DY - Earnings call transcript Q3 2022 | Dycom Industries, Inc.

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Operator

Good day and welcome to the Dycom Third 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. [Operator Instructions] As a reminder, this conference maybe recorded. I would now like to hand the conference over to your host today, Mr. Chief and President Nielsen, Executive Officer. Steve ahead, go sir. Please

Steve Nielsen

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

Slide to X. Going

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

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

Ryan Urness

call All provided provisions Thank statements Litigation you, Steve. forward-looking Private the to made Reform Harbor during Safe this of XXXX. are the Act Securities pursuant of

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

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

Steve Nielsen

Ryan. Thanks,

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

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

X.X%. $XXX was quarter, of the for million, an revenue organic Now increase

credits demand reflecting these networks, five converged customers factors revenue, revenue wireless/wireline continued of As other X.X% XX.XX% share of of costs. year of $X.X share year-over-year reflected increase earnings incremental impacts per in earnings per a we $X.XX for margins at our top per of $X.XX, tax earnings of cash or the million $XXX.X wireless wireline the of an was adjusted for ago EBITDA decline two related million, of $XX.X X.X% to share and benefits and periods. compared produced expenses revenue the quarter, and were of deployed this per program. adjusted a sequential to large large our $XXX.X of from Revenue flow Liquidity were X-gigabit administrative of quarter customers. DSO with reflecting and Gross filings all and prior included networks strong tax million at share XX complexity networks and in solid was fuel customer days. declined of operating adjusted General in

of the number XXXX third quarter the notes a repaid subsequent for quarter, to in construction in states in end excess of awards services we valued convertible remaining $XXX million in the we our of X-year and received total. full During

going construction networks Now, upgrading cost-effectively stated can single consumers constructing provision directly of designed are underserved a deploy networks be streams businesses, to continues to participants to support. level deployments rural to billion to individual an wireline opportunities. high fiber to Increasing continues fiber effort industry have generally to capacity especially meaningfully single the believe This that the The network industry includes set for participants in telecommunications speeds their are X-gigabit network unprecedented of and using These high and communications is investment. or in Industry of wirelessly or infrastructure belief increasing $XX view sections capacity recently and revenue investment from unserved to represents deliver country. the Slide across America. networks and significant enacted technologies. consumers country. over across major high broad X. the that either capacity Today, access crucial broaden of fiber industry most Jobs our multiple networks Act enabling XG areas a appetite and This businesses, vote society, to services for the we wireline rural

states for the increasing initiation that telecommunications In will commencing number prior are Act. under to funding even provide of networks initiatives of Infrastructure the addition, an funding

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

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

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

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

Moving X. to Slide

$XXX revenue, Dycom's revenue our third organically million. this of AT&T Comcast million. million revenue. was was is Revenue the grew five was quarter of construction X Comcast XX.X% X.X%, largest customers million AT&T. XXX.X% AT&T quarter of the other million decreasing XX% customers revenue. at grown or all for top Frontier Verizon largest X.X% growth with $XX.X $XX.X combined from XX.X% was largest During fourth third XX.X% Of have our revenue was eleventh X.X% our grew consecutive was excluding XX.X% customer the revenue XX.X% XX.X% of $XXX second or the organically Lumen our increased fiber note, our revenue, XX.X% top at at organic utilities our in was two finally, customers of quarter customers And customer produced $XXX.X five increased consecutive from other quarter, customer was where largest aggregate, customers million increased organically. electric from our customer. organically, Frontier organic total increased and of year-over-year. or or $XX.X demand all revenue of organically. This in of revenue or Top organically. of

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

will the operations converged In fact, increased deployment direct we of meaningfully our our networks. trend last X-gigabit wireline believe long-term parallel which business and over maintenance several we value have we wireless/wireline years, believe of and the a

must plant As those deployments that dramatically be and maintained. network the of outside amount extended increase

of Slide completed $X.XXX at was Now, 'XX July $X.XXX of going the the the is billion $X.XXX to months. billion next end quarter, versus this essentially quarter the X. XX expected Of Backlog third in be approximately end billion to backlog at the flat.

