Slide 1: 1st Quarter Results
Integrated Electrical Services, Inc. 1st Quarter Results February 10, 2009 Michael J. Caliel, President & CEO Randy Guba, EVP, CFO Steve Gray, DRG&E
Slide 2: Safe Harbor
Safe Harbor Certain statements in this release, including statements regarding the restructuring plan and total estimated charges and cost reductions associated with this plan, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Sec
Slide 3: Headlines
Headlines Revenues $173 million vs. $197 million in Q1 '08 Backlog $319 million vs. $348 million in Q1 '08 Operational restructuring program completed in FY '08 Repositioned business to serve customers and prepare for growth Reduced cost base nearly $20MM Investment in sales personnel, tools and pro
Slide 4: Q1 2009 Highlights
Q1 2009 Highlights Adjusted EPS of $0.01 per diluted share Gross margin increased to 17.1% from 16.8% in Q1 '08 SG&A reduced by more than 5% vs. Q1 '08 Increase to 16.6% vs. 15.4% of revenue due to 12% volume decline. Backlog $319 million vs. $348 million in Q1 '08 Shift in go to market strategy adv
Slide 5: Revenue & Gross Profit
Revenue & Gross Profit (dollars in millions) Highlights Commercial revenue decline due to reduced, delayed or canceled projects and increased competition from residential contractors. Industrial revenue decline due to canceled or delayed projects and extended customer shutdowns Residential revenue d
Slide 6: Sales, General & Administrative Expenses
Sales, General & Administrative Expenses (dollars in millions) Highlights SG&A reduced more than 5% SG&A at 16.6% of revenue, up from 15.4% in Q1 '08 due to lower revenue Continuing to drive additional cost reductions in response to lower first quarter volume and expected market weakness Q1 '09 Q1 '
Slide 7: Profitability
Profitability (dollars in millions) * Adjusted: Prior to restructuring and one-time charges Q1 '09 Q1 '08 GM 1 2.6 Adjusted Operating Income* Q1 '09 Q1 '08 GM -0.07 -0.9 Net Income & EPS (0.01) (.06) Q1 '09 Q1 '08 GM 3.3 6.4 Adjusted EBITDA* Q1 '09 Q1 '08 GM 0.2 1.3 Adjusted Net Income & EPS * EPS (
Slide 8: Commercial Segment
Commercial Segment (dollars in millions) Highlights Revenue decreased 7% Gross margin improvements driven by: Improved project execution Ability to adjust labor to meet project demands Lower input costs (i.e. copper, steel and fuel) Quarter Comparison Q1 '09 Q1 '08 GP 16 16 Revenue 102 110 Revenue G
Slide 9: Industrial Segment
Industrial Segment (dollars in millions) Highlights Revenue decreased 19% Decline in gross margin due to lower volume and mix of projects with lower risk and lower margins Prior year gross margin reflected close out of well-executed projects. Quarter Comparison Q1 '09 Q1 '08 GP 4 6 Revenue 26 32 Rev
Slide 10: Residential Segment
Residential Segment (dollars in millions) Highlights Revenue decreased 18% Gross margin improvement driven by: Improved project execution in multi- family Ability to adjust labor to meet project demands Stabilization of material costs Quarter Comparison Q1 '09 Q1 '08 GP 10 11 Revenue 45 55 Revenue G
Slide 11: Backlog
Backlog 1Q '08 4Q '08 1Q '09 Backlog 348 337 319 Highlights Backlog decreased 5% from Q4 '08 Overall quality of backlog improved year over year reflecting ongoing selectivity (dollars in millions)
Slide 12: Cash
Cash 1Q '08 4Q '08 1Q '09 Cash 36 65 49 Highlights Approximately $6 million available under revolving credit facility Total liquidity approximately $55 million (dollars in millions)
Slide 13: Summary
Summary Continuing to drive cost reductions Reduced costs by approximately $20 million in FY '08 New restructuring program to further reduce costs and consolidate operations Shifted go to market strategy and established a new sales approach More structured method based on targeted markets and nation