IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today
announced financial results for the quarter ended June 30, 2023.
Third Quarter
2023 Highlights
-
Revenue of $584 million for the third quarter of fiscal 2023, an
increase of 3% compared with $567 million for the same quarter of
fiscal 2022
- Operating income of
$34.3 million for the third quarter of fiscal 2023, compared with
$15.6 million for the same quarter of fiscal 2022
- Net income
attributable to IES of $22.5 million for the third quarter of
fiscal 2023, compared with $9.5 million for the same quarter of
fiscal 2022, and diluted earnings per share attributable to common
stockholders of $0.81 for the third quarter of fiscal 2023,
compared with $0.33 for the same quarter of fiscal 2022
- Adjusted net income
attributable to IES (a non-GAAP financial measure, as defined
below) of $27.9 million for the third quarter of fiscal 2023,
compared with $12.1 million for the same quarter of fiscal
2022, and diluted adjusted earnings per share attributable to
common stockholders of $1.08 for the third quarter of fiscal 2023,
compared with $0.46 for the same quarter of fiscal 2022
- Remaining
performance obligations, a GAAP measure of future revenue to be
recognized from current contracts with customers, of approximately
$1.1 billion as of June 30, 2023
- Backlog (a non-GAAP financial measure,
as defined below) of approximately $1.5 billion as of June 30,
2023
Overview of Results
“We are pleased with our financial performance for
the third quarter of fiscal 2023," said Jeff Gendell, Chairman and
Chief Executive Officer. "Operating income increased substantially
compared with the same quarter of fiscal 2022, when results were
significantly impacted by execution difficulties on several
projects. All of our business segments have continued to perform
well in the face of lingering supply chain and labor challenges.
Year-over-year consolidated revenue increased 3% despite the loss
of revenue resulting from the divestiture of STR Mechanical in
October 2022 and a planned reduction in activity at a large,
underperforming branch in our Commercial & Industrial segment.
We continue to be surprised by the resilience of the U.S. economy,
despite consumer uncertainty and substantially higher interest
rates.
"Strategically, this was an important quarter for
IES as we effected a reorganization of our Residential segment to
enhance management effectiveness and reduce administrative costs.
Following substantial growth in the segment both organically and
through four major acquisitions since fiscal 2020, we saw the
opportunity to create a more efficient senior management structure.
In connection with these management changes, we incurred pretax
severance charges of $3.6 million during the quarter. In
addition, we are combining multiple administrative facilities into
a single location and are consolidating several underperforming
branches. Although we incurred elevated operating costs during the
quarter as these initiatives were implemented and we may incur some
additional costs as they are finalized in the fourth fiscal
quarter, we expect the reorganization to have a meaningfully
positive impact on the Residential segment's profitability as we
enter fiscal 2024. In addition, over the next several quarters, we
will focus on improving the segment's procurement process, as we
seek to leverage our vendor relationships to enhance margins.”
Our Communications segment’s revenue was
$141.6 million in the third quarter of fiscal 2023, a decrease
of 2% compared with the third quarter of fiscal 2022. Reduced
construction activity for e-commerce distribution centers was
largely offset by increased demand from high-tech manufacturing
customers. The segment's operating income increased to
$13.5 million for the third quarter of fiscal 2023, compared
with $4.3 million for the third quarter of fiscal 2022, as we
benefited from improved project execution. Our results for the
second quarter of fiscal 2022 included $7.8 million of losses
related to an expansion into a new, adjacent service area. We are
no longer performing this type of work and have completed all such
projects.
Our Residential segment’s revenue was
$318.0 million in the third quarter of fiscal 2023, an
increase of 5% compared with the third quarter of fiscal 2022,
reflecting continued strong demand, particularly in the Florida
single-family housing market, as well as several of our key
multi-family markets. The Residential segment’s operating income
was $15.4 million for the third quarter of fiscal 2023, a
decrease of 1% compared with the third quarter of fiscal 2022. The
benefits of the additional volume were largely offset by increased
general and administrative expenses, including $3.6 million of
pretax severance charges related to the reorganization of our
Residential leadership team.
