Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Q3 2023 Earnings Presentation
14 slides from Dycom Industries's earnings presentation, Nov 22, 2022
Slide 1: Q3 Fiscal 2023 Results
Q3 Fiscal 2023 Results November 22, 2022
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 • Q3 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 January 28,
Slide 4: Q3 2023 Overview
Q3 2023 Overview Contract Revenues • Contract revenues of $1.042 billion increased 22.1% Operating Performance Contract Revenues • Non-GAAP Adjusted EBITDA of $114.6 million, or 11.0% of contract revenues, compared to $83.1 million, or 9.7% of contract revenues, in the year ago period • Diluted earn
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 Q3 2022 Q3 2023 Q3 2023 Organic Growth: Top 5 customers represented 66.5% and 65.4% of contract revenues in Q3 2023 and Q3 2022, respectively 22.1% 27.4% 13.3% Total Customers Top 5 Customers All Ot
Slide 7: Backlog, Awards and Employees
Backlog, Awards and Employees Backlog4 Employee Headcount Selected Q3 2023 Customer Description of Services Area Term Awards and Extensions: Lumen Construction & Maintenance WA, OR, NV, UT, WY, CO, SD, NE, MN, IA, FL 3 years AT&T Utility Line Locating FL 3 years Charter Construction & Maintenance TX
Slide 8: Financial Highlights
Financial Highlights Contract Revenues Non-GAAP Adjusted EBITDA Diluted EPS As % of Contract Revenues • Contract revenues of $1.042 billion increased 22.1% • Non-GAAP Adjusted EBITDA of $114.6 million, or 11.0% of contract revenues • Diluted earnings per common share of $1.80 • Diluted earnings per
Slide 9: Debt and Liquidity Overview
Debt and Liquidity Overview $ Millions Q2 2023 Q3 2023 Debt Summary Debt maturity profile and 4.50% Senior Notes, mature April 2029 $ 500.0 $ 500.0 5 Senior Credit Facility, matures April 2026: liquidity provide financial Term Loan Facility 341.3 336.9 Revolving Facility - - flexibility Total Notion
Slide 10: Cash Flow Overview
Cash Flow Overview Operating Cash Flow $ Millions Q3 2022 Q3 2023 Cash Flow Summary Operating cash flow $ 104.3 $ (4.5) Capital expenditures, net of disposals $ (44.1) $ (49.2) Repayments on Senior Credit Facility $ - $ (4.4) Extinguishment of 2021 Convertible Notes $ (58.3) $ - Other financing & in
Slide 11: Outlook for Quarter Ending January 28, 2023 (Q4 2023)
Outlook for Quarter Ending January 28, 2023 (Q4 2023) Q4 2023 Outlook: CONTRACT REVENUES INTEREST EXPENSE, NET Increase by mid- to high-single digit as a $11.8 million percentage of contract revenues compared to Q4 2022 EFFECTIVE INCOME TAX RATE Approximately 27.0% NON-GAAP ADJUSTED EBITDA % OF CONT
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. Q3 2023 % of contract revenues for customers #6 through #10
Slide 14: The people connecting America
The people connecting America ® 14