UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 2001
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _____ to _____.
Commission File No. 1-13783
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
INTEGRATED ELECTRICAL SERVICES, INC.
401(k) RETIREMENT SAVINGS PLAN
1800 West Loop South, Suite 500
Houston, Texas 77027
B. Name and issuer of the securities held pursuant to the plan and the
address of its principal executive office:
INTEGRATED ELECTRICAL SERVICES, INC.
1800 West Loop South, Suite 500
Houston, Texas 77027
INTEGRATED ELECTRICAL SERVICES, INC.
401(k) RETIREMENT SAVINGS PLAN
Financial Statements
As of December 31, 2001
Together With Auditors' Report
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
Report of Independent Public Accountants.....................................................................2
Financial Statements-
Statements of Net Assets Available for Benefits as of December 31, 2001 and 2000..........................3
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2001............4
Notes to Financial Statements as of December 31, 2001 and 2000...............................................5
Supplemental Schedules-
Schedule I--Schedule H, Line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2001.......10
Schedule II--Schedule G, Part III - Schedule of Nonexempt Transactions for the Year Ended
December 31, 2001........................................................................................11
-1-
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of the
Integrated Electrical Services, Inc.
401(k) Retirement Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Integrated Electrical Services, Inc. 401(k) Retirement Savings Plan (the
Plan) as of December 31, 2001 and 2000, and the related statement of changes in
net assets available for benefits for the year ended December 31, 2001. These
financial statements and the supplemental schedules referred to below are the
responsibility of the Administrative Committee. Our responsibility is to express
an opinion on these financial statements and supplemental schedules based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by the Administrative Committee, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2001 and 2000, and the changes in net assets available for benefits
for the year ended December 31, 2001, in conformity with accounting principles
generally accepted in the United States.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule H, line 4i -
schedule of assets (held at end of year) as of December 31, 2001, and schedule
G, part III - schedule of nonexempt transactions for the year ended December 31,
2001, are presented for purposes of additional analysis and are not a required
part of the basic financial statements but are supplementary information
required by the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. The
supplemental schedules have been subjected to the auditing procedures applied in
our audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
ARTHUR ANDERSEN LLP
Houston, Texas
May 8, 2002
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INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2001 AND 2000
2001 2000
------------- -------------
ASSETS:
Investments, at fair value $ 101,093,144 $ 92,068,928
Accrued income 26,989 38,545
Contributions receivable-
Employee 309,044 249,445
Employer -- 46,874
Cash, noninterest-bearing 6,000 354,524
------------- -------------
Total assets 101,435,177 92,758,316
LIABILITIES:
Accrued liabilities 142,192 349,281
Excess contributions payable 429,555 --
------------- -------------
Total liabilities 571,747 349,281
------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS $ 100,863,430 $ 92,409,035
============= =============
The accompanying notes are an integral part of these financial statements.
-3-
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2001
NET INVESTMENT INCOME (LOSS):
Interest on cash and cash equivalents $ 38,123
Interest on participant loans 247,277
Net investment loss from common/collective trusts (1,624,650)
Net investment loss from mutual funds (8,967,395)
Net depreciation in fair value of common stock (462,654)
-------------
(10,769,299)
CONTRIBUTIONS:
Employee 18,178,010
Employer 3,259,946
Rollovers 936,896
-------------
22,374,852
TRANSFERS FROM OTHER PLANS (Note 4) 5,689,855
WITHDRAWALS (7,938,956)
EXCESS CONTRIBUTIONS (429,555)
ADMINISTRATIVE EXPENSES (472,502)
-------------
NET INCREASE 8,454,395
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 92,409,035
-------------
End of year $ 100,863,430
=============
The accompanying notes are an integral part of this financial statement.
-4-
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
1. DESCRIPTION OF THE PLAN:
The following description of the Integrated Electrical Services, Inc. 401(k)
Retirement Savings Plan (the Plan) is provided for general information purposes
only. Participants should refer to the Plan document for more complete
information about the Plan's provisions.
General
The Plan is a defined contribution plan established by Integrated Electrical
Services, Inc. (the Company), on January 1, 1999. The Plan was established under
the provisions of Section 401(a) of the Internal Revenue Code of 1986, as
amended (the Code), which includes a qualified deferred arrangement as described
in Section 401(k) of the Code, for the benefit of eligible employees of the
Company. The Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974, as amended (ERISA).
