Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q2 FY2017 Earnings Presentation
21 slides from Dycom Industries's earnings presentation, Mar 1, 2017
Slide 1: 2nd Quarter Fiscal 2017 Results Conference Call
2nd Quarter Fiscal 2017 Results Conference Call March 1, 2017 Exhibit 99.2
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures Information
2 Forward Looking Statements and Non-GAAP Financial Measures Information 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 r
Slide 3: Participants and Agenda
3 Participants and Agenda Participants Steven E. Nielsen President & Chief Executive Officer Timothy R. Estes Chief Operating Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Counsel Agenda Introduction and Q2-17 Overview Industry Update Financial & Operational Highligh
Slide 4: Q2-17 Overview and Highlights
4 Strong demand and revenue growth Contract revenues of $701.1 million in Q2-17 compared to $559.5 million in Q2-16 Organic growth of 22.9% excluding contract revenues of acquired businesses not included for the entire period of Q2-17 and Q2-16 Strong operating performance Non-GAAP Adjuste
Slide 5: Industry increasing network bandwidth dramatically
5 Industry increasing network bandwidth dramatically Major industry participants deploying significant wireline networks Networks provisioning 1 gigabit speeds; multi-gigabit speeds planned by several industry participants Industry developments have produced opportunities which in aggregate
Slide 6: Revenue Highlights
6 Revenue Highlights Q2-17 organic growth of 22.9%, nine straight quarters of double digit organic growth Revenues from Q2-17 Top 5 customers increased 37.1% organically. All other customers decreased 7.5% organically. Top 5 customers in each period represented 76.2% of revenues in Q2-17 compa
Slide 7: Customers
7 Customers Description Area Approximate Term (in years) AT&T Construction & Maintenance Services Mississippi, Alabama 3 Comcast Construction Services Colorado 2 Construction & Maintenance Services Massachusetts, New Jersey, Pennsylvania, Virginia 1-2 CenturyLink Construction & Maintenance Services
Slide 8: Financial Highlights
8 As a % of Revenues 11.9% 12.3% Revenues of $701.1 million and organic growth of 22.9%. Revenues from acquired businesses contributed $13.4 million in Q2-17. There were no acquired revenues in Q2-16 for comparative purposes. Non-GAAP Adjusted EBITDA increased to 12.3% of revenue in Q2-17 compar
Slide 9: Strong balance sheet and liquidity
9 Strong balance sheet and liquidity Liquidity Overview (a) Availability on Revolver presented net of $57.6 million for outstanding L/C’s under the Senior Credit Agreement at each of Q1-17 and Q2-17. Financial tables - $ in millions Solid operating cash flows * Amounts may not add due to rounding. T
Slide 10: Q3-2017 Outlook and Commentary
10 Q3-2016 Included for comparison Q3-2017 Outlook and Commentary Contract Revenues $ 664.6 $715 - $745 Broad range of demand from several large customers Robust 1 gigabit deployments, fiber deep cable capacity projects accelerating, CAF II underway and core market share growth Total Q3-17 rev
Slide 11: Looking Ahead to Q4-2017
11 Looking Ahead to Q4-2017 Q4-2016 Included for comparison Q4-2017 Outlook and Commentary # of Weeks in Fiscal Quarter 14 Weeks 13 Weeks 13 weeks in Q4-17 compared to 14 weeks in Q4-16 as a result of 52/53 week fiscal year Contract Revenues $ 789.2 (GAAP) $ 727.6 (Non-GAAP organic revenue) (See “
Slide 12: Conclusion
12 Conclusion Firm and strengthening end market opportunities Telephone companies deploying FTTX to enable video offerings and 1 gigabit connections Cable operators continuing to deploy fiber to small and medium businesses with increasing urgency. Overall, cable capital expenditures, new build o
Slide 13: Explanation of Non-GAAP Measures
13 Explanation of Non-GAAP Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, it may use or discuss Non-GAAP fin
Slide 14: Appendix: Regulation G Disclosure
14 Appendix: Regulation G Disclosure (a) Q4-16 contained 14 weeks as a result of our 52/53 week fiscal year as compared to 13 weeks in all other quarterly periods presented herein. The Q4-16 Non-GAAP adjustment is calculated as (i) contract revenues less, (ii) revenues from acquired businesses in ea
Slide 15: Reconciliation of Non-GAAP Adjusted EBITDA
15 Notes: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted EBITDA Unaudited ($ in 000's) Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally acce
Slide 16: Non-GAAP Organic Contract Revenue – certain customers
16 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Organic Contract Revenue – certain customers Unaudited ($ in millions) Use of Non-GAAP Financial Measures The Company reports its financial results in acco
Slide 17: Non-GAAP Adjusted Net Income and Diluted EPS
17 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings Per Share Unaudited ($ in 000's, except per share amounts) Use of Non-GAAP Financial Measures Th
Slide 18: Non-GAAP Adjusted Net Income and Diluted EPS (comparison)
18 Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings Per Share Unaudited ($ in 000's, except per share amounts) For comparison purposes for slides 10
Slide 19: Outlook – Diluted Earnings per Common Share
19 Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Outlook – Diluted Earnings per Common Share Unaudited Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our qu
Slide 20: Appendix: Regulation G Disclosure
20 Appendix: Regulation G Disclosure (a) Q4-16 included an incremental week required by our 52/53 week fiscal calendar. The Q4-16 Non-GAAP adjustment is calculated as (i) contract revenues less, (ii) revenues from acquired businesses in each applicable period, (iii) divided by 14 weeks. Use of Non-G
Slide 21: 2nd Quarter Fiscal 2017 Results Conference Call
2nd Quarter Fiscal 2017 Results Conference Call March 1, 2017