Q2 Fiscal 2024 Results

August 23, 2023

Participants and Agenda

Steven E. Nielsen

President and Chief Executive Officer

H. Andrew DeFerrari

Chief Financial Officer

Ryan F. Urness

General Counsel

  • Q2 2024 Overview
  • Industry Update
  • Financial & Operational Highlights
  • Outlook
  • Closing Remarks
  • Q&A

2

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 October 28, 2023, including, but not limited to, those statements found under the "Outlook" section of this presentation. Forward-looking statements are based on management's expectations, estimates and projections, are made solely as of the date these statements are made, and are subject to both known and unknown risks and uncertainties that may cause the actual results and occurrences discussed in these forward-looking statements to differ materially from those referenced or implied in the forward-looking statements contained in this presentation. The most significant of these known risks and uncertainties are described in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) and include future economic conditions and trends including the potential impacts of an inflationary economic environment, changes to customer capital budgets and spending priorities, the availability and cost of materials, equipment and labor necessary to perform our work, the adequacy of the Company's insurance and other reserves and allowances for doubtful accounts, whether the carrying value of the Company's assets may be impaired, the future impact of any acquisitions or dispositions, adjustments and cancellations of the Company's projects, the impact to the Company's backlog from project cancellations or postponements, the impacts of pandemics and public health emergencies, the impact of varying climate and weather conditions, the anticipated outcome of other contingent events, including litigation or regulatory actions involving the Company, the adequacy of our liquidity, the availability of financing to address our financial needs, the Company's ability to generate sufficient cash to service its indebtedness, the impact of restrictions imposed by the Company's credit agreement, and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update its forward-looking statements.

Non-GAAP Financial Measures

This presentation includes certain "Non-GAAP" financial measures as defined by Regulation G of the SEC. As required by the SEC, an explanation of the Non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP financial measures are provided in the Company's Form 8-K filed with the SEC on August 23, 2023 and on the Company's Investor Center website at https://dycomind.com/investors. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results.

3

Q2 2024 Overview

Contract Revenues

  • Contract revenues of $1.042 billion increased 7.1% year over year

Operating Performance

  • Non-GAAPAdjusted EBITDA of $130.8 million, or 12.6% of contract revenues, compared to $104.7 million, or 10.8% of contract revenues, in the year ago quarter
  • Diluted earnings per common share of $2.03, compared to $1.46 in the year ago quarter

Liquidity

  • Strong liquidity of $685.9 million

Capital Allocation

  • Acquired Bigham Cable Construction, Inc. on August 18, 2023 for a purchase price of $127.0 million
  • Authorized $150 million for share repurchases through February 2025

Contract

Revenues

Non-GAAP

Adjusted

12.6%

EBITDA and %

10.8%

of Contract

Revenues

Diluted EPS

4

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-capacityfiber networks are increasingly viewed as the most cost-effective technology, enabling multiple revenue streams from a single investment
  • Fiber network deployment opportunities are increasing in rural America; federal and state support programs for the construction of communications networks in unserved and underserved areas across the country are unprecedented

Macroeconomic conditions, including those impacting the cost of capital, may influence the execution of some industry plans

We expect demand to continue to fluctuate amongst customers. For several customers, deployments are increasing into next year. For others, capital expenditures have been more heavily weighted toward the first half of this year and accordingly they appear to be managing budgets closely through the end of this year.

We are encouraged by recent longer-term industry financings that have expanded the pool of capital available to fund future industry growth

Our scale and financial strength position us well to take advantage of these opportunities to deliver valuable services to our customers, including integrated planning, engineering and design, procurement and construction and maintenance services

5

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Dycom Industries Inc. published this content on 23 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2023 10:52:02 UTC.