IES Holdings Reports Fiscal 2024 Third Quarter Results; Board Authorizes New $200 Million Share Repurchase Program
IES Holdings (NASDAQ: IESC) reported strong financial results for Q3 fiscal 2024. Revenue increased 31% to $768 million, while operating income surged 163% to $90.2 million. Net income attributable to IES rose 175% to $62.1 million, with diluted EPS of $2.67. The company saw growth across all segments, particularly in Residential and Communications, driven by expansion of service offerings and strong demand in the data center market. Backlog stood at $1.7 billion as of June 30, 2024. The Board authorized a new $200 million share repurchase program. IES made strategic acquisitions to support growth and expand product offerings. The company expects continued strong performance for the remainder of fiscal 2024 and into fiscal 2025.
IES Holdings (NASDAQ: IESC) ha riportato risultati finanziari solidi per il terzo trimestre dell'anno fiscale 2024. Il fatturato è aumentato del 31% a 768 milioni di dollari, mentre l'utile operativo è balzato del 163% a 90,2 milioni di dollari. L'utile netto attribuibile a IES è aumentato del 175% a 62,1 milioni di dollari, con un utile per azione diluito di $2,67. L'azienda ha registrato crescita in tutti i segmenti, in particolare in Residenziale e Comunicazioni, alimentata dall'espansione dell'offerta di servizi e dalla forte domanda nel mercato dei data center. Il portafoglio ordini era di 1,7 miliardi di dollari al 30 giugno 2024. Il Consiglio ha autorizzato un nuovo programma di riacquisto di azioni da 200 milioni di dollari. IES ha effettuato acquisizioni strategiche per supportare la crescita e ampliare l'offerta di prodotti. L'azienda prevede di continuare a performare fortemente per il resto dell'anno fiscale 2024 e in quello fiscale 2025.
IES Holdings (NASDAQ: IESC) reportó resultados financieros sólidos para el tercer trimestre del año fiscal 2024. Los ingresos aumentaron un 31% a 768 millones de dólares, mientras el ingreso operativo se disparó un 163% a 90,2 millones de dólares. El ingreso neto atribuible a IES creció un 175% a 62,1 millones de dólares, con una utilidad por acción diluida de $2,67. La compañía experimentó crecimiento en todos los segmentos, especialmente en Residencial y Comunicaciones, impulsado por la expansión de la oferta de servicios y una fuerte demanda en el mercado de data centers. El backlog era de 1,7 mil millones de dólares al 30 de junio de 2024. La Junta autorizó un nuevo programa de recompra de acciones de 200 millones de dólares. IES realizó adquisiciones estratégicas para apoyar el crecimiento y expandir su oferta de productos. La compañía espera un rendimiento continuo fuerte durante el resto del año fiscal 2024 y en el 2025.
IES Holdings (NASDAQ: IESC)는 2024 회계연도 3분기에 강력한 재무 실적을 보고했습니다. 매출은 31% 증가하여 7억 6800만 달러에 이르렀습니다, 운영 수익은 163% 급증하여 9020만 달러에 달했습니다. IES에 귀속되는 순이익은 175% 증가하여 6210만 달러에 달했습니다, 희석 EPS는 $2.67입니다. 회사는 모든 부문에서 성장세를 보였으며, 특히 주거 및 통신 분야에서 서비스 제공 확대와 데이터 센터 시장의 강한 수요에 의해 주도되었습니다. 2024년 6월 30일 기준으로 수주 잔고는 17억 달러에 달했습니다. 이사회는 2억 달러 규모의 신규 자사주 매입 프로그램을 승인했습니다. IES는 성장 지원 및 제품 제공 확대를 위해 전략적 인수를 진행했습니다. 회사는 2024 회계연도 나머지 기간 및 2025 회계연도에 걸쳐 지속적인 강력한 실적을 예상하고 있습니다.
