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| 8-K - 8-K - DYCOM INDUSTRIES INC | dyfy2017q38k-investorprese.htm |
Investor Presentation
May/June 2017
Exhibit 99.1
2
Forward Looking Statements and
Non-GAAP Information
This presentation contains “forward-looking statements”. Other than statements of historical facts, all statements contained in
this presentation, including statements regarding the Company’s future financial position, future revenue, prospects, plans and
objectives of management, are forward-looking statements. Words such as “outlook,” “believe,” “expect,” “anticipate,”
“estimate,” “intend,” “should,” “could,” “project,” and similar expressions, as well as statements in future tense, identify
forward-looking statements. You should not consider forward-looking statements as a guarantee of future performance or
results. 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, assumptions, uncertainties, and risks that could cause such differences are
discussed in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on
August 31, 2016 and other filings with the SEC. The forward-looking statements in this presentation are expressly qualified in
their entirety by this cautionary statement. The Company undertakes no obligation to update these forward-looking statements
to reflect new information, or events or circumstances arising after such date.
This presentation includes certain “Non-GAAP” financial measures as defined by Regulation G of the SEC. 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 as slides 29 through 36 of this presentation. Non-GAAP financial measures should be considered in addition to,
but not as a substitute for, our reported GAAP results.
3
Leading supplier of specialty contracting services to
telecommunication providers
Nationwide footprint
Operates in all 50 states, Washington, D.C. and in Canada
Over 40 operating subsidiaries
Over 14,000 employees
Strong revenue base and customer relationships
Contract revenues of $786.3 million in Q3-17 compared to
$664.6 million in Q3-16, organic growth of 14.9%*
Non-GAAP Adjusted EBITDA of $108.2 million, or 13.8% of
revenues in Q3-17, compared to $91.9 million, or 13.8% in
Q3-16
Non-GAAP Adjusted Diluted EPS increased to $1.30 in
Q3-17 compared to $1.08 per share in Q3-16
Solid financial profile
Liquidity exceeds $340.8 million at April 29, 2017, consisting
of availability under our Credit Facility and cash on hand
Dycom Overview
See “Regulation G Disclosure” slides 29-36 for a reconciliation of GAAP to Non-GAAP financial measures.
* Organic growth excludes contract revenues of acquired businesses not included for the entire period of Q3-17 and Q3-16.
4
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6
Telecommunications networks fundamental to economic progress
Fiber is the foundation globally for wireline and wireless networks
Consumer demand for bandwidth driving fiber deployments by telecom providers
With a low percentage of total broadband connections provisioned by fiber in U.S.,
significant opportunities for sustained growth
Telecommunication Industry Overview
Source: Organisation for Economic Co-operation and Development (OECD), Broadband Portal (June 2016)
5
30 million
0
50
100
150
200
250
2016 Estimate of Homes Passed Homes Available
U.
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Massive investment cycle in early stages - total U.S. homes passed with fiber below 20%
(a) Potential of 124.6 million U.S. households (Statista-2015) with estimate that each home will
be passed by two separate telecom providers.
Source: Fiber to the Home Council
188 million
75% of
homes
commercially
viable for
fiber passing
250 million
passings (a) Eventual fiber passings estimated to
be approximately 188 million
30 million fiber passings completed
through 2016 - over a decade in
process
“Well, given what we've seen by way of build cost in terms of the efficiencies that I mentioned earlier, we no longer are
constrained by the -- we think at 70% going to 80% or beyond that. It just is a difficult model to prove out. Because we
are experiencing a significant change in the cost per pass and we're just, as I mentioned, getting much more efficient.”
Andy Kaiser, Cincinnati Bell Inc., CFO – March 2017
Telecommunication Industry Overview
6
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
(10)%
(8)%
(6)%
(4)%
(2)%
0%
2%
4%
6%
8%
10%
2000 2001 2003 2005 2007 2008 2010 2012 2014 2015 2017
N
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Estimates
Strong Secular Trend
“IP traffic in North America will reach 59.1 EB (exabytes) per month by 2020, growing at a CAGR of 19
percent.” Cisco VNI: Forecast and Methodology, 2015–2020 (June 2016)
“In North America, 88% of fixed broadband connections will be faster than 10 Mbps in 2020, up from
64% today.” Cisco VNI Complete Forecast Highlights (2016)
Strong and stable growth in IP
traffic even in times of GDP decline
North America Internet Protocol Traffic vs. GDP Growth
Sources: U.S. Telecom, The Broadband Association; Cisco Visual Networking Index; U.S. National Bureau of Economic Analysis
7
Industry drivers
Firm and strengthening end market opportunities
Telephone companies deploying FTTH to enable video offerings and 1 gigabit connections
Cable operators continuing to deploy fiber to small and medium businesses and
enterprises with increasing urgency. Overall, cable capital expenditures, new build
opportunities, and capacity expansion projects through fiber deep deployments are
increasing
Fiber deployments in contemplation of newly emerging wireless technologies have begun
in many regions of the country and more are expected
Customers are consolidating supply chains creating opportunities for market share
growth and increasing the long-term value of our maintenance business. We are
increasingly providing integrated planning, engineering and design, procurement and
construction and maintenance services for our customers.
Encouraged that industry participants are committed to multi-year capital
spending initiatives; these initiatives are increasing in numbers across a number
of customers
8
0
2
4
6
8
10
12
Q2-16 2017 Estimate 2018 Estimate 2019 Estimate
A
d
d
re
ss
ab
le
B
ro
ad
b
an
d
U
n
it
s
>100
M
p
b
s
Key Driver: FTTx Deployments
“Broadband had a very strong quarter with 115,000 subscribers added. Our
moves to simplify pricing are paying off and our fiber deployment is making
inroads. AT&T fiber is now in 52 metro areas and marketed to 4.6 million
customer location. We expect to add 2 million fiber locations this year to reach
6 million by the end of the year and to meet our 12.5 million merger
commitment goal by 2019.”
John Stephens, AT&T Inc., Senior EVP, CFO – April 2017
Telephone companies are deploying fiber to the home and fiber to the node technologies to
enable video offerings and 1 gigabit connections
Data transmission speeds dramatically increasing
Key customer recently committed to passing millions of new locations with fiber
Sources: AT&T Press Releases and transcripts.
