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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________

FORM 8-K

CURRENT REPORT

Pursuant to Section   13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):

August 15, 2007

INTEGRATED ELECTRICAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-13783

 

76-0542208

 

 

 

 

 

(State or other jurisdiction of

 

(Commission

 

(IRS Employer

incorporation)

 

File Number)

 

Identification No.)


 

 

 

 

1800 West Loop South, Suite 500

 

 

Houston, Texas

 

77027

 

 

 

(Address of principal

 

(Zip Code)

executive offices)

 

 


 

Registrants telephone number, including area code: (713) 860-1500

 

(Former name or former address, if changed since last report): Not applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

 

 

 

 

Item 7.01 Regulation FD Disclosure.

On August 15, 2007, Integrated Electrical Services, Inc. (the "Company") and certain of its direct and indirect subsidiaries (together with the Company, the "Debtors"), filed their Quarterly Operating Report covering the quarter ended June 30, 2007 (the "Quarterly Operating Report"), with the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (the "Bankruptcy Court"). A copy of the Quarterly Operating Report is attached to, and incorporated by reference in, this Current Report on Form 8-K as Exhibit 99.1.    

The Quarterly Operating Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the quarterly reporting requirements of the Bankruptcy Court. The financial information in the Quarterly Operating Report is unaudited and does not purport to show the financial statements of any of the Debtors in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals, and disclosure items. The Debtors caution readers not to place undue reliance upon the Quarterly Operating Report. There can be no assurance that such information is complete. The Quarterly Operating Report may be subject to revision. The Quarterly Operating Report is in a format required by the Bankruptcy Code and should not be used for investment purposes. The information in the Quarterly Operating Report should not be viewed as indicative of future results.

In accordance with general instruction B.2 of Form 8-K, the information in this report (including exhibits) that is being furnished pursuant to Item 7.01 of Form 8-K shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth in such filing. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.

Certain statements in this release including statements regarding the restructuring plan and total estimated charges and cost reductions associated with this plan are "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. 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 company's ability to meet financial covenants; increased costs of surety bonds required for certain projects; the inherent uncertainties relating to estimating future operating results and the company's ability to generate sales, or operating income; potential difficulty in addressing material weaknesses in the inventory and control environment at one business unit that has been identified by the company and its independent auditors; fluctuations in operating results because of downturns in levels of construction particularly residential construction; inaccurate estimates used in entering into and executing contracts; inaccuracies in estimating revenue and percentage of completion on contracts; difficulty in managing the operation of existing entities; the high level of competition in the construction industry both from third parties and ex-employees; increases in costs or limitations on availability of labor, especially qualified electricians, increase in costs of commodities used in  our industry of steel, copper and gasoline; weather related delays; accidents resulting from the numerous physical hazards associated with the companys work; loss of key personnel particularly presidents of business units; litigation risks and uncertainties, including in connection with the ongoing SEC investigation; unexpected liabilities or losses associated with warranties; difficulties in integrating new types of work into existing subsidiaries; inability of the company to incorporate new accounting, control and operating procedures and centralization of back office functions; the loss of productivity, either at the corporate office or operating level resulting from changed procedures or management personnel; disruptions or inability to effectively manage  consolidations.

  You should understand that the foregoing, as well as other risk factors discussed in this document,  in IES' annual report on Form 10-K for the year ended September 30, 2006 and in IES' quarterly report on Form 10-Q for the quarter ended June, 2007, could cause future outcomes to differ materially from those expressed in such forward-looking statements. IES undertakes no obligation to publicly update or revise information concerning the companys restructuring efforts, borrowing availability, or its 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 us can be found at http://www.ies-co.com under "Investor Relations." Our 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 our website as soon as reasonably practicable after we file them with, or furnish them to, the SEC.

 


Item 9.01 Financial Statements and Exhibits.

 

(d)

Exhibits.

 

Exhibit
Number

 

  

Description

 

99.1 *

 

Quarterly Operating Report for the quarter ended June 30, 2007


_____________________

 

* Furnished herewith.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

INTEGRATED ELECTRICAL SERVICES, INC.

By:   /s/       Cu RT L. WARNOCK                                                            

Curt L. Warnock

Senior Vice President and General Counsel

Date: August 15, 2007

 

 

 

EXHIBIT INDEX

 

 

Exhibit
Number

 

  

Description

 

99.1 *

 

Quarterly Operating Report for the quarter ended June 30, 2007


 

________________________

 

*Furnished herewith.

 

 

Exhibit 99.1

 

 

 

 

 

 

 

 

 

 

CASE NAME: INTEGRATED ELECTRICAL SERVICES, INC. ET AL.

