Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Raymond James 35th Annual Institutional Investors Conference (March 2014)
34 slides from Dycom Industries's conference presentation, Mar 4, 2014
Slide 1: Raymond James 35th Annual Institutional Investors Conference
Raymond James 35th Annual Institutional Investors Conference March 4, 2014 EXHIBIT 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Information
2 Fiscal 2014 second quarter 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 facts, all statemen
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 $16.3 million and availability on Senior Credit Facility of $199.3 million Headquartered in Palm Beach Gardens, Florida Nationwide footprint Operates in all 50 states, Washington, D.C. and in Canada Over 40
Slide 5: Services Crucial to Customer Success
5 Services Crucial to Customer Success Engineering Underground Facility Locating Outside Plant & Equipment Installation Premise Equipment Installation Wireless Services
Slide 6: Intensely Focused on Telecommunications Market
6 Intensely Focused on Telecommunications Market Contract Revenues $390.5 million Quarter Ended January 25, 2014 Telecommunications Underground Facility Locating Electric and Gas Utilities and Other Construction and Maintenance 87.0% 7.5%5.5%
Slide 7: Industry Drivers Strong Secular Trend
7 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 8: Key Driver: Wireless Network Upgrades
8 Key Driver: Wireless Network Upgrades Number of Cell Sites “Our consistent investment in Wireless is the foundation of our success and drives our leadership and network quality, reliability, and the overall customer experience. We will continue to build on our network advantage in 4G LTE by deploy
Slide 9: Key Driver: FTTx Deployments
9 Key Driver: FTTx Deployments Cumulative Subscribers “Video, we believe, is a big growth opportunity. So we have a major initiative to make our network the best-in-class for video delivery for both wireline and wireless.” Randall Stephenson – Chairman & CEO, AT&T – January 2014 A significant comp
Slide 10: Key Driver: Fiber to Businesses
10 $9.5B $20.0B $30.0 B $0.8B $2.3B $3.2 B Key Driver: Fiber to Businesses Business Services Revenue and Addressable Business Services Market “We are also making progress penetrating midsize enterprises, and this business now represents 20% of this group's revenue and is growing at an accelerated ra
Slide 11: Key Driver: Wireless Backhaul
11 Key Driver: Wireless Backhaul Mobile Data Traffic Growth Relative to 2013 “… during the fourth quarter, we completed approximately 930 fiber to the tower builds, for a total of 4,100 fiber builds in 2013, and over 18,800 total fiber-connected towers across our footprint. In 2014, we expect to com
Slide 12: Local Credibility, National Capability
12 Local Credibility, National Capability Dycom Headquarters Subsidiary Headquarters Dycom’s Nationwide Presence Subsidiaries Acquired in 2013
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth Anticipate emerging technology trends which drive capital spending Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities Selectively acquire businesses which complement
Slide 14: Well Established Customers
14 18.7% 14.4% 12.0% 8.3% 6.0% 4.6% 4.4% 1.6% 1.4% 28.6% Well Established Customers Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Q2-14 Customer Revenue Breakdown Comcast AT&T CenturyLink Verizon Windstream Charter Ericsson Time Warner Cable Other Frontier
Slide 15: Durable Customer Relationships
15 Durable Customer Relationships Revenues ($ 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 January 25, 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
Slide 17: Robust Cash Flow
17 $526 $347 $322 $330 $- $200 $400 $600 $800 Capital Expenditures Business Acquisitions Share Repurchases FY'13 $677 FY 2004 - 2012 Robust Cash Flow Capital Investments FY2004 – Q2-FY 2014 ($ in millions) $991 million Cash flow from operations $534 million Provided by borrowings, other financing an
Slide 18: Financial Update
oPpyrcom Financial Update
Slide 19: Financial Overview
