Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (September 2020)
23 slides from Dycom Industries's investor presentation, Sep 16, 2020
Slide 1: Investor Presentation September 2020
Exhibit 99.1 Investor Presentation September 2020
Slide 2: Important Information
Important Information 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 October 24, 2020 found within t
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 14,000 employees Strong revenue base and customer relationships Contract revenues of $823.9
Slide 4: 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 5: Industry Drivers
Industry Drivers Solid end market activity despite challenging economic backdrop Fiber deployments enabling new wireless technologies are underway in many regions of the country Telephone companies are deploying FTTH to enable 1 gigabit high speed connections Fiber deep deployments to expand capacit
Slide 6: Strong Secular Trend
Strong Secular Trend North America Internet Protocol Traffic vs. GDP Growth Data Usage Growth & Broadband Speeds 20% 80,000 Weighted Average Data Consumed Provisioned Speed Tiers of Broadband s per Month Subscribers e t 15% 60,000 y 400 100% b 380 a g i 10% 40,000 G 90% 350 5% 20,000 80% c 300 ) i e
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 AT&T d 80 e 5,000 t c ) s e 70 4,500 0 n 0 n 0 ( o 4,000 C s 60 r s e t 3,5
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 exceed 1,000,000 by 2027; hundreds of thousands of s
Slide 9: 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 Q2 2021 Revenue by Customer Type: 90.6% 7.2% 2.2% Telecommunications Underground Electr
Slide 10: Local Credibility, National Capability
Local Credibility, National Capability Operating Subsidiaries
Slide 11: Well Established Customers
Well Established Customers Top 5 Customers Q2 2021 Organic growth (decline)2: (6.8)% (9.2)% 2.0% Top 5 customers represented 76.6% and 78.6% of contract Total Customers Top 5 Customers All Other Customers revenues in Q2 2021 and Q2 2020, respectively Q2 2021 % of contract revenues from customers #6
Slide 12: Durable Customer Relationships
Durable Customer Relationships $ Millions s e $900 u n e v e $800 R t c a $700 r t n o Verizon C $600 r e m AT&T o $500 t s u C $400 CenturyLink $300 Comcast $200 Windstream $100 Charter $- 2016 2017 2018 2019 2020 Trailing Twelve Months Ended January8 s e u $4,000 n e v $3,340 e $3,500 R $3,128 t $
Slide 13: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements Revenue by Contract Type for Fiscal 2020 Backlog3 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 14: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation $2,117 $2,117 Strong operating cash flow of Business Other Cash Flow Acquisitions $709 $618 $1.357 billion over 10+ years Prudent approach to capital allocation: Share Repurchases $444 $444 million invested in share repurchases $618 million invested in busine
Slide 15: Financial Update
Financial Update
Slide 16: Financial Overview
Financial Overview Strong market opportunities Contract revenues of $823.9 million for Q2 2021, compared to $884.2 million for Q2 2020 Non-GAAP Adjusted EBITDA for Q2 2021 of $102.7 million, or 12.5% of contract revenues, compared to $89.2 million, or 10.2% of contract revenues, for Q2 20201 Non-GAA
Slide 17: 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 $384 o 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 8 8 Jan. 2018 Jan.
Slide 18: Quarterly Trends
Quarterly Trends Contract Revenues Non-GAAP Adjusted EBITDA $103 $884 $884 s $99 s n n o i $92 o l i l $89 l i l i $848 M M $ $ $834 $74 $824 $70 $814 $60 $45 $749 $738 12.5% 11.6% 1 10.2% 10.4% 8.8% 8.6% 8.0% 6.0% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2019 Q4 2019 Q1 20
Slide 19: Liquidity Overview
Liquidity Overview $ Millions Q1 2021 Q2 2021 Debt Summary 0.75% Convertible Senior Notes, mature Sept 2021: $ 293.0 $ 58.3 Senior Credit Facility, matures Oct 2023:4 Term Loan Facilities 438.8 433.1 Revolving Facility 675.0 200.0 Total Notional Amount of Debt $ 1,406.7 $ 691.4 Less: Cash and Equiva
Slide 20: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Dycom is committed to maximizing long term returns through prudent capital allocation Invest in Organic Growth Focus on organic growth opportunities through strategic capital investments in the business Reduce Leverage to Historical Levels Generate free cash flo
Slide 21: Questions and Answers
Questions and Answers 21
Slide 22: Outlook
Outlook This slide was used on August 26, 2020 in connection with the Company’s conference call for its fiscal 2021 second 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 da
Slide 23: Notes
Notes 1) During the quarter ended July 27, 2019, the Company entered into a contract modification that increased revenue produced by a large customer program. As a result, the Company recognized $11.8 million of contract revenues for services performed in prior periods, $0.8 million of related perfo
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