DEI Document
DEI Document - shares | 9 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Entity Information [Line Items] | ||
Entity File Number | 001-13783 | |
Entity Registrant Name | IES Holdings, Inc. | |
Document Period End Date | Jun. 30, 2023 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0001048268 | |
Entity Incorporation, State or Country Code | DE | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Tax Identification Number | 76-0542208 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | IESC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 2 Riverway | |
Entity Address, Address Line Two | Suite 1730 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 713 | |
Local Phone Number | 860-1500 | |
Entity Common Stock, Shares Outstanding | 20,191,579 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 28,558 | $ 24,848 |
Accounts receivable | 340,763 | 370,726 |
Accounts and Other Receivables, Net, Current | 75,435 | 65,065 |
Inventories | 102,594 | 96,333 |
Costs and estimated earnings in excess of billings | 44,469 | 52,076 |
Prepaid expenses and other current assets | 12,648 | 15,350 |
Total current assets | 604,467 | 624,398 |
Property and equipment, net | 56,560 | 54,426 |
Goodwill | 92,395 | 92,395 |
Intangible assets, net | 60,467 | 71,936 |
Deferred tax assets | 14,943 | 20,519 |
Operating right of use assets | 53,811 | 55,890 |
Other non-current assets | 17,085 | 15,145 |
Total assets | 899,728 | 934,709 |
Accounts payable and accrued expenses | 261,099 | 316,950 |
Billings in excess of costs and estimated earnings | 109,119 | 84,936 |
Total current liabilities | 370,218 | 401,886 |
Long-term debt | 0 | 81,628 |
Operating long-term lease liabilities | 36,136 | 38,144 |
Liability for Uncertainty in Income Taxes, Noncurrent | 19,240 | 9,893 |
Other non-current liabilities | 14,525 | 12,677 |
Total liabilities | 440,119 | 544,228 |
Noncontrolling interest | 44,507 | 29,193 |
Preferred stock, value | 0 | 0 |
Common stock, value | 220 | 220 |
Treasury stock, value | (49,478) | (44,000) |
Additional paid-in capital | 202,406 | 201,871 |
Retained earnings | 261,954 | 203,197 |
Total stockholders' equity | 415,102 | 361,288 |
Total liabilities and stockholders' equity | $ 899,728 | $ 934,709 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ (2,784) | $ (5,361) |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 22,049,529 | 22,049,529 |
Common Stock, Shares, Outstanding | 20,191,579 | 20,341,900 |
Treasury Stock, Shares | 1,857,950 | 1,707,629 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 584,451 | $ 567,301 | $ 1,728,206 | $ 1,549,403 |
Cost of services | 476,842 | 484,501 | 1,424,233 | 1,328,369 |
Gross profit | 107,609 | 82,800 | 303,973 | 221,034 |
Selling, general and administrative expenses | 74,300 | 67,090 | 211,417 | 189,922 |
Contingent consideration | 70 | 70 | 208 | 208 |
Loss (gain) on sale of assets | (1,080) | 3 | (14,242) | (70) |
Operating income (loss) | 34,319 | 15,637 | 106,590 | 30,974 |
Interest expense | 391 | 761 | 2,624 | 1,740 |
Other (income) expense, net | (189) | 202 | (1,262) | 843 |
Income (loss) from operations before income taxes | 34,117 | 14,674 | 105,228 | 28,391 |
Provision for (benefit from) income taxes | 8,263 | 3,609 | 26,448 | 6,297 |
Net income (loss) | 25,854 | 11,065 | 78,780 | 22,094 |
Net income attributable to noncontrolling interest | (3,308) | (1,600) | (8,281) | (3,577) |
Comprehensive income attributable to IES Holdings, Inc. | $ 22,546 | $ 9,465 | $ 70,499 | $ 18,517 |
Earnings Per Share, Basic | $ 0.82 | $ 0.33 | $ 2.91 | $ 0.73 |
Earnings Per Share, Diluted | $ 0.81 | $ 0.33 | $ 2.88 | $ 0.71 |
Weighted Average Number of Shares Outstanding, Basic | 20,181,793 | 20,718,195 | 20,198,474 | 20,730,900 |
Weighted Average Number of Shares Outstanding, Diluted | 20,405,702 | 20,939,437 | 20,404,335 | 21,275,826 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock, Common | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Stockholders' Equity Attributable to Parent at Sep. 30, 2021 | $ 345,953 | $ 220 | $ (29,300) | $ 201,899 | $ 173,134 |
Shares, Issued at Sep. 30, 2021 | 22,049,529 | 1,316,998 | |||
Issuances under compensation plans | 0 | $ (3,638) | (3,638) | ||
