Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Credit Suisse 2010 Engineering and Construction Conference
26 slides from Dycom Industries's conference presentation, Jun 3, 2010
Slide 1: Credit Suisse 2010 Engineering and Construction Conference
Credit Suisse 2010 Engineering and Construction Conference June 3,
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information Forward-Looking Statements and Non-GAAP Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “estimate,” “intend,”
Slide 3: Dycom Industries Introduction
Dycom Industries Introduction n Leading provider of specialty contracting services principally to telephone and cable companies n Telecommunications industry dynamics driving growth potential n Major participant in a large, but fragmented industry, which offers acquisition opportunities n Significan
Slide 4: Revenue Mix
Revenue Mix Quarter Ended April 24, 2010- $231.6 million
Slide 5: Providing End-To-End Services
Providing End-To-End Services Engineering Underground Facility Locating Outside Plant & Equipment Installation
Slide 6: Dycom Industries At a Glance
Dycom Industries At a Glance Dycom is a leading telecommunications infrastructure provider in the United States n Headquartered in Palm Beach Gardens, Florida n Third quarter fiscal 2010 revenues of $231.6 million n Strong financial profile } Cash and equivalents $116.2 million at April 24, 2010 } S
Slide 7: Strong subsidiaries, broad national footprint
Strong subsidiaries, broad national footprint Subsidiaries Dycom’s Nationwide Presence Dycom Operating Overview
Slide 8: Industry Developments…
Industry Developments… n Telephone/cable industry convergence - a reality } Competition for customers drives growth n Network bandwidth expansion - an imperative } Telephone companies expanding network capacity } Cable responding to match capabilities and facilitate new products such as VOIP, HDTV,
Slide 9: …And Opportunities
…And Opportunities n Increased capital spending } Telephone company deployments of Fiber (FTTx) } Cable company bandwidth expansion } Customer premise equipment deployments } Fiber to the cell site n Renewed focus on network reliability and availability as subscribers demand better service levels n
Slide 10: Telecom Capital Spending
Telecom Capital Spending Capex Commentary n Continued capital spending in wireline reflects burgeoning demand for voice, data and video transmission n RBOCs will continue to constitute the vast majority of U.S. fixed line investment n Significant portion of RBOCs’ capital budgets are expected to be
Slide 11: Cable Capital Spending
Cable Capital Spending Capex Commentary n Continued capital expenditures on bandwidth reclamation, VOIP and HDTV product offerings, and cellular backhaul n Ongoing plant and network enhancements are critical as cable operators continue to offer services that require greater reliability n Network cap
Slide 12: Underground Facility Locating Services
n “Dig Safe” laws in all 50 states require owners of underground utilities to identify and mark their facilities prior to excavation } Regulate telephone, cable, power, gas, water & sewer utilities } Seek to minimize network outages, protect job-site workers, and safeguard the general public } Locat
Slide 13: Dycom's Competitive Advantages
Dycom’s Competitive Advantages n Established customer relationships and reputation n Broad geographic coverage n Scale to satisfy customer time and service requirements n Responsive, local decentralized business units n Access to capital n Senior management operating expertise
Slide 14: Growth Strategy As Opportunities Expand
Growth Strategy As Opportunities Expand n Build and maintain long-term customer relationships at the local level } Position business to capture both recurring maintenance and new capital spending n Empower subsidiary management } Build relationships with customer contracting decision makers } Utiliz
Slide 15: Well Established Customers
Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Well Established Customers Fiscal Quarter Ended April 24, 2010 Customer Revenue Breakdown Other Comcast Charter Cablevision Windstream AT&T CenturyLink Qwest Verizon Time Warner Cable West Carolina Telephone Elec
Slide 16: Customer Rotation
Customer Rotation Key long-term relationships help Dycom manage the cyclical nature of telecom and cable capex spending For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. 65% 35% 62% 38% 63% 68% 32% 68% 32% 64%
Slide 17: Revenue By Contract Type
Dycom’s revenue stream is primarily generated by long-term contractual agreements n Master Service Agreements (MSA’s) n Significant majority of contracts are based on units of delivery Revenue By Contract Type Quarter Ended April 24, 2010 Revenue - - Q3 Fiscal 2010
Slide 18: Senior Management
Senior Management Seasoned management team with several decades of combined industry experience
Slide 19: Dycom Industries Inc
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Slide 20: Financial Overview
n Centralize activities which yield synergistic benefits } Treasury } Tax } Risk management } Capital asset procurement } Information technology resources n Decentralize financial operations to provide solid support and flexibility at operating unit level n Maintain financial resources to support in
Slide 21: Fiscal Year Results - Revenue and Earnings
Fiscal Year Results - Revenue and Earnings (1) The amounts for EBITDA - Adjusted and Income from continuing operations -Non-GAAP are Non-GAAP financial measures adjusted to exclude certain items. See “Regulation G Disclosure” slide for a reconciliation of Non-GAAP financial measures to GAAP financia
Slide 22: Quarterly Results - Revenue and Earnings
Quarterly Results - Revenue and Earnings n Seasonal revenue pattern driven by weather and available work days n Q3-10 impacted by difficult weather conditions; total revenue trends beginning to improve in Q3-10 n EBITDA - Adjusted and Income from Continuing Operations increased sequentially reflecti
Slide 23: Fiscal Year Results - Cash Flow and Liquidity
Fiscal Year Results - Cash Flow and (1) Capital expenditures net of proceeds from the sale of assets (2) The amounts for EBITDA - Adjusted and Net Debt used in the calculations herein are Non-GAAP financial measures adjusted to exclude certain items. See “Regulation G Disclosure” slide for a reconci
Slide 24: Quarterly Results - Cash Flow and Liquidity
Quarterly Results - Cash Flow and Liquidity (1) Capital expenditures net of proceeds from the sale of assets (2) The amounts for EBITDA - Adjusted and Net Debt used in the calculations herein are Non-GAAP financial measures adjusted to exclude certain items. See “Regulation G Disclosure” slide for a
Slide 25: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures (Sinmitns (amounts may ota eto oun) rica 2006 ica! 2006] ica! 207 Fiscal 2008 ical 2008 iteat 2010 cin a a a a aaa Adjusting toms: Wtf fires foancing cost s s 8 a ee ee ce ee ee ee ee Gain on dot extingustnat et ar : aa an eo) ocd mpsiment charges mo a8 fo
Slide 26: Credit Suisse 2010 Engineering and Construction Conference
Credit Suisse 2010 Engineering and Construction Conference June 3,
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