IES Holdings (NASDAQ: IESC) a annoncé de solides résultats financiers pour le troisième trimestre de l'exercice 2024. Le chiffre d'affaires a augmenté de 31 % pour atteindre 768 millions de dollars, tandis que le résultat d'exploitation a bondi de 163 % à 90,2 millions de dollars. Le bénéfice net attribuable à IES a augmenté de 175 % pour atteindre 62,1 millions de dollars, avec un BPA dilué de 2,67 $. L'entreprise a connu une croissance dans tous les segments, en particulier dans le résidentiel et les communications, soutenue par l'expansion de l'offre de services et une forte demande sur le marché des centres de données. Le carnet de commandes s'élevait à 1,7 milliard de dollars au 30 juin 2024. Le conseil d'administration a autorisé un nouveau programme de rachat d'actions de 200 millions de dollars. IES a réalisé des acquisitions stratégiques pour soutenir sa croissance et élargir son offre de produits. L'entreprise s'attend à une performance solide continue pour le reste de l'exercice 2024 et en 2025.
IES Holdings (NASDAQ: IESC) berichtete über starke finanzielle Ergebnisse für das dritte Quartal des Geschäftsjahres 2024. Der Umsatz stieg um 31 % auf 768 Millionen US-Dollar, während das Betriebsergebnis um 163 % auf 90,2 Millionen US-Dollar anstieg. Der den IES zuzurechnende Nettogewinn stieg um 175 % auf 62,1 Millionen US-Dollar, mit einem verwässerten EPS von 2,67 US-Dollar. Das Unternehmen verzeichnete in allen Segmenten Wachstum, insbesondere im Wohnbau und in der Kommunikation, getrieben durch die Erweiterung des Serviceangebots und die starke Nachfrage im Data-Center-Markt. Der Auftragsbestand betrug zum 30. Juni 2024 1,7 Milliarden US-Dollar. Der Vorstand genehmigte ein neues Aktienrückkaufprogramm über 200 Millionen US-Dollar. IES tätigte strategische Akquisitionen, um das Wachstum zu unterstützen und das Produktangebot zu erweitern. Das Unternehmen erwartet auch in der restlichen Zeit des Geschäftsjahres 2024 und im Geschäftsjahr 2025 eine anhaltend starke Leistung.
- Revenue increased 31% year-over-year to $768 million
- Operating income surged 163% to $90.2 million
- Net income attributable to IES rose 175% to $62.1 million
- Diluted EPS increased to $2.67 from $0.81 in the same quarter last year
- Strong growth across all segments, particularly in Residential and Communications
- Backlog of $1.7 billion as of June 30, 2024
- Board authorized a new $200 million share repurchase program
- Strategic acquisitions made to support growth and expand product offerings
- Expected decrease in Commercial & Industrial segment revenue and operating income in the next fiscal quarter as a large data center project approaches completion
- Higher cash tax rate expected in fiscal 2024 due to utilization of federal tax net operating loss carryforwards
Insights
IES Holdings' Q3 fiscal 2024 results demonstrate robust financial performance across all segments. The company reported impressive year-over-year growth, with revenue increasing by
Key drivers of this growth include:
- Strong demand in the data center market, benefiting Communications, Infrastructure Solutions and Commercial & Industrial segments
- Expansion of plumbing and HVAC services in the Residential segment
- Strategic acquisitions, including Greiner Industries and the remaining stake in Bayonet Plumbing, Heating & Air Conditioning
- Improved operating margins across all segments due to process improvements and increased scale
The company's backlog of
The new
Overall, IES Holdings' diversified business model, strategic expansions and strong execution position it well for continued growth, despite potential headwinds in certain markets.
IES Holdings' Q3 results reflect broader trends in the construction and infrastructure sectors, particularly the booming data center market. The company's strategic focus on high-growth areas and service diversification has paid off handsomely.
Key market insights:
- Data center demand remains robust, driven by AI and cloud computing growth. This trend is likely to continue, benefiting IES's Communications, Infrastructure Solutions and Commercial & Industrial segments.