The Company, as Plan administrator, established an administrative committee (the
Administrative Committee). The Administrative Committee is responsible for the
general administration of the Plan. The Administrative Committee is given all
powers necessary to enable it to carry out its duties including, but not limited
to, the power to interpret the Plan.
Trustee
Hand Benefit and Trust Company (the Trustee), formerly American Industries Trust
Company, is the trustee of the Plan.
Trustee fees and administrative costs, excluding participant loan fees, incurred
during 2001 were paid either by the Plan or through unallocated forfeitures
within the Plan unless the Company elected to pay such expenses on behalf of the
Plan. Participant loan fees were paid by the participants requesting the loan.
Eligibility
All employees, excluding members of a collective bargaining unit, nonresident
aliens, leased employees and employees of an affiliate of the Company that has
not adopted the Plan, are eligible to participate in the Plan on January 1,
April 1, July 1 or October 1 immediately following the later of the date on
which he or she completes six months of service or attains age 21. Effective
January 1, 2002, eligible employees are able to participate in the Plan on the
first day of each month immediately following the later of the date on which he
or she completes 60 days of service or attains age 21.
Rollovers
Participants may contribute amounts representing distributions from other
qualified defined benefit or defined contribution plans.
-5-
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
(Continued)
Contributions
Eligible employees may contribute, on a pretax basis, an amount up to 20 percent
of their compensation, as defined. Employee contributions are subject to certain
limitations.
Employee contributions for the year ended December 31, 2001, include excess
contributions which will be refunded to participants subsequent to year-end as
the contributions were determined to be in excess of maximum contribution levels
for certain participants. A liability for excess contribution refunds in the
amount of $429,555 and $0 has been reflected in the statements of net assets
available for benefits as of December 31, 2001 and 2000, respectively.
The Company will make matching contributions based on a percentage, if any, as
determined each Plan year by the Company. During 2001, the Company made matching
contributions equal to 25 percent of the first 6 percent of each participant's
contribution.
The Plan allows the Company to make a "true-up" matching contribution at its
sole discretion at the end of a Plan year for eligible participants in an amount
which, when aggregated with the Company contributions made during the year, will
produce aggregate matching contributions equal to the percentage established by
the Company. The Company did not elect to make a "true-up" matching contribution
for the 2001 Plan year.
Participant Accounts
Each participant's account is credited with the participant's contributions, the
Company's matching contributions and the participant's share of earnings, losses
and any appreciation or depreciation of the funds invested. The benefit to which
a participant is entitled is the benefit that can be provided from the
participant's account.
Loans
Participants may borrow from their before-tax contribution accounts a minimum of
$1,000 to a maximum equal to the lesser of (a) $50,000 minus any outstanding
loan balance(s) in the last 12 months or (b) 50 percent of their vested account
balances. No more than one loan is allowed per account at any given time.
Interest rates are established by the Administrative Committee. Loans must be
repaid within five years. Principal and interest are repaid through after-tax
payroll deductions.
Investment Options
The Plan allows for participant transactions on the first day of any given month
with respect to (a) the transfer of funds from one investment alternative to
another, (b) changes in the contribution level and (c) changes in the investment
of new contributions. Participants may cease their deferrals at the beginning of
any payroll period with proper notice. The Plan provides for contributions to be
invested by the Trustee among the Company's common stock, five mutual funds and
five common/collective trust funds in accordance with participant investment
elections and the provisions of the trust agreement.
The Trustee utilizes a short-term investment account to invest assets of the
Plan pending investment into the directed funds.
-6-
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
(Continued)
Vesting
Participants are 100 percent vested in their contributions, rollover
contributions and earnings thereon. Participants vest in their Company matching
contributions, and earnings thereon, as follows:
Vested
Completed Years of Service Percentage
-------------------------- ----------
Less than 3 0%
3 or more 100
Forfeitures
Forfeitures result from termination of employment before full vesting has
occurred. Forfeitures are first used to pay the Plan's ordinary and necessary
administrative expenses and then any remaining forfeitures are used to reduce
the Company matching contributions. At December 31, 2001 and 2000, forfeited
nonvested accounts totaled $396,368 and $314,458, respectively. During 2001,
approximately $170,000 of forfeitures were utilized to pay Plan expenses and
reduce Company matching contributions.
