IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today
announced financial results for the quarter and fiscal year ended
September 30, 2020.
Fourth Quarter 2020
Highlights
- Revenue of $330 million for the
fourth quarter of fiscal 2020, an increase of 13% compared with
$294 million for the fourth quarter of fiscal 2019
- Operating income of $14.4 million
for the fourth quarter of fiscal 2020, an increase of 4% compared
with $13.9 million for the same quarter of fiscal 2019. Operating
income for 2020 included a goodwill impairment charge of
$7.0 million and executive severance charges of
$1.8 million
- Net income attributable to IES of
$14.6 million, or $0.68 per diluted share, for the fourth quarter
of fiscal 2020, compared with $9.9 million, or $0.46 per diluted
share, for the same quarter of fiscal 2019. Net income attributable
to IES for the fourth quarter of fiscal 2020 includes goodwill
impairment (net of noncontrolling interest) and executive severance
charges of $5.7 million and $1.8 million, respectively, as
well as a tax benefit of $3.3 million from the release of a
valuation allowance on state deferred tax assets
- Adjusted net income attributable to
IES (a non-GAAP financial measure, as defined below) increased 78%
to $22.2 million, or $1.05 per diluted share, for the fourth
quarter of fiscal 2020, compared with $12.5 million, or $0.58
per diluted share, for the fourth quarter of fiscal 2019
- Remaining performance obligations, a
GAAP measure of future revenue to be recognized from current
contracts with customers, of approximately $505 million as of
September 30, 2020
- Backlog (a non-GAAP financial measure, as defined below) of
approximately $602 million as of September 30, 2020
Fiscal Year 2020 Highlights
- Revenue of $1.2 billion for fiscal
2020, an increase of 11% compared with $1.1 billion for fiscal
2019
- Operating income of $50.1 million
for fiscal 2020, an increase of 20% compared with $41.9 million for
fiscal 2019. Operating income for 2020 included a goodwill
impairment charge of $7.0 million and executive severance
charges of $1.8 million
- Net income attributable to IES of
$41.6 million, or $1.94 per diluted share, for fiscal 2020,
compared with $33.2 million, or $1.55 per diluted share, for fiscal
2019. Net income attributable to IES for fiscal 2020 includes
goodwill impairment (net of noncontrolling interest) and executive
severance charges of $5.7 million and $1.8 million,
respectively, as well as tax benefits of $3.2 million related
to the recognition of previously unrecognized tax benefits and $3.3
million from the release of a valuation allowance on state deferred
tax assets. Net income attributable to IES for fiscal 2019 includes
a tax benefit of $4.0 million associated with the recognition of
previously unrecognized tax benefits
- Adjusted net income attributable to IES increased 41% to
$54.2 million, or $2.57 per diluted share, for fiscal 2020,
compared with $38.4 million, or $1.79 per diluted share, for
fiscal 2019
Overview of Results
"I continue to be impressed with the commitment to safety and to
our customers the entire IES team has shown in the face of the
COVID-19 pandemic," said Jeffrey Gendell, Chairman and Chief
Executive Officer. “Despite this challenging economic environment,
our fiscal 2020 financial performance was strong, with consolidated
revenue increasing 11% over the prior year, led by significant
growth in our Communications and Residential businesses. Inclusive
of charges for goodwill impairment and executive severance, our
operating income still increased 20% for fiscal 2020 compared with
fiscal 2019."
For fiscal 2020, the Communications segment reported revenue of
$395.1 million, a 23% increase from fiscal 2019, driven primarily
by increased demand from data center and distribution center
customers, while operating income increased 63% to $40.4 million.
Reflecting increased activity in both the single-family and
multi-family housing markets, the Residential segment's revenue was
$411.8 million and operating income was $30.1 million in fiscal
2020, representing increases of 31% and 68%, respectively,
year-over-year. Revenue in the Infrastructure Solutions segment
decreased 6% to $128.4 million in fiscal 2020, primarily reflecting
the timing of project schedules at certain large customers as well
as reduced demand for motor repair services caused by temporary
COVID-19 related facility shutdowns by certain customers. Despite
this decrease in revenue, operating income increased 17% in fiscal
2020 to $14.6 million.
The Commercial & Industrial segment reported fiscal 2020
revenue of $255.5 million, a decline of 16% compared to 2019.
Although the business has maintained its focus on operating
improvements and cost reductions, its performance continued to be
affected by the ongoing COVID-19 pandemic and other market factors.