Issuances under compensation plans, shares | 157,167 | ||||
Acquisition of treasury stock | 10,495 | $ 10,495 | 0 | ||
Acquisition of treasury stock, shares | (290,087) | ||||
Options exercised | 53 | $ 218 | 165 | ||
Options exercised, shares | 9,000 | ||||
Non-cash compensation | (2,897) | (2,897) | |||
Noncontrolling Interest, Change in Redemption Value | (3,464) | (3,464) | |||
Net income (loss) attributable to IES Holdings, Inc. | 18,517 | 18,517 | |||
Stockholders' Equity Attributable to Parent at Jun. 30, 2022 | 353,461 | $ 220 | $ (35,939) | 200,993 | 188,187 |
Shares, Issued at Jun. 30, 2022 | 22,049,529 | 1,440,918 | |||
Stockholders' Equity Attributable to Parent at Mar. 31, 2022 | 351,048 | $ 220 | $ (30,587) | 200,159 | 181,256 |
Shares, Issued at Mar. 31, 2022 | 22,049,529 | 1,264,031 | |||
Acquisition of treasury stock | 5,570 | $ 5,570 | 0 | ||
Acquisition of treasury stock, shares | (185,887) | ||||
Options exercised | 53 | $ 218 | 165 | ||
Options exercised, shares | 9,000 | ||||
Non-cash compensation | (999) | (999) | |||
Noncontrolling Interest, Change in Redemption Value | (2,534) | (2,534) | |||
Net income (loss) attributable to IES Holdings, Inc. | 9,465 | 9,465 | |||
Stockholders' Equity Attributable to Parent at Jun. 30, 2022 | 353,461 | $ 220 | $ (35,939) | 200,993 | 188,187 |
Shares, Issued at Jun. 30, 2022 | 22,049,529 | 1,440,918 | |||
Stockholders' Equity Attributable to Parent at Sep. 30, 2022 | 361,288 | $ 220 | $ (44,000) | 201,871 | 203,197 |
Shares, Issued at Sep. 30, 2022 | 22,049,529 | 1,707,629 | |||
Issuances under compensation plans | 0 | $ (2,692) | (2,692) | ||
Issuances under compensation plans, shares | 103,053 | ||||
Acquisition of treasury stock | 8,213 | $ 8,223 | (10) | ||
Acquisition of treasury stock, shares | (255,374) | ||||
Options exercised | 14 | $ 53 | 39 | ||
Options exercised, shares | 2,000 | ||||
Non-cash compensation | (3,256) | (3,256) | |||
Noncontrolling Interest, Change in Redemption Value | (11,742) | (11,742) | |||
Net income (loss) attributable to IES Holdings, Inc. | 70,499 | 70,499 | |||
Stockholders' Equity Attributable to Parent at Jun. 30, 2023 | 415,102 | $ 220 | $ (49,478) | 202,406 | 261,954 |
Shares, Issued at Jun. 30, 2023 | 22,049,529 | 1,857,950 | |||
Stockholders' Equity Attributable to Parent at Mar. 31, 2023 | 397,751 | $ 220 | $ (49,751) | 201,958 | 245,324 |
Shares, Issued at Mar. 31, 2023 | 22,049,529 | 1,878,008 | |||
Issuances under compensation plans | 0 | $ (849) | (849) | ||
Issuances under compensation plans, shares | 32,040 | ||||
Acquisition of treasury stock | 576 | $ 576 | 0 | ||
Acquisition of treasury stock, shares | (11,982) | ||||
Non-cash compensation | (1,297) | (1,297) | |||
Noncontrolling Interest, Change in Redemption Value | (5,916) | (5,916) | |||
Net income (loss) attributable to IES Holdings, Inc. | 22,546 | 22,546 | |||
Stockholders' Equity Attributable to Parent at Jun. 30, 2023 | $ 415,102 | $ 220 | $ (49,478) | $ 202,406 | $ 261,954 |
Shares, Issued at Jun. 30, 2023 | 22,049,529 | 1,857,950 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ 78,780 | $ 22,094 |
Bad debt expense | 480 | 2,716 |
Deferred financing cost amortization | 199 | 136 |
Depreciation and amortization | 20,130 | 18,740 |
Gain (Loss) on Disposition of Property Plant Equipment | (14,242) | (70) |
Gain (Loss) on Sale of Investments [Abstract] | ||
Non-cash compensation expense | 3,256 | 2,897 |
Deferred income taxes | 9,352 | 1,815 |
Accounts receivable | 25,390 | (60,879) |
Inventories | (8,081) | (24,188) |
Costs and estimated earnings in excess of billings | 7,607 | (15,339) |
Prepaid expenses and other current assets | (7,990) | (13,412) |
Other non-current assets | 2,027 | (1,974) |
Accounts payable and accrued expenses | (44,848) | 41,449 |
Billings in excess of costs and estimated earnings | 24,399 | 8,911 |
Other non-current liabilities | 163 | (695) |
Net cash provided by operating activities | 96,622 | (17,799) |
Capital expenditures | (11,286) | (26,609) |
Proceeds from sale of assets | 20,433 | 175 |
Cash paid in conjunction with business combinations | (165) | (500) |
Net cash used in investing activities | 8,982 | (26,934) |
Borrowings of debt | 1,758,982 | 1,383,745 |
Repayments of debt | (1,841,641) | (1,327,209) |
