Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q4 FY2023 Earnings Presentation
14 slides from Dycom Industries's earnings presentation, Mar 1, 2023
Slide 1: Q4 Fiscal 2023 Results
Q4 Fiscal 2023 Results March 1, 2023
Slide 2: Participants and Agenda
Participants and Agenda Steven E. Nielsen President and Chief Executive Officer H. Andrew DeFerrari Chief Financial Officer Ryan F. Urness General Counsel • Q4 2023 Overview • Industry Update • Financial & Operational Highlights • Outlook • Closing Remarks • Q&A 2
Slide 3: Important Information
Important Information Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarter ending April 29, 20
Slide 4: Q4 2023 Overview
Q4 2023 Overview Contract Revenues • Contract revenues of $917.5 million increased 20.5% Operating Performance Contract • Non-GAAP Adjusted EBITDA of $83.1 million, or 9.1% of contract Revenues revenues, compared to $43.3 million, or 5.7% of contract revenues, in the year ago period • Diluted earnin
Slide 5: Industry Update
Industry Update The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry • Major industry participants are constructing or upgrading significant wireline networks across broad sections of the country • High-capacity fiber networks
Slide 6: Contract Revenues
Contract Revenues Non-GAAP Organic Growth (Decline) %1 Top 5 Customers - % of Total Contract Revenues Q4 2022 Q4 2023 Q4 2023 Organic Growth: Top 5 customers represented 65.8% and 66.6% of contract revenues in Q4 2023 and Q4 2022, respectively 20.5% 24.4% 13.6% Total Customers Top 5 Customers All Ot
Slide 7: Backlog, Awards and Employees
Backlog, Awards and Employees Backlog4 Employee Headcount Selected Q4 2023 Customer Description of Services Area Term Awards and Extensions: Lumen Fiber Construction NV, UT, NE, IA, FL 3 years Brightspeed Construction & Maintenance KS, OH, PA, NJ, VA, TN, NC 1 year Charter Rural Fiber Construction M
Slide 8: Financial Highlights
Financial Highlights Contract Revenues Non-GAAP Adjusted EBITDA Diluted EPS As % of Contract Revenues • Contract revenues of $917.5 million increased 20.5% • Non-GAAP Adjusted EBITDA of $83.1 million, or 9.1% of contract revenues • Diluted earnings per common share of $0.83 8
Slide 9: Debt and Liquidity Overview
Debt and Liquidity Overview $ Millions Q3 2023 Q4 2023 Debt Summary 4.50% Senior Notes, mature April 2029 $ 500.0 $ 500.0 5 Senior Credit Facility, matures April 2026: Debt maturity profile and Term Loan Facility 336.9 332.5 liquidity provide financial Revolving Facility - - Total Notional Amount of
Slide 10: Cash Flow Overview
Cash Flow Overview Operating Cash Flow • Strong operating cash flows of $246.2 million during Q4 2023 and $164.8 million for FY 2023 • Capital expenditures, net of $183.6 million for fiscal 2023; Capital expenditures, net for fiscal 2024 anticipated at $220 - $230 million • Repurchased 210,000 commo
Slide 11: Outlook for Quarter Ending April 29, 2023 (Q1 2024)
Outlook for Quarter Ending April 29, 2023 (Q1 2024) Q1 2024 Outlook: CONTRACT REVENUES INTEREST EXPENSE, NET Increase by mid- to high-single digit as a $10.6 million percentage of contract revenues compared to Q1 2023 EFFECTIVE INCOME TAX RATE Approximately 26.0% NON-GAAP ADJUSTED EBITDA % OF CONTRA
Slide 12: Closing Remarks
Closing Remarks We maintain significant customer presence throughout our markets and are encouraged by the 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 gigabit high sp
Slide 13: Notes
Notes 1. Organic growth (decline) % adjusted for contract 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. Q4 2023 percentage of contract revenues for customers #6 th
Slide 14: The people connecting America
The people connecting America ® 14