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

and Mississippi, to increased deployments and New in construction construction and from XX,XXX. Minnesota York, agreements agreement in fiber for Windstream Indiana, and Ohio, construction York, Connecticut Alabama. Hampshire. Communications, During Arkansas, in various Georgia. the during a rural maintenance and received Missouri, construction From and Texas, Indiana, Headcount quarter, the California, for and maintenance Pennsylvania agreements agreements we fiber Colorado, New Lumen Florida, Consolidated Tennessee Frontier quarter for Kentucky Oregon, Arizona, Iowa New From and

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

Drew DeFerrari

good Thanks, Steve and everyone. morning

last the the $XXX and from million XXX Storm of Adjusted decreased quarter. revenue, million, points compared was of in were basis $XX.X none revenues organic QX 'XX. gross was Contract for X. year increased in X.X% Slide EBITDA X.X% XX.X%, million of revenue QX work performed period. $X.X year to to or margins ago Going

'XX, QX $X.X well The expense as $X in resulted to large better As million in of or after-tax amortization basis approximately by variance prior fuel our basis net expected share, incremental revenue tax than operating lower depreciation in the taxes. customers. adjusted total periods. the points period. lower costs ago per EBITDA, and from $X.XX year compared Non-GAAP and from was from asset share this reflected of credits and decrease on related approximately decline benefits improved offset per points, interest from expectations declines higher as filings expense for at higher the X.X% gains approximately compensation, for income stock-based in per sales, income share tax $X.XX included XX leverage. income adjusted impact was G&A net and came XX of revenue several to

Now, Slide to going X.

the Our $XXX revolver solid with $XXX.X quarter financial position balance of and strong. notes and repaid million In Cash $XXX.X term borrowings. million million. final and $XX.X at the notes, was and no at of loan the convertible balance of equivalents we September, sheet senior million of ended liquidity remain We $XXX were maturity. million

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

quarter, the cash Going were $XX.X to gross XX. proceeds million. $XX.X disposal capital were net was Operating $XXX.X in of million flows and at expenditures strong CapEx million Slide

to For million the fiscal expected to expenditures, XXXX, capital million, full range in to now million of approximately million year compared made QX provided as assets the on an large from at of of $XX 'XX. and are of high $XX increase DSOs $XXX program. progress to combined XXX of The an of end million, we customer $XXX in net $XXX were from prior receivable 'XX, outlook sequentially substantial XX a QX contract improvement the accounts disposals days, net days

the due also our 'XX of for the pronounced fewer Slide included to contract $XXX.X holidays, are fiscal for the inclement due daylight a storm have impacted days XX-weeks restoration results January adjusted by Non-GAAP January of hours services. operations, from impact year revenues actual quarterly company's our the available amounts $X.X payroll quarter, may and fiscal seasonality, year million. QX compared QX results in and These restart these on last XX-week year of going taxes. XX, of other calendar weather, our million and expectations. XX. Now, was revenues to including work to reduced included to Each work factors

contract non-GAAP Company 'XX, 'XX. to of percentage there in is be during approximately tax effective to contract $X.X XX-weeks expected For and contract modestly, as income million compared revenues of modestly higher, will approximately in-line fiscal at a interest adjusted a from expense increase to as and QX as the non-GAAP of EBITDA to revenues organic QX we compared The range expects $XXX.X revenues, million of Company QX QX to the XX%. expects expect non-GAAP 'XX. Total of operations rate

the turn back Steve. will I Now, to call

Steve Nielsen

Drew. Thanks,

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

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

We are in breadth by our the encouraged business.

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

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

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

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

Operator

Our Eastman KeyBanc first Instructions] with Capital Sean from [Operator question comes Markets.

is open. line Your

Sean Eastman

taking for my questions. Thanks team. Hi

historical is in we anchored average forecasts contemplating that challenged our we fiscal guidance, basis quarter the wanted bridge there build to. check year? just back we've over in if customer that been are you that the be to the program? need like somewhere that 'XX. I on on And entire points there just Is guys another it to fourth roughly the wanted to X% in for trending I So the start around that looks to of XXX bridge to next from margins, Or tied component

Steve Nielsen

Yes.

Sean, run year, the kind mid-XXs and of, I always with that I for in you program we've margin think, this thought the control in long-term that line think long about, large in EBITDA this average. if in and you're customer quarter

Sean Eastman

how that in did third receivables on the quarter? trend balance and assets And contract Okay. challenge program the

Steve Nielsen

Yes.

accounts the $XXX As queue in you'll assets the receivable we million. customer, when see contract came that file with and about

that So we and out $XXX had free million cash actually about of flow one of customer program.

