DY - Earnings call transcript Q1 2022 | Dycom Industries, Inc.

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Operator

Good day and thank you for standing by. Welcome to the Dycom Industries, Inc. Q1 2022 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator Executive to I Steve conference Chief would Instructions] hand Nielsen, now and today, [Operator speaker like the your over President, Officer. to go Please ahead.

Steve Nielsen

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

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

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

Ryan Urness

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

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

Steve Nielsen

Ryan. Thanks,

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

our sincere express employees have difficult who to begin, measures over fortitude website We in you for XX to our results, that we in non-GAAP please their these our our report real with our certain accompanying To As months. note GAAP last quarterly of measures. the reconciliation section thanks to customers times reference in refer I today review to want measures. comments slides, my we a corresponding served the the non-GAAP of and

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

As increase one-gigabit all the compared adjusted XX.X% networks, the the in reflecting adjusted quarter. year-over-year impacts other wireline and of wireline the Liquidity year $XXX.X effects first revenue of continued large and Gross half winter our $XX.X converged program, large reflected wireless or of was factors of General million operating expenses wireless of demand per an networks of two in customers. deployed share of declines complexity produced and and flow a quarter weather X.X%, customer to administrative with ago of were $X.XX the five and per of of we were from million. $XX.X these of margins customers, quarter. strong $X.XX X.X% was revenue, at share earnings EBITDA revenue, loss networks and this in the cash top million,

in $XXX the credit during million company of our quarter, extended better Finally, XXXX, and issued due XXXX. notes forward to X.X% facility April the we two performance. transactions senior in These resized look financed as solidly leave April we and through

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

Fiber have are management, new fiber and as provided industry areas as networks. program incentives. consisting have customers include services rural of to providing across participants These broad are numerous deployments, resumed geographic We wireless/wireline country deployment customers elements, These and who design, well networks converged one-gigabit planning, are in well and opportunities to underground, respond emerging customers, aerial increasing and including construction the deployments. being deployments deployments. as network for as in fulfillment network initiated engineering who multi-use entirely broad as wireless multiple wired America societal services

of provide short for some demand in construction, participants. We industry cable customer the and delivery increases effects several maintenance intermediate-term. planning, Broad continue in related engineering impact to integrated execution Macroeconomic near-term design, plans. fiber procurement the equipment potential times and to to and services supply constraints influence and may optic may lead and

they well for factors, remain is to confident country, valuable persist. financial and that conditions It new be Despite unskilled/semi-skilled broad our some to In geographically hires. to our will we market in for service the us remains will position tightening labor seen customers. deliver these be scale particularly addition, the these and how strength regions how of long

Moving quarter, to revenue to Slide organic the X; during XX.X%. decreased

was increased two other XX.X% customers is XX% organically. finally, for XX.X%. quarter $XX.X of with where revenue, top customer our And Windstream increased Our All consecutive customers. quarter. with This was fifth Comcast largest customer. or all XX.X% revenue our Windstream million five of This customers XX.X% XX.X% other produce our total combined revenue. ninth organically. the AT&T was was growth was top grew with or AT&T July organic our our decreasing of Lumen of or top Comcast excluding have grown of XXXX X.X% million. in or aggregate, customer our was revenue Verizon million Revenue revenue. five million our XX.X% $XX.X second-largest from $XXX.X largest $XXX.X Demand of customer Dycom's at XX% grew or revenue. customers, of the since from AT&T first quarterly organically. X.X% customers was organically. was largest five fourth third our and of organically of million. customer largest revenue $XX.X

quarter In was organically XX.X% total years. utilities growth customers construction fact, X.X% the organic revenue. million revenue least with note, at from This in rate is highest activity nine the fiber XX.X% of these growth in electric rate year-over-year. the increased or $XX Of

