Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (December 2014)
34 slides from Dycom Industries's investor presentation, Dec 1, 2014
Slide 1: Investor Presentation December 2014
Click to edit Master title style Click to edit Master subtitle style Investor Presentation December 2014 Exhibit 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Information
2 This presentation contains “forward-looking statements”. These statements relate to future events, our future financial performance, strategies, expectations, and competitive environment. Other than statements of historical facts, all statements contained in this presentation, including statements
Slide 3: Positioned for Strong Equity Returns
3 Positioned for Strong Equity Returns xrhombus A leading supplier of specialty contracting services to telecommunication providers nationwide xrhombus Telecommunications networks fundamental to economic progress xrhombus Firm end market opportunities head2right Telephone companies deploying FTTX to
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide Footprint and Significant Resources Notes: Total liquidity of $162.1 million includes cash and equivalents of $16.5 million and availability on Senior Credit Facility of $145.7 million as of October 25, 2014. xrhombus Headquartered in Palm Beach Gardens, Florida xrhombus Nationwide foot
Slide 5: Intensely Focused on Telecommunications Market
5 xrhombus Outside Plant & Equipment Installation xrhombus Premise Equipment Installation xrhombus Wireless xrhombus Engineering xrhombus Underground Facility Locating Intensely Focused on Telecommunications Market Contract Revenues of $510.4 million for the Quarter Ended October 25, 2014 Services C
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 North Am erica
Slide 7: Industry Developments
7 Industry Developments Industry consensus that network bandwidth needs to increase dramatically head2right Major industry participants have initiated significant wireline network deployments head2right Most participants believe newly deployed networks should provision 1 gigabit speeds head2right In
Slide 8: Key Driver: FTTx Deployments
8 Key Driver: FTTx Deployments Cumulative Subscribers “Along with our gigabit service expansion for businesses, we also announced the availability of gigabit services to residential customers in select locations in 10 cities, including some of our larger markets like Minneapolis/St. Paul, Denver, Se
Slide 9: Key Driver: Fiber to Businesses
9 $10.0B $20.0B $30.0 B $1.0B $2.7B $3.8 B Key Driver: Fiber to Businesses Business Services Revenue and Addressable Business Services Market “Moving on to business services, third-quarter revenue increased 21% to $1 billion and was again the second largest contributor to cable revenue growth in the
Slide 10: Key Driver: Wireless Network Upgrades
10 Key Driver: Wireless Network Upgrades Number of Cell Sites “we absolutely believe that network quality will be the ultimate winner here. And that's why you've seen us be a very consistent CapEx company. And I think as Lowell says, there's physics, you need cash in order to replow that into the LT
Slide 11: Key Driver: Wireless Backhaul
11 Key Driver: Wireless Backhaul Mobile Data Traffic Growth Relative to 2013 “…we continued our fiber deployment to wireless towers to capture the growing demand from wireless carriers for data back haul. During third quarter, we completed fiber to approximately 1,200 towers for a total of nearly 21
Slide 12: Local Credibility, National Capability
12 Local Credibility, National Capability Dycom’s Nationwide Presence Subsidiaries HEWITT
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth xrhombus Anticipate emerging technology trends which drive capital spending xrhombus Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities xrhombus Selectively acquire busine
Slide 14: Well Established Customers
14 21.2% 13.1% 12.8% 7.3%5.0% 4.9% 4.3% 3.7% 1.6%1.2% 24.9% Well Established Customers Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Q1-15 Customer Revenue Breakdown Comcast AT&T CenturyLink Verizon Windstream Charter Ericsson Time Warner Cable Other Unnamed
Slide 15: Durable Customer Relationships
15 Durable Customer Relationships Revenues ($ 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 Long-term contracts Anchored by Long-Term Agreements Revenues by Contract Type Q1-2015 Master Service Agreements Short-term contracts xrhombus Master Service Agreements (MSA’s) head2right Multi-year, multi-million dollar arrangements covering thousands of individual work orders head2right General
Slide 17: Robust Cash Flow
17 Robust Cash Flow Capital Investments FY2005 – FY 2014 ($ in millions) $883 million Cash flow from operations $484 million Provided by borrowings, other financing and investing activities and beginning cash on hand Cumulative Cash Flows Fiscal 2005 – Fiscal 2014 $1.368 Billion for Investment Notes
