Integrated Electronics (NYSE:IES)
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Integrated Electrical Services Announces Sale of Two Business
Units
HOUSTON, May 5 /PRNewswire-FirstCall/ -- Integrated Electrical Services, Inc.
(NYSE:IES) today announced that it has completed the sale of substantially all
of the assets of two of its commercial and industrial business units based in
Idaho and North Carolina for a combined sales price of approximately $3.2
million in cash. These units had combined revenues of $13.3 million and
operating income of $0.6 million for the previous twelve months. The majority
of the net proceeds from this sale will be used to retire IES' senior secured
indebtedness.
Roddy Allen, IES' CEO, said, "Though these companies were not a part of the
original Planned Divestiture list, our ongoing evaluation of business units
identified them as possible sale targets due to their relatively high
dependence on surety bonds. When potential buyers were located, it became
economically attractive to divest these units."
On a cumulative basis since November 29, 2004, IES has completed ten sales for
approximately $28.5 million in cash. During fiscal 2004, these ten units
produced combined revenues of $140.1 million and operating income of $4.2
million. In addition, the company has received $1.2 million from final cash
true-ups of certain previous sales, for total cash proceeds to date of $29.7
million from the sales.
Integrated Electrical Services, Inc. is a national provider of electrical
solutions to the commercial and industrial, residential and service markets.
The company offers electrical system design and installation, contract
maintenance and service to large and small customers, including general
contractors, developers and corporations of all sizes.
This Press Release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on the Company's
expectations and involve risks and uncertainties that could cause the Company's
actual results to differ materially from those set forth in the statements.
Such risks and uncertainties include, but are not limited to, the inherent
uncertainties relating to estimating future operating results or our ability to
generate sales, income, or cash flow, potential difficulty in addressing
material weaknesses in the Company's accounting systems that have been
identified to the Company by its independent auditors, potential limitations on
our ability to access the credit line under our credit facility, litigation
risks and uncertainties, fluctuations in operating results because of downturns
in levels of construction, incorrect estimates used in entering into and
executing contracts, difficulty in managing the operation of existing entities,
the high level of competition in the construction industry, changes in interest
rates, the general level of the economy, increases in the level of competition
from other major electrical contractors, increases in costs of labor, steel,
copper and gasoline, limitations on the availability and the increased costs of
surety bonds required for certain projects, inability to reach agreement with a
surety company or a co-surety to provide sufficient bonding capacity, risk
associated with failure to provide surety bonds on jobs where we have commenced
work or are otherwise contractually obligated to provide surety bonds, loss of
key personnel, inability to reach agreement for planned sales of assets,
business disruption and transaction costs attributable to the sale of business
units, costs associated with the closing of business units, unexpected
liabilities associated with warranties or other liabilities attributable to the
retention of the legal structure of business units where we have sold
substantially all of the assets of the business unit, inability to fulfill the
terms of the required payments under the credit facility, disruption of
business or costs resulting from an SEC investigation, difficulty in
integrating new types of work into existing subsidiaries, errors in estimating
revenues and percentage of completion on contracts, and weather and
seasonality. The foregoing and other factors are discussed and should be
reviewed in the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year ended September
30, 2004.
Contacts: David A. Miller, CFO
Integrated Electrical Services, Inc.
713-860-1500
Ken Dennard /
Karen Roan /
DRG&E / 713-529-6600
DATASOURCE: Integrated Electrical Services, Inc.
CONTACT: David A. Miller, CFO of Integrated Electrical Services, Inc.,
+1-713-860-1500; or Ken Dennard, , or Karen Roan,
, both of DRG&E, +1-713-529-6600, for Integrated Electrical
Services, Inc.