Quarter 4 | Fiscal 2022 Results

March 2, 2022

Participants and Agenda

Steven E. Nielsen

President and Chief Executive Officer

H. Andrew DeFerrari

Chief Financial Officer

Ryan F. Urness

General Counsel

  • Q4 2022 Overview
  • Industry Update
  • Financial & Operational Highlights
  • Outlook
  • Closing Remarks
  • Q&A

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Important Information

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 April 30, 2022 found within this presentation. These statements are subject to change. Forward- looking statements are based on management's current expectations, estimates and projections. These statements are subject to risks and uncertainties that may cause actual results for completed periods and periods in the future to differ materially from the results projected or implied in any forward- looking statements contained in this presentation. The most significant of these 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 the duration and severity of a pandemic caused by COVID-19, our ability to comply with various COVID-19 legal and contractual requirements and the impacts that those requirements may have on our workforce and our ability to perform our work, vaccination rates in the areas where we operate, any worsening of the pandemic caused by increasing infection rates triggered by new variants, future economic conditions and trends including the potential impacts of an inflationary economic environment, 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 related impact to the Company's backlog from project cancellations, weather conditions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, the Company's ability to generate sufficient cash to service its indebtedness, restrictions imposed by the Company's credit agreement, and the 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 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 March 2, 2022 and on the Company's Investor Center website at https://ir.dycomind.com. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results.

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Q4 2022 Overview

Contract Revenues

  • Contract revenues of $761.5 million increased 10.1% organically after excluding $5.7 million of contract revenues from storm restoration services in the year ago period and adjusting for the additional week of operations in the year ago period as a result of our 52/53 week fiscal year

Operating Performance

  • Non-GAAPAdjusted EBITDA of $43.3 million, or 5.7% of contract revenues, compared to $45.7 million, or 6.1% of contract revenues, in the year ago period
  • Non-GAAPAdjusted Diluted Earnings per Common Share of $0.02, compared to Non-GAAP Adjusted Loss per Common Share of $(0.07) in the year ago period
  • Q4 2022 Non-GAAP Adjusted Diluted Earnings per Common Share includes incremental tax benefits of $0.13 per share

Liquidity

  • Solid liquidity of $351.5 million
  • Robust operating cash flow of $145.5 million reflecting a sequential DSO decline of 5 days

Share Repurchases

  • Repurchased 600,000 common shares for $56.1 million at an average price of $93.55 per share
  • Authorized $150 million for share repurchases through August 2023

Contract

Revenues

Non-GAAP

Adjusted

Diluted EPS

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Industry Update

The industry 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 effects and supply constraints may influence the near-term execution of some customer plans

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

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Dycom Industries Inc. published this content on 02 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2022 11:06:06 UTC.