Slide 1: Integrated Electrical Services, Inc. 4th Quarter Results
Integrated Electrical Services, Inc. 4th Quarter Results December 15, 2009 Michael J. Caliel, President & CEO Randy Guba, EVP, CFO Ken Dennard, DRG&E TES we zone progress
Slide 2: Safe Harbor
IES. 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 274 of the ‘Securities Act of 1933 and Section 21E o
Slide 3: Transformation Program Summary
IES. Transformation Prog! Summary FY 2008 - completed reorganization into line of business approach; eliminated $20MM in costs FY 2009 - launched new program to further consolidate operations, reduce costs and invest in sales resources 4Q FY 2009 - expanded restructuring program; reduced SG&A expens
Slide 4: IES highlights
IES Lower consolidated FY 2009 revenues - improved gross margin 4Q FY 2009 results softer than expected Measurable progress on cost reduction program Expanding portfolio of offerings - focus on renewable energy, e.g. solar and wind Sales and business development efforts gaining momentum — increases
Slide 5: Revenue & Gross Profit
IES. venue & Gross Profit (dollars in milions) Quarter Comparison 212 Revenue yg 34 20 cP 409 Q4'08 GM% 13.1% 16.1% YTD Comparison 818 Revenue —— 132 110 GP FY09 FY08 GM% 16.4% 16.1% Quarterly Highlights Projects reduced, delayed, and cancelled in Commercial Significantly lower demand and reduced co
Slide 6: Selling, General & Administrative Expenses
IES. (doliars in millions) les, General & Administrative Expenses pari: "4 is sare: Lompauses Quarterly Highlights 33 25 a + SG&A down from reductions in headquarters, operations, and facility consolidation « Ongoing investments in sales and Q4'09 Q4'08 business development Rev% 16.4% 15.8% YTD Comp
Slide 7: Profitability
IES. Profitability Highlights (dollars in mitions) Operating Income Operating Income + Q4 loss / income includes restructuring and significant charges of $6.8MM for 2009 and $0.8MM for 2008 « Full year loss / income includes restructuring and significant charges of $11.4MM for 2009 and $4.5MM for 20
Slide 8: Commercial Segment
IES. (doliars in mitiions) Quarter Comparison Quarterly Highlights Revenue 88, « Delayed and canceled project GP Pd starts, reduced construction activity «Increased competition a4 09 a4 '08 GM% 9.5% 13.8% «Total year gross margin - improvement due to improved YD Comparison project execution Revenue
Slide 9: Industrial Segment
IES. strial Segme: (dollars in milions) Quarter Comparison 31 Revenue ee 5 GP 2 a | 4 '09 4 '08 GM% 97% 16.0% YTD Comparison 130 Revenue gg 2 12 Quarterly Highlights + Lower volume and reduced construction activity + Gross margin — Change in project mix with less higher margin time and material work
Slide 10: Residential Segment
IES. esidential Segme: (dollars in milions) Quarter Comparison 09 08 GM% 23.3% 21.1% YTD Comparison 215 43 YTD '09 YTD ‘08 GM% 23.4% 19.9% Quarterly Highlights « Weak demand for single and multi family housing + Gross margin — Improved multi-family execution — Material costs stabilization — Effectiv
Slide 11: Backlog
IES. (doliars in mitiions) 337 289 241 Q4'08 Q3'09 Q4'09 Backlog Highlights Commercial and Residential segments decline — Market pressures — Project deferrals — Project selectivity 7% Improvement in Industrial segment from Q4 ‘08 uw
Slide 12: Cash & Liquidity
IES. Cash & Liquidity (dollars in millions) Highlights + Continue to maximize liquidity Liquidity 2! Ne Cash 95 a 61 Q4'08 Q3'09 Q4'09 12
Slide 13: Summary
EF srmay “+ Measurable progress in transforming IES despite challenging market environment “+ Continue to tightly manage costs — targeting $85 to $90 million level in FY 2010 “+ Investments in business development and sales resources * Poised to capitalize on growing renewable energy markets “+ Indu