Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (November 2021)
22 slides from Dycom Industries's investor presentation, Nov 30, 2021
Slide 1: Investor Presentation November / December 2021
November / December 2021Investor Presentation Exhibit 99.1
Slide 2: Important Information
Important Information 2 Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarter ending January 29, 2022 found within
Slide 3: Dycom Overview
3Dycom Overview Leading supplier of specialty contracting services to telecommunication providers throughout the US Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to economic progress Durable customer relation
Slide 4: Financial Overview
Fiscal 2021 Annual Operating Performance Contract Revenues of $3.199 billion Non-GAAP Adjusted EBITDA of $311.0 million, or 9.7% of contract revenues Backlog and Headcount as of October 30, 2021 (Q3 2022) Total Backlog of $5.896 billion Employee headcount of 14,900+ Liquidity as of October 30, 2021
Slide 5: Strong Secular Trend
5Strong Secular Trend Average Upload Consumption Per Subscriber Accelerating Bandwidth Usage and Speed Tier Growth The monthly weighted average data consumed by subscribers in 3Q-21 was 434.9 GB, up 13% from 3Q-20 82% of these subscribers are provisioned at speeds of 100+ Mbps The gigabit subscriber
Slide 6: Industry Update
6Industry Update 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 technologies Industry participants have stated their belief
Slide 7: Intensely Focused on Telecommunications Market
7Intensely Focused on Telecommunications Market Fiscal 2021 Revenue by Customer Type PROGRAM MANAGEMENT PLANNING ENGINEERING & DESIGN PROCUREMENT & CONSTRUCTION FULFILLMENT MAINTENANCE Telecommunications 89.1% Underground Locating 7.2% Electric/Gas Utilities & Other 3.7% Dycom’s extensive market pre
Slide 8: Strong Tailwinds For Fiber Deployments
8Strong Tailwinds For Fiber Deployments Source: Wells Fargo Equity Research Estimates Collective strategic clarity around US telco fiber build plans Increasing consumer demand for bandwidth continues to drive fiber deployments Fiber passings with telcos are poised to materially accelerate, with an e
Slide 9: 5G Deployment
95G Deployment In terms of 5G build-out as of the end of the second quarter, we have coverage of around 200 million POPs. And so, we feel really good about that. And that's all before we're rolling out - we start our C-Band deployment later on this year with most of the deployment happening in 2022
Slide 10: Local Credibility, National Capability
Local Credibility, National Capability Nationwide footprint with more than 40 operating subsidiaries and 14,900+ employees Operating Subsidiaries 11
Slide 11: Durable Customer Relationships
11Durable Customer Relationships
Slide 12: Anchored by Long-Term Agreements
12Anchored by Long-Term Agreements 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, multi-million dollar arrangements cove
Slide 13: 10+ Years of Robust Cash Flow Generation
1310+ Years of Robust Cash Flow Generation Fiscal 2011 – Fiscal 2021 Robust cash flow generation and prudent capital allocation provide strong foundation for returns Strong operating cash flow of $1.684 billion over 10+ years Prudent approach to capital allocation: $540 million invested in share rep
Slide 14: Capital Allocated to Maximize Returns
15Capital Allocated to Maximize Returns Focus on organic growth opportunities through strategic capital investments in the business Dycom is committed to maximizing long term returns through prudent capital allocation Repurchased 25.8 million shares for approximately $808 million from fiscal 2006 th
Slide 15: Financial Update
15 FINANCIAL UPDATE
Slide 16: Annual Trends
16Annual Trends 1 1 Contract Revenues Non-GAAP Adjusted EBITDA
Slide 17: Quarterly Trends
{Quarterly Trends Contract Revenues $810 $354 14 I] ] 1] | | 942020 Q12021 Q22021 32021 42021 Q12022 22022 032022 ‘$ Millions Non-GAAP Adjusted EBITDA $103 ‘$ Millions 42020 Q12021 22021 932021 Q42021 12022 Q22022 932022 mm Non-GAAP Adjusted EBITDA —=®=Non-GAAP Adjusted EBITDA % Non-GAAP Organic Gro
Slide 18: Debt and Liquidity Overview
18Debt and Liquidity Overview 2021 Convertible Notes repaid in full at maturity in September 2021; notional net debt reduced by $60.0 million during Q3 2022 Solid liquidity of $314.7 million at Q3 2022 Sound credit metrics and no near term debt maturities Capital allocation prioritizes organic growt
Slide 19: Cash Flow Overview
19Cash Flow Overview Strong operating cash flow of $104.3 million in Q3 2022 Capital expenditures, net of disposals, for fiscal 2022 expected to range from $135 million to $150 million, an increase of $10 million to $25 million compared to the high end of $125 million in the prior outlook provided i
Slide 20: Questions and Answers
20 QUESTIONS AND ANSWERS
Slide 21: Outlook for Quarter Ending January 29, 2022 (Q4 2022)
Contract revenues Increase modestly from Non-GAAP Organic Contract Revenues of $691.8 million for the quarter ended January 30, 2021 Non-GAAP Organic Contract Revenues for the quarter ended January 30, 2021 excluded $5.7 million in contract revenues from storm restoration services and $53.2 million
Slide 22: Notes
Notes 22 1) 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 Four Quarters Ended January 27, 2018 represent the aggregate of Q3 2017, Q4 2017, Q1 2018, and Q2 2018 for comparative purp
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