Slide 1: 1st Quarter Presentation
1 st Quarter Presentation November 23, 2010
Slide 2: Participants
Steven E. Nielsen President & Chief Executive Officer Tim Estes Chief Operating Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Counsel Participants
Slide 3: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non- GAAP Information Forward-Looking Statements and Non- GAAP Information Fiscal 2010 first quarter results are unaudited. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including state
Slide 4: Q1-2011 Overview
Q1-2011 Overview n Contract revenue of $261.6 million increased 1.0% year-over-year in Q1-11 n First organic growth since Q4-08 n Q1-11 results of $0.18 per share n Strong liquidity at October 30, 2010 n Repurchased over 3.5 million shares for $34.2 million during the period August 27, 2010 through
Slide 5: Share Repurchase Recap
Fiscal Year Amount Shares Average price paid Fiscal 2006 $186,221,173 8,763,451 $ 21.25 Fiscal 2008 25,159,123 1,693,500 $ 14.86 Fiscal 2009 2,914,806 450,000 $ 6.48 Fiscal 2010 4,488,655 475,602 $ 9.44 Fiscal 2011 (thru 11/22/10) 34,239,112 3,531,400 $ 9.70 Total $253,022,869 14,913,953 $ 16.97 Sha
Slide 6: Revenue Summary
Revenue Summary n Top 5 customers represented 62.0% of revenue in Q1-11 and 65.5% of revenue in Q1-10. n Contract revenue from non-Top 5 customers increased by 11.2%, the fastest rate of growth since Q4 of fiscal 2006. n Overall revenue trends continue to improve in Q1-11. Revenue grew organically f
Slide 7: Backlog and Employees: Current Awards and Extensions
Customers Area Description Approximate Term (in years) n AT&T Georgia, Kentucky, North Carolina Construction and maintenance services 3 n Comcast Maryland Network upgrade 1 n DukeNet North Carolina Fiber to the cell site 1 n Various New Mexico, North Carolina, Tennessee, Virginia, and Wyoming Rural
Slide 8: Opportunities Update
Potential Customers Grants Total Including Recipient Match Opportunities excluding projects related to data centers, libraries, computer/broadband training, mapping and projects outside the lower 48 states 334 $6.076 billion $7.117 billion Actively targeted opportunities 177 $4.397 billion $5.199 bi
Slide 9: Summary Results
Fully Diluted EPS - Non-GAAP Q1-10 Q1-11 $0.15 $0.18 Summary Results Note: See “Regulation G Disclosure” slide 14 for a reconciliation of GAAP to Non-GAAP financial measures. 1.0%
Slide 10: Q1-11 vs Q1-10 Results Comparison
Q1-11 Q1-10 Change (b) ($ in millions) Contract Revenues $261.6 $259.1 $2.5 § Year-over-year revenue increase of 1.0% Cost of Earned Revenues - Non- GAAP (a) $209.3 80.0% $208.0 80.3% $1.4 (0.2)% § Cost of earned revenues as a percentage of revenue improved as a result of improved labor efficiency a
Slide 11: Cash Flow and Liquidity
Cash Flow and Liquidity n Solid operating cash flows during the quarter n Combined days sales outstanding on trade receivables and net unbilled revenues were 62 days in Q1-11 (a) n Capital expenditures, net of disposals at $11.4 million n Over 3.2 million shares repurchased for approximately $31.0 m
Slide 12: Summary
Summary n Clear indications of an improving environment n Notable contract awards n At the forefront of evolving industry opportunities including those generated by rural broadband stimulus funding n Encouraged by deployment of new technologies to consumers and businesses by cable operators n Respon
Slide 13: Looking Ahead
Looking Ahead n Normal seasonal operating patterns and organic growth drive revenue n Improving organic growth and new project opportunities enable ongoing assessments of our portfolio of businesses and contracts n Continued solid and growing cash flows dedicated to accretive acquisition opportuniti
Slide 14: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure Amounts may not foot due to rounding. (a) Non-GAAP adjustments in Q4-10 result from the Company’s 52/53 week fiscal year. The Q4-10 Non-GAAP adjustments reflect the impact of the additional week in Q4-10 and are calculated by dividing contract revenues by 14 weeks.
Slide 15: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure
Slide 16: 1st Quarter Presentation
1 st Quarter Presentation November 23, 2010