Re: Brain/Brawn- Dycom(sym:DY) Q2 2000 CC
Thread- Dycom, IMVHO is well positioned for all that is going on in the telecommunications infrastructure game. Mostly they participate in the Last Mile sector. DY is broadband agnostic. Doesn't matter who wins. Telco or cableco. DY gets their business. Two things stood out on this CC.
First growth. They were up 65% on the top line. 80% on the bottom (yr/yr). Quite impressive. And there were no anomalies to account for this. Just good old business execution. Internal organic growth was quite hefty at a 35% increase over last year. I wish I could say they could do this quarter after quarter, but it's not in their forecast.
Second thing that stood out. SBC is apparently changing their RFP. Not only will companies such as Dycom be doing the wire work, but they will also do the procurement work too. It kind of left me scratching my head. Maybe it's not as complicated as I thought, but supposedly companies such as Dycom will also be equipment buyers for the stuff Bell South wants dropped into their CO. So it almost a turnkey situation Dycom will be supplying. I'm assumming this will increase both their revenues and margins. A heavy move to the, "brain," aspect. One would think this has got to be good for margins.
There is a ton of stuff on DY upstream. Lots of info to start DD on for those interested. Negatives are upstream too. -MikeM(From Florida)
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Financial, etc.
Q2 Sales $158,381,000 / Up 63.74%
Q2 Net Income $11,997,000 / Up 80.41%
Q2 Net $.31/share (Estimates were for $.25/share)
Backlog is still at $1,087,500,000
Internal organic growth of 34%
$26 million in operating cash flow.
DSO of 52.
Headcount 6,168. Last yr 4,063.
Top Five Customers
Bellsouth 19%
AT&T 13.1%
Comcast 8.6%
Sprint 5.9%
US West 5.7"
Customer Breakdown
Telco 43.8%
CATV 36.9%
Utility 3.2%
Electric Power 4.1%
Visibility
-Contract with Comcast. Just signed. 5 yr deal.
-Contract with Bell Atlantic signed.
-Contract with RCN signed.
-Just got some SBC Pronto business.
-Bellsouth is doing line conditioning for preparation to rollout DSL service.
-Lots of business. Everyone is just ramping up. Simple as that. |