This resulted in delays in awarding new projects and decreased
demand for new construction in sectors such as retail, office and
hospitality, which, in turn, negatively impacted its revenue,
operating income and backlog. As a result of this increasingly
competitive and uncertain environment and the financial performance
of the segment, the Company recorded a non-cash goodwill impairment
charge of $7.0 million in the fourth quarter of fiscal
2020.
Tracy McLauchlin, Chief Financial Officer, added, “We generated
$77 million of operating cash flow during fiscal 2020 and
ended the year with a cash balance of $54 million and no
outstanding borrowings on our revolving credit facility, while
investing an aggregate of $41 million in acquisitions, capital
expenditures and share repurchases. Subsequent to the end of our
fiscal year, we successfully completed the acquisitions of K.E.P.
Electric, Inc. and Wedlake Fabricating, Inc., using cash on hand
while still maintaining ample liquidity. This liquidity, combined
with a fiscal year-end backlog of $602 million, an increase of $65
million from a year ago, positions us well for growth in fiscal
2021." Net
Operating Loss Carryforwards
The Company estimates that it has available Net Operating Loss
Carryforwards (NOLs) for U.S. federal income tax purposes of
approximately $217.3 million at September 30, 2020, including
approximately $128.0 million resulting from net operating losses on
which a deferred tax asset is not recorded. The Company's common
stock is subject to a Rights Plan dated November 8, 2016,
which is intended to assist in limiting the number of 5% or more
owners of the Company’s common stock and thereby reduce the risk of
a possible “change in ownership” under Section 382 of the Internal
Revenue Code of 1986, as amended. Any such “change in ownership”
under these rules would limit or eliminate the ability of the
Company to use its existing NOLs for federal income tax purposes.
There is no guarantee that the Rights Plan will achieve the
objective of preserving the value or realization of the NOLs.
Stock Buyback Plan
In 2015, the Company’s Board of Directors authorized and
announced a stock repurchase program for purchasing up to 1.5
million shares of our common stock from time to time, and on May 2,
2019, authorized the repurchase of up to an additional 1.0 million
shares. During the quarter ended September 30, 2020, the Company
repurchased 38,201 shares at an average price of $28.97 per share,
and for year-to-date fiscal 2020, the Company repurchased 263,160
shares at an average price of $23.29 per share. The Company had
993,825 shares remaining under its stock repurchase authorization
at September 30, 2020.
Non-GAAP Financial Measures and Other
Adjustments
This press release includes adjusted net income attributable to
IES, adjusted earnings per share attributable to IES, and backlog,
and, in the non-GAAP reconciliation tables included herein,
adjusted EBITDA and adjusted net income before taxes, each of which
is a financial measure not calculated in accordance with generally
accepted accounting principles in the U.S. (“GAAP”). Management
believes that these measures provide useful information to our
investors by, in the case of adjusted net income attributable to
IES, adjusted earnings per share attributable to IES, adjusted
EBITDA and adjusted net income before taxes, distinguishing certain
nonrecurring events such as litigation settlements or significant
expenses associated with leadership changes, or noncash events,
such as impairment charges or our valuation allowances release and
write-down of our deferred tax assets, or, in the case of backlog,
providing a common measurement used in IES's industry, as described
further below, and that these measures, when reconciled to the most
directly comparable GAAP measures, help our investors to better
identify underlying trends in the operations of our business and
facilitate easier comparisons of our financial performance with
prior and future periods and to our peers. Non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, financial information calculated in accordance with
GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP
financial measures, which has been provided in the financial tables
included in this press release.
Remaining performance obligations represent the unrecognized
revenue value of our contract commitments. While backlog is not a
defined term under GAAP, it is a common measurement used in IES’s
industry and IES believes this non-GAAP measure enables it to more
effectively forecast its future results and better identify future
operating trends that may not otherwise be apparent. IES’s
remaining performance obligations are a component of IES’s backlog
calculation, which also includes signed agreements and letters of
intent which we do not have a legal right to enforce prior to work
starting. These arrangements are excluded from remaining
performance obligations until work begins. IES’s methodology for
determining backlog may not be comparable to the methodologies used
by other companies.
For further details on the Company’s financial results, please
refer to the Company’s annual report on Form 10-K for the fiscal
year ended September 30, 2020, to be filed with the Securities and
Exchange Commission (“SEC”) by December 7, 2020, and any amendments
thereto.