Withdrawals
Once age 59-1/2 is attained, a participant may withdraw some or all of the
vested amounts in his or her account. If the participant is younger than 59-1/2,
he or she may withdraw some or all of the vested amounts in his or her account,
excluding earnings thereon, only in the event of financial hardship. Prior to
March 31, 2001, and upon retirement, termination of employment, death or
permanent disability, participants or their beneficiaries could choose among
monthly installments, a life annuity, a joint and 50 percent or 100 percent
survivor annuity, a life annuity with a guaranteed payment period of five, 10,
15 or 20 years or a lump sum equal to the vested value of their accounts.
Effective March 31, 2001, all new distributions will be paid in the form of a
lump sum equal to the vested value of their accounts.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
The Trustee provides statements, prepared on a cash basis of accounting, to the
Company. Adjustments have been made to convert the statements to an accrual
basis for reporting purposes. Withdrawals are recorded when paid.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to use estimates and
assumptions that affect the reported amounts of assets and liabilities, and
changes therein, and disclosure of contingent assets and liabilities. Actual
results could differ from those estimates.
-7-
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
(Continued)
Investment Valuation and
Gains (Losses) on Investments
Investments are reported at market value. Mutual funds and the Company's common
stock are valued based upon quoted market prices. The common/collective trust
funds are valued at fair value based upon the market value of the underlying
assets. The Hand Benefit and Trust Company (formerly American Industries)
Composite Employee Benefit Group Trust - Short-Term Income Fund (the Short-Term
Income Fund) is a fully benefit-responsive common/collective trust fund
investing in short-term debt instruments, including guaranteed investment
contracts. The investments of the Short-Term Income Fund are stated at amortized
cost which approximates fair value. Participant loans are valued at cost, which
approximates fair value. With regard to the common/collective trusts and the
mutual funds, dividends, interest, realized gains (losses) on the sale of
investments and unrealized appreciation (depreciation) in the market value of
investments are shown as net investment gain (loss) from investments in the
statement of changes in net assets available for benefits. Realized gains
(losses) on the sale of common stock and unrealized appreciation (depreciation)
in the market value of common stock are shown as net appreciation (depreciation)
in market value of common stock in the statement of changes in net assets
available for benefits.
Purchase and sales of securities are recorded on a trade-date basis. Dividends
are recorded on the ex-dividend date.
3. INVESTMENTS:
The following table presents investments that represent 5 percent or more of the
Plan's net assets for December 31, 2001 and 2000:
2001-
American Growth Fund of America $ 19,059,759
Hand Benefit and Trust Company (formerly American Industries)
Composite Employee Benefit Group Trust-
Benefit Trust Equity Index 500 Fund 12,133,183
Short-Term Income Fund 10,655,399
SMART Aggressive Fund 5,197,719
SMART Moderate Fund 6,466,815
Fidelity Advisor Government Investment Portfolio 6,830,047
Investment Company of America 6,368,231
Janus Worldwide Fund 13,813,496
MFS Capital Opportunities Fund 10,408,388
2000-
American Growth Fund of America 18,504,237
American Industries Composite Employee Benefit Trust-
Benefit Trust Equity Index 500 Fund 11,881,014
Short-Term Income Fund 7,735,998
SMART Aggressive Fund 4,827,056
SMART Moderate Fund 5,444,258
Investment Company of America 5,258,071
Janus Worldwide Fund 14,296,146
MFS Capital Opportunities Fund 11,306,399
-8-
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
(Continued)
4. TRANSFERS FROM OTHER PLANS:
During 2001, account balances of employees of various acquired companies who had
participated in plans sponsored by the acquired companies were transferred to
the Plan. Transfers from the acquired companies' plans totaled $5,689,855.
5. RISKS AND UNCERTAINTIES:
The Plan provides for various investments in common/collective funds, mutual
funds and the Company's common stock. Investment securities, in general, are
exposed to various risks, such as interest rate, credit and overall market
volatility risks. Due to the level of risk associated with certain investment
securities, it is reasonably possible that changes in the values of investment
securities will occur in the near term.
