DY - Earnings call transcript Q4 2021 | Dycom Industries, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Dycom Industries Fourth Quarter Fiscal 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] I would now like to hand the conference over to your speaker today, Steve Nielsen, President and Chief Executive Officer. Thank you. sir. ahead, go Please

Steve Nielsen

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

Slide to X. Going

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

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

Ryan Urness

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

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

Steve Nielsen

Thanks, Ryan.

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

note review our measures. today we the we in in accompanying and As slides, results, that please comments our non-GAAP reference certain

the organic you measures. section safe. quarter exclude To families well express this calendar, want refer Specifically, of and quarterly a are report these XXth everyone of call included their week. in non-GAAP as growth All our week to of my week. healthy listening to website corresponding that to measures reconciliation I accordance this and our for GAAP to the revenue their begin, with as references sincere organic this hope to a XX/XX We effect additional

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

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

X.X% deployed one Adjusted As networks quarter from Adjusted revenue, of administrative year-ago expenses top converged gigabit were all and X.X%, these five of of demand of reflected cash and quarter. large of wireline impacts the was factors wireless and diluted per under margins $X.XX adjusted this $X.XX a was our increase reflecting program. adjusted an wireless/wireline were XX.X% or in $XX.X Liquidity strong and million. availability in loss customer $XXX.X produced of a customers. to we complexity networks, of credit EBITDA continued share as loss million gross the revenue the general of compared facility of X networks, our and

a notional shares $XXX X.XX similar Even over sum, million over increased only availability substantial after we debt quarter, the by meaningfully common $XXX outstanding. representing by common credit $XX.X over our X.XX% of stock debt million shares last million this increased quarter. under repurchased repurchase, quarters, million, net for during net amount reduced Finally, In we have just during the by our of stock facility four outstanding. and reduced the notional

million repurchase authorized share repurchases. Board newly authorization been in exhausted, has has recent most our our $XXX As share

wirelessly single active and high-capacity pandemic, meaningfully recently revenue the and well appetite to increasing supported network view from deployments, the fiber the businesses, belief increasingly enabling to opportunities. has broaden we industry to capital sections Today, streams significantly participants of augurs designed single rural Industry completed and be for America. are have significant both case of set a auction using upgrading is in Now crucial Access XG participants become consumers investment. can network fiber to at provision networks networks X businesses some investment the and are our subsidy. speeds believe network generally especially constructing the going wireline directly more X. or deploy RDOF stated the in wireline wide of that dramatically deliver continues participation of in the to rural participants telecommunications individual COVID-XX least time the or high-capacity services FCC to networks technologies. country. of a most The the appears effectively for effort multiple that private fiber increased This be by their to either to high-capacity to that industry than These Slide society gigabit major and broad expected cost across to consumers FCC

with We and management, opportunities increasing fulfillment geographical networks underground have services recently program These for the are emerging construction has and increased areas incentives. network engineering multiple country include are numerous deployment to wireless/wireline and design, initiated order markedly. being broad entirely are deployments. gigabit wired aerial, provided wireless whom, deployments who planning, customers, These will in customers X across providing as of as elements rural societal new including well deployments America well as networks. respond consisting services shortly who as and as customers participants broad to network Fiber flow deployments in converged resume multiuse industry fiber

services manage the procurement Customers effects execution processes. Overall, particular our service our authorities municipal business, to focus SMB of scale on the term, financial and on dislocations and uncertainty the and see us and effects integrated permitting the provide continue construction focused customer remain design, pandemic to we and well to industry and and some position possible their environment on consumer macroeconomic customers. continue creditworthiness. the strength planning, several macroeconomic influence We may participants. as effects inspection valuable with of overall pandemic be confidence overall Near to of continue on to maintenance some We and engineering general confident plans. that deliver the in uncertainty to

X. to Slide Moving

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

quarter have was of organically. customer. excluding largest our revenue million. revenue XX.X% XX.X% of $XXX.X Revenue of was customer XX.X% organically. all $XXX.X was top of other the was from produced third $XX Comcast our customer. finally, customers Windstream Our our million second of This was increased Windstream revenue, Verizon decreasing customers, all AT&T total AT&T at eighth $XXX.X million. Lumen was largest other And Comcast X.X% while organically. or in at was at XX.X% largest from million customer fourth or grown fifth of Dycom's $XXX.X or revenue five the customers, five of XX.X% or our million XX.X% or revenue. customers grew XX.X% top is combined largest our aggregate, revenue. organically, customer consecutive XX.X% where largest revenue.