 

 

 

 

 

 

 

CASE NUMBER: 06-30602-BJH-11 Chapter 11

 

 

 

 

 

 

 

 

rwd, 7/97

 

 

 

 

 

UNITED STATES BANKRUPTCY COURT

 

 

 

 

NORTHERN DISTRICT OF TEXAS

 

 

 

 

 

DIVISION 6

 

 

 

 

 

 

 

 

 

 

FOR POST CONFIRMATION USE

 

 

 

 

 

 

 

 

 

 

QUARTERLY OPERATING REPORT

AND

QUARTERLY BANK RECONCILEMENT

 

 

 

 

 

 

 

 

 

 

In accordance with Title 28, Section 1746, of the United States Code, I declare under penalty of perjury that I have examined the attached Post Confirmation Quarterly Operating Report, and the Post Confirmation Quarterly Bank Reconcilement and, to the best of my knowledge, these documents are true, correct and complete. Declaration of the preparer (other than responsible party), is based on all information of which preparer has any knowledge.

 

RESPONSIBLE PARTY:

 

 

 

 

 

 

 

 

Original Signature of Responsible Party

 

 

 

 

 

 

 

Printed Name of Responsible Party

Raymond Guba

 

 

 

 

 

 

 

Title

Senior Vice President & Chief Financial Officer

 

 

 

 

 

 

Date

August 15, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

PREPARER:

 

 

 

 

 

 

 

 

 

Original Signature of Preparer

 

 

 

 

 

 

 

 

Printed Name of Preparer

 

 

 

 

 

 

 

 

Title

 

 

 

 

 

 

 

 

 

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

POST CONFIRMATION

 

 

 

 

 

 

 

QUARTERLY BANK RECONCILEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASE NAME: INTEGRATED ELECTRICAL SERVICES, INC. ET AL.

 

 

 

 

 

CASE NUMBER: 06-30602-BJH-11 Chapter 11

 

 

rwd, 7/97

 

 

 

 

 

 

 

 

 

The reorganized debtor must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposits, governmental obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets for each bank reconcilement if necessary.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDING: JUNE 30, 2007

*** ALL DOLLAR AMOUNTS IN THOUSANDS ***

 

 

 

 

Bank Reconciliations

Account #1

Account #2

Account #3

 

 

 

 

 

 

 

 

 

A.

Bank

Summary

Summary

Deposit

 

TOTAL

B.

Account Number

See Attached

 

In

 

C.

Purpose (Type)

Corporate

Subsidiaries

Transit

 

 

1.

Balance Per Bank Statement

$12,656

Not Available

 

 

NM

2.

Add: Total Deposits Not Credited

$0

Not Available

 

+

NM

3.

Subtract: Outstanding Checks

($1,317)

Not Available

 

-

NM

4.

Other Reconciling Items

($8)

Not Available

 

+ / -

NM

5.

Month End Balance Per Books

$11,331

 

($1,068)

0

=

$10,263

 

 

 

 

 

 

 

 

 

 

 

 

6.

Number of Last Check Written

See Attached

Not Available

Not Available

 

 

 

 

7.

Cash: Currency on Hand

$0

 

$0

0

+

$0

 

 

 

 

 

 

8.

Total Cash - End Of Month

$11,331

 

($1,068)

0

=

$10,263

 

 

 

 

 

 

 

 

CASH IN:

 

 

 

 

 

 

INVESTMENT ACCOUNTS

 

 

 

 

 

 

 

 

Date of

 

Type of

 

Bank, Account Name & Number

Purchase

 

Instrument

 

Value

 

 

 

 

 

 

 

 

9.

Bank of America, -522-1-4 EDW

various

Money Market

 

+

$48,267

10.

Bank of America, -506-1-0 EDW*

various

Money Market (restricted cash) (1)

+

$20,000

11.

BofA, Liquidity Mgmt Acct, -5754

various

Columbia Treasury Reserve

+

$6,673

12.

 

 

 

 

 

+

$0

13.

Total Cash Investments

 

 

 

 

=

$74,940

 

 

 

 

 

 

 

 

14.

TOTAL CASH

LINE 8 - PLUS LINE 13 = LINE 14 ****

 

$85,203

 

 

 

 

 

 

 

****

 

**** Must tie to Line 4, Quarterly Operating Report

 

 

 

 

 

 

(1) This account represents restricted cash held by Bank of America pursuant to the Company's revolving credit facility

 

and is classified as a current asset on the Company's Form 10-Q for the quarter ended June 30, 2007.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Operating Report

 

LOCATION NAME: INTEGRATED ELECTRICAL SERVICES, INC. ET AL.

 

 

 

ACCRUAL BASIS-5

 

 

 

 

 

 

 

 

 

 

CASE NUMBER: 06-30602-BJH-11 Chapter 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANK RECONCILIATIONS - ACCOUNTS 1 - 4

Account #1

Account #2

Account #3

Account #4

 

 

 

A. BANK:

Bank of America

Bank of America

First American

Amegy

 

 

 

B. ACCOUNT NUMBER:

375-666-2809

375-666-5754

335-519-729

316-474

 

 

 

C. PURPOSE (TYPE):

Business Capital

Operating Acct

P/R Tax Escrow

Master Concentration

Total #1 - 4

 

 

1.

