Integrated Electrical Services, Inc. has announced financial results for its fiscal 2013 fourth quarter and year ended Sept. 30, 2013. The results include the acquisition of MISCOR Group, Ltd. completed on Sept. 13, 2013. MISCOR provides electrical and mechanical solutions to the industrial and rail industries both in the United States and abroad and will comprise IES' newly created Infrastructure Solutions segment. With the acquisition of MISCOR, IES now owns and manages a more diverse group of operating subsidiaries comprised of four principal business segments: Communications, Residential, Commercial & Industrial, and Infrastructure Solutions.
FOURTH QUARTER AND FISCAL YEAR 2013 FINANCIAL HIGHLIGHTS
- Revenue of $123.8 million for the fourth quarter of 2013, an increase of 0.3% compared with the fourth quarter of 2012, and revenue of $494.6 million for fiscal year 2013, an increase of 8.4% compared with fiscal year 2012
- Operating cash flow of $2.0 million for fiscal year 2013, an increase of $9.3 million from fiscal year 2012
- Net loss per share from continuing operations of ($0.07) per share for the fourth quarter of 2013, and net loss per share from continuing operations of ($0.15) per share for the fiscal year 2013
- Adjusted earnings per share from continuing operations of $0.03 per share for the fourth quarter of 2013, and adjusted earnings per share from continuing operations of $0.23 per share for the fiscal year 2013
- Adjusted EBITDA of $1.5 million for the fourth quarter of 2013, an increase of $0.4 million compared with the fourth quarter of 2012, and Adjusted EBITDA of $8.0 million for fiscal year 2013, an increase of $3.6 million from fiscal year 2012
James Lindstrom, Chairman and Chief Executive Officer stated, "2013 was a solid year for IES, with improved margins, cash flow and earnings.Although our overall net income results were negative on a GAAP basis, our operating cash flow was positive and we achieved many of our internal financial and strategic goals that fundamentally strengthened the intrinsic value of our business.To that end, we completed a key acquisition, upgraded our credit profile through two refinancings and the release of restricted cash by our lender, achieved solid overall project execution and increased investment in our workforce. We have started fiscal 2014 with gradually improving dynamics, backlog and bid margins in more of our markets.We look forward to building upon these improving dynamics and further enhancing the value of IES through selective investments and acquisitions."
Robert Lewey, IES' Chief Financial Officer, added, "During the fourth quarter of 2013, we improved profitability in many of our commercial, industrial and single and multi-family residential locations, and expanded operating margins in our Communications segment. Unfortunately, our fourth quarter results were impacted by $2.2 million of project cost overruns on five large commercial projects at two of our locations, including a significant project that commenced in 2009 and is scheduled to be completed in 2015.We believe that we have taken appropriate actions where applicable to mitigate future risk and are not experiencing this level of project overruns elsewhere within our Commercial & Industrial division."
The company estimates that it has available NOL carryforwards for U.S. federal income tax purposes of approximately$466 million at September 30, 2013. The company's common stock is subject to a Rights Plan datedJanuary 28, 2013 intended to assist in limiting the number of 5% or more owners and thus reduce the risk of a possible "change of ownership" under Section 382 of the Internal Revenue Code. Any such "change of ownership" under these rules would limit or eliminate the ability of the company to use its existing NOLs for federal income tax purposes. There is no guaranty, however, that the Rights Plan will achieve the objective of preserving the value or realization of the NOLs.