Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (March 2024)
24 slides from Dycom Industries's investor presentation, Mar 4, 2024
Slide 1: Investor Presentation March 2024
Investor Presentation March 2024
Slide 2: Important Information
Important Information Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarters ending April 27, 2
Slide 3: Dycom Overview
Dycom Overview • Leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States • Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to ec
Slide 4: Financial Highlights
Financial Highlights 4 8.9% 11.9% Contract Revenues Diluted EPSAdjusted EBITDA +9.6% +37.9% +55.5% 12.1% 9.6% Adjusted EBITDA % of Contract Revenues • Fiscal 2024 Annual Operating Performance: • Contract revenues of $4.176 billion • Non-GAAP Adjusted EBITDA of $504.8 million, or 12.1% of contract re
Slide 5: Strong Secular Trend
Strong Secular Trend 5 Data usage and download/upload speeds continue to increase as consumer behavior moves to streaming, video conferencing, and connected devices - Nick Jeffery, CEO Frontier Communications - February 2024 Provisioned Speed Tiers of Broadband Subscribers Weighted Average Data Cons
Slide 6: Industry Update
Industry Update The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry • Major industry participants are constructing or upgrading significant wireline networks across broad sections of the country • High-capacity fiber networks
Slide 7: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Dycom’s extensive market presence and complete lifecycle services offering have allowed the Company to be at the forefront of evolving industry opportunities • Telephone companies are deploying FTTH to enable gigabit high speed connections and rural ele
Slide 8: Fiber to the Home
Fiber to the Home • Analyst research indicates ~7 million homes were passed by network operators in 2023 and ~7.5M new passings are expected in 2024 • Fiber capex continues to increase as rural subsidized opportunities grow from both state and federally funded programs 8 Massive fiber investment con
Slide 9: 5G Deployment
5G Deployment 9 Over $80 billion in 5G Spectrum Investments • Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term • Emerging wireless technologies driving significant wireline deployments • Wireline de
Slide 10: Local Credibility, National Capability
Local Credibility, National Capability Nationwide footprint with 15,611 employees as of January 27, 2024 10 Operating Subsidiaries Corporate headquarters Subsidiary headquarters Branch location
Slide 11: Durable Customer Relationships
Durable Customer Relationships 11 Increasing customer breadth and opportunity 78% 74% 66% 67% 58% 22% 26% 34% 33% 42% $3,340 $3,199 $3,131 $3,808 $4,176 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 FY 2020 FY 2021 FY 2022 FY2023 FY2024 C u st o m e r C o n tr a ct R e v e n u e s
Slide 12: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 12 FY 2024 Revenue by Contract Type • 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
Slide 13: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation 13 Prudent approach to capital allocation: • $651 million invested in share repurchases • $375 million invested in business acquisitions • $1,411 million in CapEx, net of disposals Robust cash flow generation and prudent capital allocation provide strong foun
Slide 14: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Invest in Organic Growth • Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions • Selectively acquire businesses that further strengthen our customer relationships, geographic scope, and te
Slide 15: Committed to Sustainability
Committed to Sustainability 15 People Safety Environment Employees are our most important resource and are at the heart of everything we do. We strive every day to create the right environment for them to grow their skills, work collaboratively, and deliver our services at the highest quality to our
Slide 16: Financial Update
FINANCIAL UPDATE
Slide 17: Annual Trends
Annual Trends opyYcomM Contract Revenues Non-GAAP Adjusted EBITDA $4,176 $505 2 ‘$3,808 Pe & bested $3,199 $3,131, s $366 = 5 sso sant fl | - Fy 2020 Fv2021 Fy 2022 FY2023 Fy 2024 Fy2020 Fr2021 Fv2022 Fy 2023 Fv2028 MEE Non-GAAP Adjusted EBITDA © —=®=Non-GAAP Adjusted EBITDA % Non-GAAP Organic Growt
Slide 18: Quarterly Trends
Quarterly Trends ODYCOM Contract Revenues $1,136 $1,045 $1,082 ili lll 12023 022023 032023 042023 a12028 022024 a3 2024 042024 $ Millions Non-GAAP Adjusted EBITDA $ Millions 12023 022023 032023 042023 Q1224 022024 O3224 24226 Non-GAAP Organic Growth % 235% 21.4% 223% 95% aaa 28% 12023 22023 032023 Q
Slide 19: Debt and Liquidity Overview
Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility 19 • Robust liquidity of $703.6 million at Q4 2024 • Capital allocation prioritizes organic growth, followed by M&A and opportunistic share repurchases, within the context of the Company’s historical range
Slide 20: Cash Flow Overview
Cash Flow Overview 20 Operating Cash Flow • Strong operating cash flows of $259.0 million for fiscal 2024 • Capital expenditures, net of $183.3 million for fiscal 2024; Capital expenditures, net for fiscal 2025 anticipated at $220 - $230 million • Repurchased 485,000 common shares for $49.7 million
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS
Slide 22: This slide was used on February 28, 2024 in connection with the Company’s conference
22 This slide was used on February 28, 2024 in connection with the Company’s conference call for its fiscal 2024 fourth quarter results. This information is provided for your reference only and should not be interpreted as a reiteration of these projections by the Company at any time after the date
Slide 23: Notes
Notes 1. The Company’s backlog represents an estimate of services to be performed pursuant to master service agreements and other contractual agreements over the terms of those contracts. These estimates are based on contract terms and evaluations regarding the timing of the services to be provided.
Slide 24: Dycom - The people connecting America
VYDYCOM The people connecting America®
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