Ies Holdings, Inc. · NASDAQ:IESC
Ies — Investor Presentation (January 2019)
34 slides from Ies's investor presentation, Jan 8, 2019
Slide 1: IES Holdings, Inc. Investor Presentation
IES Holdings, Inc. Investor Presentation January 8, 2019 Exhibit 99.1
Slide 2: Disclosures: Forward-Looking Statements
Disclosures Forward-Looking Statements Certain statements in this document may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, all of which are based upon various estimates and assumptions
Slide 3: IES Holdings, Inc. at a glance
IES Holdings, Inc. (NASDAQ: IESC) Revenue: $877 million Operating Income: $26 million Cash: $26 million NOLs**: $355 million Headquarters: Houston, TX * Liquidity is defined as cash and cash equivalents plus availability under revolving credit facility ** The Company estimates that it has available
Slide 4: We Provide Power and Connectivity to Diverse End Markets
We Provide Power and Connectivity to Diverse End Markets Segments: Infrastructure Solutions Commercial & Industrial Capabilities: Electrical & Mechanical Apparatus Services Custom Power Solutions Electrical Contracting Segments: Communications Infrastructure Solutions Segment: Residential Capabiliti
Slide 5: Outpacing Industry Growth and Increasing Market Share
16% Data Center 7% Nonresidential Construction 5% Housing 3% Heavy Industrial Outpacing Industry Growth and Increasing Market Share Selected Industry Growth Drivers in FY18… ….Resulting in Backlog Increase Sources: Cisco Global Cloud Index: Global Hyperscale Data Centers; U.S. Census; Federal Reserv
Slide 6: Opportunity to Further Improve Operating Margins
Opportunity to Further Improve Operating Margins Expected Future Improvement Driven By: Leveraging of fixed public company expenses Improved operating efficiency Accretive investments Consolidated Operating Margins
Slide 7: Business segments
Business segments
Slide 8: Our Business Segments
Our Business Segments Electrical & Mechanical Contracting and Services Technology & Data Center Infrastructure Services Electrical & Mechanical Apparatus Services and Custom Power Solutions Electrical Installation for Residential Construction Commercial & Industrial Communications Infrastructure Sol
Slide 9: Communications Segment
Best-in-class customer base, including many Fortune 100 companies Reputation and quality National scale supported by branch model Financial resources to keep pace with rapidly growing and evolving markets Communications Segment Nationwide Provider of Technology Infrastructure Services, including Str
Slide 10: Data Center Demand Remains Robust
Data Center Demand Remains Robust HYPER-SCALE DATA CENTER EXPECTED GROWTH (NORTH AMERICA) Source: Cisco Global Cloud Index
Slide 11: Residential Segment
Located in many of the largest population markets Strong customer relationships and track record of execution Variable cost structure allows flexibility in changing market conditions Ability to expand organically with minimal capital investment Residential Segment Electrical Installation for Residen
Slide 12: Residential Supported By Long-Term Housing Fundamentals
Residential Supported By Long-Term Housing Fundamentals 1990 – 2007 Average = 1.5M Annually Estimated Annual Housing Demand Source: U.S. Census, National Association of Home Builders (NAHB); Company Estimates NEW HOUSING STARTS
Slide 13: Infrastructure Solutions Segment
Strategic service center locations with a consistent track record of execution Custom fabrication engineering and manufacturing capabilities to meet our customers’ high standards Financial resources necessary to support backlog expansion Added backlog with custom power solutions acquisitions Infrast
Slide 14: Infrastructure Solutions Driven by Industrial Production & Heavy Industrial Spending
Infrastructure Solutions Driven by Industrial Production & Heavy Industrial Spending INDUSTRIAL PRODUCTION POWER AND MANUFACTURING CONSTRUCTION SPENDING Source: Federal Reserve Economic Data, U.S. Census; Company Estimates
Slide 15: Commercial & Industrial Segment
Regional market leadership National safety and quality programs Structure and scale compared to local/regional competition Strong financial resources, including bonding capacity Commercial & Industrial Segment Provider of Electrical and Mechanical (HVAC) Design, Construction and Maintenance Services
