Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (March 2020)
26 slides from Dycom Industries's investor presentation, Mar 12, 2020
Slide 1: Investor Presentation March 2020
Investor Presentation March 2020
Slide 2: Important Information
Important Information Caution Concerning Forward-Looking Statements This presentation contains “forward-looking statements”. Other than statements of historical facts, all statements contained in this presentation, including statements regarding the Company’s future financial position, future revenu
Slide 3: Dycom Overview
Dycom Overview Leading supplier of specialty contracting services to telecommunication providers Operates throughout the continental United States Nationwide footprint with 44 operating subsidiaries and over 15,000 employees Strong revenue base and customer relationships Contract revenues of $3.340
Slide 4: Strong Secular Trend
Strong Secular Trend North America Internet Protocol Traffic vs. GDP Growth Data Usage Growth & Broadband Speeds 10% 70,000 Weighted Average Data Provisioned Speed Tiers of Consumed per Month Broadband Subscribers 8% 60,000 6% 4% 50,000 c ) i e f h f g t a n n r a o 2% T h P M C 40,000 I r P a e c D
Slide 5: Industry Update
Industry Update Industry increasing network bandwidth dramatically Major industry participants constructing or upgrading significant wireline networks across broad sections of the country generally designed to provision 1 gigabit network speeds directly to consumers or wirelessly using 5G technologi
Slide 6: Industry Drivers
Industry Drivers Firm and strengthening end market opportunities Fiber deployments enabling new wireless technologies are underway in many regions of the country Wireless construction activity in support of expanded coverage and capacity continued to grow through the deployment of enhanced macro cel
Slide 7: Key Driver: High Bandwidth Deployments
Key Driver: High Bandwidth Deployments Companies deploying fiber-to-the-home, fiber-to-the-node, and fiber-to-the-building technologies to enable 1 gigabit connections Data transmission speeds dramatically increasing Verizon CenturyLink d 60 e 175 ) t s c d e n n a n 50 170 s o u C o s h t t e 40 5G
Slide 8: Key Driver: 5G Deployment
Key Driver: 5G Deployment Growth in Number of Small Cells Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term Number of small cells are predicted to hit 1,000,000 by 2027; hundreds of thousands of smal
Slide 9: Key Driver: Fiber to Businesses
Key Driver: Fiber to Businesses Revenue earned by Comcast and Charter from Business Services totaled over $14 Billion8 of an Addressable Market of $80 billion s $60 n o i l l i B $50 $ $50 $40 Q4-19 TTM Revenue $30 From Business Services $30 Addressable Market $20 $10 $7.8 $6.4 $- Source: Comcast an
Slide 10: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Complete Lifecycle Services Crucial to Customers’ Success INSTALLATION MAINTENANCE Wireline Wireless PROCUREMENT PROGRAM CONSTRUCTION MANAGEMENT ENGINEERING & DESIGN Fiscal 2020 Revenue by Customer Type: 90.8% 6.1% 3.1% Telecommunications Underground El
Slide 11: Local Credibility, National Capability Operating Subsidiaries
Local Credibility, National Capability Operating Subsidiaries
Slide 12: Well Established Customers
Well Established Customers Top 5 Customers Fiscal 2020 Organic growth: 8.3% 8.5% 7.4% Top 5 customers represented 78.4% of contract revenues in Total Customers Top 5 Customers All Other Customers both fiscal 2020 and fiscal 2019 Fiscal 2020 % of contract revenues from remaining Top 10 customers: 21.
