Slide 1: Review of Acquisition of Quanta Services' Telecommunications Infrastructure Services Subsidiaries
Exhibit 99.2 Review of Acquisition of Quanta Services’ Telecommunications Infrastructure Services Subsidiaries Fiscal 2013 1st Quarter Presentation November 20, 2012
Slide 2: Participants
Participants Steven E. Nielsen President & Chief Executive Officer Timothy R. Estes Chief Operating Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Counsel 2
Slide 3: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information Fiscal 2013 first quarter results are unaudited. This presentation contains “forward-looking statements” which are statements relating to future events, including a proposed acquisition, future financial performance, strategies, expectations, and t
Slide 4: Overview of the Transaction
Overview of the Transaction n Purchase price of approximately $275 million, subject to adjustments for working capital and other specified items n Subsidiaries acquired represent substantially all of Quanta’s domestic telecommunications infrastructure services operations n Financed through a new $40
Slide 5: Strategic Rationale
Strategic Rationale n Strengthens our customer base, geographic scope, and technical service offerings n Reinforces our rural engineering and construction capabilities, wireless construction resources, and broadband construction competencies n Creates scale as industry announcements indicate custome
Slide 6: Nationwide Operations
Nationwide Operations Operating Headquarter Locations Subsidiaries Well-known subsidiaries strengthen Dycom’s geographic reach 6
Slide 7: Dycom Pro Forma Customer Mix
Dycom Pro Forma Customer Mix Revenue: $1.2 billion $0.5 billion $1.7 billion Transaction strengthens existing customer relationships and diversifies customer base Note: Dycom financials reflect July 2012 fiscal year end. Quanta’s telecommunications infrastructure services subsidiaries reflects trail
Slide 8: Financing and Liquidity
Financing and Liquidity n Financing to be provided by a new, five-year $400 million senior secured credit facility } $125 million term loan A } Revolver borrowings n Terms and covenants that reflect a larger combined business n Ample cash flows expected to reduce borrowings in the near to intermedia
Slide 9: Looking Ahead
Looking Ahead n Revenue from acquired subsidiaries for calendar year 2013 expected to range from $400 million to $450 million n One-time transaction and integration costs of approximately $12 million to $15 million n Excluding one-time costs, currently expecting $0.05 to $0.10 per share of earnings
Slide 10: Dycom Fiscal 2013 1st Quarter Results
Dycom Fiscal 2013 1st Quarter Results
Slide 11: Q1-2013 Overview
Q1-2013 Overview n Contract revenue of $323.3 million as compared to $319.6 million in the prior year quarter n Contract revenue grew organically 2.4%, excluding storm restoration services of $3.7 million in Q1-12 n Adjusted EBITDA of $40.4 million at 12.5% of revenue in Q1-13 n Non-GAAP Net income
Slide 12: Top 5 customers represented 59.6% of revenue
n Top 5 customers represented 59.6% of revenue in Q1-13 and 59.9% in Q1-12 Ø CenturyLink, Dycom’s largest customer, grew organically 8.4% year over year Ø Windstream, Dycom’s fifth largest customer, grew in excess of 47% year over year n Organic revenue growth of 2.4%, excluding revenue from storm r
Slide 13: Backlog and Awards
Backlog and Awards Current Awards and Extensions Customers Description Area Approximate Term (in years) nAT&T Construction and Maintenance Services South Carolina 3 nCharter Communications Construction and Maintenance Services Alabama 1 nTime Warner Cable Underground Facility Locating California 1 n
Slide 14: Summary Results
Summary Results Organic revenue growth of 2.4%, after adjusting for storm work Revenue from Telecommunications customers 86.3% of total in Q1-12 Adjusted EBITDA remains strong at $40.4 million Non-GAAP EPS of $0.36 per common share diluted ($ in millions, Q1-12 Q1-13 except per share data) Net Incom
Slide 15: Selected Information
Selected Information Q1-13 Q1-12 Change (a) ($ in millions)(b) Organic Revenue growth of 2.4%, Contract Revenues $ 323.3 $ 319.6 $ 3.7 excluding revenues from storm restoration services Cost of Earned Revenues $ 257.1 $ 255.2 $ 1.9 in Q1-12 79.5% 79.9% nGrowth within existing contracts General & Adm
Slide 16: Cash Flow and Liquidity
Cash Flow and Liquidity Strong Operating Cash Flows nCash flow of $27.7 million during the quarter nCapital expenditures, net of disposals, of $10.5 million Balance Sheet Strength nAmple liquidity from cash on hand of $54.7 million and $180.9 million of availability under Senior Credit Agreement as
Slide 17: Summary
Summary n Firm end market opportunities } Industry participants aggressively extending or deploying fiber networks to provide wireless backhaul services } Broadband stimulus funding network construction for rural service providers } Cable operators continuing to deploy fiber to small and medium busi
Slide 18: Looking Ahead
Looking Ahead (Excludes effects of announced acquisition for revenues and operating results) n Revenue trends which are improving year over year, excluding storm restoration services n Margins, general and administrative expenses and other income in-line with previous expectations n Subject to our p
Slide 19: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure The above table presents the Non-GAAP financial measure of Adjusted EBITDA for the three months ended October 27, 2012 and October 29, 2011 and a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. Adjusted EBITDA is a Non-GAAP financial
Slide 20: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure Amounts may not foot due to rounding. (a) Year-over-year growth (decline) percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (ii) revenues in the comparative prior yea
Slide 21: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure (a) Year-over-year growth percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (ii) revenues in the comparative prior year quarter period. Amounts may not foot due to ro
Slide 22: Appendix: Regulation G Disclosure
Appendix: Regulation G Disclosure The items reconciling "GAAP" to “Non-GAAP” financial measures are specifically described below: (a) Acquisition related costs. (b) Provision for income taxes includes the tax effect of the other reconciling items identified herein. 22
Slide 23: Review of Acquisition of Quanta Services' Telecommunications Infrastructure Services Subsidiaries
Review of Acquisition of Quanta Services’ Telecommunications Infrastructure Services Subsidiaries Fiscal 2013 1st Quarter Presentation November 20, 2012
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