About IES Holdings, Inc.IES is a holding
company that owns and manages operating subsidiaries that design
and install integrated electrical and technology systems and
provide infrastructure products and services to a variety of end
markets, including data centers, residential housing, and
commercial and industrial facilities. Our more than 5,000 employees
serve clients in the United States. For more information about IES,
please visit www.ies-co.com.
Certain statements in this release may be deemed
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, all of which are based upon various estimates
and assumptions that the Company believes to be reasonable as of
the date hereof. In some cases, you can identify forward-looking
statements by terminology such as “may,” “will,” “could,” “should,”
“expect,” “plan,” “project,” “intend,” “anticipate,” “believe,”
“seek,” “estimate,” “predict,” “potential,” “pursue,” “target,”
“continue,” the negative of such terms or other comparable
terminology. These statements involve risks and uncertainties that
could cause the Company’s actual future outcomes to differ
materially from those set forth in such statements. Such risks and
uncertainties include, but are not limited to, the impact of the
COVID-19 outbreak or future epidemics on our business, including
the potential for job site closures or work stoppages, supply chain
disruptions, construction delays, reduced demand for our services,
or our ability to collect from our customers; the ability of our
controlling shareholder to take action not aligned with other
shareholders; the possibility that certain tax benefits of our net
operating losses may be restricted or reduced in a change in
ownership or a change in the federal tax rate; the potential
recognition of valuation allowances or write-downs on deferred tax
assets; the inability to carry out plans and strategies as
expected, including our inability to identify and complete
acquisitions that meet our investment criteria in furtherance of
our corporate strategy, or the subsequent underperformance of those
acquisitions; competition in the industries in which we operate,
both from third parties and former employees, which could result in
the loss of one or more customers or lead to lower margins on new
projects; fluctuations in operating activity due to downturns in
levels of construction or the housing market, seasonality and
differing regional economic conditions; and our ability to
successfully manage projects, as well as other risk factors
discussed in this document, in the Company’s annual report on Form
10-K for the year ended September 30, 2020 and in the Company’s
other reports on file with the SEC. You should understand that such
risk factors could cause future outcomes to differ materially from
those experienced previously or those expressed in such
forward-looking statements. The Company undertakes no obligation to
publicly update or revise any information, including information
concerning its controlling shareholder, net operating losses,
borrowing availability, or cash position, or any forward-looking
statements to reflect events or circumstances that may arise after
the date of this release.
Forward-looking statements are provided in this
press release pursuant to the safe harbor established under the
Private Securities Litigation Reform Act of 1995 and should be
evaluated in the context of the estimates, assumptions,
uncertainties, and risks described herein.
General information about IES Holdings, Inc. can be found at
http://www.ies-co.com under "Investor Relations." The Company's
annual report on Form 10-K, quarterly reports on Form 10-Q and
