Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - DYCOM INDUSTRIES INC | form8k.htm |
Exhibit 99.1
Credit Suisse 2012 Engineering
and Construction Conference
and Construction Conference
June 7, 2012
1
Forward-Looking Statements and Non-GAAP
Information
Information
Forward-Looking Statements and Non-GAAP
Information
Information
This presentation contains “forward-looking statements” which are statements relating to future events, future
financial performance, strategies, expectations, and competitive environment. All statements, other than
statements of historical facts, contained in this presentation, including statements regarding our future financial
position, future revenue, prospects, plans and objectives of management, are forward-looking statements.
Words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “forecast,” “may,” “should,” “could,” “project,”
“looking ahead” and similar expressions, as well as statements in future tense, identify forward-looking
statements. You should not read forward looking statements as a guarantee of future performance or results.
They will not necessarily be accurate indications of whether or at what time such performance or results will be
achieved. Forward-looking statements are based on information available at the time those statements are
made and/or management’s good faith belief at that time with respect to future events. Such statements are
subject to risks and uncertainties that could cause actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements. Important factors that could cause such
differences include, but are not limited to factors described under Item 1A, “Risk Factors” of the Company’s
Annual Report on Form 10-K for the year ended July 30, 2011, and other risks outlined in the Company’s
periodic filings with the Securities and Exchange Commission (“SEC”). The forward-looking statements in this
presentation are expressly qualified in their entirety by this cautionary statement. Except as required by law, the
Company may not update forward-looking statements even though its situation may change in the future.
financial performance, strategies, expectations, and competitive environment. All statements, other than
statements of historical facts, contained in this presentation, including statements regarding our future financial
position, future revenue, prospects, plans and objectives of management, are forward-looking statements.
Words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “forecast,” “may,” “should,” “could,” “project,”
“looking ahead” and similar expressions, as well as statements in future tense, identify forward-looking
statements. You should not read forward looking statements as a guarantee of future performance or results.
They will not necessarily be accurate indications of whether or at what time such performance or results will be
achieved. Forward-looking statements are based on information available at the time those statements are
made and/or management’s good faith belief at that time with respect to future events. Such statements are
subject to risks and uncertainties that could cause actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements. Important factors that could cause such
differences include, but are not limited to factors described under Item 1A, “Risk Factors” of the Company’s
Annual Report on Form 10-K for the year ended July 30, 2011, and other risks outlined in the Company’s
periodic filings with the Securities and Exchange Commission (“SEC”). The forward-looking statements in this
presentation are expressly qualified in their entirety by this cautionary statement. 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. We believe that the
presentation of certain Non-GAAP financial measures provides information that is useful to investors because it
allows for a more direct comparison of our performance for the period with our performance in the comparable
prior-year periods. 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 the end of this presentation. We
caution that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, our
reported GAAP results.
presentation of certain Non-GAAP financial measures provides information that is useful to investors because it
allows for a more direct comparison of our performance for the period with our performance in the comparable
prior-year periods. 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 the end of this presentation. We
caution that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, our
reported GAAP results.
2
Positioned for strong equity returns
n A leading supplier of specialty contracting services to
telecommunication providers nationwide
telecommunication providers nationwide
n Telecommunications networks fundamental to economic progress
n End market opportunities driving organic growth, margin expansion
and increased earnings potential
and increased earnings potential
Ø Wireless backhaul
Ø Rural fiber networks
Ø Fiber deployments to businesses
Ø Wireless network upgrades
Ø FTTx deployments
n Footprint expansion with customers as market share increases
n Capital allocation strategy designed to produce strong equity
returns
3
Nationwide Footprint and Significant
Resources
Resources
n Headquartered in Palm Beach Gardens, Florida
n Nationwide footprint
} Operates in 48 states and in Canada
} 31 operating subsidiaries and hundreds of field offices
n Fiscal 2012 third quarter revenues of $296.1 million grew 17.3% year over year,
highest third quarter organic growth rate in 8 years
highest third quarter organic growth rate in 8 years
n Strong financial profile
} Cash and equivalents $66.7 million at April 28, 2012
} Availability on revolving credit agreement of $185.9 million at April 28, 2012
} 7.125% Senior Subordinated Notes due 2021
n Approximately 8,200 employees
Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures.