Our Infrastructure Solutions segment’s revenue was
$57.1 million in the third quarter of fiscal 2023, an increase
of 43% compared with the third quarter of fiscal 2022, primarily
driven by continued strong demand in our generator enclosure
business. Operating income for the third quarter of fiscal 2023 was
$8.2 million, compared with an operating loss of
$0.4 million for the third quarter of fiscal 2022. Results for
the third quarter of fiscal 2023 included a $1.0 million pretax
gain from the sale of excess land adjacent to one of our operating
facilities. Results for the third quarter of fiscal 2022 were
negatively impacted by execution difficulties on certain projects,
supply chain disruptions, and labor availability, as well as
operating inefficiencies associated with the relocation of our
Tulsa, Oklahoma operation to a new, larger facility in order to
accommodate increased demand for our generator enclosure
products.
Our Commercial & Industrial segment’s revenue
was $67.8 million in the third quarter of fiscal 2023,
compared with $81.0 million in the third quarter of fiscal
2022. The decrease in revenue was largely driven by a planned
reduction in activity at an underperforming branch which
historically incurred substantial losses. As a result of
limitations placed on the size and duration of its new projects,
revenue at this branch decreased by $12.2 million for the third
quarter of fiscal 2023 compared with the third quarter of fiscal
2022. Segment operating income for the third quarter of fiscal 2023
was $2.6 million, compared with $0.3 million for the
third quarter of fiscal 2022. Our former STR Mechanical business,
which was sold at the beginning of the first quarter of fiscal
2023, contributed revenue of $4.5 million and an operating
loss of $27,000 during the third quarter of fiscal 2022. The sale
of STR resulted in a $13.0 million pretax gain in the first quarter
of fiscal 2023.
Matt Simmes, Chief Operating Officer, commented,
“As previously mentioned, we are optimistic that the recent
organizational changes at our Residential segment will benefit
operating results over the next 12 months. While we have been
keenly focused on this reorganization, we have also been
implementing improved processes and procedures across all our
business units, positioning us to continue our overall margin
expansion. Our growing backlog supports our view of modest revenue
growth for the remainder of fiscal 2023 and for fiscal 2024.”
“We generated operating cash flow of $96.6 million
in the first nine months of fiscal 2023, reflecting improved
profitability,” added Tracy McLauchlin, Chief Financial Officer.
“As a result, we ended the quarter with a cash balance, net of
debt, of $28.6 million, compared with debt, net of cash, of $56.8
million at September 30, 2022. We expect our operations to continue
to generate significant cash flow in the fourth quarter of fiscal
2023 and in fiscal 2024, and we are evaluating opportunities to
deploy this capital consistent with our capital allocation
strategy, including for share repurchases, organic investments and
suitable acquisitions. As previously discussed, we expect to
substantially utilize our federal tax net operating loss
carryforwards during fiscal 2023, and, therefore, began making
federal estimated tax payments in January 2023 in anticipation of
having a federal income tax obligation for the fiscal year. As a
result, we will have a higher cash tax rate for fiscal 2023
compared with 2022.”
Stock Buyback Plan
In December 2022, the Company’s Board of Directors
authorized and announced a stock repurchase program for purchasing
up to $40 million of our common stock from time to time, which
replaced the Company's previous program. During the quarter ended
June 30, 2023, the Company repurchased 234 shares at an average
price of $40.00 per share under its repurchase program. For the
nine months ended June 30, 2023, the Company repurchased 224,013
shares at an average price of $31.06. The Company had $37.6 million
remaining under its stock repurchase authorization at June 30,
2023.
Non-GAAP Financial Measures and Other
Adjustments
This press release includes adjusted net income
attributable to IES, adjusted diluted earnings per share
attributable to common stockholders, and backlog, and, in the
non-GAAP reconciliation tables included herein, adjusted net income
attributable to common stockholders, 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 common stockholders,
adjusted earnings per share attributable to common stockholders,
adjusted EBITDA and adjusted net income before taxes,
distinguishing certain nonrecurring events such as litigation
settlements, significant expenses associated with leadership
changes, or gains or losses from the sale of a business, 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 quarterly report on Form
10-Q for the fiscal quarter ended June 30, 2023, and any amendments
thereto.
About IES Holdings, Inc.
