Integrated Electrical Services Announces Sale of Two Business Units
05 Mayo 2005 - 6:00AM
PR Newswire (US)
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.
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