4
Services Crucial to Customer Success
Engineering
Underground Facility Locating
Outside Plant & Equipment Installation
Premise Equipment Installation
Wireless Services
5
Intensely Focused on
Telecommunications Market
Telecommunications Market
Contract Revenue $296.1 million
Quarter Ended April 28, 2012
6
Strong Secular Trend
Sources: U.S. Telecom, The Broadband Association
Cisco Visual Networking Index
U.S. National Bureau of Economic Analysis
“When the stability of an entire economy depends on the speed, intelligence, quality
of service, robustness and security of its Internet backbone, will a just good network
be good enough?”
of service, robustness and security of its Internet backbone, will a just good network
be good enough?”
John Chambers, Chairman and CEO, Cisco, Inc.
7
Key Driver: Wireless Backhaul
“Our third key strategic initiative-investing in fiber builds to as many towers in our service area as is
economically feasible. This initiative supports the anticipated long-term growth in data transport,
much of which is driven by wireless data traffic and expands our addressable customer footprint by
enabling fiber access points to other strategic locations where viable along those routes. During the
first quarter, we completed about 650 fiber builds. This was in line with our expectations and we
continue to anticipate completing 4,000 to 5,000 builds in 2012 as our fiber to the tower construction
continues to ramp throughout the year.”
economically feasible. This initiative supports the anticipated long-term growth in data transport,
much of which is driven by wireless data traffic and expands our addressable customer footprint by
enabling fiber access points to other strategic locations where viable along those routes. During the
first quarter, we completed about 650 fiber builds. This was in line with our expectations and we
continue to anticipate completing 4,000 to 5,000 builds in 2012 as our fiber to the tower construction
continues to ramp throughout the year.”
Stewart Ewing, EVP & CFO, CenturyLink, Inc. - May 2012
•Very attractive returns to our customers
•Telephone, cable and other companies aggressively deploying fiber to
provide wireless backhaul services
provide wireless backhaul services
•Continues to provide significant growth opportunities
Sources: FCC OBI Technical Paper 6,
Mobile Broadband: The Benefits of
Additional Spectrum
Mobile Broadband: The Benefits of
Additional Spectrum
8
Key Driver: Rural Fiber Networks
The American Recovery and Reinvestment Act
(ARRA) provided the Department of Commerce’s
National Telecommunications and Information
Administration (NTIA) and the U.S. Department of
Agriculture’s Rural Utilities Service (RUS) with
$7.2 billion to expand broadband services in the
United States.
(ARRA) provided the Department of Commerce’s
National Telecommunications and Information
Administration (NTIA) and the U.S. Department of
Agriculture’s Rural Utilities Service (RUS) with
$7.2 billion to expand broadband services in the
United States.
Cumulatively, total Federal expenditures have now exceeded $1 billion
(approximately seven percent of the total NTIA funds awarded) and have
been matched by recipient funds of more than $500 million.
(approximately seven percent of the total NTIA funds awarded) and have
been matched by recipient funds of more than $500 million.
NTIA BTOP Quarterly Program Status Report - March 2012
•Demand has absorbed significant industry capacity
•Dycom currently working on dozens of projects in multiple states
•Meaningfully increased exposure to rural service providers
9
$3.9 Billion
Addressable Business Services Market
$53.5 Billion
•Emerging as an industry battleground
•Multi-year cap-ex trajectory provides visible revenue opportunities
•Leverages Dycom’s existing cable engineering and construction resources
“I think we are getting most of our growth from SME and now Metro E and midsize are starting
to come in. We are offering three products really on the midsize. It is both - it is the Metro E
product, the ethernet, it is PRI, PBX equivalent, and now a hosted voice solution. [….] I think
the growth will continue to ramp in Metro E. And I think the growth rate will remain relatively
steady because we are growing it on a larger basis. We think the overall opportunity is $20
billion to $30 billion. We at about a $2.2 billion run rate now, so that is only a 10% penetration.”
to come in. We are offering three products really on the midsize. It is both - it is the Metro E
product, the ethernet, it is PRI, PBX equivalent, and now a hosted voice solution. [….] I think
the growth will continue to ramp in Metro E. And I think the growth rate will remain relatively
steady because we are growing it on a larger basis. We think the overall opportunity is $20
billion to $30 billion. We at about a $2.2 billion run rate now, so that is only a 10% penetration.”