AT&T CenturyLink
Sources: CenturyLink Press Releases, Presentations and transcripts.
AT&T Homes Passed CenturyLink Addressable
Broadband Units > 100 Mbps
“So we'll continue on our 3-year plan. Basically, within 3 years, we expect to
have a little over 90% of our homes passed with the ability to be able to get 40
Mbps. About 70% of the homes passed will be able to get 100 Mbps or
better.[...] I do think it's a good use of capital because at the end of the day, as
I was saying earlier, generally people need more broadband speeds every
year.”
R. Stewart Ewing - CenturyLink, Inc. - CFO, EVP and Assistant Secretary – May 2017
1.0
2.2
4.6
12.5
0
2
4
6
8
10
12
14
Q4-15 Q2-16 Q1-17 2019 AT&T
Expectations
U
S
H
o
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es
P
as
se
d
(
In
M
ill
io
n
s)
9
“Well, business services, let's put in perspective, is about a $5.5 billion business. We think that within the small and medium space it
is a $20 billion to $25 billion opportunity within our footprint. In the small business segment it is about 70% of our revenue, 60% of
our growth. We think we have about a 40% market share there. So there is still a lot of room and opportunity in there. The medium-
size business is about a $1 billion business for us right now. We think we have about a 20% market share. And it is growing at the
fastest rate of any of our segments. The enterprise space we have just entered, we have about a 5% -- less than a 5% share there. It is
going gangbusters. We think it is another $13 billion to $15 billion opportunity within -- revenue opportunity within our footprint.”
Neil Smit, Senior EVP & President, CEO, Comcast – March 2017
$5.51 $5.43
$40
$30
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
Comcast Charter
($ I
n
Bill
io
n
s)
2016 Revenue from Business Services Addressable Market
Key Driver: Fiber to Businesses
1 Year ended December 31, 2016
2 Calculated as the combination of the estimated addressable market given by Charter ($20Bn) and Time Warner Cable ($10Bn) in their respective earnings transcripts prior to their May 2016 merger.
Revenue earned by Comcast and Charter from Business Services totaled $10.9 Billion1 of an Addressable
Market of $70 billion
2
Sources: Comcast and Charter Press Releases and transcripts
10
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
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15
20
20 Es
ti
m
at
es
20
25 Es
ti
m
at
es
U
S
C
e
ll
C
it
ie
s
Key Driver: Wireless Network Upgrades
“And the fact that some people are going, oh my gosh, we're shocked at that, I think shows you that they don't
-- haven't yet understood the kind of leap that we're going to make with 5G. Because if you think about it,
you're going to deliver a gigabit of throughput to every home out there, you're going to need this sort of fiber
capacity. And I think it's a decade kind of build or a 2 decade kind of build. It's certainly not much longer than
that because this is going to be one of those if-you-build-it-they'll-come moments. And we've seen that every
time we've increased speed and capacity in our networks. It's been filled up very quickly with new
applications.”
Lowell McAdam - Verizon Communications Inc., Chairman & CEO – May 2017
Wireless carriers are increasing 4G capacity
and augmenting 4G with new 5G
technologies creating growth opportunities
in the near to intermediate term
Carriers enhancing coverage and capacity by
increasing the number of small cells
Emerging wireless technologies require
incremental wireline deployments
A complementary wireline investment
cycle is fundamental to applications
enabled by fully converged
wireless/wireline networks
Growth in Number of Cell Sites¹
1 Source: Industry publications
* Compound Annual Growth Rate (CAGR)
11
Intensely Focused on Telecommunications Market
Contract revenues of $786.3 million for Q3-17 Services Crucial to Customers’ Success
Electric and
Gas Utilities
and Other
Underground
Facility Locating
Telecommunications
Dycom is well-positioned to benefit from future growth opportunities
Outside Plant & Equipment Installation
Premise Equipment Installation
Wireless
Engineering
Underground Facility Locating
92.2%
5.4% 2.4%
12
Local Credibility, National Capability
Dycom headquarters
Primary locations
Subsidiaries Dycom’s Nationwide Presence
13
Focused on High Value Profitable Growth
Anticipate emerging technology trends that drive capital spending
Deliberately target high quality, long-term industry leaders which
generate the vast majority of the industry’s profitable opportunities
Selectively acquire businesses that complement our existing
footprint and enhance our customer relationships
Leverage our scale and expertise to expand margins through best
practices
14
Well Established Customers
Top Customers
Dycom has established relationships with:
Telephone companies
Wireless carriers
Cable television multiple system operators
Electric utilities and others
Customer Revenue Breakdown Q3-17
Blue-chip, investment grade customers comprise a substantial portion of revenue
15
Durable Customer Relationships
Revenues ($ in millions)
Note: For comparison purposes, revenues from Charter Communications, Inc., Time Warner Cable Inc., and Bright House Networks, LLC have been combined for
periods prior to their May 2016 merger.
-
$100
$200
$300
$400
$500
$600
$700
FY-07 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16
AT&T
CenturyLink
Comcast
Verizon
Windstream
Unnamed
Charter
16
Anchored by Long-Term Agreements
Dycom is party to hundreds of MSA’s and
other arrangements with customers that
extend for periods of one or more years
Generally multiple agreements maintained
with each customer
Master Service Agreements (MSA’s)
Multi-year, multi-million dollar
arrangements covering thousands of
individual work orders
Generally exclusive requirement
contracts
Agreements can at times be negotiated
Majority of contracts are based on units
of delivery
Backlog at $5.470 billion as of Q3-17
compared to $5.112 billion at Q2-17
Revenue by Contract Type for Fiscal Q3-17
Backlog ($ in millions)
Our backlog estimates represent amounts under master service agreements and other contractual agreements for services
projected to be performed over the terms of the contracts and are based on contract terms, our historical experience with
customers and, more generally, our experience in similar procurements. Backlog is not a measure defined by United States
generally accepted accounting principles; however, it is a common measurement used in our industry. Our methodology for
determining backlog may not be comparable to the methodologies used by others.
