DY - Earnings call transcript Q3 2021 | Dycom Industries, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Dycom Industries Inc. Q3 2021 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker 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. Nielsen. Steven sir. ahead, go Please

Steven Nielsen

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

X. Slide Going to

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

Now, over I to Ryan turn the will call Urness.

Ryan Urness

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

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

Steven Nielsen

Ryan. Thanks,

to results. X our moving review third a of Now, Slide and quarter

families hope and I call, everyone this website that of As you refer are to reconciliation to listening in note review a to we measures we our today non-GAAP sincere results, their corresponding section measures. We the our in safe. well To and these non-GAAP referenced that healthy of comments our for please the as report as want measures. certain their express my accompanying GAAP begin, slides, to quarterly

to not my our trying times. our living have truly difficult They serve as be continue customers thanks. in they I could We and times real with in of our employees fortitude prouder are for unprecedented country.

restoration of excluding quarter services Organic Now quarter, a decrease X.X%. of million million, the $X.X declined for X.X%. $XXX.X storm revenue in revenue was the

reflected and X facility continued million, in revenue $X.XX reflecting networks, networks, Liquidity from customers. revenue liquidity to or complexity part $XX.X these and of represents cost we of quarter one was performance, reflecting wireless/wireline was share tight increase diluted impacts per an a under of adjusted gigabit customer cash this were of program. five of level controls, availability overall ago year million; earnings large all networks, EBITDA the and the General solid As demand XX.X% in converged offset $XXX.X highest XX.X% this margins top expenses ever. by quarter. credit deployed and the wireline produced Gross were of strong our and administrative of wireless $X.XX adjusted amount of our factors compared of in as our X.X%

declined in reducing reduction significant debt a net made $XXX Finally, leverage progress million we as over the of just during to four net quarters. $XXX the last quarter in notional million, $XXX.X million

to wireline provision sections consumers Now major directly businesses, constructing country. technologies. These designed network of individual are networks across to wirelessly going industry wireline are the networks using XG and X Slide Today, participants or significant upgrading broad generally or X. gigabit speeds to either

appears work-from-home, to of crucial continues COVID-XX capacity increased the underway a some auction of has and set meaningfully FCC dramatically the in of single single high recently the we opportunities rural that time network learning for have reflects from network appetite This RDOF investment. streams to fiber the to effort and fiber deploy a require telemedicine, most participants to networks high industry their in forward increasing revenue and currently we belief both, multiple applications high-capacity deliver cost-effectively telecommunications as the to that be of other The needs newly our rural increasingly distance deployments essential enabling to fiber calendar capacity stated especially to view can industry look XXXX. businesses, broaden pandemic, Access services America. that become investment. the Additional society view believe consumers

activity program aerial, with underground for fulfillment to deployments. wireless/wireline deployments, wired and as customers, multiuse new provided appear societal are design, well incentives. of increasing. contemplating and consisting being who resumption rural respond planning, well opportunities metropolitan participants fiber services the to include of network as elements, Potential across fiber are country services to be customers converged engineering aspirations in networks. current initiate including We deployments wireless to management, and increasing as deployment deployments, These is and with broad as the entirely dozens industry of providing in are whom These gigabit construction broad several network X customers networks areas stated as America emerging

uncertainty continue with construction Our small ability in valuable us the consumer on some provide and and is We our engineering authorities and macroeconomic and and the overall potential design, business, infections. services planning, maintenance we and and the possible permitting focus service remain medium effects to their and may macroeconomic of customer to business Customers procurement some confidence and to the of confident general in Near-term, focused on to that on environment overall due customers. effects see well influence of to value integrated increase on position deliver the nationwide creditworthiness. the particular Overall, to plans. effects our several and our industry uncertainty as dislocations participants. COVID-XX the impact particular inspection recent financial to pandemic strength be continue of municipal manage limitations pandemic processes, business scale

well. pandemic X. effects Slide COVID-XX the the overall performed on of Despite the economy, to we Moving

top customers, quarter, During from of revenue X.X%. five demand increased we experienced one our the organic decreased

