Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q4 2014 Earnings Presentation
19 slides from Dycom Industries's earnings presentation, Aug 27, 2014
Slide 1: Fiscal 2014 4th Quarter Presentation
Fiscal 2014 4th Quarter Presentation August 27, 2014
Slide 2: Participants
2 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
Slide 3: Forward-looking statements and non-GAAP disclaimer
3 Fiscal 2014 fourth quarter and annual results are unaudited. This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and the competitive environment. Other than statements of historical facts, a
Slide 4: Q4-2014 Overview
4 Q4-2014 Overview Notes: See “Regulation G Disclosure” slides 14-18 for a reconciliation of GAAP to Non-GAAP financial measures. Contract revenue of $482.1 million in Q4-14 compared to $478.6 million in Q4-13 Solid growth from several key customers Declines from rural customers on stimulus pr
Slide 5: Industry Update
5 Industry developments are producing opportunities which in aggregate are unprecedented for the industry Major industry participants have initiated significant wireline network deployments Most participants believe newly deployed networks should provision 1 gigabit speeds Dycom well positioned
Slide 6: Revenue Summary
6 2.4% 3.5% 6.2% 7.5% 10.0% 0.9% (3.8)% (0.7)% (2.4)% 4.0% 10.7% 12.6% 15.8% 4.6% (2.5)% 1.7% -10% -5% 0% 5% 10% 15% 20% 25% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Organic Growth % Organic Growth % - Excluding stimulus revenue Revenue Summary Notes: See “Regulation G Disclosure” slides 14-1
Slide 7: Backlog and Awards
7 2,1578,001 10,135 10,349 10,822 11,107 10,410 10,324 10,592 0 3,000 6,000 9,000 12,000 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Employees from acquired subsidiaries Customers Description Area Approximate Term (in years) AT&T Wireless Construction Services Florida, Georgia, Kentucky 3 Co
Slide 8: Summary Results
8 Notes: See “Regulation G Disclosure” slides 14-18 for a reconciliation of GAAP to Non-GAAP financial measures. (a) Includes Q4-14 revenues of $9.5 million and Q4-13 revenues of $2.6 million from businesses acquired during the fourth quarters of fiscal 2014 and 2013. Summary Results Contract Revenu
Slide 9: Selected Financial Information
9 Selected Financial Information Notes: Amounts above may not add due to rounding. Additionally, see “Regulation G Disclosure” slides 14-18 for a reconciliation of GAAP to Non-GAAP financial measures. (a) Gross Margin % - Non-GAAP calculated as the excess of contract revenues over cost of earned rev
Slide 10: Cash Flow and Liquidity
10 Cash Flow and Liquidity Balance Sheet Strength Ample liquidity of $183.3 million from cash on hand and availability on the Credit Agreement Q4-14 CommentaryLiquidity ($ in millions) Q4-14 Q3-14 Selected Cash Flow Information ($ in millions) Q4-14 Q4-13 Operating cash flows reflect working c
Slide 11: Q1-2015 Outlook
11 Q1-2015 Outlook Contract Revenues $512.7 $490.0 - $510.0 Network investments by several large customers Lower revenue from rural customers on stimulus projects Customer spending modulations as strategies adapt to a changing environment Gross Margin % (as a percent of revenue) 20.0% Gross Ma
Slide 12: Looking Ahead to Fiscal Q2-2015
12 Looking Ahead to Fiscal Q2-2015 Looking Ahead Commentary ($ in millions) Q2‐14 ($ in millions) Included for comparison Contract Revenues Expectation of normal winter weather patterns Network investments by several large customers Headwind from lower revenue for rural customers on stimulus p
Slide 13: Looking Ahead
13 Looking Ahead 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 Wireless carriers upgrading from 3G to 4G technologies Industry pa
Slide 14: Appendix: Regulation G Disclosure
14 Appendix: Regulation G Disclosure Notes: Amounts above may not add due to rounding. The above table presents a reconciliation of the Non-GAAP financial measure of Adjusted EBITDA for the periods specified to the most directly comparable GAAP measure. Adjusted EBITDA is a Non-GAAP financial measur
Slide 15: Appendix: Regulation G Disclosure
15 Appendix: Regulation G Disclosure Notes: Amounts above may not add due to rounding. For the quarter ended July 26, 2014 and July 27, 2013, the items reconciling GAAP to Non-GAAP financial measures are specifically described below: (a) Pre-tax charges for wage and hour class action litigation sett
Slide 16: Organic Revenue reconciliation notes
16 Notes: Amounts above may not add due to rounding. (a) Organic Revenue – Non-GAAP are revenues from businesses that are included for the full period in both the current and prior year quarter, excluding storm restoration services, if any. Organic Revenue growth is calculated as the percentage incr
Slide 17: Contract Revenue and Organic Growth Reconciliation
17 Appendix: Regulation G Disclosure Contract Revenue and Organic Growth - Reconciliation of GAAP to Non-GAAP Measures ($ in millions) The table below reconciles GAAP revenue growth to Non-GAAP organic revenue growth (decline). Notes: Amounts above may not add due to rounding. (a) Organic Revenue –
Slide 18: Appendix: Regulation G Disclosure
18 Appendix: Regulation G Disclosure Notes: Amounts above may not add due to rounding. For the year ended July 26, 2014 and July 27, 2013, the items reconciling GAAP to Non-GAAP financial measures are specifically described below: (a) Pre-tax charges for wage and hour class action litigation settlem
Slide 19: Fiscal 2014 4th Quarter Presentation
Fiscal 2014 4th Quarter Presentation August 27, 2014