Master Service Agreements
Long-term
contracts Short-term
contracts
64.6%
24.3%
11.1%
17
Cash Flow from
Operations
$1,203
Other Cash
Flow
$736
Cap-Ex, net
$826
Business
Acquisitions
$659
Share
Repurchases
$455
Sources of Cash Uses of Cash
10 Years of Robust Cash Flow Generation
Sources and Uses of Cash ($ in millions)
Notes: Amounts represent cumulative cash flow for fiscal 2007 – Q3 fiscal 2017; See “Regulation G Disclosure” slides as set forth in the Appendix for a summary of amounts. Amounts may not add due to rounding.
1 Other cash flow includes borrowings, other financing and investing activities and beginning cash on hand.
Strong operating cash flow of
$1.203 billion since fiscal 2007
Prudent approach to capital
allocation:
$455 million invested in share
repurchases
$659 million invested in
business acquisitions
$826 million in cap-ex, net of
disposals, or approximately 43%
of allocation
Business
Acquisitions
34%
Cap-Ex, net
43%
Share
Repurchases
23%
Fiscal 2007 – Q3 Fiscal 2017
Robust cash flow generation and prudent capital allocation provide strong foundation
for returns
$1,940 $1,940
18
Industry Themes
Industry increasing network bandwidth dramatically
Major industry participants deploying significant 1 gigabit wireline networks
Emerging wireless technologies require incremental wireline deployments
o A complementary wireline investment cycle is fundamental to applications
enabled by fully converged wireless/wireline networks
Industry developments are producing opportunities which in aggregate are without
precedent. Converged wireless/wireline network deployments only further broaden
our set of opportunities.
Delivering valuable service to customers
Currently providing services for 1 gigabit full deployments across the country in
dozens of metropolitan areas to a number of customers
Revenues and opportunities driven by this industry standard continue to grow
Have secured and are actively working on a number of converged wireless/wireline
multi-use networks
Customers are revealing with more specificity multi-year initiatives that are being
implemented and managed locally
Our ability to provide integrated planning, engineering and design, procurement and
construction and maintenance services provides value to industry participants with
projects outside their traditional geographic service territories
Dycom’s scale, market position and financial strength position it well as opportunities
continue to expand
19
Financial Update
20
Strong operating results
Contract revenues of $786.3 million in Q3-17 compared to $664.6 million in Q3-16, organic
growth of 14.9%*
Non-GAAP Adjusted EBITDA of $108.2 million, or 13.8% of revenues in Q3-17, compared to
$91.9 million, or 13.8% in Q3-16
Non-GAAP Adjusted Diluted EPS increased to $1.30 in Q3-17 compared to $1.08 per share in
Q3-16
Solid financial profile
Strong balance sheet and cash flows; Sound credit metrics and no near term debt maturities
Robust operating cash flows of $289.0 million TTM as of Q3-17
Capital structure designed to produce strong returns
Repurchased 713,006 common shares for $62.9 million at an average price of $88.23 per share
during 2017 and 2,511,578 shares for $170 million at an average price of $67.69 during 2016
As of April 2017, $112.1 million authorized for share repurchases through August 2018
Financial Overview
* Organic growth excludes contract revenues of acquired businesses not included for the entire period of Q3-17 and Q3-16.
See “Regulation G Disclosure” slides 29-36 for a reconciliation of GAAP to Non-GAAP financial measures.
21
18.2%
21.9%
19.4%
28.7%
20.0%
18.0%
22.9%
14.9%
0%
5%
10%
15%
20%
25%
30%
Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
$578
$659
$559
$665
$789 $799
$701
$786
Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
$1,201.1
$1,608.6
$1,811.6
$2,022.3
$2,672.5
FY2012 FY2013 FY2014 FY2015 FY2016
Contract Revenue Trend
Annual Organic Revenue Trend
Quarterly Contract Revenues
Quarterly Organic Revenue Trend
Annual Growth in Contract Revenues
Financial charts - $ in millions
Strong and sustained financial performance
*
*Q4-16 organic % growth adjusted for additional week in Q4-16
See “Regulation G Disclosure” slides 29-36 for a reconciliation of GAAP to Non-GAAP financial measures.
15.4%
4.9% 4.7%
9.6%
22.7%
FY2012 FY2013 FY2014 FY2015 FY2016
22
$88.5
$105.7
$66.4
$91.9
$126.0
$129.2
$86.2
$108.2
15.3% 16.0%
11.9%
13.8%
16.0% 16.2%
12.3%
13.8%
Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA as a % of Revenue
Quarterly Non-GAAP Adjusted EBITDA
$0.97
$1.24
$0.54
$1.08
$1.64 $1.67
$0.82
$1.30
Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
Quarterly Non-GAAP Adjusted Diluted EPS
$1.14 $1.18 $1.16
$2.41
$4.48
FY2012 FY2013 FY2014 FY2015 FY2016
Non-GAAP Adjusted Diluted EPS
$135 $180 $188 $265 $390
11.3% 11.2%
10.4%
13.1%
14.6%
FY2012 FY2013 FY2014 FY2015 FY2016
Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA as a % of Revenue
Non-GAAP Adjusted EBITDA
Financial charts - $ in millions, except earnings per share amounts
Earnings
See “Regulation G Disclosure” slides 29-36 for a reconciliation of GAAP to Non-GAAP financial measures.
23
Strong balance sheet and robust liquidity
Liquidity and Cash Flow
Financial tables - $ in millions
Revolver borrowings of $71.0 million as of
Q3-17
Liquidity exceeds $340.8 million at the end of
Q3-17 consisting of availability from our Credit
Facility and cash on hand
Cash Flow from Operating Activities
Operating cash flows support strong organic
growth
(a) Availability on Revolver presented net of $57.6 million for outstanding L/C’s under the Senior Credit Agreement
at each of Q2-17 and Q3-17.
Note: TTM Q3-17 cash flows from operating activities is the aggregate of quarterly cash flows
from operating activities from Q3-17, Q2-17, Q1-17, and Q4-16 of $42.3 million, $105.8 million,
$(41.6 million), and $182.5 million, respectively. Amounts may not add due to rounding.
