Slide 1: D.A. Davidson 12th Annual Engineering & Construction Conference
D.A. Davidson 12th Annual Engineering & Construction Conference September 10, 2013 Exhibit 99.1
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Fiscal 2013 fourth quarter and year to date 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. All stateme
Slide 3: Positioned for strong equity returns
3 Positioned for strong equity returns A leading supplier of specialty contracting services to telecommunication providers nationwide Telecommunications networks fundamental to economic progress Firm end market opportunities Wireless network upgrades FTTx deployments Wireless backhaul
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide Footprint and Significant Resources Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. Headquartered in Palm Beach Gardens, Florida Nationwide footprint Operates in all 50 states and in Canada Over 40 operating subsidiaries an
Slide 5: Services Crucial to Customer Success
5 Services Crucial to Customer Success Engineering Underground Facility Locating Outside Plant & Equipment Installation Premise Equipment Installation Wireless Services
Slide 6: Intensely Focused on Telecommunications Market
6 Intensely Focused on Telecommunications Market Contract Revenue $478.6 million Quarter Ended July 27, 2013 Telecommunications Underground Facility Locating Electric and Gas Utilities and Other Construction and Maintenance 88.2% 7.4%4.4%
Slide 7: Strong Secular Trend
7 0 5,000 10,000 15,000 20,000 25,000 -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% GDP Traffic Strong Secular Trend Quar terl y G D P C hang e N or th A m eri c a In tern e t Pro to c ol T ra ffic (Pe tab yte s per M on th ) Sources: U.S. Telecom, The Broadband Association Cisco Vis
Slide 8: Key Driver: Wireless Network Upgrades
8 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 US cell sites US Towers Key Driver: Wireless Network Upgrades “…Project VIP, as you know, is a major initiative for us we announced last November. It says that by year-end 2014 we will expand to cover LTE to more than 300 million POPs in the
Slide 9: Key Driver: FTTx Deployments
9 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11 2Q 12 4Q 12 2Q 13 Cumulative Subscribers Verizon FiOS Video AT&T U-Verse Key Driver: FTTx Deployments “… we passed a crucial threshold with
Slide 10: Key Driver: Wireless Backhaul
10 Key Driver: Wireless Backhaul 0X 10X 20X 30X 40X 50X 2009 2010 2011 2012 2013E 2014E Mobile Data Traffic Growth Relative to 2009 Yankee Group Coda Research Cisco Systems, Inc. Average “…Continuing our fiber to the tower, which is our third initiative, is we're building fiber to as many towers as
Slide 11: Key Driver: Fiber to Businesses
11 $9.5B $20.0B $27.5B 2012 Business Services Revenue $5.0 Billion Addressable Business Services Market $57 Billion “I will take the Business Services question […] The business had a great quarter, growing at 26.5%. It's still about 85% small business and 15% midsize, but the midsize is growing at a
Slide 12: Dycom's Nationwide Presence
12 Subsidiaries Dycom’s Nationwide Presence Local Credibility, National Capability Dycom Headquarters Subsidiary Headquarters
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth Anticipating emerging technology trends which drive capital spending Deliberately targeting high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities Selectively acquiring businesses which compl
Slide 14: Well Established Customers
14 17% 16% 10% 10%6% 5% 5% 2% 2% 1% 26% Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Well Established Customers Quarter Ended July 27, 2013 Customer Revenue Breakdown Comcast AT&T CenturyLink Verizon Windstream Charter Ericsson Time Warner Cable Other Front
Slide 15: Durable Customer Relationships
15 Durable Customer Relationships R e v enue ( $ in mil lions ) For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. FY 2013 reflects the results of the businesses acquired in fiscal 2013, including the operation
Slide 16: Anchored by Long-Term Agreements
16 Revenue By Contract Type Quarter Ended July 27, 2013 Anchored by Long-Term Agreements Master Service Agreements Long-term contracts Short-term contracts Master Service Agreements (MSA’s) Multi-year, multi-million dollar arrangements covering thousands of individual work orders Generally e
Slide 17: Robust Cash Flow - Investing for Growth
17 $482 $347 $312 $330 $- $200 $400 $600 $800 Capital Expenditures Business Acquisitions Share Repurchases Capital Investments FY 2004 - FY 2013 FY'13 $677 FY 2004 - 2012 Note: Amounts represent cumulative cash flow for fiscal 2004 – fiscal 2013; Fiscal 2013 acquisitions include Q2-13 acquisition of
Slide 18: Financial Update
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Slide 19: Financial Overview
