DY - Earnings call transcript Q2 2022 | Dycom Industries, Inc.

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Operator

Good day and thank you for standing by. Welcome to the Dycom Industries, Inc.

Second Quarter 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 host 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 second 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

provisions of Private Reform Steve. of Litigation All the XXXX. made Act you, provided forward-looking harbor pursuant are Securities Thank safe during to the

performance include or our all events reflecting about future historical that comments not statements periods. expectations, do beliefs Forward-looking assumptions relate to solely or

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

Steve Nielsen

Ryan. Thanks,

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

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

of Now quarter. was decrease organic X.X%. Revenue $XXX.X for an million, the

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

$XX a end And During quarter, of states the award number approximately we of $XXX to the at construction for million. second in for million. quarter, subsequent shares a to we valued the million XXX,XXX received repurchased two $XXX year fiber

broaden the multiple is industry revenue to fiber services can from effort deploy single fiber effectively we and enabling to view streams This both fiber most network high-capacity the high-capacity deliver that consumers of X; appetite broad the to significant These belief generally individual speeds major stated networks of have technologies. consumers to and today participants are to designed or Slide wireline Now networks sections industry either are that going constructing wirelessly continues single and a businesses, believe industry's using their increasing upgrading cost networks investment. across deployments Industry directly one to or a wireline XG participants provision set country. network opportunities. businesses meaningfully gigabit for our

have Top substantial of announced the deployments plans year, passings. of for XX totaling over six XX Over customers new last our fiber-to-the-home, million

increased rural be rural telecommunications augers participation and to stated especially FCC key purpose to dramatically fact, strategic a investment the active access wide is divestiture, crucial it's America. announced retained auction and In society, territories. network whose continues customer for one RDOF Increasing divested in in investment. high-capacity fiber in increase both recently service to well plans The for to

addition, increasing RDOF program. of separate networks commencing will funding from telecommunications initiatives that an the for FCC states In number are provide

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

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

be equipment. in the is tighten around to these will automotive to addition, In for continues market the specialty challenged, and truck for be Furthermore, persist. they long required It supply the extensive how chassis regions labor may conditions particularly the seen how chain for currently country. remains large

we we position deliver to our service to scale confident As valuable customers. factors, our well these remain that us with contend strength and financial

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

All organically. Demand at customer the of the customers. largest was X from consecutive tenth all AT&T in other have AT&T time. XXX.X% or grew organically. was largest customer of where Dycom's Top customers, two revenue. for revenue. organically customers grown organically. our of and Top Top revenue largest Top fourth of customer. revenue combined finally, customer XX.X% XX.X% decreasing was XX.X% our customers $XXX.X million million. is $XX.X quarter And growth first aggregate, customers Verizon total produced increased XX.X% This Our Comcast was a was organically. million. at Revenue AT&T. or for quarter or revenue, of Lumen XX.X% X $XX.X our million other organic from increased or This was the revenue at excluding largest X% or our Frontier of of of our XX.X% $XX.X second X third our million of revenue. customer XX.X% was Frontier X $XXX.X Comcast consecutive with was grew second XX%

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

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

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

end XX Now the to of $XXX going $X.XXX next April approximately quarter was is in Of quarter, decreasing completed the backlog backlog, $X.XXX XXXX at to X; expected be Slide the versus at this approximately billion the the billion months. billion million. end $X.XXX of second

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

Tennessee, For agreement Windstream, and a AT&T, Michigan, of Montana, engineering agreements in Ohio; various for Carolina; New Virginia fulfillment Network, an and Idaho, Wisconsin, the Georgia. utilities, DISH South for Tennessee, construction North from South from New fiber from construction Washington, agreement Arizona, Indiana, Carolina Massachusetts, and and various during agreements Headcount North and agreement Wisconsin Colorado, and rural agreement Georgia; Comcast fiber wireless Missouri, deployments Jersey Kentucky, a Mississippi Utah, increased construction Lumen, in in for electric to in quarter for Wyoming, Carolina and and Oregon, Pennsylvania; Carolina; maintenance in Jersey, construction and maintenance XX,XXX. Washington, Illinois,

