Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q2 FY2016 Earnings Presentation
19 slides from Dycom Industries's earnings presentation, Feb 24, 2016
Slide 1: Fiscal 2016 – 2nd Quarter Presentation
DYCOM INDUSTRIES, INC. Fiscal 2016 – 2nd Quarter Presentation February 24, 2016 Exhibit 99.2
Slide 2: Forward Looking Statements and Non-GAAP Information
2 Forward Looking Statements and Non-GAAP Information 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 revenue, prospects,
Slide 3: Participants and Agenda
3 Participants and Agenda Introduction and Q2-16 Overview Industry Update Financial & Operational Highlights Outlook Conclusion Q&A Steven E. Nielsen President & Chief Executive Officer Timothy R. Estes Chief Operating Officer H. Andrew DeFerrari Chief Financial Officer Richard B. Vilsoet General Co
Slide 4: Q2-16 Overview: Strong demand and revenue growth
4 Strong demand and revenue growth Contract revenues of $559.5 million in Q2-16 compared to $441.1 million in Q2-15. Organic growth of 19.4% excluding contract revenues of acquired businesses not included for the entire period of Q2-16 and Q2-15. Solid operating performance Gross margin % in
Slide 5: Industry Update
5 Industry increasing network bandwidth dramatically Major industry participants deploying significant wireline networks Newly deployed networks provisioning 1 gigabit speeds; speeds beyond 1 gigabit envisioned Industry developments have produced opportunities which in aggregate are without pr
Slide 6: Revenue Highlights
6 Top 5 customers represented 68.9% of revenues in Q2-16 compared to 60.5% in Q2-15 Double digit or higher organic growth in Q2-16 from several key customers: AT&T: 28.6% Comcast: 29.8% Verizon: 137.9% Unnamed customer: 284.6% Revenue Highlights Organic growth of 19.4%, fifth straight
Slide 7: Backlog and Awards
7 Customers Description Area Approximate Term (in years) AT&T Construction Services Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Florida 4 Comcast Construction Services & Construction and Maintenance Services Illinois, Maryland, Virginia, Tennessee, Georgia 3-4 Windstream Constructi
Slide 8: Financial Highlights
8 As a % of Revenues 10.8% 11.9% Revenues of $559.5 million, organic growth of 19.4% year-over-year. Recently acquired businesses contributed $32.9 million in Q2-16 Non-GAAP Adjusted EBITDA increased to 11.9% of revenue in Q2-16 compared to 10.8% in Q2-15 Gross margin % in-line year-over-year
Slide 9: Strong balance sheet and robust liquidity
9 Strong balance sheet and robust liquidity Liquidity Overview (a) Availability on Revolver presented net of $58.0 million and $57.7 million for outstanding L/C’s under the Senior Credit Agreement at Q1-16 and Q2-16, respectively. Financial tables - $ in millions Operating cash flows of $75.4 millio
Slide 10: Q3-2016 Outlook and Commentary
10 Q3-2015 Included for comparison Q3-2016 Outlook and Commentary Contract Revenues $ 492.4 $585 - $605 Broad range of demand from several large customers Robust 1 gigabit deployments, CAF II underway, core market share growth, cable capacity projects expanding Total revenue expected to includ
Slide 11: Looking Ahead to Q4-2016
11 Looking Ahead to Q4-2016 Q4-2015 Included for comparison Q4-2016 Outlook and Commentary – Contract Revenues $ 578.5 Total revenue growth % in mid to high twenties as a % of revenue (Including the additional week in Q4-16) Broad range of demand from several large customers Robust 1 gigabit dep
Slide 12: Conclusion
12 Conclusion Firm and strengthening end market opportunities Telephone companies deploying FTTX to enable video offerings and 1 gigabit connections Cable operators continuing to deploy fiber to small and medium businesses with overall cable capital expenditures, new build opportunities, and cap
Slide 13: Appendix: Regulation G Disclosure – Organic Contract Revenue
13 Appendix: Regulation G Disclosure Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, we may u
Slide 14: Regulation G Disclosure – Adjusted EBITDA
14 Notes: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted EBITDA Unaudited ($ in 000's) Appendix: Regulation G Disclosure Use of Non-GAAP Financial Measures The Company reports its financial results in a
Slide 15: Regulation G Disclosure – Organic Revenue, Certain Customers
15 Note: Amounts above may not add due to rounding. Appendix: Regulation G Disclosure Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Organic Contract Revenue – certain customers Unaudited ($ in millions) Use of Non-GAAP Financial Measures The Company rep
Slide 16: Regulation G Disclosure – Adjusted Net Income and EPS
16 Appendix: Regulation G Disclosure Note: Amounts above may not add due to rounding. Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Earnings Per Share Unaudited ($ in 000's, except per share amounts) Use of Non-
Slide 17: Regulation G Disclosure – Guidance Diluted EPS
17 Appendix: Regulation G Disclosure Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Guidance – Diluted Earnings per Common Share Unaudited Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted acco
Slide 18: Explanation of Non-GAAP Measures
18 Appendix: Regulation G Disclosure Explanation of Non-GAAP Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts,
Slide 19: Dycom Industries, Inc. Fiscal 2016 – 2nd Quarter Presentation
DYCOM INDUSTRIES, INC. Fiscal 2016 – 2nd Quarter Presentation February 24, 2016