BALANCE PER BANK STATEMENT

$ 7,131

$ 20

$ 4,012

$ (21)

$ 11,142

 

 

2.

ADD: TOTAL DEPOSITS NOT CREDITED

$ -

$ -

$ -

$ -

$ -

 

 

3.

SUBTRACT: OUTSTANDING CHECKS

$ -

$ -

$ -

$ -

$ -

 

 

4.

OTHER RECONCILING ITEMS

$ -

$ -

$ -

$ -

$ -

 

 

5.

MONTH END BALANCE PER BOOKS

$ 7,131

$ 20

$ 4,012

$ (21)

$ 11,142

 

 

6.

NUMBER OF LAST CHECK WRITTEN

n/a

n/a

n/a

n/a

n/a

 

 

 

 

 

 

 

 

 

 

 

BANK RECONCILIATIONS - ACCOUNTS 5 - 8

Account #5

Account #6

Account #7

Account #8

 

 

 

A. BANK:

Wells Fargo

Regions Bank

LaSalle

Bank of America

 

 

 

B. ACCOUNT NUMBER:

494-507-3211

78-8700-0154

5800384397

4426201230

 

 

 

C. PURPOSE (TYPE):

Master Concentration

Master Concentration

Master Concentration

BCBS

Total #5 - 8

 

 

1.

BALANCE PER BANK STATEMENT

$ 44

$ 33

$ -

$ -

$ 77

 

 

2.

ADD: TOTAL DEPOSITS NOT CREDITED

$ -

$ -

$ -

$ -

$ -

 

 

3.

SUBTRACT: OUTSTANDING CHECKS

$ -

$ -

$ -

$ -

$ -

 

 

4.

OTHER RECONCILING ITEMS

$ -

$ -

$ -

$ -

$ -

 

 

5.

MONTH END BALANCE PER BOOKS

$ 44

$ 33

$ -

$ -

$ 77

 

 

6.

NUMBER OF LAST CHECK WRITTEN

n/a

n/a

n/a

n/a

n/a

 

 

 

 

 

 

 

 

 

 

 

BANK RECONCILIATIONS - ACCOUNTS 9 - 12

Account #9

Account #10

Account #11

Account #12

 

 

 

A. BANK:

JP Morgan Chase

JP Morgan Chase

JPM Chase

Bank of America

 

 

 

B. ACCOUNT NUMBER:

323-297-692

601-854-698

601-854-706

442-620-1256

 

 

 

C. PURPOSE (TYPE):

Master Concentration

A/P Account (ZBA)

A/P Account (ZBA)

Payroll (ZBA)

Total 9 - 12

 

 

1.

BALANCE PER BANK STATEMENT

$ 325

$ -

$ -

$ -

$ 325

 

 

2.

ADD: TOTAL DEPOSITS NOT CREDITED

$ -

$ -

$ -

$ -

$ -

 

 

3.

SUBTRACT: OUTSTANDING CHECKS

$ -

$ (12)

$ -

$ -

$ (12)

 

 

4.

OTHER RECONCILING ITEMS

$ -

$ -

$ -

$ (8)

$ (8)

 

 

5.

MONTH END BALANCE PER BOOKS

$ 325

$ (12)

$ -

$ (8)

$ 305

 

 

6.

NUMBER OF LAST CHECK WRITTEN

n/a

7,778

3,486

n/a

n/a

 

 

 

 

 

 

 

 

 

 

 

BANK RECONCILIATIONS - ACCOUNTS 13 - 16

Account #13

Account #14

Account #15

Account #16

 

 

 

A. BANK:

Bank of America

JP Morgan Chase

Wachovia

US Bank

 

 

 

B. ACCOUNT NUMBER:

329-912-8100

601-854-714

2000-0140-45185

4346-84-7728

 

 

 

C. PURPOSE (TYPE):

A/P Account (ZBA)

A/P

Master Concentration

Master Concentration

Total 13 - 16

 

 

1.

BALANCE PER BANK STATEMENT

$ -

$ -

$ 866

$ 246

$ 1,112

 

 

2.

ADD: TOTAL DEPOSITS NOT CREDITED

$ -

$ -

$ -

$ -

$ -

 

 

3.

SUBTRACT: OUTSTANDING CHECKS

$ (4)

$ (2)

$ -

$ -

$ (6)

 

 

4.

OTHER RECONCILING ITEMS

$ -

$ -

$ -

$ -

$ -

 

 

5.

