Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (September 2018)
37 slides from Dycom Industries's investor presentation, Sep 20, 2018
Slide 1: Investor Presentation September 2018
Exhibit 99.1 CDYCOM THE PEOPLE CONNECTING AMERICA’ Investor Presentation September 2018
Slide 2: Forward Looking Statements, Non-GAAP Financial Measures and Other Information
Forward Looking Statements, Non-GAAP Financial Measures and Other Information o DYCOM This presentation contains “forward-look ”, Other than of historical facts, all statements contained in this presentation, including statements regarding the Company's future financial position, future revenue, pro
Slide 3: Dycom Overview
Dycom Overview ODYCOM Leading supplier of specialty contracting services to telecommunication providers Nationwide footprint » Operates in all 50 states, Washington, D.C. and in Canada » Over 40 operating subsidiaries and over 14,700 employees Strong revenue base, r ionships and profi > Contract rev
Slide 4: Telecommunications Industry Overview
Te FY 3 E 3 z lecommunications Industry Overview ce DYCOM Telec ications networks fi ! to economic progress Fiber is the foundation globally for wireline and wireless networks C de d for bandwidth driving fiber deployments by telecom providers aaa ions provisioned by fiber in U.S., With a low percen
Slide 5: Telecommunications Industry Overview
Telecommunications Industry Overview Ce DYCOM Massive investment cycle in early stages - total U.S. homes passed with fiber below 20% ~250 million Passings (a) Eventual fiber passings estimated to 188 million be approximately 188 million + Over 35 million fiber passings ~75% of completed through 201
Slide 6: Strong Secular Trend
Strong Secular Trend ODYCOM North America Internet Protocol Traffic vs. GDP Growth 50,000 45,000 40,000 35,000 3 ée ; wo Hf 8 eed t i i 5 7000 6 to 15,000 = = 10,000 Strong and stable growth in IP 003 traffic even in times of GDP decline 2000 2002 2008 2006 2008 2010 2012 20148 2016 2018 “IP traffic
Slide 7: Industry Drivers
Industry Drivers CDYCOM Firm and strengthening end market opportunities + Fiber deployments in contemplation of emerging wireless technologies have begun in many regions of the country. A significant number of project initiations are occurring. * Wireless construction activity in support of expanded
Slide 8: Key Driver: High Bandwidth Deployments
Key Driver: High Bandwidth Deployments Ce DYCOM sas ais ova as as Source: AT&T transeriots Telephone companies are deploying fiber to the home and fiber to the node technologies to enable video offerings and 1 gigabit connections Data transmission speeds dramatically increasing Key customer committe
Slide 9: Key Driver: Wireless Network Upgrades
Key Driver: Wireless Network Upgrades ¢?>DYCOM in Number of Cell Sites!#) “Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term “Carriers enhancing coverage and capacity by increasing the number of smal
Slide 10: Key Driver: Fiber to Businesses
Key Driver: Fiber to Businesses CDYCOM Revenue earned by Comcast and Charter from Business Services totaled $12.9 Billion! of an Addressable Market of $70 billion $40 $35 $30 {$ nBilions) $10 $6.8 $6.1 (Comcast Charter " ™ Q2-18 TTM Revenue From Business Services " Addressable Market Sources: Camcos
Slide 11: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market CDYCOM Services Crucial to Customers’ Success “ Outside Plant & Equipment Installation %* Wireless % Premise Equipment Installation “* Engineering “* Underground Facility Locating -positioned to bene, Contract revenues of $799.5 mi for Q2-19 Telecommuni
Slide 12: Local Credibility, National Capability
Local Credibility, National Capability (DYCOM Dycom’s Nationwide Presence “te Dycom Headquarters «© Primary Field Locations nsco & it, SS Ra @ UTILIQQUEST Sani tLc RE- ze Gwesrvorrsorseo. |[F]PAULEY TRIPLED. FIDE = plots NEO [ORTH SKY i — Nogt Sky Qa gem fy ea Spectrum Wireless Solutions
Slide 13: Focused on High Value Profitable Growth
Focused on High Value Profitable Growth CDYCOM “+ Anticipate emerging technology trends that drive capital spending “+ Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities “+ Selectively acquire businesses that compl
Slide 14: Well Established Customers
Well Established Customers ce DYCOM Customer Revenue Breakdown Q2- =— (Comcast © atat we verizon *,5 CenturyLink- Charter snssuear\W COMMUNICATIONS fommunications Dycom has established relationships with: onher KiSource » Telephone companies Communications . . » Wireless carriers iS Dominion om CROW
Slide 15: Durable Customer Relationships
Durable Customer Relationships eDYCOM Revenues ($ in millions) —arar —comeast —centurytink verizon —Windstream charter —unnamed Fv.08 x09 Fr10 ryan Fran Fra3 rraa Fras Fras rar $3,067 guste $2673 $2,022 $1812 $1,609 ae 7% 7% $1,230 $1,201 “ 1,407 36 z 64% $989 Sao: ay 64% m% 3% om _ - [oe [| - oo oe
Slide 16: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements Revenue by Contract Type for ‘al Q2-19 Master Service Agreements Long-term Short-term contracts contracts Backlog ($ in millions) Backlog $9.00 . Spo suas ODYCOM Dycom is party to hundreds of MSA's and other agreements with customers that extend for periods of ane or
Slide 17: Industry Themes
Industry Themes CDYCOM Industry it ing network > Major industry participants deploying significant 1 gigabit wireline networks > Emerging wireless ies are driving significant wireline >» Wireline deployments necessary to facilitate expected decades long deployment of fully converged wireless/wirelin