our other Dycom's at at was customer revenue, total $XXX.X at of $XX our just X% XX.X% combined excluding customer quarter customer XX.X% or revenue. all revenue customers our than organically. customer in our customers quarter, consecutive was Our other was of largest XX.X% Windstream aggregate, revenue was top customers or all Revenue the was largest as formerly finally, $XX.X approaching revenue Of revenue. five of second increased largest fifth revenue. customers in five revenue; is produced organically. from electric million. construction and And customer. X.X% third largest top grew Comcast exceeded Windstream fiber the CenturyLink total the less largest note, fourth Lumen, of seventh XX.X% organically. of of million million. where or grown XX.X% This utilities have of AT&T or $XXX.X from million Comcast XX.X%, million, X% from or was of $XXX.X Verizon $XXX.X was known organically, our XX.X% while revenue decreasing million

We management and planning services. and our expanded reach have extended geographic our program network

long-term fact, must wireline, wireless/wireline we trend networks value our In as operations X direct over business, increase network meaningfully a of be those converged increased outside our of the extended have years, we last and a maintenance and maintained. deployments amount and of believe dramatically gigabit will which the several that deployment parallel plant

the to billion. Backlog quarter, and the $X.XXX at the same backlog, expected quarter $X backlog of billion assessment component in decline Slide is regarding of The expected be largely completed large X. of of end the XXXX going the components quarter, program and of reflects to third pace another approximately declining during the re-scoping of months. program. versus the was Of XX next a end Now this of July the reprioritization approximately the $X.XXX billion $X.XXX further this communications at billion in our

Rural for for maintenance For AT&T, Georgia Services Headcount and AT&T Fiber Also Florida. were Ohio, services in Indiana, agreement Minnesota, and Alabama, Mississippi. awarded we allocating in in the Tennessee, Construction quarter XX,XXX. Kentucky, project & Oklahoma, increased service Frontier during from agreements Services and to York agreements Georgia New Tennessee Engineering

contracts resulted of of in $XXX These to our we quarter, incorporated of in executed bookings our subsequent will the that million excess booking In third quarter addition, fourth be backlog. the end in calculation.

and to over call for the Drew outlook. review turn will I his financial Now,

Drew DeFerrari

and everyone. good morning, Steve Thanks,

point to of asset revenues $X.X in was XX.X% X.X% performed or capital QX for top were to in Storm Adjusted was several quarter, were whose X. XX customers expectations to front 'XX. for this Going services midpoint; reflecting improvement XX.X% our margins year, impacts of QX increased improvements the 'XX. program, basis customer were points revenue the calendar expenditures margins weighted compared half QX to sales, quarter. depreciation large income in XX Non-GAAP income million, was of none higher towards work for QX expense $XX.X $XXX.X including in 'XX 'XX, compared points and QX 'XX. expense, reflected the points million basis by were across revenue, from part Gross approximately and QX $X.XX performed part basis from the improved other G&A the million, to customers. by XXX the offset basis a increase declined XXX resulted QX our variance adjusted compared tax 'XX. at adjusted $X.XX higher from and Compared expense. from lower in and interest 'XX. EPS EBITDA below over EBITDA, for gross Slide QX higher offset organic in in Contract QX The

to going Now Slide X.

position financial solid. and sheet remains balance Our

outstanding. have term principal net solid million was QX included a in equivalents, decline past $XX.X reduction of with of the of Over by $XXX.X $XX in amount the of $XXX.X this million quarter revolver reduced four million million and free quarters, and notes convertible ended flow. from million notional We borrowings, $XX cash we cash debt million, $XXX.X loans,

was our from cash CapEx our net of net at operating million combined QX, proceeds were and capital and receivable accounts disposal from $XXX.X was QX $X.X were DSOs in million. was during 'XX. of assets year-to-date operations to bringing liquidity strong $XXX.X with was expenditures flows prudent which gross flow XXX working As at Cash million. at of line The management. days, $XXX.X million, robust contract Capital million QX, $X.X

fiscal $XX $XX maintain strong reduction $XX summary, a from liquidity. to is In year expect we to we prior continue million range strong full balance the and XXXX, million, sheet from net million outlook. a CapEx which our For to

to XX. Going Slide

it's to XXXX. company the the expected impact year, expects modestly modestly higher lower from For QX to cash XXXX, an that compared XX-week company financial revenues additional the company's operating to which COVID-XX could of results. week these results, it's fiscal margins in-line range XX-week achieve financial operations affect with to and of as pandemic flows believes contract to ability due includes the is QX unpredictable The condition and uncertain, on