- The residential construction market shows resilience, with IES outpacing general housing market growth through service expansion and market share gains.
- Multi-family construction may face headwinds, but IES's multi-trade capabilities could provide a competitive edge.
- Infrastructure investments, particularly in power solutions, remain strong, supporting the Infrastructure Solutions segment's growth.
IES's expansion into plumbing and HVAC services is timely, given the increasing demand for integrated building solutions and energy-efficient systems. This diversification strategy could help buffer against potential slowdowns in any single market.
The company's ability to improve margins across all segments, despite inflationary pressures, suggests strong pricing power and operational efficiency. This positions IES well in a competitive market landscape.
Investors should monitor the potential impact of macroeconomic factors such as interest rates and inflation on construction activity, as well as any shifts in government infrastructure spending policies that could affect IES's future performance.
From a legal perspective, IES Holdings' Q3 fiscal 2024 report raises several noteworthy points:
- Acquisitions and Integration: The company's recent acquisitions, including Greiner Industries and the remaining stake in Bayonet Plumbing, Heating & Air Conditioning, will require careful integration to avoid potential legal issues related to employment, contracts and regulatory compliance.
- Share Repurchase Program: The new
$200 million share repurchase program must be executed in compliance with SEC regulations, particularly regarding timing and volume restrictions to avoid market manipulation concerns. - Financial Reporting: The use of non-GAAP financial measures, while providing valuable insights, must be carefully presented alongside GAAP measures to ensure compliance with SEC guidance on the use of non-GAAP financial information.
- Backlog and Future Performance: Statements regarding backlog and future performance must be carefully worded to avoid potential securities law violations related to forward-looking statements.
- Tax Implications: The substantial utilization of federal tax net operating loss carryforwards in fiscal 2023 will result in a higher cash tax rate in fiscal 2024, requiring careful tax planning and compliance.
IES Holdings appears to be managing these legal considerations effectively, with appropriate disclosures and cautionary language in their financial reporting. However, as the company continues to grow and expand into new markets and service offerings, ongoing legal vigilance will be important to navigate potential regulatory challenges and maintain compliance across all operations.
HOUSTON, Aug. 02, 2024 (GLOBE NEWSWIRE) -- IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today announced financial results for the quarter ended June 30, 2024.
Third Quarter 2024 Highlights and Recent Developments
- Revenue of
$768 million for the third quarter of fiscal 2024, an increase of31% compared with$584 million for the same quarter of fiscal 2023 - Operating income of
$90.2 million for the third quarter of fiscal 2024, an increase of163% compared with$34.3 million for the same quarter of fiscal 2023 - Net income attributable to IES of
$62.1 million for the third quarter of fiscal 2024, an increase of175% compared with$22.5 million for the same quarter of fiscal 2023, and diluted earnings per share attributable to common stockholders of$2.67 for the third quarter of fiscal 2024, compared with$0.81 for the same quarter of fiscal 2023 - Adjusted net income attributable to IES (a non-GAAP financial measure, as defined below) of
$62.1 million for the third quarter of fiscal 2024, an increase of123% compared with$27.9 million for the same quarter of fiscal 2023, and diluted adjusted earnings per share attributable to common stockholders of$2.67 for the third quarter of fiscal 2024, compared with$1.08 for the same quarter of fiscal 2023 - Remaining performance obligations, a GAAP measure of future revenue to be recognized from current contracts with customers, of approximately
$1.2 billion as of June 30, 2024 - Backlog (a non-GAAP financial measure, as defined below) of approximately
$1.7 billion as of June 30, 2024 - Board of Directors authorized a new
$200 million share repurchase program
Overview of Results
“Our continued strong financial performance in the third quarter of fiscal 2024 reflects the benefit of the investments we have made to support the growth of our businesses," said Jeff Gendell, Chairman and Chief Executive Officer. "Our Residential segment continues to expand our plumbing and HVAC service offerings into markets where we previously offered only electrical services, while also expanding all service offerings into new geographic markets. These expansions, combined with increasing market share in existing electrical markets, have resulted in our Residential segment's growth outpacing growth of the housing market in general. Our Communications, Infrastructure Solutions, and Commercial & Industrial segments continued to benefit from strong demand, particularly in the data center market. Operating margins across all four segments were strong, reflecting process improvements, robust customer demand, operating leverage from our increased scale and strong project execution across all four segments. We expect continued strong performance for the remainder of this fiscal year and into fiscal 2025.