Slide 18: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation ODYCOM Sources and Uses of Cash ($ in mi Sources of Cash Uses of Cash Fiscal 2008 — 4 Quarters Ended Jan. 2018 “Strong operating cash flow of $1.405 billion over 10+ years * Prudent approach to capital allocation: » $472 million invested in share repurchases
Slide 19: Financial Update
C’DYCOM Financial Update
Slide 20: Financial Overview
Financial Overview -DYCOM “ Strong market opportunities. Operating performance impacted by slower than expected activity on large scale deployments > Contract revenues of $799.5 million in Q2-19 increased organically 0.8% from the comparable prior period >» Non-GAAP Adjusted EBITDA for the quarter e
Slide 21: Contract Revenue Trend
Contract Revenue Trend Financial charts - $ in millions ODYCOM Annual Growth in Contract Revenues Yo caret Fins gaame FY2016 Fy2017 : $2,023, s1ai6 i 1 | | Feo Quarterly Contract Revenues $799 $799 [| : TT i j | de a ao! a” ane Annual Organic Revenue Trend 22.7% 141% 9.6% 49% 47% (0.2)% ae Sa IN Dea
Slide 22: Earnings
Earnings Financial charts - $ in millions, except earnings per share amounts ODYCOM Non-GAAP Adjusted EBITDA pao équarters Ended ian. 2018 me Non Gan Adjusted EBITDA Quarterly Non-GAAP Adjusted EBITDA $129 sus Non-GAAP Adjusted Diluted EPS fo $5.26 Quarterly Non-GAAP Adjusted Diluted EPS $1.87 cos"
Slide 23: Liquidity and Cash Flow
Liquidity and Cash Flow Financial tables - $ in millions Strong balance sheet and robust liquidity [eguicty Swrnary (Cash and equivalents Senior Credit Facility, matures April 2020: As of January 27, 2018 _July 28, 2018 $ Bo $450 million revolver $ - 8 - Term Loan Faciities 3581 346.0 0.75% Converli
Slide 24: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Ce DYCOM Strong balance sheet, solid cash flow and fong-term confidence in industry outlook drives capital allocation strategy “Invest in organic growth * Pursue complementary acquisitions ® Acquisitions have further strengthened Dycom’s customer base, geographi
Slide 25: Questions and Answers
CDYCOM THE PEOPLE CONNECTING AMERICA’ Questions and Answers
Slide 26: Selected Information from Q2-19 Dycom Results Conference Call Materials
CDYCOM THE PEOPLE CONNECTING AMERICA’ Selected Information from Q2-19 Dycom Results Conference Call Materials
Slide 27: Annual Outlook for Fiscal Year Ending January 26, 2019
for * ‘nity Sotemons even though fs shuation mey chonge in the future. For © fal expy of the conference col materials, including the conference call transriet, see the Annual Outlook for Fiscal Year Ending January 26, 2019 (Fiscal 2019) Financial table- $ in millions, except earnings per share amoun
Slide 28: Looking Ahead to the Quarter Ending October 27, 2018
Information and stotements contained insides 27 & 28 that ore forwordlooking are based on information that wos avaiable et ce time the sides were ively Sotemonss even though i stuetion mey chonge in the future. For @ ull epy of the conference ca materia including the cnference call tans, see the Loo
Slide 29: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure @DYCOM Explanation of Non-GAAP Measures “The Company ep results us rnp (GAAP he Compas un ety 2nd weacasy, tinny use ar dncuss Non-GAAP nme] measure, at dened ay Regulation ofthe 5 cyte and xcarg Crrnin, he Cony teies att eereson of cen Nenana Iau ae eter pies arian
Slide 30: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure ¢2?DYCOM was used a fied revert soto Seer, Se AAD rence Merv Ote init mih meet are eT Plecnron dl eer cnted i ce 278 te ee forword-locking ore based om information thot wos avollable at the time the slides were 5 thet ents, Measures to Ci ble GAAP Financial Measures
Slide 31: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure ¢2?DYCOM This slde was used on August 29, to slide 2 ited “ with respect to these slides. The information and statements contained in slides 27 & 28 that ore respect Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures iliation of Net
Slide 32: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Organic Contract Revenues Unaudited ODYCOM ($ in enittions) NON-GAAP ADJUSTMENT: Revenue Growth (Decline)? Revenues from Additional week — Non-GAAP - liars Bie Contract Reve
Slide 33: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure ¢2?DYCOM Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Organic Contract Revenues Unaudited NON-GAAP ADIUSTMENTS Revenue Growth (Decline)% ‘Additional week Revenues from — Revenues from — as aresult of our Non-GAAP - GAA
Slide 34: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure ¢2DYCOM Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Calculation of Cumulative Cash Flows Fiscal 2008 through Fiscol 2018 Unaudited Total Amount Net Cash Provided Capital Expenditures, Cash Paid for Provided by Other erating Ne
Slide 35: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net income, Non-GAAP Adjusted Diluted EPS, and Non-GAAP Adjusted interest Expense Unaudited ($ in 000's, except per share amounts) CDYCOM 2017 ori cass SSE asso gaa
Slide 36: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure ¢2?DYCOM Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted EBITDA Unaudited ($ in 000's, except per share amounts) ros Fuca 2013 Flssl2044 Fucal2015 GLAS Q218 GRAS GLAG FsG!IOI6 GLI? G21? O347 QUI? Fucal2017 QIAB Q
Slide 37: The People Connecting America
CDYCOM THE PEOPLE CONNECTING AMERICA’ Investor Presentation September 2018
Dycom Industries — Investor Presentation (September 2018) on 6ix