Dycom Industries, Inc. · NYSE:DY
Dycom Industries — D.A. Davidson E&C Conference 2010
27 slides from Dycom Industries's conference presentation, Sep 28, 2010
Slide 1: D.A. Davidson E&C Conference
D.A. Davidson E&C Conference September 28, 2010
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “estimate,” “intend,” “forecast,” “may,” “should,” “could,” “project,” “o
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 Quarter Ended July 31, 2010 - $281.5 million* *Q4-10 includes an incremental week as the result of our 52/53 week fiscal year. 4
Slide 5: Providing End-To-End Services
Providing End-To-End Services Outside Plant & Equipment Installation Underground Facility Locating Engineering 5
Slide 6: Dycom Industries At a Glance
Dycom Industries At a Glance n Headquartered in Palm Beach Gardens, Florida n Fourth quarter fiscal 2010 revenues of $281.5 million, including an additional week required by our fiscal calendar n Strong financial profile } Cash and equivalents $103.3 million at July 31, 2010 } Shareholders’ equity $
Slide 7: Dycom Operating Overview
Dycom Operating Overview Dycom’s Nationwide Presence Subsidiaries Strong subsidiaries, broad national footprint 7
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 } Fiber to the cell site } Rural broadband deployment n Renewed focus on network reliability and availability as subsc
Slide 10: Telecom Capital Spending
Telecom Capital Spending “… […] we will continue to invest in developing new products and services and related businesses. We have IPTV in three markets basically using the same model that AT&T uses with the Microsoft middleware. We have an Impact 4 Head End in Missouri and basically, we use the fib
Slide 11: Cable Capital Spending
Cable Capital Spending “We think, with all the devices that are coming out and WiFi being more ubiquitous, that clearly people are going to see broadband as a more important part of their household set, whether it's economy broadband at a lower price or whether it's 50 or 100 megabits, depending on
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 } Regulate telephone, cable, power, gas, water & sewer utilities } Seek to minimize network outages, protect job-site workers, a
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 13
Slide 14: Growth Strategy As Opportunities Expand
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: Well Established Customers
Well Established Customers Fiscal Quarter Ended July 31, 2010 Customer Revenue Breakdown Other AT&T Cablevision Electric Power Board Questar Comcast Gas Windstream Charter CenturyLink Time Warner Cable Verizon Blue-chip, predominantly investment grade clients comprise the vast majority of revenue 15
Slide 16: Customer Rotation
Customer Rotation 64% 63% 64% 64% 64% 62% 68% 67% 63% 67% 38% 32% 33% 36% 37% 36% 36% 36% 37% 33% For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods. Key long-term relationships help Dycom manage the cyclical na
Slide 17: Revenue - Q4 Fiscal 2010
Revenue - Q4 Fiscal 2010 Revenue By Contract Type Quarter Ended July 31, n Master Service Agreements (MSA’s) 2010 Dycom’s revenue stream is primarily generated by long-term contractual agreements 17
Slide 18: Senior Management
Senior Management Seasoned management team with several decades of combined industry experience 18
Slide 19: Financial Update
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Slide 20: Financial Overview
Financial Overview nCentralize activities which yield synergistic benefits } Treasury } Tax } Risk management } Capital asset procurement } Information technology resources nDecentralize financial operations to provide solid support and flexibility at operating unit level nMaintain financial resourc
Slide 21: Fiscal Year Results - Revenue and Earnings
Fiscal Year Results - Revenue and Earnings n Revenue of $988.6 million for fiscal 2010 compared to $1,106.9 million for fiscal 2009 n Fiscal 2010 revenue and results impacted by customer reductions in capital spending plans in response to challenging economic conditions (1) The amounts for EBITDA -
Slide 22: Fiscal Year Results - Cash Flow and Liquidity
Fiscal Year Results - Cash Flow and Liquidity 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 as of July 31, 2010 } $135.35 million Senior Subordina
Slide 23: Quarterly Results - Revenue and Earnings
n Seasonal revenue pattern driven by weather and available work days n Q4-10 reflects improving revenue trends n EBITDA - Adjusted and Income from Continuing Operations increased sequentially reflecting higher levels of operations and increased productivity * Q4-10 includes an incremental week as th
Slide 24: Quarterly Results - Cash Flow and Liquidity
Quarterly Results - Cash Flow and Liquidity n Cash flows from operations impacted as activity level increased during the quarter n Capital expenditures, net of disposals at $15.0 million, reflecting replacement cycle and growth opportunities n Strong financial profile n Ample liquidity as of July 20
Slide 25: Regulation G Disclosure
Mt Requlation G Disclosure Reconciliation of GAAP to Non-GAAP measures Fiscal Fiscal Fiscal (S in millions) (amounts may not add due to rounding) 2006 2007 2008 a Adjusting Items: Write-off of deferred financing costs s : : s - $s 06 $ Gain on debt extinguishment, net : : : - Goodwill impairment cha
Slide 26: D.A. Davidson E&C Conference
D.A. Davidson E&C Conference September 28, 2010
Slide 27: Slide 27