Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (March 2015)
34 slides from Dycom Industries's investor presentation, Mar 3, 2015
Slide 1: Investor Presentation March 2015
Click to edit Master title style Click to edit Master subtitle style Investor Presentation March 2015 Exhibit 99.1
Slide 2: Forward Looking Statements and Non-GAAP Information
2 This presentation contains “forward-looking statements”. Other than statements of historical facts, all statements contained in this presentation, including statements regarding the Company’s future financial position, future revenue, prospects, plans and objectives of management, are forward-look
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 and strengthening end market opportunities head2right Telephone companies deploying FTTX to enable v
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide Footprint and Significant Resources Notes: Total liquidity of $195.0 million includes cash and equivalents of $18.4 million and availability on Senior Credit Facility of $176.6 million as of January 24, 2015. Nationwide footprint head2right Operates in all 50 states, Washington, D.C. an
Slide 5: Intensely Focused on Telecommunications Market
5 Intensely Focused on Telecommunications Market xrhombus Outside Plant & Equipment Installation xrhombus Premise Equipment Installation xrhombusWireless xrhombus Engineering xrhombus Underground Facility Locating Services Crucial to Customers’ Success Contract revenues of $441.1 million for Q2-15 T
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 “Cisco projects that mobile data traffic, even after accounting for Wi-Fi offloading, will grow at a compound annual growth rate of 50%,
Slide 7: Industry Developments
7 Industry Developments Industry increasing network bandwidth dramatically head2right Major industry participants deploying significant wireline networks head2right Most participants believe newly deployed networks should provision 1 gigabit speeds head2right Industry developments are producing oppo
Slide 8: Key Driver: FTTx Deployments
8 Key Driver: FTTx Deployments Growth in Subscribers “We expect to continue to invest in our high-speed Internet and Prism TV capabilities with plans to continue to push fiber deeper and deeper into our network, thereby increasing the high-speed Internet speeds that we can offer our customers. We ar
Slide 9: Key Driver: Fiber to Businesses
9 Key Driver: Fiber to Businesses Customer Business Services Revenue and Addressable Business Services Market ”Business Services was again a large contributor to cable revenue growth with revenue increasing 21.9% for the full year to $4 billion. The majority of that revenue is generated by small bus
Slide 10: Key Driver: Connect America Fund
10 Key Driver: Connect America Fund New projects from Connect America Fund deploying fiber deeper into the networks head2right Connect America Fund (“CAF”) is part of FCC’s initiative to bring broadband access to rural communities head2right CAF Phase 2 – FCC offers support of up to $1.8 million ann
Slide 11: Key Driver: Wireless Network Upgrades
11 Key Driver: Wireless Network Upgrades “Our Wireless strategy is built on making consistent network investments and providing a compelling value proposition to our customers. Our investment strategy is focused on adding network capacity ahead of accelerating demand, which is driven by increasing 4
Slide 12: Local Credibility, National Capability
12 Local Credibility, National Capability Dycom’s Nationwide Presence Subsidiaries HEWITT
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth xrhombus Anticipate emerging technology trends which drive capital spending xrhombus Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities xrhombus Selectively acquire busine
Slide 14: Well Established Customers
14 Well Established Customers Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Q2-15 Customer revenue breakdown 22.0% 14.0% 13.1%6.3% 5.0% 4.8% 3.4% 2.9% 2.1%1.2% 25.2% Comcast AT&T CenturyLink Verizon Windstream Charter Parsons Time Warner Cable Other Corning
Slide 15: Durable Customer Relationships
15 For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. Durable Customer Relationships Revenues ($ in millions) Reflects the results of the businesses acquired since date of acquisitions, including telecommunicat
Slide 16: Anchored by Long-Term Agreements
16 xrhombus Master Service Agreements (MSA’s) head2right Multi-year, multi-million dollar arrangements covering thousands of individual work orders head2right Generally exclusive requirement contracts xrhombus Long-term contracts relate to specific projects with terms in excess of one year from the
Slide 17: Robust Cash Flow
17 Robust Cash Flow Capital Investments FY2005 – January 24, 2015 ($ in millions) $966 million Cash flow from operations $450 million Provided by borrowings, other financing and investing activities and beginning cash on hand Cumulative Cash Flows Fiscal 2005 – January 24, 2015 $1.416 Billion for In
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 $441.1 million in Q2-15 compared to $390.5 million in Q2-14; Organic increase of 10.5% xrhombus Strong operating results head2right Adjusted EBITDA - Non-GAAP of $47.6 million, or 10.8% of revenue, compared to $28.2 million, or 7.2% in Q2-14 head2ri
Slide 20: Contract Revenue Trend
20 Contract Revenue Trend Annual Growth in Contract Revenues Quarterly Contract Revenues Quarterly Organic Revenue Trend *Fiscal 2010 includes an incremental week as the result of Dycom’s 52/53 week fiscal year. (a) Notes: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP
Slide 21: Earnings & Backlog
21 Earnings & Backlog Annual Adjusted EBITDA and Adjusted EBITDA as a % of Revenue Net Income – Non-GAAP Quarterly Adjusted EBITDA and Adjusted EBITDA as a % of Revenue Backlog(b) Notes: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (a) The amounts
Slide 22: Cash Flows and Liquidity
22 Cash Flows and Liquidity Cash Flow from Operations and Cap-ex, net Notes: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (a) Capital expenditures, net of proceeds from asset sales represents capital expenditures less proceeds from sale of assets.
Slide 23: Capital Allocated to Maximize Shareholder Returns
23 Capital Allocated to Maximize Shareholder Returns xrhombus Organic growth, solid free cash flow and confidence in industry outlook promotes capital allocation strategy to further expand shareholder returns xrhombus Fiscal 2013 - 2015 acquisitions further strengthen our customer base, geographic s
Slide 24: Questions & Answers
Click to edit Master title style Click to edit Master subtitle style Questions & Answers
Slide 25: Selected Information from Q2-15 Dycom Results Conference Call Materials
25 Selected Information from Q2-15 Dycom Results Conference Call Materials The following slides 26-27 were used on February 25, 2015 in connection with the Company’s conference call to discuss fiscal 2015 second quarter results and are included for your convenience. Reference is made to slide 2 titl
Slide 26: Looking Ahead to Q3-2015
26 ($ in millions, except earnings per share) (% as a percent of revenue) Q3-2014 Included for comparison Q3-2015 Outlook and Commentary Contract Revenues $ 426.3 $ 455.0 - $ 475.0 head2right Expectation of adverse weather conditions in the beginning of Q3-15 head2right Network investments by severa
Slide 27: Looking Ahead to Q4-2015
27 Looking Ahead to Q4-2015 ($ in millions) (% as a percent of revenue) Q4-2014 Included for comparison Q4-2015 Outlook and Commentary Contract Revenues $ 482.1 Revenue growth % of mid- single to low-double digits compared to Q4-14 head2right Network investments by several large customers head2right
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: Organic Revenue Reconciliation Notes
29 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 calculated as the percentage incr
Slide 30: Calculation of Cumulative Cash Flows Fiscal 2005 through January 24, 2015
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) Other investing activities represents net cash provided by (used in) investing activities less capital expenditures, net
Slide 31: Organic Revenue Non-GAAP 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 March 2015
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