FORM
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10-K
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(Mark One)
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||
☑
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
For the fiscal year ended
|
September 30, 2019
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|
|
OR
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|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from to
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Delaware
|
76-0542208
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
|
IESC
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|
NASDAQ Global Market
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Rights to Purchase Preferred Stock
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|
IESC
|
|
NASDAQ Global Market
|
Large accelerated filer
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☐
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Accelerated filer
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☑
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Non-accelerated filer
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☐
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Smaller reporting company
|
☑
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Emerging growth company
|
☐
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Page
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||
•
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the ability of our controlling shareholder to take action not aligned with other shareholders;
|
•
|
the sale or disposition of all or any portion of the shares of our common stock held by our controlling shareholder, which, could trigger change of control provisions in a number of our material agreements, including our financing and surety arrangements and our executive severance plan, as well as exercisability of the purchase rights under our tax benefit protection plan;
|
•
|
the possibility that certain tax benefits of our net operating losses may be restricted or reduced in a change in ownership or a change in the federal tax rate;
|
•
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the potential recognition of valuation allowances or write-downs on deferred tax assets;
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•
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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;
|
•
|
limitations on the availability of sufficient credit or cash flow to fund our working capital needs and capital expenditures and debt service;
|
•
|
difficulty in fulfilling the covenant terms of our credit facility, including liquidity, and other financial requirements, which could result in a default and acceleration of any indebtedness we may incur under our revolving credit facility;
|
•
|
the possibility that we issue additional shares of common stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the value per share of our common stock;
|
•
|
the relatively low trading volume of our common stock, as a result of which it could be more difficult for shareholders to sell a substantial number of shares for the same price at which shareholders could sell a smaller number of shares;
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•
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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;
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•
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future capital expenditures and refurbishment, repair and upgrade costs; and delays in and costs of refurbishment, repair and upgrade projects;
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•
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a general reduction in the demand for our services;
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•
|
our ability to enter into, and the terms of, future contracts;
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•
|
success in transferring, renewing and obtaining electrical and other licenses;
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•
|
challenges integrating new businesses into the Company or new types of work, products or processes into our segments;
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•
|
credit and capital market conditions, including changes in interest rates that affect the cost of construction financing and mortgages, and the inability of some of our customers to retain sufficient financing, which could lead to project delays or cancellations;
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•
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backlog that may not be realized or may not result in profits;
|
•
|
the possibility of errors when estimating revenue and progress to date on percentage-of-completion contracts;
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•
|
uncertainties inherent in estimating future operating results, including revenues, operating income or cash flow;
|
•
|
complications associated with the incorporation of new accounting, control and operating procedures;
|
•
|
closures or sales of facilities resulting in significant future charges, including potential warranty losses or other unexpected liabilities, or a significant disruption of our operations;
|
•
|
an increased cost of surety bonds affecting margins on work and the potential for our surety providers to refuse bonding or require additional collateral at their discretion;
|
•
|
fluctuations in operating activity due to downturns in levels of construction or the housing market, seasonality and differing regional economic conditions;
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•
|
our ability to successfully manage projects;
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•
|
inaccurate estimates used when entering into fixed-priced contracts;
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•
|
the cost and availability of qualified labor and the ability to maintain positive labor relations;
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•
|
our ability to pass along increases in the cost of commodities used in our business, in particular, copper, aluminum, steel, fuel and certain plastics;
|
•
|
a change in the mix of our customers, contracts or business;
|
•
|
increases in bad debt expense and days sales outstanding due to liquidity problems faced by our customers;
|
•
|
the recognition of potential goodwill, long-lived assets and other investment impairments;
|
•
|
potential supply chain disruptions due to credit or liquidity problems faced by our suppliers;
|
•
|
accidents resulting from the physical hazards associated with our work and the potential for accidents;
|
•
|
the possibility that our current insurance coverage may not be adequate or that we may not be able to obtain policies at acceptable rates;
|
•
|
the possibility that our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur;
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•
|
disagreements with taxing authorities with regard to tax positions we have adopted;
|
•
|
the recognition of tax benefits related to uncertain tax positions;
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•
|
the effect of litigation, claims and contingencies, including warranty losses, damages or other latent defect claims in excess of our existing reserves and accruals;
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•
|
growth in latent defect litigation in states where we provide residential electrical work for home builders not otherwise covered by insurance;
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•
|
interruptions to our information systems and cyber security or data breaches;
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•
|
liabilities under laws and regulations protecting the environment; and
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•
|
loss of key personnel and effective transition of new management.
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•
|
Commercial & Industrial – Provider of electrical and mechanical design, construction, and maintenance services to the commercial and industrial markets in various regional markets and nationwide in certain areas of expertise, such as the power infrastructure market.
|
•
|
Communications – Nationwide provider of technology infrastructure services, including the design, build, and maintenance of the communications infrastructure within data centers for colocation and managed hosting customers, for both large corporations and independent businesses.
|
•
|
Infrastructure Solutions – Provider of electro-mechanical solutions for industrial operations, including apparatus repair and custom-engineered products, such as generator enclosures, to be used in data centers and other industrial applications.
|
•
|
Residential – Regional provider of electrical installation services for single-family housing and multi-family apartment complexes.
|
•
|
proven management with a willingness to continue post-acquisition;
|
•
|
low technological and/or product obsolescence risk;
|
•
|
established market position and sustainable competitive advantages; and
|
•
|
strong cash flow characteristics.
|
|
|
Year Ended September 30,
|
|||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|||||||||
|
|
(Dollars in thousands, Percentage of revenues)
|
|||||||||||||||||||
Commercial & Industrial
|
|
$
|
305,624
|
|
|
28.4
|
%
|
|
$
|
274,299
|
|
|
31.3
|
%
|
|
$
|
227,606
|
|
|
28.1
|
%
|
Communications
|
|
321,246
|
|
|
29.8
|
%
|
|
219,655
|
|
|
25.1
|
%
|
|
225,275
|
|
|
27.8
|
%
|
|||
Infrastructure Solutions
|
|
136,790
|
|
|
12.7
|
%
|
|
97,163
|
|
|
11.1
|
%
|
|
83,824
|
|
|
10.3
|
%
|
|||
Residential
|
|
313,336
|
|
|
29.1
|
%
|
|
285,711
|
|
|
32.6
|
%
|
|
274,039
|
|
|
33.8
|
%
|
|||
Total Consolidated
|
|
$
|
1,076,996
|
|
|
100.0
|
%
|
|
$
|
876,828
|
|
|
100.0
|
%
|
|
$
|
810,744
|
|
|
100.0
|
%
|
|
Year Ended September 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||
|
Remaining Performance Obligations
|
Agreements without an enforceable obligation (1)
|
Backlog
|
|
Remaining Performance Obligations
|
Agreements without an enforceable obligation (1)
|
Backlog
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Commercial & Industrial
|
$
|
152
|
|
$
|
11
|
|
$
|
163
|
|
|
$
|
145
|
|
$
|
61
|
|
$
|
206
|
|
Communications
|
131
|
|
29
|
|
160
|
|
|
85
|
|
9
|
|
94
|
|
||||||
Infrastructure Solutions
|
37
|
|
11
|
|
48
|
|
|
33
|
|
43
|
|
76
|
|
||||||
Residential
|
132
|
|
34
|
|
166
|
|
|
63
|
|
43
|
|
106
|
|
||||||
Total
|
$
|
452
|
|
$
|
85
|
|
$
|
537
|
|
|
$
|
326
|
|
$
|
156
|
|
$
|
482
|
|
•
|
licensing requirements applicable to electricians and mechanical service technicians;
|
•
|
building and electrical codes;
|
•
|
regulations relating to worker safety, labor relations and protection of the environment;
|
•
|
regulations relating to consumer protection, including those governing residential service agreements; and
|
•
|
qualifications of our business legal structure in the jurisdictions where we do business.
|
•
|
geographically separated organizations and possible differences in corporate cultures and management philosophies;
|
•
|
significant demands on management resources, which may distract management’s attention from day-to-day business;
|
•
|
differences in the disclosure systems, compliance requirements, accounting systems, and accounting controls and procedures of the acquired company, which may interfere with our ability to make timely and accurate public disclosure; and
|
•
|
the demands of managing new locations, new personnel and new lines of business acquired.
