Dycom Industries, Inc. · NYSE:DY
Dycom Industries — BB&T Capital Markets 2009 Manufacturing and Materials Conference
27 slides from Dycom Industries's conference presentation, Apr 2, 2009
Slide 1: BB&T Capital Markets 2009 Manufacturing and Materials Conference
BB&T CAPITAL MARKETS 2009 MANUFACTURING AND MATERIALS CONFERENCE April 2, 2009 (r)
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," "continue," "anticipate," "estimate," "intend," "forecast," "may," "should," "could," "
Slide 3: Dycom Industries Introduction
Dycom Industries Introduction Leading provider of specialty contracting services principally to telephone and cable companies Telecommunications industry dynamics driving growth potential Major participant in a large, but fragmented industry, which offers acquisition opportunities Significant portio
Slide 4: Revenue Mix Quarter Ended January 24, 2009
Revenue Mix Quarter Ended January 24, 2009 - $245.5 million Telecommunications Underground Facility Locating Electric Utilities and Other Construction and Maintenance Q2 2009 Telecommunications 0.779 Underground Facility Locating 0.162 Electric Utilities and Other Customers 0.059
Slide 5: Providing End-To-End Services
Providing End-To-End Services Engineering Underground Facility Locating Outside Plant & Equipment Installation Premise Equipment Installation
Slide 6: Dycom Industries At a Glance
Headquartered in Palm Beach Gardens, Florida Second quarter fiscal 2009 revenues of $245.5 million Strong financial profile Cash and equivalents over $74 million at January 24, 2009 Shareholders' equity $377.2 million at January 24, 2009 Operating Cash Flow of approximately $104 million for fiscal y
Slide 7: Dycom Operating Overview
Strong subsidiaries, broad national footprint Subsidiaries Cable Connectors UtiliQuest Dycom's Nationwide Presence LAMBERTS Dycom Operating Overview
Slide 8: Industry Developments...
Industry Developments... Telephone/cable industry convergence - a reality Competition for customers drives growth Network bandwidth expansion - an imperative Telephone companies expanding network capacity Cable responding to match capabilities and facilitate new products such as VOIP, HDTV, and wide
Slide 9: ....And Opportunities
....And Opportunities Increased capital spending Telephone company deployments of Fiber (FTTx) Cable company bandwidth expansion to 860 mhz. and 1 ghz. Customer premise equipment deployments Renewed focus on network reliability and availability as subscribers demand better service levels Continued o
Slide 10: Telecom Capital Spending
Telecom Capital Spending Capex Commentary Continued capital spending in wireline reflects burgeoning demand for voice, data and video transmission RBOCs will continue to constitute the vast majority of U.S. fixed line investment More than half of the RBOCs' capital budgets are expected to be from fi
Slide 11: Cable Capital Spending
Cable Capital Spending Capex Commentary Spending outlook opportunities on bandwidth reclamation Continued capital expenditures on VOIP and HDTV product offerings Ongoing plant and network enhancements are critical as cable operators continue to offer services that require greater reliability Network
Slide 12: Underground Facility Locating Services
"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 Locates often
Slide 13: Dycom's Competitive Advantages
Dycom's Competitive Advantages Established customer relationships and reputation Broad geographic coverage Scale to satisfy customer time and service requirements Responsive, local decentralized business units Access to capital Senior management operating expertise
Slide 14: Growth Strategy
Dycom employs a deliberate and methodical growth strategy Growth Strategy As Opportunities Expand Build and maintain long-term customer relationships at the local level Position business to capture both recurring maintenance and new capital spending Empower subsidiary management Build relationships
Slide 15: Well Established Customers
AT&T 48359 Comcast Corporation Total 37745 Verizon 36332 Time Warner 20225 Embarq Total 14459 Charter Communications 11501 Windstream 8788 Qwest 4739 Williams 4400 Cablevision 4815 All Other 54158 Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Other Comcast C
Slide 16: Customer Rotation
Other Top 5 1999 200.4 295.6 2000 272.4 496 2001 318.6 488 2002 235.7 367 2003 222.9 429 2004 272.6 569.7 2005 309.5 644.4 2006 362.5 632.5 2007 418.7 719.1 2008 442.7 787.2 AT&T Comcast EMBARQ Verizon Qwest Adelphia Charter Comm Time Warner Cable 1999 186 148 29 19 0 0 0 7 2000 153 183 43 22 52 2 2
Slide 17: Revenue - Second quarter ended January 24, 2009
Revenue - Second quarter ended January 24, 2009 Dycom's revenue stream is primarily generated by long-term contractual agreements Master Service Agreements (MSA's) Multi-year, multi-million dollar arrangements covering thousands of individual work orders Generally exclusive requirement contracts Lon
Slide 18: Senior Management Operating Overview
Senior Management Operating Overview Seasoned management team with over 60 years for the Company and extensive industry specific experience
Slide 19: Financial Summary
i —r Financial Summary hy ie) few’ com Industries, Inc
Slide 20: Financial Overview
Centralize activities which yield synergistic benefits Treasury Tax Risk management Capital asset procurement Information technology resources Decentralize financial operations to provide solid support and flexibility at operating unit level Maintain financial resources to support internal growth an
Slide 21: Fiscal Year Results - Revenue and Earnings
Fiscal Year Results - Revenue and Earnings Note: Organic growth rate for 2008 excludes revenue from businesses acquired during fiscal 2007 -See "Regulation G Disclosure" slides for a reconciliation of non- GAAP financial measures. (1) The amounts for EBITDA - Adjusted and Income from continuing oper
Slide 22: Quarterly Results - Revenue and Earnings
Quarterly Results - Revenue and Earnings (1) The amounts for EBITDA - Adjusted and Income (loss) from continuing operations -non-GAAP are non-GAAP financial measures adjusted to exclude goodwill impairment charges and other adjusting items. See "Regulation G Disclosure" slides for a reconciliation o
Slide 23: Fiscal Year Results - Cash Flow and Liquidity
Fiscal Year 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 goodwill impairment charges and other adjusting items.
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 goodwill impairment charges and other adjusting items. S
Slide 25: Regulation G Disclosure
Regulation G Disclosure = pone Secnadtanecns reteset Grete bs & SoSe cares Pc ee Te RCE Te Tn ape a ; = a aS Se qo aa eee eee aaa aa = 2S Ee eR ER HE BeBe EBD FeSceerate cman A TA ch A TA A A EM TAT FA FH GA FA Ge ee Se & & & % a ot Ge facie ie et i a —— — eo ESaaieos pons SR pee Ee ere ia FoR ara i
Slide 26: Regulation G Disclosure: Calculation of Organic Revenue and Change
Regulation G Disclosure Calculation of Organic Revenue and Change GAAP - Contract revenues Revenues from businesses acquited during fiscal 2007 Non-GAAP - Contract revenues. P| ee Organic 2008 2007 ‘Change (Sin millions) $12300$1,1978 101.9) 790) Size | 370588 65% 8 ycont Industries, Inc. 25
Slide 27: BB&T Capital Markets 2009 Manufacturing and Materials Conference
BB&T CAPITAL MARKETS 2009 MANUFACTURING AND MATERIALS CONFERENCE April 2, 2009 (r)
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