Sean Eastman

to how seen seeing around XX-months, commitments. the helpful. the look these of rural big in come have through. DYs one, through? very that And five curious, you just the bid has I'm infrastructure be yet Or funding you those Okay, broadband's grown three not last are say last And year inflection commitments in that activity -- reflected total incremental deployment coming just we've much we market what opportunities and from following course currently? back through And activity fiber you bid that if would should we're over addressable seen the that are seeing

Steve Nielsen

in that down into lots we'll to question, Sean, try break it pieces. Sure.

So if this you last cable about telco we've year, talked the in core over think world about quarter. the last

Sean Eastman

Yes.

Steve Nielsen

real homes to XX been that been has have deploy order something way with on Since There the million it fiber-to-the-home really networks. of, became fiber. passed a call

similar five a to like programs number, five that the So, accomplished been years, to in announced, all accomplish to what customers completed let's get XX-years next took over right? you be say years. next have you to the to eight eight get would to If the take of

that had months pass, fiber say XX-days, was to what a six taken expected more that their in the it had and program. also deployment a think I long-term to number decided program ago the interesting smaller pass a convert fixed who a customer homes and in to have case one up that they of even customers, about wireless plans last we've actually

the before we and get impact to addressable the that's market of state So support. on federal

We've really off which that made not one heralded already something largest that pieces a broadband which And available. California impact widely probably as is programs number three own seen one billion, summer so there's the the and there: states like is have $X enacted grants support business, last of kicked program their but $X billion. is

programs significant. state-level that have are you So

it program course beyond. You of depends have a and of II it number -- how billion for call coming plus infrastructure is just is $XX the so then Investment you and but far which billion through left -- has another which there just have Phase RDOF on $XX out the the calculate Act investment you Infrastructure gone Phase And is big support. I, of let's

And effectively that so, it, without the without of about industry America say make rural that sense the if from deploy think if the government support highest networks think didn't have to all has is America to historically way I addressed, what this look XX% the high-capacity support XX-years to -- in level said think industry the you not I of majority now it. in, back of will from vast said

is market in think to So And I that that's never been that in going industry the now also see plus particular telcos in the services of operators, the capacity have technologies the be XX% the you then, rest those world funded. and networks high the will although us. is be like acknowledged other people cable all require and initiatives all through different X-gig from that of where

Sean Eastman

Very helpful, over I'll there. it turn Steve.

Operator

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

Your line is open.

Alex Rygiel

Good nice quarter. Very morning, Steve.

Steve Nielsen

Thanks, Alex.

Alex Rygiel

you a to at monetize receivable you than still think sort running company new bit can receivable historically. is additional a cash? accounts Or for Do the of higher accounts The norm? a continue

Steve Nielsen

look Alex, made although you the capital if up tied great third in the at on that large in that customer working the So remains quarter. progress program we've excluding

million quarter it of you at also kind the that of in DSO look that's mid-XXs call growth. in in had the $XX If runs we the about, it sequentially the rest were business of and

range. into on be fourth So our we of in that of get fiscal and reason to line, business the don't did as I progress in in make the great next I then our expect to think continue see we progress good normal year, the think that's rest quarter outside we -- progress, we any the

Alex Rygiel

backlogs little talk then a strong. And a forward? real moving bit if you the up shift mix impact about, Can that away from great. could how seeing And XX-month top you're customers? margins That's five

Steve Nielsen

Yes.

So, XX% quarter, the XX% deconstruct ahead. AT&T wireline in call certainly have we Frontier it we little your and was growth the business that -- I down over well, wireless looking when number, but had was I if AT&T with think growing, over XXX%. up augurs portion had that still and think mean, so the great customer largest you of I you

think feel we is top ever good growth five those customers. XX% And business opportunities, about we XX% of across said, I I top think, about real the the good there we being are opportunities see utilities opportunity as other electric grew with. others I think that from been about five. the see and also broad it's now So, that than as But revenues

Alex Rygiel

Thank you.

Operator

question next comes Adam Davis. Our with from Thalhimer Thompson

line Your is open.