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

Drew DeFerrari

Thanks, Steve and good everyone. morning,

interest our G&A 'XX per to compared 'XX. share million $X.XX XX to of amortization. points revenue points of in Going X; Adjusted of income margins from was QX for lower gains and than was offset lower were adjusted leverage. QX X.X% in adjusted 'XX. net net income EBITDA, depreciation or was after-tax higher sales, and Non-GAAP Slide was with period. in year. to this revenue, QX operating were than $XXX.X revenue per several in contract resulted at approximately compared X.X% $X.XX EBITDA line asset impacted from The large decreased QX lower QX by of gross of basis a as revenue expense our year-ago share compensation, stock-based margins lower variance XXX million, and basis customers of last decline expected X.X% expense in Gross decrease XX.X% the the on expectations $XX.X

million notes of borrowings convertible Now our going $XX.X with balance million quarter QX. to financial at was million X; principal solid and position expected repay $XXX.X notes. used $XXX.X at were the due be end Cash QX. September XXXX. million $XXX Liquidity to is notes, revolver of sheet at $XXX and convertible our to equivalents unsecured ended We term and Slide million amount $XX.X no remains loan, the senior million of of strong.

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

cash XX; million Going $XX.X $XX.X operating million. to were flows and Capital was quarter. QX, gross proceeds of million net Slide CapEx disposal during expenditures in were $XX.X the

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

have authorization days net an DSOs XXXX. receivable share end The August repurchases three 'XX. of As from the of combined through accounts days, $XXX a of improvement contract QX, XXX were and at remaining assets we QX of sequentially for million of

contract line to non-GAAP QX XX; adjusted as Slide for to in company percentage as of compared QX EBITDA and 'XX. revenues QX to decrease to contract the going a revenues XXXX, Now expects 'XX compared

We approximately expect points. XXX gross year-over-year G&A points increase and margin XX of approximately basis of basis decline

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

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

will Now, Steve. call the back I to turn

Steve Nielsen

Drew. Thanks,

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

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

with in encouraged breadth business. the are We our emerging

particularly the industry deployments Telephone and are presence fiber-to-the-home Dramatically value one evolving year. and in deployments sales well as operators doing gigabit share market in utilities is allowed support newly Increasingly, growth speeds connections. the chains, deploying deploying at are underway. activity maintenance electric to spectrum increasing opportunities expand our fiber Customers businesses process; expected these small construction to data rural provisioned forefront the to Our of beginning long-term be as next A extensive to of enterprises. are available consumers supply capacity consolidating usage of increased and business. are increase and high-speed customer medium Wireless for is creating opportunities of build anticipation companies Cable operations enable market upstream. new portion has being bands are are the and growing, same. and consumer are to us opportunities. of

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

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

Now open call the questions. operator, will we for

Operator

And like Thalhimer Instructions] [Operator of going looks to with the Davis. it question is Thompson, Adam come our line from first

Your open. go ahead. line Please is

Adam Thalhimer

much good that morning, in the what's guys. customer ease? QX? impact how Hey, did program your Steve, large begins margins to thought on when And negatively

Steve Nielsen

Yes.

So were the say new program, margins, that have if positive controlling that who programs and impact been some average line bit would the be But margin at customers, slower, for seem the some as little controlling of long-term were color average. EBITDA it other would tendency additional been drag. bit with program. a was for that around on the periods in I you just in an that a look the long-term central And a of the has that to net little to

Adam Thalhimer

of And then, to when think do that, second part the begins the you headwind on that just ease?

Steve Nielsen

is down The amount about Well, of the we to that in close down The we're sequentially year-over-year balance continue it $XX and on out working in cash of excess XX%. came million. that out closing project. work reduced

through think if to So year. progress And continue fiscal the that progress. continue, accelerate we the balance will I hope of we make not

Adam Thalhimer

you that Okay. customer? to $XXX the how million tell or the from And telco from you And us do about think then, fiber $XXX can then a award, revenue? was million if an MSO

Steve Nielsen

say would more have it next the geographically. I about the on by I were award call breadth encouraged we of the say to but

Adam Thalhimer

Thank it I'll over. you. turn Okay,

Operator

you. Thielman comes D.A. with Davidson. Thank question And of next from the our line Brent

Your open. line Please is go ahead.

