Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (June 2021)
23 slides from Dycom Industries's investor presentation, Jun 1, 2021
Slide 1: June 2021 Investor Presentation
June 2021Investor Presentation Exhibit 99.1
Slide 2: Caution Concerning Forward-Looking Statements
Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarter ending July 31, 2021 found within this presentation. Forward
Slide 3: Dycom Overview
3Dycom Overview Leading supplier of specialty contracting services to telecommunication providers throughout the US Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to economic progress Durable customer relation
Slide 4: Financial Overview
Fiscal 2021 Annual Operating Performance Contract Revenues of $3.199 billion Non-GAAP Adjusted EBITDA of $311.0 million, or 9.7% of contract revenues Non-GAAP Adjusted Earnings per Common Share Diluted of $2.54 Backlog and Headcount as of May 1, 2021 (Q1 2022) Total Backlog of $6.528 billion Employe
Slide 5: Strong Secular Trend: Data Usage Growth & Broadband Speeds
344 483 - 50 100 150 200 250 300 350 400 450 500 G ig a b y te s Weighted Average Data Consumed per Month 4Q-19 4Q-20 5Strong Secular Trend Average Upload Consumption Per Subscriber Strong and stable growth in IP traffic even in times of GDP decline Telecommunications networks fundamental to economi
Slide 6: Industry Update
6Industry Update Major industry participants constructing or upgrading significant wireline networks across broad sections of the country generally designed to provision 1 gigabit network speeds directly to consumers or wirelessly using 5G technologies Industry effort to deploy high capacity fiber n
Slide 7: Intensely Focused on Telecommunications Market
7Intensely Focused on Telecommunications Market Fiscal 2021 Revenue by Customer Type PROGRAM MANAGEMENT PLANNING ENGINEERING & DESIGN PROCUREMENT & CONSTRUCTION FULFILLMENT MAINTENANCE Telecommunications 89.1% Underground Locating 7.2% Electric/Gas Utilities & Other 3.7% Dycom’s extensive market pre
Slide 8: Strong Tailwinds For Fiber Deployments
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Other 0.9 1.2 1.4 1.8 2.2 2.8 3.6 4.7 5.7 6.7 Frontier 3.0 3.0 3.0 3.0 3.0 3.3 4.0 5.0 6.0 7.5 Lumen 1.2 1.6 1.8 2.0 2.4 2.8 3.2 3.6 4.0 4.4 Verizon 14.0 14.6 15.0 15.3 16.0 16.2 16.4 16.6 16.8 17.0 AT&T 3.6 6.4 10.2 13.1 13.6 16.1 19.9 23.8 27.6 30.
Slide 9: Customers Committed to Multi-Year Capital Spending, Fiber Deployments
9Customers Committed to Multi-Year Capital Spending, Fiber Deployments “We intend to double down on our fiber expansion. We expect to more than double our current fiber footprint by the end of 2025, reaching 30 million customer locations with the single goal of offering the best fixed broadband serv
Slide 10: 5G Deployment
105G Deployment If you think about the capital cost associated with building Small Cell networks, about 80%, 85% of the total cost of building those networks is in the Fiber itself…based on the type of infrastructure that has to be deployed in order to achieve a Small Cell solution for the carriers,
Slide 11: Local Credibility, National Capability
Local Credibility, National Capability Nationwide footprint with more than 40 operating subsidiaries and 14,300+ employees Operating Subsidiaries 11
Slide 12: Durable Customer Relationships
$- $100 $200 $300 $400 $500 $600 $700 $800 $900 2014 2015 2016 2017 2018 2019 2020 2021 C u st o m e r C o n tr a ct R e ve n u e s Trailing Twelve Months Ended January Verizon Lumen AT&T Comcast Windstream Charter 12Durable Customer Relationships $ M il li o n s 26% 23% 22% 22% 26% 74% 77% 78% 78%
Slide 13: Anchored by Long-Term Agreements
13Anchored by Long-Term Agreements Dycom is party to hundreds of MSA’s and other agreements with customers that extend for periods of one or more years Generally multiple agreements maintained with each customer Master Service Agreements (MSA’s) are multi-year, multi-million dollar arrangements cove
Slide 14: 10+ Years of Robust Cash Flow Generation
1410+ Years of Robust Cash Flow Generation Fiscal 2011 – Fiscal 2021 Robust cash flow generation and prudent capital allocation provide strong foundation for returns Strong operating cash flow of $1.684 billion over 10+ years Prudent approach to capital allocation: $540 million invested in share rep
Slide 15: Capital Allocated to Maximize Returns
15Capital Allocated to Maximize Returns Focus on organic growth opportunities through strategic capital investments in the business Dycom is committed to maximizing long term returns through prudent capital allocation Repurchased 25.2 million shares for approximately $758 million from fiscal 2006 th
Slide 16: Financial Update
16 FINANCIAL UPDATE
Slide 17: Annual Trends
$5.26 $3.88 $2.78 $2.27 $2.54 FY 2017 4 Qtrs Ended Jan 2018 FY 2019 FY 2020 FY 2021 Non-GAAP Adjusted Diluted EPS 7 14.1% (0.2)% 3.6% 8.3% (6.1)% FY 2017 4 Qtrs Ended Jan 2018 FY 2019 FY 2020 FY 2021 Non-GAAP Organic Growth (Decline) %1 $3,067 $2,978 $3,128 $3,340 $3,199 FY 2017 4 Qtrs Ended Jan 201
Slide 18: Quarterly Trends
$89 $92 $45 $70 $103 $93 $46 $44 10.2% 10.4% 6.0% 8.6% 12.5% 11.5% 6.1% 6.1% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA % $ M il li o n s $884 $884 $738 $814 $824 $810 $751 $727 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4
Slide 19: Debt and Liquidity Overview
19Debt and Liquidity Overview Issued $500.0 million principal amount of 4.50% senior notes due April 2029; repaid $105.0 million of revolver borrowings and $71.9 million of term loan borrowings Amended and restated Senior Credit Facility to resize capacity and extend maturity to April 2026 Cash and
Slide 20: Cash Flow Overview
20Cash Flow Overview Solid operating cash flows during Q1 2022 Proceeds from Q1 2022 debt offering used, in part, to repay revolver and term loan borrowings Capital expenditures, net of disposals, for fiscal 2022 expected to range from $105 million to $125 million, a reduction of $40 million when th
Slide 21: Questions and Answers
21 QUESTIONS AND ANSWERS
Slide 22: Outlook for Quarter Ending July 31, 2021
Contract revenues Range from in-line to modestly lower as compared to Q2 2021 Non-GAAP Adjusted EBITDA % of contract revenues Decreases as compared to Q2 2021 Year-over-year gross margin pressure of approximately 200 bps from the impact of a large customer program and from revenue declines for other
Slide 23: Notes
Notes 23 1) Organic growth (decline) % adjusted for revenues from acquired businesses, storm restoration services, and for the additional week of operations during the fourth quarter as a result of the Company’s 52/53 week fiscal year, when applicable. 2) The Company’s backlog represents an estimate