Brian Roberts, CEO, Comcast Corporation - May 2012
Sources: Company Filings
Company Transcripts
10
Key Driver: Wireless Network Upgrades
“If you look at the data from last year, of 2011 over 2010, mobility traffic more than doubled.
And if you look at the forecast going forward in the next four years mobility traffic is going to
grow 1200% over the next four years. And within that, three quarters of that growth is driven
by video.”
And if you look at the forecast going forward in the next four years mobility traffic is going to
grow 1200% over the next four years. And within that, three quarters of that growth is driven
by video.”
Frank Calderoni, EVP & CFO, Cisco Systems - February 2012
•Wireless network spending increasing faster than overall spending
•Entered wireless market via NeoCom acquisition in December 2010 and is further
expanding its wireless services to key customers
expanding its wireless services to key customers
•Strong growth opportunities as industry migrates from 3G to 4G technologies
Sources: CTIA
Collins Stewart, LLC
11
Key Driver: FTTx Deployments
“…our Prism TV service represents a very compelling entertainment alternative to
cable TV services in the eight markets where it is currently available. We remain
focused on expanding our Prism TV enabled footprint and in driving additional
subscriber growth in the months ahead.”
cable TV services in the eight markets where it is currently available. We remain
focused on expanding our Prism TV enabled footprint and in driving additional
subscriber growth in the months ahead.”
Glen Post III, EVP & COO, CenturyLink, Inc. - May 2012
•A key competitive response by telephone companies to cable MSO’s
•CenturyLink just beginning scale deployments
•Dycom is leveraging prior, extensive FTTx experience with Verizon and AT&T
Sources: Company Filings
12
Subsidiaries
Dycom’s Nationwide Presence
Local Credibility, National Capability
13
Focused on High Value Profitable Growth
n Anticipating emerging technology trends which drive
capital spending
capital spending
n Deliberately targeting high quality, long-term industry
leaders which generate the vast majority of the
industry’s profitable opportunities
leaders which generate the vast majority of the
industry’s profitable opportunities
n Selectively acquiring businesses which complement
our existing footprint and enhance our customer
relationships
our existing footprint and enhance our customer
relationships
n Leveraging our scale and expertise to expand margins
through best practices
through best practices
14
Blue-chip, predominantly investment grade clients comprise the vast majority of revenue
Well Established Customers
Quarter Ended April 28, 2012
Customer Revenue Breakdown
Comcast
AT&T
CenturyLink
Verizon
Windstream
Charter
Ericcson
Time Warner
Cable
Other
Farmers Telephone
Crown Castle
15
Durable Customer Relationships
For comparison purposes, when customers have been combined through acquisition or merger, their revenues have been combined for all periods.
16
n Master Service Agreements (MSA’s)
} Multi-year, multi-million dollar
arrangements covering thousands of
individual work orders
arrangements covering thousands of
individual work orders
} Generally exclusive requirement contracts
n Long-term contracts relate to specific projects
with terms in excess of one year from the
contract date
with terms in excess of one year from the
contract date
n Dycom is party to numerous MSA’s and other
arrangements with customers that extend for
periods of one or more years and generally has
multiple agreements with each customer
n Short-term contracts relate to spot market
requirements
requirements
n Significant majority of contracts are based on
units of delivery
units of delivery
Revenue By Contract Type
Quarter Ended April 28, 2012
Quarter Ended April 28, 2012
Anchored by Long-Term Agreements
17
Robust Cash Flow - Investing for Growth
$842 million
Cash flow from operations
Cash flow from operations
$184 million
provided by other financing and investing activities and beginning cash on hand
$349 million
Business
acquisitions
Business
acquisitions
$393 million
Capital
expenditures,
net
expenditures,
net
$284 million
Share
repurchases
Share
repurchases
Cumulative Cash Flows Fiscal 2002 - Fiscal 2011
Note: Amounts hereon represent cumulative cash flow amounts for fiscal 2002 - fiscal 2011;
See “Regulation G Disclosure” a summary of amounts.
