Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (May 2024)
27 slides from Dycom Industries's investor presentation, May 24, 2024
Slide 1: Investor Presentation May 2024
,,DYCOM The people connecting America® Investor Presentation May 2024
Slide 2: Important Information
Important Information 2 Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarter ending July 27, 2
Slide 3: Dycom Overview
3 Nationwide footprint with 15,675+ employees across 560+ field offices throughout all 50 states Significant scale $4.2 Billion of contract revenues & $505 Million of Adjusted EBITDA in fiscal 2024 Durable customer relationships with well established, leading telecommunications providers that span d
Slide 4: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market 4 Program Management From the smallest town to the largest city, we manage telecommunications projects that connect America Engineering Our integrated engineering teams work hand-in-hand with construction and logistics teams throughout the full lifecycl
Slide 5: Fiscal 2024 Highlights
Fiscal 2024 Highlights 5 FY 2024 FY 2023 Y/Y Contract Revenues $4,176 $3,808 9.6% Organic Revenue Growth2 6.9% Adjusted EBITDA $505 $366 37.9% Adjusted EBITDA % 12.1% 9.6% Diluted EPS $7.37 $4.74 55.5% Operating Performance • Revenue growth and margin expansion • Total Backlog of $6.364 billion as o
Slide 6: Telecommunications Industry Overview
Telecommunications Industry Overview 6 The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry • Major industry participants are constructing or upgrading significant wireline networks across broad sections of the country • High-c
Slide 7: Telecommunications Industry Overview: Fiber Passings
0 50 100 150 Passings as of 2023 Homes Available - Urban and Suburban Homes Available - Urban, Suburban & Rural U .S . H o m e s w it h F ib e r P a ss in g s (a ) (i n M il li o n s) Telecommunications Industry Overview 7 Massive fiber investment presents significant opportunities for sustained gro
Slide 8: Strong Secular Trend
Strong Secular Trend 8 Data usage and download/upload speeds continue to increase as consumer behavior moves to streaming, video conferencing, and connected devices - John Stratton, Executive Chairman of the Board Frontier Communications - May 2024 • The gigabit subscriber tier in 1Q24 reached 34% o
Slide 9: Key Driver: Fiber to the Home Deployments
Key Driver: Fiber to the Home Deployments 9 Massive fiber investment continues • Analyst research indicates ~7 million homes were passed by network operators in 2023 and ~7.5M new passings are expected in 2024 • Fiber capex continues to increase as rural subsidized opportunities grow from both state
Slide 10: Key Driver: US Government Spending on Communications Infrastructure
Key Driver: US Government Spending on Communications Infrastructure 10 BEAD Funding Allocations by State Source: NTIA Internet for All: State Allocation Totals Selected US Government Programs: Broadband, Equity, Access and Deployment (BEAD) Program Provides $42.5 billion to expand high-speed interne
Slide 11: Key Driver: Wireless Deployments
Key Driver: Wireless Deployments 11 Wireless construction activity in support of newly available spectrum continues this year • Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term • Emerging wireless t
Slide 12: Local Credibility, National Capability
Local Credibility, National Capability 12 Dycom combines local knowledge with national reach Operating Subsidiaries Corporate headquarters Subsidiary headquarters Branch location
Slide 13: Durable Customer Relationships
Durable Customer Relationships 13 Increasing customer breadth and opportunity; well-established investment grade customers comprise a substantial portion of revenue
Slide 14: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 14 FY 2024 Revenue by Contract Type • Dycom is party to hundreds of MSA’s and other agreements with customers that extend for periods of one or more years • Generally multiple agreements maintained with each customer • Master Service Agreements (MSA’s) are multi-year
Slide 15: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation 15 Prudent approach to capital allocation: • $651 million invested in share repurchases • $375 million invested in business acquisitions • $1,411 million in CapEx, net of disposals Fiscal 2014 – Fiscal 2024 Strong operating cash flows of $2.201 billion over 1
Slide 16: Firm and strengthening end market opportunities
Firm and strengthening end market opportunities 16 Telephone companies are deploying FTTH to enable gigabit high speed connections and rural electric utilities are doing the same Dramatically increased speeds for consumers are being provisioned and consumer data usage is growing, particularly upstre
Slide 17: Financial Update
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Slide 18: Annual Trends
Annual Trends Contract Revenues Non-GAAP Adjusted EBITDA $4,176 $505 $3,808 $3,131 Fy2022 Fy 2023 FY 2024 Fy 2022 FY 2023 FY 2028 MEE Non-GAAP Adjusted EBITDA —teNon-GAAP Adjusted EBITDA S Non-GAAP Organic Growth (Decline) %2 Non-GAAP Adjusted Diluted EPS? $7.37 28x $4.74 6.9% (0.2)% $1.52 Fy 2022 F
Slide 19: Quarterly Trends
Quarterly Trends Contract Revenues Non-GAAP Adjusted EBITDA g $1,136 $1,142 $167 2 S07 $1,042 $1,045 $1,042 | | ; L ! [ I | | L | 22023 Q32023 Q42023 Q12024 Q22024 32024 Q42024 Q12025 22023 032023 042023 012024 422024 32024 42024 a1 2025 MME Non-GAAP Adjusted EBITDA —=meNon-GAAP Adjusted EBITDA % No
Slide 20: Debt and Liquidity Overview
Debt and Liquidity Overview 20 • Solid liquidity of $573.6 million at Q1 2025 • Capital allocation prioritizes organic growth, followed by M&A and opportunistic share repurchases, within the context of the Company’s historical range of net leverage Proforma liquidity is $707 million as of Q1 2025 wi
Slide 21: Cash Flow Overview
Cash Flow Overview 21 • Operating cash flow used to support sequential growth • Days Sales Outstanding (“DSO”)6 were 110 days, a reduction of 10 days sequentially • Capital expenditures, net of $29.3 million for Q1 2025 • In February 2024, acquired a telecommunications construction contractor based
Slide 22: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Invest in Organic Growth Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions Selectively acquire businesses that further strengthen our customer relationships, geographic scope, and techni
Slide 23: Committed to Sustainability
Committed to Sustainability 23 We believe that addressing sustainability risks and opportunities through our corporate strategy and operations allows us to best serve our stakeholders People Safety Environment Employees are our most important resource and are at the heart of everything we do. We str
Slide 24: Questions and Answers
Questions and Answers
Slide 25: Outlook slide used May 22, 2024
25 This slide was used on May 22, 2024 in connection with the Company’s conference call for its fiscal 2025 first quarter results. This information is provided for your reference only and should not be interpreted as a reiteration of these projections by the Company at any time after the date origin
Slide 26: Notes
Notes 26 1. The Company’s backlog represents an estimate of services to be performed pursuant to master service agreements and other contractual agreements over the terms of those contracts. These estimates are based on contract terms and evaluations regarding the timing of the services to be provid
Slide 27: The People Connecting America
The People Connecting America ®