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of a Publicly Announced Plan
|
Maximum Number of Shares That May Yet Be Purchased Under the Publicly Announced Plan as of September 30, 2019
|
||
July 1, 2019 – July 31, 2019
|
2,818
|
|
$18.00
|
|
2,818
|
1,323,039
|
August 1, 2019 – August 31, 2019
|
55,954
|
|
$18.84
|
|
55,954
|
1,267,085
|
September 1, 2019 – September 30, 2019
|
10,100
|
|
$18.84
|
|
10,100
|
1,256,985
|
Total
|
68,872
|
|
$18.80
|
|
68,872
|
1,256,985
|
|
Year Ended September 30,
|
|||||||||||||||||
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|||||||
IES Holdings, Inc.
|
$
|
100.00
|
|
|
93.58
|
|
|
215.64
|
|
|
209.70
|
|
|
236.36
|
|
|
249.58
|
|
Russell 2000
|
$
|
100.00
|
|
|
101.25
|
|
|
116.91
|
|
|
141.16
|
|
|
162.67
|
|
|
148.21
|
|
Peer Group
|
$
|
100.00
|
|
|
112.69
|
|
|
133.28
|
|
|
156.57
|
|
|
203.36
|
|
|
172.58
|
|
|
|
|
|
Year Ended September 30,
|
||||||||||||||||||
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
|
(In Thousands, Except Share Information)
|
||||||||||||||||||
|
Continuing Operations:
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Revenues
|
$
|
1,076,996
|
|
|
$
|
876,828
|
|
|
$
|
810,744
|
|
|
$
|
695,993
|
|
|
$
|
573,857
|
|
|
|
|
Cost of services
|
894,893
|
|
|
726,866
|
|
|
670,246
|
|
|
569,013
|
|
|
473,966
|
|
||||||
|
|
Gross profit
|
182,103
|
|
|
149,962
|
|
|
140,498
|
|
|
126,980
|
|
|
99,891
|
|
||||||
|
|
|
Selling, general and administrative expenses
|
140,575
|
|
|
123,920
|
|
|
120,370
|
|
|
100,558
|
|
|
81,416
|
|
|||||
|
|
|
Contingent consideration
|
(374
|
)
|
|
103
|
|
|
(145
|
)
|
|
652
|
|
|
—
|
|
|||||
|
|
|
Loss (gain) on sale of assets
|
52
|
|
|
(15
|
)
|
|
(69
|
)
|
|
810
|
|
|
(13
|
)
|
|||||
|
|
Operating Income
|
41,850
|
|
|
25,954
|
|
|
20,342
|
|
|
24,960
|
|
|
18,488
|
|
||||||
|
|
Interest and other (income) expense:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Interest expense
|
1,857
|
|
|
1,946
|
|
|
1,702
|
|
|
1,282
|
|
|
1,130
|
|
|||||
|
|
|
Other income, net
|
(148
|
)
|
|
(340
|
)
|
|
(165
|
)
|
|
(83
|
)
|
|
(180
|
)
|
|||||
|
|
Income from operations before income taxes
|
40,141
|
|
|
24,348
|
|
|
18,805
|
|
|
23,761
|
|
|
17,538
|
|
||||||
|
|
Provision (benefit) for income taxes
|
6,663
|
|
|
38,151
|
|
|
5,211
|
|
|
(97,117
|
)
|
|
661
|
|
||||||
|
|
Net income (loss) from continuing operations
|
33,478
|
|
|
(13,803
|
)
|
|
13,594
|
|
|
120,878
|
|
|
16,877
|
|
||||||
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(339
|
)
|
|||||
|
|
Net loss discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(339
|
)
|
||||||
|
Net income (loss)
|
33,478
|
|
|
(13,803
|
)
|
|
13,594
|
|
|
120,878
|
|
|
16,538
|
|
|||||||
|
|
Net income attributable to noncontrolling interest
|
(272
|
)
|
|
(354
|
)
|
|
(172
|
)
|
|
(100
|
)
|
|
—
|
|
||||||
|
Net income (loss) attributable to IES Holdings, Inc.
|
$
|
33,206
|
|
|
$
|
(14,157
|
)
|
|
$
|
13,422
|
|
|
$
|
120,778
|
|
|
$
|
16,538
|
|
||
|
Basic earnings (loss) per share attributable to IES Holdings, Inc.:
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Continuing operations
|
$
|
1.56
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.62
|
|
|
$
|
5.63
|
|
|
$
|
0.79
|
|
|
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02
|
)
|
||||||
|
Total
|
$
|
1.56
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.62
|
|
|
$
|
5.63
|
|
|
$
|
0.77
|
|
||
|
Diluted earnings (loss) per share attributable to IES Holdings, Inc.:
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Continuing operations
|
$
|
1.55
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.62
|
|
|
$
|
5.62
|
|
|
$
|
0.79
|
|
|
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02
|
)
|
||||||
|
Total
|
$
|
1.55
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.62
|
|
|
$
|
5.62
|
|
|
$
|
0.77
|
|
||
|
Shares used to calculate earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Basic
|
21,082,012
|
|
|
21,196,388
|
|
|
21,280,549
|
|
|
21,279,342
|
|
|
21,480,622
|
|
||||||
|
|
Diluted
|
21,315,245
|
|
|
21,196,388
|
|
|
21,533,254
|
|
|
21,492,339
|
|
|
21,526,188
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Year Ended September 30,
|
||||||||||||||||||
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
|
(In Thousands, Except Share Information)
|
||||||||||||||||||
|
Balance Sheet Data:
|
|
||||||||||||||||||||
|
|
Cash and cash equivalents
|
$
|
18,934
|
|
|
$
|
26,247
|
|
|
$
|
28,290
|
|
|
$
|
32,961
|
|
|
$
|
49,360
|
|
|
|
|
Working capital, exclusive of cash
|
84,049
|
|
|
72,029
|
|
|
52,834
|
|
|
43,716
|
|
|
31,601
|
|
||||||
|
|
Total assets
|
445,258
|
|
|
421,994
|
|
|
424,494
|
|
|
394,340
|
|
|
225,679
|
|
||||||
|
|
Total debt
|
299
|
|
|
29,564
|
|
|
29,434
|
|
|
29,257
|
|
|
9,207
|
|
||||||
|
|
Total stockholders' equity
|
246,248
|
|
|
220,407
|
|
|
236,704
|
|
|
223,405
|
|
|
101,414
|
|
|
|
|
Year Ended September 30,
|
|||||||||||||||||||
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|||||||||
|
|
|
(Dollars in thousands, Percentage of revenues)
|
|||||||||||||||||||
|
Revenues
|
$
|
1,076,996
|
|
|
100.0
|
%
|
|
$
|
876,828
|
|
|
100.0
|
%
|
|
$
|
810,744
|
|
|
100.0
|
%
|
|
|
|
Cost of services
|
894,893
|
|
|
83.1
|
%
|
|
726,866
|
|
|
82.9
|
%
|
|
670,246
|
|
|
82.7
|
%
|
|||
|
Gross profit
|
182,103
|
|
|
16.9
|
%
|
|
149,962
|
|
|
17.1
|
%
|
|
140,498
|
|
|
17.3
|
%
|
||||
|
|
Selling, general and administrative expenses
|
140,575
|
|
|
13.1
|
%
|
|
123,920
|
|
|
14.1
|
%
|
|
120,370
|
|
|
14.8
|
%
|
|||
|
|
Contingent consideration
|
(374
|
)
|
|
—
|
%
|
|
103
|
|
|
—
|
%
|
|
(145
|
)
|
|
—
|
%
|
|||
|
|
Loss (gain) on sale of assets
|
52
|
|
|
—
|
%
|
|
(15
|
)
|
|
—
|
%
|
|
(69
|
)
|
|
—
|
%
|
|||
|
Operating income
|
41,850
|
|
|
3.9
|
%
|
|
25,954
|
|
|
3.0
|
%
|
|
20,342
|
|
|
2.5
|
%
|
||||
|
|
Interest and other expense, net
|
1,709
|
|
|
0.2
|
%
|
|
1,606
|
|
|
0.2
|
%
|
|
1,537
|
|
|
0.2
|
%
|
|||
|
Operating income before income taxes
|
40,141
|
|
|
3.7
|
%
|
|
24,348
|
|
|
2.8
|
%
|
|
18,805
|
|
|
2.3
|
%
|
||||
|
|
Provision (benefit) for income taxes (1)
|
6,663
|
|
|
0.6
|
%
|
|
38,151
|
|
|
4.4
|
%
|
|
5,211
|
|
|
0.6
|
%
|
|||
Net income (loss)
|
33,478
|
|
|
3.1
|
%
|
|
(13,803
|
)
|
|
(1.6
|
)%
|
|
13,594
|
|
|
1.7
|
%
|
|||||
|
Net income attributable to noncontrolling interest
|
(272
|
)
|
|
—
|
%
|
|
(354
|
)
|
|
—
|
%
|
|
(172
|
)
|
|
—
|
%
|
||||
Net income (loss) attributable to IES Holdings, Inc.
