Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q3 2023 Earnings Presentation
24 slides from Dycom Industries's earnings presentation, Nov 22, 2022
Slide 1: Investor Presentation November 2022
Investor Presentation November 2022 1
Slide 2: Important Information: Caution Concerning Forward-Looking Statements
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 January 28,
Slide 3: Dycom Overview
Dycom Overview • Leading supplier of specialty contracting services to telecommunication providers throughout the US • Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to economic progress • Durable customer relations
Slide 4: Financial Overview
Financial Overview Fiscal 2022 Annual Operating Performance • Contract Revenues of $3.131 billion • Non-GAAP Adjusted EBITDA of $244.3 million, or 7.8% of contract revenues Backlog and Headcount as of October 29, 2022 (Q3 2023) • Total Backlog of $6.116 billion • Employee headcount of 15,167 Liquidi
Slide 5: Strong Secular Trend
Strong Secular Trend 5 • The monthly weighted average data consumed by subscribers in 3Q-22 was 495.5 GB, up 14% from 3Q-21 • 87% of these subscribers are provisioned at speeds of 100+ Mbps • The gigabit subscriber tier in 3Q-22 reached 15.44%, up over 35% from a year ago Accelerating Bandwidth Usag
Slide 6: 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 7: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Dycom’s extensive market presence and complete lifecycle services offering have allowed the Company to be at the forefront of evolving industry opportunities • Telephone companies are deploying FTTH to enable gigabit high speed connections and, increasi
Slide 8: Strong Tailwinds For Fiber Deployments
“Obviously, there's some near-term headwinds. But at this point, I don't think that changes our goal in terms of where we want to go or what we think we can do. It's really about all hands on deck right now to see what we can do given permitting and labor issues to get as many enablements in the gro
Slide 9: 5G Deployment
5G Deployment 9 Over $80 billion in 5G Spectrum Investments • Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term • Emerging wireless technologies driving significant wireline deployments • Wireline de
Slide 10: Local Credibility, National Capability
Local Credibility, National Capability Nationwide footprint with 15,167 employees as of October 29, 2022 10 Operating Subsidiaries
Slide 11: Durable Customer Relationships
Durable Customer Relationships 11 4 Quarters Ended Jan 20182 Trailing Twelve Months (TTM) Customer Contract Revenues 1
Slide 12: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 12 FY 2022 Revenue by Contract Type Backlog3 • Dycom is party to hundreds of MSA’s and other agreements with customers that extend for periods of one or more years • Generally multiple agreements maintained with each customer • Master Service Agreements (MSA’s) are m
Slide 13: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation 13 Prudent approach to capital allocation: • $581 million invested in share repurchases • $582 million invested in business acquisitions • $1,155 million in CapEx, net of disposals Robust cash flow generation and prudent capital allocation provide strong foun
Slide 14: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Invest in Organic Growth • Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions • Selectively acquire businesses that further strengthen our customer relationships, geographic scope, and te
Slide 15: Committed to Sustainability
Committed to Sustainability 15 People Safety Environment Employees are our most important resource and are at the heart of everything we do. We strive every day to create the right environment for them to grow their skills, work collaboratively, and deliver our services at the highest quality to our
Slide 16: Financial
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Slide 17: Quarterly Trends
Quarterly Trends @DYCOM Contract Revenues os gn Se sas sa76 il | I 42021 12022 22022 032022 $2022 Q12023 22023 032023 $ Millions Non-GAAP Adjusted EBITDA $ Millions 42021 12022 022022 032022 942022 012023 022023 032023 EE Non-GAAP Adjusted EBITDA —=®=Non-GAAP Adjusted EBITDA % Non-GAAP Organic Growt
Slide 18: Annual Trends
Annual Trends 18 $2,978 $3,128 $3,340 $3,199 $3,131 4 Qtrs Ended Jan 2018 FY 2019 FY 2020 FY 2021 FY 2022 Contract Revenues $ M il li o n s $383 $330 $310 $311 $244 12.9% 10.5% 9.3% 9.7% 7.8% 4 Qtrs Ended Jan 2018 FY 2019 FY 2020 FY 2021 FY 2022 Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA Non-
Slide 19: Debt and Liquidity Overview
Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility 19 • Ample liquidity of $444.3 million at Q3 2023 • Sound credit metrics and no near term debt maturities • Capital allocation prioritizes organic growth, followed by opportunistic share repurchases and M&A
Slide 20: Cash Flow Overview
Cash Flow Overview 20 Operating Cash Flow $ Millions Q3 2022 Q3 2023 Cash Flow Summary Operating cash flow $ 104.3 $ (4.5) Capital expenditures, net of disposals $ (44.1) $ (49.2) Repayments on Senior Credit Facility $ - $ (4.4) Extinguishment of 2021 Convertible Notes $ (58.3) $ - Other financing &
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS
Slide 22: Slide used on November 22, 2022 for Q3 fiscal 2023 conference call
22 This slide was used on November 22, 2022 in connection with the Company’s conference call for its fiscal 2023 third 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 date o
Slide 23: Notes
Notes 1. On October 3, 2022, Lumen divested its ILEC (incumbent local exchange carrier) business in 20 states (the “20-State ILEC Business”) to Brightspeed. The Company continues to serve both Lumen and Brightspeed in connection with various work, including the 20-State ILEC Business. 2. Due to the
Slide 24: The people connecting America
The people connecting America® 24