Cash paid for finance leases | (2,552) | (1,055) |
Distribution to noncontrolling interest | (8,484) | (6,352) |
Purchase of treasury stock | (8,213) | (10,495) |
Options exercised | 14 | 53 |
Net cash used in financing activities | (101,894) | 38,687 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,710 | (6,046) |
CASH, CASH EQUIVALENTS, beginning of period | 24,848 | 23,105 |
CASH, CASH EQUIVALENTS, end of period | 28,558 | 17,059 |
Cash paid for interest | 1,932 | 1,917 |
Cash paid for income taxes (net) | $ 8,257 | $ 3,023 |
Business
Business | 9 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. BUSINESS AND ACCOUNTING POLICIES Description of the Business IES Holdings, Inc. designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing and commercial and industrial facilities. Our operations are organized into four business segments, based upon the nature of our services: • Communications – Nationwide provider of technology infrastructure services, including the design, build, and maintenance of the communications infrastructure within data centers for co-location and managed hosting customers, for both large corporations and independent businesses. • Residential – Regional provider of electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation and air conditioning (HVAC) and plumbing installation services in certain markets. • Infrastructure Solutions – Provider of electro-mechanical solutions for industrial operations, including apparatus repair and custom-engineered products such as generator enclosures used in data centers and other industrial applications. • Commercial & Industrial – Provider of electrical and mechanical design, construction, and maintenance services to the commercial and industrial markets in various regional markets and nationwide in certain areas of expertise, such as the power infrastructure market and data centers. The words “IES”, the “Company”, “we”, “our”, and “us” refer to IES Holdings, Inc. and, except as otherwise specified herein, to our consolidated subsidiaries. Seasonality and Quarterly Fluctuations Results of operations from our Residential segment can be seasonal, depending on weather trends, with typically higher revenues generated during spring and summer and lower revenues generated during fall and winter. The Commercial & Industrial, Communications and Infrastructure Solutions segments of our business are less subject to seasonal trends, as work in these segments generally is performed inside structures protected from the weather, although weather can still impact these businesses, especially in the early stages of projects. From quarter to quarter, results for our Communications, Residential, and Commercial & Industrial segments may be materially affected by the timing of new construction projects, and our volume of business may be adversely affected by declines in construction projects resulting from adverse regional or national economic conditions. Quarterly results for our Infrastructure Solutions segment may be affected by the timing of outages or capital projects at our customers’ facilities. Accordingly, operating results for any fiscal period are not necessarily indicative of results that may be achieved for any subsequent fiscal period. Basis of Financial Statement Preparation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of IES, our wholly-owned subsidiaries, and entities that we control due to ownership of a majority of voting interest and have been prepared in accordance with the instructions to interim financial reporting as prescribed by the United States Securities and Exchange Commission (the “SEC”). The results for the interim periods are not necessarily indicative of results for the entire year. These interim financial statements do not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”) and should be read in conjunction with the consolidated financial statements and notes thereto filed with the SEC in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. In the opinion of management, the unaudited Condensed Consolidated Financial Statements contained in this report include all known accruals and adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods reported