IFS Intercorp Financial Services Inc

MEDIA, Pa., May 3 /PRNewswire-FirstCall/ -- InfraSource Services, Inc. (NYSE:IFS), one of the largest specialty contractors servicing electric, natural gas and telecommunications infrastructure in the United States, today announced its results for the first quarter ended March 31, 2007. First Quarter Results Revenues for the first quarter 2007 were $203.8 million, down slightly from $214.3 million for the same quarter in 2006, due to lower volumes of work in our natural gas business related to declining housing starts, the planned exit of certain low margin natural gas contracts and the impact of adverse weather. The first quarter net loss of $1.0 million, or $0.02 per diluted share, included $2.2 million (net of tax), or $0.05 per diluted share, in transaction costs related to the pending merger with Quanta Services, Inc. (NYSE:PWR). Excluding the transaction costs, net income for the first quarter would have been $1.2 million, or $0.03 per diluted share. Those results compare with net income of $2.5 million, or $0.06 per diluted share, for the first quarter last year. Backlog At the end of the first quarter 2007, total backlog was $1.048 billion, 16% higher than at the end of the fourth quarter 2006. This increase was related primarily to additional electric backlog, including the previously announced contract with American Transmission Company. David Helwig, Chairman, President and Chief Executive Officer, said, "We are very pleased with the sequential increase in our backlog. The level of activity in our end markets remains strong indicating favorable prospects for continued long-term growth. We are actively involved in the merger planning process and very excited about the future of the combined company." Conference Call InfraSource has scheduled a conference call for May 3, 2007 at 11:00AM EST to discuss the results for the quarter and its guidance for the second quarter of 2007. This conference call will be webcast live on the InfraSource website at http://www.infrasourceinc.com/ by clicking on the investors, webcasts & presentations links. A webcast replay will be available immediately following the call at the same location on the website through May 2, 2008. For those investors who prefer to participate in the conference call by phone, please dial (480) 293-1744. An audio replay of the conference call will be available shortly after the call through May 10, 2007 by calling (303) 590-3030 and using passcode 3730816. For more information, please contact Mahmoud Siddig at Taylor Rafferty at (212) 889-4350. About InfraSource InfraSource Services, Inc. (NYSE:IFS) is one of the largest specialty contractors servicing electric, natural gas and telecommunications infrastructure in the United States. InfraSource designs, builds, and maintains transmission and distribution networks for utilities, power producers, and industrial customers. Further information can be found at http://www.infrasourceinc.com/. Safe Harbor Statement Certain statements contained in this press release are forward-looking statements. These forward-looking statements are based upon our current expectations about future events. When used in this press release, the words "believe," "anticipate," "intend," "estimate," "expect," "will," "should," "may," and similar expressions, or the negative of such words and expressions, are intended to identify forward-looking statements, although not all forward- looking statements contain such words or expressions. These forward-looking statements generally relate to our plans, objectives and expectations for future operations and are based upon management's current estimates and projections of future results or trends. However, these statements are subject to a number of known and unknown risks, uncertainties and other factors affecting our business that could cause our actual results to differ materially from those contemplated by the statements. You should read this press release completely and with the understanding that actual future results may be materially different from what we expect as a result of these risks and uncertainties and other factors, which include, but are not limited to: (1) the possibility that the pending merger with Quanta Services, Inc. will not be consummated; (2) technological, structural and cyclical changes that could reduce the demand for the services we provide; (3) loss of key customers; (4) the impact of variations between actual and estimated costs under our contracts, particularly our fixed-price contracts; (5) our ability to attract and retain qualified personnel; (6) our ability to successfully bid for and perform large-scale project work in accordance with our estimated costs; (7) work hindrance due to inclement weather events; (8) the definitive award of new contracts and the timing of the performance of those contracts; (9) project delays or cancellations; (10) the failure to meet schedule or performance requirements of our contracts; (11) the uncertainty of implementation of the recently enacted federal energy legislation; (12) the presence of competitors with greater financial resources and the impact of competitive products, services and pricing; (13) successful integration of acquisitions into our business; (14) close out of certain of our projects may or may not occur as anticipated or may be unfavorable to us; and (15) other factors detailed from time to time in our reports and filings with the Securities and Exchange Commission. Except as required by law, we do not intend to update forward-looking statements