Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (June 2015)
36 slides from Dycom Industries's investor presentation, Jun 4, 2015
Slide 1: Investor Presentation June 2015
Click to edit Master title style Click to edit Master subtitle style Investor Presentation June 2015 Exhibit 99.1
Slide 2: Forward Looking Statements and Non-GAAP Information
2 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 revenue, prospects, plans and objectives of management, are forward-look
Slide 3: Positioned for Strong Equity Returns
3 Positioned for Strong Equity Returns A leading supplier of specialty contracting services to telecommunication providers nationwide Telecommunications networks fundamental to economic progress Firm and strengthening end market opportunities head2right Telephone companies deploying FTTX to enable v
Slide 4: Nationwide Footprint and Significant Resources
4 Nationwide Footprint and Significant Resources Notes: Total liquidity of $401.9 million includes cash and equivalents of $22.5 million and availability on Senior Credit Facility of $379.3 million as of April 25, 2015. Nationwide footprint head2right Operates in all 50 states, Washington, D.C. and
Slide 5: Intensely Focused on Telecommunications Market
5 Intensely Focused on Telecommunications Market xrhombus Outside Plant & Equipment Installation xrhombus Premise Equipment Installation xrhombusWireless xrhombus Engineering xrhombus Underground Facility Locating Services Crucial to Customers’ Success Contract revenues of $492.4 million for Q3-15 T
Slide 6: Industry Drivers: Strong Secular Trend
6 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Industry Drivers Strong Secular Trend “It took 32 years – from 1984 to 2016 – to generate the first zettabyte of IP traffic annually. However, as this year’s Visual Networking Index fore
Slide 7: Industry Developments
7 Industry Developments Industry increasing network bandwidth dramatically head2right Major industry participants deploying significant wireline networks head2right Newly deployed networks provisioning 1 gigabit speeds, speeds beyond 1 gigabit envisioned head2right Industry developments are producin
Slide 8: Key Driver: FTTx Deployments
8 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 1Q 10 3Q 10 1Q 11 3Q 11 1Q 12 3Q 12 1Q 13 3Q 13 1Q 14 3Q 14 1Q 15 Verizon FiOS Video AT&T U-Verse Key Driver: FTTx Deployments Growth in Subscribers “The cost dynamics of fiber to the home just keep getting better and better.
Slide 9: Key Driver: Fiber to Businesses
9 Key Driver: Fiber to Businesses Customer Business Services Revenue and Addressable Business Services Market “Moving on to Business Services, first-quarter revenue grew 21.4% to over $1.1 billion making again the second largest contributor to Cable revenue growth. […] There is clearly tremendous op
Slide 10: Key Driver: Connect America Fund
10 Key Driver: Connect America Fund New projects from Connect America Fund deploying fiber deeper into the networks head2right Connect America Fund (“CAF”) is part of FCC’s initiative to bring broadband access to rural communities head2right CAF Phase 2 – FCC offers support of up to $1.675 billion a
Slide 11: Key Driver: Wireless Network Upgrades
11 Key Driver: Wireless Network Upgrades “from a capacity standpoint, that is why I have been saying consistently you will not see the Verizon Wireless capital program decrease anytime soon. We believe because of the consumption model, and we believe of the growth of data in the network, which is wh
Slide 12: Local Credibility, National Capability
12 Local Credibility, National Capability Subsidiaries HEWITT Dycom’s Nationwide Presence Dycom headquarters Primary locations
Slide 13: Focused on High Value Profitable Growth
13 Focused on High Value Profitable Growth xrhombus Anticipate emerging technology trends which drive capital spending xrhombus Deliberately target high quality, long-term industry leaders which generate the vast majority of the industry’s profitable opportunities xrhombus Selectively acquire busine
Slide 14: Well Established Customers
14 21.3% 13.9% 13.3% 7.5% 6.3% 4.7% 4.6% 3.0% 2.8% 1.6% 21.0% Well Established Customers Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Q3-15 Customer revenue breakdown Comcast AT&T CenturyLink Verizon Windstream Charter Fairpoint Time Warner Cable Other Corn
Slide 15: Durable Customer Relationships
15 For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. Durable Customer Relationships Revenues ($ in millions) Reflects the results of acquired businesses since date of acquisitions, including telecommunications
Slide 16: Anchored by Long-Term Agreements
16 xrhombus Master Service Agreements (MSA’s) head2right Multi-year, multi-million dollar arrangements covering thousands of individual work orders head2right Generally exclusive requirement contracts xrhombus Long-term contracts relate to specific projects with terms in excess of one year from the
Slide 17: Robust Cash Flow
17 Robust Cash Flow Capital Investments FY2005 – April 25, 2015 ($ in millions) $1.007 billion Cash flow from operations $471 million Provided by borrowings, other financing and investing activities and beginning cash on hand Cumulative Cash Flows Fiscal 2005 – April 25, 2015 $1.478 Billion for Inve
Slide 18: Financial Update
Click to edit Master title style Click to edit Master subtitle style Financial Update
