IES (IESC) Q4 2001 earnings summary

Executive summary

• FY2001 revenue rose to $1.693B from $1.672B; operating income increased to $80.6M and net income to $28.7M.

• Fourth-quarter FY2001 revenue was $423.6M and net income was $3.1M, compared with $514.6M and $10.9M in Q4 FY2000.

Financial highlights

• FY2001 gross profit was $307.6M, with an 18% gross margin; SG&A was $214.1M, or 12% of revenue.

• Income from operations was $80.6M, or 5% of revenue; diluted EPS was $0.70 versus $0.52 in FY2000.

• Net cash from operations was $8.6M; investing activities used $31.4M and financing activities provided $25.5M.

Outlook and guidance

• Post-September 11 conditions were challenging; cost actions targeted a 15%–20% reduction at corporate and 5%–10% in the field.

• Q1 FY2002 cost-reduction actions were expected to incur $4.0M–$4.5M in associated costs.

• Cash from operations and credit-facility proceeds were expected to cover working capital, debt service and planned capital spending for the next 12 months; internal projections anticipated covenant compliance.