|
$
|
33,206
|
|
|
3.1
|
%
|
|
$
|
(14,157
|
)
|
|
(1.6
|
)%
|
|
$
|
13,422
|
|
|
1.7
|
%
|
|
Year Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in thousands, Percentage of revenues)
|
||||||||||||
Revenue
|
$
|
305,624
|
|
|
100.0
|
%
|
|
$
|
274,299
|
|
|
100.0
|
%
|
Cost of services
|
275,722
|
|
|
90.2
|
%
|
|
244,656
|
|
|
89.2
|
%
|
||
Gross Profit
|
29,902
|
|
|
9.8
|
%
|
|
29,643
|
|
|
10.8
|
%
|
||
Selling, general and administrative expenses
|
27,815
|
|
|
9.1
|
%
|
|
27,031
|
|
|
9.9
|
%
|
||
Contingent consideration
|
—
|
|
|
—
|
%
|
|
(100
|
)
|
|
—
|
%
|
||
Gain on sale of assets
|
(30
|
)
|
|
—
|
%
|
|
(37
|
)
|
|
—
|
%
|
||
Operating income
|
2,117
|
|
|
0.7
|
%
|
|
2,749
|
|
|
1.0
|
%
|
|
Year Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in thousands, Percentage of revenues)
|
||||||||||||
Revenues
|
$
|
274,299
|
|
|
100.0
|
%
|
|
$
|
227,606
|
|
|
100.0
|
%
|
Cost of services
|
244,656
|
|
|
89.2
|
%
|
|
208,619
|
|
|
91.7
|
%
|
||
Gross profit
|
29,643
|
|
|
10.8
|
%
|
|
18,987
|
|
|
8.3
|
%
|
||
Selling, general and administrative expenses
|
27,031
|
|
|
9.9
|
%
|
|
20,170
|
|
|
8.8
|
%
|
||
Contingent consideration
|
(100
|
)
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
Gain on sale of assets
|
(37
|
)
|
|
—
|
%
|
|
(32
|
)
|
|
—
|
%
|
||
Operating income (loss)
|
2,749
|
|
|
1.0
|
%
|
|
(1,151
|
)
|
|
(0.5
|
)%
|
|
Year Ended September 30,
|
|||||||
2018
|
|
2017
|
||||||
Revenues
|
$
|
8,572
|
|
|
$
|
32,231
|
|
|
Cost of services
|
9,441
|
|
|
37,819
|
|
|||
Selling, general and administrative expenses
|
1,772
|
|
|
2,848
|
|
|||
Gain on sale of assets
|
(1
|
)
|
|
(27
|
)
|
|||
Operating loss
|
$
|
(2,640
|
)
|
|
$
|
(8,409
|
)
|
|
Year Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in thousands, Percentage of revenues)
|
||||||||||||
Revenues
|
$
|
321,246
|
|
|
100.0
|
%
|
|
$
|
219,655
|
|
|
100.0
|
%
|
Cost of services
|
264,746
|
|
|
82.4
|
%
|
|
179,518
|
|
|
81.7
|
%
|
||
Gross Profit
|
56,500
|
|
|
17.6
|
%
|
|
40,137
|
|
|
18.3
|
%
|
||
Selling, general and administrative expenses
|
31,850
|
|
|
9.9
|
%
|
|
26,003
|
|
|
11.8
|
%
|
||
Contingent consideration
|
(97
|
)
|
|
—
|
%
|
|
(85
|
)
|
|
—
|
%
|
||
Gain on sale of assets
|
(6
|
)
|
|
—
|
%
|
|
(4
|
)
|
|
—
|
%
|
||
Operating Income
|
24,753
|
|
|
7.7
|
%
|
|
14,223
|
|
|
6.5
|
%
|
|
Year Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in thousands, Percentage of revenues)
|
||||||||||||
Revenues
|
$
|
219,655
|
|
|
100.0
|
%
|
|
$
|
225,275
|
|
|
100.0
|
%
|
Cost of services
|
179,518
|
|
|
81.7
|
%
|
|
187,419
|
|
|
83.2
|
%
|
||
Gross Profit
|
40,137
|
|
|
18.3
|
%
|
|
37,856
|
|
|
16.8
|
%
|
||
Selling, general and administrative expenses
|
26,003
|
|
|
11.8
|
%
|
|
24,219
|
|
|
10.8
|
%
|
||
Contingent consideration
|
(85
|
)
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
Gain on sale of assets
|
(4
|
)
|
|
—
|
%
|
|
(1
|
)
|
|
—
|
%
|
||
Operating Income
|
14,223
|
|
|
6.5
|
%
|
|
13,638
|
|
|
6.0
|
%
|
|
Year Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in thousands, Percentage of revenues)
|
||||||||||||
Revenues
|
$
|
136,790
|
|
|
100.0
|
%
|
|
$
|
97,163
|
|
|
100.0
|
%
|
Cost of services
|
105,863
|
|
|
77.4
|
%
|
|
75,337
|
|
|
77.5
|
%
|
||
Gross Profit
|
30,927
|
|
|
22.6
|
%
|
|
21,826
|
|
|
22.5
|
%
|
||
Selling, general and administrative expenses
|
18,664
|
|
|
13.6
|
%
|
|
18,293
|
|
|
18.8
|
%
|
||
Contingent consideration
|
(277
|
)
|
|
(0.2
|
)%
|
|
288
|
|
|
0.3
|
%
|
||
Loss on sale of assets
|
105
|
|
|
0.1
|
%
|
|
18
|
|
|
—
|
%
|
||
Operating Income
|
12,435
|
|
|
9.1
|
%
|
|
3,227
|
|
|
3.3
|
%
|
|
Year Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in thousands, Percentage of revenues)
|
||||||||||||
Revenues
|
$
|
97,163
|
|
|
100.0
|
%
|
|
$
|
83,824
|
|
|
100.0
|
%
|
Cost of services
|
75,337
|
|
|
77.5
|
%
|
|
63,399
|
|
|
75.6
|
%
|
||
Gross Profit
|
21,826
|
|
|
22.5
|
%
|
|
20,425
|
|
|
24.4
|
%
|
||
Selling, general and administrative expenses
|
18,293
|
|
|
18.8
|
%
|
|
17,859
|
|
|
21.3
|
%
|
||
Contingent consideration
|
288
|
|
|
0.3
|
%
|
|
(145
|
)
|
|
(0.1
|
)%
|
||
(Gain)/Loss on sale of assets
|
18
|
|
|
—
|
%
|
|
(79
|
)
|
|
(0.1
|
)%
|
||
Operating Income
|
3,227
|
|
|
3.3
|
%
|
|
2,790
|
|
|
3.3
|
%
|
|
Year Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in thousands, Percentage of revenues)
|
||||||||||||
Revenues
|
$
|
313,336
|
|
|
100.0
|
%
|
|
$
|
285,711
|
|
|
100.0
|
%
|
Cost of services
|
248,562
|
|
|
79.3
|
%
|
|
227,355
|
|
|
79.6
|
%
|
||
Gross Profit
|
64,774
|
|
|
20.7
|
%
|
|
58,356
|
|
|
20.4
|
%
|
||
Selling, general and administrative expenses
|
46,864
|
|
|
15.0
|
%
|
|
41,401
|
|
|
14.5
|
%
|
||
(Gain)/Loss on sale of assets
|
(17
|
)
|
|
—
|
%
|
|
8
|
|
|
—
|
%
|
||
Operating Income
|
17,927
|
|
|
5.7
|
%
|
|
16,947
|
|
|
5.9
|
%
|
|
Year Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in thousands, Percentage of revenues)
|
||||||||||||
Revenues
|
$
|
285,711
|
|
|
100.0
|
%
|
|
$
|
274,039
|
|
|
100.0
|
%
|
Cost of services
|
227,355
|
|
|
79.6
|
%
|
|
210,809
|
|
|
76.9
|
%
|
||
Gross Profit
|
58,356
|
|
|
20.4
|
%
|
|
63,230
|
|
|
23.1
|
%
|
||
Selling, general and administrative expenses
|
41,401
|
|
|
14.5
|
%
|
|
43,689
|
|
|
16.0
|
%
|
||
Loss on sale of assets
|
8
|
|
|
—
|
%
|
|
43
|
|
|
—
|
%
|
||
Operating Income
|
16,947
|
|
|
5.9
|
%
|
|
19,498
|
|
|
7.1
|
%
|
|
Year Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Interest expense
|
$
|
1,539
|
|
|
$
|
1,658
|
|
|
$
|
1,408
|
|
Deferred financing charges
|
318
|
|
|
288
|
|
|
294
|
|
|||
Total interest expense
|
1,857
|
|
|
1,946
|
|
|
1,702
|
|
|||
Other income, net
|
(148
|
)
|
|
(340
|
)
|
|
(165
|
)
|
|||
Total interest and other expense, net
|
1,709
|
|
|
1,606
|
|
|
1,537
|
|
|
|
|
|
|
Level
|
|
Thresholds
|
|
Interest Rate Margin
|
I
|
|
If Liquidity is less than 35% of the Maximum Revolver Amount at any time during the period
|
|
1.75 percentage points
|
|
|
|
||
II
|
|
If Liquidity is greater than or equal to 35% of the Maximum Revolver Amount at all times during the period and less than 50% of the Maximum Revolver Amount at any time during the period
|
|
1.50 percentage points
|
|
|
|
||
III
|
|
If Liquidity is greater than or equal to 50% of the Maximum Revolver Amount at all times during the period
|
|
1.25 percentage points
|
|
Less than
|
|
1 to 3
|
|
3 to 5
|
|
More than
|
|
|
||||||||||
|
1 Year
|
|
Years
|
|
Years
|
|
5 Years
|
|
Total
|
||||||||||
Long-term debt obligations
|
$
|
—
|
|
|
$
|
299
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
299
|
|
Operating lease obligations
|
8,101
|
|
|
10,985
|
|
|
5,269
|
|
|
3,595
|
|
|
27,950
|
|
|||||
Total
|
$
|
8,101
|
|
|
$
|
11,284
|
|
|
$
|
5,269
|
|
|
$
|
3,595
|
|
|
$
|
28,249
|
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Total
|
||||||||||
Standby letters of credit
|
$
|
3,018
|
|
|
$
|
3,450
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,468
|
|
Total
|
$
|
3,018
|
|
|
$
|
3,450
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,468
|
|
|
|
|
Year Ended September 30,
|
||||||||||
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
$
|
1,076,996
|
|
|
$
|
876,828
|
|
|
$
|
810,744
|
|
||
Cost of services
|
894,893
|
|
|
726,866
|
|
|
670,246
|
|
|||||
|
Gross profit
|
182,103
|
|
|
149,962
|
|
|
140,498
|
|
||||
Selling, general and administrative expenses
|
140,575
|
|
|
123,920
|
|
|
120,370
|
|
|||||
Contingent consideration
|
(374
|
)
|
|
103
|
|
|
(145
|
)
|
|||||
Loss (gain) on sale of assets
|
52
|
|
|
(15
|
)
|
|
(69
|
)
|
|||||
|
Operating income
|
41,850
|
|
|
25,954
|
|
|
20,342
|
|
||||
Interest and other (income) expense:
|
|
|
|
|
|
||||||||
Interest expense
|
1,857
|
|
|
1,946
|
|
|
1,702
|
|
|||||
Other (income) expense, net
|
(148
|
)
|
|
(340
|
)
|
|
(165
|
)
|
|||||
Income from operations before income taxes
|
40,141
|
|
|
24,348
|
|
|
18,805
|
|
|||||
Provision (benefit) for income taxes
|
6,663
|
|
|
38,151
|
|
|
5,211
|
|
|||||
Net income (loss)
|
33,478
|
|
|
(13,803
|
)
|
|
13,594
|
|
|||||
Net income attributable to noncontrolling interest
|
(272
|
)
|
|
(354
|
)
|
|
(172
|
)
|
|||||
Comprehensive income (loss) attributable to IES Holdings, Inc.