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

and of the of business, it a trend years, network that maintained. our we this maintenance wireless/wireline operations outside last the our extended this deployment levels amount of over is meaningfully networks long-term fully believe at fact, and of In implemented, an wireline continue overall basis, those several that we value parallel as on implement fourth a it customer initiative construction deployments for one-gigabit currently representing dramatically of to perform Despite ongoing must during and our well less in-source of although contracts we expect industry which and trend, them will number converged this activity. calendar other revenue we under for than suppliers. direct increased new have increase lower are After that customer and by maintenance in by plant the be provided had services other notified quarter X% were the to decision working work They to recently decided portion as of currently of the as several this us, markets XXXX. expect a appears

end the of at months. quarter, of versus X. the reflects Backlog solid new end approximately million. first expected was work this Slide Now, approximately January going the performance backlog, $X.XXX be work. to XXXX billion renewed completed $X.XXX Backlog first during activity at quarter billion decreasing as to the we quarter $XXX is the the and Of $X.XX next existing billion in XX booked

substantial continue a broad array across future to of anticipate customers. our We opportunities

For fiber Arkansas, and Kentucky, Various Georgia, Arizona, Utilities, Mississippi, Missouri, agreements Tennessee, Carolina. Electric construction North Indiana, a in Oklahoma,

and Ziply in maintenance construction agreements and Washington, For Oregon, Fiber, Idaho.

and a XX,XXX. during South to Wisconsin, From Carolina, like Alabama, New fulfillment Hampshire. agreement Communications North Frontier, Consolidated quarter Nevada, in For for covering Charter, Carolina, increased New agreement agreement California, our Connecticut, services and construction Massachusetts, Montana, in Washington, the locating Georgia. Headcount York, services

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

Drew DeFerrari

everyone. Steve, good morning Thanks, and

well QX X. higher net 'XX. country $X.XX was other after conditions $XX.X expense first the XXX quarter. of for per EBITDA compared Margins XX.X%. to QX interest 'XX. lower and administrative or Going large million program, compensation, income as were stock-based margin decreased increased to during The and and Contract and to adjusted winter gains compared $X.XX from from in revenue organic revenues impact were loss of points, was of decline regions basis 'XX, This the adverse customer in QX large on QX also asset net the Gross Adjusted 'XX. for Slide lower declined experienced $XXX.X tax depreciation, share resulted revenue of margins adjusted Non-GAAP as points the offset customers per many impacted pressure in from sales. reflecting share XXX other revenue. by QX declines half EBITDA, expense, million, variance in by weather of in G&A the higher costs. X.X% from and QX decrease resulted the basis XX.X% a were

going Now, to Slide X.

strong. remained Our financial position

have reduced by debt notional Over the past we four million. net $XXX.X quarters,

through million $XXX senior at We million quarter $XXX unsecured repay of revolver borrowings, and to million used we eight-year our the April borrowings, of of equivalents repaid $XX.X of notes our loan XXXX. ended resized million were end and notes amount term issued notes, X.X% million XXXX, credit of principal of extended is term $XXX.X facility million due be $XX.X $XX.X $XXX revolver QX, senior Cash convertible During $XXX unsecured we with million and convertible borrowings, we and due million the senior XXXX. no of April and QX; notes. to loan, expected September

of opportunistic prioritizes context repurchases range Our by share of capital the allocation growth, M&A, our historical followed leverage. and organic net within

strong to million, sheet. and we QX, our a of liquidity at As $XXX.X maintain balance strong continue was

net totaled remained sequentially the cash for The to and Capital Going to expected the of the Capital to $XX.X the midpoint was DSOs assets from million. QX net combined $XXX flows from Slide at strong to disposals CapEx during prior medium-term proceeds were days, contract expenditures $XX expenditures, of 'XX. reflects million fiscal accounts improvement as gross $XX.X X XX; supply deferral in net to of reduction range operating of are quarter. of XXXX million and million $XXX midpoint constraints. A were manufacturer This of million. days million QX compared an $XX.X short disposal receivable outlook. XXX and have when

and XXXX, XXXX, as expects non-GAAP for in contract modestly to company the revenues XX; XXXX. contract decrease as QX to Slide to expects revenues from the line of to to QX EBITDA lower percentage adjusted compared QX Going a compared range to

a from year. year-over-year margin We have XXX half are of and basis calendar declines of of expect revenue the pressure the points large to for other from in program this large customer customers gross expected spending approximately first lower that impact

$X.X adjusted of approximately on million components convertible $X.X for as amortization discount million debt listed, during expect interest non-GAAP expense for million the We notes of as well expense approximately interest $X.X of QX. the the total for

the effective $XX.X and income of approximately million. diluted tax rate expect We XX%, non-GAAP shares of

Now, I will call back Steve. turn the to

Steve Nielsen

Drew. Thanks,

a on strengths. and Moving activity capitalized economy, recovering solid to XX; experienced within Slide significant our we

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

with in the emerging encouraged our breadth are We business.