19 Financial Overview Trailing Twelve Month Q2-14 Revenues of $1.8 billion Backlog of $2.147 billion at January 25, 2014 Solid margins and earnings; Q2-14 impacted by severe winter weather Strong balance sheet, cash flow and liquidity Capital structure designed to produce strong equity ret
Slide 20: Contract Revenues and Organic Growth
20 $296 $318 $323 $293 $314 $340 $356 $279 $76 $123 $139 $157 $112 $- $60 $120 $180 $240 $300 $360 $420 $480 $540 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Businesses acquired in FY'13 $369 $437 $479 $513 $391 17.3% 9.0% 2.4% 3.5% 6.2% 7.5% 10.0% 0.9% 8.2% 1.9% -2.4% 4.0% 10.7% 12.6% 15.8% 4.6
Slide 21: Earnings & Backlog
21 $29.9 $40.5 $40.4 $37.2 $44.0 $58.1 $63.2 $28.2 10.1% 12.7% 12.5% 10.1% 10.1% 12.1% 12.3% 7.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% $0 $10 $20 $30 $40 $50 $60 $70 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Adjusted EBITDA (Non-GAAP) (a) Adjusted EBITDA as a % of Revenue (Non-GAAP) $20.9 $6.8 $2
Slide 22: Strong Cash Flows and Liquidity Supports Growth
22 $54.1 $43.9 $65.1 $106.7 $83.4 $46.6 $49.2 $52.8 $58.8 $76.9 $- $20 $40 $60 $80 $100 $120 FY2010 FY2011 FY2012 FY 2013 TTM Q2-14 Cash Flow from Operations Cap-ex (net)(a) Cash Flows and Liquidity Cash Flow from Operations and Cap-ex, net ($ in millions) Liquidity ($ in millions) Q2-14 Q1-14 Stron
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 Q2-14 Dycom Results Conference Call Materials
24 Selected Information from Q2-14 Dycom Results Conference Call Materials The following slides 25-26 were used on February 26, 2014 in connection with the Company’s conference call to discuss fiscal 2014 second quarter results and are included for your convenience. Reference is made to slide 2 titl
Slide 25: Q3-2014 Outlook
25 Q3-2014 Outlook Note: See “Regulation G Disclosure” slides 28-33 for a reconciliation of GAAP to Non-GAAP financial measures. This slide was used on February 26, 2014 in connection with the Company’s conference call to discuss fiscal 2014 second quarter results. Reference is made to slide 2 title
Slide 26: Looking Ahead to Q4-14
26 Looking Ahead to Q4-14 See “Regulation G Disclosure” slides 28-33 for a reconciliation of GAAP to Non-GAAP financial measures. This slide was used on February 26, 2014 in connection with the Company’s conference call to discuss fiscal 2014 second quarter results. Reference is made to slide 2 titl
Slide 27: Supplemental Schedules Regulation G Disclosures
Supplemental Schedules Regulation G Disclosures
Slide 28: Organic Revenue Non-GAAP Definitions
28 (a) Organic Revenue – Non-GAAP are revenues from businesses that are included for the full period in both the current and prior year quarter presented, excluding storm restoration services, if any. Organic Revenue growth is calculated as the percentage increase in revenues over those of the compa
Slide 29: Regulation G Disclosure: Reconciliation of GAAP to Non-GAAP Measures
29 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in 000's, except per share amounts) Amounts may not add due to rounding. For the quarter ended January 26, 2013 and July 27, 2013, the items reconciling "GAAP" to “Non-GAAP” financial measures a
Slide 30: Regulation G Disclosure: Calculation of Cumulative Cash Flows
30 Amounts may not add due to rounding. Appendix: Regulation G Disclosure Calculation of Cumulative Cash Flows Fiscal 2004 through Q2-2014 ($ in millions) Net Cash Provided by Operating Activities Capital Expenditures, Net of Proceeds from Asset Sales Cash Paid for Acquisitions, net of cash acquired
Slide 31: Organic Revenue Non-GAAP Definitions
31 (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 32: Regulation G Disclosure: Adjusted EBITDA Reconciliation
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: Regulation G Disclosure: Adjusted EBITDA Reconciliation
33 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 34: Raymond James 35th Annual Institutional Investors Conference
Raymond James 35th Annual Institutional Investors Conference March 4, 2014
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