Adam Thalhimer

Hey, Nice guys. morning, good quarter.

Steve Nielsen

Adam. good morning, Hey,

Adam Thalhimer

customer is the program what's to 'XX? Steve, flushed before fiscal large chance

Steve Nielsen

quarter. good progress we the Fiscal in made look, third 'XX? So

quarter. that do significantly that work really be in that expect continue you fourth the progress to next believe through impact, we -- We to But we the diminishes some margin quarter. be continue pretty as year. in There'll fourth think

Adam Thalhimer

Earlier bit some insourcing customer? year contracts for new Windstream a Windstream quarter? for the that an from So, but were this looking outlook this update Okay. just we on I concerned about you had

Steve Nielsen

opportunities Yes, there. continue to have we

I an this that quarter agreement additional a like solutions. with got lot within think quarter this They've be quarter. had We last we'd the activity so agreements of to talked that had we and to some we're of part we encouraged their last do we signed work signed quarter. forward

Adam Thalhimer

in you $XXX us on can little October? million a color more lastly, then incremental give And the awards of

Steve Nielsen

It Yes. single states a across was of with number a client.

that expansion So primarily geographically. with a customer nice-sized

Adam Thalhimer

customer, top-five Okay. An knew? existing somebody

Steve Nielsen

Yes.

Adam Thalhimer

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

Operator

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

is line open. Your

Brent Thielman

key much impact but could us where back you them this had Steve, appear It customers. the about seeing fiber growth that business, in Hi, the supply where you update it's talk of seeing call. with thanks. are impacts you nice you're as constraints the most? a haven't Hey, just on you holding heard you couple here doesn't Maybe

Steve Nielsen

Yes.

to issues. of chain are get supply in customers their look, working hard front So

are And lead inventory. in. working put more so ordering our We we're it fiber. as earlier as quickly cable the hard They're carrying on But there extended comes and with service. they're times customers in

is the the before your So industry got hard order I haven't may working haven't and planned a in to for see But think contend half, you those whole be you it. if while issues. with today it

Brent Thielman

guess, Are smaller some wins, of flip the any constraints because you're there? the that wondering, seeing signs in new scale, you can awards, are provide inflation. broader chain business that? what compete if your supply Okay. plus new can in to of curious, of these seeing Just you that, Maybe you evidence because regionals getting I business some the I'm with

Steve Nielsen

in Brent. Certainly, is managing you chain of of to there top means moment-to-moment, have and in the we grow the we I on. the mean, Yes. think stay perspective we that a what's going capacity on better a period And I labor. supply probably advantage have inflation have national what's on happening really

the I think moving the resources to about last to were country quarter I we literally from another, a one of program started. talked quarter help customer get where

of know a So I emerging trends I is as an think in inflation across And got don't other see a experienced sees there anybody. we've organization that we quickly as than of inputs. period lots particular of that scale advantage the industry

Brent Thielman

Okay. And to growth? in it quarters of couple up, sequential new award back here, ramp Lumen are see you like activity some starting a looks sales

Steve Nielsen

footprint, their growth is as of had -- selling as encouraged that's acquiring that Apollo, who announcement. thing. were footprint. by throughout see and that's Lumen's had we we some Lumen, we We're that also Look, Apollo a encouraged portion to opportunities about you announcement work the with from recent good extensively could We recent future think the we a sequential

Brent Thielman

Steve. Okay. And last one,

the around color to CapEx at increase start in point here? in an some and see should increases D&A we also any Just

Steve Nielsen

bit five our that four had that's CapEx the they months expectations. it we CapEx right quarter ending of D&A will a terms our Look, were year certainly basically pleased little the us from were follow. forecast to drive We or ago. suppliers the that able probably will perspective, certainly for off year in during modeling we're than started a so where Well, Brent, deliver, earlier

with equipment I our the think today, bit to get that guessing is game. we exactly uncertain, the we have know scale to little if going and going get suppliers. that's the It's a of when we still a we're it, order history still to we're relationships testament a and

we And happy so, we're and perfect. we're we got just what did

Brent Thielman

thank Okay, you.