"We have continued to focus on capital allocation, putting our operating cash flow to work to grow the business. As previously announced, in April 2024, we acquired Greiner Industries, based in Mount Joy, Pennsylvania and acquired a previously leased facility in Rock Hill, South Carolina to provide additional capacity to support strong customer demand in our Infrastructure Solutions segment. In addition, in June 2024, we acquired the remaining
Our Communications segment’s revenue was
Our Residential segment’s revenue was
Our Infrastructure Solutions segment’s revenue was
Our Commercial & Industrial segment’s revenue was
Matt Simmes, President and Chief Operating Officer, commented, “We are pleased with continued strong operating margins in all four of our business segments. Our investments to upgrade and expand capacity in our Infrastructure Solutions business have allowed us to materially increase capacity while adding new product offerings through the Greiner acquisition, and we continue to see improved margins from some of our prior years' expansions. Our Commercial & Industrial segment is approaching completion of a large project that has benefited recent quarters, and will continue to evaluate opportunities for future projects, while maintaining a focus on managing contract risk. As our Residential segment continues process improvements stemming from the reorganization started in April 2023, we are well positioned to continue to pursue profitable growth, including through the national expansion of the HVAC and plumbing trades under the leadership of Robbie Blankenship, who grew these service offerings significantly in the Florida market at Bayonet.”
“In line with our proven capital allocation strategy, we were able to use our strong balance sheet and put our cash to work," added Tracy McLauchlin, Chief Financial Officer. "During the third quarter of fiscal 2024, we invested
Stock Buyback Plan
In December 2022, our Board of Directors approved a new
Non-GAAP Financial Measures and Other Adjustments
This press release includes adjusted net income attributable to IES, adjusted diluted earnings per share attributable to common stockholders, and backlog, and, in the non-GAAP reconciliation tables included herein, adjusted net income attributable to common stockholders, adjusted EBITDA and adjusted net income before taxes, each of which is a financial measure 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, in the case of adjusted net income attributable to common stockholders, adjusted earnings per share attributable to common stockholders, adjusted EBITDA and adjusted net income before taxes, distinguishing certain nonrecurring events such as litigation settlements, significant expenses associated with leadership changes, or gains or losses from the sale of a business, or noncash events, such as impairment charges or our valuation allowances release and write-down of our deferred tax assets, or, in the case of backlog, providing a common measurement used in IES's industry, as described further below, and that these measures, when reconciled to the most directly comparable GAAP measures, help our investors to better identify underlying trends in the operations of 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, which has been provided in the financial tables included in this press release.
Remaining performance obligations represent the unrecognized revenue value of our contract commitments. While backlog is not a defined term under GAAP, it is a common measurement used in IES’s industry and IES believes this non-GAAP measure enables it to more effectively forecast its future results and better identify future operating trends that may not otherwise be apparent. IES’s remaining performance obligations are a component of IES’s backlog calculation, which also includes signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. IES’s methodology for determining backlog may not be comparable to the methodologies used by other companies.
For further details on the Company’s financial results, please refer to the Company’s quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2024, to be filed with the Securities and Exchange Commission ("SEC") by August 2, 2024, and any amendments thereto.
About IES Holdings, Inc.
IES designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our more than 9,000 employees serve clients in the United States. For more information about IES, please visit www.ies-co.com.
