Slide 1: Fiscal 2014 3rd Quarter Presentation
Fiscal 2014 3rd Quarter Presentation May 21, 2014 Exhibit 99.2
Slide 2: Participants
2 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
Slide 3: Forward-Looking Statements
3 Fiscal 2014 third 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 statement
Slide 4: Q3-2014 Overview
4 Q3-2014 Overview See “Regulation G Disclosure” slides 14-17 for a reconciliation of GAAP to Non-GAAP financial measures. Contract revenue of $426.3 million as compared to $437.4 million in Q3-13 Severe weather during the first two thirds of the quarter Certain customers started calendar 2014
Slide 5: Industry Update
5 Clearly evident that several major industry participants have determined that wireline network bandwidth must increase dramatically Dycom is providing services for 1 gigabit trials and full deployments Services provided across the country to a number of customers Revenue and opportunities dr
Slide 6: Revenue Summary
6 9.0% 2.4% 3.5% 6.2% 7.5% 10.0% 0.9% (3.8)% 1.9% (2.4)% 4.0% 10.7% 12.6% 15.8% 4.6% (2.5)% -10% -5% 0% 5% 10% 15% 20% 25% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Organic Growth % Organic Growth % - Excluding stimulus revenue Revenue Summary Note: See “Regulation G Disclosure” slides 14-17 f
Slide 7: Backlog and Awards
7 2,1578,111 8,001 10,135 10,349 10,822 11,107 10,410 10,324 0 3,000 6,000 9,000 12,000 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Employees from acquired subsidiaries Customers Description Area Approximate Term (in years) Comcast Construction and Maintenance Services Colorado 3 AT&T Locate
Slide 8: Summary Results
8 Note: See “Regulation G Disclosure” slides 14-17 for a reconciliation of GAAP to Non-GAAP financial measures. Summary Results Contract Revenues ($ in millions) Adjusted EBITDA – Non-GAAP ($ in millions) Net Income and Earnings Per Share ($ in millions, except per share data) Earnings per share of
Slide 9: Selected Financial Information
9 Selected Financial Information (a) Amounts may not add due to rounding. (b) Gross Margin % calculated as the excess of contract revenues over cost of earned revenues (“Gross Margin”) as a percentage of contract revenues for the applicable period. (c) Percentages disclosed represent Adjusted EBITDA
Slide 10: Cash Flow and Liquidity
10 Cash Flow and Liquidity Balance Sheet Strength Ample liquidity of $228.1 million from cash on hand and availability on the Credit Agreement Q3-14 Commentary Liquidity ($ in millions) Q3-14 Q2-14 Selected Cash Flow Information ($ in millions) Q3-14 Q3-13 Solid operating cash flows of $29.6 m
Slide 11: Q4-2014 Outlook
11 Q4-2014 Outlook Contract Revenues $478.6 $475.0 - $495.0 Network investments by several large customers Customer spending modulations as strategies adapt to emerging environment Lower revenue from rural customers on stimulus projects Gross Margin % (a) (as a percent of revenue) 19.8% Gross
Slide 12: Looking Ahead to Fiscal Q1-2015
12 Looking Ahead to Fiscal Q1-2015 Looking Ahead Commentary Prior Period for Comparisons Q1-14 ($ in millions) Contract Revenues Network investments by several large customers Customer spending modulations as strategies adapt to emerging environment Headwind from lower revenue for rural custom
Slide 13: Looking Ahead
13 Looking Ahead Firm and strengthening 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 pa
Slide 14: Appendix: Regulation G Disclosure
14 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 15: Appendix: Regulation G Disclosure
15 Appendix: Regulation G Disclosure For the quarter ended July 27, 2013, the items reconciling "GAAP" to “Non-GAAP” financial measures are specifically described below: (a) Pre-tax charge for a wage and hour class action litigation settlement. (b) Pre-tax acquisition related costs. (c) Provision fo
Slide 16: Appendix: Regulation G Disclosure
16 (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 17: Appendix: Regulation G Disclosure
17 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 18: Fiscal 2014 3rd Quarter Presentation
Fiscal 2014 3rd Quarter Presentation May 21, 2014