Operator

with Wells next comes from Luebchow Fargo. Our question Eric

Your open. line is

Eric Luebchow

might Great. And so toward was Thanks into you as Comcast you your these it have some in spending high any guess maybe to cable do deep straight you much away mid down big timing competing question. do think talk about? for the talked how the of quarter. come fiber more fiber footprint, the from the business, is splits related? much share it related Steve, be taking could and the with particularly markets thoughts back second pivots they've your I How builders and that about some of of cable maybe of over on picking operators? And up, cable start for new of

Steve Nielsen

evolving create same X-gig to to they still quarter, X-gig we're at their where in the Look, highlighted last through, are think pleased. certainly public were similar in time. the Comcast upstream capacity revenue I we have changes their mean, and technology industry more sequentially line on path in and they of, as working was all the been plans I how kind you others to on

Eric Luebchow

Yes.

Okay, fair enough.

said be it your just C-band any you some and elongates? or nothing that AT&T note? what you was? the you C-band Have with XX%. deployments business on least month could think FAA was question recent I of the side, revenue percentage about wireless announcements it been just some being if have then, was whether from delayed dispute there maybe down within just the at impact a And On aggregate to wondering seen side I'm

Steve Nielsen

think, I Eric. Yes,

wireless. activity of to levels the as It's down We they in ahead to deployments. continue C-band look certainly good have

a don't see add. good that's our between number have the confident near-term anything to and to FAA, We the We deployments C-band for in opportunity. to the we that, that really begun a the resolve respect With itself going be seem have FCC of and customers discussion customers. to as

Eric Luebchow

enough. Fair

about cost at in last Steve, one the appropriately cost think future for talked I looking count to cost curves from and me, side, before business. had inflation forward on your you trying the one Just inflation

you color you to rate cost have higher if and of contract labor how kind inflation gone and have inflation component of the that's industry? generally if on Just the have account wondering, come are for recent understanding, those customers cost if any to reset awards, discussions through some

Steve Nielsen

Sure.

So, everybody industry, because it I at coming through business. think those on is is everybody's looking the impacts

I owe the to with make grow booking a sure with think think we industry, perfect to that's the that I us. the economics to been not have about new pretty as attract sustainably to we we right as customers where incur we've coming feel but employees that science subcontractors new and out. are as we're our And well good objective work,

Eric Luebchow

Fair. Thanks, Steve.

Operator

with Jon Our Vertical. from question comes next Lopez

is Your open. line

Jon Lopez

Hey, three have very I quick thanks much. ones. hopefully

why one, logic QX out. wondering because like I'm pretty is you'd in guess want your to ask years came half you QX in organically. deceleration call of but I that is the there The fiscal in pattern several I implies or just seasonal like fiscal strong any first some it And there second best guide anything Is highlight? unusual relative to the year, fiscal but to if anything

Steve Nielsen

And but Not to forecast Jon, the pretty I Jon. growth, the of customer as I organic we had think growth substantial growth else. for broad-based. quarter you in we see two it's difficult always this the trends Yes, think was with everybody certainly January everybody grew that top in five and can provided then data

of get don't end to We see and may our it the not have highly have five work done. this New week across done, It's quarter in it's always seasonality quarter. in January. uncertainty and sensitive any less gets the diminished the just get to it Christmas Year's around the to and holidays, of so any at we ability we weather, particularly done but customers done the appetite the get between given Work

Jon Lopez

you. helps. Got That

make clear, that The wanted pretty back of next Has process just or the historically, think feel heard you'll I to second had come comfortable a presence in I'm But is I that customer they sure to? opportunity good attached one, to you year, that you to guess think, footprint you've you assets just I something, pretty say. to hands change one have to those divesting. I the I be as attached the or in opportunity that an be is

Steve Nielsen

Yes, customers fair as other with lots and our to share Jon. not into know work. And going of new specific say been the than and long fair we've new but that No through owners, we provide continue go the we We're acquisitions. of get good as we'll win to to consideration mergers service discussions management the think we to guarantees team.