Brent Thielman

thanks. Hey, Good morning, Steve.

Steve Nielsen

Good Brent. morning,

Brent Thielman

supply think right having deployment do what the last discussed of in I and ramp you you call; the Hey constraints noted again this some quarter labor think in that's now? impact Steve, on and

Steve Nielsen

Sure.

excess grow the of we side I on we're XX% of the Brent; mean, but in able was the clearly the call number, of more to in that last AT&T encouraged probably XX% business, it about think talked total the excess wireline as Brent, I so year-over-year business, is we're interesting on with organically.

even business with -- So say able the there But rate have to been that grew would growth absent business I certainly -- might grow of that have we're the the Frontier. constraints. higher

that Delta I thing winter, of we're the And number on unlike think impact impactful the variant of that last quarantine. weren't was now. end the more the the we've had other that has towards people quarter the busier was we an had all when clearly the busy, peak during in

had impact that to on respect some deliver certainly and had so with certainly we able And were cost to what overtime. some

Brent Thielman

Okay, than customer? And I you're with seeing -- slow talk to that's was just Can it have expected more it helpful. expected. was Lumen think I Steve, but what would that a was little you about

Steve Nielsen

east about of divestiture primarily we represent clearly, the number So, the -- have that of with announced respect revenue customer. of to Lumen, Mississippi. end their so with Lumen of the after our X/X with they states, quarter, strategic respect of They a a to yes, that

it bit so little a was slow. And

I think, potential retaining. transaction And encouraged they're general, an they've kind fiber-to-the-home I transaction really territory has was to in purpose invest to incremental for service million the in think they we're that of acquiring. states in because Apollo the the in that XX homes said of million that of spoken by XX the fiber they're identified XX as

business have business. of the may in the in of to or of the the untap certainly slowness the rest what the think encouraging but can in first unleash as hindsight I of impacted half So transaction year from news the the some with benefit the

Brent Thielman

you near the lastly, okay. the in continues order Steve, see think don't activity extensions, Right, the to at any presentation a of business term? percentage I Horizon shrink mean over I least here. as or listed And new

Steve Nielsen

Yes.

continue we Brent, think, through programs. work closing I to out

about existing into ILEC but see. there think they be to I budget service have some we'll build year just territory; plans comments we'll so as fiber made they encouraging, how of have to see which they may their their revisiting some another out. opportunities Recently, just get were play in

Brent Thielman

Okay, you. Thank great.

Operator

line with our And from the you. Wells of Thank Eric next comes question Fargo. Luebchow

Your line is ahead. go Please open.

Eric Luebchow

Great. the question. taking Thanks for

generally been So concerns Steve, there's on labor -- inflation cost the about in industry. some the just

margins that yet any any there's kind could for provisions impact and you quarter? you those see So to through have on with could the you some contractual talk pass implied maybe labor help like kind expenses guidance higher in of that have of your any through customers what your if if your October of of or

Steve Nielsen

Right.

of So within annual that I think have there the existing have book business are some agreements we increases.

they're are Some just of agreement. -- renewal or of index there on is where There are those the opportunity a negotiated others related the are amount. the

careful I forward important the cost think is where about focused curve. how we're more to be about think on that it's we

to supply position importance that but through We've This so provide we're do which before. but to hard that seen pronounced combination be right. successfully labor more the that service And going able these And resources incremental sign you on that as we and I to of before business they may for a I've to price as far sure the been cycles than that. one make valuable little get commit what always think you real customers, new a in that is it's that been to opportunity we're a to work up continue we've be our need. able to so a

Eric Luebchow

customers in your periods this, to I related of see Steve, less able that fiber in-source or your increase as Right. to may be their share mean, larger market deployments? opportunities tightness guess other likely of to you I some some any do like actually labor less of

