Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q3 2017 Earnings Presentation
21 slides from Dycom Industries's earnings presentation, May 24, 2017
Slide 1: 3rd Quarter Fiscal 2017 Results Conference Call
3rd Quarter Fiscal 2017 Results Conference Call May 24, 2017 Exhibit 99.2
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures Information
2 Forward Looking Statements and Non-GAAP Financial Measures 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 r
Slide 3: Participants and Agenda
3 Participants and Agenda 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 Agenda Introduction and Q3-17 Overview Industry Update Financial & Operational Highligh
Slide 4: Q3-17 Overview and Highlights
4 Strong demand and revenue growth Contract revenues of $786.3 million in Q3-17 compared to $664.6 million in Q3-16 Organic growth of 14.9% excluding contract revenues of acquired businesses not included for the entire period of Q3-17 and Q3-16 Strong operating performance Non-GAAP Adjuste
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 require incremental wireline deployments o A complementary wireline investment cycle is fundamental to applications enabled by fully
Slide 6: Revenue Highlights
6 Revenue Highlights Q3-17 organic growth of 14.9%, 10 straight quarters of double digit organic growth Revenues from Q3-17 Top 5 customers increased 25.2% organically. All other customers decreased 10.6% organically. Top 5 customers in each period represented 77.5% of revenues in Q3-17 compar
Slide 7: Customers, Backlog and Awards
7 Customers Description Area Approximate Term (in years) Verizon Engineering Services Massachusetts, Rhode Island, New York, Maryland, Virginia 2 Comcast Construction Services Pennsylvania, Maryland, Virginia, Georgia 1 Charter Construction & Maintenance Services California, Arizona, Florida 1-3 Col
Slide 8: Financial Highlights
8 As a % of Revenues 13.8% 13.8% Revenues of $786.3 million and organic growth of 14.9%. Revenues from acquired businesses contributed $23.0 million in Q3-17. There were no acquired revenues in Q3-16 for comparative purposes. Non-GAAP Adjusted EBITDA in-line year-over-year at 13.8% in Q3-17 and
Slide 9: Strong balance sheet and liquidity
9 Strong balance sheet and liquidity Liquidity Overview (a) Availability on Revolver presented net of $57.6 million for outstanding L/C’s under the Senior Credit Agreement at each of Q2-17 and Q3-17. Financial tables - $ in millions Solid operating cash flows * Amounts may not add due to rounding. T
Slide 10: Q4-2017 Outlook and Commentary
10 Q4-2016 Included for comparison Q4-2017 Outlook and Commentary # of Weeks in Fiscal Quarter 14 Weeks 13 Weeks 13 weeks in Q4-17 compared to 14 weeks in Q4-16 as a result of 52/53 week fiscal year Contract Revenues (See “Regulation G Disclosure” slide 20 for a reconciliation of GAAP to Non-GAAP
Slide 11: Looking Ahead to Q1-2018
11 Looking Ahead to Q1-2018 Q1-2017 Included for comparison Q1-2018 Outlook and Commentary Contract Revenues $ 799.2 Total revenue decline of low single digits compared to Q1-17 revenues Broad range of demand from several large customers 1 gigabit deployments, fiber deep cable capacity projects,
Slide 12: Conclusion
12 Conclusion Firm and strengthening end market opportunities Telephone companies deploying FTTH to enable video offerings and 1 gigabit connections Cable operators continuing to deploy fiber to small and medium businesses and enterprises with increasing urgency. Overall, cable capital expenditu
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: Non-GAAP Organic Contract Revenue Reconciliation
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 as (i) contract revenues less, (ii) revenues from acquired businesses in ea
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 Reconciliation
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 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 Net Income and Diluted EPS (comparison)
18 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) For comparison purposes for slides 10
Slide 19: Outlook – Non-GAAP Diluted Earnings per Common Share
19 Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Outlook – Non-GAAP Diluted Earnings per Common Share for the Three Months Ending July 29, 2017 Unaudited Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. general
Slide 20: Non-GAAP Organic Contract Revenue Outlook Comparison
20 Appendix: Regulation G Disclosure (a) Q4-16 included an incremental week required by our 52/53 week fiscal calendar. The Q4-16 Non-GAAP adjustment is calculated as (i) contract revenues less, (ii) revenues from acquired businesses in each applicable period, (iii) divided by 14 weeks. Use of Non-G
Slide 21: 3rd Quarter Fiscal 2017 Results Conference Call
3rd Quarter Fiscal 2017 Results Conference Call May 24, 2017