In note, digits increased fact, by electrical has our construction last year-over-year. the business XXX% This quarters. $XX.X Of total grown customers was double revenue. utilities million with from of the activity revenue two fiber of quarter organically in X.X% these organically or each

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

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

October assessment end is versus this fourth $X.XX backlog, next billion. going The the months. as communications by reflects offset was XXXX in of majority significant same resulting Backlog part completed increasing of of a new $X.XXX the our at regarding across we billion quarter be expected across services the to of Of of of increase components the at the $X.X further well awards and in billion billion XX in and Now pace AT&T, adjustments covered expanding quarter, X. approximately number our $X.XXX another of reprioritization business. the the to Slide program. program approximately a from the as awards, the of backlog a significant end From expected renewals extensions our rescoping of customers, and received component large

First, and extension locating Georgia construction Georgia and North for construction second, and Carolina, maintenance in for Kentucky, services Alabama, South wireless agreements extension for South Georgia; finally, services a Alabama expansion in Alabama, extensions North in Carolina, Kentucky, Kentucky, and services and Tennessee, Florida; Florida; five-year in scope Carolina, and South Tennessee, third, an California. expansions Carolina, Carolina,

Massachusetts, Comcast, and Pennsylvania, Maryland, in Michigan, Delaware Georgia. engineering agreements For

For Florida. New in and agreements York and construction From agreement in agreements maintenance and Connecticut Charter, Frontier, in Ohio. construction maintenance Florida, construction and a

in agreement construction Maryland and XX,XXX. a Maryland to and locating agreements increased and Verizon, renewal quarter and Virginia, customers various Texas Headcount during the For in New in for Jersey.

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

Drew DeFerrari

Thanks, Steve, good and morning, everyone.

Adjusted reflecting several The tax variance by and points to midpoint QX increased points, was XX performance by included including customer due range week basis for fiscal expectations 'XX. program, X. operations related basis points Slide increased QX were in million in large revenue EBITDA points additional costs customers. expectations. revenue to of tax 'XX X.X%. income 'XX. compared of performance-based lower recent approximately margins organic from $XX.X X% Gross filings. our Contract Going benefits in or week to This XX/XX non-GAAP but administrative rate at from expense and were year. for adjusted $XXX.X higher reflected of G&A approximately million XX of part pressure 'XX margins the $XX.X below effective improved offset points a revenues QX compensation, basis X.X% was were XX%, other or basis the in incremental QX Company's an million part QX QX our within XX.X% XXX the to to compared 'XX. quarter, revenue basis of tax Non-GAAP gross of of approximately declined for XX offset QX XX

compared be Non-GAAP EBITDA, loss The higher For lower we the QX to resulted from share 'XX planning rate share XX%. interest expense. QX adjusted estimate purposes tax in effective the a $X.XX of per after-tax and $X.XX benefits adjusted per will in 'XX. for net was net income improvement fiscal depreciation lower non-GAAP of XXXX, loss approximately

to going Slide X. Now

sheet remains strong. and balance financial position Our

our for QX, common share During of of shares price $XXX market stock open million. the repurchased per in we at an $XX.XX X,XXX,XXX average

has XXXX. of million new Board through Our approved Directors repurchases authorization a share $XXX of August for

we ended Over amount outstanding. of net quarter principal the million. of million $XXX loans convertible with cash and equivalents, term the notes revolver past $XXX.X million borrowings, We reduced and notional have debt $XXX.X million $XX.X by $XX.X of four million quarters, of