Now, the Steve. call I to back will turn

Steven Nielsen

Thanks, Drew.

to experienced strengths. our XX. Moving challenged capitalized and Within solid Slide we activity end economy, market on significant a

foremost, our markets. maintained presence strong throughout we and First customer

portion us evolving of home customer connections. to to Cable well these deployments are share Our a the to allowed as many enable expand build companies and operators are to market speeds consumer to deployments technologies business. in maintenance opportunities underway businesses Fiber fiber enabling new the are and deploying Telephone provisioned medium regions usage consolidating wireless chains, and the for are Customers are in has of of growing, are country. capacity anticipation forefront high-speed to and small opportunities of deploying of gigabit extensive the be presence increased at opportunities. our as increasing process. X sales is value new data particularly are long-term industry fiber market being upstream. consumers and the Dramatically Deployments growth supply operations creating underway. enterprises,

integrated In we providing increasingly construction converged wireless/wireline procurement wired planning, engineering and addition, for services and networks. of design, and maintenance are

As continue we major spending capital our pandemic, to our that the are industry customers with COVID-XX encouraged committed contend and nation initiatives. multiyear to remain

management and the times. in the the employees We strategies, as prospects company, we team our are for navigate our challenging dedicated our of capabilities experience of confident our

Now, the operator, open for will questions. call we

Operator

Instructions] question first Adam comes Thompson with Thalhimer Davis. Our from you. Thank [Operator

now is line open. Your

Adam Thalhimer

Hey. Good morning, Steven and Drew.

Steven Nielsen

morning, Good Adam.

Drew DeFerrari

morning. Good

Adam Thalhimer

the renewals on represents million backlog. kind just is I've So a $XXX there the I'm this couple gotten that weeks of larger if And curious, programs or that the number? maybe if is pushed some got just in morning biggest question of

Steven Nielsen

on you readout it call, give renewals. quarter So that subsequent to but incremental backlog on that I in obviously we'll the next was [ph] Adam, mean, this the full

on an So, certainly calculation. respect with impact to it had particular, months the the in XX next

Adam Thalhimer

might and kind guess tell about to bidding related how environment what Steve, to that out then, And backlog? year-end relate of I there the you can that Okay. us

Steven Nielsen

little say pandemic. has we we're have future. there slowly of a year of impacts -- have to I talk hope this more and in of there. out the with we're think the encouraged bit what has generally plenty the would proceeded the more I seeing opportunity processes There -- But about because think it I been have

Adam Thalhimer

wanted curious $XX quarter; revenue might like where so million I million [ph] customer be also more think question, customer All right. million how about I'm in $XX incumbents then And six; And -- the this react? number last was to was the peak revenue in for last might I going? a up from that quarter, am from ask quarter. curious that customer it I $X then,

Steven Nielsen

Yes. that they're as see that guess, is, resumption some we're of appearing comments Adam, -- say there those deployments, increasing the the would I clearly broad we to are customers appear said -- what that we I in activity are with be current clearly encouraged customers. and that contemplating

just not others. there are customer, is it's -- So that there

think, I with developments we're around to home. So the in fiber general, encouraged

Adam Thalhimer

Good, Steve. over. I'll turn you. it Thank

Operator

Thank you.

comes from question DA next Our Thielman Davidson. Brent with

Your line is open. now

Brent Thielman

Hey. Great, ought else of kind line year; outlook? ahead the I and about you've drop understand a Steve last steep some there be comment margins quarters. Steve considering pretty Good we of that in on still the anything thanks. the in in implies in from what morning, or quarter qualitative Maybe couple is seasonality just outlook, been from but to there Drew. slightly fourth last doing