Slide 13: Durable Customer Relationships
Durable Customer Relationships $ Millions s e $900 u n e v e $800 R t c a $700 r t on Verizon C $600 r e AT&T om $500 t s u C $400 CenturyLink $300 Comcast $200 Windstream $100 Charter $- 2016 2017 2018 2019 2020 Trailing Twelve Months Ended January9 s e u $4,000 n e v $3,340 e $3,500 R $3,128 t $2,
Slide 14: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements Revenue by Contract Type for Fiscal 2020 Backlog6 Master Service Agreements 65.4% 23.2% 11.4% Short-term contracts Long-term contracts Dycom is party to hundreds of MSA’s and other agreements with customers that extend for periods of one or more years Generally multi
Slide 15: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation $2,117 $2,117 Share Strong operating cash flow of Repurchases Other Cash Flow $444 $709 $1.357 billion over 10+ years Business Prudent approach to capital allocation: Acquisitions $618 $444 million invested in share repurchases $618 million invested in busine
Slide 16: Financial Update
Financial Update
Slide 17: Financial Overview
Financial Overview Strong market opportunities Contract revenues of $3.340 billion for fiscal 2020, compared to $3.128 billion for fiscal 2019 Non-GAAP Adjusted EBITDA for fiscal 2020 of $310.0 million, or 9.3% of contract revenues, compared to $330.0 million, or 10.5% of contract revenues, for fisc
Slide 18: Annual Trends
Annual Trends Growth in Contract Revenues Non-GAAP Adjusted EBITDA $3,340 $442 s $3,067 $3,128 s n $2,978 n $390 o o $384 i i l l l $2,673 l i i $330 M M $310 $ $ 14.6% 14.4% 12.9% 10.5% 9.3% FY2016 FY2017 4 Quarters Ended FY2019 FY2020 FY2016 FY2017 4 Quarters Ended FY2019 FY2020 Jan. 2018² Jan. 20
Slide 19: Quarterly Trends
Quarterly Trends Growth in Contract Revenues Non-GAAP Adjusted EBITDA $98 $99 $100 s n $92 o i l l i M $74 $74 $ $60 $45 12.2% 11.6% 11.3% 10.4% 10.1% 8.8% 8.0% 6.0% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA as a % of Revenue Or
Slide 20: Liquidity Overview
Liquidity Overview Reduced net debt by $176.3 million during Q4 2020 . Repaid $103.0 million of revolving borrowings . Repaid $5.6 million of term loan borrowings . Purchased $25.0 million of principal amount of Notes . Increased cash by $42.7 million Liquidity of $337.3 million at January 25, 2020
Slide 21: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Dycom is committed to maximizing long term returns through prudent capital allocation Invest in Reduce Leverage to Pursue Complementary Organic Growth Historical Levels Acquisitions Focus on organic growth opportunities Generate free cash flow to reduce net Sele
Slide 22: Questions and Answers
Questions and Answers 22
Slide 23: Selected Information from Q4 2020 Conference Call Materials
Selected Information from Q4 2020 Dycom Results Conference Call Materials The following slides 24 & 25 were used on February 26, 2020 in connection with the Company’s conference call for its fiscal 2020 fourth quarter results and are included for your convenience. Reference is made to slide 2 titled
Slide 24: Outlook for Quarter Ending April 25, 2020 (Q1 2021)
Outlook for Quarter Ending April 25, 2020 (Q1 2021) The projections on this slide were provided on February 26, 2020 in connection with the Company’s conference call regarding its fiscal 2020 fourth quarter results. This information is provided for your reference only and should not be interpreted a
Slide 25: Looking Ahead to the Quarter Ending July 25, 2020 (Q2 2021)
Looking Ahead to the Quarter Ending July 25, 2020 (Q2 2021) The projections on this slide were provided on February 26, 2020 in connection with the Company’s conference call regarding its fiscal 2020 fourth quarter results. This information is provided for your reference only and should not be inter
Slide 26: Notes
Notes 1) Organic growth (decline) % adjusted for revenues from acquired businesses and storm restoration services, when applicable. 2) Due to the change in the Company’s fiscal year end, the Company’s fiscal 2018 six month transition period consisted of Q1 2018 and Q2 2018. Amounts provided for the
Dycom Industries — Investor Presentation (March 2020) on 6ix