at reflecting of robust large million, from were $XXX.X operating working and million XXX cash combined As of DSOs the prudent strong was cash management. to year-to-date Cash liquidity of a QX, flows net and of our program. impact assets days, The our flow earnings bringing conversion at receivable from $XXX.X strong at customer capital accounts was to operations $XXX.X million. contract

the were $XX.X expenditures proceeds, improvement Capital QX, program million. and fiscal metric expect of CapEx the declines. in impact in million XXXX We of disposal as DSO was large during customer gross this $XX.X net

CapEx net million to to range we expect maintain we XXXX, continue liquidity. year fiscal to from strong to In summary, strong ahead balance Looking a $XXX million. $XXX and sheet

XX. to Going Slide

our As the quarter we ahead XXXX, many impacted expect winter look adverse regions fiscal the to first of be by to results weather of conditions the experienced in we country.

line could these from to unpredictable to affect The XX, is in XXXX Company January the revenues expects For to ending the flows to in quarter achieve XXXX, and and operating modestly a lower results its range sequentially on of the range of COVID-XX financial ended X, adjusted the believes ability as financial from as to line Company May the EBITDA revenues impact modestly and quarter condition results. cash compared its pandemic non-GAAP percentage expected to contract higher. contract uncertain,

to back Now, call I will turn the Steve.

Steve Nielsen

Drew. Thanks

Moving our XX. significant capitalized experienced to strengths. we a Slide economy, activity Within on and award strong challenged

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

encouraged our with are business. in breadth We the emerging

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

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

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

we operator, the for Now call will questions. open

Operator

question & Thompson, comes Thalhimer Adam [Operator Davis from Company. with First Instructions]

Your open. line is

Adam Thalhimer

the I'm better morning Steve, guidance coming customer large program why end? is this getting that the biggest is is bit margin not the the question little now a QX towards

Steve Nielsen

Well, -- we're I has out And certainly there are in working was markets through talked not good associated a as his collections. not working comments, can. we Drew it as costs through what to and think February get and And about that's closing trying with through, month. as weather quickly -- we're been

Adam Thalhimer

And the what's highest CapEx way is then, between four because in CapEx at year-over-year Okay. about in correlation revenue and the up level 'XX your and years.

revenue the curious terms just in we how should timing of of So read that growth?

Steve Nielsen

'XX. had Well, we clearly in CapEx tightly managed fiscal

grow opportunities number a of have have to new the booked and business We business.

like opportunities those support so, we past. have invest And in the to we'll just

Adam Thalhimer

prepared order comment your mentioned quite that an that. not? didn't or comments, you catch I from just increase then flow. Steve, a RDOF in large Was And

Steve Nielsen

won't say is I lot on to industry we customer, of exactly the would there tell fiber focus you that Well, But Adam. what home. a just

So Frontier, you have AT&T's well who territories Ziply, from as Frontier the as Northwest rural. acquired announcements,

in quarter rural for miles who's home last about for up, we're a And the home. And as then X,XXX fiber X,XXX to of example, the orders for fiber holding completed of an we customer the starting miles to so just large really with them. just over just customers,

right of just So, activity there's a lot beginning now.

Operator

Thank you.

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

is open. line Your

Alex Rygiel

the us that calendar Drew, and pace improvement better improve for us? you're the quantify help possibly you you mentioned it of DSOs Can understand hopeful to that that in year.

