Ies Holdings, Inc. · NASDAQ:IESC
Ies — Investor Presentation (January 2020)
29 slides from Ies's investor presentation, Jan 7, 2020
Slide 1: IES Holdings, Inc. Investor Presentation
IES Holdings, Inc. (NASDAQ: IESC) Investor Presentation January 7, 2020 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: Company overview
Company overview
Slide 4: IES Holdings, Inc. Overview
IES Holdings, Inc. Overview $1.1 billion revenue provider of electrical / communications contracting and other infrastructure services National and local market scale advantage Growth company with a track record of organic growth and accretive acquisitions 17% Revenue CAGR since 2015 23% Operating I
Slide 5: Balanced and Diverse Operations with National Footprint
Balanced and Diverse Operations with National Footprint FY2019 REVENUE ($1.1 billion) 79 Locations ~5,500 Employees
Slide 6: Track Record of Organic Growth and Accretive Acquisitions
Track Record of Organic Growth and Accretive Acquisitions CAGR: 17% Completed Acquisitions REVENUE ($ in millions)
Slide 7: Strong Backlog Growth
Strong Backlog Growth Remaining Performance Obligations: $452 n/a n/a $326 BACKLOG AT FISCAL YEAR END ($ in millions) CAGR: 19% n/a
Slide 8: Significantly Improved Profitability
Significantly Improved Profitability OPERATING INCOME ($ in millions) CAGR: 23%
Slide 9: Continued Earnings Growth
Continued Earnings Growth * Non-GAAP financial measure; see reconciliation table EARNINGS PER SHARE ADJUSTED EPS * *2016 includes a tax benefit of $109 million attributable to the release of our valuation allowance on certain of our net operating loss carryforwards and other deferred tax assets **20
Slide 10: Generated $110 Million in Cash From Operations Over the Past 5 Years
Generated $110 Million in Cash From Operations Over the Past 5 Years CASH FROM OPERATIONS ($ in millions)
Slide 11: Value Creation Strategy
Value Creation Strategy Return Capital to Shareholders Repurchased 1.2 million shares since 2015 for $15.9 million pursuant to our stock repurchase program 1.3 million shares remaining to be repurchased under current authorization Pursue Accretive Acquisitions Bolt-on acquisitions to expand geograph
Slide 12: Business segments
Business segments
Slide 13: Communications Segment
Nationwide provider of network technology services, including structured cabling and audio/visual services Best-in-class customer base, including many Fortune 100 companies National scale supported by branch model Financial resources to keep pace with rapidly growing markets Communications Segment U
Slide 14: Residential Segment
Residential Segment END MARKETS IN FISCAL 2019 REVENUE ($ in millions) Electrical installation for single-family and multi-family residential construction as well as cable TV installation services Located in many of the largest and fastest growing population markets Strong customer relationships and
Slide 15: Residential Supported By Long-Term Housing Fundamentals
Residential Supported By Long-Term Housing Fundamentals Source: U.S. Census, National Association of Home Builders (NAHB); Company Estimates NEW HOUSING STARTS
Slide 16: Infrastructure Solutions Segment
Infrastructure Solutions Segment END MARKETS IN FISCAL 2019 REVENUE ($ in millions) Provider of electrical and mechanical apparatus services and custom power solutions, including generator enclosures and bus duct Strategic service center locations with best-in-class execution Custom fabrication, eng
Slide 17: Infrastructure Solutions Products and Services
Infrastructure Solutions Products and Services Custom Power Solutions Industrial Services Motor repair & rewinding Manufacture and rebuild of traction motors & armatures Enclosures for custom diesel and gas generators Switchgear housings Custom sub-base and freestanding fuel supply tanks Metal enclo
Slide 18: Commercial & Industrial Segment
Commercial & Industrial Segment U.S. NONRESIDENTIAL CONSTRUCTION PUT IN PLACE REVENUE ($ in millions) ($ in billions) Source: FMI North American Engineering and Construction Outlook Third Quarter 2019 Report Provider of electrical and mechanical (HVAC) design, construction and maintenance services R
Slide 19: Capital allocation
Capital allocation
Slide 20: Capital Allocation Strategy
Capital Allocation Strategy Our capital allocation strategy focuses on deploying the free cash flow generated by our diverse businesses into existing operations, accretive investments and returning capital to shareholders, while maintaining a conservative balance sheet * Cash Earnings = Cash from Op
Slide 21: Acquisition History
Acquisition History Company Acquired Segment Description Location Guiscor) 2013 — InfrastructureSolutions — Motor repair and services @ 2015 Infrastructure Solutions — Motor repair and services Columbus, GA CALUMET, 2015, Manufacturer of repair services Riverdale, IL ARMATURE ELECTRIC 2015 al & Indu
Slide 22: Conservative Balance Sheet
Conservative Balance Sheet Strong balance sheet: Creates competitive advantage versus smaller, undercapitalized competitors Provides flexibility to execute on acquisitions and other capital allocation opportunities Unused availability of $94 million under credit facility at September 30, 2019
Slide 23: Benefit of $306 Million of NOLs as of September 30, 2019
Benefit of $306 Million of NOLs as of September 30, 2019 NOL Expiration Schedule** * Assumes tax rate of 21% and includes approximately $30 million associated with NOLs on which a deferred tax asset is not recorded ** Assumes no change, limitation or usage of existing NOLs prior to expiration dates
Slide 24: Key takeaways
Key takeaways
Slide 25: IESC Key Takeaways
IESC Key Takeaways Growth company in attractive end markets 1 Experienced operating team with deep customer relationships 2 Strong balance sheet and high free cash flow generation 3 Disciplined capital allocators Proven acquisition track record History of share buybacks 4 Focused value creation stra
Slide 26: Appendix
appendix
Slide 27: Consolidated Income Statement
Consolidated Income Statement
Slide 28: 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 29: Summary Balance Sheet
Summary Balance Sheet (in millions) Current Assets Deferred Tax Assets Non-Current Assets Total Assets Current Liabilities Other Liabilities Total Liabilities Noncontrolling Interest Equity Total Liabilities & Equity Fiscal Year Ending September 30, 2016 $33.2 176.5 $394.3