And will so, until do to and the with good that work that, transfers owners. job it hard continues hope new we then

Jon Lopez

helpful. one My it's you, Got backlog the is last obligatory question.

billion short-term like there? is takes backlog, an highest intuitive customers level are So your higher. are It's asset to close pretty actually what not I'm your $XXX highlighted nominal long-term and earlier backlog this counter higher, it's it Walk seems And to going and that to. to case XXXX, been. on to like re-center It's pre-pandemic it's with why we your was committing ended XXXX that come out us what to now, puts you way. through, end $X.X the the versus If million look like that's like ever of when makes I consider down planning just the sense? the

Steve Nielsen

Well, Jon.

of They've have this us. just the As agreement. right. worth but laid I two don't We've out think for Frontier. on the Two that call, for them years' and awards duration a work. for good highlighted that initial right actually plans with the they year two was example, years

client, that is. for as objectives, what's particular -- right record don't that's the so in all there. all that backlog they in that's in And could year just, It's example, got now. that's I that four think we given an opportunity

Jon Lopez

it. Got

to to the all? the -- of make excuse engage longer-term. on change environment inflationary does willing backlog that does at at in willing we're just operating like you that that one be the mind, operating now less customers clear mechanics factor my so And that a or all thing less Is now, me. Does

Steve Nielsen

Why you, that good it change to Jon. calculation, the make an got I of the I'll of does, we've perform the it's our tell agreement. customers again, we to sure the a it term mean But mechanics owe it's That doesn't economics to during question.

sure we've cost got we inflation. can that make so future contemplate And to

years, a successful. and be do another to perform customer that comes what meet best mean, I customer wants a when three with our contract so expectations to we'll we two And fine hope might and the But... versus we'll that. their do contract year renewal, if do up we're for

Jon Lopez

Understood.

Steve Nielsen

Pushing environment got the handle unless duration to in an cost right we've increases. inflationary terms future

Jon Lopez

Yes, the thoughts. I makes sense. no, Thanks, that Steve. appreciate

Operator

comes question Dilts next from Our Stifel. with Noelle

line Your open. is

Noelle Dilts

Hi, thank we're as just I about that comments that more scale planned Curious constraints realistic an Dycom's chain how last, that the like double you in five, and and to and right that the next that can demand? given Thanks. said seeing chassis the 'XX? meet think three supply that amount now customers the than coming essentially well? then into from mentioned labor the market you're is is work standpoint in years around federal ramp the ability industry you. to well-known thinking how the challenges obviously, Steve, your than you just industry I'm curious, with money your of generally the

Steve Nielsen

pronounced supply. people certain I can opportunity We to capacity, could Well, long will as work you to had the attractive, economic is capacity. anytime to as as be there to economics search long a where you that a economics the activity the country lots a that are government. grow But That them headcount this to I of think for that. mean, of by it create is the grow the year-over-year, X%. cut that we on have right, placed challenges are have the we in work think near-term. do are call how together things the ability grow continue priority maybe that industry We've the

you I overestimate programs as how grow the Sometimes but long as get economics think and long-term, right. billed people much can are

Noelle Dilts

lines same the those along past then and talked about. in Okay you've

on be returns types to and bit of little there the from just work of you a where focused company, revenue. these periods During tend pick to lot that more a is that

next versus you So to how could sort speak revenue thinking margin expansion of, years? the balancing you're growth few over about, Thanks.

Steve Nielsen

Yes.

create been always that that is topline. make we earning again but need We to the it trying to create But got you're growing or proper on We've we're in returns. more focused goes you Noelle. when back capacity. create think, sure to margins I business to much important value where to know

based we're What trying opportunities. say job way. it sustainably want think market that's the through we're subcontractors I do the I not -- returns, on. new for what attractive picking focused And customer for needs of, what to can a where on it's You sustainable best do and kind meet that sitting create either we're we or is, think employees the just, the in an to enter grow. And their to here we're that's environment, and

Noelle Dilts

sense. Makes Thanks.

Operator

question with next from Craig-Hallum. Our Schwab comes Christian

Your line is open.