|
$
|
33,206
|
|
|
$
|
(14,157
|
)
|
|
$
|
13,422
|
|
||
|
|
|
|
|
|
|
|
||||||
Earnings (loss) per share attributable to IES Holdings, Inc.:
|
|
|
|
|
|
||||||||
|
Basic
|
$
|
1.56
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.62
|
|
|
|
Diluted
|
$
|
1.55
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.62
|
|
|
|
|
|
|
|
|
|
|
||||||
Shares used in the computation of earnings (loss) per share:
|
|
|
|
|
|
||||||||
|
Basic
|
21,082,012
|
|
|
21,196,388
|
|
|
21,280,549
|
|
||||
|
Diluted
|
21,315,245
|
|
|
21,196,388
|
|
|
21,533,254
|
|
|
|
Common Stock
|
|
Treasury Stock
|
|
|
|
Retained Earnings
|
|
Total Stockholders' Equity
|
||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
APIC
|
|
|
||||||||||||||
BALANCE, September 30, 2016
|
22,049,529
|
|
|
$
|
220
|
|
|
(592,990
|
)
|
|
$
|
(4,781
|
)
|
|
$
|
195,221
|
|
|
$
|
32,745
|
|
|
$
|
223,405
|
|
|
|
Grants under compensation plans
|
—
|
|
|
—
|
|
|
1,803
|
|
|
15
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|||||
|
Cumulative effect adjustment from adoption of ASU 2016-09
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
304
|
|
|
363
|
|
|||||
|
Acquisition of treasury stock
|
—
|
|
|
—
|
|
|
(152,860
|
)
|
|
(2,367
|
)
|
|
—
|
|
|
—
|
|
|
(2,367
|
)
|
|||||
|
Stock forfeitures
|
—
|
|
|
—
|
|
|
(2,257
|
)
|
|
(40
|
)
|
|
40
|
|
|
—
|
|
|
—
|
|
|||||
|
Options exercised
|
—
|
|
|
—
|
|
|
33,750
|
|
|
275
|
|
|
(57
|
)
|
|
—
|
|
|
218
|
|
|||||
|
Non-cash compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,707
|
|
|
—
|
|
|
1,707
|
|
|||||
|
Increase in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
(44
|
)
|
|||||
|
Net income attributable to IES Holdings, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,422
|
|
|
13,422
|
|
|||||
BALANCE, September 30, 2017
|
22,049,529
|
|
|
$
|
220
|
|
|
(712,554
|
)
|
|
$
|
(6,898
|
)
|
|
$
|
196,955
|
|
|
$
|
46,427
|
|
|
$
|
236,704
|
|
|
|
Grants under compensation plans
|
—
|
|
|
—
|
|
|
520
|
|
|
5
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|||||
|
Acquisition of treasury stock
|
—
|
|
|
—
|
|
|
(133,459
|
)
|
|
(2,059
|
)
|
|
—
|
|
|
—
|
|
|
(2,059
|
)
|
|||||
|
Options exercised
|
—
|
|
|
—
|
|
|
1,500
|
|
|
15
|
|
|
(4
|
)
|
|
—
|
|
|
11
|
|
|||||
|
Non-cash compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(136
|
)
|
|
—
|
|
|
(136
|
)
|
|||||
|
Decrease in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
44
|
|
|||||
|
Net loss attributable to IES Holdings, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,157
|
)
|
|
(14,157
|
)
|
|||||
BALANCE, September 30, 2018
|
22,049,529
|
|
|
$
|
220
|
|
|
(843,993
|
)
|
|
$
|
(8,937
|
)
|
|
$
|
196,810
|
|
|
$
|
32,314
|
|
|
$
|
220,407
|
|
|
|
Issuance of restricted stock & performance stock
|
—
|
|
|
—
|
|
|
501,797
|
|
|
5,942
|
|
|
(5,942
|
)
|
|
—
|
|
|
—
|
|
|||||
|
Options exercised
|
—
|
|
|
—
|
|
|
22,500
|
|
|
314
|
|
|
(314
|
)
|
|
—
|
|
|
—
|
|
|||||
|
Cumulative effect adjustment from adoption of new accounting standard
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
80
|
|
|||||
|
Acquisition of treasury stock
|
—
|
|
|
—
|
|
|
(564,822
|
)
|
|
(9,802
|
)
|
|
—
|
|
|
—
|
|
|
(9,802
|
)
|
|||||
|
Non-cash compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,357
|
|
|
—
|
|
|
2,357
|
|
|||||
|
Net income attributable to IES Holdings, Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,206
|
|
|
33,206
|
|
|||||
BALANCE, September 30, 2019
|
22,049,529
|
|
|
$
|
220
|
|
|
(884,518
|
)
|
|
$
|
(12,483
|
)
|
|
$
|
192,911
|
|
|
$
|
65,600
|
|
|
$
|
246,248
|
|
|
Year Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
33,478
|
|
|
$
|
(13,803
|
)
|
|
$
|
13,594
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Bad debt expense
|
552
|
|
|
421
|
|
|
296
|
|
|||
Deferred financing cost amortization
|
318
|
|
|
288
|
|
|
294
|
|
|||
Depreciation and amortization
|
9,557
|
|
|
8,860
|
|
|
9,634
|
|
|||
Loss (gain) on sale of assets
|
52
|
|
|
(15
|
)
|
|
(69
|
)
|
|||
Non-cash compensation expense
|
2,357
|
|
|
(136
|
)
|
|
1,707
|
|
|||
Deferred income taxes
|
5,681
|
|
|
38,151
|
|
|
6,899
|
|
|||
Changes in operating assets and liabilities
|
|
|
|
|
|
||||||
Accounts receivable
|
(35,254
|
)
|
|
(7,574
|
)
|
|
(7,621
|
)
|
|||
Inventories
|
(684
|
)
|
|
(3,970
|
)
|
|
(1,856
|
)
|
|||
Costs and estimated earnings in excess of billings
|
1,586
|
|
|
(17,840
|
)
|
|
2,571
|
|
|||
Prepaid expenses and other current assets
|
(7,171
|
)
|
|
(2,250
|
)
|
|
(6,798
|
)
|
|||
Other non-current assets
|
(444
|
)
|
|
274
|
|
|
(510
|
)
|
|||
Accounts payable and accrued expenses
|
22,472
|
|
|
6,584
|
|
|
(2,829
|
)
|
|||
Billings in excess of costs and estimated earnings
|
6,683
|
|
|
3,570
|
|
|
5,898
|
|
|||
Other non-current liabilities
|
(459
|
)
|
|
(336
|
)
|
|
1,139
|
|
|||
Net cash provided by operating activities
|
38,724
|
|
|
12,224
|
|
|
22,349
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchases of property and equipment
|
(6,300
|
)
|
|
(4,563
|
)
|
|
(4,589
|
)
|
|||
Proceeds from sales of assets
|
502
|
|
|
108
|
|
|
270
|
|
|||
Cash received (paid) in conjunction with business combinations or dispositions
|
50
|
|
|
(7,406
|
)
|
|
(20,213
|
)
|
|||
Net cash used in investing activities
|
(5,748
|
)
|
|
(11,861
|
)
|
|
(24,532
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Borrowings of debt
|
89,261
|
|
|
168
|
|
|
5,434
|
|
|||
Repayments of debt
|
(119,508
|
)
|
|
(177
|
)
|
|
(5,432
|
)
|
|||
Contingent consideration payment
|
—
|
|
|
—
|
|
|
(448
|
)
|
|||
Distribution to noncontrolling interest
|
(240
|
)
|
|
(349
|
)
|
|
(153
|
)
|
|||
Purchase of treasury stock
|
(9,802
|
)
|
|
(2,059
|
)
|
|
(2,367
|
)
|
|||
Issuance of shares
|
—
|
|
|
11
|
|
|
218
|
|
|||
Net cash provided by (used in) financing activities
|
(40,289
|
)
|
|
(2,406
|
)
|
|
(2,748
|
)
|
|||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(7,313
|
)
|
|
(2,043
|
)
|
|
(4,931
|
)
|
|||
CASH, CASH EQUIVALENTS, beginning of period
|
26,247
|
|
|
28,290
|
|
|
33,221
|
|
|||
CASH, CASH EQUIVALENTS, end of period
|
$
|
18,934
|
|
|
$
|
26,247
|
|
|
$
|
28,290
|
|
|
|
|
|
|
|
||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
1,743
|
|
|
$
|
1,684
|
|
|
$
|
1,521
|
|
Cash paid for income taxes (net)
|
$
|
1,370
|
|
|
$
|
2,839
|
|
|
$
|
2,429
|
|
•
|
Commercial & Industrial – Provider of electrical and mechanical design, construction, and maintenance services to the commercial and industrial markets in various regional markets and nationwide in certain areas of expertise, such as the power infrastructure market.
|
•
|
Communications – Nationwide provider of technology infrastructure services, including the design, build, and maintenance of the communications infrastructure within data centers for colocation and managed hosting customers for both large corporations and independent businesses.
|
•
|
Infrastructure Solutions – Provider of electro-mechanical solutions for industrial operations, including apparatus repair and custom-engineered products such as generator enclosures to be used in data centers and other industrial applications.
|
•
|
Residential – Regional provider of electrical installation services for single-family housing and multi-family apartment complexes.