Q2-17 Q3-17
Cash and equivalents $ 29.5 $ 19.4
$450 million revolver $ - $ 71.0
Term Loan Facilities 376.9 367.7
Notional Value 485.0 485.0
Total Notional Amount of Debt $ 861.9 $ 923.7
Net Debt (Notional Debt less Cash) $ 832.4 $ 904.3
Total Notional Amount of Debt (see above) $ 861.9 $ 923.7
Unamortized debt discount and debt fees on 0.75%
Convertible Senior Notes (102.5) (97.7)
Debt, net of debt discount and fees $ 759.4 $ 826.0
Availability on revolver(a) $ 392.4 $ 321.4
Cash and availability on revolver $ 421.9 $ 340.8
Senior Credit Facility, matures April 2020:
0.75% Convertible Senior Notes, mature September 2021:
$65
$107
$84
$142
$261
$289
FY2012 FY2013 FY2014 FY2015 FY2016 TTM Q3-17
24
Capital Allocated to Maximize Returns
Strong balance sheet, solid cash flow and long-term confidence in industry outlook drives
capital allocation strategy
Invest in organic growth
Organic revenue grew 14.9% in Q3-17 and 22.7% in fiscal 2016, reflecting growth from
several key customers
Pursue complementary acquisitions
Fiscal 2013 - 2017 acquisitions further strengthened Dycom’s customer base, geographic
scope, and technical service offerings
During fiscal 2016 and 2017, acquired businesses for $181.8 million further strengthening
customer relationships and expanding geographic reach
Share repurchases
Repurchased approximately 23.7 million shares for approximately $642 million since fiscal
2006
$112 million authorization available for share repurchases through August 2018
Dycom is committed to maximizing long term returns through prudent capital allocation.
See “Regulation G Disclosure” slides 29-36 for a reconciliation of GAAP to Non-GAAP financial measures.
25
Questions and Answers
26
The following slides 27-31 were used on May 24, 2017 in connection with the
Company’s conference call to discuss fiscal 2017 third quarter results and are included
for your convenience. Reference is made to slide 2 titled “Forward-Looking
Statements and Non-GAAP Information” with respect to these slides. The information
and statements contained in slides 27-31 that are forward-looking are based on
information that was available at the time the slides were initially prepared and/or
management’s good faith belief at that time with respect to future events. Except as
required by law, the Company may not update forward-looking statements even
though its situation may change in the future. For a full copy of the conference call
materials, including the conference call transcript, see the Company’s Form 8-Ks filed
with the Securities and Exchange Commission on May 24, 2017 and May 25, 2017.
Selected Information from Q3-17
Dycom Results Conference Call
Materials
27
Q4-2017 Outlook
Financial table- $ in millions, except earnings per share amounts (% as a percent of contract revenues)
See “Regulation G Disclosure” slides 29-36 for a reconciliation of GAAP to Non-GAAP financial measures.
“Q4-2017 Outlook” - This slide was prepared and used on May 24, 2017 in connection with the Company’s conference call to discuss fiscal 2017 third quarter results and is
included for your convenience. Reference is made to slide 2 titled “Forward-Looking Statements and Non-GAAP Information” with respect to this slide. The information and
statements contained in this slide that are forward-looking is based on information that was available at the time the slide was initially prepared and/or management’s
good faith belief at that time with respect to future events. Except as required by law, the Company may not update forward-looking statements even though its situation
may change in the future. For a full copy of the conference call materials, including the conference call transcript, see the Company’s Form 8-Ks filed with the Securities and
Exchange Commission on May 24, 2017 and May 25, 2017.
Q4-2016
Included for
comparison
Q4-2017 Outlook and Commentary
# of Weeks in Fiscal Quarter 14 Weeks 13 Weeks 13 weeks in Q4-17 compared to 14 weeks in Q4-16 as a result of 52/53 week fiscal
year
Contract Revenues
(See “Regulation G Disclosure”
slide 31 for a reconciliation of
GAAP to Non-GAAP contract
revenues)
$ 789.2 (GAAP)
$ 727.6 (Non-GAAP
organic revenue)
$ 780 - $ 810 Broad range of demand from several large customers
1 gigabit deployments, fiber deep cable capacity projects, and initial phases of fiber
deployments for newly emerging wireless technologies
Total Q4-17 revenue expected to include approximately $25.0 million from
businesses acquired in Q4-16 and Q3-17
Gross Margin % 23.2% Gross Margin %
decreases modestly
from Q4-16
Outlook reflects expected mix of work activity and near term margin impacts as we
prepare for larger programs
Non-GAAP G&A Expense % 7.8% G&A in-line as a % of
revenue compared to
Q4-16
G&A expense % includes share-based compensation of approximately $5.0 million in
Q4-17
Share-based compensation $ 4.2 $ 5.0
Depreciation & Amortization $ 36.0 $39.1 - $39.9
Depreciation reflects cap-ex supporting growth opportunities and maintenance
Includes amortization of approximately $6.3 million in Q4-17 compared to $5.4
million in Q4-16
Non-GAAP Adjusted Interest
Expense
$ 5.1 Approximately $ 5.2 Non-GAAP Adjusted Interest Expense excludes non-cash amortization of debt
discount of $4.5 million in Q4-17 compared to $4.6 million in Q4-16
Other Income, net $ 3.6 $ 2.3 - $ 2.9 Other income, net primarily includes gain (loss) on sales of fixed assets and discount
charges related to non-recourse sales of accounts receivable in connection with a
customer’s supplier payment program
Non-GAAP Adjusted EBITDA % 16.0% Non-GAAP Adjusted
EBITDA % decreases
modestly from Q4-16
Non-GAAP Adjusted EBITDA dollar amount decreases compared to Q4-16 result; Q4-17
will include 13 weeks of operations compared to 14 weeks in Q4-16
Non-GAAP Adjusted Diluted
Earnings per Share
$ 1.64
(14 Weeks in
Q4-16)
$ 1.35 - $ 1.50
(13 Weeks in
Q4-17)
Non-GAAP Adjusted Diluted EPS excludes non-cash amortization of debt discount
on Senior Convertible Notes (“Notes”). See slide 30 for reconciliation of guidance
for Non-GAAP Adjusted Diluted Earnings per Common Share.
Diluted Shares 32.1 million 31.7 million
28
Looking Ahead to Q1-2018
See “Regulation G Disclosure” slides 29-36 for a reconciliation of GAAP to Non-GAAP financial measures.