Christian Schwab

extremely file tight. to tight, Hey customers large equipment spending with labor guys, all have are opportunities about people given substantial chain I'm point solid tough but we don't money, Steve, strong in file the will the if fact you just relationships are supply you extremely who that M&A, leading wondering the potential had it's as thoughts to on new is your Have is consolidating what quarter. guys opportunities, chain. that supply consolidating substantial thoughts guys current and the

might So to I given the it or time make that it's like, you that thinking am acquisitions more a be wrong? seems about know, especially market labor tightness

Steve Nielsen

as relationships Christian. buy this CapEx. quarter well and think first the can So, and on about million as we $XX acquiring anybody, always We like top teams. think spent foremost We management good acquisitions, about I good equipment,

primarily been about opportunistic it's looking we've always for attributes. So that. And those

as we're I been. quarter we've we grow as in able current well encouraged organically, the to have that been think

well the as our industry. think, anybody of as size in I

you is if about it think AT&T revenue about year-over-year. with up So, $XX million

If lots and have. see build annualize us you level. a leads But multiple relationships us. the And our we'd ourselves on invest to that M&A of I to lot invest people customers of that, we'll some, we've always invest where we don't our those And that done that at that not in is we the or rather really because capital attractive to we all come opportunities years. would a there's earnings that much and over an be and just just in -- in M&A in, here equipment won't mean we think at don't of opportunity contemplate about

Christian Schwab

Thanks, Steve. Great. questions. other No

Operator

comes with Management. [Operator Instructions] next Lake Our question Alan Mitrani Sylvan from Asset

open. Your is line

Alan Mitrani

on you. I Hi, thank be thing. just clear to one wanted

go we're much long-term You few that's average peak be average, a few coming and a have the want years mean, talked seems right? which EBITDA been ability shareholders expansionary higher average since long-term your about starting call in your peak, to long-term, meaningful plenty has And it EBITDA? next what There big of I terms like it of your of mid-XX's head to that since to out can very years. that then. XX-year the last know downturn a accurate you've above is on what that's not call into -- had I period spin comforted you

Steve Nielsen

not to we saying EBITDA to periods in than and better in not mission Alan, try we've And sustained the certainly we average. of here get broad sitting be average. be growth we're average, had back to We'd mid-teens. If like accomplished.

going to it. the through a working we're We're encouraged in, have creates But we has period cash opportunity. cash that So on gone of time. keep come difficult

are given do in the and we that of funded place growth, number for we all privately think the so public ingredients And see. both opportunities broad

Alan Mitrani

doing terms can things you are labor, how coming relates in buying little you? F-XXX's Okay. how people patterns seeing what ordering inflationary just doing crews, other environment? to into made talk sooner changes your And what is bit tell main new us impacting your changed you then, obviously can the you're specifically hiring things you're cost is the to about sooner industry. in inflation a of more response CapEx You're were you have like or that it as And affordable have any iPad, then, you in competitors

Steve Nielsen

most and or all market, the not It's workers. of country. entry in a the regions tight particularly certainly the semi-skilled mean, entry-level labor level regions, on I

do money. up our to we're we I what we're have ramping more So doing mean, efforts. offering we're addressing, to be attractive, recruiting we're

We applications every in get week. of continue to lots

these next But suppliers, worked ordering head. past. need you know our to earlier. we it to then else CapEx, We're And more have CapEx way my I providing but we're we're still inventory. on visibility the partner things some We out. of because We're We've I to everybody Alan, is what you work own. We're equipment even think replace, that's know with So talked not after. hit year experience, what else what -- what the what worth doing gave we we've we And X-years' is in attractive carrying out if everybody a been doing we the visibility, our the I doing We're right year an place only think doing. on in generally think, of about work. good suppliers.

so and that they're working think with they And appreciate I us.

Alan Mitrani

just buyback, left Okay. update the quarter? you this And on you then share lastly, can us how much you have and what do do

Steve Nielsen

ahead, Go Drew.

Drew DeFerrari

Hey, Alan.

no there $XXX 'XX. million that of So a remains August through repurchases is QX. There were in

Alan Mitrani

thank you. Okay,

Operator

closing There are turn call like for no Nielsen over questions. back to the Steven remarks. I'd further to

Steve Nielsen

Well, thanks.

to just a remarks, closing couple of statistics Drew add. have we Before

Drew DeFerrari

Thanks, Sure. Steve.

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

Steve Nielsen

Thank Thanks, to and our we appreciate forward been a call. Drew. It's the joining for New tough the year what of Thanks, and work thanks And right. the all look a to Again, you. wish everybody and hard done really Thanksgiving everybody you've employees year. for this Year. everybody. All Happy

Operator

This concludes the conference.

great Everyone, have may You now a day. disconnect.

Dycom Industries (DY) 23 Nov 212022 Q3 Earnings call transcript