Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Credit Suisse 2012 Engineering and Construction Conference
34 slides from Dycom Industries's conference presentation, Jun 7, 2012
Slide 1: Credit Suisse 2012 Engineering and Construction Conference
Exhibit 99.1 Credit Suisse 2012 Engineering and Construction Conference June 7, 2012
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and competitive environment. All statements, other than statements of historical facts,
Slide 3: Positioned for strong equity returns
Positioned for strong equity returns n A leading supplier of specialty contracting services to telecommunication providers nationwide n Telecommunications networks fundamental to economic progress n End market opportunities driving organic growth, margin expansion and increased earnings potential Ø
Slide 4: Nationwide Footprint and Significant Resources
Nationwide Footprint and Significant Resources n Headquartered in Palm Beach Gardens, Florida n Nationwide footprint } Operates in 48 states and in Canada } 31 operating subsidiaries and hundreds of field offices n Fiscal 2012 third quarter revenues of $296.1 million grew 17.3% year over year, highe
Slide 5: Services Crucial to Customer Success
Services Crucial to Customer Success Outside Plant & Equipment Installation Engineering Wireless Services Premise Equipment Installation Underground Facility Locating 4
Slide 6: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Contract Revenue $296.1 million Quarter Ended April 28, 2012 5
Slide 7: Strong Secular Trend
Strong Secular Trend Sources: U.S. Telecom, The Broadband Association Cisco Visual Networking Index U.S. National Bureau of Economic Analysis “When the stability of an entire economy depends on the speed, intelligence, quality of service, robustness and security of its Internet backbone, will a just
Slide 8: Key Driver: Wireless Backhaul
Key Driver: Wireless Backhaul Sources: FCC OBI Technical Paper 6, Mobile Broadband: The Benefits of Additional Spectrum “Our third key strategic initiative-investing in fiber builds to as many towers in our service area as is economically feasible. This initiative supports the anticipated long-term
Slide 9: Key Driver: Rural Fiber Networks
Key Driver: Rural Fiber Networks The American Recovery and Reinvestment Act (ARRA) provided the Department of Commerce’s National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture’s Rural Utilities Service (RUS) with $7.2 billion to expand broadband serv
Slide 10: Key Driver: Fiber Deployments to Businesses
$3.9 Billion Sources: Company Filings Company Transcripts Addressable Business Services Market $53.5 Billion “I think we are getting most of our growth from SME and now Metro E and midsize are starting to come in. We are offering three products really on the midsize. It is both - it is the Metro E p
Slide 11: Key Driver: Wireless Network Upgrades
Key Driver: Wireless Network Upgrades Sources: CTIA Collins Stewart, LLC “If you look at the data from last year, of 2011 over 2010, mobility traffic more than doubled. And if you look at the forecast going forward in the next four years mobility traffic is going to grow 1200% over the next four yea
Slide 12: Key Driver: FTTx Deployments
Key Driver: FTTx Deployments Sources: Company Filings “…our Prism TV service represents a very compelling entertainment alternative to cable TV services in the eight markets where it is currently available. We remain focused on expanding our Prism TV enabled footprint and in driving additional subsc
Slide 13: Local Credibility, National Capability
Local Credibility, National Capability Dycom’s Nationwide Presence Subsidiaries 12
Slide 14: Focused on High Value Profitable Growth
Focused on High Value Profitable Growth n Anticipating emerging technology trends which drive capital spending n Deliberately targeting high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities n Selectively acquiring businesses which comple
Slide 15: Well Established Customers
Well Established Customers Quarter Ended April 28, 2012 Customer Revenue Breakdown AT&T Other CenturyLink Crown Castle Ericcson Farmers Telephone Time Warner Comcast Cable Charter Verizon Windstream Blue-chip, predominantly investment grade clients comprise the vast majority of revenue 14
Slide 16: Durable Customer Relationships
Durable Customer Relationships For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. 15
Slide 17: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements n Master Service Agreements (MSA’s) } Multi-year, multi-million dollar Revenue By Contract Type arrangements covering thousands of Quarter Ended April 28, 2012 individual work orders } Generally exclusive requirement contracts n Long-term contracts relate to specific
Slide 18: Robust Cash Flow - Investing for Growth
Robust Cash Flow - Investing for Growth $393 million $349 million Capital Business expenditures, acquisitions $284 million net Share repurchases $184 million provided by other financing and investing activities and beginning cash on hand $1.026 Billion Available $842 million for Investment Cash flow
Slide 19: Capital Allocated to Maximize Shareholder Returns
Capital Allocated to Maximize Shareholder Returns n Organic growth, robust free cash flow and renewed confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns n Acquisitions of NeoCom Solutions and Communication Services in FY 2011 supplement organic
