Slide 1: Q2 Fiscal 2024 Results
Q2 Fiscal 2024 Results August 23, 2023
Slide 2: Participants and Agenda
Participants and Agenda Steven E. Nielsen President and Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Ryan F. Urness General Counsel • Q2 2024 Overview • Industry Update • Financial & Operational Highlights • Outlook • Closing Remarks • Q&A 2
Slide 3: Important Information
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 October 28,
Slide 4: Q2 2024 Overview
Q2 2024 Overview Contract Revenues • Contract revenues of $1.042 billion increased 7.1% year over year Contract Revenues Operating Performance • Non-GAAP Adjusted EBITDA of $130.8 million, or 12.6% of contract revenues, compared to $104.7 million, or 10.8% of contract revenues, in the year ago quart
Slide 5: 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 6: Contract Revenues
Contract Revenues Non-GAAP Organic Growth %1 Top 5 Customers - % of Total Contract Revenues Q2 2023 Q2 2024 Q2 2024 Organic Growth: Total Top 5 All Other Customers Customers Customers2 Top 5 customers represented 59.2% and 67.4% of 7.1% (2.3)% 24.6% contract revenues in Q2 2024 and Q2 2023, respecti
Slide 7: Backlog, Awards and Employees
Backlog, Awards and Employees Backlog5 Employee Headcount Selected Q2 2024 Customer Description of Services Area Term Awards and Extensions: Frontier Fiber Construction CA, TX, IL, MI, IN, OH, NY, CT, PA, FL 2 years Brightspeed Fiber Construction PA, NJ, VA, NC 1 year Charter Rural Fiber Constructio
Slide 8: Financial Highlights
Financial Highlights Contract Revenues Non-GAAP Adjusted EBITDA Diluted EPS 10.8% 12.6% Non-GAAP Adjusted EBITDA % of Contract Revenues • Contract revenues of $1.042 billion increased 7.1% year over year • Non-GAAP Adjusted EBITDA of $130.8 million, or 12.6% of contract revenues • Diluted earnings p
Slide 9: Debt and Liquidity Overview
Debt and Liquidity Overview $ Millions Q1 2024 Q2 2024 Debt Summary 4.50% Senior Notes, mature April 2029 $ 500.0 $ 500.0 6 Senior Credit Facility, matures April 2026: Debt maturity profile and Term Loan Facility 328.1 323.8 Revolving Facility - - liquidity provide financial Total Notional Amount of
Slide 10: Cash Flow Overview
Cash Flow Overview $ Millions Q2 2023 Q2 2024 Cash Flow Summary Operating Cash Flow Operating cash flow $ (12.0) $ 56.3 Capital expenditures, net of disposals $ (39.1) $ (40.0) Repayments on Senior Credit Facility $ (4.4) $ (4.4) Repurchase of common stock $ (10.0) $ - Other financing and investing
Slide 11: Outlook for Quarter Ending October 28, 2023 (Q3 2024)
Outlook for Quarter Ending October 28, 2023 (Q3 2024) Q3 2024 Outlook: CONTRACT REVENUES AMORTIZATION EXPENSE Organic contract revenues expected to be in line $6.1 million with Q3 2023 contract revenues In addition, we expect approximately $30 million of acquired revenues in Q3 2024 INTEREST EXPENSE
Slide 12: Closing Remarks
Closing Remarks We maintain significant customer presence throughout our markets and are encouraged by the increasing breadth in our business Our extensive market presence has allowed us to be at the forefront of evolving industry opportunities • Telephone companies are deploying FTTH to enable giga
Slide 13: Notes
Notes 1. Organic growth (decline) % adjusted for contract revenues from storm restoration services, and for the additional week of operations during the fourth quarter as a result of the Company’s 52/53 week fiscal year, when applicable. 2. Q2 2024 percentage of contract revenues for customers #6 th
Slide 14: Dycom: The people connecting America
VDYCOM The people connecting America®