Slide 16: Expect Moderate Commercial Construction Growth
Expect Moderate Commercial Construction Growth NONRESIDENTIAL CONSTRUCTION (Value in millions) Source: ConstructConnect, Inc.; Federal Reserve Economic Data, U.S. Census
Slide 17: Initiatives to Improve Commercial & Industrial Operating Margins
Initiatives to Improve Commercial & Industrial Operating Margins Expected Future Improvement Driven By: Added regional operations leaders to provide additional supervision and support Improved use of technology and data analytics Additional training and supervision in the field Backlog increase resu
Slide 18: Capital allocation
Capital allocation
Slide 19: Capital Allocation Strategy
Capital Allocation Strategy Maintain a Conservative Balance Sheet Redeploy Free Cash Flow Generated By Our Diverse Businesses Into Both Existing Operations And Accretive Investments Reinvestment Acquisitions Debt Share Repurchase Disciplined Acquisition Strategy Support Our Growing Operations with W
Slide 20: Our Disciplined Deployment of Capital
Our Disciplined Deployment of Capital * Cash Earnings = Cash from Operations before Changes in Net Working Capital ** Calculated as NOLs utilized multiplied by the statutory federal tax rate during the year of utilization FY2015 – 2018 Sources & Investments of Cash
Slide 21: Benefit of $355M of NOLs as of September 30, 2018
Benefit of $355M of NOLs as of September 30, 2018 NOL Expiration Schedule** * Assumes tax rate of 21% and includes approximately $28M million associated with amortization of personal goodwill ** Assumes no change, limitation or usage of existing NOLs prior to expiration dates Estimated net operating
Slide 22: Key takeaways
Key takeaways
Slide 23: Key IES Takeaways
Key IES Takeaways Structure and scale compared to local/regional competition Superior Businesses Unique combination of residential, data center, industrial and commercial tailwinds Attractive & Diverse End Markets Since 2015 we have deployed over $90 million to complete and integrate 10 acquisitions
Slide 24: Performance
performance
Slide 25: Revenue Growth
Revenue Growth REVENUE ($ in millions and reported for fiscal year)
Slide 26: Improved Profitability
Improved Profitability OPERATING INCOME ($ in millions and reported for fiscal year) Includes Impact from Wind-Downs* ($2) ($8) ($3) * Results from the Denver and Roanoke branches of our Commercial & Industrial segment. In July, 2017, we implemented a plan to wind-down operations at these branches
Slide 27: Earnings Growth
Earnings Growth EARNINGS PER SHARE (As Reported)* ADJUSTED EARNINGS PER SHARE* (per share and reported for fiscal year) (per share and reported for fiscal year) * Represents diluted earnings per share from continuing operations Note: Adjusted Earnings Per Share is a non-GAAP financial measure; see n
Slide 28: Appendix
appendix
Slide 29: Consolidated Income Statement
Consolidated Income Statement
Slide 30: Select Consolidated Balance Sheet Data
Select Consolidated Balance Sheet Data
Slide 31: Non-GAAP Reconciliation of Adjusted Net Income Attributable To IES Holdings, Inc.
Non-GAAP Reconciliation of Adjusted Net Income Attributable To IES Holdings, Inc.
Slide 32: Non-GAAP Reconciliation of Commercial & Industrial Adjusted Income from Operations
Non-GAAP Reconciliation of Commercial & Industrial Adjusted Income from Operations COMMERCIAL & INDUSTRIAL SEGMENT
Slide 33: Overview of Recent Acquisitions
Overview of Recent Acquisitions Company Closed Date Business Description Acquisition Fit IES Segment Electrical Contractors North, Inc. July 2018 Residential electrical contracting (Salt Lake City, UT) Strong manager New geography Residential Azimuth Communications April 2018 Structured cabling (Por
Slide 34: Overview of Recent Acquisitions (continued)
Overview of Recent Acquisitions (continued) Company Closed Date Business Description Acquisition Fit IES Segment Technibus, Inc. June 2016 Manufactures Isolated Phase, Non-Segregated, and Segregated Bus Duct (Canton, OH) Expand Infrastructure Solutions business into power industry and field services