Slide 19: Financial Overview
19 Financial Overview xrhombus Contract revenue of $492.4 million in Q3-15 compared to $426.3 million in Q3-14 xrhombus Strong third quarter operating performance head2right Adjusted EBITDA - Non-GAAP of $63.0 million, or 12.8% of revenue, compared to $39.6 million, or 9.3% in Q3-14 head2right Net i
Slide 20: Contract Revenue Trend
20 7.5% 10.0% 0.9% (3.8)% (0.7)% (2.4)% 10.5% 13.4%12.6% 15.8% 4.6% (2.5)% 1.7% 1.6% 13.8% 18.6% -5% 0% 5% 10% 15% 20% Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Organic Growth % Organic Growth % - Excluding stimulus revenue (10.5)% 2.0% 15.4% 4.9% 4.7% 4.8% (15)% (10)% (5)% 0% 5% 10% 15% 20% F
Slide 21: Earnings & Backlog
21 Earnings & Backlog Annual Adjusted EBITDA and Adjusted EBITDA as a % of Revenue Net Income – Non-GAAP Quarterly Adjusted EBITDA and Adjusted EBITDA as a % of Revenue Backlog Notes: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures. (a) The amounts an
Slide 22: Cash Flows and Liquidity
22 Q2-15 Q3-15 Cash and equivalents $ 18.4 $ 22.5 7.125% Senior Notes $ 280.5 $ 280.4 $450 million revolver (previously $275 million) 44.0 16.3 Term Loan 109.4 150.0 Total Debt $ 433.9 $ 446.7 Net Debt (Total Debt less Cash) $ 415.5 $ 424.1 Availability under revolver $ 176.6 $ 379.3 Letters of Cred
Slide 23: Capital Allocated to Maximize Shareholder Returns
23 Capital Allocated to Maximize Shareholder Returns xrhombus Strong balance sheet, solid free cash flow and long-term confidence in industry outlook drives capital allocation strategy head2right Invest in organic growth head2right Fiscal 2013 - 2015 acquisitions further strengthen our customer base
Slide 24: Questions & Answers
Click to edit Master title style Click to edit Master subtitle style Questions & Answers
Slide 25: Selected Information from Q3-15 Dycom Results Conference Call Materials
25 Selected Information from Q3-15 Dycom Results Conference Call Materials The following slides 26-27 were used on May 20, 2015 in connection with the Company’s conference call to discuss fiscal 2015 third quarter results and are included for your convenience. Reference is made to slide 2 titled “Fo
Slide 26: Q4-2015 Outlook
26 Q4-2015 Outlook Notes: See “Regulation G Disclosure” slides 29-35 for a reconciliation of GAAP to Non-GAAP financial measures. *Q4-14 effective tax rate was 39.3%; Outlook for Q4-15 is estimated based on an effective tax rate near 38.5% This slide was used on May 20, 2015 in connection with the C
Slide 27: Looking Ahead to Q1-2016
27 Looking Ahead to Q1-2016 Notes: See “Regulation G Disclosure” slides 29-35 for a reconciliation of GAAP to Non-GAAP financial measures. This slide was used on May 20, 2015 in connection with the Company’s conference call to discuss fiscal 2015 third quarter results. Reference is made to slide 2 t
Slide 28: Supplemental Schedules: Regulation G Disclosures
Click to edit Master title style Click to edit Master subtitle style Supplemental Schedules Regulation G Disclosures
Slide 29: Appendix: Regulation G Disclosure
29 Appendix: Regulation G Disclosure Notes: Amounts above may not add due to rounding. (a) Organic Revenue – Non-GAAP are revenues from businesses that are included for the full period in both the current and prior year quarter, excluding storm restoration services, if any. Organic Revenue growth is
Slide 30: Calculation of Cumulative Cash Flows Fiscal 2005 through April 25, 2015
30 Notes: Amounts may not add due to rounding. (a) Other financing activities represents net cash provided by (used in) financing activities less repurchases of common stock. (b) Other investing activities represents net cash provided by (used in) investing activities less capital expenditures, net
Slide 31: Regulation G Disclosure Notes
31 Notes: Amounts may not add due to rounding. (a) Organic Revenue – Non-GAAP are revenues from businesses that are included for the full period in both the current and prior year presented, excluding storm restoration services, if any. Organic Revenue growth is calculated as the percentage increase
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
32 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in millions) Notes: Amounts above may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the mos
Slide 33: Reconciliation of GAAP to Non-GAAP Measures
33 Appendix: Regulation G Disclosure Selected Information- Reconciliation of GAAP to Non-GAAP Measures ($ in millions) Notes: Amounts above may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the mos
Slide 34: Adjusted EBITDA Reconciliation Notes
34 Notes: Amounts above may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the most directly comparable GAAP measure. Adjusted EBITDA is a Non-GAAP financial measure within the meaning of Regulation
Slide 35: Reconciliation of GAAP to Non-GAAP Measures ($ in 000's)
35 Reconciliation of GAAP to Non-GAAP Measures ($ in 000’s) Appendix: Regulation G Disclosure GAAP Reconciling Items Non-GAAP Contract revenues 482,071$ -$ 482,071$ Cost of earned revenues, excluding depreciation and amortization 387,221 (600) (a) 386,621 General and administrative expenses 41,058 -
Slide 36: Click to edit Master title style Click to edit Master subtitle style
Click to edit Master title style Click to edit Master subtitle style Investor Presentation June 2015