current reports on Form 8-K, as well as any amendments to those
reports, are available free of charge through the Company's website
as soon as reasonably practicable after they are filed with, or
furnished to, the SEC.
IES HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS(DOLLARS IN MILLIONS, EXCEPT
PER SHARE
DATA)(UNAUDITED)
|
|
Three Months Ended September 30, |
|
Year Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues |
$ |
330.4 |
|
|
$ |
293.6 |
|
|
$ |
1,190.9 |
|
|
$ |
1,077.0 |
|
Cost of
services |
|
262.3 |
|
|
|
242.7 |
|
|
|
962.9 |
|
|
|
894.9 |
|
|
Gross profit |
|
68.2 |
|
|
|
50.9 |
|
|
|
228.0 |
|
|
|
182.1 |
|
Selling, general
and administrative expenses |
|
46.7 |
|
|
|
37.1 |
|
|
|
170.9 |
|
|
|
140.6 |
|
Goodwill
impairment expense |
|
7.0 |
|
|
|
— |
|
|
|
7.0 |
|
|
|
— |
|
Contingent
consideration |
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.4 |
) |
Loss on sale of
assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
Operating income |
|
14.4 |
|
|
|
13.9 |
|
|
|
50.1 |
|
|
|
41.9 |
|
Interest
expense |
|
(0.1 |
) |
|
|
0.3 |
|
|
|
0.8 |
|
|
|
1.9 |
|
Other (income)
expense, net |
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
Income from operations before
income taxes |
|
14.6 |
|
|
|
13.6 |
|
|
|
49.3 |
|
|
|
40.1 |
|
Provision for
income taxes |
|
1.1 |
|
|
|
3.6 |
|
|
|
8.7 |
|
|
|
6.7 |
|
|
Net income |
|
13.5 |
|
|
|
10.0 |
|
|
|
40.6 |
|
|
|
33.5 |
|
Net (income) loss
attributable to noncontrolling interest |
|
1.1 |
|
|
|
(0.1 |
) |
|
|
1.0 |
|
|
|
(0.3 |
) |
|
Net income attributable to IES
Holdings, Inc. |
$ |
14.6 |
|
|
$ |
9.9 |
|
|
$ |
41.6 |
|
|
$ |
33.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to IES Holdings, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.69 |
|
|
$ |
0.47 |
|
|
$ |
1.96 |
|
|
$ |
1.56 |
|
|
Diluted |
$ |
0.68 |
|
|
$ |
0.46 |
|
|
$ |
1.94 |
|
|
$ |
1.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (in thousands) |
|
20,725 |
|
|
|
20,911 |
|
|
|
20,796 |
|
|
|
21,082 |
|
|
Diluted (in thousands) |
|
21,047 |
|
|
|
21,184 |
|
|
|
21,092 |
|
|
|
21,315 |
|
IES HOLDINGS, INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION OF ADJUSTED
NET INCOME ATTRIBUTABLETO IES HOLDINGS, INC. AND
ADJUSTED EARNINGS PER SHAREATTRIBUTABLE TO IES
HOLDINGS, INC.(DOLLARS IN MILLIONS,
EXCEPT PER SHARE
DATA)(UNAUDITED)
|
|
Three Months Ended September 30, |
|
Year Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income
attributable to IES Holdings, Inc. |
$ |
14.6 |
|
|
$ |
9.9 |
|
|
$ |
41.6 |
|
|
$ |
33.2 |
|
Provision for
income taxes |
|
1.1 |
|
|
|
3.6 |
|
|
|
8.7 |
|
|
|
6.7 |
|
|
Adjusted net income before taxes |
|
15.8 |
|
|
|
13.5 |
|
|
|
50.3 |
|
|
|
39.9 |
|
Current tax
expense (1) |
|
(1.1 |
) |
|
|
(1.0 |
) |
|
|
(3.6 |
) |
|
|
(2.3 |
) |
Goodwill
impairment expense, net of noncontrolling interest |
|
5.7 |
|
|
|
— |
|
|
|
5.7 |
|
|
|
— |
|
Severance
expense |
|
1.8 |
|
|
|
— |
|
|
|
1.8 |
|
|
|
0.8 |
|
|
Adjusted net income
attributable to IES Holdings, Inc. |
$ |
22.2 |
|
|
$ |
12.5 |
|
|
$ |
54.2 |
|
|
$ |
38.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share attributable to IES Holdings, Inc.: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.07 |
|
|
$ |
0.59 |
|
|
$ |
2.61 |
|
|
$ |
1.81 |
|
|
Diluted |
$ |
1.05 |
|
|
$ |
0.58 |
|
|
$ |
2.57 |
|
|
$ |
1.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (in thousands) |
|
20,725 |
|
|
|
20,911 |
|
|
|
20,796 |
|
|
|
21,082 |
|
|
Diluted (in thousands) |
|
21,047 |
|
|
|
21,184 |
|
|
|
21,092 |
|
|
|
21,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents the tax expense for the current period which will be
paid in cash and not offset by the utilization of deferred tax