6. TAX STATUS:
The Plan obtained the latest determination letter on October 18, 2001, in which
the Internal Revenue Service (IRS) stated that the Plan, as then designed, was
in compliance with the applicable requirements of the Code. The Plan has been
amended since receiving the determination letter. Even so, the Administrative
Committee believes that the Plan is currently designed and being operated in
compliance with the applicable requirements of the Code and that the Plan was
qualified and the related trust was tax-exempt as of December 31, 2001 and 2000.
7. PRIORITIES UPON TERMINATION:
Under the terms of the Plan, the Company has the right at any time to terminate
the Plan subject to the provisions of ERISA. In the event of Plan termination,
participants would become fully vested in the balance of their accounts. The
Trustee would then commence distribution as directed by the Administrative
Committee.
8. RELATED-PARTY TRANSACTIONS:
Certain Plan investments are units of common/collective trust funds managed and
distributed by Hand Benefit and Trust Company. Hand Benefit and Trust Company is
the Trustee for the Plan; therefore, these transactions qualify as
party-in-interest transactions. In addition, the Plan provides for investment in
Company common stock and participant loans, which also qualify as
party-in-interest transactions.
9. NONEXEMPT TRANSACTIONS:
As reported on Schedule II, certain Plan contributions were not remitted to the
trust within the time frame specified by the Department of Labor's Regulation 29
CFR 2510.3-102, thus constituting nonexempt transactions between the Plan and
the Company for the year ended December 31, 2001. The Company remitted earnings
on the nonexempt transactions subsequent to year-end.
10. SUBSEQUENT EVENTS:
The Plan was amended effective January 1, 2002, to incorporate certain
provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001. The
Plan changes include, but were not limited to, the ability to make catch-up
contributions up to $1,000 by participants reaching age 50 within the 2002
Plan-year and who are contributing at the maximum amount allowed.
-9-
SCHEDULE I
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2001
Principal
Amount
or Number Current
Identity of Issue/Description of Investment of Shares Cost Value
------------------------------------------- ------------ ---- ---------------
American Growth Fund of America 803,870 (a) $ 19,059,759
Hand Benefit and Trust Company Composite Employee Benefit
Group Trust-
Benefit Trust Equity Index 500 Fund* 991,926 (a) 12,133,183
Short-Term Income Fund* 10,655,399 (a) 10,655,399
SMART Aggressive Fund* 444,094 (a) 5,197,719
SMART Conservative Fund* 259,364 (a) 3,148,421
SMART Moderate Fund* 529,083 (a) 6,466,815
Fidelity Advisor Government Investment Portfolio 700,518 (a) 6,830,047
Fidelity Money Market Fund 5,564 (a) 5,564
Integrated Electrical Services, Inc., common stock* 701,296 (a) 3,590,636
Investment Company of America 223,212 (a) 6,368,231
Janus Worldwide Fund 315,089 (a) 13,813,496
MFS Capital Opportunities Fund 775,010 (a) 10,408,388
Interest-bearing cash $ 11,659 (a) 11,659
Participant loans* (interest rates ranging from 4.0% to 10.7%) $ 3,403,827 (a) 3,403,827
---------------
Total assets (held at end of year) $ 101,093,144
===============
*Identified party in interest.
(a)Cost omitted for participant-directed investments.
-10-
SCHEDULE II
INTEGRATED ELECTRICAL SERVICES, INC. 401(k) RETIREMENT SAVINGS PLAN
SCHEDULE G, PART III - SCHEDULE OF NONEXEMPT TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 2001
Relationship
to Plan,
Employer or Description of Transactions, Interest
Identity of Party Other Party Including Maturity Date, Amount Incurred
Involved in Interest Rate of Interest, Collateral and Maturity Value Loaned on Loan
- --------------------- ------------ ---------------------------------------------------- ---------- ----------
Integrated Electrical
Services, Inc.