IES designs and installs integrated electrical and
technology systems and provides infrastructure products and
services to a variety of end markets, including data centers,
residential housing, and commercial and industrial facilities. Our
more than 8,000 employees serve clients in the United States. For
more information about IES, please visit www.ies-co.com.
Company Contact:
Tracy McLauchlinChief Financial OfficerIES
Holdings, Inc.(713) 860-1500
Investor Relations Contact:
Robert Winters or Stephen PoeAlpha 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 pandemics on our business, including
the potential for job site closures or work stoppages, supply chain
disruptions, delays in awarding new projects, construction delays,
reduced demand for our services, delays in our ability to collect
from our customers, the impact of third party vaccine mandates on
employee recruiting and retention, or illness of management or
other employees; 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; the possibility of inaccurate estimates used when
entering into fixed-price contracts 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, 2022 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 June 30, |
|
Nine Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenues |
$ |
584.4 |
|
|
$ |
567.3 |
|
|
$ |
1,728.2 |
|
|
$ |
1,549.4 |
|
Cost of services |
|
476.8 |
|
|
|
484.5 |
|
|
|
1,424.2 |
|
|
|
1,328.4 |
|
Gross profit |
|
107.6 |
|
|
|
82.8 |
|
|
|
304.0 |
|
|
|
221.0 |
|
Selling, general and administrative expenses |
|
74.3 |
|
|
|
67.1 |
|
|
|
211.4 |
|
|
|
189.9 |
|
Contingent consideration |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.2 |
|
Gain on sale of assets |
|
(1.0 |
) |
|
|
— |
|
|
|
(14.2 |
) |
|
|
(0.1 |
) |
Operating income |
|
34.3 |
|
|
|
15.6 |
|
|
|
106.6 |
|
|
|
31.0 |
|
Interest expense |
|
0.4 |
|
|
|
0.8 |
|
|
|
2.6 |
|
|
|
1.7 |
|
Other (income) expense, net |
|
(0.1 |
) |
|
|
0.2 |
|
|
|
(1.2 |
) |
|
|
0.8 |
|
Income from operations before income taxes |
|
34.1 |
|
|
|
14.7 |
|
|
|
105.2 |
|
|
|
28.4 |
|
Provision for income taxes |
|
8.2 |
|
|
|
3.6 |
|
|
|
26.4 |
|
|
|
6.3 |
|
Net income |
|
25.9 |
|
|
|
11.1 |
|
|
|
78.8 |
|
|
|
22.1 |
|
Net income attributable to noncontrolling interest |
|
(3.3 |
) |
|
|
(1.6 |
) |
|
|
(8.3 |
) |
|
|
(3.6 |
) |
Net income attributable to IES Holdings, Inc. |
$ |
22.5 |
|
|
$ |
9.5 |
|
|
$ |
70.5 |
|
|
$ |
18.5 |
|
|
|
|
|
|
|
|
|
Computation of earnings per share: |
|
|
|
|
|
|
|
Net income attributable to IES Holdings, Inc. |
$ |
22.5 |
|
|
$ |
9.5 |
|
|
$ |
70.5 |
|
|
$ |
18.5 |
|
Increase in noncontrolling interest |
|
(5.9 |
) |
|
|
(2.5 |
) |
|
|
(11.7 |
) |
|
|
(3.5 |
) |
Net income attributable to common stockholders of IES Holdings,
Inc. |
$ |
16.6 |
|
|
$ |
6.9 |
|
|
$ |
58.7 |
|
|
$ |
15.0 |
|
|
|
|
|
|
|
|
|
Earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
0.82 |
|
|
$ |
0.33 |
|
|
$ |
2.91 |
|
|
$ |
0.73 |
|
Diluted |
$ |
0.81 |
|
|
$ |
0.33 |
|
|
$ |
2.88 |
|
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per share: |
|
|