19 Financial Overview Organic revenue growth of 7.5% during Q4-2013 Solid margins and earnings Stable balance sheet Strong cash flows and liquidity Capital structure designed to produce strong equity returns
Slide 20: Contract Revenue Growth
20 15.2% 19.2% 17.3% 9.0% 2.4% 3.5% 6.2% 7.5% (10)% (5)% 0% 5% 10% 15% 20% 25% Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Quarterly Organic Growth (12.0) (10.5)% 2.0% 15.4% 4.9% (15)% (10)% (5)% 0% 5% 10% 15% 20% FY2009 FY2010 FY2011 FY2012 FY 2013 Annual Organic Growth $1,107 $989 $1,036 $1,20
Slide 21: Earnings Growth
21 $20.9 $6.8 $21.9 $39.4 $39.8 $- $10 $20 $30 $40 $50 FY2009 FY2010 FY2011 FY2012 FY2013 Net Income - Non-GAAP ($ in millions) Earnings Growth (a) The amounts and percentages for EBITDA – Adjusted are Non-GAAP financial measures adjusted to exclude certain items. See “Regulation G Disclosure” slide
Slide 22: Cash Flow and Liquidity
22 Cash Flow and Liquidity Investing and Financing Transactions Acquisition expenditures of $330.3 million in FY 2013 for newly acquired subsidiaries Borrowings under new, 5-year credit facility and $90.0 million add-on to Senior Subordinated Notes due 2021 Cash Flow From Operations Strong cas
Slide 23: Strong Balance Sheet and Backlog
23 $1,208 $1,217 $2,003 $2,197 $- $750 $1,500 $2,250 Q3-13 Q4-13 Backlog ($ in millions) Next 12 month Next 12 month Strong Balance Sheet and Backlog Financial profile positioned to address emerging industry opportunities $400 million Senior Credit Facility - maturity in December 2017 $125 milli
Slide 24: Capital Allocated to Maximize Shareholder Returns
24 Capital Allocated to Maximize Shareholder Returns Organic growth, solid free cash flow and confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns Fiscal 2013 acquisitions further strengthen our customer base, geographic scope, and technical ser
Slide 25: Selected Information from Q4-13 Dycom Results Conference Call Materials
Selected Information from Q4-13 Dycom Results Conference Call Materials The following slides 26-27 were used on August 28, 2013 in connection with the Company’s conference call to discuss fiscal 2013 fourth quarter results and are included here for your convenience. Reference is made to slide 2 titl
Slide 26: Looking Ahead: Outlook
26 Looking Ahead Outlook Contract Revenues Continued total and organic revenue growth as services to wireless carriers remain robust, cable construction strengthens and customers maintain growing expenditures Gross Margin % Improving margin trends as legacy performance remains solid and integration
Slide 27: Looking Ahead: Q1-2014 Outlook
27 Looking Ahead Q1-2014 Outlook (all amounts are estimates - actual amounts may differ) ($ in millions) Q1-2013 Q1-2014 Y-O-Y Comments Contract Revenues $323.3 $475.0 - $495.0 (including $135.0 - $145.0 from acquired subsidiaries) Mid to high single digit organic growth Gross Margin % (as a percent
Slide 28: Additional Information – Amortization of Intangibles
28 Additional Information – Amortization of Intangibles Estimated Future Amortization of Intangibles ($ in millions) Dycom Legacy Companies(a) Q2-2013 Acquired Businesses Q4-13 Acquired Businesses Total Dycom Estimated Quarterly Expense: Q1-14 $ 1.6 $3.4 $0.1 $ 5.2 Q2-14 $ 1.5 $3.1 $0.1 $ 4.8 Q3-14
Slide 29: Supplemental Schedules Regulation G Disclosures
Supplemental Schedules Regulation G Disclosures
Slide 30: Regulation G Disclosure
30 Regulation G Disclosure (a) Year-over-year growth percentage is calculated as follows: (i) revenues in the current twelve month period less (ii) revenues in the comparative prior twelve month period; divided by (ii) revenues in the comparative prior twelve month period. (b) Revenues from business
Slide 31: Regulation G Disclosure
31 Regulation G Disclosure Amounts may not foot due to rounding. Reconciliation of GAAP to Non-GAAP Measures ($ in millions) GAAP NON-GAAP (Organic) Revenues from businesses acquired (b) Revenues from storm restoration services Q4-13 Organic Growth: Q4-13 478.6$ (139.1)$ -$ 339.6$ 50.5% 7.5% Q4-12 3
Slide 32: Regulation G Disclosure
32 Regulation G Disclosure The below table presents the Non-GAAP financial measures of EBITDA and Adjusted EBITDA for the respective periods. EBITDA and Adjusted EBITDA are Non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Compa
Slide 33: Regulation G Disclosure
33 Regulation G Disclosure Amounts may not foot due to rounding. Calculation of Cumulative Cash Flows Fiscal 2004 through Fiscal 2013 ($ in millions) Net Cash Provided by Operating Activities Capital Expenditures, Net of Proceeds from Asset Sales Cash Paid for Acquisitions, net of cash acquired Repu
Slide 34: D.A. Davidson 12th Annual Engineering & Construction Conference
D.A. Davidson 12th Annual Engineering & Construction Conference September 10, 2013