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

the from number COVID-XX encouraged As to capital a spending that committed our multi-year initiatives. are customers growing and recover our remain industry we pandemic, of nation

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

questions. will we call operator, Now open for the

Operator

question Markets. first Eastman of Our Instructions] Capital Sean [Operator the line comes KeyBanc from from

line now Your open. is

Sean Eastman

on could just how customer Good deployment, near-term taking that questions. curious, on and Thanks morning, potentially you're on Steve constraints and front Drew. activity the chain to phasing. start for is supply these my something to I'm Steve? that chain wanted a since topic be I something you're kind have And impact just comments to out in days? a seeing exactly monitoring, get big do need the or it's what supply of, in trying we slowdown today of,

Steve Nielsen

I a So, big think it topic. Sean, is

so if I saw more think, little as little That's not new growth times the in inputs the the the that could far We've seen trajectory be way we is programs unusual. of that other business bit years faster see it available. probably a We customers in the business. a were that in ago. XX kickoff

see of in think all in It's little the upturn freely inputs a it's much -- obviously that also it's industry. but ways, And better so, how where counter some demand I be the intuitive. in it's available, can indicative just we would

Sean Eastman

that points for of margins. mean, margin why quarter, having -- program how quarter, how looks on pronounced third to from even more the I is basis that the that it the And XXX from It in quarter, impact second Steve. would really can indication program? fourth just guidance year-over-year color lower thanks. get perspective? the directionally, gross mean, challenged And you some much challenged some would a customer terms be drag if be is year-over-year Okay, us of such give of year-over-year a into helpful, still helpful I

Steve Nielsen

Drew. ahead, Go

Drew DeFerrari

Sean. Sure. Thanks,

that there, impact we spending around component several So, points. less and yes, about program, of talked be first appear as basis in we half year, about the anticipate were large that that the XXX is we -- there customers we've so about to well. at and a the talked comments, customer few had year-over-year in things in some also the absorption There as of

Steve Nielsen

closeout with Sean, associated And There more day goes a completing costs got the a customer we to think, and of large associated with we're of this a markets. by, it through activity are that to through is smaller chopping respect with got on the lots on part that's chopped through I to business. program, make but effect smaller we the And one. just path There every look, that. get we're much it. it's business,

Sean Eastman

points mean, on I how just guess, balance the the is customer on follow-up customers? I program So challenged of a that. absorption the basis remaining much versus of XXX

Steve Nielsen

comments thing heard is had we only that clear It's factor. I a that they the significant off revenue that not factor, in slower we it's for moment to mean, got Sean, the the but was that other start a in year. the a to the

Sean Eastman

Yes.

Steve Nielsen

that on we expect to still declines but continue, and same when some there, year-over-year They the have be that issues. can there order absorption have revenue geography, the we're you serving

up the have customers nicely. hand, On quite that we are picking other other

total. taken so, view to prudent And it's that a a of just in margin of what does balance

Sean Eastman

Okay. Thanks, guys. it I'll over. turn

Operator

you. Thank

from comes Luebchow Eric question Wells Fargo. line next Our the of from

open. Your line now is

Eric Luebchow

labor market thanks. Great, tighten Thanks well. you the mentioned as for Steve, that market to some in were taking question. starting

terms wage aware in that any guide near-term of that be to into your are we out of? inflation of point So, any should changes build notable there or

Steve Nielsen

are me, what Eric. out changes we're the Sean, to in marketplace. as probably, by semi-skilled policies situation, are our of monitoring in labor not It's workforce, is, we've most higher cost. the people and And see excuse government Yes. affected -- seen we we some unskilled more It's that What but in been we've everywhere. big the look those don't core there.