Company Contact:
Tracy McLauchlin
Chief Financial Officer
IES Holdings, Inc.
(713) 860-1500
Investor Relations Contact:
Robert Winters or Stephen Poe
Alpha IR Group
312-445-2870
IESC@alpha-ir.com
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 impact of the COVID-19 outbreak or future pandemics on our business, including the potential for job site closures or work stoppages, supply chain disruptions, delays in awarding new projects, construction delays, reduced demand for our services, delays in our ability to collect from our customers, or illness of management or other employees; the ability of our controlling shareholder to take action not aligned with other shareholders; the potential recognition of valuation allowances or write-downs on deferred tax assets; 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, or the subsequent underperformance of those acquisitions; 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 or the housing market, seasonality and differing regional economic conditions; the possibility of inaccurate estimates used when entering into fixed-price contracts and our ability to successfully manage projects, as well as other risk factors discussed in this document, in the Company’s annual report on Form 10-K for the year ended September 30, 2023 and in the Company’s other reports on file with the SEC. You should understand that such risk factors could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. The Company undertakes no obligation to publicly update or revise any information, including information concerning its controlling shareholder, deferred tax assets, borrowing availability, or 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 IES Holdings, Inc. can be found at http://www.ies-co.com under "Investor Relations." The Company's 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 the Company's website as soon as reasonably practicable after they are filed with, or furnished to, the SEC.
IES HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
(UNAUDITED)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 768.4 | $ | 584.4 | $ | 2,108.6 | $ | 1,728.2 | ||||||||
| Cost of services | 573.6 | 476.8 | 1,598.4 | 1,424.2 | ||||||||||||
| Gross profit | 194.8 | 107.6 | 510.2 | 304.0 | ||||||||||||
| Selling, general and administrative expenses | 104.7 | 74.3 | 285.8 | 211.4 | ||||||||||||
| Contingent consideration | 0.1 | 0.1 | 0.1 | 0.2 | ||||||||||||
| Gain on sale of assets | (0.2 | ) | (1.0 | ) | (1.6 | ) | (14.2 | ) | ||||||||
| Operating income | 90.2 | 34.3 | 225.9 | 106.6 | ||||||||||||
| Interest expense | 0.4 | 0.4 | 1.2 | 2.6 | ||||||||||||
| Other (income) expense, net | 0.6 | (0.1 | ) | 0.3 | (1.2 | ) | ||||||||||
| Income from operations before income taxes | 89.2 | 34.1 | 224.4 | 105.2 | ||||||||||||
| Provision for income taxes | 22.6 | 8.2 | 57.4 | 26.4 | ||||||||||||
| Net income | 66.6 | 25.9 | 167.0 | 78.8 | ||||||||||||
| Net income attributable to noncontrolling interest | (4.5 | ) | (3.3 | ) | (11.0 | ) | (8.3 | ) | ||||||||
| Net income attributable to IES Holdings, Inc. | $ | 62.1 | $ | 22.5 | $ | 156.0 | $ | 70.5 | ||||||||
| Computation of earnings per share: | ||||||||||||||||
| Net income attributable to IES Holdings, Inc. | $ | 62.1 | $ | 22.5 | $ | 156.0 | $ | 70.5 | ||||||||
