Slide 1: Fiscal 2014 2nd Quarter Presentation
Fiscal 2014 2nd Quarter Presentation February 26, 2014 Exhibit 99.2
Slide 2: Participants
2 Participants Steven E. Nielsen President & Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Counsel
Slide 3: Forward-looking statements and non-GAAP disclaimer
3 Fiscal 2014 second quarter results are unaudited. This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and the competitive environment. Other than statements of historical facts, all statemen
Slide 4: Q2-2014 Overview
4 Q2-2014 Overview See “Regulation G Disclosure” slides 13-16 for a reconciliation of GAAP to Non-GAAP financial measures. Adverse weather sharply impacted Q2-14 results Momentum from key customers Contract revenue of $390.5 million as compared to $369.3 million in Q2-13 Contract revenue gre
Slide 5: Revenue Summary
5 Revenue Summary Note: See “Regulation G Disclosure” slides 13-16 for a reconciliation of GAAP to Non-GAAP financial measures. Top 5 customers represented 59.5% of revenue in Q2-14 compared to 52.6% in Q2-13 AT&T, Dycom’s largest customer, grew organically 38.5% Comcast, Dycom’s third largest
Slide 6: Backlog and Awards
6 2,1578,207 8,111 8,001 10,135 10,349 10,822 11,107 10,410 0 3,000 6,000 9,000 12,000 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Employees from acquired subsidiaries Customers Description Area Approximate Term (in years) CenturyLink Construction and Maintenance Services New Jersey, Virginia,
Slide 7: Summary Results
7 (a) Q2-13 Non-GAAP Income and EPS exclude the impact of pre-tax acquisition related costs of $5.8 million and pre-tax write-off of deferred financing costs of $0.3 million. Note: See “Regulation G Disclosure” slides 13-16 for a reconciliation of GAAP to Non-GAAP financial measures. Summary Results
Slide 8: Selected Financial Information
8 Contract Revenues $ 390.5 $ 369.3 $ 21.2 Cost of Earned Revenues $ 327.4 $ 301.5 $ 25.8 83.83% 81.64% General & Administrative $ 38.6 $ 33.0 $ 5.6 (Non-GAAP Q2-13) Depreciation $ 18.7 $ 15.9 $ 2.8 Amortization $ 4.8 $ 5.0 $ (0.2) Interest Expense, net $ 6.8 $ 5.7 $ 1.1 Other Income, net (Non-GAAP
Slide 9: Cash Flow and Liquidity
9 $ 86.6 $ 63.5 $ - $ (314.8) $ (16.5) $ (15.7) $ (58.6) $ 238.8 $ (10.0) $ - Cash flow from Operations Capital expenditures, net of disposals Cash paid for acquisitions Borrowings (paydown) of debt Share repurchases Cash Flow and Liquidity Balance Sheet Strength Ample liquidity of $215.6 millio
Slide 10: Q3-2014 Outlook
10 Q3-2014 Outlook Contract Revenues $437.4 $415.0 - $435.0 Contract revenues impacted by adverse weather conditions in the beginning of Q3-14 Gross Margin % (as a percent of revenue) 18.2% Gross Margin % expands from Q3-13 result Gross margin % which expands from Q3-13 result Seasonal impact of
Slide 11: Looking Ahead to Q4-14
11 Looking Ahead to Q4-14 Looking Ahead Commentary Prior Period for 2014 Comparisons Q4-13 ($ in millions) Contract Revenues Low single digit total revenue growth resulting from: * continued wireline improvements by a key customer * cable construction which strengthens * services to wireless carrie
Slide 12: Looking Ahead
12 Looking Ahead Firm end market opportunities Telephone companies deploying FTTX to enable video offerings and 1 Gigabit connections Cable operators continuing to deploy fiber to small and medium businesses Wireless carriers upgrading from 3G to 4G technologies Industry participants aggress
Slide 13: Appendix: Regulation G Disclosure
13 Appendix: Regulation G Disclosure The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the most directly comparable GAAP measure. Adjusted EBITDA is a Non-GAAP financial measure within the meaning of Regulation G promulgated b
Slide 14: Appendix: Regulation G Disclosure
14 Appendix: Regulation G Disclosure For the quarter ended January 26, 2013 and July 27, 2013, the items reconciling "GAAP" to “Non-GAAP” financial measures are specifically described below: (a) Pre-tax acquisition related costs. (b) Pre-tax write-off of deferred financing costs. (c) Pre-tax charge
Slide 15: Organic Revenue definitions
15 (a) Organic Revenue – Non-GAAP are revenues from businesses that are included for the full period in both the current and prior year quarter presented, excluding storm restoration services, if any. Organic Revenue growth is calculated as the percentage increase in revenues over those of the compa
Slide 16: Appendix: Regulation G Disclosure
16 Amounts may not add due to rounding. Appendix: Regulation G Disclosure Contract Revenue and Organic Growth - Reconciliation of GAAP to Non-GAAP Measures ($ in millions). The table below reconciles GAAP revenue growth to Non-GAAP organic revenue growth . (a) Organic Revenue – Non-GAAP are revenues
Slide 17: Fiscal 2014 2nd Quarter Presentation
Fiscal 2014 2nd Quarter Presentation February 26, 2014