Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (December 2020)
23 slides from Dycom Industries's investor presentation, Dec 2, 2020
Slide 1: Investor Presentation December 2020
Investor Presentation December 2020 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 January 30, 2021 found within
Slide 3: Dycom Overview
Dycom Overview 3 Operates throughout the continental United States Nationwide footprint with 44 operating subsidiaries and over 14,150 employees Strong revenue base and customer relationships Contract revenues of $810.3 million for Q3 2021, compared to $884.1 million for Q3 2020 Non-GAAP Adjusted EB
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 Cable operators are deploying fiber to small and medium businesses and enterprises, partly in anticipa
Slide 6: Strong Secular Trend: Data Usage Growth & Broadband Speeds
275 384 - 50 100 150 200 250 300 350 400 G ig a b y te s Weighted Average Data Consumed per Month 3Q-19 3Q-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 fundamental to e
Slide 7: Key Driver: High Bandwidth Deployments
7 Key Driver: High Bandwidth Deployments Verizon AT&T At the same time, we launched 55 cities on ultra-wideband so far this year, and we are up to 60 before year-end. And that's of course the capacity and experience layers that we're building right now. And we're so pleased that the ecosystem is fol
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 Q3 2021 Revenue by Customer Type: 89.0% Telecommunications 7.3%
Slide 10: Local Credibility, National Capability Operating Subsidiaries
Local Credibility, National Capability Operating Subsidiaries
Slide 11: Well Established Customers
11 Well Established Customers Top 5 Customers - % of Total Contract Revevenues Q3 2021 Organic growth (decline)1: (9.4)% (15.4)% 11.1% Total Customers Top 5 Customers All Other Customers 9.0% Q3 2021 % of contract revenues from customers #6 through #10: 2.4% 2.3% 2.3% 1.6% 0.9% Comcast Customer #6 F
Slide 12: Durable Customer Relationships
41% 40% 34% 26% 23% 59% 60% 66% 74% 77% $2,290 $2,954 $2,978 $3,128 $3,340 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2016 2017 2018 2019 2020 C u st o m e r C o n tr a ct R e v e n u e s Trailing Twelve Months Ended January2 Top 5 Customers All Other Customers Durable Customer Relatio
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
10+ Years of Robust Cash Flow Generation 14 Fiscal 2010 – Fiscal 2020 Robust cash flow generation and prudent capital allocation provide strong foundation for returns Strong operating cash flow of $1.357 billion over 10+ years Prudent approach to capital allocation: $444 million invested in share re
Slide 15: Financial Update
Financial Update
Slide 16: Financial Overview
Financial Overview 16 Strong market opportunities Contract revenues of $810.3 million for Q3 2021, compared to $884.1 million for Q3 2020 Non-GAAP Adjusted EBITDA for Q3 2021 of $92.8 million, or 11.5% of contract revenues, compared to $91.7 million, or 10.4% of contract revenues, for Q3 2020 Non-GA
Slide 17: Annual Trends
$390 $442 $384 $330 $310 14.6% 14.4% 12.9% 10.5% 9.3% FY2016 FY2017 4 Quarters Ended Jan. 2018 FY2019 FY2020 $ M il li o n s Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA as a % of Revenue $2,673 $3,067 $2,978 $3,128 $3,340 FY2016 FY2017 4 Quarters Ended Jan. 2018 FY2019 FY2020 $ M il li o n s A
Slide 18: Quarterly Trends
Quarterly Trends 18 $749 $834 $884 $884 $738 $814 $824 $810 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 $ M il li o n s $60 $74 $89 $92 $45 $70 $103 $93 8.0% 8.8% 10.2% 10.4% 6.0% 8.6% 12.5% 11.5% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Non-GAAP Adjusted E
Slide 19: Liquidity Overview
Liquidity Overview 19 Reduced notional net debt by $467.4 million since Q3 2020, including a Q3 2021 reduction of $110.1 million During Q3-2021: Generated solid free cash flow Repaid $115.0 million on Revolver Repaid $5.6 million of Term Loan borrowings Strong liquidity6 of $587.1 million at Q
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 23.9 million shares for approximately $658 million since fiscal 2006
Slide 21: Questions and Answers
21 Questions and Answers
Slide 22: Outlook
Outlook 22 For the quarter ending January 30, 2021 (which includes an additional week of operations due to the Company’s 52/53 week fiscal year), the Company expects modestly lower contract revenues with margins that range from in-line to modestly higher, as compared to the quarter ended January 25,
Slide 23: Notes
Notes 1) Organic growth (decline) % adjusted for revenues from acquired businesses and storm restoration services, when applicable. 2) Due to the change in the Company’s fiscal year end, the Company’s fiscal 2018 six month transition period consisted of Q1 2018 and Q2 2018. For comparative purposes
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