“Looking Ahead to Q1-2018” - This slide was prepared and used on May 24, 2017 in connection with the Company’s conference call to discuss fiscal 2017 third quarter results
and is included for your convenience. Reference is made to slide 2 titled “Forward-Looking Statements and Non-GAAP Information” with respect to this slide. The
information and statements contained in this slide that are forward-looking is based on information that was available at the time the slide was initially prepared and/or
management’s good faith belief at that time with respect to future events. Except as required by law, the Company may not update forward-looking statements even
though its situation may change in the future. For a full copy of the conference call materials, including the conference call transcript, see the Company’s Form 8-Ks filed with
the Securities and Exchange Commission on May 24, 2017 and May 25, 2017.
Financial table- $ in millions, (% as a percent of contract revenues)
Q1-2017
Included for
comparison
Q1-2018 Outlook and Commentary
Contract Revenues $ 799.2 Total revenue decline
of low single digits
compared to
Q1-17 revenues
Broad range of demand from several large customers
1 gigabit deployments, fiber deep cable capacity projects, and initial phases of
fiber deployments for newly emerging wireless technologies increasing
Total Q1-18 revenue expected to include approximately $5 million from a
business acquired in Q3-17. For organic growth calculations, there were no
acquired revenues in Q1-17.
Gross Margin %
23.1% Gross Margin %
decreases modestly
from Q1-17
Margin outlook reflects expected mix of work activity and near term margin
impacts as we initiate larger programs
G&A Expense % 7.5% G&A as a % of revenue
increases from Q1-17
G&A as a % of revenue supports growth opportunities and includes increased
share based compensation related to vesting schedule of awards
Share-based compensation $ 5.7 $ 7.2
Depreciation &
Amortization
$ 34.5 $39.4 - $40.2
Depreciation reflects cap-ex supporting growth opportunities and maintenance
Includes amortization of approximately $6.3 million in Q1-18 compared to
$6.2 million in Q1-17
Non-GAAP Adjusted
Interest Expense
$ 4.8 Approximately $ 5.0 Non-GAAP Adjusted Interest Expense excludes non-cash amortization of debt
discount of $4.5 million in Q1-18 compared to $4.3 million in Q1-17
Other Income, net $ 0.9 $ 0.7 - $ 1.3 Other income, net primarily includes gain (loss) on sales of fixed assets and
discount charges related to non-recourse sales of accounts receivable in
connection with a customer’s supplier payment program
Non-GAAP Adjusted
EBITDA %
16.2% Non-GAAP Adjusted EBITDA %
decreases modestly
from Q1-17
Non-GAAP Adjusted EBITDA dollar amount decreases compared to Q1-17 result
Diluted Shares 32.2 million 31.9 million
29
Explanation of Non-GAAP Measures
Appendix: Regulation G Disclosure
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference
calls, slide presentations, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company believes
that the presentation of certain Non-GAAP financial measures in these materials provides information that is useful to investors because it allows for a more direct comparison of the
Company’s performance for the period reported with the Company’s performance in prior periods. The Company cautions that Non-GAAP financial measures should be considered in
addition to, but not as a substitute for, the Company’s reported GAAP results. Management defines the Non-GAAP financial measures as follows:
• Non-GAAP Organic Contract Revenues - contract revenues from businesses that are included for the entire period in both the current and prior year periods. In the fourth quarter of
fiscal 2016 Non-GAAP Organic Contract Revenues were also adjusted for the additional week as a result of the Company’s 52/53 week fiscal calendar. Non-GAAP Organic Contract
Revenue growth is calculated as the percentage change in Non-GAAP Organic Contract Revenues over those of the comparable prior year period. Management believes organic growth
is a helpful measure for comparing the Company’s revenue performance with prior periods.
• Non-GAAP Adjusted EBITDA - net income before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, loss on debt
extinguishment, and certain non-recurring items. Management believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the Company’s operating performance with
prior periods as well as with the performance of other companies with different capital structures or tax rates.
• Non-GAAP Adjusted Net Income - GAAP net income before loss on debt extinguishment, non-cash amortization of the debt discount, certain non-recurring items and any tax impact
related to these items.
• Non-GAAP Adjusted Diluted Earnings per Common Share - Non-GAAP Adjusted Net Income divided by weighted average diluted shares outstanding.
Management excludes or adjusts each of the items identified below from Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings per Common Share:
• Non-cash amortization of the debt discount - The Company’s convertible senior notes were allocated between debt and equity components. The difference between the
principal amount and the carrying amount of the liability component of the convertible senior notes represents a debt discount. The debt discount is being amortized over the
term of the convertible senior notes but does not result in periodic cash interest payments. The Company has excluded the non-cash amortization of the debt discount from its
Non-GAAP financial measures because it believes it is useful to analyze the component of interest expense for the convertible senior notes that will be paid in cash. The
exclusion of the non-cash amortization from the Company’s Non-GAAP financial measures provides management with a consistent measure for assessing financial results.
• Acquisition transaction related costs – The Company incurred costs of approximately $0.7 million in connection with an acquisition during the fourth quarter of fiscal 2016. The
exclusion of the acquisition transaction related costs from the Company’s Non-GAAP financial measures provides management with a consistent measure for assessing
financial results.
• Loss on debt extinguishment – The Company incurred a pre-tax charge of approximately $16.3 million for early extinguishment of debt in connection with the redemption of its
7.125% senior subordinated notes during the first quarter of fiscal 2016. Management believes excluding the loss on debt extinguishment from the Company’s Non-GAAP
financial measures assists investors’ overall understanding of the Company's current financial performance. The Company believes this type of charge is not indicative of its
core operating results. The exclusion of the loss on debt extinguishment from the Company’s Non-GAAP financial measures provides management with a consistent measure
for assessing the current and historical financial results.
• Tax impact of adjusted results - The tax impact of the adjusted results was calculated utilizing a Non-GAAP effective tax rate which approximates the Company’s effective tax
rate used for financial planning. The tax impact included in the Company’s guidance for the quarter ending July 29, 2017 was calculated using an effective tax rate used for
financial planning and forecasting future results.
30
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Outlook – Non-GAAP Diluted Earnings per Common Share for the Three Months Ending July 29, 2017
Unaudited
Appendix: Regulation G Disclosure
This slide was prepared and used on May 24, 2017 in connection with the Company’s conference call to discuss fiscal 2017 third quarter
results and is included for your convenience. Reference is made to slide 2 titled “Forward-Looking Statements and Non-GAAP Information”
with respect to this slide. The information and statements contained in this slide that are forward-looking is based on information that was
available at the time the slide was initially prepared and/or management’s good faith belief at that time with respect to future events.