Steven Nielsen

Sure.

you to to So taking quarters if view history sure two anything so that outlook. part January about; that right the we're weren't last that look of I make as the has we home had at in -- they think, want our

seeing we would thing that number so impacted. goes, I and limitations but encouraged knows of that we therapeutics, and this to at we're make that hope indirectly related COVID-XX we're now impact more employees by consideration just we're but but quarter. pandemic I given on the record that the the corner turning number the or just who we seeing and say, not looking business directly are right there, that reflect are think sure the how vaccine the want business, cases other this we're around or We of much the where

Brent Thielman

it. Got

curious seen the with some issues business a quickly. -- of then, slowness you've in the more little a that's I'm municipal processes the there approval -- right inroads And evolve much at permitting now? having how key just of level; local at the effect Okay. on level,

Steven Nielsen

Sure.

in has there to have infections, in the we're think digital are analog geographically; the don't near-term been evolution unlike Hard I things to that outlook. can one to done -- just I reflecting processes call the recently, year-long out think a person. then last in be just up, flare the think online than almost from I particular very summer the over that so the initial a anything rather almost. two in number of say, to and distributed flare that the broadly year, gone that

Brent Thielman

you'd Okay. I be. down any to on just updated And is thoughts ability the above there know work DSOs them to for where here, still like me

on Just curious thoughts your there?

Steven Nielsen

million a very, what operating the In October up at were you customer than encouraged working Yes, million. it trailing know, you is, the $XXX able capital get $XX think to we're quarters, I look I the large quarter, if say look, a of flow. current call little four the we better cash in down, program would tied

to normal levels back all working the the continue capital. get of So hard to to we'll across year next over I think work more

Brent Thielman

Thank you. Okay, great.

Operator

Thank you.

Eastman from with comes Sean KeyBanc Capital. question next Our

is open. line Your now

Sean Eastman

taking I'm on for to in there? your the my a little you the the curious, under what's backlog adjustment color just thanks estimates questions. around happening team, hood provide Hi quarter? in Could more

Steven Nielsen

Sean, So we've talked large customer around priorities two and talking longer, it's and now seems been years program. but evolution been we've about objectives a about the that

the program of component. the third in of the communications assess that were estimates methodologies those use that's Backlogs received adjustments run new we then on component reprioritization we a quarter new got There triggered. the realizability another based And so where to the component not the one and the left what for scope to of communications a on it and And some backlog. the And some backlog. the that us affected caused it. estimate with quarter, of really there's prior just us number assess are estimate, we in currently that comfortable the rates

Sean Eastman

trajectory message the strong around around look expanding and And Okay, how at very you. trying what look remaining in commentary I qualitative mean, I to the is relative to the business, quarter just the think, opportunities. firm this the I’m growth backlog got higher just level.

So, how if trajectory really two put just the be over looking year that is two help you level, try a could and how next helpful. from growth the understand high those understand or things together, us just to would Steve? to

Steven Nielsen

this I prior and covered Shawn, think calls. we've in Yes,

So XX So we take XX% months methodology, to of the given a XX% the backlog, number take quarter from subject trailing of agreements, times the backward that service in master those revenue any we that's looking are typically calculation estimate. the come right? months it's where remaining, and revenue, to

period there couple calculation pick that backlog. of year not cause So does revalue. to in down we're year, customers, the you time and when even reflected that the long a backlog activity And up in fully term, that this near same have will did that like we be way, be down may quarter sequentially get as term where a over will

And, So, period broadly as think From profile of always the to and company. a quarter, would is scale the might consistent subject backlog say, to then the timing. happened October, the of awards year, subsequent of year, in I we time the an in it a of with to have different different quarter very and got intermediate it's long I over growth the a well quarter that number. to they been and have company non-pandemic the end