|
|
Year Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Commercial & Industrial
|
$
|
305,624
|
|
|
$
|
274,299
|
|
|
$
|
227,606
|
|
Communications
|
321,246
|
|
|
219,655
|
|
|
225,275
|
|
|||
Infrastructure Solutions
|
|
|
|
|
|
||||||
Industrial Services
|
48,948
|
|
|
44,701
|
|
|
46,079
|
|
|||
Custom Power Solutions
|
87,842
|
|
|
52,462
|
|
|
37,745
|
|
|||
Total Infrastructure Solutions
|
136,790
|
|
|
97,163
|
|
|
83,824
|
|
|||
Residential
|
|
|
|
|
|
||||||
Single-family
|
212,358
|
|
|
190,379
|
|
|
162,100
|
|
|||
Multi-family and Other
|
100,978
|
|
|
95,332
|
|
|
111,939
|
|
|||
Total Residential
|
313,336
|
|
|
285,711
|
|
|
274,039
|
|
|||
Total Revenue
|
$
|
1,076,996
|
|
|
$
|
876,828
|
|
|
$
|
810,744
|
|
|
|
Year Ended September 30, 2019
|
|||||||||||||||||||
|
|
|
Commercial & Industrial
|
|
Communications
|
|
Infrastructure Solutions
|
|
Residential
|
|
Total
|
||||||||||
Fixed-price
|
|
$
|
286,319
|
|
|
$
|
229,143
|
|
|
$
|
129,096
|
|
|
$
|
313,336
|
|
|
$
|
957,894
|
|
|
Time-and-material
|
|
|
19,305
|
|
|
|
92,103
|
|
|
|
7,694
|
|
|
|
—
|
|
|
|
119,102
|
|
|
Total revenue
|
|
$
|
305,624
|
|
|
$
|
321,246
|
|
|
$
|
136,790
|
|
|
$
|
313,336
|
|
|
$
|
1,076,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year Ended September 30, 2018
|
|||||||||||||||||||
|
|
|
Commercial & Industrial
|
|
Communications
|
|
Infrastructure Solutions
|
|
Residential
|
|
Total
|
||||||||||
Fixed-price
|
|
$
|
244,464
|
|
|
$
|
166,258
|
|
|
$
|
90,155
|
|
|
$
|
285,711
|
|
|
$
|
786,588
|
|
|
Time-and-material
|
|
|
29,835
|
|
|
|
53,397
|
|
|
|
7,008
|
|
|
|
—
|
|
|
|
90,240
|
|
|
Total revenue
|
|
$
|
274,299
|
|
|
$
|
219,655
|
|
|
$
|
97,163
|
|
|
$
|
285,711
|
|
|
$
|
876,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Year Ended September 30, 2017
|
|||||||||||||||||||
|
|
|
Commercial & Industrial
|
|
Communications
|
|
Infrastructure Solutions
|
|
Residential
|
|
Total
|
||||||||||
Fixed-price
|
|
$
|
206,850
|
|
|
$
|
174,922
|
|
|
$
|
76,232
|
|
|
$
|
274,039
|
|
|
$
|
732,043
|
|
|
Time-and-material
|
|
|
20,756
|
|
|
|
50,353
|
|
|
|
7,592
|
|
|
|
—
|
|
|
|
78,701
|
|
|
Total revenue
|
|
$
|
227,606
|
|
|
$
|
225,275
|
|
|
$
|
83,824
|
|
|
$
|
274,039
|
|
|
$
|
810,744
|
|
|
|
September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Costs and estimated earnings on uncompleted contracts
|
|
$
|
761,401
|
|
|
$
|
539,226
|
|
Less: Billings to date and unbilled accounts receivable
|
|
|
(772,104
|
)
|
|
|
(541,606
|
)
|
|
|
$
|
(10,703
|
)
|
|
$
|
(2,380
|
)
|
|
|
September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Costs and estimated earnings in excess of billings
|
|
$
|
29,860
|
|
|
$
|
31,446
|
|
Billings in excess of costs and estimated earnings
|
|
|
(40,563
|
)
|
|
|
(33,826
|
)
|
|
|
$
|
(10,703
|
)
|
|
$
|
(2,380
|
)
|
|
Estimated Useful Lives in Years
|
Year Ended September 30,
|
||||||
|
2019
|
|
2018
|
|||||
Land
|
N/A
|
$
|
1,436
|
|
|
$
|
1,348
|
|
Buildings and improvements
|
5-20
|
13,608
|
|
|
12,479
|
|
||
Machinery and equipment
|
3-10
|
30,600
|
|
|
27,443
|
|
||
Information systems
|
2-8
|
7,945
|
|
|
7,854
|
|
||
Furniture and fixtures
|
5-7
|
1,587
|
|
|
1,579
|
|
||
|
|
$
|
55,176
|
|
|
$
|
50,703
|
|
Less-Accumulated depreciation
|
|
(29,560
|
)
|
|
(25,613
|
)
|
||
Construction in progress
|
|
130
|
|
|
274
|
|
||
Property and equipment, net
|
|
$
|
25,746
|
|
|
$
|
25,364
|
|
|
Year Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income (loss) attributable to common shareholders of IES Holdings, Inc.
|
$
|
32,950
|
|
|
$
|
(14,113
|
)
|
|
$
|
13,275
|
|
Increase (decrease) in noncontrolling interest
|
—
|
|
|
(44
|
)
|
|
44
|
|
|||
Net income attributable to restricted shareholders of IES Holdings, Inc.
|
256
|
|
|
—
|
|
|
103
|
|
|||
Net income (loss) attributable to IES Holdings, Inc.
|
$
|
33,206
|
|
|
$
|
(14,157
|
)
|
|
$
|
13,422
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
||||||
Weighted average common shares outstanding — basic
|
21,082,012
|
|
|
21,196,388
|
|
|
21,280,549
|
|
|||
Effect of dilutive stock options and non-vested securities
|
233,233
|
|
|
—
|
|
|
252,705
|
|
|||
Weighted average common and common equivalent shares outstanding — diluted
|
21,315,245
|
|
|
21,196,388
|
|
|
21,533,254
|
|
|||
|
|
|
|
|
|
||||||
Earnings (loss) per share attributable to IES Holdings, Inc.:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.56
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.62
|
|
Diluted
|
$
|
1.55
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.62
|
|
|
Year Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Balance at beginning of period
|
$
|
868
|
|
|
$
|
650
|
|
Additions to costs and expenses
|
552
|
|
|
515
|
|
||
Deductions for uncollectible receivables written off, net of recoveries
|
(236
|
)
|
|
(297
|
)
|
||
Balance at end of period
|
$
|
1,184
|
|
|
$
|
868
|
|
|
Year Ended September 30,
|
||||
|
2019
|
|
2018
|
||
Accounts payable, trade
|
$
|
85,276
|
|
|
75,293
|
Accrued compensation and benefits
|
42,828
|
|
|
34,058
|
|
Accrued insurance liabilities
|
6,683
|
|
|
6,202
|
|
Other accrued expenses
|
18,122
|
|
|
15,038
|
|
|
$
|
152,909
|
|
|
130,591
|
|
Year Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Executive Savings Plan assets
|
$
|
763
|
|
|
$
|
747
|
|
Securities and equity investments
|
408
|
|
|
558
|
|
||
Other
|
3,767
|
|
|
4,760
|
|
||
Total
|
$
|
4,938
|
|
|
$
|
6,065
|
|
|
Year Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Revolving loan (long-term debt)
|
$
|
—
|
|
|
$
|
30,247
|
|
Debt issuance costs (1)
|
—
|
|
|
(912
|
)
|
||
Other long-term debt
|
299
|
|
|
229
|
|
||
Total debt
|
$
|
299
|
|
|
$
|
29,564
|
|
|
Year Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Federal:
|
|
|
|
|
|
||||||
Current
|
$
|
(1,330
|
)
|
|
$
|
(2,345
|
)
|
|
$
|
(3,092
|
)
|
Deferred
|
5,908
|
|
|
38,744
|
|
|
6,384
|
|
|||
State:
|
|
|
|
|
|
||||||
Current
|
2,312
|
|
|
1,536
|
|
|
1,432
|
|
|||
Deferred
|
(227
|
)
|
|
216
|
|
|
487
|
|
|||
Total provision for income taxes
|
$
|
6,663
|
|
|
$
|
38,151
|
|
|
$
|
5,211
|
|
|
Year Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Provision at the statutory rate (1)
|
$
|
8,430
|
|
|
$
|
5,973
|
|
|
$
|
6,582
|
|
Increase resulting from:
|
|
|
|
|
|
||||||
Non-deductible expenses
|
1,277
|
|
|
1,241
|
|
|
1,173
|
|
|||
State income taxes, net of federal deduction
|
2,009
|
|
|
1,193
|
|
|
1,003
|
|
|||
Change in valuation allowance
|
—
|
|
|
1,761
|
|
|
142
|
|
|||
Rate change
|
—
|
|
|
31,333
|
|
|
—
|
|
|||
Other
|
—
|
|
|
183
|
|
|
17
|
|
|||
Decrease resulting from:
|
|
|
|
|
|
||||||
Share-based compensation
|
(556
|
)
|
|
(238
|
)
|
|
(207
|
)
|
|||
Change in valuation allowance
|
(83
|
)
|
|
—
|
|
|
—
|
|
|||
Contingent tax liabilities
|
(3,967
|
)
|
|
(1,908
|
)
|
|
(3,499
|
)
|
|||
State deferred true up
|
—
|