assets |
IES HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED
CONSOLIDATED BALANCE SHEETS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2020 |
|
2019 |
ASSETS |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
53.6 |
|
|
$ |
18.9 |
|
|
|
Accounts
receivable: |
|
|
|
|
|
|
|
|
Trade, net of allowance |
|
213.0 |
|
|
|
186.3 |
|
|
|
|
Retainage |
|
40.9 |
|
|
|
29.2 |
|
|
|
Inventories |
|
24.9 |
|
|
|
21.5 |
|
|
|
Costs and
estimated earnings in excess of billings |
|
29.9 |
|
|
|
29.9 |
|
|
|
Prepaid expenses
and other current assets |
|
9.2 |
|
|
|
10.6 |
|
|
Total current
assets |
|
371.5 |
|
|
|
296.5 |
|
|
|
Property and
equipment, net |
|
24.6 |
|
|
|
25.7 |
|
|
|
Goodwill |
|
53.8 |
|
|
|
50.6 |
|
|
|
Intangible assets,
net |
|
39.4 |
|
|
|
26.6 |
|
|
|
Deferred tax
assets |
|
33.8 |
|
|
|
40.9 |
|
|
|
Operating right of
use assets |
|
31.8 |
|
|
|
— |
|
|
|
Other non-current
assets |
|
5.8 |
|
|
|
4.9 |
|
Total assets |
$ |
560.5 |
|
|
$ |
445.3 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Accounts payable
and accrued expenses |
$ |
186.7 |
|
|
$ |
152.9 |
|
|
|
Billings in excess
of costs and estimated earnings |
|
55.7 |
|
|
|
40.6 |
|
|
Total current
liabilities |
|
242.4 |
|
|
|
193.5 |
|
|
Long-term
debt |
|
0.2 |
|
|
|
0.3 |
|
|
Operating
long-term lease liabilities |
|
20.5 |
|
|
|
— |
|
|
Other non-current
liabilities |
|
12.2 |
|
|
|
1.9 |
|
Total
liabilities |
|
275.4 |
|
|
|
195.7 |
|
Noncontrolling
interest |
|
1.8 |
|
|
|
3.3 |
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
|
|
Preferred
stock |
|
— |
|
|
|
— |
|
|
|
Common stock |
|
0.2 |
|
|
|
0.2 |
|
|
|
Treasury stock, at
cost |
|
(24.5 |
) |
|
|
(12.5 |
) |
|
|
Additional paid-in
capital |
|
200.6 |
|
|
|
192.9 |
|
|
|
Retained
earnings |
|
107.0 |
|
|
|
65.6 |
|
Total
stockholders’ equity |
|
283.3 |
|
|
|
246.2 |
|
Total liabilities
and stockholders’ equity |
$ |
560.5 |
|
|
$ |
445.3 |
|
IES HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
|
|
Year Ended September 30, |
|
|
|
|
2020 |
|
2019 |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net income |
|
$ |
40.6 |
|
|
$ |
33.5 |
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Bad debt expense |
|
|
1.9 |
|
|
|
0.6 |
|
|
|
Deferred financing cost
amortization |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
Depreciation and
amortization |
|
|
12.5 |
|
|
|
9.6 |
|
|
|
Loss on sale of assets |
|
|
— |
|
|
|
0.1 |
|
|
|
Non-cash compensation
expense |
|
|
3.3 |
|
|
|
2.4 |
|
|
|
Goodwill impairment
expense |
|
|
7.0 |
|
|
|
— |
|
|
|
Deferred income taxes |
|
|
5.1 |
|
|
|
5.7 |
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(25.4 |
) |
|
|
(35.3 |
) |
|
|
Inventories |
|
|
(2.8 |
) |
|
|
(0.7 |
) |
|
|
Costs and estimated earnings
in excess of billings |
|
|
0.4 |
|
|
|
1.6 |
|
|
|
Prepaid expenses and other
current assets |
|
|
(9.4 |
) |
|
|
(7.2 |
) |
|
|
Other non-current assets |
|
|
0.5 |
|
|
|
(0.4 |
) |
|
|
Accounts payable and accrued
expenses |
|
|
20.1 |
|
|
|
22.5 |
|
|
|
Billings in excess of costs
and estimated earnings |
|
|
14.0 |
|
|
|
6.7 |
|
|
|
Other non-current
liabilities |
|
|
8.8 |
|
|
|
(0.5 |
) |
Net cash provided
by operating activities |
|
|
76.7 |
|
|
|
38.7 |
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Purchases of
property and equipment |
|
|
(4.7 |
) |
|
|
(6.3 |
) |
|
Proceeds from sale
of assets |
|
|
0.1 |
|
|
|
0.5 |
|
|
Cash received
(paid) in conjunction with business combinations or
dispositions |
|
|
(29.0 |
) |
|
|
0.1 |
|
Net cash used in
investing activities |
|
|
(33.6 |
) |
|
|
(5.7 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Borrowings of
debt |
|
|
592.8 |
|