even though our situation may change in the future. INFRASOURCE SERVICES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations Three Months Three Months Ended Ended March 31, March 31, 2006 2007 (Unaudited) (In thousands, except per share data) Revenues $214,275 $203,804 Cost of revenues 185,424 175,409 Gross profit 28,851 28,395 Selling, general and administrative expenses 22,693 25,608 Merger related costs - 3,574 Provision (recoveries) for uncollectible accounts (10) 163 Amortization of intangible assets 257 60 Income (loss) from operations 5,911 (1,010) Interest income 236 328 Interest expense (2,111) (1,043) Other income 97 113 Income (loss) from continuing operations before income taxes 4,133 (1,612) Income tax expense (benefit) 1,666 (623) Income (loss) from continuing operations 2,467 (989) Discontinued operations: Loss from discontinued operations (net of income tax benefit of $(1) and $(11), respectively) (1) (17) Net income (loss) $2,466 $(1,006) Basic income (loss) per share: Income (loss) from continuing operations $0.06 $(0.02) Loss from discontinued operations - - Net income (loss) $0.06 $(0.02) Weighted average basic common shares outstanding 39,515 40,279 Diluted income (loss) per share: Income (loss) from continuing operations $0.06 $(0.02) Loss from discontinued operations - - Net income (loss) $0.06 $(0.02) Weighted average diluted common shares outstanding 40,116 40,279 INFRASOURCE SERVICES, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets December 31, March 31, 2006 2007 (Unaudited) (In thousands, except share data) Current assets: Cash and cash equivalents $26,209 $23,620 Contract receivables (less allowances for doubtful accounts of $3,770 and $3,843, respectively) 166,780 131,916 Costs and estimated earnings in excess of billings 59,012 57,883 Inventories 5,443 4,807 Deferred income taxes 8,201 7,820 Other current assets 6,384 8,756 Current assets - discontinued operations 746 424 Total current assets 272,775 235,226 Property and equipment (less accumulated depreciation of $73,302 and $77,265, respectively) 154,578 161,877 Goodwill 146,933 147,015 Intangible assets, net 900 839 Deferred charges and other assets, net 5,529 4,647 Assets held for sale 517 513 Total assets $581,232 $550,117 Current liabilities: Current portion of long-term debt $42 $38 Current portion of capital lease obligations 35 36 Short-term credit facility borrowings 1,077 - Other liabilities - related parties 766 420 Accounts payable 47,846 27,580 Accrued compensation and benefits 27,951 19,887 Other current and accrued liabilities 22,096 28,033 Accrued insurance reserves 36,166 34,276 Billings in excess of costs and estimated earnings 23,245 18,354 Deferred revenues 6,188 6,540 Total current liabilities 165,412 135,164 Long-term debt, net of current portion 50,014 50,009 Capital lease obligations, net of current portion 56 46 Deferred revenues 16,347 16,097 Other long-term liabilities - related party 900 922 Deferred income taxes 3,750 1,833 Other long-term liabilities 5,568 5,747 Total liabilities 242,047 209,818 Commitments and contingencies Shareholders' equity: Preferred stock, $.001 par value (authorized - 12,000,000 shares; 0 shares issued and outstanding) - - Common stock, $.001 par value (authorized - 120,000,000 shares; issued 40,263,739 and 40,339,623 shares, respectively, and outstanding - 40,233,869 and 40,309,753, respectively) 40 40 Treasury stock, at cost (29,870 shares) (137) (137) Additional paid-in capital 288,517 290,752 Retained earnings 50,785 49,609 Accumulated other comprehensive income (loss) (20) 35 Total shareholders' equity 339,185 340,299 Total liabilities and shareholders' equity $581,232 $550,117 INFRASOURCE SERVICES, INC. AND SUBSIDIARIES Supplemental Financial Data (Unaudited) (In millions) Increase/ Three Months Three Months (decrease) Ended Ended Ended Revenues by End Market March 31, 2006 March 31, 2007 $ % Electric - Transmission $57.8 27.0% $58.4 28.7% $0.6 1.0% - Substation 38.8 18.1% 46.3 22.7% 7.5 19.3% - Other Electric 37.3 17.4% 30.0 14.7% (7.3) -19.6% Subtotal 133.9 62.5% 134.7 66.1% 0.8 0.6% Natural Gas 53.9 25.2% 37.8 18.5% (16.1) -29.9% Telecommunications 24.3 11.3% 25.1 12.3% 0.8 3.4% Other 2.2 1.0% 6.2 3.0% 4.0 181.8% Total $214.3 100.0% $203.8 100.0% $(10.5) -4.9% Increase/ (decrease) Backlog by End Market March 31, 2006 March 31, 2007 $ % Electric - Transmission $176.1 19.1% $171.8 16.4% $(4.3) -2.4% - Substation 136.4 14.8% 181.1 17.3% 44.7 32.8% - Other Electric 72.7 7.9% 203.0 19.4% 130.3 179.2% Subtotal 385.2 41.7% 555.9 53.1% 170.7 44.3% Natural Gas 293.7 31.8% 231.5 22.1% (62.2) -21.2% Telecommunications 233.6 25.3% 237.7 22.7% 4.1 1.8% Other 10.6 1.1% 22.4 2.1% 11.8 111.3% Total $923.1 100.0% $1,047.5 100.0% $124.4 13.5% Increase/ (decrease) December 31, 2006 March 31, 2007 $ % Electric - Transmission $138.8 15.4% $171.8 16.4% $33.0 23.8% - Substation 132.0 14.6% 181.1 17.3% 49.1 37.2% - Other Electric 102.4 11.4% 203.0 19.4% 100.6 98.2% Subtotal 373.2 41.4% 555.9 53.1% 182.7 49.0% Natural Gas 245.6 27.2% 231.5 22.1% (14.1) -5.7% Telecommunications 254.0 28.2% 237.7 22.7% (16.3) -6.4% Other 29.3 3.2% 22.4 2.1% (6.9) -23.5% Total $902.1 100.0% $1,047.5 100.0% $145.4 16.1% Note: Percentages may not add due to rounding. CONTACT: Terence R. Montgomery 610-480-8000 Mahmoud Siddig 212-889-4350 DATASOURCE: InfraSource Services, Inc. CONTACT: Terence R. Montgomery, +1-610-480-8000, , or Mahmoud Siddig, +1-212-889-4350, , both of InfraSource Services, Inc. Web site: http://www.infrasourceinc.com/

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