Steve Nielsen

Well, go Drew. ahead,

Drew DeFerrari

about by the in Yes. remarks, Alex, customer talked large the was I as it impacted program.

if would think to bit of better. impact for a control the was it year-over-year. certainly, little as we you expect that decline, I kind that, all the other large But of up get program

Steve Nielsen

just Alex, to that. think, I to And add

to that invested pace program adding So, at the as near declines, the rate base we on the that not we're were.

the balances down through work through way And collection issues, work the as so, we expect our year. as we we to come the

Alex Rygiel

those And look projects of declines in does line time so the what pace the those to completion? for coming

Steve Nielsen

would progress. get a all say, It's and real large We'd times. that's expect to to talk anymore. later, rather sooner we be year, We'd not This call commit working be able be of going on not a able I a but So than program it precision. complex. like make number been just this we're and evolved to it like to is to We're have to to to hard. more about

Alex Rygiel

with you've lastly, do the to telcos? then and to capabilities? America purely they activities? in have of traditional Or are to number looking coming all a types into How they capital And new outsource made compare of favorable the construction internal marketplace. private here Do of customers regards comments rural sort opportunities these

Steve Nielsen

a That's question, Yes. great Alex.

little bit we're that talk the electrical for a let's So about work utilities. doing

to organically business, not year-over-year. rural new serving $XX over to just they're up was those new XXX% are clients quarter, the that the So And million but in last typically, America.

they the will ownership they outsource to that planning in behind opportunities hopeful poles, sets the we're to telecommunications construction. current be don't have they skill but their have the have and right And maintain that the engineering, away, maintenance typically networks. access businesses, because there so, And of they follow

Operator

Our Thielman next Davidson. with Brent question comes D.A. from

open. Your line is

Brent Thielman

this be past numbers? to Steve, get like But FCC does take it's can was in really typically around experience, moving it I the curious obviously, a really more auction. something we see just mean, looking impactful going your I think little long business. I where customers the your RDOF just it to for context to in for how

Steve Nielsen

closed. -- of the process it Brent, or the it's interesting, Well, that some at least completely recipients isn't appears that

where things working own instances, recipients working some Act So, number are or CARES year's the have we of people through, stimulus. in either their still a but last instances, are there's under received in that capital, that been for, on they funding some

RDOF is auction, to what talked not they directly I the of of the on the year. getting of think so, people out underway larger not And confident based quarter where scope from going the feel that's and in half done about of they're in the second increasingly necessarily comments Clearly, scale who their build. the yet, came about in we saw the the acceleration think programs look part but funded some because some if they I you the public of at and participants, that

Brent Thielman

helpful. that's That's come some to hang-up guess work I there's Okay. And lot activity, the Do move there past, the front? the more up level recently. we early-stage of think been challenges going more here to awards back industry, through to that stuff have through. you've the of on a as then, it and like deployment seems picking in I discussion obviously, Has others to permitting, you about progress talked you around all wanted local remain that XXXX? order to got a

Steve Nielsen

So extent couple Brent, would start-ups, a that that who's existing large different To you in it those somewhat have always there really existing existing somebody customers to in franchises, have that an have programs footprint are to they're think for the afresh. are of starting about ways. but from challenges the

getting to So process existing started in they or a customer it to and as a quicker I'm example, cable attach lot in that aerial secure don't an I process get I a franchise. where than last a have franchise already fiber the simple owns, to deploying to the to if of an have that's cable if the poles can rights area

the the owners. nature building pole for actually a comments, talked electric of case are the that that the already So of business that awards we're utilities, we in already I people in geography in think look serve. our if generally, you they're at in Or they these about

got These closely it's monitoring be it's going think I to ever easy. that a to little We've developments, big undertakings. I be So but different. bit that are not would say

The now closely fiber thing so that, delivery the gear right would we're for there as is of OEMs, I they and are up tell monitoring manufacturing other lot good capacity. you more and orders a intervals

Brent Thielman

Right.

Okay. around obviously quarter, you have value share the see last yourselves. I last ask the to one lot big just this repo guess of a in

been as pretty much in out a on now? I take M&A in that as statement, don't front. entities the there see yourself right much quiet you see as Can You've you as other deal

Steve Nielsen

We have fund for year value we a the Well, we -- I always We we're own if said, of shareholders. to that's look and awards that than always because a M&A growth you look that those organic we capability, And we've to times. think best leverage. way were I'd much after to to of want we the nature as below of didn't share rather great net I reducing two number had those of at But going for strategic versus somebody that got awards. make create get them, number the piece sure a repurchases. think

Operator

Our Wells next Luebchow with Fargo. question from comes Eric

open. Your line is

Eric Luebchow

Great.