|
|
(1,387
|
)
|
|
—
|
|
|||
Other
|
(447
|
)
|
|
—
|
|
|
—
|
|
|||
Total provision for income taxes
|
$
|
6,663
|
|
|
$
|
38,151
|
|
|
$
|
5,211
|
|
|
Year Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Deferred income tax assets:
|
|
|
|
||||
Allowance for doubtful accounts
|
$
|
245
|
|
|
$
|
207
|
|
Accrued expenses
|
9,783
|
|
|
8,054
|
|
||
Net operating loss carryforward
|
39,045
|
|
|
46,881
|
|
||
Various reserves
|
1,396
|
|
|
1,172
|
|
||
Equity losses in affiliate
|
119
|
|
|
119
|
|
||
Share-based compensation
|
672
|
|
|
665
|
|
||
Capital loss carryforward
|
74
|
|
|
94
|
|
||
Other
|
1,137
|
|
|
712
|
|
||
Subtotal
|
52,471
|
|
|
57,904
|
|
||
Less valuation allowance
|
4,044
|
|
|
4,127
|
|
||
Total deferred income tax assets
|
48,427
|
|
|
53,777
|
|
||
Deferred income tax liabilities:
|
|
|
|
||||
Property and equipment
|
840
|
|
|
1,122
|
|
||
Intangible assets
|
5,978
|
|
|
5,499
|
|
||
Other
|
735
|
|
|
576
|
|
||
Total deferred income tax liabilities
|
7,553
|
|
|
7,197
|
|
||
Net deferred income tax assets
|
$
|
40,874
|
|
|
$
|
46,580
|
|
|
Year Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Balance at beginning of period
|
$
|
30,256
|
|
|
$
|
51,968
|
|
Additions for position related to current year
|
93
|
|
|
13
|
|
||
Additions for positions of prior years
|
19
|
|
|
272
|
|
||
Reduction resulting from the lapse of the applicable statutes of limitations
|
4,074
|
|
|
3,361
|
|
||
Reduction resulting from rate change
|
—
|
|
|
18,636
|
|
||
Balance at end of period
|
$
|
26,294
|
|
|
$
|
30,256
|
|
|
|
Year Ended September 30, 2019
|
||||||||||||||||||||||
|
|
Commercial & Industrial
|
|
Communications
|
|
Infrastructure Solutions
|
|
Residential
|
|
Corporate
|
|
Total
|
||||||||||||
Revenues
|
$
|
305,624
|
|
|
$
|
321,246
|
|
|
$
|
136,790
|
|
|
$
|
313,336
|
|
|
$
|
—
|
|
|
$
|
1,076,996
|
|
|
Cost of services
|
275,722
|
|
|
264,746
|
|
|
105,863
|
|
|
248,562
|
|
|
—
|
|
|
894,893
|
|
|||||||
Gross profit
|
29,902
|
|
|
56,500
|
|
|
30,927
|
|
|
64,774
|
|
|
—
|
|
|
182,103
|
|
|||||||
Selling, general and administrative
|
27,815
|
|
|
31,850
|
|
|
18,664
|
|
|
46,864
|
|
|
15,382
|
|
|
140,575
|
|
|||||||
Contingent consideration
|
—
|
|
|
(97
|
)
|
|
(277
|
)
|
|
—
|
|
|
—
|
|
|
(374
|
)
|
|||||||
Loss (gain) on sale of assets
|
(30
|
)
|
|
(6
|
)
|
|
105
|
|
|
(17
|
)
|
|
—
|
|
|
52
|
|
|||||||
Income (loss) from operations
|
$
|
2,117
|
|
|
$
|
24,753
|
|
|
$
|
12,435
|
|
|
$
|
17,927
|
|
|
$
|
(15,382
|
)
|
|
$
|
41,850
|
|
|
Other data:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Depreciation and amortization expense
|
$
|
2,563
|
|
|
$
|
1,513
|
|
|
$
|
4,528
|
|
|
$
|
852
|
|
|
$
|
101
|
|
|
$
|
9,557
|
|
|
Capital expenditures
|
$
|
2,402
|
|
|
$
|
973
|
|
|
$
|
1,377
|
|
|
$
|
1,412
|
|
|
$
|
136
|
|
|
$
|
6,300
|
|
|
Total assets
|
$
|
82,050
|
|
|
$
|
109,263
|
|
|
$
|
116,867
|
|
|
$
|
63,903
|
|
|
$
|
73,175
|
|
|
$
|
445,258
|
|
|
|
Year Ended September 30, 2018
|
||||||||||||||||||||||
|
|
Commercial & Industrial
|
|
Communications
|
|
Infrastructure Solutions
|
|
Residential
|
|
Corporate
|
|
Total
|
||||||||||||
Revenues
|
$
|
274,299
|
|
|
$
|
219,655
|
|
|
$
|
97,163
|
|
|
$
|
285,711
|
|
|
$
|
—
|
|
|
$
|
876,828
|
|
|
Cost of services
|
244,656
|
|
|
179,518
|
|
|
75,337
|
|
|
227,355
|
|
|
—
|
|
|
726,866
|
|
|||||||
Gross profit
|
29,643
|
|
|
40,137
|
|
|
21,826
|
|
|
58,356
|
|
|
—
|
|
|
149,962
|
|
|||||||
Selling, general and administrative
|
27,031
|
|
|
26,003
|
|
|
18,293
|
|
|
41,401
|
|
|
11,192
|
|
|
123,920
|
|
|||||||
Contingent consideration
|
(100
|
)
|
|
(85
|
)
|
|
288
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|||||||
Loss (gain) on sale of assets
|
(37
|
)
|
|
(4
|
)
|
|
18
|
|
|
8
|
|
|
—
|
|
|
(15
|
)
|
|||||||
Income (loss) from operations
|
$
|
2,749
|
|
|
$
|
14,223
|
|
|
$
|
3,227
|
|
|
$
|
16,947
|
|
|
$
|
(11,192
|
)
|
|
$
|
25,954
|
|
|
Other data:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Depreciation and amortization expense
|
$
|
2,197
|
|
|
$
|
1,247
|
|
|
$
|
4,672
|
|
|
$
|
637
|
|
|
$
|
107
|
|
|
$
|
8,860
|
|
|
Capital expenditures
|
$
|
2,216
|
|
|
$
|
647
|
|
|
$
|
735
|
|
|
$
|
932
|
|
|
$
|
33
|
|
|
$
|
4,563
|
|
|
Total assets
|
$
|
89,729
|
|
|
$
|
80,528
|
|
|
$
|
109,506
|
|
|
$
|
55,176
|
|
|
$
|
87,055
|
|
|
$
|
421,994
|
|
|
|
Year Ended September 30, 2017
|
||||||||||||||||||||||
|
|
Commercial & Industrial
|
|
Communications
|
|
Infrastructure Solutions
|
|
Residential
|
|
Corporate
|
|
Total
|
||||||||||||
Revenues
|
$
|
227,606
|
|
|
$
|
225,275
|
|
|
$
|
83,824
|
|
|
$
|
274,039
|
|
|
$
|
—
|
|
|
$
|
810,744
|
|
|
Cost of services
|
208,619
|
|
|
187,419
|
|
|
63,399
|
|
|
210,809
|
|
|
—
|
|
|
670,246
|
|
|||||||
Gross profit
|
18,987
|
|
|
37,856
|
|
|
20,425
|
|
|
63,230
|
|
|
—
|
|
|
140,498
|
|
|||||||
Selling, general and administrative
|
20,170
|
|
|
24,219
|
|
|
17,859
|
|
|
43,689
|
|
|
14,433
|
|
|
120,370
|
|
|||||||
Contingent consideration
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|||||||
Loss (gain) on sale of assets
|
(32
|
)
|
|
(1
|
)
|
|
(79
|
)
|
|
43
|
|
|
—
|
|
|
(69
|
)
|
|||||||
Income (loss) from operations
|
$
|
(1,151
|
)
|
|
$
|
13,638
|
|
|
$
|
2,790
|
|
|
$
|
19,498
|
|
|
$
|
(14,433
|
)
|
|
$
|
20,342
|
|
|
Other data:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Depreciation and amortization expense
|
$
|
1,648
|
|
|
$
|
740
|
|
|
$
|
6,412
|
|
|
$
|
565
|
|
|
$
|
269
|
|
|
$
|
9,634
|
|
|
Capital expenditures
|
$
|
1,241
|
|
|
$
|
2,046
|
|
|
$
|
538
|
|
|
$
|
561
|
|
|
$
|
203
|
|
|
$
|
4,589
|
|
|
Total assets
|
$
|
84,756
|
|
|
$
|
63,917
|
|
|
$
|
106,114
|
|
|
$
|
51,994
|
|
|
$
|
117,713
|
|
|
$
|
424,494
|
|
|
Year Ended September 30,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Unvested at beginning of year
|
—
|
|
|
140,668
|
|
|
174,334
|
|
Granted
|
283,195
|
|
|
—
|
|
|
—
|
|
Vested
|
—
|
|
|
(140,668
|
)
|
|
(31,409
|
)
|
Forfeited
|
—
|
|
|
—
|
|
|
(2,257
|
)
|
Unvested at end of year
|
283,195
|
|
|
—
|
|
|
140,668
|
|
1.
|
Time-Based Award: 80,000 restricted shares vest over a four-year period ending March 4, 2023, based on continued employment with the Company, with 20,000 shares vesting each year.
|
|
|
|
|
2.
|
Long-term Incentive Plan Award: Subject to a service requirement, 23,195 restricted shares vest contingent upon the Company achieving specified performance targets for the three-year period ending September 30, 2021.
|
|
|
|
|
3.
|
Stock Price-Based Awards: Subject to a service requirement, 180,000 restricted shares vest in four tranches when the closing price per share of the Company's common stock equals or exceeds the price specified below for such tranche for any 20 trading days out of 25 consecutive trading days (the "Vesting Stock Price") at any time during the five years ending March 4, 2024.
