IES Holdings Terminates NOL Rights Plan
May 10 2021 - 8:00AM
IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today
announced that its Board of Directors has approved an amendment to
the Company’s Tax Benefit Protection Plan (the “NOL Rights Plan”)
to accelerate the expiration date of the NOL Rights Plan to May 21,
2021, effectively terminating the plan as of that date. The NOL
Rights Plan, which was previously set to expire on December 31,
2021, was intended to preserve the availability of IES’s federal
net operating loss carryforwards (“NOLs”) by deterring an
acquisition of the Company's stock in excess of a threshold amount
that could trigger an “ownership change” within the meaning of the
Internal Revenue Code. Shareholders are not required to take any
action in connection with the termination of the NOL Rights Plan.
Jeff Gendell, Chairman and Chief Executive
Officer of IES, said, “In reaching the decision to terminate the
NOL Rights Plan, the Board considered a variety of factors,
including our substantial NOL utilization in recent years and the
timeframe in which we expect to utilize our remaining NOLs, as well
as shareholder feedback on implementing best corporate governance
practices. We believe that the tax savings we expect to generate as
we use our remaining NOLs will further enhance our already strong
financial position and help support our growth strategy.”
Separately, IES has posted an updated investor presentation on
its website, which can be found at
www.ies-co.com/presentations.
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 across the United States. For more
information about IES, please visit www.ies-co.com.
Company Contact:
Tracy McLauchlin,Chief Financial OfficerIES Holdings, Inc.(713)
860-1500
Investor Relations Contact:
Robert Winters or Ross CollinsAlpha IR
Group312-445-2870IESC@alpha-ir.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 (NASDAQ:IESC)
Historical Stock Chart
From Mar 2024 to Apr 2024
IES (NASDAQ:IESC)
Historical Stock Chart
From Apr 2023 to Apr 2024