Verizon, So to the a upside. auction. customers, Steve, surprise two billion of C-band your of the largest Verizon, maybe spent AT&T us, And to at little bit close a just to with and $XX

balance near you seen to impact as from need their any pushing they focus of of capital or out on have deleveraging projects So kind sheet them in terms of the their term? reprioritizing in some clearly

Steve Nielsen

auction this as big not sure last would started you Eric, generally impact fall although spending big be probably anybody last and summer wireless auction, that there have clearly a fall. talking knew in the has about how I'm been think I an we

got opportunities new new industry. requires I to the created it, once -- they've of of the new It sites. spectrum close sites. requires think That got it. existing always has equipment work I installation the customers deploy as the buy new They've through auction, our for they think at actual

to it's a characteristics, propagation more and cell the densification. site sites for going need Given create

to hand, been value encouraged the in we're on we create sure pay conviction have So that to they I'm because they happy have get order the deployed. pay would it's to more one but less, got to know

Eric Luebchow

sense. Makes Got Yes. it.

for Just one me. more

related somewhat to it's So RDOF.

for you've for in Charter just So areas. engaged your customers. of who's rural capital broadband wondering large such -- additional that obviously top addition program time? that of your a kind and build-out some them of one announced $X opportunity kind you And additional if see But haven't of them in customers with been to had a billion Comcast, recently top in they been for one

Steve Nielsen

Yes, the not that would individual say opportunities, provided that results Eric, Charter generally we is any the about we're and by I were on market really the to comment customer going encouraged RDOF interesting. current information but

billion the a original FCC to So XX as subsidy from RDOF $XX auction supplied over the years. about had be

then was first expected coming another billion The billion to $X $XX auction there's along. require

at auction actually which private The saw capital how $X billion, cleared rural value much in first indicates the assets.

about committing XXXX, others round subsidy XX%, a that stimulus while of is we to in $X under extent it Charter from the those for RDOF, long $X you And for Charter to $X.X there the were every they're about receipts receive administration subsidy, the FCC disclosed about is but of to, so of the subsequent is broadband It's participated receiving Obama of kind they rounds. and from billion number, total I highlighted, And Company time, that XX% clarity $X.X the first million point rural one to the as never spending in program think data it, of of XX% was spend in. the amazing Charter's don't will that we call a that encouraging. we of under FCC. followed $X that have for that alone Kind me it, mind billion, have a willing only for had who

Operator

Thank you.

question from with comes Stifel. next Noelle Our Dilts

Your open. line is

Noelle Dilts

of sort we kind of base you the question. a just quarter? share on the into think first Could the how share I comment forward moving timing about fourth the quarter housekeeping in First, of repurchase the should had and

Steve Nielsen

tender. as done said, buyback. any Yes. use We accelerated an other open was provide did Drew it anything not color via No, Drew? do market. we're not We did going than, to not

Drew DeFerrari

of share we're diluted estimating shares. planning then, count fiscal Yes. for in 'XX, QX XX.X And for purposes Noelle, the million diluted just

Noelle Dilts

as time, start we then for And long talked It really idea move base, that's we're to of I past toward margins you customer consistent more historical get up your there. to Steve, starting spending like peaks. we've sort that this start see see feels and know of about pick could out a to Great. Okay. when

back first you and large of as of keep relative program, sort what we weather completion do you So plus to been the can you've calendar that kind get the quarter this Or in there customer year? in the margins of were think the XX% sort history? in we seeing and you is pass changed that were that impact anything we XXXX to seeing and should mind of closer XXXX to XX% plus in

Steve Nielsen

Yes.

