Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (June 2014)
33 slides from Dycom Industries's investor presentation, Jun 5, 2014
Slide 1: Investor Presentation June 2014
Investor Presentation June 2014 Exhibit 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Information
2 The three and nine months ended April 26, 2014 results are unaudited. This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and the competitive environment. Other than statements of historical
Slide 3: Positioned for Strong Equity Returns
3 Positioned for Strong Equity Returns A leading supplier of specialty contracting services to telecommunication providers nationwide Telecommunications networks fundamental to economic progress Firm end market opportunities Telephone companies deploying FTTX to enable video offerings and 1
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide Footprint and Significant Resources (*) Includes cash and equivalents of $18.7 million and availability on Senior Credit Facility of $209.4 million Headquartered in Palm Beach Gardens, Florida Nationwide footprint Operates in all 50 states, Washington, D.C. and in Canada Over 40
Slide 5: Intensely Focused on Telecommunications Market
5 Outside Plant & Equipment Installation Premise Equipment Installation Wireless Engineering Underground Facility Locating Intensely Focused on Telecommunications Market Contract Revenues of $426.3 million for the Quarter Ended April 26, 2014 Services Crucial to Customers Success 88.3% 6.9
Slide 6: Industry Drivers: Strong Secular Trend
6 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% GDP Traffic Industry Drivers Strong Secular Trend Sources: U.S. Telecom, The Broadband Association Cisco Visual Networking Index U.S. National Bureau of Economic Analysis N o rth Am eri
Slide 7: Industry Developments
7 Clearly evident that several major industry participants have determined that wireline network bandwidth must increase dramatically Dycom is providing services for 1 gigabit trials and full deployments Services provided across the country to a number of customers Revenue and opportunities dr
Slide 8: Key Driver: FTTx Deployments
8 Key Driver: FTTx Deployments Cumulative Subscribers “Project VIP is accelerating that transformation through our LTE deployment, U-verse expansion, and fiber build to businesses. […] At the same time, we transformed our wireline business from legacy services such as DSL to IP networks and IP servi
Slide 9: Key Driver: Wireless Network Upgrades
9 Key Driver: Wireless Network Upgrades Number of Cell Sites “Our consistent investment in Wireless is the foundation of our success and drives our leadership in network quality, reliability, and the overall customer experience. We will continue to build and expand our network advantage in 4G LTE. O
Slide 10: Key Driver: Fiber to Businesses
10 $9.5B $20.0B $30.0 B $0.8B $2.3B $3.2 B Key Driver: Fiber to Businesses Business Services Revenue and Addressable Business Services Market “[…..] Business Services is now approaching a $4 billion run rate business. Our share continues to grow, but we have only captured about 20% of the small end
Slide 11: Key Driver: Wireless Backhaul
11 Key Driver: Wireless Backhaul Mobile Data Traffic Growth Relative to 2013 “…We also continue to see good growth in ethernet services from our fiber-to-the-tower investments in our wholesale business that we meet the growing data backhaul needs of wireless carriers.” Glen Post, CEO & President, Ce
Slide 12: Local Credibility, National Capability
12 Local Credibility, National Capability Dycom Headquarters Subsidiary Headquarters Dycom’s Nationwide Presence Subsidiaries
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth Anticipate emerging technology trends which drive capital spending Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities Selectively acquire businesses which complement
Slide 14: Well Established Customers
14 20.8% 12.8% 12.1% 7.9% 6.2% 5.5% 4.9% 1.5% 1.3% 27.0% Well Established Customers Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Q3-14 Customer Revenue Breakdown Comcast AT&T CenturyLink Verizon Windstream Charter Edison Time Warner Cable Other Frontier
Slide 15: Durable Customer Relationships
15 Durable Customer Relationships Revenues ($ in millions) FY 2013 reflects the results of the businesses acquired in fiscal 2013, including the operations of the telecommunications infrastructure services subsidiaries acquired by Dycom on December 3, 2012 from Quanta Services, Inc. For comparison p
Slide 16: Anchored by Long-Term Agreements
16 Anchored by Long-Term Agreements Revenues by Contract Type Quarter Ended April 26, 2014 Master Service Agreements Long-term contracts Short-term contracts Master Service Agreements (MSA’s) Multi-year, multi-million dollar arrangements covering thousands of individual work orders Generally e