Slide 18: Financial Update
Click to edit Master title style Click to edit Master subtitle style Financial Update
Slide 19: Financial Overview
19 Financial Overview xrhombus Contract revenue of $510.4 million in Q1-15 compared to $512.7 million in Q1-14 xrhombus Strong operating results xrhombus Strong balance sheet, cash flow and liquidity xrhombus Capital structure designed to produce strong equity returns
Slide 20: Contract Revenue Trend
20 $314 $340 $356 $279 $76 $123 $139 $157 $112 $369 $437 $479 $513 $391 $426 $482 $510 $- $60 $120 $180 $240 $300 $360 $420 $480 $540 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Businesses acquired in Q2-FY'13 (a) 3.5% 6.2% 7.5% 10.0% 0.9% (3.8)% (0.7)% (2.4)% 4.0% 10.7% 12.6% 15.8% 4.6% (2.5)%
Slide 21: Earnings & Backlog
21 Earnings & Backlog Annual Adjusted EBITDA and Adjusted EBITDA as a % of Revenue ($ in millions) Net Income – Non-GAAP ($ in millions) Quarterly Adjusted EBITDA and Adjusted EBITDA as a % of Revenue ($ in millions) Backlog(b) ($ in millions) Notes: See “Regulation G Disclosure” slides for a reconc
Slide 22: Cash Flows and Liquidity
22 $54.1 $43.9 $65.1 $106.7 $84.2 $46.6 $49.2 $52.8 $58.8 $73.7 $- $20 $40 $60 $80 $100 $120 FY2010 FY2011 FY2012 FY 2013 FY'14 Cash Flow from Operations Cap-ex (net)(a) Cash Flows and Liquidity Cash Flow from Operations and Cap-ex, net ($ in millions) Notes: See “Regulation G Disclosure” slides for
Slide 23: Capital Allocated to Maximize Shareholder Returns
23 Capital Allocated to Maximize Shareholder Returns xrhombus Organic growth, solid free cash flow and confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns xrhombus Fiscal 2013 - 2015 acquisitions further strengthen our customer base, geographic s
Slide 24: Questions & Answers
Click to edit Master title style Click to edit Master subtitle style Questions & Answers
Slide 25: Selected Information from Q1-15 Dycom Results Conference Call Materials
25 Selected Information from Q1-15 Dycom Results Conference Call Materials The following slides 26-27 were used on November 25, 2014 in connection with the Company’s conference call to discuss fiscal 2015 first quarter results and are included for your convenience. Reference is made to slide 2 title
Slide 26: Q1-15 Results Conference Call Slide
26 This slide was used on November 25, 2014 in connection with the Company’s conference call to discuss fiscal 2015 first quarter results. Reference is made to slide 2 titled “Forward-Looking Statements and Non-GAAP Information” with respect to this slide. The information and statements below that a
Slide 27: Looking Ahead to Fiscal Q3-15
27 Looking Ahead to Fiscal Q3-15 Notes: See “Regulation G Disclosure” slides 29-33 for a reconciliation of GAAP to Non-GAAP financial measures. (a) The Company defines Adjusted EBITDA - Non-GAAP as earnings before interest, taxes, depreciation and amortization, gain on sale of fixed assets, acquisit
Slide 28: Supplemental Schedules: Regulation G Disclosures
Click to edit Master title style Click to edit Master subtitle style Supplemental Schedules Regulation G Disclosures
Slide 29: Appendix: Regulation G Disclosure
29 Appendix: Regulation G Disclosure Notes: Amounts above may not add due to rounding. (a) Organic Revenue – Non-GAAP are revenues from businesses that are included for the full period in both the current and prior year quarter, excluding storm restoration services, if any. Organic Revenue growth is
Slide 30: Calculation of Cumulative Cash Flows Fiscal 2005 through Fiscal 2014
30 Notes: Amounts may not add due to rounding. (a) Other financing activities represents net cash provided by (used in) financing activities less repurchases of common stock. (b) (b) Other investing activities represents net cash provided by (used in) investing activities less capital expenditures,
Slide 31: Organic Revenue Reconciliation Notes
31 Notes: Amounts may not add due to rounding. (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
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
32 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in millions) Notes: Amounts above may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the mos
Slide 33: Reconciliation of GAAP to Non-GAAP Measures
33 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in millions) Notes: Amounts above may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the mos
Slide 34: Click to edit Master title style Click to edit Master subtitle style
Click to edit Master title style Click to edit Master subtitle style Investor Presentation December 2014
Dycom Industries — Investor Presentation (December 2014) on 6ix