See “Regulation G Disclosure” a summary of amounts.
$1.026
Billion
Billion
Available
for
Investment
for
Investment
18
Capital Allocated to Maximize
Shareholder Returns
Shareholder Returns
n Organic growth, robust free cash flow and renewed confidence in
industry outlook promotes capital allocation strategy to further
expand shareholder returns
industry outlook promotes capital allocation strategy to further
expand shareholder returns
n Acquisitions of NeoCom Solutions and Communication Services in
FY 2011 supplement organic growth and contribute to equity returns
FY 2011 supplement organic growth and contribute to equity returns
n Share repurchases of approximately 15% of outstanding shares in
fiscal 2011 and fiscal 2012 creates incremental shareholder value
and reduces equity claims on future earnings
fiscal 2011 and fiscal 2012 creates incremental shareholder value
and reduces equity claims on future earnings
Financial Update
20
n Organic revenue growth of 17.3% during Q3-2012
n Margins and earnings expanding
n Strong balance sheet
n Solid cash flows and liquidity
n Capital structure designed to produce strong equity returns
Financial Overview
21
Contract Revenue Growth
Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures.
(a)Fiscal 2010 includes an incremental week as the result of our 52/53 week fiscal year.
(b)Trailing Twelve Months Q3-12 (“TTM”) includes contract revenues of $883.1 million for the nine months ended April 28, 2012 and $303.7 million for
the three months ended July 30, 2011.
the three months ended July 30, 2011.
Quarterly results exhibit seasonal weather patterns
Organic growth trends improving since fiscal 2009
Five consecutive quarters of organic growth
22
Margins and Earnings Expansion
Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures.
(a)The amounts and percentages for EBITDA - Adjusted and amounts for Income from continuing operations -Non-
GAAP are Non-GAAP financial measures adjusted to exclude certain items.
GAAP are Non-GAAP financial measures adjusted to exclude certain items.
Year over year expansion for the last seven quarters
Adjusted EBITDA expanding in recent periods
Earnings growth from higher revenues and tight
cost controls
cost controls
Adjusted EBITDA improving from stronger
performance and operating leverage
performance and operating leverage
23
Solid Cash Flow
(a) Trailing Twelve Months (“TTM”) Q3-12 cash flow from operating activities includes of $68.5 million for the nine months ended April 28, 2012 and $(8.2) million for the
three months ended July 30, 2011.
three months ended July 30, 2011.
(b) Capital expenditures are presented net of proceeds from the sale of assets. Trailing Twelve Months Q3-12 cap-ex, net includes of $42.3 million for the nine months
ended April 28, 2012 and $26.6 million for the three months ended July 30, 2011.
ended April 28, 2012 and $26.6 million for the three months ended July 30, 2011.
Solid operating cash flows
n Funding organic growth
n Reflecting efficient conversion of
earnings to cash
earnings to cash
Targeted capital spending
supports organic growth and
supports organic growth and
fleet efficiency
24
Strong Balance Sheet
Financial profile positioned to
address emerging industry
opportunities
address emerging industry
opportunities
n Fiscal 2021 maturity of Senior
Subordinated Notes
Subordinated Notes
n Over $250 million of liquidity from cash
on hand and availability under Senior
Credit agreement
on hand and availability under Senior
Credit agreement
n Repurchased $10.9 million of common
shares during Q3-12
shares during Q3-12
Net debt declines from solid cash
flows in fiscal 2012
flows in fiscal 2012
n Ratio of Net Debt to EBITDA-Adjusted
suitable for growth
suitable for growth
Note: See “Regulation G Disclosure” slides for a reconciliation of GAAP to Non-GAAP financial measures.
(a)The ratio of Net debt to EBITDA-Adjusted is a Non-GAAP financial measure adjusted to exclude certain items.