it's regional. So,

something impact it's business on highlighted that's paying something the moment, So attention but tremendous too. at why the careful we're not that we that's it's had

Eric Luebchow

are about producing of that of, those, that need helpful. as Are or And -- cuts to administrative headcount you're wave pre-pandemic. should expect you total ramp we you've back kind continues of terms bring made XXX this revenue That's in employees that that don't lot to a the down great. hits demand employees Okay, that of versus continue still to year? next

Steve Nielsen

we the picks some side up the on as made Well, adjustments certainly G&A business. growth in

not for versus net grow back see as as what line. that, increase some sure. be customers growth, we ourselves a but we'll we've what not there, we to employee past, going that's it's where there fiber we doesn't subcontract. the across were, have will of construction, as number as rapidly but see growth then, probably seen some opportunities we to do a And be ahead, we're Looking top for to the The in mix it of of

Eric Luebchow

Okay, great. Thanks, Steve.

Operator

Thank you.

question next Our Thielman from of Davidson. comes from Brent the line DA

Your line now open. is

Brent Thielman

program you in with Great, of thanks. and for that, program? Good morning. the Steve, us could more associated large of the a you customer transition when timing this sort expect to that see of phasing remind

Steve Nielsen

is we've mean, invoicing. there work to a the close we're to lot is portion activity as documentation Well, is there talked left, markets original not out out of through -- the number lots to a expectation, the there about, that to occur whole actively projects done of still not as get the has of a I all closing but final and

just have program it's a that get the this So to through year. bear to cost we

Brent Thielman

I reconcile And of your this total to near-term constraints, -- Steve, I relative a bump some any Okay. just relative XX-month challenges, to of thoughts supply that then, in like quarter, trying nice to up versus look was constraints, that backlog that? nature the things backlog next mean, labor the

Steve Nielsen

encouraged. Well, we I as think, always, were

other look top almost organically grew you at five than customers, they XX%. If our

at have would customer. top that a combination year ago have were and same We of a five a that and been Frontier Ziply the entity half

where given yesterday fiber. they're money encouraged are and on think how some late than And spending large focus course of wireless which of to anything commentary and that I as we're re-prioritizing hard a -- CapEx AT&T. I challenges, of and on their of programs, think, question other be it's the is off so, doing within be as through fiber we're working lots largest customers context kicking the just the And while of of

it's to So we work something just through. have

Brent Thielman

this this the seeing to be much the thoughts And And for quarter types fast-growing Steve Maybe you're also just future? more the kind quite of your few utilities on you. a just in what near of Okay. but fiber maybe lastly, from customers. revenue can a of from revenue you there a construction the company really be continues and awards to component new impactful those segment small highlighted

Steve Nielsen

Sure.

I for encouraged we the that, and with its we award were finalized. the is then has process customers. those certainly Yes, activity, RDOF of rate work interesting growth saw what's breadth not So, Brent that the both in the think,

seeing these are are entities. strategic process. to we capital making tells that types of those through it So begin that But applications do for customers confident for of get them is are that decisions the own an how actually and is it that programs the what I you think on approval enough course their final opportunity RDOF important

it's And about almost so, with have I industry. a of we're if the we've customer exposure new top brand the you as pleased set that last months. created XX mean, to we customers five XX that to the think it, in

Brent Thielman

okay. you. Thank Great,

Operator

you. Thank

the Thompson next comes Adam of from line from question Davis. Our Thalhimer

line is open. Your now

Adam Thalhimer

the guys. Hey, kind of that phase build? phasing, revenue -- expect over about in Steve, years? the were the And how fiber that the course we looking the you in see do you guess, above what really, AT&T starting good came of two Hey, morning benefit to to I next are for, speaking of

Steve Nielsen

that Wireless with it's returned the and with we business were that AT&T. we that on and the most growth started. program, getting was And entirely was down increase to So, XX%. back organic fiber Adam, just the AT&T, offset part, we almost for about overall encouraged

for across We encouraged distributed ramp. think geographic in always we're are think, a it that I AT&T. with number continues There us. So, a of locations program it's size, to

homes ramp last AT&T the extending I and then of think to talked year. made the XX of homes comments in next reiterated it We million And they then balance when approximately the yesterday through were getting the -- number encouraged that. to week, their over -- the beyond objective through double passed yesterday, double about of end XXXX. will they potentially some it continue

and geographies a it's So a growing serving of them in pretty We're number we're rapidly. big program.