Except as required by law, the Company may not update forward-looking statements even though its situation may change in the future.
For a full copy of the conference call materials, including the conference call transcript, see the Company’s Form 8-Ks filed with the Securities
and Exchange Commission on May 24, 2017 and May 25, 2017.
Use of Non-GAAP Financial Measures: The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules,
conference calls, slide presentations, and webcasts, we may use or discuss Non-GAAP financial measures, as defined by Regulation G of the SEC. See Explanation of Non-GAAP Measures on slide 29.
Notes: Amounts above may not add due to rounding.
Outlook for the Three Months Ending July 29, 2017
Diluted earnings per common share – GAAP (a) $1.26 - $1.41
Adjustment for addback of after-tax non-cash amortization of debt discount on convertible senior notes (b) $ 0.09
Non-GAAP Adjusted Diluted Earnings per Common Share (a) $1.35 - $1.50
(a) Guidance for diluted earnings per common share and Non-GAAP Adjusted diluted earnings per common share for the three months ending
July 29, 2017 were computed using approximately 31.7 million in diluted weighted average shares outstanding.
(b) The Company expects to recognize approximately $4.5 million in pre-tax interest expense during the three months ending July 29, 2017 for
non-cash amortization of the debt discount associated with its convertible senior notes. The Company excludes the effect of this non-cash
amortization in its Non-GAAP financial measures.
31
Appendix: Regulation G Disclosure
(a) Q4-16 included an incremental week required by our 52/53 week fiscal calendar. The Q4-16 Non-GAAP adjustment is calculated as (i) contract revenues less,
(ii) revenues from acquired businesses in each applicable period, (iii) divided by 14 weeks.
Q4-16 and Q1-17 Non-GAAP Organic Revenues are provided for comparison to Q4-17 and Q1-18 Non-GAAP Organic Revenue Outlook
(see slides 27 and 28)
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Non-GAAP Organic Contract Revenue
Unaudited
($ in millions)
Use of Non-GAAP Financial Measures: The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules,
conference calls, slide presentations, and webcasts, we may use or discuss Non-GAAP financial measures, as defined by Regulation G of the SEC. See Explanation of Non-GAAP Measures on slide 29.
This slide was prepared and used on May 24, 2017 in connection with the Company’s conference call to discuss fiscal 2017 third quarter
results and is included for your convenience. Reference is made to slide 2 titled “Forward-Looking Statements and Non-GAAP Information”
with respect to this slide. The information and statements contained in this slide that are forward-looking is based on information that was
available at the time the slide was initially prepared and/or management’s good faith belief at that time with respect to future events.
Except as required by law, the Company may not update forward-looking statements even though its situation may change in the future.
For a full copy of the conference call materials, including the conference call transcript, see the Company’s Form 8-Ks filed with the Securities
and Exchange Commission on May 24, 2017 and May 25, 2017.
32
Appendix: Regulation G Disclosure
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Non-GAAP Organic Contract Revenue
Unaudited
($ in millions)
(a) The fourth quarter of fiscal 2016 contained 14 weeks as a result of our 52/53 week fiscal year as compared to 13 weeks in all other quarterly periods presented herein.
Use of Non-GAAP Financial Measures: The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules,
conference calls, slide presentations, and webcasts, we may use or discuss Non-GAAP financial measures, as defined by Regulation G of the SEC. See Explanation of Non-GAAP Measures on slide 29.
Revenues from
acquired
businesses
Additional week
as a result of our
52/53 week fiscal
year (a) GAAP %
Non-GAAP -
Organic %
Q3-17 Organic Growth:
Q3-17 786.3$ (23.0)$ -$ 763.4$ 18.3% 14.9%
Q3-16 664.6$ -$ -$ 664.6$
Prior Quarter Organic Growth (Decline):
Q2-17 701.1$ (13.4)$ -$ 687.7$ 25.3% 22.9%
Q2-16 559.5$ -$ -$ 559.5$
Q1-17 799.2$ (56.6)$ -$ 742.6$ 21.2% 18.0%
Q1-16 659.3$ (29.9)$ -$ 629.4$
Q4-16 789.2$ (44.8)$ (53.2)$ 691.2$ 36.4% 20.0%
Q4-15 578.5$ (2.4)$ -$ 576.1$
Q3-16 664.6$ (30.8)$ -$ 633.9$ 35.0% 28.7%
Q3-15 492.4$ -$ -$ 492.4$
Q2-16 559.5$ (32.9)$ -$ 526.6$ 26.8% 19.4%
Q2-15 441.1$ -$ -$ 441.1$
Q1-16 659.3$ (39.5)$ -$ 619.7$ 29.2% 21.9%
Q1-15 510.4$ (1.9)$ -$ 508.5$
Q4-15 578.5$ (11.8)$ -$ 566.7$ 20.0% 18.2%
Q4-14 482.1$ (2.8)$ -$ 479.3$
Q3-15 492.4$ (8.9)$ -$ 483.4$ 15.5% 13.4%
Q3-14 426.3$ -$ -$ 426.3$
Contract
Revenues
Non-GAAP -
Organic
Revenues
Revenue Growth (Decline)% NON-GAAP ADJUSTMENTS
33
1 Non-GAAP adjustments in FY 2016 reflect adjustments in Q4-16 resulting from the Company’s 52/53 week fiscal year of $52.9 million. The Q4-16 Non-GAAP adjustments reflect the impact of the additional
week in Q4-16 and are calculated by (i) contract revenues less acquired revenue, divided by (ii) 14 weeks. The result, representing one week of contract revenues, is subtracted from the GAAP-contract
revenues to calculate 13 weeks of revenues for Q4-16 on a Non-GAAP basis for comparison purposes.
Contract Revenues and Organic Growth - Reconciliation of GAAP to Non-GAAP Measures ($ in millions)
The table below reconciles GAAP revenue growth to Non-GAAP organic revenue growth
Appendix: Regulation G Disclosure
Revenues
from
businesses
acquired
Revenues
from storm
restoration
services
Adjustment for
extra week as
a result of
52/53 week
fiscal year 1
Total
Adjustment GAAP NON-GAAP
FY 2016 2,672.5$ (159.0)$ -$ (52.9)$ (211.9)$ 2,460.6$ 32.2% 22.7%,02 .3 (17.7 ( 7.7 ,004.