So there's issues. always timing

Sean Eastman

next can operating how the leverage the in. about assuming one think grow curious I year, after, If about the just I'm one in think you enough. last guys you fair Okay, year do sneak business. how should we

initiatives about recently some I think recently the cost some this time, But measures, same operating accelerated. a environment at year. cuts efficiency and strange being about talked clearly, you've

operating discussion? would the trying pulling So, the be business that leverage about in to together, just think helpful

Steven Nielsen

Yes, Shawn.

across customers, operating respect programs. we that of now think, number that's broadly are when looking an helpful comments, said, we growth for expand And we I growth we're footprint, distributed in have customers always we've when we that's talked that the as inside as we to good have have established a leverage, operating think working I leverage. get with that's about

that's helpful leverage. operating And so

the I the out think the about customer pull about this other large thing you your program, if this think of impact that of to comment year; business.

is before, think, a little And average encouraging. As in on is year. the a that commented looking I this gone having as better business, given that's forward all than we've foundation

got to a happen. you we an base outlook. make no Now, guarantees, ahead we're financial and strong hard encouraging know, looking from work But it to

Sean Eastman

Helpful. time. Thanks very much for the

Operator

Thank you.

Our next question Fargo. Eric Wells from comes with Luebchow

is now line Your open.

Eric Luebchow

Thanks for talk taking generally revenue, the this next upgrade year and going business and you quarter, to and the you then the business that, but opportunities percent as wireless recorded the question. cycle. does of about you rate, wireless can XG the Steve, front-haul, a of growth whether kind looking out wireless gets for have applications? wire-line with into see growing backhaul, I backlog support fiber, And believe which seen of related

Steven Nielsen

Sure.

with So wireless, quarter. to slower it a respect was

me represented about. keep it straight, Drew, So

Drew DeFerrari

Just over X%.

Steven Nielsen

the C-band about the Eric, incorporate call, availability of cycles. spectrum And they auction, the into that X% carriers with planning over that, we their are I August to think trying Just on business. of think all I talked commence shortly, the new

term always new of spectrum. deployed, intermediate that So long as We've example, deploying spectrum FirstNet for wireless by period got has good. growth, AT&T. a that's of to great business a certainly had been function The

that to continue think XG, And lots that seeing deployments, just small respect preparation. see we fiber with I of cell I deployments. think then So we're to

cells continued support commitment more spectrum. think, will deploying small XG I to that

recently we I anything know don't that that. so new And on have

Eric Luebchow

And that. for on the one in see side, guess just pick up nice cable Comcast more the me, then to I for thanks Great, quarter.

Thanks. related of duplex requires pretty with full of fiber cable which terms good network And from pipeline forward of you players look a other in notable I the DOCSIS, them believe kind below doing trends have paths of upgrade as any spend. You from then more here? any Comcast kind

Steven Nielsen

growth are best the clearly really amazing. about just on So traffic it's continue the network cable the all I thinking to operators provision way think, and to

year gigabytes data a over like I of something calendar XX%, actually up was is call under that upstream rate consumer I've month, think latest the up just average year. was growth traffic, which XXX this seen which it the year, took about highest XX%

it's the growing our so creating operators think additional companies. phone just and of extended quarter And subscriber high operators great thinking or all they're the nodes more I through or is are Everybody cable spectrum was duplex for speed that capability. splits connections. whether It

cable and operators fact, I tier. about read up was week was. conference XX% one took offered offered of was service one signing speed people think smaller In at a when that I just it they of said last gig the

I all So, around the business. is think of helpful that cable

the see capability is of pass development other that is helpful are is number with underway, the auction also also. have we'll the homes as about to cable going high think that's and all RDOF I operators networks, forward that talking that they expanding

Eric Luebchow

Thanks, Steve.

Operator

Thank you.

Alex with Our Riley. next Rygiel B. question from comes

now line Your is open.

Alex Rygiel

Thank you. Good morning, Steven and Drew.

