Dycom Industries, Inc. · NYSE:DY

Dycom Industries — Q2 FY2013 Earnings Presentation

21 slides from Dycom Industries's earnings presentation, Feb 27, 2013

  1. Slide 1: Fiscal 2013 2nd Quarter Presentation

    Fiscal 2013 2nd Quarter Presentation February 27, 2013 Exhibit 99.2

  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

  3. Slide 3: Forward-Looking Statements and Non-GAAP Information

    3 Forward-Looking Statements and Non-GAAP Information Fiscal 2013 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. All

  4. Slide 4: Q2-2013 Overview

    4 Q2-2013 Overview  Contract revenue of $369.3 million as compared to $267.4 million in the prior year quarter, growing organically 3.5%, after excluding revenues from acquired subsidiaries of $75.9 million and storm restoration services of $16.7 million  Adjusted EBITDA of $37.2 million,10.1% of

  5. Slide 5: Q2-2013 Transactions

    5 Q2-2013 Transactions  Acquisition  Acquired substantially all of Quanta’s domestic telecommunications infrastructure services operations in December 2012  Purchase price of $275 million  Adjustment for working capital and other items totaling approximately $45 million in additional considerati

  6. Slide 6: Revenue Summary

    6 Revenue Summary  Top 5 customers represented 57.1% of revenue in Q2-13 compared to 58.3% in Q2-12  CenturyLink, Dycom’s largest customer, at 14.7% of revenue  AT&T, Dycom’s second largest customer, grew organically 34.9% year over year  Organic revenue growth of 3.5%, excluding revenue from ac

  7. Slide 7: Backlog and Awards

    7 Backlog and Awards Current Awards and Extensions Windstream Construction and Maintenance Services New Mexico, Oklahoma, Mississippi, Kentucky, Alabama, Georgia, Florida 3 Comcast Cable Installation Services & Construction and Maintenance Services Washington, California, Maryland, Vermont, Massac

  8. Slide 8: Contract Revenues and Adjusted EBITDA Summary Results

    8 $267.4 $100 $150 $200 $250 $300 $350 $400 Q2-12 Q2-13 Contract Revenues ($ in millions) $369.3 Storm - $16.7 Acquired Subsidiaries - $75.9 $24.7 $37.2 $- $10 $20 $30 $40 $50 Q2-12 Q2-13 Adjusted EBITDA - Non-GAAP ($ in millions) Adjusted EBITDA - Non -GAAP as a % of revenues: 9.2% 10.1% Summary Re

  9. Slide 9: Selected Information

    9 Selected Information Q2-13 Q2-12 Change (a) ($ in millions)(b) Contract Revenues $ 369.3 $ 267.4 $ 101.9 Cost of Earned Revenues $ 301.5 81.6% $ 220.2 82.4% $ 81.3 General & Administrative- Non-GAAP(c) $ 33.0 8.9% $ 24.3 9.1% $ 8.7 Depreciation & Amortization $ 20.8 5.6% $ 15.5 5.8% $ 5.3 Interest

  10. Slide 10: Cash Flow and Liquidity

    10 Cash Flow and Liquidity Strong Cash Flows To Fund Growth and Reduce Revolving Debt  Robust operating cash flow of $63.5 million facilitated repayment of borrowings and Cap-ex, net of $15.7 million Investing and Financing Transactions  Acquisition expenditures of $314.8 million financed by new,

  11. Slide 11: Acquired Subsidiaries Baseline Information

    11 Acquired Subsidiaries Baseline Information Q2-2013 Operating Results Contract Revenue $75.9 million EBITDA – Adjusted % of revenue (a) Approximately 9.1% Depreciation & Amortization expense (b) $2.7 million and $3.4 million, respectively Pre-Tax Results (a) Approximately $0.8 million (after depre

  12. Slide 12: Acquired Subsidiaries Baseline Information

    12 Acquired Subsidiaries Baseline Information (a) Estimated future amortization and depreciation expense are based on the Company’s preliminary allocation of the purchase price which is subject to revision as additional information about fair value of intangible assets and property and equipment bec

  13. Slide 13: Summary

    13 Summary  Firm end market opportunities  Industry participants aggressively extending or deploying fiber networks to provide wireless backhaul services  Cable operators continuing to deploy fiber to small and medium businesses  Wireless carriers upgrading from 3G to 4G technologies  Telephone

  14. Slide 14: Looking Ahead

    14 Looking Ahead  Improving legacy revenue and margin trends as wireless services continue to grow, cable construction strengthens and a significant customer continues to reaccelerate its capital expenditures  Stable performance from acquired subsidiaries with real opportunities to improve margins

  15. Slide 15: Looking Ahead – Expanded Outlook due to Recent Acquisition

    15 Looking Ahead – Expanded Outlook due to Recent Acquisition Q3-2013 Outlook (all amounts are estimates - actual amounts may differ) Actual Q3-2012 Total Outlook Q3-2013 Legacy Operations(b) Acquisition Contribution(a) Comments Contract Revenues $296.1 $390.0 - $415.0 $300.0 - $310.0 $90.0 - $105.0

  16. Slide 16: Appendix: Regulation G Disclosure

    16 Appendix: Regulation G Disclosure The above table presents the Non-GAAP financial measure of Adjusted EBITDA for the three months and six months ended January 26, 2013 and January 28, 2012, and a reconciliation for the three months April 28, 2012, and a reconciliation of Adjusted EBITDA to the mo

  17. Slide 17: Appendix: Regulation G Disclosure

    17 Appendix: Regulation G Disclosure The items reconciling "GAAP" to “Non-GAAP” financial measures are specifically described below: (a) Acquisition related costs. (b) Write-off of deferred financing costs. (c) Provision for income taxes includes the tax effect of the other reconciling items identif

  18. Slide 18: Appendix: Regulation G Disclosure

    18 Appendix: Regulation G Disclosure The items reconciling "GAAP" to “Non-GAAP” financial measures are specifically described below: (a) Acquisition related costs. (b) Write-off of deferred financing costs. (c) Provision for income taxes includes the tax effect of the other reconciling items identif

  19. Slide 19: Appendix: Regulation G Disclosure

    19 (a) Year-over-year growth (decline) percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (iii) revenues in the comparative prior year quarter period. (b) Revenues from subsidiaries acquired has been i

  20. Slide 20: Appendix: Regulation G Disclosure

    20 Appendix: Regulation G Disclosure (a) Year-over-year growth percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (iii) revenues in the comparative prior year quarter period. Amounts may not foot due t

  21. Slide 21: Fiscal 2013 2nd Quarter Presentation

    Fiscal 2013 2nd Quarter Presentation February 27, 2013

Dycom Industries — Q2 FY2013 Earnings Presentation on 6ix