Integrated Electrical Services Reports Fiscal 2015 Fourth Quarter and Year-End Results
FOURTH QUARTER AND FISCAL YEAR 2015 FINANCIAL HIGHLIGHTS
- Net income from continuing operations for the fourth quarter of fiscal 2015 of
$7.6 million , or$0.36 per share, compared to$2.0 million , or$0.09 per share, for the fourth quarter of fiscal 2014 - Net income from continuing operations for fiscal 2015 of
$16.9 million , or$0.79 per share, compared to$5.5 million , or$0.30 per share, for fiscal 2014 - Revenue of
$159.7 million for the fourth quarter of fiscal 2015, an increase of 17.5% compared with the fourth quarter of fiscal 2014, and revenue of$573.9 million for fiscal 2015, an increase of 12.0% compared with fiscal 2014 - Completion of three bolt-on acquisitions in fiscal 2015 and the first quarter of fiscal 2016
- Repurchase of 482,156 shares (approximately 2% of shares outstanding) for
$3.5 million during fiscal year 2015 - On
December 9, 2015 , the Board of Directors authorized a 500,000 share increase in the existing share repurchase program - Backlog of approximately
$270 million as ofSeptember 30, 2015 , as compared to approximately$241 million as ofJune 30, 2015 , and approximately$286 million as ofSeptember 30, 2014
MANAGEMENT COMMENTARY
"During this fiscal year, we executed on our capital allocation strategy by completing the acquisition of Southern Rewinding in our Infrastructure Solutions segment and opportunistically repurchasing our stock," said
STOCK BUYBACK PLAN
In
NET OPERATING LOSS CARRYFORWARDS (NOLs)
The Company estimates that it has available NOLs for U.S. federal income tax purposes of approximately $439 million at
NON-GAAP FINANCIAL MEASURES AND OTHER ADJUSTMENTS
This press release includes certain financial measures that are 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 reflecting additional ways to view aspects of the Company's operations that, when reconciled to the corresponding GAAP measures, help our investors to better identify underlying trends in 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. A reconciliation of the non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.
For further details on the Company's financial results, please refer to the Company's annual
report on Form 10-K for the fiscal year ended
ABOUT
IES is a holding company that owns and manages diverse operating subsidiaries, comprised of providers of infrastructure services and industrial products to a variety of end markets. Our over 3,100 employees serve clients in
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 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; 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; 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, seasonality and differing regional economic conditions; and our ability to successfully manage projects, as well as other risk factors discussed in this document and in the Company's annual report on Form 10-K for the year ended
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
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | 159.7 | $ | 135.9 | $ | 573.9 | $ | 512.4 | |||||||
Cost of services | 129.3 | 113.5 | 474.0 | 429.3 | |||||||||||
Gross profit | 30.4 | 22.3 | 99.9 | 83.1 | |||||||||||
Selling, general and administrative expenses | 22.8 | 19.7 | 81.4 | 75.5 | |||||||||||
Income from operations | 7.6 | 2.6 | 18.5 | 7.6 | |||||||||||
Interest expense, net | 0.3 | 0.3 | 1.1 | 1.6 | |||||||||||
Other expense (income), net | - | - | (0.2 | ) | (0.2 | ) | |||||||||