Adam Thalhimer

RDOF? Fulfillment awards, Charter The to those are related

Steve Nielsen

just had this with that's we've the of Charter No, business at core that literally decades part point. for

Adam Thalhimer

about us curious you've and then And in-sourcing, do I for a Okay. the can -- X,XXX understand challenges just buying to your equipment. lastly, given business? mean, going help that you're that you how that's customer the And who I'm of addressed to a how people going much hiring talking they're is

Steve Nielsen

-- their business I We had with them. discussions to is don't Well, theirs run.

enter into that in next said our agreements and covers some work we to As year comments, for beyond. we're new going

they levels plays out. them in they move expect will good to a that as and how We but And see be forward, remain lower, activity continue customer. we'll it somewhat support decision

Adam Thalhimer

but industry All like customer right. that, you of normal is for I'll the somewhat say, in been over, terms Thanks seeing it's customer I just it to has the wanted think not program, turn unfair. time. how [ph] do large the

Operator

Thank you.

the of the Our Rygiel next from line Alex question from comes B. Riley.

Your line is open. now

Alex Rygiel

morning, Good Thanks. Steve.

the your backlog a I really you story us growth somewhat question, Can see negative to are two us understand what that? growth First on was better ground telling feel points data of suspect XX%, and the help today. you limited. organic those not was

Steve Nielsen

see think on in started for quarter, the second and but Sure, next quarter the has focused of actually calculation Alex. this mean, clients, half to away implied this organic one if clearly to for we of who the large growth it organic then, much the half the spending slow the deploy year the ready getting in you second it's pivoted year Drew's other current -- was get year of one more the half improving, who C-band. was and program, from about focused the growth really know you and I quarter, the two the guidance just really a year or

had of AT&T we're planned Verizon. for network. small about the have both But impact allocations and encouraged, largest perform way on certainly already think, auction the two we've think C-band I their the initial an work I C-band participants received to

their So plans. of these it's pivot one periods in just

Alex Rygiel

revision your intermediate new That's to sort and awards? term near suggest helpful. revenue then, net CapEx of about does project outlook And what

Steve Nielsen

lots what drills our with trucks there's pickup of that, have reflects And on is had of out. we is trucks. from it We've a orders bucket deliveries. problem So continuing issue all to suppliers really microchip discussions to directional

And little orders and a so, got we winter. do, last bit what we it ahead fall will with of

do And in that will and so, the the growth we -- we'll we available the will take that supply receipt and what dedicate to and then lives get we it year, take of becomes we rest, opportunities, the of when the equipment then at will extend end the of then.

Alex Rygiel

Helpful. Thank you.

Operator

Thank you.

Our next question comes from Dilts the line from of Stifel. Noelle

line now open. Your now is Noelle, line open. your is

Noelle Dilts

hear Hello. you Can me?

Steve Nielsen

ahead, Go Yes. Noelle.

You're fine now.

You were breaking up before.

Noelle Dilts

great. Okay,

just want touch your yes, -- was tightness your So kind always, part more. issue bit on -- a to I hoping labor. business of suppliers of, to the labor of I've little

you situation kind to to scarcity term. It in more when in of near in about this that know, my bit you. over talked that tends sounds we So, this headwinds about be medium like tell the a view, before, long-term little could

thinking be balance? that we should how about So

Drew DeFerrari

Noelle. Yes,

scarcity And there we just, Just on. of if regarding times to you think helpful. touch labor, Steve, are is then that's when there want

Steve Nielsen

Yes.

look I what speculation we've there's in and September. of -- about which are enhanced of impact to lots think the seen So, Noelle, set expire benefits

the new read, underplay that to country, So, more want everywhere, to having door I to not unskilled in but get certain through the money. employees and also parts the side of semi-skilled pay of I don't the for business to want us don't on over we're

forces that have business field with of the to -- of our number more and in the rate XX% year-over-year. growth XX% grown field we ability have or the we see put a can we obviously, organically had could you Now, customers,

ability an to is it. there do So

commit an ahead that's do through what something sure be in -- doesn't demand industry available. to are we that currently we've I think, than always be they before. been this resources but what issue, to We've mean through that is it say than it careful returns is managed we make before. right, you It what have got and the period where it a more time currently won't resources, we're does that where that, our of what going looks

Noelle Dilts

Okay. on then, [Technical And supply constraints is just the that Difficulty].

