Dycom Industries Inc at DA Davidson Diversified Industrials & Services Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : And maybe just to kick things off, Steve, Drew, a lot of conference commentary here over the last 30-plus days among some of your customers, all have seemed very committed to capital spending plan which you all have discussed in your earnings calls at length in the past. I'd love to just kind of hear from you off the bat what you've heard more recently over the last few months that you think is particularly impactful to Dycom just from a customer perspective and their plans ahead.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Yes. And Steve, I wanted to touch on Lumen evolve -- certainly heard some of the comments and why -- what's happening in your results as -- what's happening going through some transition with this divestiture. What do you think that means for Dycom over time though as both sides seem pretty committed to the client provider?

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Okay. And Steve, you've been through a couple of these investment cycles. I'm just curious. As you look at this relative to the years past the helm of Dycom, what's a bit different about this one versus others you went through just with your tenure with Dycom?

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : And Steve, we've been seeing Google Fiber probably discussed in new markets recently. Any (inaudible) update there what you're seeing?

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Very good. Steve, one of the questions that has come up more lately and how to think about Dycom. But can you help us understand the mix, what you do just related to capital projects versus a business-as-usual maintenance related work that you do especially as these fiber rollout plans ramp up? And I assume it fluctuates over time, but -- any color there would be really helpful.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Great. I apologize all for the technical difficulties. It's clear that we need some more Dycom services where I am up.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Then I should apologize, and we'll keep going here. I know we are a bit short on time. Steve, maybe we could turn to just the large customer program that I think you and others in the industry are facing challenges with, various reasons. But I guess the question is sort of how do you move forward from here with that customer? I think you know what to do and not to do from here in terms of how you think about managing contracts obviously. But how would that customer be receptive to the terms that you are going to seek when you work from here.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Okay. And Steve, when we think about all the customer competition happening today, you listed all the different customers looking to roll out plans. Historically, when we've seen that, Dycom has seen some great margin leverage to go with it. How broadly is the dialogue today across different customers in terms of those seeking out your services?

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : And Steve, your fiber work for utilities, it might be sort of an understated area, but it was up over 90% last quarter. It's now near 7% of revenue. When you think about these elevated growth rates you've seen -- obviously well in excess consolidated right now, is it -- is there something unusual within that? Is that specific to a few programs? And what do you think is doing that and how sustainable is it?

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Okay. And Steve, some of the supply constraints that particularly some of your consumers have talked about -- since you are closer to it, I guess I am curious of your thoughts of those, a near-term remedy to some of the fiber availability situation, or does this become potentially a prolonged situation? It doesn't seem overly burdensome into your growth at least with a few of the customers that we can see. But it's obviously a bit of a nuisance to some of the providers. So just curious of your thoughts there.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Yes. And Steve, from a strategic standpoint, if you look at Dycom's organic growth prospects, what timeframe you want to use, I'll say the next one to two years, they're probably as good as we've seen in a long time. What would be the reasoning to look at a potential acquisition here? Is it to fill a void in geography? Is it a service you don't have sort of critical skill on?

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Okay. And Steve, I'll combine this with the question that came in to me too. But this last quarter, you have announced a bunch of multi-region awards. And so I'm curious, your thoughts, the importance of scale from a provider like Dycom versus big fiber rollout plans with the buildout your customers are facing. And I think one of the inbounds that also came in was asking about with -- given this demand environment, how does the competitive environment look with that? Are you seeing any significant changes in your field? So you could address those two areas. I think that would be great. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 22, 2021 / 2:15PM, DY.N - Dycom Industries Inc at DA Davidson Diversified Industrials & Services Conference (Virtual)

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : And the competitive environment though, Steve, does it look dramatic (multiple speakers)?

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Okay. And Steve, one of the other questions out there that I've gotten is just vaccination situation. Are you seeing scenarios where your project donors are asking for vaccinated workforce on site? How do you adapt to that situation (multiple speakers)?

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Okay. Well, and then trying to stay on time here, Steve, I'll turn it to you for any closing comments.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Absolutely. Steve, Drew, really appreciate your time today. Thank you and I apologize too for the technical (multiple speakers).