FY 2015 2,022.3$ (17.7)$ -$ -$ (17.7)$ 2,004.6$
FY 2015 2,022.3$ (40.4)$ -$ -$ (40.4)$ 1,982.0$ 11.6% 9.6%1,811.6 (2.8 (2.8 ,808.8
FY 2014 1,811.6$ (2.8)$ -$ -$ (2.8)$ 1,808.8$
FY 2014 1,811.6$ (499.3)$ -$ -$ (499.3)$ 1,312.3$ 12.6% 4.7%,608. 337.9 354.6 ,254.0
FY 2013 1,608.6$ (337.9)$ (16.7)$ -$ (354.6)$ 1,254.0$
FY 2013 1,608.6$ (337.9)$ (16.7)$ -$ (354.6)$ 1,254.0$ 33.9% 4.9%,2 1.1 - (6.0 ,195.1
FY 2012 1,201.1$ -$ (6.0)$ -$ (6.0)$ 1,195.1$
FY 2012 1,201.1$ (54.5)$ (6.0)$ -$ (60.5)$ 1,140.6$ 16.0% 15.4%,035.9 33.8 47.8 988.1
FY 2011 1,035.9$ (33.8)$ (14.1)$ -$ (47.8)$ 988.1$
FY 2011 1,035.9$ (33.8)$ (14.1)$ -$ (47.8)$ 988.1$ 4.8% 2.0%988.6 - (20.1) 6 .5
FY 2010 988.6$ -$ -$ (20.1)$ (20.1)$ 968.5$
GAAP Contract
Revenues
NON-GAAP ADJUSTMENTS
NON-GAAP
Contract
Revenues 1
Organic Growth %
Notes: Amounts above may not add due to rounding.
Use of Non-GAAP Financial Measures: The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules,
conference calls, slide presentations, and webcasts, we may use or discuss Non-GAAP financial measures, as defined by Regulation G of the SEC. See Explanation of Non-GAAP Measures on slide 29.
34
Net Cash Provided
by Operating
Activities
Capital Expenditures,
Net of Proceeds from
Asset Sales
Cash Paid for
Acquisitions, net
of cash acquired
Repurchases of
Common Stock
Borrowings and Other
Financing Activities 1
Other Investing
Activities 2
Total Other Financing
and Investing
Activities
Q3-17 YTD 106.5$ (126.0)$ (24.6)$ (62.9)$ 91.4$ 0.3$ 91.7$
FY-16 261.5 (175.5) (157.2) (170.0) 254.1 (0.5) 253.6
FY-15 141.9 (93.6) (31.9) (87.1) 75.9 (4.5) 71.4
FY-14 84.2 (73.7) (17.1) (10.0) 19.0 (0.3) 18.7
FY-13 106.7 (58.8) (330.3) (15.2) 263.5 0.1 263.6
FY-12 65.1 (52.8) - (13.0) 7.6 0.9 8.5
FY-11 43.9 (49.2) (36.5) (64.5) 47.5 0.2 47.7
FY-10 54.1 (46.6) - (4.5) (4.4) - (4.4)
FY-09 126.6 (25.3) - (2.9) (15.7) (0.1) (15.8)
FY-08 104.3 (62.3) 0.5 (25.2) (13.8) (0.3) (14.1)
FY-07 108.5 (62.3) (61.8) - 7.7 (0.4) 7.3
Cumulative 1,203.3$ (826.2)$ (658.9)$ (455.3)$ 732.8$ (4.5)$ 728.2$
Cash at July 29, 2006 27.3$
Cash at April 29, 2017 19.4
7.9$
736.1$
Difference represents beginning cash used during
the period
Total amount provided by Other Financing and
Investing Activities and beginning cash on hand
Notes: Amounts may not add due to rounding.
1 Other financing activities represents net cash provided by (used in) financing activities less repurchases of common stock.
2 Other investing activities represents net cash provided by (used in) investing activities less capital expenditure, net of proceeds from asset sales and less cash paid for acquisitions, net of cash acquired.
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Calculation of Cumulative Cash Flows Fiscal 2007 through Q3 Fiscal 2017
Unaudited
($ in millions)
Appendix: Regulation G Disclosure
35
Notes: Amounts above may not add due to rounding.
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Diluted EPS, and Non-GAAP Adjusted Interest Expense
Unaudited ($ in 000's, except per share amounts)
Appendix: Regulation G Disclosure
Reconciliation of Net Income to Non-GAAP Adjusted Net Income and Diluted EPS to Non-GAAP Adjusted Diluted EPS
Fiscal 2012 Fiscal 2013 Fiscal 2014 Q1-15 Q2-15 Q3-15 Q4-15 Fiscal 2015 Q1-16 Q2-16 Q3-16 Q4-16 Fiscal 2016 Q1-17 Q2-17 Q3-17
Net income 39.4$ 35.2$ 40.0$ 20.8$ 9.4$ 20.3$ 33.8$ 84.3$ 30.8$ 15.5$ 33.1$ 49.4$ 128.7$ 51.1$ 23.7$ 38.8$
Loss on debt extinguishment - - - - - - - - 16.3 - - - 16.3 - - -
Amortization of debt discount - - - - - - - - 1.8 4.1 4.2 4.6 14.7 4.3 4.4 4.4
Charges for settlement of wage and hour litigation - 0.5 0.6 - - - - - - - - - - - - -
Acquisition related costs - 6.8 - - - - - - - - - 0.7 0.7 - - -
Tax impact of adjustments - (3.0) (0.2) - - - - - (6.8) (1.6) (1.6) (2.0) (12.0) (1.6) (1.6) (1.6)
Total adjustments, net of tax -$ 4.6$ 0.4$ -$ -$ -$ -$ -$ 11.2$ 2.5$ 2.6$ 3.3$ 19.6$ 2.7$ 2.7$ 2.8$