|
|
|
|
|
|
a.
|
Tranche 1: 60,000 shares with a Vesting Stock Price of $35 per share;
|
|
|
|
|
b.
|
Tranche 2: 40,000 shares with a Vesting Stock Price of $40 per share;
|
|
|
|
|
c.
|
Tranche 3: 40,000 shares with a Vesting Stock Price of $45 per share;
|
|
|
|
|
d.
|
Tranche 4: 40,000 shares with a Vesting Stock Price of $50 per share;
|
Outstanding and Exercisable as of September 30, 2019
|
|
Remaining Contractual Life in Years
|
|
Weighted-Average Exercise Price
|
|
13,000
|
|
|
3.58
|
|
$5.76
|
1,000
|
|
|
5.29
|
|
$7.27
|
7,750
|
|
|
5.34
|
|
$7.21
|
21,750
|
|
|
|
|
$6.35
|
|
September 30, 2019
|
||||||||||
|
Total Fair Value
|
|
Quoted Prices (Level 1)
|
|
Significant Unobservable (Level 3)
|
||||||
Executive savings plan assets
|
$
|
763
|
|
|
$
|
763
|
|
|
$
|
—
|
|
Executive savings plan liabilities
|
(646
|
)
|
|
(646
|
)
|
|
—
|
|
|||
Contingent consideration liability
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|||
Total
|
$
|
106
|
|
|
$
|
117
|
|
|
$
|
(11
|
)
|
|
September 30, 2018
|
||||||||||
|
Total Fair Value
|
|
Quoted Prices (Level 1)
|
|
Significant Unobservable (Level 3)
|
||||||
Executive savings plan assets
|
$
|
747
|
|
|
$
|
747
|
|
|
$
|
—
|
|
Executive savings plan liabilities
|
(631
|
)
|
|
(631
|
)
|
|
—
|
|
|||
Contingent consideration liability
|
(680
|
)
|
|
—
|
|
|
(680
|
)
|
|||
Total
|
$
|
(564
|
)
|
|
$
|
116
|
|
|
$
|
(680
|
)
|
|
Contingent Consideration Agreement
|
||
Fair Value at September 30, 2018
|
$
|
680
|
|
Settlements
|
(295
|
)
|
|
Net adjustments to fair value
|
(374
|
)
|
|
Fair Value at September 30, 2019
|
$
|
11
|
|
|
September 30,
|
||||||
|
2019
|
|
2018
|
||||
Raw materials
|
$
|
4,104
|
|
|
$
|
4,453
|
|
Work in process
|
6,301
|
|
|
5,168
|
|
||
Finished goods
|
1,861
|
|
|
1,746
|
|
||
Parts and supplies
|
9,277
|
|
|
9,599
|
|
||
Total inventories
|
$
|
21,543
|
|
|
$
|
20,966
|
|
|
Commercial & Industrial
|
|
Communications
|
|
Infrastructure Solutions
|
|
Residential
|
|
Total
|
||||||||||
Balance at September 30, 2017
|
$
|
7,176
|
|
|
$
|
—
|
|
|
$
|
30,886
|
|
|
$
|
8,631
|
|
|
$
|
46,693
|
|
Acquisitions (Note 19)
|
—
|
|
|
2,892
|
|
|
—
|
|
|
1,348
|
|
|
4,240
|
|
|||||
Purchase accounting adjustments
|
(200
|
)
|
|
(76
|
)
|
|
45
|
|
|
—
|
|
|
(231
|
)
|
|||||
Balance at September 30, 2018
|
6,976
|
|
|
2,816
|
|
|
30,931
|
|
|
9,979
|
|
|
50,702
|
|
|||||
Divestitures
|
—
|
|
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
(119
|
)
|
|||||
Purchase accounting adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
|||||
Balance at September 30, 2019
|
$
|
6,976
|
|
|
$
|
2,816
|
|
|
$
|
30,812
|
|
|
$
|
10,018
|
|
|
$
|
50,622
|
|
|
|
|
September 30, 2019
|
||||||||||
|
Estimated Useful Lives (in Years)
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||
Trademarks/trade names
|
5 - 20
|
|
$
|
5,084
|
|
|
$
|
(1,267
|
)
|
|
$
|
3,817
|
|
Technical library
|
20
|
|
400
|
|
|
(121
|
)
|
|
279
|
|
|||
Customer relationships
|
6 - 15
|
|
33,539
|
|
|
(11,051
|
)
|
|
22,488
|
|
|||
Non-competition arrangements
|
5
|
|
40
|
|
|
(9
|
)
|
|
31
|
|
|||
Backlog and construction contracts
|
1
|
|
599
|
|
|
(591
|
)
|
|
8
|
|
|||
Total
|
|
|
$
|
39,662
|
|
|
$
|
(13,039
|
)
|
|
$
|
26,623
|
|
|
|
|
September 30, 2018
|
||||||||||
|
Estimated Useful Lives (in Years)
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||
Trademarks/trade names
|
5 - 20
|
|
$
|
5,084
|
|
|
$
|
(831
|
)
|
|
$
|
4,253
|
|
Technical library
|
20
|
|
400
|
|
|
(101
|
)
|
|
299
|
|
|||
Customer relationships
|
6 - 15
|
|
33,539
|
|
|
(7,870
|
)
|
|
25,669
|
|
|||
Non-competition arrangements
|
5
|
|
40
|
|
|
(1
|
)
|
|
39
|
|
|||
Backlog and construction contracts
|
1
|
|
2,562
|
|
|
(2,232
|
)
|
|
330
|
|
|||
Total
|
|
|
$
|
41,625
|
|
|
$
|
(11,035
|
)
|
|
$
|
30,590
|
|
Year Ended September 30,
|
|||
2020
|
$
|
3,222
|
|
2021
|
3,249
|
|
|
2022
|
3,422
|
|
|
2023
|
2,785
|
|
|
2024
|
2,240
|
|
|
Thereafter
|
11,705
|
|
|
Total
|
$
|
26,623
|
|
•
|
Azimuth Communications, Inc. (“Azimuth”) – On April 6, 2018, the Company’s Communications segment acquired all of the outstanding capital stock of Azimuth, a Portland, Oregon-based provider of design and integration services for structured cabling, physical security, access control systems, distributed antenna systems, wireless access, and audio visual systems. The acquisition of Azimuth has accelerated our Communications segment's expansion into the Pacific Northwest market, which the Company believes to be an attractive market.
|
•
|
Electrical Contractors North, Inc. ("ECNI") – On July 31, 2018, the Company’s Residential segment acquired substantially all of the assets of ECNI, a Salt Lake City, Utah-based provider of electrical contracting for multi-family residential and hotel construction. We believe the acquisition of ECNI furthers our Residential segment’s growth strategy by providing a foothold in the Salt Lake City market.
|
Current assets
|
$
|
1,767
|
|
Property and equipment
|
590
|
|
|
Intangible assets (primarily customer relationships)
|
3,182
|
|
|
Goodwill
|
4,164
|
|
|
Current liabilities
|
(1,580
|
)
|
|
Long term liabilities
|
(14
|
)
|
|
Deferred tax liability
|
(696
|
)
|
|
Net assets acquired
|
$
|
7,413
|
|
|
Year Ended September 30, 2019
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||||
Revenues
|
$
|
243,842
|
|
|
$
|
256,914
|
|
|
$
|
282,633
|
|
|
$
|
293,607
|
|
Gross profit
|
$
|
41,601
|
|
|
$
|
43,235
|
|
|
$
|
46,397
|
|
|
$
|
50,870
|
|
Net income (loss) attributable to IES Holdings, Inc.
|
$
|
6,884
|
|
|
$
|
5,489
|
|
|
$
|
10,972
|
|
|
$
|
9,861
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.32
|
|
|
$
|
0.26
|
|
|
$
|
0.52
|
|
|
$
|
0.47
|
|
Diluted
|
$
|
0.32
|
|
|
$
|
0.26
|
|
|
$
|
0.52
|
|
|
$
|
0.46
|
|
|
Year Ended September 30, 2018
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||||
Revenues
|
$
|
198,300
|
|
|
$
|
205,677
|
|
|
$
|
232,576
|
|
|
$
|
240,275
|
|
Gross profit
|
$
|
33,064
|
|
|
$
|
33,840
|
|
|
$
|
42,537
|
|
|
$
|
40,521
|
|
Net income (loss) attributable to IES Holdings, Inc.
