Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (June 2008)
30 slides from Dycom Industries's investor presentation, Jun 4, 2008
Slide 1: Presentation June 2008
Presentation June 2008 (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," "anticipate," "estimate," "intend," "forecast," "may," "project", "outlook" and similar
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
Revenue Mix Quarter Ended April 26, 2008 - $293.4 million Telecommunications Underground Facility Locating Electric Utilities and Other Construction and Maintenance Q3 2008 Telecommunications 0.771 Underground Facility Locating 0.184 Electric Utilities and Other Customers 0.045
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 Third quarter fiscal 2008 revenues of $293.4 million Strong financial profile Shareholders' equity $451.5 million Committed Bank Facility - $194.1 million available at April 26, 2008 Operating Cash Flow in excess of $108 million last fiscal year and $23.9
Slide 7: Strong subsidiaries, broad national footprint
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 Renewed capital spending growth 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 Approximately two-thirds of the RBOCs' capital budgets are expecte
Slide 11: Cable Capital Spending
Cable Capital Spending Capex Commentary Spending outlook improving as some bandwidth expansion necessary Capital expenditures increasing as new product offerings, such as VOIP and HDTV, gain traction and former Adelphia properties require enhancements Ongoing plant and network enhancements are criti
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 As Opportunities Expand
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 Total 58699864 Verizon-combined 53112651 Comcast Corporation Total 34019238 Time Warner 25753189 Embarq Total 17976690 Charter Communications 17049617 Qwest 9571864 Windstream 7734002 Cox 4176242 Cablevision 3753904 All Other 61592497 Blue-chip, predominantly investment grade clients comprise t
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 AT&T Comcast EMBARQ Verizon Qwest Adelphia Charter Comm Time Warner 1999 186 148 29 19 0 0 0 7 2000 153 183 43 22 52 2 26 2 2001 171 165 43 28
Slide 17: Revenue - Quarter ended April 26, 2008
Revenue - Quarter ended April 26, 2008 Dycom's revenue stream is primarily generated by long-term contractual agreements Master Service Agreements (MSA's) Muliti-year, multi-million dollar arrangements covering thousands of individual work orders Generally exclusive requirement contracts Long-term c
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
Financial Summary qu 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
Fiscal Year Results (1) The amounts for FY 2004, FY2005, FY2006, and FY2007 are non-GAAP financial measures adjusted to exclude goodwill impairment charges and other adjusting items. See "Regulation G Disclosure" slides for a reconciliation of non-GAAP financial measures.
Slide 22: Fiscal Year Results
Fiscal Year Results (1) The amounts for FY2004, FY2005, FY2006, and FY2007 are non-GAAP financial measures adjusted to exclude goodwill impairment charges and other adjusting items. See "Regulation G Disclosure" slides for a reconciliation of non-GAAP financial measures.
Slide 23: Annual Cash Flow and EBITDA - Adjusted (non-GAAP)
Annual Cash Flow and EBITDA - Adjusted (non-GAAP) See "Regulation G Disclosure" slides for a reconciliation of non-GAAP financial measures.
Slide 24: Quarterly Revenue, EBITDA - Adjusted and Income from Continuing Operations
EBITDA - Adjusted (non-GAAP) Revenue Income from continuing operations - Adjusted (non-GAAP) Q1/06 28.7 253.6 10.5 Q2/06 22.6 237.1 3.9 Q3/06 27.5 251.1 8.3 Q4/06 31.4 253.2 10.1 Q1/07 32.9 270.6 9.5 Q2/07 27.9 258.3 5.6 Q3/07 35.8 291.6 11.1 Q4/07 42.7 317.3 14.5 Q1/08 45.1 329.7 15.3 Q2/08 23.2 28
Slide 25: Quarterly Cash Flow and Cap-ex, net
Quarterly Cash Flow and Cap-ex, net
Slide 26: Strong Financial Profile to Support Growth
Strong Financial Profile to Support Growth Annual EBITDA-Adjusted (non-GAAP) represents the sum of the four most recent quarters of EBITDA-Adjusted (non-GAAP) which excludes a $7.6 million settlement of wage & hour litigation and the reversal of $1.7 million in expense for the resolution of a pre-ac
Slide 27: Regulation G Disclosure
Regulation G Disclosure Reconciliation of GAAP to non-GAAP measures (Sin ilions) (amounts may not add due to rounding) FY ended | FY ended | FY ended FY ended 2003 | 2004 | _ 2005 Fiscal 2006 2006 aa as ae ‘Adjusting items Federal employment tax audit 8B 2° 6 PHB os Ge G= G62 65 G = Gain on sale lon
Slide 28: Regulation G Disclosure
Regulation G Disclosure he Reconciliation of GAAP to non-GAAP measures (S inion (amounts may not ade de o rounding) Fended 2007 Fiscal 2008 or of a 2 ‘Adjusting tems: ‘Charge for wage and hour tigation 62 628s 056 5 B85 5 D5 2 Reversal of interest expense on income tax related abies : : : : : > 03)
Slide 29: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure
Slide 30: Presentation June 2008
Presentation June 2008 YCOM ) INDUSTRIES ING.