Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Credit Suisse 2011 Engineering and Construction Conference
27 slides from Dycom Industries's conference presentation, Jun 2, 2011
Slide 1: Credit Suisse 2011 Engineering and Construction Conference
Credit Suisse 2011 Engineering and Construction Conference June 2, 2011
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information Forward-Looking Statements and Non-GAAP Information This presentation contains “forward-looking statements” which are statements relating to future events, future financial performance, strategies, expectations, and competitive environment. All sta
Slide 3: Dycom Industries Introduction
Dycom Industries Introduction n Leading provider of specialty contracting services principally to telephone and cable companies n Telecommunications industry dynamics driving growth potential n Major participant in a large, but fragmented industry, which offers acquisition opportunities n Significan
Slide 4: Customer Revenue Mix
Customer Revenue Mix Contract Revenue $252.4 million* Quarter Ended April 30, 2011 * Includes revenues from businesses acquired in Q2-11 since acquisition dates.
Slide 5: Providing End-To-End Services
Providing End-To-End Services Engineering Underground Facility Locating Outside Plant & Equipment Installation Wireless Services
Slide 6: Dycom Industries At a Glance
Dycom Industries At a Glance Dycom is a leading telecommunications infrastructure provider in the United States n Headquartered in Palm Beach Gardens, Florida n Q3-2011 revenues of $252.4 million grew organically 2.7% after adjusting for revenues from acquired companies n Strong financial profile }
Slide 7: Strong subsidiaries, broad national footprint
Strong subsidiaries, broad national footprint Subsidiaries Dycom’s Nationwide Presence Dycom Operating Overview
Slide 8: Industry Developments…
Industry Developments… n Telephone / cable industry convergence - a reality } Competition for customers drives growth n Network bandwidth expansion - an imperative } Telephone companies expanding network capacity } Cable responding to match capabilities and facilitate new products such as VOIP, HDTV
Slide 9: …And Industry Opportunities
…And Industry Opportunities n Continued capital spending } Telephone company deployments of Fiber (FTTx) } Cable company bandwidth expansion } Customer premise equipment deployments } 4G upgrades and fiber to the cell site wireless backhaul } Rural broadband deployment n Renewed focus on network rel
Slide 10: Telecom Capital Spending
Telecom Capital Spending Lowell McAdam - Verizon Communications, Inc. President, COO May 2011 n Continued capital spending in wireline reflects burgeoning demand for voice, data and video transmission n Wireless capital spending accelerating as 4G networks proliferate and new competitors emerge n Si
Slide 11: Cable Capital Spending
Cable Capital Spending “… And finally, carrier wholesale which includes cell backhaul services. Given our largely to tier 2 footprint, we believe we are in a unique position to enable high-capacity last mile services for wholesale providers. For the latter two segments, there is an especially long l
Slide 12: Underground Facility Locating Services
Underground Facility Locating Services n “Dig Safe” laws in all 50 states require owners of underground utilities to identify and mark their facilities prior to excavation } Regulates telephone, cable, power, gas and water & sewer utilities } Seeks to minimize network outages, protect job-site worke
Slide 13: Dycom's Competitive Advantages
Dycom’s Competitive Advantages n Established customer relationships and reputation n Broad geographic coverage n Scale to satisfy customer time and service requirements n Responsive, local decentralized business units n Access to capital n Senior management operating expertise
Slide 14: Growth Strategy As Opportunities
Growth Strategy As Opportunities Expand n Build and maintain long-term customer relationships at the local level } Position business to capture both recurring maintenance and new capital spending n Empower subsidiary management } Build relationships with customer contracting decision makers } Utiliz
Slide 15: Blue-chip, predominantly investment grade clients comprise the vast majority of revenue
Blue-chip, predominantly investment grade clients comprise the vast majority of revenue Well Established Customers Fiscal Quarter Ended April 30, 2011 Customer Revenue Breakdown Comcast AT&T CenturyLink Verizon Windstream Cablevision Charter Duke Energy Time Warner Cable Other Edison International
Slide 16: Customer Rotation
Customer Rotation Key long-term relationships help Dycom manage the cyclical nature of telecom and cable capex spending For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods.
Slide 17: Dycom's revenue stream is primarily generated by long-term contractual agreements
Dycom’s revenue stream is primarily generated by long-term contractual agreements n Master Service Agreements (MSA’s) n Significant majority of contracts are based on units of delivery Revenue By Contract Type Quarter Ended April 30, 2011 Revenue - Q3 Fiscal 2011
Slide 18: Senior Management
Senior Management Seasoned management team with several decades of combined industry experience
Slide 19: Dycom Industries Inc
YDYCOM INDUSTRIES INC Baie "at gal ye
Slide 20: Financial Overview
n Centralize activities which yield synergistic benefits } Treasury } Tax } Risk management } Capital asset procurement } Information technology resources n Decentralize financial operations to provide solid support and flexibility at operating unit level n Maintain financial resources to support in
Slide 21: Fiscal Year Results - Revenue and Earnings
Fiscal Year Results - Revenue and Earnings (a) Q4-10 Fiscal 2010 includes an incremental week as the result of our 52/53 week fiscal year. (b) Trailing Twelve Months Q3-11 includes contract revenues of $732.1 million for the nine months ended April 30, 2011 and $281.5 million for the three months en
Slide 22: Fiscal Year Results - Cash Flow and Liquidity
Fiscal Year Results - Cash Flow and n Strong cash flow from operations. Fiscal 2010 cash flows impacted by lower levels of operations n Ample cash flows to support capital expenditures and fund operations n Long term financing in place } $187.5 million 7.125% Senior Subordinated Notes; due 2021 } $2
Slide 23: Quarterly Results - Revenue and Earnings
Quarterly Results - Revenue and Earnings n Year-over-year revenue trends improving as a result of organic growth and revenues from acquired businesses (a) Q4-10 includes an incremental week as the result of our 52/53 week fiscal year. (b) The amounts for EBITDA - Adjusted and Income (Loss) from cont
Slide 24: Quarterly Results - Cash Flow and Liquidity
Quarterly Results - Cash Flow and Liquidity (a) Fiscal 2010 includes an incremental week as the result of our 52/53 week fiscal year. (b) Capital expenditures net of proceeds from the sale of assets (c) The amounts for EBITDA - Adjusted and Net Debt used in the calculations herein are Non-GAAP finan
Slide 25: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures Fiscat | Fiscal || Fiscal {Sin ins) (ameants may nt ad de ound) 2006 | 2007_||_ 2008 Fiscal 2000 Fiscal 2010 Fiscal 2011 a a Oa rae a ar ae ae oe ee ee ee ee ee ee ee ee re 2 oe Z i ay am 2 Boyt E pa 1° ar ae wet ee Dat : foe & i oe & Charges fr nape an hu
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Calculation of Organic Growth (Sin millions) Revenues Non- GAAP - from GAAP - GAAP Non-GAAP Contract Acquired Contract Revenue Organic Revenue Revenue Businesses _ Revenue Growth % Growth % 341 S—(2524 44 “$ 238.0 8.9% 21% A340 $ 231.6 - § 2316 opYcom
Slide 27: Credit Suisse 2011 Engineering and Construction Conference
Credit Suisse 2011 Engineering and Construction Conference June 2, 2011
Dycom Industries — Credit Suisse 2011 Engineering and Construction Conference on 6ix