Integrated Electrical Services Announces Fiscal 2001 Fourth Quarter and Year-End Results
Integrated Electrical Services Announces Fiscal 2001 Fourth Quarter and Year-End Results
Nov 12, 2001 at 12:00 AM EST
Revenues for the fourth quarter were $423.6 million compared to revenues of $514.6 million for the fourth quarter a year ago. Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the fourth quarter were $21.5 million compared to EBITDA of $32.0 million for the 2000 fourth quarter. Net income for the fourth quarter was $3.1 million, or $0.08 per diluted share, which is in accordance with previous guidance, compared to $10.9 million or $0.27 per diluted share for the same period a year ago.
"Since we provided fourth quarter earnings guidance on October 16, we have aggressively taken steps to reduce costs," stated Roddy Allen, president and chief executive officer. "We have made significant cuts in SG&A resulting in a 15 to 20 percent cost reduction at the home office and have targeted a five to 10 percent cost reduction in the field. We will continue focusing on driving measurable improvements in our core electrical and communications contracting businesses."
Fourth quarter segment revenues compared to the same time frame last year were: Commercial/industrial revenues were $274.6 million in 2001 compared to $350.0 million in 2000. Residential revenues were $63.5 million in 2001 compared to $73.0 million in 2000. Communications revenues were $51.4 million in 2001 compared to $51.8 million in 2000. Service and maintenance revenues were $34.1 million in 2001 compared to $39.8 million reported in 2000.
Revenues for fiscal 2001 were $1.693 billion compared to revenues of $1.672 billion in fiscal 2000. EBITDA for 2001 increased to $109.2 million from $97.2 million reported in 2000. Net income for 2001 was $28.7 million, up from the $21.2 million reported for fiscal 2000. Diluted earnings per share for fiscal 2001 were $0.70, up from $0.52 per share reported last year.
As a percentage of total revenues for 2001, commercial/industrial revenues were 66 percent, residential revenues were 15 percent, communications revenues were 11 percent, and service and maintenance revenues were eight percent.
SFAS 142 -- "GOODWILL AND OTHER INTANGIBLE ASSETS"
IES is evaluating the impact of adopting SFAS 142 -- "Goodwill and Other Intangible Assets," and expects to adopt for the first quarter of fiscal 2002. The effect of this change in accounting principle will be the elimination of the amortization of goodwill, which had been amortized over 40 years. The carrying value of goodwill will instead be tested for impairment at least annually. IES believes the impairment charge upon adoption will be material, and based on current market capitalization could equate to substantially all of the company's recorded goodwill. IES does not believe this adoption will impact its free cash flows, operating income or compliance with its debt instruments. The company estimates that under this accounting, pro forma results for fiscal 2001, excluding any goodwill impairment charge, would have been earnings of $1.02 per diluted share, compared to the reported earnings of $0.70 per diluted share.
OUTLOOK
The following statements are based on the current expectations of the company. These statements are forward looking and actual results may differ materially as further elaborated in the last paragraph below.
IES expects earnings per share in the first quarter of 2002 to range between $0.11 to $0.14 per share, excluding any goodwill impairment charge and one time restructuring charges. For the full year 2002, the company expects earnings per share to range between $0.85 to $0.95 per share, excluding any goodwill impairment charge and one time restructuring charges. The foregoing expectations assume that the company adopts SFAS 142 for the first quarter of fiscal 2002 and include the company's estimate that the adoption will contribute earnings of $0.32 per share for the year to operating income.
CONFERENCE CALL
Integrated Electrical Services has scheduled a conference call for Tuesday, November 13, 2001 at 9:30 a.m. Eastern Time. To take part in the conference call, dial 719-457-2600 at least ten minutes before the call begins and ask for the Integrated Electrical Services fourth quarter conference call. A replay will be available approximately two hours after the live broadcast ends and will be accessible until November 20, 2001. To access the replay, dial 719-457-0820 and use a pass code of 58726.
Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting www.ies-co.com . To listen to the live call on the web, please visit the company's web site at least fifteen minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live web cast, an archive will be available shortly after the call.
IES is a leading national provider of electrical and communications solutions to the commercial and industrial, residential and service markets. The company offers electrical and communications system design and installation, contract maintenance and service to large and small customers, including general contractors, developers and corporations of all sizes. For additional corporate information, please visit our web site at www.ies-co.com .
This press release includes certain statements, including statements relating to the Company's expectations of its future operating results, that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on the Company's expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the statements. Such risks and uncertainties include, but are not limited to, the inherent uncertainties relating to estimating future results, fluctuations in operating results because of downturns in levels of construction, incorrect estimates used in entering into fixed price contracts, difficulty in managing the operation and growth of existing and newly acquired businesses, the high level of competition in the construction industry and due to seasonality. The foregoing and other factors are discussed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended September 30, 2000.
Subscribe to IES News
