 - Revenue of 293 million, an increase of 4 year-over-year - Operating income of 14 million, an increase of 37 year-over-year - Net Income Per Share of 0.58 and Adjusted Net Income Per Share of 0.61 HOUSTON, Aug. 07, 2020 GLOBE NEWSWIRE -- IES Holdings, Inc. or IES or the Company NASDAQ: IESC today announced financial results for the quarter ended June 30, 2020. Third Quarter 2020 Highlights Revenue of 293 million for the third quarter of fiscal 2020, an increase of 4 compared with 283 million for the same quarter of fiscal 2019 Operating income of 14.1 million for the third quarter of fiscal 2020, an increase of 37 compared with 10.2 million for the same quarter of fiscal 2019 Net income attributable to IES of 12.3 million, or 0.58 per diluted share, for the third quarter of fiscal 2020, compared with 11.0 million, or 0.52 per diluted share, for the same quarter of fiscal 2019 Adjusted net income attributable to IES a non-GAAP financial measure, as defined below increased 38 to 12.8 million, or 0.61 per diluted share, for the third quarter of fiscal 2020, compared with 9.3 million, or 0.44 per diluted share, for the same quarter of fiscal 2019 Remaining performance obligations, a GAAP measure of future revenue to be recognized from current contracts with customers, of approximately 523 million as of June 30, 2020 Backlog a non-GAAP financial measure, as defined below of approximately 597 million as of June 30, 2020Nine Months 2020 Highlights Revenue of 860 million for the first nine months of fiscal 2020, an increase of 10 compared with 783 million for the same period of fiscal 2019 Operating income of 35.7 million for the first nine months of fiscal 2020, an increase of 28 compared with 27.9 million for the same period of fiscal 2019 Net income attributable to IES of 27.0 million, or 1.26 per diluted share, for the first nine months of fiscal 2020, compared with 23.3 million, or 1.09 per diluted share, for the same period of fiscal 2019 Adjusted net income attributable to IES increased 24 to 32.1 million, or 1.52 per diluted share, for the first nine months of fiscal 2020, compared with 25.9 million, or 1.21 per diluted share, for the same period of fiscal 2019Management Commentary First and foremost, I am proud of the perseverance and determination that our team has displayed since the emergence of COVID-19, said Jeffrey Gendell, Chairman and Interim Chief Executive Officer. Our strong culture manifested itself in how the entire IES family rallied around each other, our customers and our communities by supporting critical infrastructure, ranging from data centers to housing, all while adhering to rigorous health and safety guidelines and regulations. The Company performed well during the third quarter, with consolidated revenue and operating income increasing 4 and 37, respectively, over the same quarter last year. While revenue growth was constrained by COVID-19, which delayed several construction and maintenance projects, the majority of our end markets proved to be resilient and our segments have done a great job of managing staffing levels. Our Residential, Communications and Infrastructure Solutions segments all had meaningful operating margin improvement compared with both the same quarter last year and the second quarter of this fiscal year as we benefited from increased operating leverage. In particular, our Residential segments revenue grew 34 compared to the same quarter last year as demand for our single-family and multi-family lines of business continues to be strong. Additionally, our Communications and Infrastructure Solutions segments had solid quarters, benefiting from their strategic exposure to data center customers and projects. I am also pleased to report that our two most recent acquisitions, Aerial Lighting Electric and Plant Power Control Systems, are off to strong starts and am thrilled to have both teams join the IES family. We continue to work on profitability improvements in our Commercial Industrial segment. We are actively executing an improvement plan that is focused on cost reductions in purchased materials and overhead, improved project oversight and tracking, and enhanced sales strategies. During the third quarter, Commercial Industrial was negatively impacted by disruptions caused by COVID-19, ongoing project execution difficulties on certain projects, a charge related to a commercial dispute, and costs incurred in connection with changes to our organization structure. Looking ahead, we expect to continue to experience some COVID-related project delays and a competitive market, but we are optimistic about the long-term outlook for this segment. Tracy McLauchlin, Chief Financial Officer, added, We ended the third quarter with 36 million of cash after repaying in full outstanding borrowings on our revolving credit facility, reflecting our strong results and cash flow generation in the quarter, despite the uncertainties related to COVID-19. With our backlog of 597 million, an increase of 51 million from a year ago, strong liquidity position, and disciplined capital allocation philosophy, we believe that we are well-positioned to execute on our long-term growth strategy, while helping to position the Company to manage through times of economic uncertainty.Net Operating Loss Carryforwards The Company estimates that it has available Net Operating Loss Carryforwards NOLs for U.S. federal income tax purposes of approximately 306 million at September 30, 2019, including approximately 144 million resulting from net operating losses on which a deferred tax asset is not recorded. The Companys common stock is subject to a Rights Plan dated November 8, 2016, which is intended to assist in limiting the number of 5 or more owners of the Companys common stock and thereby reduce the risk of a possible ownership change under Section 382 of the Internal Revenue Code of 1986, as amended. Any such ownership change 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 guarantee that the Rights Plan will achieve the objective of preserving the value or realization of the NOLs.Stock Buyback Plan In 2015, the Companys Board of Directors authorized and announced a stock repurchase program for purchasing up to 1.5 million shares of our common stock from time to time, and on May 2, 2019, authorized the repurchase of up to an additional 1.0 million shares. During the quarter ended June 30, 2020, the Company repurchased 26,711 shares at an average price of 20.29 per share, and for year-to-date fiscal 2020, the Company repurchased 224,959 shares at an average price of 22.32 per share. The Company had 1,032,026 shares remaining under its stock repurchase authorization at June 30, 2020.Non-GAAP Financial Measures and Other Adjustments This press release includes adjusted net income attributable to IES, adjusted earnings per share attributable to IES, and backlog, and, in the non-GAAP reconciliation tables included herein, 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 IES, adjusted earnings per share attributable to IES, adjusted EBITDA and adjusted net income before taxes, distinguishing certain nonrecurring events such as litigation settlements or significant expenses associated with leadership changes, or noncash events, such as our valuation allowances release and write-down of our deferred tax assets, or, in the case of backlog, providing a common measurement used in IESs 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 IESs 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. IESs remaining performance obligations are a component of IESs 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. IESs methodology for determining backlog may not be comparable to the methodologies used by other companies. For further details on the Companys financial results, please refer to the Companys quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2020, to be filed with the Securities and Exchange Commission SEC by August 7, 2020, and any amendments thereto.About IES Holdings, Inc. 