Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q4 FY2013 Earnings Presentation
19 slides from Dycom Industries's earnings presentation, Aug 28, 2013
Slide 1: Fiscal 2013 4th Quarter Presentation
Fiscal 2013 4th Quarter Presentation August 28, 2013 Exhibit 99.2
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 Information
3 Forward-Looking Statements and Non-GAAP Information Fiscal 2013 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 envir
Slide 4: Q4-2013 Overview
4 Q4-2013 Overview Contract revenue of $478.6 million as compared to $318.0 million in the prior year quarter Contract revenues grew 7.5% organically, after excluding Q4-13 revenues from acquired subsidiaries of $139.1 million and Q4-12 storm restoration revenues of $2.3 million Adjusted EBITD
Slide 5: Revenue Summary
5 Revenue Summary Top 5 customers represented 58.5% of revenue in Q4-13 compared to 61.1% in Q4-12 AT&T, Dycom’s largest customer, grew organically 87.2% CenturyLink, Dycom’s second largest customer, grew organically 6.4% Comcast, Dycom’s fourth largest customer, grew organically 9.0% Orga
Slide 6: Backlog and Awards
6 Backlog and Awards 8,285 8,288 8,207 8,111 8,001 10,135 10,349 10,822 2,157 0 3,000 6,000 9,000 12,000 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Number of Employees Acquired subsidiaries employees $1,442 $1,819 $1,744 $1,565 $1,376 $2,003 $2,197 462 $2,019 $791 $967 $961 $909 $822 $1,242 $1,
Slide 7: Adjusted EBITDA, Contract Revenues and Summary Results
7 $40.5 $58.1 $- $25 $50 $75 Q4-12 Q4-13 Adjusted EBITDA - Non-GAAP ($ in millions) Adjusted EBITDA - Non -GAAP as a % of revenues: 12.7% 12.1% 85.0% 11.0% 4.0% 88.2% 7.4% 4.4% 0% 20% 40% 60% 80% 100% Telecommunications Underground Facility Locating Electric and Gas Utilities and Other Construction
Slide 8: Selected Information
8 Selected Information Organic Revenue growth of 7.5%, excluding revenues from acquired subsidiaries in Q4-13 and storm revenues in Q4-12 Increase in revenues derived from wireless service providers Growth within existing contracts Adjusted EBITDA of $58.1 million, or 12.1%, grew 43.4% from Q4-1
Slide 9: Cash Flow and Liquidity; Balance Sheet Strength
9 $19.4 $51.4 $(2.4) $(3.3) $27.7 $63.5 $0.1 $15.4 $14.4 $20.1 $7.8 $10.6 $10.5 $15.7 $15.1 $17.5 -$15 -$5 $5 $15 $25 $35 $45 $55 $65 $75 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Cash Flows from Operating Activities and Cap-ex, net of disposals ($ in millions) Cash Flows from Operating Activi
Slide 10: Summary
10 Summary Firm end market opportunities Industry participants aggressively extending or deploying fiber networks to provide wireless backhaul services Cable operators continuing to deploy fiber to small and medium businesses Wireless carriers upgrading from 3G to 4G technologies Telephone
Slide 11: Looking Ahead: Outlook
11 Looking Ahead Outlook Contract Revenues Continued total and organic revenue growth as services to wireless carriers remain robust, cable construction strengthens and customers maintain growing expenditures Gross Margin % Improving margin trends as legacy performance remains solid and integration
Slide 12: Looking Ahead: Q1-2014 Outlook
12 Looking Ahead Q1-2014 Outlook (all amounts are estimates - actual amounts may differ) ($ in millions) Q1-2013 Q1-2014 Y-O-Y Comments Contract Revenues $323.3 $475.0 - $495.0 (including $135.0 - $145.0 from acquired subsidiaries) Mid to high single digit organic growth Gross Margin % (as a percent
Slide 13: Appendix: Regulation G Disclosure
13 Appendix: Regulation G Disclosure The above table presents the Non-GAAP financial measure of Adjusted EBITDA for the three months and twelve months ended July 27, 2013 and July 28, 2012, and a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. Adjusted EBITDA is a Non
Slide 14: Appendix: Regulation G Disclosure
14 Appendix: Regulation G Disclosure The items reconciling "GAAP" to “Non-GAAP” financial measures are specifically described below: (a) Cost of earned revenues includes a $0.5 million charge for a wage and hour class action settlement. (b) Acquisition related costs. (c) Provision for income taxes i
Slide 15: Appendix: Regulation G Disclosure
15 Appendix: Regulation G Disclosure The items reconciling "GAAP" to “Non-GAAP” financial measures are specifically described below: (a) Cost of earned revenues includes a $0.5 million charge for a wage and hour class action settlement. (b) Acquisition related costs. (c) Write-off of deferred financ
Slide 16: Appendix: Regulation G Disclosure
16 (a) Year-over-year growth (decline) percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (iii) revenues in the comparative prior year quarter period. (b) Revenues from subsidiaries acquired has been i
Slide 17: Appendix: Regulation G Disclosure
17 Appendix: Regulation G Disclosure (a) Year-over-year growth percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period; divided by (iii) revenues in the comparative prior year quarter period. Amounts may not foot due t
Slide 18: Additional Information – Amortization of Intangibles
18 Additional Information – Amortization of Intangibles Estimated Future Amortization of Intangibles ($ in millions) Estimated Quarterly Expense: Q1-14 $ 5.2 Q2-14 $ 4.8 Q3-14 $ 4.1 Q4-14 $ 4.1 Estimated Expense by Fiscal Year: FY 2014 $ 18.2 FY 2015 $ 15.0 FY 2016 $ 14.3 FY 2017 $ 12.9 FY 2018 $ 10
Slide 19: Fiscal 2013 4th Quarter Presentation
Fiscal 2013 4th Quarter Presentation August 28, 2013