MONTH END BALANCE PER BOOKS

$ (4)

$ (2)

$ 866

$ 246

$ 1,106

 

 

6.

NUMBER OF LAST CHECK WRITTEN

7,922

15,835

n/a

n/a

n/a

 

 

 

 

 

 

 

 

 

 

 

BANK RECONCILIATIONS - ALL ACCOUNTS

Account #17

Account #18

 

 

TOTAL (1 - 18)

 

 

A. BANK:

Bank of America

Bank of America

 

 

 

 

 

B. ACCOUNT NUMBER:

329-912-8092

329-912-7839

 

 

All

 

 

C. PURPOSE (TYPE):

A/P Account (ZBA)

A/P Account (ZBA)

Total 17 - 18

 

Accounts

 

 

1.

BALANCE PER BANK STATEMENT

$ -

$ -

$ -

 

$ 12,656

 

 

2.

ADD: TOTAL DEPOSITS NOT CREDITED

$ -

$ -

$ -

 

$ -

 

 

3.

SUBTRACT: OUTSTANDING CHECKS

$ (742)

$ (557)

$ (1,299)

 

$ (1,317)

 

 

4.

OTHER RECONCILING ITEMS

$ -

$ -

$ -

 

$ (8)

 

 

5.

MONTH END BALANCE PER BOOKS

$ (742)

$ (557)

$ (1,299)

 

$ 11,331

 

 

6.

NUMBER OF LAST CHECK WRITTEN

16,691

3,542

n/a

 

See Details Above

 

 

 

 

 

 

 

 

 

 

 

INVESTMENT ACCOUNTS

 

 

 

 

 

 

 

 

 

DATE OF

TYPE OF

PURCHASE

CURRENT

 

 

 

BANK, ACCOUNT NAME & NUMBER

PURCHASE

INSTRUMENT

PRICE

VALUE

 

 

 

7.

Bank of America, 220-08522-1-4 EDW

various

Money Market

$ 48,267

$ 48,267

 

 

 

8.

Bank of America, 249-00506-1-0 EDW*

various

Money Market

$ 20,000

$ 20,000

 

 

 

9.

Bank of America, Mgmt Acct, 3756665754

various

Columbia Treas Rsv

$ 6,673

$ 6,673

 

 

 

10.

TOTAL INVESTMENTS

 

 

$ 74,940

$ 74,940

 

 

 

 

 

 

 

 

 

 

 

 

CASH

 

 

 

 

 

 

 

11.

CURRENCY ON HAND / DEPOSIT IN TRANSIT

 

 

 

$ -

 

 

 

 

 

 

 

 

 

 

 

 

12.

TOTAL CASH AT SUBSIDIARIES

 

 

 

$ (1,068)

 

 

 

 

 

 

 

 

 

 

 

 

13.

TOTAL CASH - END OF MONTH

 

 

 

$ 85,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

POST CONFIRMATION

 

QUARTERLY OPERATING REPORT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASE NAME: INTEGRATED ELECTRICAL SERVICES, INC. ET AL.

rwd, 7/97

 

 

 

 

 

CASE NUMBER: 06-30602-BJH-11 Chapter 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDING: JUNE 30, 2007

ALL DOLLAR AMOUNTS IN THOUSANDS

 

 

 

 

 

 

 

 

 

 

 

 

1.

BEGINNING OF QUARTER CASH BALANCE:

 

 

 

$83,522

 

 

 

 

 

 

CASH RECEIPTS:

CASH RECEIPTS DURING CURRENT QUARTER:

 

 

 

 

(a). Cash receipts from business operations

 

+

 

$237,422

(b). Cash receipts from loan proceeds

 

+

 

$0

(c). Cash receipts from contributed capital

 

+

 

$0

(d). Cash receipts from tax refunds

 

+

 

$0

(e). Cash receipts from other sources

+

$5,943

2.

TOTAL CASH RECEIPTS

 

=

 

$243,365

 

 

 

 

 

 

 

 

 

 

CASH DISBURSEMENTS:

(A). PAYMENTS MADE UNDER THE PLAN:

 

 

 

 

(1). Administrative

 

+

 

$0

(2). Secured Creditors

 

+

 

$0

(3). Priority Creditors

+

$0

(4). Unsecured Creditors

 

+

 

$0

 

(5). Additional Plan Payments

 

+

 

$0

(B). OTHER PAYMENTS MADE THIS QUARTER:

 

 

 

(1). General Business

 

+

 

($241,276)

(2). Other Disbursements

 

+

 

($408)

 

 

 

 

 

 

3.

TOTAL DISBURSEMENTS THIS QUARTER

 

=

 

($241,684)

 

 

 

 

 

 

 

 

 

 

4.

CASH BALANCE END OF QUARTER

 

=

 

Line 1 - Plus Line 2 - Minus Line 3 = Line 4

 

 

 

$85,203