|
|
|
|
|
Basic (in thousands) |
|
20,182 |
|
|
|
20,718 |
|
|
|
20,198 |
|
|
|
20,731 |
|
Diluted (in thousands) |
|
20,406 |
|
|
|
20,939 |
|
|
|
20,404 |
|
|
|
21,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IES HOLDINGS, INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION OF ADJUSTED
NET INCOME ATTRIBUTABLETO IES HOLDINGS, INC. AND
ADJUSTED EARNINGS PER SHAREATTRIBUTABLE TO COMMON
STOCKHOLDERS(DOLLARS IN MILLIONS, EXCEPT PER SHARE
DATA)(UNAUDITED)
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income attributable to IES Holdings, Inc. |
$ |
22.5 |
|
|
$ |
9.5 |
|
|
$ |
70.5 |
|
|
$ |
18.5 |
|
Gain on sale of STR Mechanical |
|
— |
|
|
|
— |
|
|
|
(13.0 |
) |
|
|
— |
|
Gain on sale of real estate |
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
Severance expense |
|
3.6 |
|
|
|
— |
|
|
|
3.6 |
|
|
|
— |
|
Provision for income taxes |
|
8.2 |
|
|
|
3.6 |
|
|
|
26.4 |
|
|
|
6.3 |
|
Adjusted net income before taxes |
|
33.3 |
|
|
|
13.1 |
|
|
|
86.5 |
|
|
|
24.8 |
|
Current tax expense(1) |
|
(5.4 |
) |
|
|
(1.0 |
) |
|
|
(14.1 |
) |
|
|
(1.7 |
) |
Adjusted net income attributable to IES Holdings, Inc. |
|
27.9 |
|
|
|
12.1 |
|
|
|
72.4 |
|
|
|
23.1 |
|
|
|
|
|
|
|
|
|
Adjustments for computation of earnings per share: |
|
|
|
|
|
|
|
Increase in noncontrolling interest |
|
(5.9 |
) |
|
|
(2.5 |
) |
|
|
(11.7 |
) |
|
|
(3.5 |
) |
Adjusted net income attributable to common stockholders |
$ |
22.0 |
|
|
$ |
9.6 |
|
|
$ |
60.7 |
|
|
$ |
19.6 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per share attributable to common
stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
1.09 |
|
|
$ |
0.46 |
|
|
$ |
3.00 |
|
|
$ |
0.95 |
|
Diluted |
$ |
1.08 |
|
|
$ |
0.46 |
|
|
$ |
2.97 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per share: |
|
|
|
|
|
|
|
Basic (in thousands) |
|
20,182 |
|
|
|
20,718 |
|
|
|
20,198 |
|
|
|
20,731 |
|
Diluted (in thousands) |
|
20,406 |
|
|
|
20,939 |
|
|
|
20,404 |
|
|
|
21,276 |
|
|
|
|
|
|
|
|
|
(1) Represents the tax expense related to the current period
earnings which will be considered in the computation of tax to be
paid in cash for the full year, and not offset by the utilization
of net operating loss carryforwards |
|
IES HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
June 30, |
|
September 30, |
|
2023 |
|
2022 |
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
28.6 |
|
|
$ |
24.8 |
|
Accounts receivable: |
|
|
|
Trade, net of allowance |
|
340.8 |
|
|
|
370.7 |
|
Retainage |
|
75.4 |
|
|
|
65.1 |
|
Inventories |
|
102.6 |
|
|
|
96.3 |
|
Costs and estimated earnings in excess of billings |
|
44.5 |
|
|
|
52.1 |
|
Prepaid expenses and other current assets |
|
12.6 |
|
|
|
15.3 |
|
Total current assets |
|
604.5 |
|
|
|
624.4 |
|
Property and equipment, net |
|
56.6 |
|
|
|
54.4 |
|
Goodwill |
|
92.4 |
|
|
|
92.4 |
|
Intangible assets, net |
|
60.5 |
|
|
|
71.9 |
|
Deferred tax assets |
|
14.9 |
|
|
|
20.5 |
|
Operating right of use assets |
|
53.8 |
|
|
|
55.9 |
|
Other non-current assets |
|
17.0 |
|
|
|
15.1 |
|
Total assets |
$ |
899.7 |