So question guidance, surprisingly, your that are things interesting. think couple Noel, but a providing not of that are there we're I highlights not

for five less of top this first than our represented example, is customers in revenue. quarter So years many XX% the that total

seeing in breadth customer So base. we the are

about fiber, If a for you of quarter utilities you Ziply, if the for number look revenue. aggregate customers was Frontier, to and at services of or fact that electric other X.X% the

customer, So been would if aggregated we them. fifth largest have our

side. think other wireless you once at -- and footprint XXXX, where the have in the guidance, from it with guarantees on wireline expanded not in AT&T providing if but and mind, XXXX today, has look was the is I actually here, and geographically again, no it the we're that thing we both to keep

particular So to clearly, in customer than we there potential there the done, got with We've get to that but past. in the business job was is have execute. the more

Operator

Thank you.

from next Vertical Jon Our Group. with Lopez comes question

Your open. is line

Jon Lopez

two. had I

of is a Steve. I first, clarification, sort guess, The

In uptick You more around to want about the make uptick was flow? mentioned also or nice resulted these the events? in nice a other order order had flow you order guess hear that backlog. are had the nice or what of there commentary flow and is, in backlog backlog? sort flow in a and pretty order like there's was was Or a in a just and I thing words, little you separate there uptick some I

Steve Nielsen

Happy to clarify. Jon. Sure,

existing expansion is or holding. So contracts extension backlog the we're of way. think new about initiation this or The flow contracts. of Order is it what

that material where the is have So we connections get to customer. have have and have actual things. locations order identified those placed, have we are this forth for we with specific work in, quantities electronic back contracts we'll those orders our we we numbers, we backlog. the that receive, But provide to services the have have underneath where locations, get And which cable we we

Jon Lopez

Understood.

otherwise, back more My just of a to benefits just I the I had to suppose months changed cutover? that sort say, timing has for two. second anything, large come one, my program, the just phase re-scoping Okay. call one you've expected then question I ago, between six, guess in to or perspective, either customer I this maybe the to nine -- and from you question to ago, around wanted couple shift I now, like phase used way. in of or a the obviously, let's want the some from of my ask some months re-scoping, confidence And I and my sensed suppose guess there's the been complications. question little you, I timing what

Steve Nielsen

under just large arrangement. then that about arrangement program and subsequent initial we've customer Jon, be clear, to only the talked Well,

have a over was they're it has periods of right to large been that it I And build where in particular that going evident the of this where the is or to at which to So least not it's doing at or Street example busy the -- the started of on times one one, this We're there the this Jon, a by is construct still program. somewhat kind in work that we we at time think I been would pace phase think of back. would did large Wall been two, slow program that's think have you, least way elongation and And program XXXX. very where phase there say I the give What is fiber customer that is, seems and customer about program. that today. And commentary period program we a ultimately for is customer now. and

Jon Lopez

I got That you. I got helps. you.

their make which down that the I'm of within might I But or you sort digits utilities, said plus apologize, for revenue. of I and bucket, that underneath you rough like there one you're I can become And how you last just of dealing give eventually, repeat to very wondering, activities fiber -- bucket, mid-single with of us know, electric customers the one is them earlier. three I guess is Sorry, any sort this something your there? type material don't feel contributors, let's contributors? like a for, many say, one, on two potential single-digit low or for own,

Steve Nielsen

early seeing what little they're often But now geographically, would say, one what is utilities. one Jon, but I it's don't overlap adjacent to it's individual They dozens tell. another to another. of a we're

And if together consortiums you funding times, bid the their and worked have have programs pulled to built. that RDOF, at together they and secure managed on to are so where there to look particularly were

customer single-digit. that that it co-ops a significant. low portion even any unlikely be it's So electrical single a But might if or be would they all would eight or if aggregate you one that together, state have a six substantial of serve

Operator

Thank you.

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

line Your is open.

