Dycom Industries (DY) 8-K Results of Operations and Financial Condition

1st Quarter Presentation

November 23, 2010

1

Participants

Steven E. Nielsen
President & Chief Executive Officer

Tim Estes
Chief Operating Officer

H. Andrew DeFerrari
Chief Financial Officer

Richard B. Vilsoet
General Counsel

2

Forward-Looking Statements and Non-
GAAP Information

Forward-Looking Statements and Non-
GAAP Information

Fiscal 2010 first quarter results are unaudited. 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 2011 second quarter. The
words “believe,” “expect,” “anticipate,” “estimate,” “intend,” “forecast,” “may,” “should,”
“could,” “project,” “outlook,” and similar expressions, including statements regarding
backlog, 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 31, 2010, 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 13
and 14 of this presentation.

3

Q1-2011 Overview

nContract revenue of $261.6 million increased 1.0% year-over-year in
Q1-11

nFirst organic growth since Q4-08

nQ1-11 results of $0.18per share

nStrong liquidity at October 30, 2010

nRepurchased over 3.5 million shares for $34.2 million during the period
August 27, 2010 through November 22, 2010

nAcquired Communication Services, Inc. (“CSI”) on November 19, 2010

4

Share Repurchase Recap

Fiscal Year	Amount	Shares	Average price paid
Fiscal 2006	$186,221,173	8,763,451	$21.25
Fiscal 2008	25,159,123	1,693,500	$14.86
Fiscal 2009	2,914,806	450,000	$6.48
Fiscal 2010	4,488,655	475,602	$9.44
Fiscal 2011 (thru 11/22/10)	34,239,112	3,531,400	$9.70
Total	$253,022,869	14,913,953	$16.97

Over $250 million returned to shareholders

5

Revenue Summary

nTop 5 customers represented 62.0% of
revenue in Q1-11 and 65.5% of
revenue in Q1-10.

nContract revenue from non-Top 5
customers increased by 11.2%, the
fastest rate of growth since Q4 of fiscal
2006.

nOverall revenue trends continue to
improve in Q1-11. Revenue grew
organically for the first time since Q4 of
fiscal 2008.

nExcluding Verizon, all other customers
combined grew 8.9% in Q1-11.

* For comparison purposes, CenturyLink includes combined revenues from CenturyTel, Inc. and Embarq Corporation for each period presented.

Note:See “Regulation G Disclosure” slide 13 for a reconciliation of GAAP to Non-GAAP financial measures.

**Organic revenue change excludes revenue from storm restoration work in Q3-09, Q2-09 and Q1-09 and excludes the impact of an additional week in Q4-10 to adjust for our 52/53
week fiscal calendar.

6

Backlog and Employees

Current Awards and Extensions

Customers	Area	Description	Approximate Term (in years)
nAT&T	Georgia, Kentucky, North Carolina	Construction and maintenance services	3
nComcast	Maryland	Network upgrade	1
nDukeNet	North Carolina	Fiber to the cell site	1
nVarious	New Mexico, North Carolina, Tennessee, Virginia, and Wyoming	Rural fiber deployment	1-2

7

Opportunities Update

	Potential Customers	Grants	Total Including Recipient Match
Opportunities excluding projects related to data centers, libraries, computer/broadband training, mapping and projects outside the lower 48 states	334	$6.076 billion	$7.117 billion
Actively targeted opportunities	177	$4.397 billion	$5.199 billion

nBroadband Initiatives Program (BIP)

nBroadband Technology Opportunities Program (BTOP)

nTotal Federal Government Funding - $6.9 billion ($7.2 billion originally allocated)

Note:The information included above has been compiled from publicly available data.The Company is not responsible for the accuracy of, or updates to, this information.

8

Summary Results

Fully Diluted EPS - Non-GAAP
Q1-10	Q1-11
$0.15	$0.18

Note:See “Regulation G Disclosure” slide 14 for a reconciliation of GAAP to Non-GAAP financial measures.

1.0%

9

Selected Financial Information

(a)See “Regulation G Disclosure” slide 14 for a reconciliation of GAAP to Non-GAAP financial measures.

(b)Amounts may not foot due to rounding.

	Q1-11	Q1-10	Change (b)
($ in millions)
Contract Revenues	$261.6	$259.1	$2.5	§Year-over-year revenue increase of 1.0%
Cost of Earned Revenues - Non- GAAP (a)	$209.3 80.0%	$208.0 80.3%	$1.4 (0.2)%	§Cost of earned revenues as a percentage of revenue improved as a result of improved labor efficiency and safety claim experience, partially offset by the impact of increased materials, increased prices of gasoline, and $0.5 million for a legal settlementduring Q1-11
General & Administrative	$22.8 8.7%	$23.5 9.1%	$0.7 (0.3)%	§G&A decline from reduced payroll and professional fees
Depreciation & Amortization	$15.6 6.0%	$15.2 5.9%	$0.4 0.1%	§Depreciation and interest expense up slightly
Interest expense	$3.7 1.4%	$3.5 1.4%	$0.2 -
Other Income, Net	$1.8 0.7%	$1.1 0.4%	$0.7 0.2%	§Other income, net increased as more assets were sold and favorable prices received
Effective income tax rate - Non-GAAP (a)	43.3%	42.4%	0.9%

10

Cash Flow and Liquidity

nSolid operating cash flows during the
quarter

nCombined days sales outstanding on
trade receivables and net unbilled
revenues were 62 days in Q1-11 (a)

nCapital expenditures, net of disposals at
$11.4 million

nOver 3.2 million shares repurchased for
approximately $31.0 million during the
quarter at an average price of $9.58 per
share

nDebt less cash was approximately $55
million at the end of Q1-11

(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.

11

Summary

nClear indications of an improving environment

nNotable contract awards

nAt the forefront of evolving industry opportunities including
those generated by rural broadband stimulus funding

nEncouraged by deployment of new technologies to
consumers and businesses by cable operators

nResponding to an increasing number of industry
participants for wireless backhaul services

12

Looking Ahead

nNormal seasonal operating patterns and organic growth drive revenue

nImproving organic growth and new project opportunities enable ongoing
assessments of our portfolio of businesses and contracts

nContinued solid and growing cash flows dedicated to accretive
acquisition opportunities and share repurchases as valuation and
projected returns direct

nConfidence that trends will be improving for a sustained period
supporting patience with respect to individual quarterly results

Q2 - 2011:

nRevenues which grow slightly year over year

nMargins which improve year over year

nApproximately breakeven earnings per share due to seasonal effects

13

Appendix: Regulation G Disclosure

Amounts may not foot due to rounding.

(a) 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. The Non-GAAP adjustments in Q3-09, Q2-09, and Q1-09 also
reflect storm restoration revenues recognized during those periods.

(b)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.

14

Appendix: Regulation G Disclosure

1st Quarter Presentation

November 23, 2010