| Increase in noncontrolling interest | (7.4 | ) | (5.9 | ) | (16.1 | ) | (11.7 | ) | ||||||||
| Net income attributable to common stockholders of IES Holdings, Inc. | $ | 54.7 | $ | 16.6 | $ | 139.9 | $ | 58.7 | ||||||||
| Earnings per share attributable to common stockholders: | ||||||||||||||||
| Basic | $ | 2.71 | $ | 0.82 | $ | 6.92 | $ | 2.91 | ||||||||
| Diluted | $ | 2.67 | $ | 0.81 | $ | 6.84 | $ | 2.88 | ||||||||
| Shares used in the computation of earnings per share: | ||||||||||||||||
| Basic (in thousands) | 20,224 | 20,182 | 20,217 | 20,198 | ||||||||||||
| Diluted (in thousands) | 20,497 | 20,406 | 20,463 | 20,404 | ||||||||||||
IES HOLDINGS, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE
TO IES HOLDINGS, INC. AND ADJUSTED EARNINGS PER SHARE
ATTRIBUTABLE TO COMMON STOCKHOLDERS
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
(UNAUDITED)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income attributable to IES Holdings, Inc. | $ | 62.1 | $ | 22.5 | $ | 156.0 | $ | 70.5 | ||||||||
| Gain on sale of STR Mechanical | — | — | — | (13.0 | ) | |||||||||||
| Gain on sale of real estate | — | (1.0 | ) | — | (1.0 | ) | ||||||||||
| Severance expense | — | 3.6 | — | 3.6 | ||||||||||||
| Provision for income taxes | 22.6 | 8.2 | 57.4 | 26.4 | ||||||||||||
| Adjusted net income before taxes | 84.7 | 33.3 | 213.4 | 86.5 | ||||||||||||
| Adjusted tax expense(1) | (22.6 | ) | (5.4 | ) | (57.4 | ) | (14.1 | ) | ||||||||
| Adjusted net income attributable to IES Holdings, Inc. | 62.1 | 27.9 | 156.0 | 72.4 | ||||||||||||
| Adjustments for computation of earnings per share: | ||||||||||||||||
| Increase in noncontrolling interest | (7.4 | ) | (5.9 | ) | (16.1 | ) | (11.7 | ) | ||||||||
| Adjusted net income attributable to common stockholders | $ | 54.7 | $ | 22.0 | $ | 139.9 | $ | 60.7 | ||||||||
| Adjusted earnings per share attributable to common stockholders: | ||||||||||||||||
| Basic | $ | 2.71 | $ | 1.09 | $ | 6.92 | $ | 3.00 | ||||||||
| Diluted | $ | 2.67 | $ | 1.08 | $ | 6.84 | $ | 2.97 | ||||||||
| Shares used in the computation of earnings per share: | ||||||||||||||||
| Basic (in thousands) | 20,224 | 20,182 | 20,217 | 20,198 | ||||||||||||
| Diluted (in thousands) | 20,497 | 20,406 | 20,463 | 20,404 | ||||||||||||
| (1) Adjusted to reflect the utilization of tax net operating loss carryforwards to offset the cash impact of income tax expense for the three and nine months ended June 30, 2023. As our tax net operating loss carryforwards were substantially utilized in fiscal 2023, there was no such offset to cash taxes in the three and nine months ended June 30, 2024. | ||||||||||||||||
IES HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS)
(UNAUDITED)
| June 30, | September 30, | |||||||||
| 2024 | 2023 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 44.9 | $ | 75.8 | ||||||
| Accounts receivable: | ||||||||||
| Trade, net of allowance | 457.6 | 363.8 | ||||||||
| Retainage | 90.8 | 76.9 | ||||||||
| Inventories | 106.9 | 95.7 | ||||||||
| Costs and estimated earnings in excess of billings | 57.9 | 48.6 | ||||||||
| Prepaid expenses and other current assets | 30.5 | 10.5 | ||||||||
| Total current assets | 788.6 | 671.3 | ||||||||
| Property and equipment, net | 126.7 | 63.4 | ||||||||
| Goodwill | 94.5 | 92.4 | ||||||||
| Intangible assets, net | 49.5 | 56.2 | ||||||||
| Deferred tax assets | 22.5 | 20.4 | ||||||||