New the quarter the mix backlog $XXX What total the and backlog? next close between that million. of was XX awards after months were

Steven Nielsen

in Alex, that's the awards got process. I we mean, part our normal quarterly analytic of just

the know they total were we renewals. So value,

imagine So some duration. divided you that can estimated by

it, the And a of portion good rest business. aligned book of so but with the not they're of

Alex Rygiel

ask down before MSA or of Thanksgiving up of a of as day two to ago? exactly or maybe know, is another year way. your sort Do in the flat versus, today, that think Just sort you question you backlog

Steven Nielsen

have Alex, know, would say You that that good. front of is show to activity in the me don't analytics I I been

think about year opportunities that we've a I slower, I said the little things that an I think pandemic. encouraged that's we're effect just get we're think been to of seeing, bit has concluded, the this

the with not So, but in to don't answer with I'm we we I'd mean, I feel that -- sure business. I the opportunities any like could comfortable rigor.

Alex Rygiel

historical processes. of your year new the important of into decision investment, experiences, their of when how the consider resumption sort is the lot a customers calendar from of flip And

Steven Nielsen

move process for that And and or get of So starting visibility initiations, then we then these work consideration to through in often very right once first quarter, approval, historically with December. beginning for starts now strongly fourth concludes the a again, are, some they they get the large the as large companies, typically week speaking of for the where the budget begin around they first got normally strategies there strategies year. gathering I impact would that that it you initiate they weather, other But year ready or and have as fact months phase couple can those they the next resume what in and got that you holidays, new you've things of half a call of get execute for year. back and budget the midsummer go the be year you

Alex Rygiel

Thank you. Helpful.

Operator

Thank you.

question Our Stifel. next comes from Dilts with Noelle

Your open. now line is

Noelle Dilts

Thanks, hope healthy. and are all morning, good you staying

first question, if So of or wanted reflective just reduction that's touch there's sort how I'm about levels curious expectations. your to in the CapEx on my assets? to thinking a if current in the you're more how I just over about term, utilizing of and Thanks. thinking $XX activity million medium shift previous you're relative your

Steven Nielsen

Drew. ahead. Go

Drew DeFerrari

Yes, Noelle.

date, So $XX just spent under to million. year we've

a is little been less than the obviously had we running. in quarter, bit so And

new looked as So some replacements on awards we're nothing there. as other so and We've that spending we well, unusual out, QX. normal got the some

Noelle Dilts

the large early back then, XXXX. about of program. calendar XX%, Earlier to And circling in Okay. being that complete by you talked customer kind your year,

seen the some the you're of you're big curious one here now. You we've how kind that like we've into challenging phase thinking I feel how know, from to shifting you it's us theme profitable more about margin And, kind But, phase talked quarters, because the right that are bit of about a more you two, is guidance. numbers, the and in that's update over curious, just see a if improvement progressing? past hard few to on an little give can Thanks. that of see evidence tougher in

Steven Nielsen

to whole that we markets talked the complete the geographic to don't the Yes, add lot being of with that next calendar we think early year. arrangement about XX% a with I initial respect have in substantially

still continue. trajectory. I what month will well. It that think or program But lot add This but it's said know that think I beyond to essentially before, a And I on re through that. prioritizations no, number we that be and may has probably gone of with have two, on to that, a evolutions. we're whole track a we've don't

Noelle Dilts

thank Okay, you.

Operator

Our Lopez from next comes Jon question [Operator Instructions] Vertical. with

Your line open. is

Jon Lopez

you. Hey, morning. Thank good

the backlog, to kind of is, it apologize, times. if in circle the from question your way, period can low back expect So down at does what I you’ve I digits. quarter, to which to if to okay, we business inform because this know want ask take that's still calendar all the the after add to the wanted But came talked fiscal this in XXX And backlog. and back 'XX? single the I that current we I And perspective, as 'XX, it's that from couple us we

Steven Nielsen

most business timing, the the So and don't so renewals, Jon, company right, said track scale to today, from tends two, that those in get and to That's occasional earlier being the backlog overall obviously, last long term, impact the like generally, business, we around the than the we and renewals, important, look as because of via but the new to changes all not over short renewal correlated quarter, don't other time the what subject could in to said, specifically customer of renewal. three, four next to highly backlog it's quarters, we you intermediate it's business. indicative term, that if the and with quarter from It's quarter. the

