Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (November 2023)
24 slides from Dycom Industries's investor presentation, Nov 22, 2023
Slide 1: Investor Presentation November 2023
Investor Presentation November 2023
Slide 2: Important Information: Caution Concerning Forward-Looking Statements
Important Information Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarter ending January 27,
Slide 3: Dycom Overview
Dycom Overview • Leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States • Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to ec
Slide 4: Financial Highlights as of Q3 2024
Financial Highlights as of Q3 2024 4 8.9% 11.9% $326 $494 Q3-23 TTM Q3-24 TTM Millions $3,652 $4,141 Q3-23 TTM Q3-24 TTM Millions $3.92 $7.40 Q3-23 TTM Q3-24 TTM Contract Revenues Diluted EPSAdjusted EBITDA +13.4% +51.4% +89.0% 11.9% 8.9% Adjusted EBITDA % of Contract Revenues • On a trailing 12-mon
Slide 5: Strong Secular Trend
Strong Secular Trend 5 Data usage and download/upload speeds continue to increase as consumer behavior moves to streaming, video conferencing, and connected devices Just in the last four years, we have 13 times more attached devices to Wi-Fi than we did in 2018, five years. And we've got 1 billion d
Slide 6: Industry Update
Industry Update The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry • Major industry participants are constructing or upgrading significant wireline networks across broad sections of the country • High-capacity fiber networks
Slide 7: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Dycom’s extensive market presence and complete lifecycle services offering have allowed the Company to be at the forefront of evolving industry opportunities • Telephone companies are deploying FTTH to enable gigabit high speed connections and rural ele
Slide 8: Massive fiber investment continues
0 50 100 150 200 250 Passings as of 2022 Current Commitments Total Addressable U .S . H o m e s w it h F ib e r P a ss in g s (a ) (i n M il li o n s) Fiber to the Home • Eventual fiber passings estimated to be approximately 230 million • Certain markets expected to have 2 or more service providers
Slide 9: 5G Deployment
5G Deployment 9 Over $80 billion in 5G Spectrum Investments • Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term • Emerging wireless technologies driving significant wireline deployments • Wireline de
Slide 10: Local Credibility, National Capability
Local Credibility, National Capability Nationwide footprint with 15,401 employees as of October 28, 2023 10 Operating Subsidiaries
Slide 11: Durable Customer Relationships
Durable Customer Relationships 11 Increasing customer breadth and opportunity
Slide 12: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 12 FY 2023 Revenue by Contract Type • 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
Slide 13: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation 13 Prudent approach to capital allocation: • $617 million invested in share repurchases • $582 million invested in business acquisitions • $1,287 million in CapEx, net of disposals Robust cash flow generation and prudent capital allocation provide strong foun
Slide 14: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Invest in Organic Growth • Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions • Selectively acquire businesses that further strengthen our customer relationships, geographic scope, and te
Slide 15: Committed to Sustainability
Committed to Sustainability 15 People Safety Environment Employees are our most important resource and are at the heart of everything we do. We strive every day to create the right environment for them to grow their skills, work collaboratively, and deliver our services at the highest quality to our
Slide 16: Financial Update
FINANCIAL UPDATE
Slide 17: Annual Trends
Annual Trends ODYCOM Contract Revenues Non-GAAP Adjusted EBITDA FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $3,808 FY2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2023 mm Non-GAAP Adjusted EBITDA _—#=Non-GAAP Adjusted EBITDA % Non-GAAP Organic Growth (Decline) %2 Non-GAAP Adjusted Diluted EPS? 21.8% $4.74 FY
Slide 18: Quarterly Trends
Quarterly Trends ODYCOM Contract Revenues S $1,136 $1,042 $1,045 $1,042 972 as ¢ so17 il | L Q42022 Q12023 Q22023 Q32023 Q42023 Q12024 Qz2024 Q32024 Non-GAAP Adjusted EBITDA 42022 Q12023 Q22023 Q32023 Q42023 Q1 2024 Q22024 Q32024 mm Non-GAAP Adjusted EBITDA —e=Non-GAAP Adjusted EBITDA % Non-GAAP Org
Slide 19: Debt and Liquidity Overview
Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility 19 • Ample liquidity of $464.1 million at Q3 2024 • Capital allocation prioritizes organic growth, followed by M&A and opportunistic share repurchases, within the context of the Company’s historical range o
Slide 20: Cash Flow Overview
Cash Flow Overview 20 Operating Cash Flow • Operating cash flow used to support organic growth during fiscal 2024 • Days Sales Outstanding (“DSO”)6 were 121 days, an increase of 10 days sequentially • Gross capital expenditures were $67.2 million and disposal proceeds were $10.2 million for Q3 2024
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS
Slide 22: Slide used November 21, 2023 on fiscal 2024 third quarter call
22 This slide was used on November 21, 2023 in connection with the Company’s conference call for its fiscal 2024 third quarter results. This information is provided for your reference only and should not be interpreted as a reiteration of these projections by the Company at any time after the date o
Slide 23: Notes
Notes 1. The Company’s backlog represents an estimate of services to be performed pursuant to master service agreements and other contractual agreements over the terms of those contracts. These estimates are based on contract terms and evaluations regarding the timing of the services to be provided.
Slide 24: Dycom: The people connecting America
VYDYCOM The people connecting America®
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