Press Release Details

HOUSTON, May 8 -- Integrated Electrical Services, Inc. (NYSE: IEE) today announced financial results for the fiscal three months and six months ended March 31, 2001.

Revenues for the second quarter were $418.6 million, an increase of 13 percent compared to revenues of $370.3 million for the second quarter a year ago. Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter increased 65 percent to $28.3 million compared to $17.1 million for the 2000 second quarter. Net income for the second quarter increased to $8.1 million, or $0.20 per diluted share, compared to a net loss of $2.5 million or $0.06 per diluted share.

Revenues for the first six months of fiscal 2001 were $845.6 million, an increase of 20 percent compared to revenues of $705.5 million for the same period in fiscal 2000. First half EBITDA grew 58 percent to $54.7 million compared to $34.6 million for the first six months of fiscal 2000. Net income for the first six months of 2001 increased to $15.1 million, or $0.37 per diluted share, compared to $129 thousand, or $0.00 per diluted share for the same six months a year ago.

Revenues by segment were: Commercial/industrial revenues were $277.6 million, or 66 percent of total revenues for the quarter, representing a segment revenue increase of 12 percent over the same quarter last year; Residential revenues were $60.2 million, or 15 percent of total revenues, a slight segment revenue decrease of one percent from the same quarter last year; Communications revenues grew to $45.4 million, or 11 percent of total revenues, a segment revenue increase of 34 percent from the same quarter last year; Service revenues were $35.3 million, or eight percent of total revenues, a segment revenue increase of 29 percent from the same quarter last year.

"We are very pleased to report second quarter results at the upper end of our expectations despite a very cold and wet winter," stated H. David Ramm, president and CEO. "An above average amount of snow cover from December to February in the Central Plains, the Ohio Valley and into New England inhibited our operations somewhat. In Texas, where we have a significant presence, there was 8-10 inches more precipitation than last year during the first fiscal quarter, delaying project starts well into March and even later.

"We experienced significant improvement in both our gross and EBITDA margins, creating strong bottom line growth. The quarter ended on a strong note and we expect to see ongoing strength in our operations through the remainder of this fiscal year," concluded Ramm.

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.

Integrated Electrical Services expects earnings per share (EPS) for fiscal 2001 to grow between approximately 75 to 85 percent compared to fiscal 2000 results. Third fiscal quarter 2001 EPS is expected to range between $0.25 to $0.27 per share; and fourth quarter 2001 EPS between $0.30 to $0.32 per share.

Integrated Electrical Services has scheduled a conference call for Wednesday, May 9, 2001 at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). To take part in the conference call, dial (719) 457-2625 at least ten minutes before the call begins and ask for the Integrated Electrical Services first quarter conference call. A replay will be available approximately two hours after the live broadcast ends and will be accessible until May 16, 2001. To access the replay, dial (719) 457-0820 using a pass code of 689427.

Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting www.ielectric.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.

Integrated Electrical Services, Inc. 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. Integrated Electrical Services is geographically diverse with over 15,000 employees at over 150 locations serving the continental United States. For additional corporate information please call our investor hotline at 877-INFO-IEE (877-463-6433) or visit our web site at www.ielectric.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, our ability to incur additional debt in order to fund working capital or acquisitions, 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.