Jon Lopez

helpful. Got I quick other could. Two follow-up, if you,

making you or activity within outlook? guys you assumptions The the in is, first general about do are storm any one fiscal QX make

Steven Nielsen

forecast Communications networks is we hard less one, say, don't. that's out are storms can't It it. call so generally you by always impacted why work. we And electrical storm the and Jon, systems.

just we storm And as it X just it work, all, so because not we well. can't always think forecast our organic the forecasted We growth it possible. about

Jon Lopez

didn't wondering step a I'm that's if like back. my the take No, from over, quarter one no. Steve, but assumption. we last if know The just spilled one that the Yes. anything current I was last just into had

have, a going of We there's on. stuff bunch

participate. have figuring possible they headwinds it's I So that if this sorts or XG, level or whether work combination you of out there's to out either XXXX? of as around to look is events acting do want also perhaps do you you you activities your RDOF; mentioned C-band, possible into suppose question some customers that's assuming business? Perhaps initial as as think what those out CBRS, we it of I'm kind want temporarily amount also are implementation the planning people high is, that my around those, unwinds to there's

Steven Nielsen

think spectrum like you provision when it I period. specifically I wireless, available, multi-year event on and earlier we quarter, additional carriers over that's have the a call and last respect that a said Well, influence spectrum an the Jon, can way talked it with capacity this and capability about auction to

who particularly monies be efficient. will want And point that, period I of the figure just programs, future? a a some but we only than don't thinking spectrum that lot move advantage of other others auction, long or some some do think new again, had valuable a industry current of it. going the in to more reprioritize, there be for so a I at programs way in there's me at could it where deploy have on that slowing business to they're to we the I spectrum add done of time can and people but time because I out bought the wireless, available into re-insist near that available today what I if think coming do out that's address impact be people dynamic do follow the they sometimes have think to it, and clearly and And capacity pointed it's something with who to I take to that do as the they to past attract that's budgets through, that always around

You today, coming process. planning along part there's be of that spend next don't know, should new a program the quarter it if

be I to So an think there sure. that, could element

Jon Lopez

I Got helpful. you, a very Thanks lot, appreciate it.

Operator

Thank you.

question with next Our Sylvan from Alan comes Asset Management. Mitrani

Your line is now open.

Alan Mitrani

with and balance M&A you want do regarding leverage? thoughts of in Where comfortability Hi, to quarter and you generated stock of last buybacks, that free talk year. your you the cash most that? you've and and where yours and got slowest your you quarters you're seems are about talks your see the the haven't terms sheet into thanks. going in Steve, Can four

Steven Nielsen

Yes.

flow. spring we put cash an it work flow on place everybody maintained were free that across encouraging enterprise. discipline quarters things through the have and last that balance operating mean, of So the I been people year. is there of the four to a this due Alan, has into lot on that And cash hard of

because So sat first and It here just foremost, make happen. folks. thanks we happen, all to it headquarters those in and didn't

an areas. the seem ticked is we of said, we we pretty some us as below It's the be have available. depends leverage to customers to consider which enterprise that will And, like to quarter, look grow. that that available to a on what's contemplating continue think, that we're thought somewhere us always use two business highest in in and always in discipline operated repurchases. down is we've the gives last on that to we think always what And the is grow and growth, same optionality I to opportunistic of this I that approach. are have. with encouraged that we the Clearly, the us from do, organic opportunities capital share good best available use for perspective Then at scale with an what's we'll target M&A returns the versus

Alan Mitrani

that maintained wasn't you. are fact could And better like and so? your Okay, It's increases is you certain the that in place as maybe or year appreciate put DSOs. so business a it next efforts doing you the in And in be also shrinking. also business there the thank that just place you're on put processes I think little that you've the sounds from that. answer, it

Steven Nielsen

quarters Yes, way a at I more look a payable fresh accounts we we to couple think and move took industry the about a managed it ago; talked timeframe. we standard

so use We business run G&A of new any do we've units, we've controls around our to have around way things other put the been, turns, carrying so inventory also contractors processes for that less place tight that to we're of working across activity. given increasing and sure And better we're make in think that had in that business. we're the get management, right, cost inventory we we could I level