Alan Mitrani

cables? questions. Just give I Drew, the did Did between you a split miss of couple telco that? and

Drew DeFerrari

Alan, Yes, answer that. I'll

X.X%. electrical was was cable at XX.X%, that at work was telco XX.X%, other So facility X.X% is locating and and

Alan Mitrani

capacity worry is that Great. your making money spending Or do Is like your almost at finicky, in has out? been about forecast -- Charter. unnamed of can up goes Is and consistent from of some we also, I couple this last one-off? customer to quarters, very more there's this think you that what not And seems there than -- filling program the customer a more I spending all. a is it it of

Steve Nielsen

hard is as there how in right there -- is it's Alan, the earlier fiber understate to on generally, home to much now. call, interest think the said I we

the think you change that or number markets, AT&T if the large transactions of the as about of been like about rural in think or strategic operators has talked well have rural about as Frontier. So programs made that you control program the investments significant

is least valuable. is is at And this coalescing my view around so sense that and important stuff the it's the industry that

been they're comfortable now it they has been its that with or they've up customer won't ago. customers years more than mean doesn't seven and today years, at strategies. that for or business period that my case, a or that But for So sheer have rethink and speculation go the four time as it in of -- three operating particular eight might is down been obviously

Alan Mitrani

you do that business percent quarter, wireless of the revenue this what have was Also, the Okay. the was?

Steve Nielsen

Yes, it Alan. was about X.X%,

percentage, on as revenue. sequentially a So was quarter, down a little from slightly last up bit

Alan Mitrani

connecting much? And pretty contracts start months next start to of into the not you you spectrum learned? more And they can lot away. do a want then be we, or customer XX And that out as in mean lastly, they of get a with I you've that as deal problem Okay. not that going How fact -- had for bid and do lot the do through, how spectrum boat working customer working the all you're a on on while you'll with shareholders, how similar it contracts bought? them we to letting what and forever, it's the a that differently? with have

Steve Nielsen

learned, I is have about we programs programs. what sometimes to always but another earn that as customer. I say we've talk we account for return a And learn work we create take Alan, think challenging that capabilities know but customer, don't typically that learned, through exactly into what publicly oftentimes what going we for we're we'd

more systems, been, we'll just of be and So as business talent, challenging better hasn't a been It a more as focus, we've of it. lot fun. better that created because program has

Alan Mitrani

over to And on years. in and he's he Tim good if the the next endeavors. to best just if -- was get work Okay. him his call, It I know his wanted wish thank all him to then for still

Steve Nielsen

call, appreciated. And on last be will his will call. much which his next he Well, be

Alan Mitrani

Thank you.

Operator

from question follow-up next Riley. B. is Our with Alex Rygiel Instructions] [Operator

Your open. line is

Alex Rygiel

invested heavily Steve, 'XXs, utilities the in telecom. developing this into electric How different? is cycle

Steve Nielsen

not the something it's typically what's clearly this I upgraded. around technology In poles, fiber it's this they case, of around interested people data this using investment by particular Alex, long is And in. had ago. telco XX that networks this the do years I technology briefly are cable that lines. pretty that is a ago, own may home, settled, GPON, think to comfortable bit traditional could competition have There utilities. that over there's particularly limited TV and into been and different was electric utilities. they they recall investing power rural a about They time little is been were where time

Operator

Thank you.

Our from KeyBanc next comes Markets. with question Eastman Capital Sean

Your line is open.

Alex Dwyer

Alex Sean. for on is This

today productivity currently labor we be job by around? adapted off this Just get helpful. on start sit people I'll So thoughts move site lines operating the the environment front any from a tougher asking wave of site, perspective? as COVID. with the Or first compared to Is would on how to it

Steve Nielsen

Sure, a good question.

a would business, curve And the we country. that looks you and for So the tell the inside in I like saw curve track Company track we we our incidents positives. lot the

January, of have COVID. we declined but of last there over people periods month, And clearly, in the XXX over cases that employees where were so of time XXX impact quarantined or the because had were

mirror, to more So, broadly be for ago. and outlook, other impact to be and to could the six better weeks we're got we variants that it's is were we an looking Waiting but in available business attention in encouraged down. but we're things at the pay than happy vaccine the rearview coming today this change the to. become Obviously, it still