|
|
89.3 |
|
|
Repayments of
debt |
|
|
(592.8 |
) |
|
|
(119.5 |
) |
|
Finance lease
payment |
|
|
(0.2 |
) |
|
|
— |
|
|
Distribution to
noncontrolling interest |
|
|
(0.6 |
) |
|
|
(0.2 |
) |
|
Repurchases of
common stock |
|
|
(7.7 |
) |
|
|
(9.8 |
) |
Net cash used in
financing activities |
|
|
(8.5 |
) |
|
|
(40.3 |
) |
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
34.6 |
|
|
|
(7.3 |
) |
CASH, CASH
EQUIVALENTS, beginning of period |
|
|
18.9 |
|
|
|
26.2 |
|
CASH, CASH
EQUIVALENTS, end of period |
|
$ |
53.6 |
|
|
$ |
18.9 |
|
IES HOLDINGS, INC. AND
SUBSIDIARIESOPERATING SEGMENT STATEMENT OF
OPERATIONS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
|
Three Months Ended September 30, |
|
Year Ended September 30, |
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications |
|
$ |
118.4 |
|
|
$ |
91.0 |
|
|
$ |
395.1 |
|
|
$ |
321.2 |
|
|
Residential |
|
|
111.1 |
|
|
|
88.1 |
|
|
|
411.8 |
|
|
|
313.3 |
|
|
Infrastructure Solutions |
|
|
35.9 |
|
|
|
36.8 |
|
|
|
128.4 |
|
|
|
136.8 |
|
|
Commercial &
Industrial |
|
|
65.1 |
|
|
|
77.7 |
|
|
|
255.5 |
|
|
|
305.6 |
|
Total revenue |
|
$ |
330.4 |
|
|
$ |
293.6 |
|
|
$ |
1,190.9 |
|
|
$ |
1,077.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications |
|
$ |
16.8 |
|
|
$ |
8.5 |
|
|
$ |
40.4 |
|
|
$ |
24.8 |
|
|
Residential |
|
|
7.6 |
|
|
|
5.6 |
|
|
|
30.1 |
|
|
|
17.9 |
|
|
Infrastructure Solutions |
|
|
5.1 |
|
|
|
4.5 |
|
|
|
14.6 |
|
|
|
12.4 |
|
|
Commercial &
Industrial(1) |
|
|
(9.1 |
) |
|
|
(0.6 |
) |
|
|
(18.0 |
) |
|
|
2.1 |
|
|
Corporate(2) |
|
|
(6.0 |
) |
|
|
(4.0 |
) |
|
|
(17.0 |
) |
|
|
(15.4 |
) |
|
Total operating income (loss) |
|
$ |
14.4 |
|
|
$ |
13.9 |
|
|
$ |
50.1 |
|
|
$ |
41.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
goodwill impairment expense of $7.0M incurred in the three months
ended September 30, 2020 (2) Includes severance expense of $1.8M
and $0.8M incurred in the three months ended September 30, 2020 and
March 31, 2019, respectively |
IES HOLDINGS, INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION OF ADJUSTED
EBITDA(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
Three Months Ended September 30, |
|
Year Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income
attributable to IES Holdings, Inc. |
$ |
14.6 |
|
|
$ |
9.9 |
|
|
$ |
41.6 |
|
|
$ |
33.2 |
|
Provision for
income taxes |
1.1 |
|
|
3.6 |
|
|
8.7 |
|
|
6.7 |
|
Interest &
other (income) expense, net |
(0.2 |
) |
|
0.3 |
|
|
0.8 |
|
|
1.7 |
|
Depreciation and
amortization |
3.7 |
|
|
2.4 |
|
|
12.5 |
|
|
9.6 |
|
|
EBITDA |
$ |
19.3 |
|
|
$ |
16.2 |
|
|
$ |
63.6 |
|
|
$ |
51.1 |
|
Non-cash equity
compensation expense |
0.5 |
|
|
0.9 |
|
|
3.3 |
|
|
2.4 |
|
Goodwill
impairment expense, net of noncontrolling interest |
5.7 |
|
|
— |
|
|
5.7 |
|
|
— |
|
Severance
expense |
1.8 |
|
|
— |
|
|
1.8 |
|
|
0.8 |
|
|
Adjusted EBITDA |
$ |
27.3 |
|
|
$ |
17.0 |
|
|
$ |
74.4 |
|
|
$ |
54.3 |
|
IES HOLDINGS, INC. AND
SUBSIDIARIESSUPPLEMENTAL REMAINING PERFORMANCE
OBLIGATIONS AND NON-GAAP RECONCILIATION OF BACKLOG
DATA(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
Remaining performance obligations |
|
$ |
505 |
|
|
$ |
523 |
|
|
$ |
452 |
|
Agreements without an
enforceable obligation (1) |
|
|
97 |
|
|
|
74 |
|
|
|
85 |
|
Backlog |
|
$ |
602 |
|
|
$ |
597 |
|
|
$ |
537 |
|
|
|
|
|
|
|
|
|
|
|
(1) Our backlog contains signed agreements and letters of intent
which we do not have a legal right to enforce prior to work
starting. These arrangements are excluded from remaining
performance obligations until work begins. |
Contact: Tracy McLauchlin, CFO IES Holdings,
Inc.713-860-1500
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