| Operating right of use assets | 58.8 | 61.8 | ||||||||
| Other non-current assets | 14.7 | 16.1 | ||||||||
| Total assets | $ | 1,155.3 | $ | 981.6 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable and accrued expenses | $ | 334.9 | $ | 296.8 | ||||||
| Billings in excess of costs and estimated earnings | 139.3 | 103.8 | ||||||||
| Total current liabilities | 474.2 | 400.6 | ||||||||
| Long-term debt | — | — | ||||||||
| Operating long-term lease liabilities | 38.7 | 42.1 | ||||||||
| Other tax liabilities | 23.3 | 22.0 | ||||||||
| Other non-current liabilities | 12.7 | 17.0 | ||||||||
| Total liabilities | 548.9 | 481.7 | ||||||||
| Noncontrolling interest | 38.9 | 50.0 | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||||
| Preferred stock | — | — | ||||||||
| Common stock | 0.2 | 0.2 | ||||||||
| Treasury stock, at cost | (71.5 | ) | (49.5 | ) | ||||||
| Additional paid-in capital | 203.1 | 203.4 | ||||||||
| Retained earnings | 435.7 | 295.8 | ||||||||
| Total stockholders’ equity | 567.5 | 449.9 | ||||||||
| Total liabilities and stockholders’ equity | $ | 1,155.3 | $ | 981.6 | ||||||
IES HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS)
(UNAUDITED)
| Nine Months Ended | |||||||||
| June 30, | |||||||||
| 2024 | 2023 | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
| Net income | $ | 167.0 | $ | 78.8 | |||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||
| Bad debt expense | 0.5 | 0.5 | |||||||
| Deferred financing cost amortization | 0.2 | 0.2 | |||||||
| Depreciation and amortization | 26.1 | 20.1 | |||||||
| Gain on sale of assets | (1.6 | ) | (14.2 | ) | |||||
| Non-cash compensation expense | 4.3 | 3.2 | |||||||
| Deferred income taxes | 3.8 | 9.4 | |||||||
| Unrealized loss on trading securities | 3.3 | — | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (80.3 | ) | 25.4 | ||||||
| Inventories | (11.2 | ) | (8.1 | ) | |||||
| Costs and estimated earnings in excess of billings | (0.7 | ) | 7.6 | ||||||
| Prepaid expenses and other current assets | (37.3 | ) | (8.0 | ) | |||||
| Other non-current assets | 0.2 | 2.0 | |||||||
| Accounts payable and accrued expenses | 31.3 | (44.8 | ) | ||||||
| Billings in excess of costs and estimated earnings | 34.8 | 24.4 | |||||||
| Other non-current liabilities | 1.0 | 0.2 | |||||||
| Net cash provided by operating activities | 141.6 | 96.6 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
| Purchases of property and equipment | (30.9 | ) | (11.3 | ) | |||||
| Proceeds from sale of assets | 2.5 | 20.4 | |||||||
| Cash paid in conjunction with equity investments | (0.4 | ) | (0.2 | ) | |||||
| Cash paid in conjunction with business combinations | (67.7 | ) | — | ||||||
| Net cash provided by (used in) investing activities | (96.4 | ) | 9.0 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
| Borrowings of debt | 2,089.9 | 1,759.0 | |||||||
| Repayments of debt | (2,089.9 | ) | (1,841.6 | ) | |||||
| Cash paid for finance leases | (3.0 | ) | (2.6 | ) | |||||
| Noncontrolling interest option exercised | (31.2 | ) | — | ||||||
| Settlement of contingent consideration liability | (4.1 | ) | — | ||||||
| Distribution to noncontrolling interest | (13.5 | ) | (8.5 | ) | |||||
| Purchase of treasury stock | (24.3 | ) | (8.2 | ) | |||||