Provision for income taxes | (0.2 | ) | 0.3 | 0.7 | 0.7 | ||||||||||
Net income from continuing operations | 7.6 | 2.0 | 16.9 | 5.5 | |||||||||||
Net income (loss) from discontinued operations | (0.1 | ) | 0.1 | (0.3 | ) | (0.2 | ) | ||||||||
Net income | $ | 7.5 | $ | 2.1 | $ | 16.5 | $ | 5.3 | |||||||
Income (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.36 | $ | 0.09 | $ | 0.79 | $ | 0.30 | |||||||
Discontinued operations | $ | (0.01 | ) | $ | 0.01 | $ | (0.02 | ) | $ | (0.01 | ) | ||||
Basic | $ | 0.35 | $ | 0.10 | $ | 0.77 | $ | 0.29 | |||||||
Diluted income (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.36 | $ | 0.09 | $ | 0.79 | $ | 0.30 | |||||||
Discontinued operations | $ | (0.01 | ) | $ | 0.01 | $ | (0.02 | ) | $ | (0.01 | ) | ||||
Diluted | $ | 0.35 | $ | 0.10 | $ | 0.77 | $ | 0.29 | |||||||
Shares used in the computation of income (loss) per share: | |||||||||||||||
Basic (in thousands) | 21,298 | 21,710 | 21,481 | 18,418 | |||||||||||
Diluted (in thousands) | 21,343 | 21,766 | 21,526 | 18,473 |
NON-GAAP RECONCILIATION OF EBITDA | |||||||||||||||
(DOLLARS IN MILLIONS) | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Three Months Ended | Year Ended
| ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income from continuing operations | $ | 7.6 | $ | 2.0 | $ | 16.9 | $ | 5.5 | |||||||
Provision for income taxes | (0.2 | ) | 0.3 | 0.7 | 0.7 | ||||||||||
Interest expense, net | 0.3 | 0.3 | 1.1 | 1.6 | |||||||||||
Depreciation and amortization | 0.7 | 0.6 | 2.5 | 2.5 | |||||||||||
EBITDA | $ | 8.3 | $ | 3.2 | $ | 21.2 | $ | 10.4 | |||||||
SELECTED BALANCE SHEET AND CASH FLOW INFORMATION | ||||||||
(DOLLARS IN MILLIONS) | ||||||||
(UNAUDITED) | ||||||||
Selected Balance Sheet Data: | ||||||||
Cash and cash equivalents | $ | 49.4 | $ | 47.3 | ||||
Net working capital (excludes cash and cash equivalents) | $ | 31.6 | $ | 24.7 | ||||
$ | 22.0 | $ | 18.5 | |||||
Total assets | $ | 226.7 | $ | 201.1 | ||||
Total debt | $ | 10.2 | $ | 10.2 | ||||
Total stockholders' equity | $ | 101.4 | $ | 88.0 | ||||
Liquidity: | ||||||||
Cash and cash equivalents plus borrowing availability | $ | 72.2 | $ | 64.7 | ||||
Year Ended | ||||||||
2015 | 2014 | |||||||
Cash provided in operating activities | $ | 11.5 | $ | 12.6 | ||||
Cash (used) in investing activities | $ | (5.9 | ) | $ | (2.0 | ) | ||
Cash (used) provided in financing activities | $ | (3.6 | ) | $ | 16.0 |
SUMMARY OF OPERATING SEGMENT STATEMENTS OF OPERATIONS | |||||||||||||||
(DOLLARS IN MILLIONS) | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Three Months Ended | |||||||||||||||
Year Ended | |||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue | |||||||||||||||
Communications | $ | 46.6 | $ | 31.6 | $ | 141.9 | $ | 116.1 | |||||||
Residential | 54.6 | 49.7 | 206.3 | 182.5 | |||||||||||
Commercial & Industrial | 46.2 | 43.8 | 178.9 | 166.2 | |||||||||||
Infrastructure Solutions | 12.4 | 10.8 | 46.8 | 47.6 | |||||||||||
Total Revenue | $ | 159.7 | $ | 135.9 | $ | 573.9 | $ | 512.4 | |||||||
Operating Income | |||||||||||||||
Communications | $ | 4.3 | $ | 2.7 | $ | 10.1 | $ | 7.7 | |||||||
Residential | 3.5 | 1.8 | 10.0 | 5.9 | |||||||||||
Commercial & Industrial | 2.3 | 1.1 | 6.5 | 3.7 | |||||||||||
Infrastructure Solutions | 0.2 | - | 1.1 | 0.7 | |||||||||||
Corporate | (2.7 | ) | (3.0 | ) | (9.3 | ) | (10.3 | ) | |||||||
Total Operating Income | $ | 7.6 | $ | 2.6 | $ | 18.5 | $ | 7.6 | |||||||
Source:Tracy McLauchlin , CFOIntegrated Electrical Services, Inc. 713-860-1500
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