Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (August 2023)
24 slides from Dycom Industries's investor presentation, Aug 24, 2023
Slide 1: Investor Presentation August 2023
Investor Presentation August 2023
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 October 28,
Slide 3: Dycom Overview
Dycom Overview • Leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States • Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to ec
Slide 4: Financial Overview
Financial Overview Operating Performance Trailing Twelve Months as of July 29, 2023 (Q2 2024) • Contract Revenues of $4.047 billion • Non-GAAP Adjusted EBITDA of $442.0 million, or 10.9% of contract revenues • Diluted Earning Per Share of $6.39 Backlog and Headcount as of July 29, 2023 (Q2 2024) • T
Slide 5: Strong Secular Trend
Strong Secular Trend 5 Data usage and download/upload speeds continue to increase as consumer behavior moves to streaming, video conferencing, and connected devices Demand for higher speeds is increasing, as is average network consumption, and our customers are hanging more devices off our network i
Slide 6: Industry Update
Industry Update 6 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 network
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 rural ele
Slide 8: Massive fiber investment continues
0 50 100 150 200 250 Passings as of 2022 Plans through 2030 Future U .S . H o m e s w it h F ib e r P a ss in g s (a ) (i n M il li o n s) Fiber to the Home • Increasing consumer demand for bandwidth continues to drive fiber deployments • Eventual fiber passings estimated to cover 75% to 80% of addr
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 15,147 employees as of July 29, 2023 10 Operating Subsidiaries
Slide 11: Durable Customer Relationships
Durable Customer Relationships 11 Increasing customer breadth and opportunity
Slide 12: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 12 FY 2023 Revenue by Contract Type • 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 multi-year
Slide 13: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation 13 Prudent approach to capital allocation: • $617 million invested in share repurchases • $582 million invested in business acquisitions • $1,287 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 Update
FINANCIAL UPDATE
Slide 17: Annual Trends
Annual Trends ODYCOM Contract Revenues Non-GAAP Adjusted EBITDA FY 2019 FY 2020 Fy 2021 Fy 2022 FY 2023 $3,208 0 2g s3aze S04 $3,199 $3,131 2 A A | I I | FY2019 #¥2020 FY2001 FY 2002 FY 2003 F¥2019 F¥2020 Fv2001 Fv 2002 F¥2003 fm Non-GAAP Adjusted EBITDA =teeNon-GAAP Adjusted EBITDA Non-GAAP Organic
Slide 18: Quarterly Trends
Quarterly Trends ODYCOM Contract Revenues $1,082 $972 asa $876 | | ] 032022 042022 Q1 2023 Q22023 032023 $ Millions $1,045 $1,042 L ! 42023 012024 22024 Non-GAAP Adjusted EBITDA $131 932022 42022 Q12023 22023 Q32023 _Q42023 Q12024 a2 2024 mE Non-GAAP Adjusted EBITDA =meNon-GAAP Adjusted EBITDA 9% No
Slide 19: Debt and Liquidity Overview
Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility 19 • Strong liquidity of $685.9 million at Q2 2024 • Sound credit metrics and no near-term debt maturities • Capital allocation prioritizes organic growth, followed by M&A and opportunistic share repurchase
Slide 20: Cash Flow Overview
Cash Flow Overview 20 • Solid operating cash flows • Gross capital expenditures were $51.0 million and disposal proceeds were $11.0 million for Q2 2024 Operating Cash Flow
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS
Slide 22: Outlook slide used on August 23, 2023 conference call
22 This slide was used on August 23, 2023 in connection with the Company’s conference call for its fiscal 2024 second 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 or
Slide 23: Notes
Notes 1. The Company’s backlog represents an estimate of services to be performed pursuant to master service agreements and other contractual agreements over the terms of those contracts. These estimates are based on contract terms and evaluations regarding the timing of the services to be provided.
Slide 24: Dycom: The people connecting America
VYDYCOM The people connecting America®
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