Steve Nielsen

not has been in the in-sourcing big factor business. Eric, a Historically,

the that we we across literally to that it through think that in seen mean, the broad and the building that we've one where one know ship ability to other certainly do to we resources every So to I pool have moved was those where gives resources. periods. prior reach incentive was of program focus I because now I where country. right we outsourcing, from on continue don't the a corner country had labor the can opportunity

Eric Luebchow

one got I integration award. looks or T-Mobile's that's have a business the within whether you're if Wondering broad network me, for said just I on then, wireless And interested, wireless Great. opportunities C-band more DISH was seeing what missed Steve. but it the more build. you might you DISH network today, deployments, like

Just any of color on be side the helpful. what you're seeing from the business wireless would

Steve Nielsen

Yes.

I that gathering call, for think think year-over-year. what this, I'll our total, the in down I wireless Eric, And was phase deployments, C-band primarily. still business reflects

We C-band geography XXX And better But as we for you and we clearly, 'XX. now have into probably when to I accelerate, as 'XX which have as as deployments think, and site and is right in the clears. sites deployments. entire look that the in received is do those know, something C-band to think acquisition wireless are I ahead will excess 'XX, well where it when industry better -- understand band the looking a of

Eric Luebchow

Steve. Thanks, Great.

Operator

of comes you. the Vertical Jon And with Lopez question our Thank line next from Group.

ahead. Please Your is line go open.

Jon Lopez

Hi, thanks I couple a ones, very I much. Good if of had morning, quick could. guys.

one, The I just to clarify wanted guidance. on first the

I million think like there $X million of a work. year or ago, $X was storm

-- the to contract Drew, right seeing those think think bit things? so about revenues Is that a way I So flat, organically theoretically nominal year-on-year. up you're

Drew DeFerrari

slide and Yes, That's Jon. we we on what This is Drew. spoke have the of.

Steve Nielsen

we current some to this in And whether of too other factored the the thing, is any not October this consequences just guidance storm there. Yes. quarter, for be early Jon, amount in Ida, It's hurricane in have the work. see there'll

quarter. current not we've it, in no include we have with the done for always in So how does guidance there accordance Drew's storm --

Jon Lopez

you, helpful. Got

could I'm wondering thing, Second back. spin if you

and sort right? reference ago, to of XX% down fiscal year-on-year parts in a that of about the QX. I couple the business mentioned something reference. troubled down is a there think those Do was of portion contract questions you Verizon I XX% have That

Steve Nielsen

the capital of we've No, was this continued hope with working through to back be fiscal picks balance the that up actually able of that out get tied in working capital that We the Jon. That program. that, up program respect to to year.

it's moving but closeout. progress So quickly make right on the we the like in are move to to all it continuing direction. We'd more

Jon Lopez

Okay, backlog the my to one, sorry, last ask got then, obligatory you. I question. want And

of So has of now digits increased each the sort quarters high for year-on-year two. backlog -- XX-month three single consecutive last your the and

is backlog that? XX-month than greater Why Your the is direction. going opposite

Steve Nielsen

the the duration So is in talked agreements the are total of of we where agreements. a Jon, long-term about as function these backlog before, and we

And so the you agreement, you're a XX of last renewal right, a you months total. five go addition in don't if have through renewal have cycles backlog but you and in for year anything cycle year on

other contractually we to it they talked to be on work, I quarter this particularly projects be rural say, -- is, in The the as quite would thing awarded large tends are phases. last but about tend

illustrative might you So -- numbers. just

You never as might but to have you phase. than to have through project $XX a more phase you million $XXX million backlog work in phase

it's business. different the I a seen think than portions structurally of just from other bit just we've environment So what little

Jon Lopez

it. Got

Okay, very much. understood. Thanks

Operator

Thank you. [Operator Instructions] And Noelle the Stifel. of Dilts our next question comes line from with

open. ahead. Your go line is Please

Noelle Dilts

Steve Drew. morning, and Good Hi.

Steve Nielsen

Good morning.

