Slide 1: Q2 2022 Results
Q2 2022 Results September 1, 2021
Slide 2: Participants and Agenda
2 Participants Steven E. Nielsen President & Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Ryan F. Urness General Counsel Agenda • Q2 2022 Overview • Industry Update • Financial & Operational Highlights • Outlook • Closing Remarks • Q&A
Slide 3: Important Information
Important Information 3 Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarter ending October 30, 2021 found within
Slide 4: Q2 2022 Overview
Contract Revenues Q2 2022 Overview 4 Contract Revenues Q2 2022 contract revenues of $787.6 million decreased 4.4% Operating Performance Non-GAAP Adjusted EBITDA for Q2 2022 of $73.8 million, or 9.4% of contract revenues, compared to $102.7 million, or 12.5% of contract revenues, for Q2 2021 Non-GAAP
Slide 5: Industry Update
Industry Update 5 Industry effort to deploy high capacity fiber networks continues to meaningfully broaden our industry’s set of opportunities Major industry participants constructing or upgrading significant wireline networks across broad sections of the country generally designed to provision 1 gi
Slide 6: Contract Revenues
Contract Revenues 6 Q2 2022 Organic Growth (Decline): Top 5 customers represented 65.7% and 76.6% of contract revenues in Q2 2022 and Q2 2021, respectively2 (4.4)% (18.0)% 39.9% Q2 2022 % of contract revenues from customers #6 through #10: Total Customers Top 5 Customers2 All Other Customers 3.4% 3.
Slide 7: Backlog, Awards and Employees
Backlog, Awards and Employees 7 Selected Q2 2022 Awards and Extensions: Customer Description of Services Area Term Windstream Construction & Maintenance KY 3 years AT&T Construction & Maintenance WI, OH 1 year Comcast Fulfillment WA, IL, MI, MA, NJ, PA 1 year Lumen Engineering WA, OR, ID, MT, WY, UT
Slide 8: Financial Highlights
Financial Highlights 8 As % of Contract Revenues Contact revenues of $787.6 million in Q2 2022 decreased 4.4% compared to Q2 2021 Non-GAAP Adjusted EBITDA of $73.8 million, or 9.4% of contract revenues, for Q2 2022 Non-GAAP Adjusted Diluted Earnings per Common Share of $0.60 for Q2 2022
Slide 9: Debt and Liquidity Overview
9 Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility Solid liquidity of $299.1 million at Q2 2022 Capital allocation prioritizes organic growth, followed by opportunistic share repurchases and M&A, within the context of the Company’s historical range of net
Slide 10: Cash Flow Overview
Cash Flow Overview 10 Operating Cash Flow 4 Qtrs Ended 4 Qtrs Ended Jan 20187 Q2 2022 Solid operating cash flows Capital expenditures, net of disposals, for fiscal 2022 expected to range from $105 million to $125 million Repurchased 631,638 common shares for $50.0 million, at an average price of $79
Slide 11: Outlook for Quarter Ending October 30, 2021 (Q3 2022)
11 Outlook for Quarter Ending October 30, 2021 (Q3 2022) Q3 2022 Outlook: Contract revenues In-line as compared to Q3 2021 Non-GAAP Adjusted EBITDA % of contract Decreases as compared to Q3 2021 revenues Year-over-year gross margin decline of approximately 125 bps and G&A increase of approximately 5
Slide 12: Closing Remarks
Closing Remarks 12 We maintain significant customer presence throughout our markets and are encouraged with the emerging 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 1 g
Slide 13: Notes
Notes 13 1) Organic growth (decline) % adjusted for 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) Top 5 customers included AT&T, Comcast, Lumen, Verizon, and Front