Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (June 2020)
26 slides from Dycom Industries's investor presentation, Jun 8, 2020
Slide 1: Investor Presentation June 2020
Exhibit 99.1 Investor Presentation June 2020
Slide 2: Important Information
Important Information Caution Concerning Forward-Looking Statements This presentation contains “forward-looking statements”. Other than statements of historical facts, all statements contained in this presentation, including statements regarding the Company’s future financial position, future revenu
Slide 3: Dycom Overview
Dycom Overview Leading supplier of specialty contracting services to telecommunication providers Operates throughout the continental United States Nationwide footprint with 44 operating subsidiaries and over 14,000 employees Strong revenue base and customer relationships Contract revenues of $814.3
Slide 4: Dycom's COVID-19 Response
Dycom’s COVID-19 Response Employees Customers Operating Plans Keeping employees safe our first priority Intense focus remained unchanged Decisive and proactive adjustments Adopted enhanced protection protocols and Continued to serve our customers as they Reduced general and administrative PPE guidel
Slide 5: Industry Impacts from the COVID-19 Pandemic
Industry Impacts from the COVID-19 Pandemic Intermediate to Longer Term Impacts Prior investments by major industry participants to construct or upgrade wireline networks have enabled astounding increases in peak demands on telecommunication networks; programs are likely to accelerate Our customers’
Slide 6: Industry Drivers
Industry Drivers Firm end market activity despite challenging economic backdrop Fiber deployments enabling new wireless technologies are underway in many regions of the country Wireless construction activity in support of expanded coverage and capacity continued to grow through the deployment of enh
Slide 7: Strong Secular Trend
Strong Secular Trend North America Internet Protocol Traffic vs. GDP Growth Data Usage Growth & Broadband Speeds 10% 70,000 Weighted Average Data Consumed Provisioned Speed Tiers of Broadband s per Month Subscribers e t 8% y 450 100% b a 60,000 g i 402.5 6% G 400 90% 80% 4% 50,000 350 c ) i e f h f
Slide 8: Key Driver: High Bandwidth Deployments
Key Driver: High Bandwidth Deployments Companies deploying fiber-to-the-home, fiber-to-the-node, and fiber-to-the-building technologies to enable 1 gigabit connections Data transmission speeds dramatically increasing Verizon CenturyLink d 80 e 180 ) t s c d e 70 n n a 175 n s o u C 60 o s h 170 t t
Slide 9: Key Driver: 5G Deployment
Key Driver: 5G Deployment Growth in Number of Small Cells Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term Number of small cells are predicted to exceed 1,000,000 by 2027; hundreds of thousands of s
Slide 10: Key Driver: Fiber to Businesses
Key Driver: Fiber to Businesses Revenue earned by Comcast and Charter from Business Services totaled over $14 Billion8 of an Addressable Market of $80 billion s $60 n o i l l i B $50 $ $50 $40 Q1-20 TTM Revenue $30 From Business Services $30 Addressable Market $20 $7.9 $10 $6.5 $- Source: Comcast an
Slide 11: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Complete Lifecycle Services Crucial to Customers’ Success INSTALLATION MAINTENANCE Wireline Wireless PROCUREMENT PROGRAM CONSTRUCTION MANAGEMENT ENGINEERING & DESIGN Q1 2021 Revenue by Customer Type: 89.2% 6.5% 4.3% Telecommunications Underground Electr
Slide 12: Local Credibility, National Capability
Local Credibility, National Capability Operating Subsidiaries
Slide 13: Well Established Customers
Well Established Customers Top 5 Customers Q1 2021 Organic growth (decline)1: (1.8)% (3.9)% 7.0% Top 5 customers represented 78.5% and 80.4% of contract Total Customers Top 5 Customers All Other Customers revenues in Q1 2021 and Q1 2020, respectively Q1 2021 % of contract revenue from customers #6 t