| Net cash used in financing activities | (76.1 | ) | (101.9 | ) | |||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (30.9 | ) | 3.7 | ||||||
| CASH and CASH EQUIVALENTS, beginning of period | 75.8 | 24.8 | |||||||
| CASH and CASH EQUIVALENTS, end of period | $ | 44.9 | $ | 28.6 | |||||
IES HOLDINGS, INC. AND SUBSIDIARIES
OPERATING SEGMENT STATEMENT OF OPERATIONS
(DOLLARS IN MILLIONS)
(UNAUDITED)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Communications | $ | 192.3 | $ | 141.6 | $ | 556.6 | $ | 430.0 | ||||||||
| Residential | 377.5 | 318.0 | 1,032.7 | 942.2 | ||||||||||||
| Infrastructure Solutions | 102.0 | 57.1 | 240.7 | 159.0 | ||||||||||||
| Commercial & Industrial | 96.6 | 67.8 | 278.6 | 197.1 | ||||||||||||
| Total revenue | $ | 768.4 | $ | 584.4 | $ | 2,108.6 | $ | 1,728.2 | ||||||||
| Operating income (loss) | ||||||||||||||||
| Communications | $ | 21.0 | $ | 13.5 | $ | 64.3 | $ | 34.7 | ||||||||
| Residential(2) | 43.7 | 15.4 | 102.5 | 52.7 | ||||||||||||
| Infrastructure Solution(3) | 19.8 | 8.2 | 46.8 | 21.1 | ||||||||||||
| Commercial & Industrial(1) | 13.0 | 2.6 | 31.7 | 14.0 | ||||||||||||
| Corporate | (7.3 | ) | (5.4 | ) | (19.4 | ) | (15.9 | ) | ||||||||
| Total operating income | $ | 90.2 | $ | 34.3 | $ | 225.9 | $ | 106.6 | ||||||||
(1) Commercial & Industrial's operating income for the nine months ended June 30, 2023 includes a pretax gain of
(2) Residential's operating income for the three and nine months ended June 30, 2023 includes pretax severance expense of
(3) Infrastructure Solutions' operating income for the three and nine months ended June 30, 2023 includes a pretax gain of
IES HOLDINGS, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION OF ADJUSTED EBITDA
(DOLLARS IN MILLIONS)
(UNAUDITED)
| Three Months Ended | Nine Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income attributable to IES Holdings, Inc. | $ | 62.1 | $ | 22.5 | $ | 156.0 | $ | 70.5 | ||||||
| Provision for income taxes | 22.6 | 8.2 | 57.4 | 26.4 | ||||||||||
| Interest & other expense, net | 1.0 | 0.2 | 1.5 | 1.4 | ||||||||||
| Depreciation and amortization | 10.6 | 6.8 | 26.0 | 20.1 | ||||||||||
| EBITDA | $ | 96.3 | $ | 37.8 | $ | 240.9 | $ | 118.4 | ||||||
| Gain on sale of STR Mechanical | — | — | — | (13.0 | ) | |||||||||
| Gain on sale of real estate | — | (1.0 | ) | — | (1.0 | ) | ||||||||
| Non-cash equity compensation expense | 1.4 | 1.2 | 4.3 | 3.2 | ||||||||||
| Severance expense | — | 3.6 | — | 3.6 | ||||||||||
| Adjusted EBITDA | $ | 97.7 | $ | 41.7 | $ | 245.2 | $ | 111.2 | ||||||
IES HOLDINGS, INC. AND SUBSIDIARIES
SUPPLEMENTAL REMAINING PERFORMANCE OBLIGATIONS AND NON-GAAP RECONCILIATION OF BACKLOG DATA
(DOLLARS IN MILLIONS)
(UNAUDITED)
| June 30, | September 30, | June 30, | |||||||
| 2024 | 2023 | 2023 | |||||||
| Remaining performance obligations | $ | 1,177 | $ | 1,143 | $ | 1,072 | |||
| Agreements without an enforceable obligation (1) | 520 | 415 | 458 | ||||||
| Backlog | $ | 1,697 | $ | 1,558 | $ | 1,530 | |||
| (1) Our backlog contains signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. | |||||||||
FAQ
What was IES Holdings' (IESC) revenue for Q3 fiscal 2024?
How much did IES Holdings' (IESC) net income increase in Q3 fiscal 2024?
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What is the value of IES Holdings' (IESC) backlog as of June 30, 2024?
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