Slide 1: Integrated Electrical Services, Inc. 2nd Quarter Results
Integrated Electrical Services, Inc. 2nd Quarter Results May 18, 2009 Michael J. Caliel, President & CEO Randy Guba, EVP, CFO Karen Roan, DRG&E
Slide 2: Safe Harbor
2 Safe Harbor Certain statements in this presentation, 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
Slide 3: Headlines
3 Headlines Revenues $167 million vs. $196 million in Q2 '08 Backlog $297 million vs. $337 million in Q2 '08 Right-sizing the business FY08: Completed operational restructuring program Reduce cost structure by nearly $20MM Reposition business to better serve customers and prepare for growth Strategi
Slide 4: Q2 2009 Highlights
4 Q2 2009 Highlights Adjusted net income of $0.2 million from continuing operations Gross margin increased to 17.8% from 15.8% in Q2 '08 SG&A decreased by approximately 13% vs. Q2 '08 (excluding one time charges) Backlog $297 million vs. $337 million in Q2 '08 Substantial improvements in Industrial
Slide 5: Revenue & Gross Profit
5 YTD '09 YTD '08 GP 59 64 Revenue 341 393 Revenue & Gross Profit (dollars in millions) Quarterly Highlights Commercial revenue increase from go-to- market strategy and sales team Industrial revenue decline from canceled or delayed projects Residential revenue decline from ongoing slowdown in both s
Slide 6: Sales, General & Administrative Expenses
6 Sales, General & Administrative Expenses* (dollars in millions) Quarterly Highlights SG&A reduced by approximately 13% SG&A at 16.0% of revenue, up from 15.6% in Q2 '08, due to lower revenue Reductions from operations restructuring and facility consolidation Q2 '09 Q2 '08 SG&A 27 30.6 Rev% 16.0% 1
Slide 7: Profitability
7 YTD '09 YTD '08 East -1.3 -0.7 Q2 '09 Q2 '08 East -1.2 0.2 Q2 '09 Q2 '08 GM 0.2 1.1 Profitability (dollars in millions) * Adjusted: Excluding restructuring and one-time charges Q2 '09 Q2 '08 GM 1 3.4 Adjusted Operating Income* Net Income & EPS Q2 '09 Q2 '08 GM 3.4 6.7 Adjusted EBITDA* Adjusted Net
Slide 8: Commercial Segment
8 Commercial Segment (dollars in millions) Quarter Comparison Q2 '09 Q2 '08 GP 19 16 Revenue 115 112 Revenue GP GM% 16.6% 14.3% YTD Comparison YTD '09 YTD '08 GP 35 32 Revenue 217 221 Revenue GP GM% 16.1% 14.6% Quarterly Highlights Revenue increased 3% Improvement in gross margin due to: Improved pr
Slide 9: Industrial Segment
9 Industrial Segment (dollars in millions) Quarter Comparison Revenue GP GM% 16.6% 14.3% YTD Comparison Revenue GP GM% 14.4% 15.2% Quarterly Highlights Revenue decreased 46% from project deferrals and cancellations Improvement in gross margin due to: Improved project execution Stabilization of mater
Slide 10: Residential Segment
10 Residential Segment (dollars in millions) Quarter Comparison Q2 '09 Q2 '08 GP 8 10 Revenue 34 50 Revenue GP GM% 22.8% 20.0% YTD Comparison YTD '09 YTD '08 GP 18 21 Revenue 79 106 Revenue GP GM% 22.7% 19.9% Quarterly Highlights Revenue decreased 33% from industry decline Improvement in gross margi
Slide 11: Backlog
11 Backlog 2Q '09 4Q '08 2Q '08 Backlog 297 337 382 Highlights Substantial improvement in Industrial segment Commercial and Residential segments decline due primarily to market pressures, project deferrals, and ongoing project selectivity (dollars in millions)
Slide 12: Cash & Liquidity
12 Cash & Liquidity Q2 '09 Q1 '09 Q2 '08 Cash 52 49 32 Highlights Total liquidity approximately $55 million Liquidity increased to approximately $65 million after the close of the quarter $10MM recovered from letters of credit (dollars in millions) Cash
Slide 13: Summary
13 Summary Continue to drive cost reductions to address the current market environment New restructuring program to further reduce costs and consolidate operations Strategic investments in sales resources, productivity enhancement tools, processes, and systems Right strategy in place Cost reduction