Employer Lending of monies from the Plan to the employer
(contributions not timely remitted to the Plan)
as follows-
Deemed loan dated February 22, 2000, maturity
January 5, 2001, with interest at 9.17%
per month $ 895 $ 14(a)
Deemed loan dated November 15, 2000, maturity
July 13, 2001, with interest at 14.86%
per month 4,303 4,135(a)
Deemed loan dated January 23, 2001, maturity
May 1, 2001, with interest at 5.03%
per month 440 72
Deemed loan dated February 22, 2001, maturity
February 23, 2001, with interest at 0.83%
per month 8,812 2
Deemed loan dated February 22, 2001, maturity
February 27, 2001, with interest at 0.83%
per month 5,799 8
Deemed loan dated February 22, 2001, maturity
March 2, 2001, with interest at 0.83%
per month 7,212 16
Deemed loan dated February 22, 2001, maturity
March 9, 2001, with interest at 0.83%
per month 3,066 13
Deemed loan dated April 20, 2001, maturity
April 27, 2001, with interest at 10.23%
per month 3,062 73
Deemed loan dated May 21, 2001, maturity
May 25, 2001, with interest at 63.45%
per month 1,894 160
Deemed loan dated May 21, 2001, maturity
June 1, 2001, with interest at 58.45%
per month 2,784 597
Deemed loan dated June 21, 2001, maturity
June 22, 2001, with interest at 8.45%
per month 5,518 16
Deemed loan dated July 23, 2001, maturity
July 24, 2001, with interest at 1.77%
per month 6,713 4
Deemed loan dated July 23, 2001, maturity
August 7, 2001, with interest at 1.33%
per month 6,305 42
-11-
SCHEDULE II
Continued
Relationship
to Plan,
Employer or Description of Transactions, Interest
Identity of Party Other Party Including Maturity Date, Amount Incurred
Involved in Interest Rate of Interest, Collateral and Maturity Value Loaned on Loan
- --------------------- ------------ ---------------------------------------------------- ---------- ----------
Deemed loan dated July 23, 2001, maturity
August 10, 2001, with interest at 1.25%
per month $ 9,797 $ 73
Deemed loan dated July 23, 2001, maturity
August 14, 2001, with interest at 1.17%
per month 3,330 29
Deemed loan dated July 23, 2001, maturity
September 11, 2001, with interest at 1.07%
per month 3,575 64
Deemed loan dated July 23, 2001, maturity
January 11, 2002, with interest at 8.40%
per month 935 421(b)
Deemed loan dated August 21, 2001, maturity
August 24, 2001, with interest at 0.83%
per month 1,687 1
Deemed loan dated August 21, 2001, maturity
August 31, 2001, with interest at 0.83%
per month 3,132 9
Deemed loan dated August 21, 2001, maturity
September 7, 2001, with interest at 0.99%
per month 16,415 92
Deemed loan dated August 21, 2001, maturity
February 22, 2002, with interest at 10.01%
per month 797 351(b)
Deemed loan dated September 24, 2001,
maturity September 28, 2001, with interest
at 1.22% per month 19,781 32
Deemed loan dated September 24, 2001,
maturity October 2, 2001, with interest at
2.35% per month 371 2
Deemed loan dated September 24, 2001,
maturity October 16, 2001, with interest at
4.50% per month 10,156 335
Deemed loan dated September 24, 2001,
maturity December 28, 2001, with interest
at 12.70% per month 3,001 1,207
Deemed loan dated September 24, 2001,
maturity February 22, 2002, with interest
at 13.09% per month 2,044 874(b)
Deemed loan dated September 24, 2001,
maturity March 8, 2002, with interest at
13.09% per month 375 160(b)
Deemed loan dated October 22, 2001, maturity
October 23, 2001, with interest at 5.73%
per month 17,896 34
-12-
SCHEDULE II
Continued
Relationship
to Plan,
Employer or Description of Transactions, Interest
Identity of Party Other Party Including Maturity Date, Amount Incurred
Involved in Interest Rate of Interest, Collateral and Maturity Value Loaned on Loan
- --------------------- ------------ ---------------------------------------------------- ---------- ----------
Deemed loan dated October 22, 2001, maturity
October 26, 2001, with interest at 5.73%
per month $ 5,209 $ 40
Deemed loan dated October 22, 2001, maturity
November 20, 2001, with interest at 8.86%
per month 2,473 212
Deemed loan dated October 22, 2001, maturity
January 29, 2002, with interest at 16.43%
per month 527 202(b)
Deemed loan dated October 22, 2001, maturity
