Dycom Industries Inc. (NYSE:DY) Q3 2021 Earnings Conference Call - Final Transcript

Nov 24, 2020 • 09:00 am ET

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Dycom Industries Inc. (NYSE:DY) Q3 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Dycom Industries, Inc. Q3 2021 Results Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

There will be a brief pause as I transition the call to your host, Mr. Steve Nielsen. Please go ahead, sir.

Executive
Steven E. Nielsen

Thank you, operator. Good morning, everyone. I'd like to thank you for attending this conference call to review our third quarter fiscal 2021 results.

Going to Slide 2. During this call, we will be referring to a slide presentation which can be found on our website's Investor Center main page. Relevant slides will be identified by number throughout our presentation. Today, we have on the call, Drew DeFerrari, our Chief Financial Officer; and Ryan Urness, our General Counsel.

Now I will turn the call over to Ryan Urness.

Executive
Ryan F. Urness

Thank you, Steve. The statements made during this call may be forward-looking in nature and are provided pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all comments reflecting our expectations, assumptions or beliefs about future events or performance that do not relate solely to historical periods.

Forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from our current projections, including those risks described in our Annual Report on Form 10-K filed March 2, 2020, and our other filings with the US Securities and Exchange Commission. We assume no obligation to update any forward-looking statements. Steve?

Executive
Steven E. Nielsen

Thanks, Ryan. Now moving to Slide 4 and a review of our third quarter results. As we review our results, please note that in our comments today and in the accompanying slides, we referenced certain non-GAAP measures. We refer you to the quarterly report section of our website for a reconciliation of these non-GAAP measures to their corresponding GAAP measures.

To begin, I want to express my sincere hope that everyone listening to this call as well as their families are healthy and safe. We are living in truly unprecedented and trying times for our country. I could not be prouder of our employees as they continue to serve our customers with real fortitude in difficult times. They have my thanks.

Now for the quarter, revenue was $810.3 million, a decrease of 8.4%. Organic revenue excluding $8.9 million of storm restoration services in the quarter declined 9.4%. As we deployed 1 gigabit wireline networks, wireless/wireline converged networks and wireless networks, this quarter reflected an increase in demand from one of our top five customers.

Gross margins were 18.7% of revenue, reflecting solid overall performance, offset in part by the continued impacts of the complexity of a large customer program. General and administrative expenses were 7.7% reflecting tight cost controls and all of these factors produced adjusted EBITDA of $92.8 million, or 11.5% of revenue and adjusted diluted earnings per share of $1.06 compared to $0.88 in the year ago quarter.

Liquidity was strong as cash