Steve Nielsen

a will operator you We up. to we to come get the back queue. you're can Operator? reception, go Noelle, if Noelle, breaking in the may person to better next want little you.

Operator

[Operator Alan Lake you. from Our next Sylvan Asset of from Management. Instructions] Mitrani comes Thank the line question

now open. Your line is

Alan Mitrani

were Can Hi. something though revenues highest Can had than the the be lowest and for Thanks. while. speak -- you giving to you've was even out? what I your increases would looking you specific in was expense? guidance just there the salary this or a going there speak, higher SG&A in price inflation of had you've is It and your giving is

Steve Nielsen

think increase little above through it's quarter. there go was trend, but other we comp some We Yes, ahead. and were manageable. a Drew, I mean, really don't Alan, we bit some administrative in think I we stock expenses ran have was some anything out. that There obviously call don't that the add. to it understand

Alan Mitrani

manageable [indiscernible]. I mean, your revenues with it's

happen really to think I that's what needs obviously.

I get terms and better look of the mirror stuff guys collectively we from handle they're the the not where in a to it between a little is as some got to -- rearview bill might works of understand parse business, in the thing. You were is a of want your the when with top between I spending the fast represent start now? so comparisons at to better that forward this? -- or really time, year guys looking better that a capacity in Verizon, through things growing, year maybe realize forward do in customers but little this said between, maybe years a you little hood, going the industry get I look the just couple you of all we in through could couple underneath of next enough not way out bulk passed. be to five once these but infrastructure there So with a things you going of there's data. But see but your an it things, in all reasons look the What and for like does

Steve Nielsen

restart although AT&T, what strategic with more that this network. least deployment they of that, their continue their in well year start obviously performing through been consumer plans the of expect could program, program they we continues. a other in clearly that expect Alan, Well, not of year, it grow around to that about and if fiber as any their long as some think the network clear we yesterday the And parts essentially -- it they and it to next XXXX, comments at have

Alan, most what's ahead year or interesting all for that phone the think part least companies the years have if ahead right. fiber-to-the-home at maintaining, two are I growing, not ILEC the programs is, of

smaller or So which been interesting out with build the growth about companies clear they communications, has is to we mentioned in in very next lots -- Ziply, X.X comments, five clearly, that deployment AT&T. that, very fiber started over an clear been at Smaller with the about customer. our a to of as strategic. XX% we've years footprint Frontier they actually consolidated look they've of homes we of like one But that their expect fiber-to-the-home. million

broadband clearer, wireless comments I including fiber. but side on over upstream large both think America. there I deploy the for the willing advantage remain -- were just network, side particularly they're to that the been phone but been also appetite company where side, have respect I in, a there cable to that strategies, the the businesses really band. wireline around business maintain a business, the to think, clear on very fiber, the on competitive side throughout they've at grow of one There And around C product of healthy to an also very they think rural on to is a to invest with So, their wireless broadband has customers clarity our capacity never conference is particularly yesterday on country,

the for So, good for at that's teams think in haven't We've the but top customer, We in some I very got XX% for we large are XX% a five half there. been a future. top slow time, else to through work got or and everybody all revenue think customer for the long absorption issues this first we program. sign five our of

Alan Mitrani

going Verizon? for it is terms What follow-up likely it. maybe going can us been contract in assets. you since for Thank you through $XXX down work it give most I where that of what you receivables last number had Can on they insight. just to total and Drew, I that of maybe the see you this have the us for this quarter? X% in a been you know as the we're just -- Can you on anyway. AR stand, it's give appreciate the -- Q was Do quarter give horizon? million

Drew DeFerrari

be publish We're understand it we to it about that have -- XX% including say like that in would detail. year-over-year. this We program of the Alan, is making customer we'll in Q balance I when right progress. the will tomorrow, is it faster. the all up But us, down would tied large everybody, direction. moving

Alan Mitrani

Great, thank you.

