Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q3 FY2016 Earnings Presentation
20 slides from Dycom Industries's earnings presentation, May 25, 2016
Slide 1: 3rd Quarter Fiscal 2016 Results Conference Call
3rd Quarter Fiscal 2016 Results Conference Call May 25, 2016 Exhibit 99.2
Slide 2: Forward Looking Statements and Non-GAAP Information
2 Looking Statements and Non-GAAP Information 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 an
Slide 3: Participants and Agenda
3 Participants and Agenda Participants Steven E. Nielsen President & Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Counsel Agenda Introduction and Q3-16 Overview Industry Update Financial & Operational Highlights Outlook Conclusion Q&A
Slide 4: Q3-16 Overview and Highlights
4 Strong demand and revenue growth Contract revenues of $664.6 million in Q3-16 compared to $492.4 million in Q3-15. Organic growth of 28.7% excluding contract revenues of acquired businesses not included for the entire period of Q3-16 and Q3-15. Strong operating performance Non-GAAP Adjuste
Slide 5: Industry increasing network bandwidth dramatically
5 Industry increasing network bandwidth dramatically Major industry participants deploying significant wireline networks Newly deployed networks provisioning 1 gigabit speeds; speeds beyond 1 gigabit envisioned Industry developments have produced opportunities which in aggregate are without pr
Slide 6: Revenue Highlights
6 Revenue Highlights 28.7% organic growth during Q3-16, sixth straight quarter with double digit organic growth Revenues from Q3-16 Top 5 customers increased 48.9% organically. All other customers decreased 4.5% organically Top 5 customers represented 72.5% of revenues in Q3-16 compared to 62.
Slide 7: Employees, Backlog and Customer Contracts
7 10,592 10,708 10,824 10,852 11,159 12,193 11,980 12,472 5,000 6, 7,000 8, 9,000 10, 1,000 12, 3,000 14, 5,000 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Employees $1,345 $1,396 $1,564 $1,618 $1,619 $1,622 $1,999 $2,212 $2,331 $2,359 $2,986 $2,912 $3,680 $3,967 $5,056 $5,649 $- $500 $1,0 ,500
Slide 8: Financial Highlights
8 As a % of Revenues 12.8% 13.8% Revenues of $664.6 million and organic growth of 28.7% year-over-year. Recently acquired businesses contributed $30.8 million in Q3-16. Non-GAAP Adjusted EBITDA increased to 13.8% of revenue in Q3-16 compared to 12.8% in Q3-15 Gross margin % increased 55 basis
Slide 9: Strong balance sheet and robust liquidity
9 Strong balance sheet and robust liquidity Liquidity Overview (a) Availability on Revolver presented net of $57.7 million for outstanding L/C’s under the Senior Credit Agreement at each of Q2-16 and Q3-16. Financial tables - $ in millions Operating cash flows support growth with our top customers *
Slide 10: Q4-2016 Outlook and Commentary
10 Q4-2015 Included for comparison Q4-2016 Outlook and Commentary (includes additional week of operations) Contract Revenues $ 578.5 $750 - $780 Broad range of demand from several large customers Robust 1 gigabit deployments, CAF II accelerating, core market share growth, cable capacity projects
Slide 11: Looking Ahead to Q1-2017
11 Looking Ahead to Q1-2017 Q1-2016 Included for comparison Q1-2017 Outlook and Commentary Contract Revenues $ 659.3 Total revenue growth % in mid to high teens as a % of revenue compared to Q1-16 Broad range of demand from several large customers Robust 1 gigabit deployments, CAF II acceleratin
Slide 12: Conclusion
12 Conclusion Firm and strengthening end market opportunities Telephone companies deploying FTTX to enable video offerings and 1 gigabit connections Cable operators continuing to deploy fiber to small and medium businesses with overall cable capital expenditures, new build opportunities, and cap
Slide 13: Appendix: Regulation G Disclosure
13 Appendix: Regulation G Disclosure Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, we may u
Slide 14: Reconciliation of Non-GAAP Adjusted EBITDA
14 Notes: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted EBITDA Unaudited ($ in 000's) Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally acce
Slide 15: Non-GAAP Organic Contract Revenue – certain customers
15 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Organic Contract Revenue – certain customers Unaudited ($ in millions) Use of Non-GAAP Financial Measures The Company reports its financial results in acco
Slide 16: Non-GAAP Adjusted Net Income and Adjusted EPS
16 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Earnings Per Share Unaudited ($ in 000's, except per share amounts) Use of Non-GAAP Financial Measures The Compan
Slide 17: Non-GAAP Adjusted Net Income and Adjusted EPS
17 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Earnings Per Share Unaudited ($ in 000's, except per share amounts) Use of Non-GAAP Financial Measures The Compan
Slide 18: Outlook – Diluted Earnings per Common Share
18 Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Outlook – Diluted Earnings per Common Share Unaudited Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our qu
Slide 19: Explanation of Non-GAAP Measures
19 Explanation of Non-GAAP Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, it may use or discuss Non-GAAP fin
Slide 20: 3rd Quarter Fiscal 2016 Results Conference Call
3rd Quarter Fiscal 2016 Results Conference Call May 25, 2016