Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q4 FY2023 Earnings Presentation
14 slides from Dycom Industries's earnings presentation, Mar 1, 2023
Slide 1: Q4 Fiscal 2023 Results
Q4 Fiscal 2023 Results March 1, 2023
Slide 2: Participants and Agenda
• Q4 2023 Overview • Industry Update • Financial & Operational Highlights • Outlook • Closing Remarks • Q&A 2 Participants and Agenda Steven E. Nielsen President and Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Ryan F. Urness General Counsel
Slide 3: 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 April 29, 20
Slide 4: Q4 2023 Overview
Q4 2023 Overview Contract Revenues • Contract revenues of $917.5 million increased 20.5% Operating Performance • Non-GAAP Adjusted EBITDA of $83.1 million, or 9.1% of contract revenues, compared to $43.3 million, or 5.7% of contract revenues, in the year ago period • Diluted earnings per common shar
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 6 Q4 2023 Organic Growth: 20.5% 24.4% 13.6% Total Customers Top 5 Customers All Other Customers2 1.9% 64.6% 152.8% 17.6% AT&T Lumen3 Frontier Verizon Top 5 customers represented 65.8% and 66.6% of contract revenues in Q4 2023 and Q4 2022, respectively Fiber construction revenue fro
Slide 7: Backlog, Awards and Employees
Backlog, Awards and Employees 7 Customer Description of Services Area Term Lumen Fiber Construction NV, UT, NE, IA, FL 3 years Brightspeed Construction & Maintenance KS, OH, PA, NJ, VA, TN, NC 1 year Charter Rural Fiber Construction MO, TN 3 years Various Utility Line Locating OH, NJ, MD, GA 3 years
Slide 8: Financial Highlights
Financial Highlights 8 Contract Revenues Non-GAAP Adjusted EBITDA Diluted EPS • Contract revenues of $917.5 million increased 20.5% • Non-GAAP Adjusted EBITDA of $83.1 million, or 9.1% of contract revenues • Diluted earnings per common share of $0.83 As % of Contract Revenues
Slide 9: Debt and Liquidity Overview
Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility 9 • Strong liquidity of $757.8 million at Q4 2023 • Capital allocation prioritizes organic growth, followed by opportunistic share repurchases and M&A, within the context of the Company’s historical range o
Slide 10: Cash Flow Overview
Cash Flow Overview 10 Operating Cash Flow • Strong operating cash flows of $246.2 million during Q4 2023 and $164.8 million for FY 2023 • Capital expenditures, net of $183.6 million for fiscal 2023; Capital expenditures, net for fiscal 2024 anticipated at $220 - $230 million • Repurchased 210,000 co
Slide 11: Outlook for Quarter Ending April 29, 2023 (Q1 2024)
INTEREST EXPENSE, NET $10.6 million EFFECTIVE INCOME TAX RATE Approximately 26.0% DILUTED SHARES 29.8 million Outlook for Quarter Ending April 29, 2023 (Q1 2024) CONTRACT REVENUES Increase by mid- to high-single digit as a percentage of contract revenues compared to Q1 2023 NON-GAAP ADJUSTED EBITDA
Slide 12: Closing Remarks
Closing Remarks We maintain significant customer presence throughout our markets and are encouraged by the 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 gigabit high sp
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. Q4 2023 percentage of contract revenues for customers #6 th
Slide 14: The people connecting America
The people connecting America® 14