Operator

Thank you.

Our next Noelle line from the of from Stifel. comes Dilts question

now line is open. Your

Noelle Dilts

Hi.

Steve Nielsen

ahead. Noelle, it's a best. little bit We'll our better. do Go

Noelle Dilts

Difficulty]. Well [Technical giving kind [Technical Difficulty] of

Steve Nielsen

We're we're -- you. getting have other just follow-up to every word. will at we end, on with our least Noelle,

Noelle Dilts

Okay, go ahead. Thanks.

Operator

you. Thank

next from from the of Jon question Group. Our Vertical Lopez line comes

Your line open. now is

Jon Lopez

sorry, if look with is Verizon peak, if we you to stages could this At the or this much. the that can to sounds of we that down the like that working this, what and sort the back unfavorable interim you customer it contract could if late the if relative in with I you're like call Hey, over I'm is baseline it wonder customer come your stuff of maybe -- this here. thanks XX%. wrestling point, revenue with way. I situation relative kind real through me to guess that help very I'm quick

whole can we with run to a you you is rate or left that things deemed work to much before of kind that tease apart get how customer like maybe So the XX% need out? those stuff

Steve Nielsen

Well, Jon, really elements. there is three

was of another slow we're a portion been is this that was small year. more the there And through then which their that So is as portion challenging. There that extensions year was portion of work of they that's network work there there. And C-band last deployment around the because program the and that work working is work their more supportive, priorities is the cell through the we through it's of work, work work, The part as more there And portion work the cost the with the focused that is but really sequentially around degree the associated something operating costs, And to it got coming of the a costs. all are not just is down it's to but closeout they're significant portion. but year. we challenge it's BAU a through.

Jon Lopez

elements. Okay, so around, again, but much, this the conceptually just customer that helps. My sort question second surrounding not of

concept out not would otherwise that can constrained revenue my other was, you in over terminal to perhaps and right with, or factors, here right friendly there CapEx, and here Is was that other ability previously customer-related that is more replace you then enough amount that intended? the maybe revenue this you this project understanding some, work significantly have either of but idea be revenue I way is -- this the you revenue, the still know replace So, still the time. same that had margin guess, labor,

Steve Nielsen

Yes.

an customers it's not constraints, a what in focus it of made that deploying the advent So, the was on is level number everybody than bill and the Jon, to is of input, lower that cells or I more spectrum, extensions clear think it's network labor C-band the year portion not presentations material a with small that that to ago. is expected a of do going a at more

plans business in as hand, at adapt of as the nobody And changing a year making On always, adjustments the is same AT&T mix customers ago. level it's their dreamed a to Joe, that a of priorities.

Jon Lopez

But your forecast Steve. in forecast foreseen XXX%, larger and sort the statement, on and follow-up the first view? bucket that of in Is in so second on bucket the decrease get just that than that the on I foreseen? No, last increase is

Steve Nielsen

keep that think expected -- first Jon, bucket. the that's the this in track of slower Okay, year I result network because of currently -- maybe I is What and support a would I is I the in didn't year think the and that say bucket second part extending everybody of ago, that's work of of results. portion the C-band

Jon Lopez

if think for that year the network is, a increased QX, bucket in one you but No, my -- bucket the increased you small sure. was two cohort? years drop second out, are question two, I appetite cohort think the out three as the was cell-related, larger first guess, since than Sure, is extension,

Steve Nielsen

I've again, term. on to clear sure your make Jon, And I'm got

just So be C-band pick the capacity core out, us, extensions are year a Look, it is the and right, and program, network that. one year will that's I there'll doing a a ago, small that driver to layer, to not layer, everybody. off around turned requires as new out to because not think opportunities require expected up figure it they coverage and as of that I This been as have cells busy you're the think deploying fiber endpoints. people just that's

Jon Lopez

Now I got you.