March 8, 2002, with interest at 16.43%
per month 3,360 1,288(b)
Deemed loan dated November 21, 2001, maturity
November 23, 2001, with interest at 10.27%
per month 5,521 38
Deemed loan dated November 21, 2001, maturity
December 14, 2001, with interest at 19.53%
per month 2,350 352
Deemed loan dated November 21, 2001, maturity
December 28, 2001, with interest at 21.79%
per month 1,812 487
Deemed loan dated November 21, 2001, maturity
February 22, 2002, with interest at 22.07%
per month 24 7(b)
Deemed loan dated November 21, 2001, maturity
March 8, 2002, with interest at 22.07%
per month 2,636 776(b)
Deemed loan dated December 21, 2001, maturity
December 28, 2001, with interest at 25.49%
per month 12,619 751
Deemed loan dated December 21, 2001, maturity
January 9, 2002, with interest at 25.49%
per month 3,785 322(b)
Deemed loan dated December 21, 2001, maturity
January 23, 2002, with interest at 25.49%
per month 5,876 499(b)
Deemed loan dated December 21, 2001, maturity
January 25, 2002, with interest at 25.49%
per month 10,458 889(b)
Deemed loan dated December 21, 2001, maturity
January 29, 2002, with interest at 25.49%
per month 2,834 241(b)
Deemed loan dated December 21, 2001, maturity
February 1, 2002, with interest at 25.49%
per month 6,083 517(b)
-13-
SCHEDULE II
Continued
Relationship
to Plan,
Employer or Description of Transactions, Interest
Identity of Party Other Party Including Maturity Date, Amount Incurred
Involved in Interest Rate of Interest, Collateral and Maturity Value Loaned on Loan
- --------------------- ------------ ---------------------------------------------------- ---------- ----------
Deemed loan dated December 21, 2001, maturity
February 22, 2002, with interest at 25.49%
per month $ 7,848 $ 667(b)
Deemed loan dated December 21, 2001, maturity
March 8, 2002, with interest at 25.49%
per month 1,738 148(b)
---------
$ 16,272(c)
=========
(a)Represents calculated interest from January 1, 2001, through the date of
maturity.
(b)Represents calculated interest from the date of the loan through December 31,
2001.
(c)The employer-remitted interest to the Plan subsequent to Plan year-end.
-14-
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the Plan administrator has duly caused this annual report to be signed on its
behalf by the undersigned thereunto duly authorized.
Date: May 8, 2002
INTEGRATED ELECTRICAL SERVICES, INC.
401(k) RETIREMENT SAVINGS PLAN
By: /s/ Margery M. Harris
----------------------------------------
Margery M. Harris
Sr. Vice President - Human Resources and
an Advisory Member of the Administrative
Committee
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
23.1 Consent of Independent Public Accountants
99.1 Notification Letter Pursuant to Temporary Note 3T to Regulation S-X
Exhibit 23.1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report dated May 8, 2002, included in this Form 11-K, into the
previously filed registration statements of Integrated Electrical Services,
Inc., on Form S-8 (File Nos. 333-67113 and 333-68274).
ARTHUR ANDERSEN LLP
Houston, Texas
May 8, 2002
Exhibit 99.1
May 8, 2002
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549-0408
Ladies and Gentlemen:
This letter is written pursuant to Temporary Note 3T to Article 3 of
Regulation S-X.
Arthur Andersen LLP (Andersen) has represented to the Administrative
Committee of the Integrated Electrical Services, Inc. 401(k) Retirement Savings
Plan that the audit of the Integrated Electrical Services, Inc. 401(k)
Retirement Savings Plan for the fiscal year ended December 31, 2001, was subject
to Andersen's quality control system for the U.S. accounting and auditing
practice to provide reasonable assurance that the engagement was conducted in
compliance with professional standards and that there was appropriate continuity
of Andersen personnel working on the audit and availability of national office
consultation. Availability of personnel at foreign affiliates of Andersen is not
relevant to the audit.
Very truly yours,
/s/ Margery M. Harris
Margery M. Harris
Sr. Vice President - Human Resources and an
Advisory Member of the Administrative Committee