Slide 20: Financial Update
___ DYCOM INDUSTRIES INC.
Slide 21: Financial Overview
Financial Overview n Organic revenue growth of 17.3% during Q3-2012 n Margins and earnings expanding n Strong balance sheet n Solid cash flows and liquidity n Capital structure designed to produce strong equity returns 20
Slide 22: Contract Revenue Growth
Contract Revenue Growth Organic growth trends improving since fiscal 2009 Five consecutive quarters of organic growth Quarterly results exhibit seasonal weather patterns Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (a)Fiscal 2010 includes an
Slide 23: Margins and Earnings Expansion
Margins and Earnings Expansion Adjusted EBITDA expanding in recent periods Year over year expansion for the last seven quarters Earnings growth from higher revenues and tight Adjusted EBITDA improving from stronger cost controls performance and operating leverage Note: See “Regulation G Disclosure”
Slide 24: Solid Cash Flow
Solid Cash Flow Solid operating cash flows n Funding organic growth n Reflecting efficient conversion of earnings to cash Targeted capital spending supports organic growth and fleet efficiency (a) Trailing Twelve Months (“TTM”) Q3-12 cash flow from operating activities includes of $68.5 million for
Slide 25: Strong Balance Sheet
Strong Balance Sheet Financial profile positioned to address emerging industry opportunities n Fiscal 2021 maturity of Senior Subordinated Notes n Over $250 million of liquidity from cash on hand and availability under Senior Credit agreement n Repurchased $10.9 million of common shares during Q3-12
Slide 26: Strategy for Success
Strategy for Success Organic Growth Higher Equity Returns Lower Share Count 25
Slide 27: Supplemental schedules Regulation G Disclosures
Supplemental schedules Regulation G Disclosures
Slide 28: Regulation G Disclosure
Regulation G Disclosure (a) Year-over-year growth percentage is calculated as follows: (i) revenues in the current twelve month period less (ii) revenues in the comparative prior twelve month period; divided by (ii) revenues in the comparative prior twelve month period. (b) For the Trailing Twelve M
Slide 29: Regulation G Disclosure
(a) Year-over-year growth (decline) percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (ii) revenues in the comparative prior year quarter period. (b) For Q3-12, GAAP and Non-GAAP revenue growth percen
Slide 30: Regulation G Disclosure
Regulation G Disclosure The below table presents the Non-GAAP financial measures of EBITDA and Adjusted EBITDA for the respective periods. EBITDA and Adjusted EBITDA are Non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company
Slide 31: Regulation G Disclosure
Regulation G Disclosure The below table presents the Non-GAAP financial measures of EBITDA and Adjusted EBITDA for the respective periods. EBITDA and Adjusted EBITDA are Non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company
Slide 32: Regulation G Disclosure
re, Regulation G Disclosure Calculation of Cumulative Cash Flows Fiscal 2002 through Fiscal 2011 ($ in millions) Cash Paid Net Cash for Provided by Capital Expenditures,| | Acquisitions,| |Repurchases| Total Other Operating Net of Proceeds from net of cash of Common Other Financing Other Investing F
Slide 33: Credit Suisse 2012 Engineering and Construction Conference
Credit Suisse 2012 Engineering and Construction Conference June 7, 2012
Slide 34: Slide 34
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