Slide 17: Robust Cash Flow
17 $543 $347 $322 $331 $- $200 $400 $600 $800 Capital Expenditures Business Acquisitions Share Repurchases FY'13 -FY'14 $678 FY 2004 - 2012 Robust Cash Flow Capital Investments FY2004 – Q3-FY 2014 ($ in millions) $1.021 billion Cash flow from operations $522 million Provided by borrowings, other fin
Slide 18: Financial Update
oPpyrYcom Financial Update
Slide 19: Financial Overview
19 Financial Overview Trailing Twelve Month Q3-14 Revenues of $1.808 billion Backlog of $2.046 billion at April 26, 2014 Solid margins and earnings; Q2-14 & Q3-14 impacted by severe winter weather Strong balance sheet, cash flow and liquidity Capital structure designed to produce strong eq
Slide 20: Contract Revenue Trend
20 9.0% 2.4% 3.5% 6.2% 7.5% 10.0% 0.9% (3.8)% 1.9% (2.4)% 4.0% 10.7% 12.6% 15.8% 4.6% (2.5)% -10% -5% 0% 5% 10% 15% 20% 25% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Organic Growth % Organic Growth % - Excluding stimulus revenue $318 $323 $293 $314 $340 $356 $279 $426 $76 $123 $139 $157 $112 $
Slide 21: Earnings & Backlog
21 $462 $1,565 $1,376 $2,019 $2,003 $2,197 $1,996 $2,147 $2,046 $909 $822 $1,242 $1,208 $1,217 $1,116 $1,193 $1,179 $- $400 $800 $1,200 $1,600 $2,000 $2,400 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Acquired subsidiaries backlog 12 month backlog $20.9 $6.8 $21.9 $39.4 $39.8 $- $5 $10 $15 $20 $
Slide 22: Cash Flows and Liquidity
22 Cash Flows and Liquidity Cash Flow from Operations and Cap-ex, net ($ in millions) Liquidity ($ in millions) Q3-14 Q2-14 Strong Cash Flows and Liquidity Supports Growth (a) Capital expenditures, net of proceeds from asset sales represents capital expenditures less proceeds from sale of assets. (b
Slide 23: Capital Allocated to Maximize Shareholder Returns
23 Capital Allocated to Maximize Shareholder Returns Organic growth, solid free cash flow and confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns Fiscal 2013 acquisitions further strengthen our customer base, geographic scope, and technical s
Slide 24: Selected Information from Q3-14 Dycom Results Conference Call Materials
24 Selected Information from Q3-14 Dycom Results Conference Call Materials The following slides 25-26 were used on May 21, 2014 in connection with the Company’s conference call to discuss fiscal 2014 third quarter results and are included for your convenience. Reference is made to slide 2 titled “Fo
Slide 25: Q4-2014 Outlook
25 Q4-2014 Outlook Note: See “Regulation G Disclosure” slides 28-32 for a reconciliation of GAAP to Non-GAAP financial measures. This slide was used on May 21, 2014 in connection with the Company’s conference call to discuss fiscal 2014 third quarter results. Reference is made to slide 2 titled “For
Slide 26: Looking Ahead to Q1-15
26 Looking Ahead to Q1-15 See “Regulation G Disclosure” slides 28-32 for a reconciliation of GAAP to Non-GAAP financial measures. This slide was used on May 21, 2014 in connection with the Company’s conference call to discuss fiscal 2014 third quarter results. Reference is made to slide 2 titled “Fo
Slide 27: Supplemental Schedules Regulation G Disclosures
Supplemental Schedules Regulation G Disclosures
Slide 28: Appendix: Regulation G Disclosure - Contract Revenue and Organic Growth
28 Amounts may not add due to rounding. Appendix: Regulation G Disclosure Contract Revenue and Organic Growth - Reconciliation of GAAP to Non-GAAP Measures ($ in millions). The table below reconciles GAAP revenue growth to Non-GAAP organic revenue growth. NON-GAAP ADJUSTMENTS GAAP % NON-GAAP - Organ
Slide 29: Cash Flow Summary Reconciliation
29 Net Cash Provided by Operating Activities Capital Expenditures, Net of Proceeds from Asset Sales Cash Paid for Acquisitions, net of cash acquired Repurchases of Common Stock Borrowings and Other Financing Activities (a) Other Investing Activities (b) Total Other Financing and Investing Activities
Slide 30: Organic Revenue Footnotes
30 (a) Organic Revenue – Non-GAAP are revenues from businesses that are included for the full period in both the current and prior year presented, excluding storm restoration services, if any. Organic Revenue growth is calculated as the percentage increase in revenues over those of the comparable pr
Slide 31: Appendix: Regulation G Disclosure - Adjusted EBITDA
31 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in million's, except per share amounts) Amounts may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specif
Slide 32: Appendix: Regulation G Disclosure - Adjusted EBITDA
32 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in million's, except per share amounts) Amounts may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specif
Slide 33: Investor Presentation June 2014
Investor Presentation June 2014