Dycom Industries, Inc. · NYSE:DY
Dycom Industries — BB&T Capital Markets Conference 2010
27 slides from Dycom Industries's conference presentation, Mar 24, 2010
Slide 1: BB&T Capital Markets Conference March 24, 2010
® BB&T CAPITAL MARKETS CONFERENCE March 24, 2010
Slide 2: 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,” “forecast,” “may,” “should”, “could”, “project,” “o
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 Telecommunications Underground Facility Electric Utilities and Locating Other Construction and Maintenance Quarter Ended January 23, 2010- $216.3 million 3
Slide 5: Providing End-To-End Services
Providing End-To-End Services Outside Plant & Equipment Installation Underground Facility Locating Engineering 4
Slide 6: Dycom Industries At a Glance
Dycom Industries At a Glance n Headquartered in Palm Beach Gardens, Florida n Second quarter fiscal 2010 revenues of $216.3 million n Strong financial profile } Cash and equivalents $135.9 million at January 23, 2010 } Shareholders’ equity $391.0 million at January 23, 2010 } Operating cash flow of
Slide 7: Dycom Operating Overview
Dycom Operating Overview Dycom’s Nationwide Presence Subsidiaries UtiliQuest Cable Connectors LAMBERTS Strong subsidiaries, broad national footprint 6
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 “We are taking our U-verse build, which is our IPTV build, the broadband capability that we have been deploying, and we are going to get to 30 million homes by the end of next year. We are actually moving that build out to cover more of our small business locations. We have
Slide 11: Cable Capital Spending
Cable Capital Spending “[…] we have been aggressively rolling out All-Digital and Wideband. These are initiatives that are central to our strategy, and so we are investing about $1 billion in these two projects between 2009 and 2010, and we’ve made rapid progress deploying these technologies and new
Slide 12: Underground Facility Locating Services
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, a
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 12
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
Well Established Customers Fiscal Quarter Ended January 23, 2010 Customer Revenue Breakdown Other AT&T Qwest Cablevision Comcast Windstream Charter Time Warner Cable Verizon CenturyLink Blue-chip, predominantly investment grade clients comprise the vast majority of revenue 14
Slide 16: Customer Rotation
Customer Rotation $1,138 $1,230 $995 $1,107 $958 $760 $842 $784 64% $588 63% 64% $579 68% 64% 65% 62% 68% 63% 67% 36% 37% 36% 36% 35% 38% 32% 32% 37% 33% Top 5 Customers Other For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined
Slide 17: Revenue - Q2 Fiscal 2010
Revenue - Q2 Fiscal 2010 Master Service Agreements Short-term Long-term contracts contracts Dycom’s revenue stream is primarily generated by long-term contractual agreements 16
Slide 18: Operating Overview Senior Management
Operating Overview Senior Management Seasoned management team with several decades of combined industry experience 17
Slide 19: Financial Update
> YCOM INDUSTRIES INC. Financial Update lem corn Industries, Inc.
Slide 20: Financial Overview
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 reso
Slide 21: Fiscal Year Results - Revenue and Earnings
Fiscal Year Results - Revenue and Earnings n Annual revenue exceeding $1.1 billion for the three most recent fiscal years n Revenue and results impacted by customer reductions in capital spending plans in response to challenging economic conditions (1) The amounts for EBITDA - Adjusted and Income fr
Slide 22: Quarterly Results - Revenue and Earnings
Quarterly Results - Revenue and Earnings n Seasonal revenue pattern driven by weather and available work days. n Q2-10 year over year revenue decline of 11.9% reflects customer reductions in capital spending. n EBITDA - Adjusted and Income from Continuing Operations declined due to reduced level of
Slide 23: Cash flow from operations over $100 million for four years
n Cash flow from operations over $100 million for the four most recent years n Ample cash flows to support capital expenditures and fund operations n Long term financing in place as of January 23, 2010 } $135.35 million Senior Subordinated Notes - October 2015 maturity } $210 million Credit Facility
Slide 24: Quarterly Results - Cash Flow and Liquidity
Quarterly Results - Cash Flow and Liquidity n Significant cash flow from operations reflects efficient conversion of earnings and working capital to cash n Net debt has declined as a result of significant cash flows from operations n Ample liquidity as of January 2010 } $135.9 million cash and equiv
Slide 25: Regulation G Disclosure
Regulation G Disclosure Reconciliation of GAAP to Non-GAAP measures Fiscal viol vials 2007 {S in millions) (amounts may not ack due to rounding) Fiscal 2008 Fiscal 2009. Fiscal 2010 " Qi a2 3 as Total at a2 Q3 Qe Total Qi a2 Adjusting Items: ‘Write-off of deferred financing costs $ - &$ - &€ + $ + ©
Slide 26: BB&T Capital Markets Conference March 24, 2010
® BB&T CAPITAL MARKETS CONFERENCE March 24, 2010
Slide 27: Slide 27
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