Noelle Dilts

didn't kind plans Good and morning. home That's a start they recent million a bit be wanted on -- fiber to a availability conference, not their did X factor. At something you about question And industry they the being that to from with AT&T. broadly I seem just something million passings of year. hearing about a X.X talk lowered talked they to that and across cited. this we're necessarily fiber

to, availability build-out again, not something as So fiber that relates the a concern really seeing? is the or of you're pace it

Steve Nielsen

some as think there fiber. Noelle, around lead certainly our we comments said I times extended So in are

the situation. that plan farther although ahead, customers AT&T's think don't to having So I case are in was

about So lead we extended some our comments times. potential talked about

I I been million very were perspective, think where it's keep aggressive in the from to doing think an little, year AT&T mean, essentially a a ramp. homes comment in X.X I year they

a business grow. with pleased more in, little of numbers, little they more magnitude to the AT&T. fiber. as I grown nicely our the with to with looking in grown ambition grow And year. continue outside has see with might impressed bit have their this And It progress you we're think But I I'm think can year-over-year. the our from a sheer

Noelle Dilts

Right.

do of Okay, margin your got new this just the you coming point, kind it. point work you you year And at that mentioned terms participants then participants that next and of we're stimulus. in these think coming positive work are about margin recognizing capacity some still potential more to point? in earlier discussion industry a contribution. in a are is looking are think second, to what's and I'm the curious, now or willing for getting are Are pay where to capacity at do secure of we

Steve Nielsen

we us, Noelle, They Yes. of smart forming have Look own of lot lots their always work inputs. for market They're where so of a is in customers. suppliers view they're going. taking market the beyond

than really the supply-demand I think what's of launching of dynamic important probably they're our customers kind a number more for in that strategic is industry the initiatives.

eight years, approach when secure so six, over a how the intentional done. seven, to And you five, that strategic taken a you've very get initiative think have to I work extends capacity you

what's strategic as I think next are I really really are of of So, kind driven Tuesday. as how to it cost think much figure out trying going services programs their by to -- support in customers it's

Noelle Dilts

thank Okay, you.

Operator

Thank of B. the Rygiel line you. Alex And comes our from Riley. with next question

open. ahead. is line go Your Please

Alex Rygiel

market share -- the future? are one possibly seeing there of that seeing you Good you. sort you the where to back that marketplace, that equipment whatnot Steve opportunities sort morning, yellow largest of opportunities being clearly out or the of fleet and take and provide foreseeable you Drew. can have the in we use could the the of that's come about equipment you advantage more to services in Steve, Thank available equipment rolling Are and being stock. availability

Steve Nielsen

This a chip is long-term challenge in with that's and We're we I everybody. our the time. have always think suppliers. for mean strong possibility, situation I Alex. dialogue a with relationships all them

fleet to and terms extend lives of in opportunities incremental capacity. can certainly are there be think that the the our given of operating meaningful size I

canceled we a XX I financial opportunities. that that were are there supplier somebody we their call mean aerial was took I and when -- there about a a month ago first by had we order else an devices. think call and all we got had

to opportunities So which are for us to think it do mean, I automotive the is but on put diminish in supply want comments. we there why real. that are don't this I the chain constraints I

so we've to got And plan those just of we business. aware be as the

Alex Rygiel

then, all sort sort in current Or to And would positives quarter? anticipate you could of positives think future it's you working extended there offers way your be remind negatives do back of offset the you hurricane Can the the that through business into and and stretch the you that's quarters? other coming us negatives then and United initially opportunities. to each States now. hurts this right that how And possibly

Steve Nielsen

Yes, Alex.

effort areas. it's that's is think around electricity always for beyond the foremost the size communications us too with and have area Orleans early first I when quarter. to restoration Communications surrounding the -- the New of and the out not is respect October tell for you of to anything

be business. the by fine equal, be of not or And negative it's to bit here but effects say, done little It services lots rest a of the early I too all there'll So the years. providing we'd and may floods; tornadoes restoration work benefit over I some us. has of assumed generally in being terms it that'd any think or would we've storm things a provide in tell. also hurricanes

Alex Rygiel

much. very Thank you

Operator

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

Your line is ahead. Please open. go

Alan Mitrani

grown you in contracts of backlog more -- you of reason your didn't contracts? response you're thanks. about hasn't of number to Is you year question in the last the Great, you at of -- end talked in awards months possibly Steven, the more? but deliver more the that Or backlog, are that some that say being do the why about were. expect next