25
Strategy for Success
Organic
Growth
Growth
Lower Share Count
Higher
Equity
Returns
Equity
Returns
Supplemental schedules
Regulation G Disclosures
27
Regulation G Disclosure
(a) Year-over-year growth percentage is calculated as follows: (i) revenues in the current twelve month period less (ii) revenues in the comparative prior twelve month period;
divided by (ii) revenues in the comparative prior twelve month period.
divided by (ii) revenues in the comparative prior twelve month period.
(b) For the Trailing Twelve Months (“TTM “) Q3-12, TTM Q3-11, and FY 2011, revenues from business acquired reflect revenues from businesses acquired during Q2-11.
(c) Non-GAAP adjustments in FY 2010 reflect adjustments in Q4-10 result from the Company’s 52/53 week fiscal year of $20.1 million. The Q4-10 Non-GAAP adjustments
reflect the impact of the additional week in Q4-10 and are calculated by dividing contract revenues by 14 weeks. The result, representing one week of contract revenues, is
subtracted from the GAAP-contract revenues to calculate 13 weeks of revenue for Q4-10 on a Non-GAAP basis for comparison purposes.
reflect the impact of the additional week in Q4-10 and are calculated by dividing contract revenues by 14 weeks. The result, representing one week of contract revenues, is
subtracted from the GAAP-contract revenues to calculate 13 weeks of revenue for Q4-10 on a Non-GAAP basis for comparison purposes.
(d) Trailing Twelve Months Q3-12 includes contract revenues of $883.1 million for the nine months ended April 28, 2012 and $303.7 million for the three months ended July 30,
2011.
2011.
(e) Trailing Twelve Months Q3-11 includes contract revenues of $732.1 million for the nine months ended April 28, 2011 and $281.5 million for the three months ended July 31,
2010.
2010.
Amounts may not foot due to rounding.
28
Amounts may not foot due to rounding.
(a) Year-over-year growth (decline) percentage is calculated as follows: (i) revenues in the quarterly period less (ii) revenues in the comparative prior year quarter period;
divided by (ii) revenues in the comparative prior year quarter period.
divided by (ii) revenues in the comparative prior year quarter period.
(b) For Q3-12, GAAP and Non-GAAP revenue growth percentages are the same as revenues from business acquired in 2011 were included for the full quarter in each
period and there were no other Non-GAAP adjustments in either period. For Q1-11, GAAP and Non-GAAP revenue growth percentages are the same as there were no
Non-GAAP adjustments in either period.
period and there were no other Non-GAAP adjustments in either period. For Q1-11, GAAP and Non-GAAP revenue growth percentages are the same as there were no
Non-GAAP adjustments in either period.
(c) Non-GAAP adjustments in Q2-12, Q3-11 and Q2-11 reflect revenues from businesses acquired during Q2-11. Non-GAAP adjustments in Q1-12 reflect storm
restoration revenues ($3.7 million) and revenues from businesses acquired during Q2-11 ($14.5 million). Non-GAAP adjustments in Q4-11 reflect storm restoration
revenues ($14.1 million) and revenues from businesses acquired during Q2-11 ($14.1 million). Non-GAAP adjustments in Q4-10 result from the Company’s 52/53 week
fiscal year. The Q4-10 Non-GAAP adjustments reflect the impact of the additional week in Q4-10 and are calculated by dividing contract revenues by 14 weeks. The
result, representing one week of contract revenues, is subtracted from the GAAP-contract revenues to calculate 13 weeks of revenue for Q4-10 on a Non-GAAP basis for
comparison purposes. Non-GAAP adjustments in Q3-09, Q2-09, and Q1-09 reflect storm restoration revenues recognized during those periods.
restoration revenues ($3.7 million) and revenues from businesses acquired during Q2-11 ($14.5 million). Non-GAAP adjustments in Q4-11 reflect storm restoration
revenues ($14.1 million) and revenues from businesses acquired during Q2-11 ($14.1 million). Non-GAAP adjustments in Q4-10 result from the Company’s 52/53 week
fiscal year. The Q4-10 Non-GAAP adjustments reflect the impact of the additional week in Q4-10 and are calculated by dividing contract revenues by 14 weeks. The
result, representing one week of contract revenues, is subtracted from the GAAP-contract revenues to calculate 13 weeks of revenue for Q4-10 on a Non-GAAP basis for
comparison purposes. Non-GAAP adjustments in Q3-09, Q2-09, and Q1-09 reflect storm restoration revenues recognized during those periods.