|
|
$ |
934.7 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Accounts payable and accrued expenses |
$ |
261.1 |
|
|
$ |
317.0 |
|
Billings in excess of costs and estimated earnings |
|
109.1 |
|
|
|
84.9 |
|
Total current liabilities |
|
370.2 |
|
|
|
401.9 |
|
Long-term debt |
|
— |
|
|
|
81.6 |
|
Operating long-term lease liabilities |
|
36.1 |
|
|
|
38.1 |
|
Other tax liabilities |
|
19.3 |
|
|
|
9.9 |
|
Other non-current liabilities |
|
14.5 |
|
|
|
12.7 |
|
Total liabilities |
|
440.1 |
|
|
|
544.2 |
|
Noncontrolling interest |
|
44.5 |
|
|
|
29.2 |
|
STOCKHOLDERS’ EQUITY: |
|
|
|
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
0.2 |
|
|
|
0.2 |
|
Treasury stock, at cost |
|
(49.5 |
) |
|
|
(44.0 |
) |
Additional paid-in capital |
|
202.4 |
|
|
|
201.9 |
|
Retained earnings |
|
262.0 |
|
|
|
203.2 |
|
Total stockholders’ equity |
|
415.1 |
|
|
|
361.3 |
|
Total liabilities and stockholders’ equity |
$ |
899.7 |
|
|
$ |
934.7 |
|
|
IES HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
Nine Months Ended June 30, |
|
2023 |
|
2022 |
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
Net income |
$ |
78.8 |
|
|
$ |
22.1 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
Bad debt expense |
|
0.5 |
|
|
|
2.7 |
|
Deferred financing cost amortization |
|
0.2 |
|
|
|
0.1 |
|
Depreciation and amortization |
|
20.1 |
|
|
|
18.7 |
|
Gain on sale of assets |
|
(14.2 |
) |
|
|
(0.1 |
) |
Non-cash compensation expense |
|
3.2 |
|
|
|
2.9 |
|
Deferred income taxes |
|
9.4 |
|
|
|
1.8 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
25.4 |
|
|
|
(60.9 |
) |
Inventories |
|
(8.1 |
) |
|
|
(24.2 |
) |
Costs and estimated earnings in excess of billings |
|
7.6 |
|
|
|
(15.3 |
) |
Prepaid expenses and other current assets |
|
(8.0 |
) |
|
|
(13.4 |
) |
Other non-current assets |
|
2.0 |
|
|
|
(2.0 |
) |
Accounts payable and accrued expenses |
|
(44.8 |
) |
|
|
41.4 |
|
Billings in excess of costs and estimated earnings |
|
24.4 |
|
|
|
8.9 |
|
Other non-current liabilities |
|
0.2 |
|
|
|
(0.7 |
) |
Net cash provided by (used in) operating activities |
|
96.6 |
|
|
|
(17.8 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
Purchases of property and equipment |
|
(11.3 |
) |
|
|
(26.6 |
) |
Proceeds from sale of assets |
|
20.4 |
|
|
|
0.2 |
|
Cash paid in conjunction with equity investments |
|
(0.2 |
) |
|
|
(0.5 |
) |
Net cash provided by (used in) investing activities |
|
9.0 |
|
|
|
(26.9 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
Borrowings of debt |
|
1,759.0 |
|
|
|
1,383.7 |
|
Repayments of debt |
|
(1,841.6 |
) |
|
|
(1,327.2 |
) |
Cash paid for finance leases |
|
(2.6 |
) |
|
|
(1.1 |
) |
Distribution to noncontrolling interest |
|
(8.5 |
) |
|
|
(6.4 |
) |
Purchase of treasury stock |
|
(8.2 |
) |
|
|
(10.5 |
) |
Options exercised |
|
— |
|
|
|
0.1 |
|
Net cash provided by (used in) financing activities |
|
(101.9 |
) |
|
|
38.7 |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
3.7 |
|
|
|
(6.0 |
) |
CASH and CASH EQUIVALENTS, beginning of period |
|
24.8 |
|
|
|
23.1 |
|