Slide 14: Durable Customer Relationships
Durable Customer Relationships $ Millions s e $900 u n e v e $800 R t c a $700 r t n o Verizon C $600 r e m AT&T o $500 t s u C $400 CenturyLink $300 Comcast $200 Windstream $100 Charter $- 2016 2017 2018 2019 2020 Trailing Twelve Months Ended January7 s e u $4,000 n e v $3,340 e $3,500 R $3,128 t $
Slide 15: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements Revenue by Contract Type for Fiscal 2020 Backlog6 Master Service Agreements 65.4% 23.2% 11.4% Short-term contracts Long-term contracts Dycom is party to hundreds of MSA’s and other agreements with customers that extend for periods of one or more years Generally multi
Slide 16: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation $2,117 $2,117 Strong operating cash flow of Business Other Cash Flow Acquisitions $709 $618 $1.357 billion over 10+ years Prudent approach to capital allocation: Share Repurchases $444 $444 million invested in share repurchases $618 million invested in busine
Slide 17: Financial Update
Financial Update
Slide 18: Financial Overview
Financial Overview Strong market opportunities Contract revenues of $814.3 million for Q1 2021, compared to $833.7 million for Q1 2020 Non-GAAP Adjusted EBITDA for Q1 2021 of $69.9 million, or 8.6% of contract revenues, compared to $73.6 million, or 8.8% of contract revenues, for Q1 2020 Non-GAAP Ad
Slide 19: Annual Trends
Annual Trends Growth in Contract Revenues Non-GAAP Adjusted EBITDA $3,340 $442 s $3,067 $3,128 s n $2,978 n $390 o o $384 i i l l l $2,673 l i i $330 M M $310 $ $ 14.6% 14.4% 12.9% 10.5% 9.3% FY2016 FY2017 4 Quarters Ended FY2019 FY2020 FY2016 FY2017 4 Quarters Ended FY2019 FY2020 Jan. 2018² Jan. 20
Slide 20: Quarterly Trends
Quarterly Trends Growth in Contract Revenues Non-GAAP Adjusted EBITDA $884 $884 $98 $99 $100 s s n $92 n o i o l i l l i l $848 i M M $834 $74 $ $70 $ $814 $799 $60 $45 $749 $738 12.2% 11.3% 11.6% 10.4% 8.8% 8.6% 8.0% 6.0% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2019 Q3 20
Slide 21: Liquidity Overview
Liquidity Overview $ Millions Q4 2020 Q1 2021 Net Debt Summary 0.75% Convertible Senior Notes, mature Sept 2021: $ 460.0 $ 293.0 Senior Credit Facility, matures Oct 2023:3 Term Loan Facilities 444.4 438.8 Revolving Facility - 675.0 Total Notional Amount of Debt $ 904.4 $ 1,406.7 Less: Cash and equiv
Slide 22: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Dycom is committed to maximizing long term returns through prudent capital allocation Invest in Reduce Leverage to Pursue Complementary Organic Growth Historical Levels Acquisitions Focus on organic growth opportunities Generate free cash flow to reduce net Sele
Slide 23: Questions and Answers
Questions and Answers 23
Slide 24: Selected Information from Q1 2021 Dycom Results Conference Call Materials
Selected Information from Q1 2021 Dycom Results Conference Call Materials The following slide, 24, was used on May 19, 2020 in connection with the Company’s conference call for its fiscal 2021 first quarter results and is included for your convenience. Reference is made to slide 2 titled “Important
Slide 25: Outlook
Outlook The projections on this slide were provided on May 19, 2020 in connection with the Company’s conference call regarding its fiscal 2021 first quarter results. This information is provided for your reference only and should not be interpreted as a reiteration of these projections by the Compan
Slide 26: Notes
Notes 1) Organic growth (decline) % adjusted for revenues from acquired businesses and storm restoration services, when applicable. 2) Due to the change in the Company’s fiscal year end, the Company’s fiscal 2018 six month transition period consisted of Q1 2018 and Q2 2018. Amounts provided for the