Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (March 2023)
24 slides from Dycom Industries's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023 1
Slide 2: Important Information
Important Information 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 April 29, 20
Slide 3: Dycom Overview
Dycom Overview • Leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States • Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to ec
Slide 4: Financial Overview
Financial Overview Fiscal 2023 Annual Operating Performance • Contract Revenues of $3.808 billion • Non-GAAP Adjusted EBITDA of $366.1 million, or 9.6% of contract revenues Backlog and Headcount as of January 28, 2023 (Q4 2023) • Total Backlog of $6.141 billion • Employee headcount of 15,410 Liquidi
Slide 5: Strong Secular Trend
Strong Secular Trend Data usage and download/upload speeds continue to increase as consumer behavior moves to streaming, video conferencing, and connected devices Average Upload Consumption Per Subscriber Accelerating Bandwidth Usage and Speed Tier Growth 40 Weighted Average Data Consumed per Month
Slide 6: Industry Update
Industry Update 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-capacity fiber networks
Slide 7: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Dycom’s extensive market presence and complete lifecycle services Fiscal 2023 Revenue by Customer Type offering have allowed the Company to be at the forefront of evolving industry opportunities Telecommunications 89.7% Underground Locating 7.2% • Telep
Slide 8: Strong Tailwinds For Fiber Deployments
Strong Tailwinds For Fiber Deployments Increasing clarity around US telco fiber build plans HHs Passed with Telco Fiber • Increasing consumer demand for bandwidth continues to drive fiber deployments • New fiber passings estimate of ~7.5 million for 2023 compared to ~6.6 million in 2022, representin
Slide 9: 5G Deployment
5G Deployment Wireless construction activity in support of newly available spectrum continues this year Over $80 billion in 5G Spectrum Investments • Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term
Slide 10: Local Credibility, National Capability
Local Credibility, National Capability Nationwide footprint with 15,410 employees as of January 28, 2023 Operating Subsidiaries 10
Slide 11: Durable Customer Relationships
Durable Customer Relationships 1 11
Slide 12: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements FY 2023 Revenue by Contract Type Backlog2 • 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 mult
Slide 13: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation Robust cash flow generation and prudent capital allocation provide strong foundation for returns Strong operating cash flows of $2.049 billion over 10+ years Prudent approach to capital allocation: • $617 million invested in share repurchases • $582 million i
Slide 14: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Dycom is committed to maximizing long term returns through prudent capital allocation Invest in Organic Growth • Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions • Selectively acquire b
Slide 15: Committed to Sustainability
Committed to Sustainability 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 We strive to ensure the highest Working together, we strive to importa
Slide 16: Financial Update
FINANCIAL UPDATE | Se
Slide 17: Annual Trends
Annual Trends @DYCOM Contract Revenues Non-GAAP Adjusted EBITDA $3,808 3,340 $3,128 s $3,199 $3,131 g $366 L Fy 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 mmm Non-GAAP Adjusted EBITDA =meNon-GAAP Adjusted EBITDA % Non-GAAP Organic Growth (Decline) %° Non-GAAP Adjust
Slide 18: Quarterly Trends
Quarterly Trends @DYCOM Contract Revenues Non-GAAP Adjusted EBITDA $115 gor, S082 a $854 $876 $917 s 788 2 $727 $ $761 5 | i i . Q12022 Q22022 32022 Q42022 Q12023 22023 Q32023 _Q42023 12022 2.2022 032022 942022 12023 922023 032023 Q42023 mmm Non-GAAP Adjusted EBITDA =meNon-GAAP Adjusted EBITDA % Non
Slide 19: Debt and Liquidity Overview
Debt and Liquidity Overview $ Millions Q3 2023 Q4 2023 Debt Summary 4.50% Senior Notes, mature April 2029 $ 500.0 $ 500.0 Debt maturity profile and 5 Senior Credit Facility, matures April 2026: Term Loan Facility 336.9 332.5 liquidity provide financial Revolving Facility - - flexibility Total Notion
Slide 20: Cash Flow Overview
Cash Flow Overview Operating Cash Flow $ Millions Q4 2022 Q4 2023 Cash Flow Summary Operating cash flow $ 145.5 $ 246.2 Capital expenditures, net of disposals $ (43.4) $ (62.3) Repayments on Senior Credit Facility $ - $ (4.4) Repurchase of common stock $ (56.1) $ (20.2) Other financing and investing
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS
Slide 22: Slide used March 1, 2023 for fourth quarter results call
This slide was used on March 1, 2023 in connection with the Company’s conference call for its fiscal 2023 fourth 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 origina
Slide 23: Notes
Notes 1. On October 3, 2022, Lumen divested its ILEC (incumbent local exchange carrier) business in 20 states (the “20-State ILEC Business”) to Brightspeed. The Company continues to serve both Lumen and Brightspeed in connection with various work, including the 20-State ILEC Business. 2. The Company
Slide 24: The people connecting America
The people connecting America ® 24
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