Alan Mitrani

stuff. the XX fruition levels you of coming Do densification some cell small on that's at next impact broad half? pervasive the to some of an year, XG businesses least to some really a basis? think, in cable and Do of had also, know, to seen As the of little years more the we to think customers the these speeds, upgrade of your And putting on go see a cable from Okay. you happens? you back I low revenues haven't customers, and year becomes and XG a

Steven Nielsen

mean, certainly Alan it's I possible.

what year, growth earlier, I the to industry is has subscriber had said cable this pretty traffic. substantial in great point think I been we upstream there's would more growth which

have some forward. so And going means invest we to they create about what networks their folks and think talking opportunities for and that where are that

Alan Mitrani

Okay, thank you.

Operator

you. Thank

next from Adam question Thalhimer Thompson with Our Davis. comes

Your line open. is now

Adam Thalhimer

level I the So, some moving thanks. commentary. Verizon of to wanted ask the Steve, in pieces within about high backlog 'XX considering

Steven Nielsen

year this we're point, going any I mean, next not guidance Adam just 'XX. to fiscal provide calendar at for

we're not point, that. just this at to Just position in do a

Adam Thalhimer

an you I timing think wanted do for question. construction actual do RDOF for you -- ask is What What to the think of that? Steve,

Steven Nielsen

So question. a great Adams, that's

depends winners on it So are. the who

winners, auctions coming they of the entrants year that's in as So their start to as using funding that that visibility the I the capital who extent who the from could think own government. there'll are next we the are, some who be of winners possible deployments. about were anticipation to new have early part thinking ongoing, the Certainly

I states, they're think And, see quarter, I and to we they'll we'll know, you some it couple money for Cares get working to successful, mentioned this the Act actually a continued we're using rural actually started. that extent probably if on last are, they companies quarter, continue. think are RDOF, in

Adam Thalhimer

did just Okay. outlook impact how the Steve? lastly, And QX then much COVID

Steven Nielsen

on know, kind cases reported it's country. seen day, fashion what not that. in the across the -- every hard they've I just of to speculate to they've of tell we ticked and surprisingly, similar track You that we've up Adam, a would just number you

be need be of we as the so to And to just cognizant -- about that you we outlook. know, we think need

Adam Thalhimer

thanks. Okay,

Operator

Thank you.

next Sylvan Our from Mitrani with Alan Asset Management. Lake question comes

line Your now open. is

Alan Mitrani

the government Hi, in coming board it across and coming wage that like are is inflation I seems going other in wanted or contracts then, ask you're putting in you especially bidding more inflation many enough between all in commodities to making just when it in. back, of sure And inflation a to seeing about be about a seeing – with And lower new little try get you cushion areas. the in How period sorry. being competitive lock work wage prices? [ph], with in from to are sorry this perspective? or that competitors some now? from may to maybe And so year a you're a

Steven Nielsen

something mean It's I have Yes. at not industry thoughts our seen Adam, trying that competitive we we're a you evaluate line to level. seen about. time tell spend thinking the the a of any lot a for not and pronounced trend wages typical look, probably people's that high folks, in I in we we've trends would year. throughout

Alan Mitrani

Thanks.

Operator

remarks. now you. to turn showing call to the would for Steve like Instructions] questions at over further not I'm any [Operator back I Thank time. this Nielsen closing

Steven Nielsen

we thank week. Well, think we holiday Okay. everybody has Drew go, one And other item. I before this

Drew DeFerrari

at was and the through X.X%, at split. at locating XX%, run XX%, cable X.X%. customer Telco just facility was electrical was was other and I'll Yes.

Steven Nielsen

Okay.

a So everybody's make Thank Thanksgiving. on get there, you. but call. to we just want for and wish sure that thanks attention time And the out safe we you all

Operator

you concludes participating. this Ladies today's and Thank gentlemen, for call. conference

You may now disconnect.

Dycom Industries (DY) 24 Nov 202021 Q3 Earnings call transcript