Alex Dwyer

from a the perspective the would Got are is industry potential else broader the you that anything highlight? then for legislative broadband, administration specifically? the from impact this it. implications, you Is what new macro rural aside from there And one? Or could primary tracking

Steve Nielsen

in rural in potential come discussions gone Congress out has been of for of about lots there's and bills. broadband. Well, It and subsidies

the amounts at because substantial the that, this we're have attention of point, paying attracted. of guess, them. to private But probably think just auction RDOF appears outcome encouraged that more capital I So to by I we're

incremental, get would would top we're that on the we And based thinking of so business. the not just that anything way about to be

Operator

you. Thank

is question follow-up with Our the next from Noelle Dilts Stifel.

Your line is open.

Noelle Dilts

sort you way see addressable should Is basic different business? look Thank doing you materially there is bill? for content construction thinking there the is of much suburban a this becomes role a the start covered, fewer from more should about that I work, apologize. But of a in part to content disruptions. bigger are more of you. obviously, thinking as that we when a be This a be the at but might rural so way question, there's or But a there what we addressable you about obstacles distance

Steve Nielsen

Sure, Noelle. Good question.

and you much the less sell So been of to will how expected less be they They about they small point also talked would they're more -- of part aerial typically, I talked investment in of plant money a And because bill some locations there's terms that rural That varied poles, require. more going that's idea to an RDOF There's announced disclosure you'll think on side rural. I blend of a how speculation a about suburban many some probably telephone just and of They've congested. that recipients, by Charter's you I of see company consolidated think more kind to would There's number serve. some they're been on disclosures. room less would the take. miles funded other of private give and that investor-owned equity. by in there.

places So to be those look. two would the

Operator

Thank you.

Thompson, Company. Our Adam Davis next with follow-up comes from Thalhimer &

open. is line Your

Steve Nielsen

questions? Operator, other have have we Adam. any don't Do we

Adam Thalhimer

a your Steve, specific couple down lot the up a to help 'XX? were year. see that. Is lot customers. in in a on flat with can half, get about if for think full I good which wanted half, Starting back a telegraphed I the of they the Lumen, for flat expectation first Sorry you

Steve Nielsen

we're Adam, again, providing not guidance. Well,

of comments respect with the about that some deployment they into they're II Lumen, they've commitments had fiber-to-the-home that think the their their that the extremely year balance would deploying to this how And resources disciplined committed they supporting to to rotate II that CAF public provided fiber-to-the-home that as also CAF They're program. through commentary, their they're calendar they capital. they've strategy. look commented some through work have I been

in careful encouraged to deploy return. to a disciplined. They're that it gets think Well, are they committed general, capital I they make they're where it. good extremely So in sure

Adam Thalhimer

with Okay. Or maintenance do that level? do large kind -- maintenance growth kind maintenance think work. East level? do the know does to And we follow-on of what a large program program Coast of do I go you the then is I $XXX work the million Verizon of there some that comes out? versus kind from of you How gives as

Steve Nielsen

-- Look, Adam, getting large heavily on on that with the cash. focused the would I collecting we're a -- closing program markets, customer say

have us now, on to that just like We're too that much growth business other FIOS for on the of program. them. the I stretch think collections. for a that. like under But that's focus in there's there will continue long is. right we'd industry more to to be period program and the programs plenty opportunities focus focused other time, And early the as with clearly, the But broadly. of grow clearly, where closeout And opportunities it's

Operator

time. currently I'm And no call showing this like back the closing over for remarks. further at Nielsen turn questions to I'd Steve to

Steve Nielsen

forward and speaking of Well, the to the at we you to attention everybody's on end time call, you. we May. appreciate Thank and look

Operator

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

now may You disconnect.

Dycom Industries (DY) 3 Mar 212021 Q4 Earnings call transcript