Attached files
| file | filename |
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| EX-99.1 - EXHBIIT 99.1 - DYCOM INDUSTRIES INC | ex99_1.htm |
| 8-K - DYCOM 8-K 2-24-2010 - DYCOM INDUSTRIES INC | form8k.htm |
Exhibit 99.2
®
2nd
Quarter Fiscal 2010
Results Presentation
February 24, 2010
Results Presentation
February 24, 2010
1
Participants
|
Steven E.
Nielsen
President & Chief Executive Officer H. Andrew
DeFerrari
Chief Financial Officer Richard B.
Vilsoet
General Counsel |
Forward-Looking Statements and Non-GAAP Information This presentation contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
including statements with respect to the Company’s fiscal 2010 third quarter
results. The words “believe,” “expect,” “anticipate,” “estimate,” “intend,”
“forecast,” “may,” “should”, “could”, “project,” “outlook” and similar
expressions identify forward-looking statements. These forward-looking
statements are based on management’s current expectations, estimates and
projections and speak only as of the date of this presentation. Forward-looking
statements are subject to known and unknown risks and uncertainties that may
cause actual results in the future to differ materially from the results
projected or implied in any forward-looking statements contained in this
presentation. The factors that could affect future results and could cause these
results to differ materially from those expressed in the forward-looking
statements include, but are not limited to, those described under Item 1A, “Risk
Factors” of the Company’s Annual Report on Form 10-K for the year ended July 25,
2009, and other risks outlined in the Company’s periodic filings with the
Securities and Exchange Commission (“SEC”). Except as required by law, the
Company may not update forward-looking statements even though its situation may
change in the future. This presentation includes certain “Non-GAAP” financial
measures as defined by SEC rules. As required by the SEC we have provided a
reconciliation of those measures to the most directly comparable GAAP measures
on the Regulation G slides included at slides 10 & 11 of this
presentation.
3
Q2-2010
Overview
n Q2-10 results of
$(0.10) per share
n Revenue of $216.3
million in Q2-10 declined sequentially by
16.5%; Year over year decline was 11.9%.
16.5%; Year over year decline was 11.9%.
n Solid contract
awards and extensions secured during the
quarter
quarter
n Strong operating
cash flows during the quarter
n Net cash position at
January 23, 2010
4
Revenue
by Customer
n Top 5 customers
represented 65.1% of revenue in Q2-10 and 64.3% of revenue
in Q2-09
in Q2-09
n Overall revenue
decline was 11.9%, with top 5 customers down approximately
10.8% and all other customers down approximately 13.9%. Q2-09 included $3.3
million in storm work.
10.8% and all other customers down approximately 13.9%. Q2-09 included $3.3
million in storm work.
*
For comparison purposes, CenturyLink includes combined revenues from CenturyTel,
Inc. and Embarq Corporation for each period presented.
5
Backlog
and Employees
|
Customer
|
Area
|
Description
|
Term (in
years)
|
|
nAT&T
|
Central
Florida
|
Master Service
Agreement
|
3
|
|
nComcast
|
California
|
Master Service
Agreement
|
3
|
|
nVerizon
|
Northeast
|
Other
Long-Term Agreement
|
1
|
|
nComcast
|
Nationally
|
Various
Long-Term Agreements
|
1
|
|
nCharter
|
Nationally
|
Various
Long-Term Agreements
|
1
|
|
nAT&T
|
Georgia
|
Locating
|
3
|
Summary
Results
Summary Results Year over year revenue decline of 11.9% reflects
customer reductions in capital spending. Revenue in Q2-09 included
$3.3 million of restoration services for storm work compared to none in
Q2-10.Note: See “Regulation G Disclosure” slide 10 for a
reconciliation of GAAP to Non-GAAP financial measures.
8
n Cash flow from
operations was strong at $32.3
million for Q2-10.
million for Q2-10.
n Combined days sales
outstanding on trade
receivables and net unbilled revenues were 56
days in Q2-10 and 60 days in Q1-10 (a).
receivables and net unbilled revenues were 56
days in Q2-10 and 60 days in Q1-10 (a).
n Capital
expenditures, net of disposals at $16.4
million reflecting the replacement cycle of our
assets and new opportunities.
million reflecting the replacement cycle of our
assets and new opportunities.
n Total cash less debt
was $0.2 million at the end
of Q2-10 compared to net debt of $(15.5) million
as of Q1-10.
of Q2-10 compared to net debt of $(15.5) million
as of Q1-10.
n In compliance with
debt covenants as of
January 23, 2010.
January 23, 2010.
(a)
Days sales outstanding is calculated as the summation of current accounts
receivable,
plus costs and estimated earnings in excess of billings, less billings in excess of costs and
estimated earnings, divided by average revenue per day during the respective quarter.
plus costs and estimated earnings in excess of billings, less billings in excess of costs and
estimated earnings, divided by average revenue per day during the respective quarter.
9
Summary
n Challenging economic
environment
n Solid customer
relationships
n At the forefront of
evolving industry opportunities including those resulting from
industry mergers and acquisitions
industry mergers and acquisitions
n Growing market share
as customers consolidate vendors
n Encouraged by
deployment of new technologies by cable operators
n Strong cash flows
support working capital needs and capital investment
n Looking ahead to the
third quarter of fiscal 2010 we expect:
} Revenues which
increase sequentially due to seasonality but still reflect
slow customer activity and weather impacts
slow customer activity and weather impacts
} Margins which
improve but are pressured by poor weather during the
beginning of the quarter
beginning of the quarter
} Earnings per share
that improve sequentially and are near breakeven to a
slight profit
slight profit
10
Appendix:
Regulation G Disclosure
11
Appendix:
Regulation G Disclosure
®
2nd
Quarter Fiscal 2010
Results Presentation
February 24, 2010
Results Presentation
February 24, 2010