Steve Nielsen

down -- And that may says illustrative may not in indicate that that And going years backlog are there's doesn't Alan, operating what be the been that you agreement, last the you going initial movements as of have to rates that of through go signed it duration. two of an agreement. five year have after be was booked you a year through it, but comment a it's and agreements forward. XX% run portfolio

So of it a observation the portfolio. a kind it's about technical more actual of anything than is

Alan Mitrani

just what you back saying stock. guys No. buying are I I'm understand but it is

at seems -- must like you're a margin It new a cycle bottom bottom. years. of the You for they're

in feel So started months question or years, I'm that have? them just spend, to are not the it on what closing substantial we're since next of saying, terms from getting My private is, for RDOF XX customers takes few XX, or or to infrastructure the it you based the timing. equity that coming what and is is seems contracts portfolio you you have whether deals, the you in guys is whatever awards while a going like all that they're it indications or that next it of know your backlog -- on depending in an bill looks do like, get

Steve Nielsen

Yes.

prospects. think have contracts necessarily with and Alan, So we I the I focus contracts wouldn't the but

focus mentioned got we capital worth I So a through And stock But quarter. quarter, customer from of We always you, growth sure meet opportunities opportunities. that number a of on the $XX as buy new the million in tell allocation share the that needs can did substantial we there emerged. making you and were we perspective, organic repurchase. growth can

we to of throttled we we in so them. sure which want emerge, we're financial as on saw these back opportunities great because a take make repurchase that share we the advantage position And are, to

Alan Mitrani

talk CapEx this changed? for year I -- What's maybe about you can in guidance CapEx, what missed on Has then And Great. your it it. Drew?

Drew DeFerrari

hasn't It's to million $XXX million It Alan. changed quarter, Yes. since $XXX last net.

Steve Nielsen

gross take quarter. did million about in in we the $XX And CapEx in

Alan Mitrani

to Can and high. you really low. car as mean like know year earnings it's I that's you guys really of sell then, I'd yet item? then because used good way or of you operational just other other. move income it's a strange this portion have about see so the there Do you And Did going a line your a talk shortages? much where your that that's bit impacted prices line of I are be? prices were that question sense not seems And line it obviously I know Okay. your necessarily an a was fleet one see but F-XXX grow business but fleet. for not it's you vehicle some where item, rather

Steve Nielsen

Yes.

because want earlier, prudent we As again, been we've constrained, assets that opportunities really been sure to we we making when operating be as grow Alan, able to said keep the themselves. about chain has present supply

so And that as program. an get a wouldn't be the expect high right? sell prices market. more assets, we'll active of I then the related new in we'd used could have disposal kind loop, we If It's but don't

Alan Mitrani

one And question, then if I can. Okay. more

bigger matching bill picture money in that to of relates government off of effects it a may passed bill to as infrastructure money take in in want advantage to general, Just is the and worried and guys spending privately? push some the as business. spending the others they you because terms your until opposed Are come and

Steve Nielsen

the could and couple But I it's can it's is, of about. an we So money about. one really that effects really only we would that speculate interesting I say, unserved is there's one that mean and remember been a question, areas. speculate Alan for underserved inter

the mapping to works for those the go in eligible the government and that they no anything, of area as may the fall in to that the those networks, we government that broadband customers them areas think, of so extent have that longer capacity plans areas so out I that have prospect serve are faster that to encourage they And the areas funding. funding in upgrade incumbents if that's the

So other the actually, think would way. it I

that a I other of hand, think there infrastructure are are on programs of statewide independent number bill. the the operating

or And of so it the seen regardless whether at form, passes in number sums level. announcements of state a substantial of what we've

about So weeks a example, a or ago law. passed six ago, they month for in California,

last going mile that is and to they're $X.XX construction. or $X billion construction a middle for it billion So another in network fund $X then mile law billion

as that as much $X it, federal in in alone what So if in about you stimulus almost the state think was XXXX. it, that's, California, total is call billion,

our a the case it's So lot think entity. new that the country an be of advantage around taking programs California state will independent in level there's or actually customers of I of

Alan Mitrani

you. Thank Great.