Non-GAAP Adjusted Net income 39.4$ 39.8$ 40.3$ 20.8$ 9.4$ 20.3$ 33.8$ 84.3$ 42.0$ 18.0$ 35.7$ 52.7$ 148.4$ 53.7$ 26.4$ 41.6$
Diluted Earnings Per Share
Net income 1.14$ 1.04$ 1.15$ 0.59$ 0.27$ 0.58$ 0.97$ 2.41$ 0.91$ 0.46$ 1.00$ 1.54$ 3.89$ 1.59$ 0.74$ 1.22$
Adjusting Items from above, after tax - 0.14 0.01 - - - - - 0.33 0.08 0.08 0.10 0.59 0.08 0.09 0.09
Non-G AP Adjusted Diluted Earnings Per Common Share 1.14$ 1.18$ 1.16$ 0.59$ 0.27$ 0.58$ 0.97$ 2.41$ 1.24$ 0.54$ 1.08$ 1.64$ 4.48$ 1.67$ 0.82$ 1.30$
Fully Diluted Shares (in thousands) 34,482 33,782 34,816 35,118 35,127 35,029 34,831 35,027 33,887 33,520 33,051 32,074 33,116 32,200 32,162 31,910
Reconciliation of Non-GAAP Adjusted Interest Expense
Fiscal 2012 Fiscal 2013 Fiscal 2014 Q1-15 Q2-15 Q3-15 Q4-15 Fiscal 2015 Q1-16 Q2-16 Q3-16 Q4-16 Fiscal 2016 Q1-17 Q2-17 Q3-17
Interest expense, net 16.7$ 23.3$ 26.8$ 6.7$ 6.7$ 6.6$ 6.9$ 27.0$ 9.1$ 7.9$ 8.0$ 9.7$ 34.7$ 9.1$ 9.2$ 9.4$
Adjusting Items from above - - - - - - - - (1.8) (4.1) (4.2) (4.6) (14.7) (4.3) (4.4) (4.4)
Non-GAAP Adjusted Interest Expense 16.7$ 23.3$ 26.8$ 6.7$ 6.7$ 6.6$ 6.9$ 27.0$ 7.4$ 3.7$ 3.8$ 5.1$ 20.0$ 4.8$ 4.8$ 5.0$
Use of Non-GAAP Financial Measures: The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules,
conference calls, slide presentations, and webcasts, we may use or discuss Non-GAAP financial measures, as defined by Regulation G of the SEC. See Explanation of Non-GAAP Measures on slide 29.
36
Appendix: Regulation G Disclosure
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Non-GAAP Adjusted EBITDA
Unaudited ($ in 000's, except per share amounts)
Notes: Amounts above may not add due to rounding.
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
Fiscal 2012 Fiscal 2013 Fiscal 2014 Q1-15 Q2-15 Q3-15 Q4-15 Fiscal 2015 Q1-16 Q2-16 Q3-16 Q4-16 Fiscal 2016 Q1-17 Q2-17 Q3-17
Net income 39.4$ 35.2$ 40.0$ 20.8$ 9.4$ 20.3$ 33.8$ 84.3$ 30.8$ 15.5$ 33.1$ 49.4$ 128.7$ 51.1$ 23.7$ 38.8$
Provision (benefit) for income taxes 25.2 23.0 26.3 13.5 6.1 12.0 19.6 51.3 18.6 10.0 19.4 29.6 77.6 30.3 14.0 22.7
Interest expense, net 16.7 23.3 26.8 6.7 6.7 6.6 6.9 27.0 9.1 7.9 8.0 9.7 34.7 9.1 9.2 9.4
Depreciation 56.2 64.8 74.5 18.8 19.1 19.8 21.5 79.3 22.7 25.2 27.0 30.6 105.5 28.4 29.6 31.2
Amortization 6.5 20.7 18.3 4.1 4.1 4.1 4.4 16.7 4.8 4.7 4.5 5.4 19.4 6.2 6.1 6.2
EBITDA 144.0 167.0 185.9 64.0 45.6 62.9 86.2 258.7 86.0 63.2 92.0 124.7 366.0 125.0 82.6 108.3
Gain on sale of fixed assets (15.4) (4.7) (10.7) (1.5) (1.7) (3.1) (0.9) (7.1) (1.1) (1.0) (4.1) (3.6) (9.8) (1.4) (1.7) (5.0)
St k- as d compensation expense 7.0 9.9 12.6 3.9 3.7 3.2 3.2 13.9 4.5 4.2 3.9 4.2 16.9 5.7 5.3 4.9
Loss on debt extinguishment - - - - - - - - 16.3 - - - 16.3 - - -
Acquisition related costs - 6.8 - - - - - - - - - 0.7 0.7 - - -
Charges for settlement of wage and hour litigation - 0.5 0.6 - - - - - - - - - - - - -
Non-GAAP Adjusted EBITDA 135.5$ 179.8$ 188.4$ 66.4$ 47.6$ 63.0$ 88.5$ 265.5$ 105.7$ 66.4$ 91.9$ 126.0$ 390.0$ 129.2$ 86.2$ 108.2$
Reconciliation of Non-GAAP Adjusted EBITDA (from above) as a % of Revenue
Fiscal 2012 Fiscal 2013 Fiscal 2014 Q1-15 Q2-15 Q3-15 Q4-15 Fiscal 2015 Q1-16 Q2-16 Q3-16 Q4-16 Fiscal 2016 Q1-17 Q2-17 Q3-17
Total contract revenues 1,201.1$ 1,608.6$ 1,811.6$ 510.4$ 441.1$ 492.4$ 578.5$ 2,022.3$ 659.3$ 559.5$ 664.6$ 789.2$ 2,672.5$ 799.2$ 701.1$ 786.3$
EBITDA as a percentage of contract revenues 12.0% 10.4% 10.3% 12.5% 10.3% 12.8% 14.9% 12.8% 13.1% 11.3% 13.8% 15.8% 13.7% 15.6% 11.8% 13.8%
Non-GAAP Adjusted EBITDA as a % of contract revenues 11.3% 11.2% 10.4% 13.0% 10.8% 12.8% 15.3% 13.1% 16.0% 11.9% 13.8% 16.0% 14.6% 16.2% 12.3% 13.8%
Use of Non-GAAP Financial Measures: The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In our quarterly results releases, trend schedules,
conference calls, slide presentations, and webcasts, we may use or discuss Non-GAAP financial measures, as defined by Regulation G of the SEC. See Explanation of Non-GAAP Measures on slide 29.
Investor Presentation
May/June 2017