Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (December 2019)
26 slides from Dycom Industries's investor presentation, Dec 3, 2019
Slide 1: Investor Presentation December 2019
Exhibit 99.1 Investor Presentation December 2019
Slide 2: Important Information: Caution Concerning Forward-Looking Statements
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, customer relationships and profitable results Contract
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 generally designed to provision 1 gigabit network speeds directly to consumers or wirelessly using 5G technologies Wireline deployments are the found
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 has begun to accelerate through the deployment of enhanced mac
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 and 1 gigabit connections Data transmission speeds dramatically increasing CenturyLink Verizon 155 ) s d n a 150 s u o h t 145 n i ( s g 140 n i d l i u B
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 900,000 with new 5G technologies creating growth opportunities in the near to intermediate term 800,000 700,000 Number of small cells are predicted to hit 800,000 by 2026; 600,000
Slide 9: Key Driver: Fiber to Businesses
Key Driver: Fiber to Businesses Revenue earned by Comcast and Charter from Business Services totaled $14 Billion8 of an Addressable Market of $80 billion s $60 n o i l l i B $50 $ $50 $40 Q3-19 TTM Revenue $30 From Business Services $30 Addressable Market $20 $10 $7.6 $6.4 $- Source: Comcast and Cha
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 Q3 2020 Revenue by Customer Type: 90.3% 6.3% 3.4% Telecommunications Underground Electr
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 Q3 2020 Organic growth: 4.7% 3.4% 9.6% Top 5 customers represented 77.3% and 78.4% of contract Total Customers Top 5 Customers All Other Customers revenues in Q3 2020 and Q3 2019, respectively Q3 2020 % of contract revenues from remaining Top 10 customers:
Slide 13: Durable Customer Relationships
Durable Customer Relationships 6 s e u n e v e R t c a r t n o C r e m o t s u C 6 s e u n e v e R t c a r t n o C r e m o t s u C 13
Slide 14: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements Revenue by Contract Type for Fiscal Q3 2020 Backlog3 Master Service Agreements 68.2% 19.4% 12.5% 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 mu
Slide 15: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation $2,150 million $2,150 million Net Increase in Cash $106 Share Strong operating cash flow of Other Cash Flow Repurchases $724 $447 $1.425 billion over 10+ years Business Prudent approach to capital allocation: Acquisitions $618 $447 million invested in share r
Slide 16: Financial Update
Financial Update
Slide 17: Financial Overview
Financial Overview Strong market opportunities Contract revenues of $884.1 million for Q3 2020, compared to $848.2 million for Q3 2019 Non-GAAP Adjusted EBITDA for Q3 2020 of $91.7 million, or 10.4% of contract revenues, compared to $98.6 million, or 11.6% of contract revenues, for Q3 2019 Non-GAAP
Slide 18: Contract Revenue Trend
Contract Revenue Trend Annual Growth in Contract Revenues Quarterly Contract Revenues Annual Organic Revenue Trend1 Quarterly Organic Revenue Trend1 18
Slide 19: Earnings
Earnings Non-GAAP Adjusted EBITDA Quarterly Non-GAAP Adjusted EBITDA Non-GAAP Adjusted Diluted EPS Quarterly Non-GAAP Adjusted Diluted EPS 19
Slide 20: Liquidity Overview
Liquidity Overview Cash Flow from Operating Activities Balance sheet reflects the strength of our business Cash flow and borrowings used to support organic growth and capital expenditures during Q3 2020 Liquidity of $219.6 million at October 26, 2019 consisting of availability under Senior Credit Fa
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 Pursue Complementary Share Organic Growth Acquisitions Repurchases Leverage our scale and expertise to Selectively acquire businesses that Repurchased 23.9 million sh
Slide 22: Questions and Answers
Questions and Answers 22
Slide 23: Selected Information from Q3 2020 Dycom Results Conference Call Materials
Selected Information from Q3 2020 Dycom Results Conference Call Materials The following slides 24 & 25 were used on November 26, 2019 in connection with the Company’s conference call for its fiscal 2020 third quarter results and are included for your convenience. Reference is made to slide 2 titled
Slide 24: Outlook for Quarter Ending January 25, 2020 (Q4 2020)
Outlook for Quarter Ending January 25, 2020 (Q4 2020) The projections on this slide were provided on November 26, 2019 in connection with the Company’s conference call regarding its fiscal 2020 third quarter results. This information is provided for your reference only and should not be interpreted
Slide 25: Looking Ahead to the Quarter Ending April 25, 2020 (Q1 2021)
Looking Ahead to the Quarter Ending April 25, 2020 (Q1 2021) The projections on this slide were provided on November 26, 2019 in connection with the Company’s conference call regarding its fiscal 2020 third 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
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