29
Regulation G Disclosure
The below table presents the Non-GAAP financial measures of EBITDA and Adjusted EBITDA for the respective periods. EBITDA and Adjusted EBITDA are Non-GAAP financial measures within the meaning of Regulation G
promulgated by the Securities and Exchange Commission. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization, and defines Adjusted EBITDA as earnings before interest, taxes,
depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense and Adjusting items. The Company believes these Non-GAAP financial measures provide information that is useful to the Company’s
investors. The Company believes that this information is helpful in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on the
Company’s results of operations in any particular period. Additionally, the Company uses these Non-GAAP financial measures to evaluate its past performance and prospects for future performance. EBITDA and Adjusted EBITDA
are not recognized terms under GAAP and do not purport to be an alternative to net income, operating cash flows, or a measure of earnings. Because all companies do not use identical calculations, this presentation of Non-GAAP
financial measures may not be comparable to other similarly titled measures of other companies. These tables present a reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure.
promulgated by the Securities and Exchange Commission. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization, and defines Adjusted EBITDA as earnings before interest, taxes,
depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense and Adjusting items. The Company believes these Non-GAAP financial measures provide information that is useful to the Company’s
investors. The Company believes that this information is helpful in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on the
Company’s results of operations in any particular period. Additionally, the Company uses these Non-GAAP financial measures to evaluate its past performance and prospects for future performance. EBITDA and Adjusted EBITDA
are not recognized terms under GAAP and do not purport to be an alternative to net income, operating cash flows, or a measure of earnings. Because all companies do not use identical calculations, this presentation of Non-GAAP
financial measures may not be comparable to other similarly titled measures of other companies. These tables present a reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure.
30
Regulation G Disclosure
The below table presents the Non-GAAP financial measures of EBITDA and Adjusted EBITDA for the respective periods. EBITDA and Adjusted EBITDA are Non-GAAP financial measures within the meaning of Regulation G
promulgated by the Securities and Exchange Commission. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization, and defines Adjusted EBITDA as earnings before interest, taxes,
depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense and Adjusting items. The Company believes these Non-GAAP financial measures provide information that is useful to the Company’s
investors. The Company believes that this information is helpful in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on the
Company’s results of operations in any particular period. Additionally, the Company uses these Non-GAAP financial measures to evaluate its past performance and prospects for future performance. EBITDA and Adjusted EBITDA
are not recognized terms under GAAP and do not purport to be an alternative to net income, operating cash flows, or a measure of earnings. Because all companies do not use identical calculations, this presentation of Non-GAAP
financial measures may not be comparable to other similarly titled measures of other companies. These tables present a reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure.
promulgated by the Securities and Exchange Commission. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization, and defines Adjusted EBITDA as earnings before interest, taxes,
depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense and Adjusting items. The Company believes these Non-GAAP financial measures provide information that is useful to the Company’s
investors. The Company believes that this information is helpful in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on the
Company’s results of operations in any particular period. Additionally, the Company uses these Non-GAAP financial measures to evaluate its past performance and prospects for future performance. EBITDA and Adjusted EBITDA
are not recognized terms under GAAP and do not purport to be an alternative to net income, operating cash flows, or a measure of earnings. Because all companies do not use identical calculations, this presentation of Non-GAAP
financial measures may not be comparable to other similarly titled measures of other companies. These tables present a reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure.
(a) Trailing Twelve Months (“TTM”) Q3-12 is comprised of the following periods above: Q3-12, Q2-12, Q1-12, and Q4-11.
31
Regulation G Disclosure
Credit Suisse 2012 Engineering
and Construction Conference
and Construction Conference
June 7, 2012