Okay.

just So a or Is -- to reason place be CapEx stuff. view industry limiter say more there a where of be unable that would with that our items some the on customers peers wide one last your clarification some and those I'd advantageous is us? that procure you're in may and

Steve Nielsen

that's customers that but to and the portion factor deal might that's driver. driver cable a of to has the with. real of where what not the equipment, are rural, we with business material, There is So in The uptick some a the supply is everybody demand the in respect the doing.

things On a all the as we relationship the and automotive good anybody side, don't think slower. we with suppliers else, as or enjoy any as we're getting

of we -- we as on we're can in a from think, position good as fall pool the supply constraints. last that I that probably be, have assets we puts given order a good fact, have that In blessed us a

Jon Lopez

appreciate Okay, I the all got you. thoughts. I Thanks for it.

Operator

Thank you.

Asset line from Sylvan next Our of comes Alan Management. the Mitrani question Lake from

now Your line open. is

Alan Mitrani

for -- I all Did whatever wanted follow-up maintenance? on that out customer in-sourcing to already the that's issue. pull backlog the backlog you expectations of

Steve Nielsen

contracts backlog, adjust adjustment because expect the no and to There enter need no Alan, and beyond. is next end have of through into cover contracts we new period There the required. we the to year is to

Alan Mitrani

expect way then, growth. at you come or about your And normally, do for what to in of, are your trail regular to fiber these geographic with going you -- or have I talking -- contracts business, do say, some growth aren't in terms going Okay. just contracts what's you When the AT&T start to going be others will position? terms just that your backlog that in the them to increase in expectation maintenance mean, seeing you're forward obviously, look of backlog through let's normal revenues example, for I expect and

Steve Nielsen

master flows that the portion Well, certainly, just Alan, a through there is agreement.

through mean, blowing projects the just example, they're C-band, I we received for have. term the we've that standard agreement So, that around

the increase. a backlog fiber, had in quarter. pretty And as reflect again, rates so, run to last respect we that the quarter will With strong

fiber announced a the agreements As where states we number master an AT&T, deployment. example, scope we with cover of our extended and work included of to the

three-year And some the to we revisions then when to backlog. and to that as be subject will that's geographically, those estimate reflected add but we so, essentially grow in go booked, are backlog. it's through may period, There opportunities

is in the customers. industry there other not be before, bit to intermediate-term. are near highly elements the to Alan, discussion the a think different it five are the again, traditional I we've top certain going backlog that growth in And about thing, little this correlated had and than to rates our

phases. work big in this typically on the it we come wanted rural there We may contractual reflected one, work we book another we're It rural receive but if not backlog. example, in But backlog. mean, definition. issue they stuff the north we've through for not phase that, business. could just reflected that's So, about think put way it be is when backlog a commitment in do give we in they completed, the a got all to we doing, just number We torture to $X never the pipeline the in the billion I as of on us

Alan Mitrani

weather bad Can you much how on was the February, maybe think just the played little you? Thank this quarter? we detail you -- that That's of the the you. -- mentioned quarter. out that lastly, weather, that impacted How And know how in you better then helpful. all obviously, a

Steve Nielsen

I mean, big February of middle had bad February's mean, in the long a was the country. was impact I we've Alan, as through it a a time.

Alan Mitrani

you. Okay, thank

Operator

further no showing Steve the to questions. would over back for I'm like call to time, this closing At you. remarks. turn I Thank Nielsen

Steve Nielsen

our his on out. he and before it what calls, And is COO after we my express visible retiring retirement. to these has growing just service. million time want for your Estes. has He XX came visible as more to billion And I company housekeeping Tim $XXX not thank the at all Tim he plus. So, when years we go, thanks been was but well from today attention, everybody effective item has wish of and revenue get I $X to to in then today Drew him one in been

Drew DeFerrari

Yes.

other at Telco call, at the customer the XX%, split. facility cable electrical was out out was locating was was and close and to X.X%, break at XX.X%, Steve? I'd Just X.X%.

Steve Nielsen

quarter's and for Drew, the thanks, our Thank everybody you. of speak on end Thanks, time and next at your call attention. again We'll August.

Operator

you for This concludes participating. Thank call. conference today's

now may You disconnect.

Dycom Industries (DY) 25 May 212022 Q1 Earnings call transcript