions See “Regulation G Disclosure” slides 28-34 for a reconciliation of GAAP to
Slide 21: Earnings
21 Earnings Non-GAAP Adjusted EBITDA Quarterly Adjusted EBITDA Non-GAAP Adjusted Diluted EPS Financial charts - $ in millions, except earnings per share amounts See “Regulation G Disclosure” slides 28-34 for a reconciliation of GAAP to Non-GAAP financial measures. Quarterly Non-GAAP Adjusted Diluted
Slide 22: Strong balance sheet and robust liquidity
22 Strong balance sheet and robust liquidity Liquidity and Cash Flow Financial tables - $ in millions No significant near-term debt maturities Senior Credit Facility matures April 2020 0.75% Senior Convertible Notes mature September 2021 On May 20, 2016, added $200 million incremental Term L
Slide 23: Capital Allocated to Maximize Returns
23 Capital Allocated to Maximize Returns Strong balance sheet, solid cash flow and long-term confidence in industry outlook drives capital allocation strategy Invest in organic growth Organic revenue grew 28.7 % in Q3-16, reflecting growth from several key customers Pursue complementary acquis
Slide 24: Questions and Answers
VDYCOM Questions and Answers
Slide 25: Selected Information from Q3-16 Conference Call Materials
Selected Information from Q3-16 Dycom Results Conference Call Materials The following slides 26-28 were used on May 25, 2016 in connection with the Company’s conference call to discuss fiscal 2016 third quarter results and are included for your convenience. Reference is made to slide 2 titled “Forwa
Slide 26: Q4-2016 Outlook and Commentary
26 Q4-2016 will have 14 weeks of operations as required by our 53 week fiscal calendar, compared to 13 weeks in Q4-2015 Q4-2015 Included for comparison Q4-2016 Outlook and Commentary (includes additional week of operations) Contract Revenues $ 578.5 $750 - $780 Broad range of demand from several l
Slide 27: Q1-2017 Outlook and Commentary
27 Q1-2016 Included for comparison Q1-2017 Outlook and Commentary Contract Revenues $ 659.3 Total revenue growth % in mid to high teens as a % of revenue compared to Q1-16 Broad range of demand from several large customers Robust 1 gigabit deployments, CAF II accelerating, core market share grow
Slide 28: Reconciliation of Non-GAAP Measures: Outlook Diluted EPS
28 Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Outlook – Diluted Earnings per Common Share Unaudited Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our qu
Slide 29: Appendix: Regulation G Disclosure
29 Appendix: Regulation G Disclosure Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, we may u
Slide 30: Calculation of Cumulative Cash Flows Fiscal 2006 through Q3 2016
30 Notes: Amounts may not add due to rounding. 1 Other financing activities represents net cash provided by (used in) financing activities less repurchases of common stock. 2 Other investing activities represents net cash provided by (used in) investing activities less capital expenditure, net of pr
Slide 31: Contract Revenues and Organic Growth Reconciliation
31 1 Non-GAAP adjustments in FY 2010 reflect adjustments in Q4-10 resulting from the Company’s 52/53 week fiscal year of $20.1 million. The Q4-10 Non-GAAP adjustments reflect the impact of the additional week in Q4-10 and are calculated by dividing contract revenues by 14 weeks. The result, represen
Slide 32: Non-GAAP Adjusted EBITDA Reconciliation (Annual)
32 Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Adjusting Items: Write-off of deferred financing costs -$ -$ 0.3$ -$ -$ Loss on debt extinguishment, net 8.3$ -$ -$ -$ -$ Charges for settlement of wage and hour l itigation 0.6$ -$ 0.5$ 0.6$ -$ Acquisition related costs 0.2$ -$ 6.8$ -$
Slide 33: Non-GAAP Adjusted EBITDA Reconciliation (Quarterly)
33 Notes: Amounts above may not add due to rounding. Use of Non-GAAP Financial Measures: The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules, conference calls, slide presentations, and w
Slide 34: Explanation of Non-GAAP Measures
34 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 35: Dycom Industries, Inc.
DYCOM INDUSTRIES, INC. INVESTOR PRESENTATION JUNE 2016