|
$
|
(29,569
|
)
|
|
$
|
2,221
|
|
|
$
|
8,516
|
|
|
$
|
4,675
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(1.39
|
)
|
|
$
|
0.11
|
|
|
$
|
0.40
|
|
|
$
|
0.22
|
|
Diluted
|
$
|
(1.39
|
)
|
|
$
|
0.11
|
|
|
$
|
0.40
|
|
|
$
|
0.22
|
|
Plan Category
|
|
(a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
|
(b) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
|
|
(c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
|
||||
Equity compensation plans approved by security holders
|
|
162,840
|
|
|
$
|
—
|
|
|
824,676 (1)
|
|
Equity compensation plans not approved by security holders
|
|
21,750
|
|
(2)
|
$
|
6.35
|
|
|
—
|
|
Exhibit
No. |
Description
|
2.1 —
|
|
2.2 —
|
|
2.3 —
|
|
3.1 —
|
|
3.2 —
|
|
3.3 —
|
|
4.1 —
|
|
4.2 —
|
|
4.3 —
|
|
4.4 —
|
|
10.1 —
|
|
10.2 —
|
10.3 —
|
|
10.4 —
|
|
10.5 —
|
|
10.6 —
|
|
10.7 —
|
|
10.8 —
|
|
10.9 —
|
|
10.10 —
|
|
10.11 —
|
|
10.12 —
|
|
10.13 —
|
|
10.14 —
|
10.15 —
|
|
10.16 —
|
|
10.17 —
|
|
10.18 —
|
|
10.19 —
|
|
10.20 —
|
|
10.21 —
|
|
*10.22 —
|
|
*10.23 —
|
|
*10.24 —
|
|
*10.25 —
|
|
*10.26 —
|
|
*10.27 —
|
|
*10.28 —
|
|
*10.29 —
|
|
*10.30 —
|
|
*10.31 —
|
|
*10.32 —
|
*10.33 —
|
|
*10.34 —
|
|
*10.35 —
|
|
*10.36 —
|
|
*10.37 —
|
|
*10.38 —
|
|
*10.39 —
|
|
*10.40 —
|
|
*10.41 —
|
|
*10.42 —
|
|
*10.43 —
|
|
21.1 —
|
|
23.1 —
|
|
31.1 —
|
|
31.2 —
|
|
32.1 —
|
|
32.2 —
|
|
101.INS
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (1)
|
101.SCH
|
Inline XBRL Schema Document (1)
|
101.LAB
|
Inline XBRL Label Linkbase Document (1)
|
101.PRE
|
Inline XBRL Presentation Linkbase Document (1)
|
101.DEF
|
Inline XBRL Definition Linkbase Document (1)
|
101.CAL
|
Inline XBRL Calculation Linkbase Document (1)
|
104
|
Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
|
*
|
Management contracts or compensatory plans or arrangements required to be filed herewith pursuant to Item 15(a)(3) of this Annual Report on Form 10-K.
|
(1)
|
Filed herewith.
|
(2)
|
Furnished herewith.
|
|
|
|
|
By:
|
/s/ Gary S. Matthews
|
Signature
|
|
Title
|
Date
|
|
|
|
|
/s/ Gary S. Matthews
|
|
Chief Executive Officer and Director
|
December 6, 2019
|
Gary S. Matthews
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ Tracy A. McLauchlin
|
|
Senior Vice President, Chief Financial Officer
and Treasurer
|
December 6, 2019
|
Tracy A. McLauchlin
|
|
(Principal Financial Officer)
(Principal Accounting Officer)
|
|
|
|
|
|
/s/ Todd M. Cleveland
|
|
Director
|
December 6, 2019
|
Todd M. Cleveland
|
|
|
|
|
|
|
|
/s/ Joseph L. Dowling III
|
|
Director
|
December 6, 2019
|
Joseph L. Dowling III
|
|
|
|
|
|
|
|
/s/ David B. Gendell
|
|
Director
|
December 6, 2019
|
David B. Gendell
|
|
|
|
|
|
|
|
/s/ Jeffrey L. Gendell
|
|
Director and Chairman of the Board
|
December 6, 2019
|
Jeffrey L. Gendell
|
|
|
|
|
|
|
|
/s/ Joe D. Koshkin
|
|
Director
|
December 6, 2019
|
Joe D. Koshkin
|
|
|
|
|
|
|
|
/s/ Donald L. Luke
|
|
Director
|
December 6, 2019
|
Donald L. Luke
|
|
|
|
Period
|
Annual Base Rent*
|
Monthly Installment*
|
from January 1, 2020 through and including December 31, 2020;
|
$96,862.50
|
$8,071.88
|
from January 1, 2021 through and including December 31, 2021;
|
$99,076.50
|
$8,256.38
|
from January 1, 2022 through and including the Sublease Expiration Date.
|
$101,290.50
|
$8,440.88
|
|
1/1/20-12/31/20
|
|
1/1/21-12/31/21
|
|
1/1/22-2/28/23
|
||||
Aggregate Square Footage
|
3,690
|
|
3,690
|
|
3,690
|
||||
Sublessee Share of Square Footage
|
60%
|
|
60%
|
|
60%
|
||||
Sublessee Square Footage
|
2,214
|
|
2,214
|
|
2,214
|
||||
|
|
|
|
|
|
||||
Annual Fixed Rent Payable by Sublessor before Rent Inclusion Factor
|
$
|
151,290.00
|
|
|
$ 154,980.00
|
|
$ 158,670.00
|
||
Annual Rent Inclusion Factor
|
10,147.50
|
|
|
10,147.50
|
|
|
10,147.50
|
|
|
Annual Fixed Rent Payable by Sublessor including Rent Inclusion Factor
|
$ 161,437.50
|
|
$ 165,127.50
|
|
$ 168,817.50
|
||||
Annual Fixed Rent per Square Foot Payable by Sublessor including Rent Inclusion Factor
|
$43.75
|
|
$44.75
|
|
$45.75
|
||||
|
|
|
|
|
|
||||
Sublessee’s % Share of Annual Fixed Rent Payable by Sublessor including Rent Inclusion Factor
|
60%
|
|
60%
|
|
60%
|
||||
Sublessee’s Annual Base Rent Payable under Sublease
|
$ 96,862.50
|
|
$ 99,076.50
|
|
$ 101,290.50
|
||||
Sublessee’s Annual Base Rent per Square Foot Payable under Sublease
|
$43.75
|
|
$44.75
|
|
$45.75
|
||||
|
|
|
|
|
|
||||
Monthly Fixed Rent Payable by Sublessor before Rent Inclusion Factor
|
$ 12,607.50
|
|
$ 12,915.00
|
|
$ 13,222.50
|
||||
Monthly Rent Inclusion Factor
|
845.63
|
|
|
845.63
|
|
|
845.63
|
|
|
Monthly Fixed Rent Payable by Sublessor including Rent Inclusion Factor
|
$ 13,453.13
|
|
$ 13,760.63
|
|
$ 14,068.13
|
||||
Monthly Fixed Rent per Square Foot Payable by Sublessor including Rent Inclusion Factor
|
$3.65
|
|
$3.73
|
|
$3.81
|
||||
|
|
|
|
|
|
||||
Sublessee’s % Share of Monthly Fixed Rent Payable by Sublessor including Rent Inclusion Factor
|
60%
|
|
60%
|
|
60%
|
||||
Sublessee’s Monthly Base Rent Payable under Sublease
|
$ 8,071.88
|
|
$ 8,256.38
|
|
$ 8,440.88
|
||||
Sublessee’s Monthly Base Rent per Square Foot Payable under Sublease
|
$3.65
|
|
$3.73
|
|
$3.81
|
|
|
|
Subsidiary
|
|
Jurisdiction of Incorporation
|
|
|
|
Azimuth Communications, Inc.
|
|
Oregon
|
Calumet Armature and Electric, L.L.C.
|
|
Illinois
|
Freeman Enclosure Systems, LLC
|
|
Ohio
|
HK Engine Components, LLC
|
|
Indiana
|
ICS Holdings LLC
|
|
Arizona
|
IES Commercial, Inc.
|
|
Delaware
|
IES Communications, LLC
|
|
Delaware
|
IES Consolidation, LLC
|
|
Delaware
|
IES Infrastructure Solutions, LLC
|
|
Delaware
|
IES Management, LP
|
|
Texas
|
IES Management ROO, LP
|
|
Texas
|
IES Operations Group, Inc.
|
|
Delaware
|
IES Residential, Inc.
|
|
Delaware
|
IES Shared Services, Inc.
|
|
Delaware
|
IES Subsidiary Holdings, Inc.
|
|
Delaware
|
Integrated Electrical Finance, Inc.
|
|
Delaware
|
Key Electrical Supply, Inc.
|
|
Texas
|
Magnetech Industrial Services, Inc.
|
|
Indiana
|
NEXT Electric, LLC
|
|
Wisconsin
|
Southern Industrial Sales and Services, Inc.
|
|
Georgia
|
STR Mechanical, LLC
|
|
North Carolina
|
Technibus, Inc.
|
|
Delaware
|
Technical Services II, LLC
|
|
Virginia
|
Thomas Popp & Company
|
|
Ohio
|
(1)
|
Registration Statement on Form S-8 (No. 333-209483) pertaining to the Amended and Restated 2006 Equity Incentive Plan of IES Holdings, Inc.;
|
(2)
|
Registration Statement on Form S-8 (No. 333-134100) pertaining to the 2006 Equity Incentive Plan of IES Holdings, Inc.;
|
(3)
|
Registration Statement on Form S-3 (No. 333-186786) pertaining to the registration for resale of common stock of IES Holdings, Inc. by the selling stockholders named therein; and
|
(4)
|
Registration Statement on Form S-3 (No. 333-215071) pertaining to the registration for resale of common stock of IES Holdings, Inc. by the selling stockholders named therein;
|
|
|
|
|
|
|
|
|
||
|
/s/ GARY S. MATTHEWS
|
|
||
|
Gary S. Matthews
|
|
||
|
Chief Executive Officer
as Principal Executive Officer
|
|
|
|
|
|
|
|
|
|
||
|
/s/ TRACY A. MCLAUCHLIN
|
|
||
|
Tracy A. McLauchlin
|
|
||
|
Senior Vice President, Chief Financial Officer and Treasurer
as Principal Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
December 6, 2019
|
By:
|
/s/ GARY S. MATTHEWS
|
|
|
|
Gary S. Matthews
|
|
|
|
Chief Executive Officer
as Principal Executive Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
December 6, 2019
|
By:
|
/s/ TRACY A. MCLAUCHLIN
|
|
|
|
|
Tracy A. McLauchlin
|
|
|
|
|
Senior Vice President, Chief Financial Officer and Treasurer
as Principal Financial Officer
|