Operator

Thank Group. our Vertical you. Jon next question Lopez with the And from of line comes

Your Please go ahead. line open. is

Jon Lopez

much. very quick had follow-ups. I thanks Hey, two

gross is flattish to first a basis you us Drew, The XXX sequentially. the like basis ago, a for just, XXX can sense it or feels points say, year a give one you're talking like margin down points; versus

that what So, year-on-year are that? the are driving like factors

Drew DeFerrari

Yes, Jon.

in going fuel-driven. to I think, that's be part,

about year the you certainly ticked ago, up customers if really, we less that it's year quarter, at as that then year. gas price So last a And spent last back this was look than some. of talked where have certain there's

Jon Lopez

you. Got

us into And then, about can you we hovering been Is customer $XX that of hasn't above Steve, Okay, for numbers right, there of the That our sustainability like XXXX. like quarters. or -- at visibility think, that remains million if tell XXXX, or here kind anything helps. activity? who have happened, has unnamed couple since I a

Steve Nielsen

it's of number of a around suppliers that's I across never seen. there's the just in available in the the networks alignment mean, that capital deploying amount think, industry amount we've whole to fiber-to-the-home do fiber of and I it. of interest John, illustrative an

in we for for of X last about customers, in year, XX what the Top just million plans in if you the slides So think our comments we XX fiber-to-the-home. example, our homes had mentioned initiate over that of

built to may industry think think the exact have low been date number I in the by XXs. but that's like -- you and I number the the approximate is

done you So won't do the to double next plans been now years are to take have and the their to it years not what's tranche. last -- XX over XX plans

in it's I for more of -- to capital and just illustrative think companies it's appetite invest the fiber-to-the-home. So

Jon Lopez

Got you.

Really Okay. helpful. Thanks, guys.

Operator

Thank our of question the you. next And comes from Alex Capital. KeyBanc Dwyer with line

go open. Please is line Your ahead.

Alex Dwyer

Hi on taking is our guys, questions. Sean. Alex for for Thanks this

Top plans, So have XX X of plans. customers past fiber new million build the $XX

activity of context does you how Lumen? how helpful. be this five And next would there Firstly, over this years saw you years? five planned past the this -- the Some would include over level what does to compare

Steve Nielsen

Yes.

it Alex, I when what XXXX. approximately entire as said the way the that is announced to the about which, are built on like industry last one equal mean, XXXX, think, has think just to I the started plans, date plans, since I it to in call,

that's thought I of by get to don't how out there's fleshed a support talked Lumen what So going could impact on but that's estimate they they than that's to eventually say not one because we're provided It working And it. way any number to We million to research other not addressable out. folks from But $XX include plan. or to there an certainly, think you even They're be was yet mean that. about we the that fiber. about is yes, might it they're -- directly. the that bigger big long what how divesting does but

Alex Dwyer

new secondly, Very is XQ. something And all Or due were to light pulled of backlog? bookings out just in Was timing? helpful. this

Steve Nielsen

health of a timing. where in It's the the we a in awards. see mean -- I just increase months and is that just of see time due not to the we lot they're just number what typically summer the those summer anyway. didn't But

Alex Dwyer

Thank you.

Operator

you. And questions no conference to back this remarks. Nielsen for showing at I'm Steve And would further like any turn time. to Thank the I over further

Steve Nielsen

thank on call. the Well, their participation we everybody for

statistics to Just before couple Drew share. had of a go, we other

Drew DeFerrari

Sure.

facility was was the So and X.X%. for was split; locating XX%, electrical customer at at was XX.X%, other telco X.X% and at cable at

Steve Nielsen

the And wireless, Drew, was X% about total. X.X%, of

Drew DeFerrari

Correct.

Steve Nielsen

And before time we'll Okay. Thanksgiving. again you Well, your just to for everybody, talk attendance. thanks, and

Operator

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

You may disconnect. now

Dycom Industries (DY) 1 Sep 212022 Q2 Earnings call transcript