CASH and CASH EQUIVALENTS, end of period |
$ |
28.6 |
|
|
$ |
17.1 |
|
|
IES HOLDINGS, INC. AND
SUBSIDIARIESOPERATING SEGMENT STATEMENT OF
OPERATIONS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenues |
|
|
|
|
|
|
|
Communications |
$ |
141.6 |
|
|
$ |
144.7 |
|
|
$ |
430.0 |
|
|
$ |
402.8 |
|
Residential |
|
318.0 |
|
|
|
301.8 |
|
|
|
942.2 |
|
|
|
803.9 |
|
Infrastructure Solutions |
|
57.1 |
|
|
|
39.8 |
|
|
|
159.0 |
|
|
|
123.7 |
|
Commercial & Industrial |
|
67.8 |
|
|
|
81.0 |
|
|
|
197.1 |
|
|
|
219.0 |
|
Total revenue |
$ |
584.4 |
|
|
$ |
567.3 |
|
|
$ |
1,728.2 |
|
|
$ |
1,549.4 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
Communications |
$ |
13.5 |
|
|
$ |
4.3 |
|
|
$ |
34.7 |
|
|
$ |
13.5 |
|
Residential(1) |
|
15.4 |
|
|
|
15.5 |
|
|
|
52.7 |
|
|
|
39.0 |
|
Infrastructure Solutions(2) |
|
8.2 |
|
|
|
(0.4 |
) |
|
|
21.1 |
|
|
|
2.0 |
|
Commercial & Industrial(3) |
|
2.6 |
|
|
|
0.3 |
|
|
|
14.0 |
|
|
|
(11.8 |
) |
Corporate |
|
(5.4 |
) |
|
|
(4.0 |
) |
|
|
(15.9 |
) |
|
|
(11.8 |
) |
Total operating income |
$ |
34.3 |
|
|
$ |
15.6 |
|
|
$ |
106.6 |
|
|
$ |
31.0 |
|
|
(1) Residential's operating income for the three and nine months
ended June 30, 2023 includes pretax severance expense of $3.6
million. |
(2) Infrastructure Solutions' operating income for the three and
nine months ended June 30, 2023 includes a pretax gain of $1.0
million related to the sale of real estate. |
(3) Commercial & Industrial's operating income for the
nine months ended June 30, 2023 includes a pretax gain of $13.0
million related to the sale of STR Mechanical. |
|
IES HOLDINGS, INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION OF ADJUSTED
EBITDA(DOLLARS IN
MILLIONS)(UNAUDITED)
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income attributable to IES Holdings, Inc. |
$ |
22.5 |
|
|
$ |
9.5 |
|
$ |
70.5 |
|
|
$ |
18.5 |
Provision for income taxes |
|
8.2 |
|
|
|
3.6 |
|
|
26.4 |
|
|
|
6.3 |
Interest & other expense, net |
|
0.2 |
|
|
|
1.0 |
|
|
1.4 |
|
|
|
2.6 |
Depreciation and amortization |
|
6.8 |
|
|
|
6.3 |
|
|
20.1 |
|
|
|
18.7 |
EBITDA |
$ |
37.8 |
|
|
$ |
20.4 |
|
$ |
118.4 |
|
|
$ |
46.1 |
Gain on sale of STR Mechanical |
|
— |
|
|
|
— |
|
|
(13.0 |
) |
|
|
— |
Gain on sale of real estate |
|
(1.0 |
) |
|
|
— |
|
|
(1.0 |
) |
|
|
— |
Non-cash equity compensation expense |
|
1.2 |
|
|
|
1.0 |
|
|
3.2 |
|
|
|
2.9 |
Severance expense |
|
3.6 |
|
|
|
— |
|
|
3.6 |
|
|
|
— |
Adjusted EBITDA |
$ |
41.7 |
|
|
$ |
21.4 |
|
$ |
111.2 |
|
|
$ |
49.0 |
|
IES HOLDINGS, INC. AND
SUBSIDIARIESSUPPLEMENTAL REMAINING PERFORMANCE
OBLIGATIONS AND NON-GAAP RECONCILIATION OF BACKLOG
DATA(DOLLARS IN
MILLIONS)(UNAUDITED)
|
June 30, |
|
September 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2022 |
Remaining performance obligations |
$ |
1,072 |
|
967 |
|
$ |
894 |
Agreements without an enforceable obligation (1) |
|
458 |
|
319 |
|
$ |
314 |
Backlog |
$ |
1,530 |
|
1,286 |
|
$ |
1,208 |
|
|
|
|
|
|
(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. |
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