herein. Any such adjustments are of a normal recurring nature. Noncontrolling Interest In connection with our acquisitions of Edmonson Electric, LLC and Bayonet Plumbing, Heating & Air-Conditioning, LLC (“Bayonet”) in fiscal 2021, and NEXT Electric, LLC in fiscal 2017, we acquired an 80 percent interest in each of the entities, with the remaining 20 percent interest in each such entity being retained by the respective third-party seller. The interests retained by those third-party sellers are identified on our Condensed Consolidated Balance Sheets as noncontrolling interest, classified outside of permanent equity. Under the terms of each entity’s operating agreement, after five years from the date of the acquisition, we may elect to purchase, or the third-party seller may require us to purchase, part or all of the remaining 20 percent interest in the applicable entity. The purchase price is variable, based on a multiple of earnings as defined in the operating agreements. Therefore, this noncontrolling interest is carried at the greater of the balance determined under Accounting Standards Codification 810 and the redemption amounts assuming the noncontrolling interests were redeemable at the balance sheet date. If all of the noncontrolling interests remaining outstanding at June 30, 2023 had been redeemable at that date, the redemption amount would have been $44,507. Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used in our revenue recognition of construction in progress, fair value assumptions in accounting for business combinations and analyzing goodwill, investments, intangible assets and long-lived asset impairments and adjustments, allowance for credit losses, stock-based compensation, reserves for legal matters, realizability of deferred tax assets, unrecognized tax benefits and self-insured claims liabilities and related reserves. Other (Income) Expense, Net Other (Income) Expense, Net includes primarily unrealized gains or losses on equity securities, including those related to our Executive Deferred Compensation Plan. These securities are recorded at fair value (Level 1) at the end of each reporting period. Please refer to Note 8 - Fair Value Measurements for further information. |
Controlling Shareholder
Controlling Shareholder | 9 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Controlling Shareholder [Text Block] | 2. CONTROLLING STOCKHOLDER Tontine Associates, L.L.C. (“Tontine Associates”), together with its affiliates (collectively, “Tontine”), is the Company’s controlling stockholder, owning approximately 58 percent of the Company’s outstanding common stock based on Amendment No. 26 to the Schedule 13D filed by Tontine with the SEC on December 16, 2022 and the Company's shares outstanding as of July 31, 2023. Accordingly, Tontine has the ability to exercise significant control over our affairs, including the election of directors and most actions requiring the approval of stockholders. While Tontine is subject to certain restrictions under federal securities laws on sales of its shares as an affiliate, the Company has filed a shelf registration statement to register all of the shares of IES common stock owned by Tontine at the time of registration. As long as the shelf registration statement remains effective and the Company remains eligible to use it, Tontine has the ability to resell any or all of its registered shares from time to time in one or more offerings, as described in the shelf registration statement and in any prospectus supplement filed in connection with an offering pursuant to the shelf registration statement. Should Tontine sell or otherwise dispose of all or a portion of its position in IES, a change in ownership of IES could occur. A change in ownership, as defined by Internal Revenue Code Section 382, could reduce the availability of the Company’s net operating loss carryforwards for federal and state income tax purposes. Furthermore, a change of control would trigger the change of control provisions in a number of our material agreements, including our credit agreement, bonding agreements with our sureties and our executive severance plan. Jeffrey L. Gendell was appointed as Chief Executive Officer of the Company effective October 1, 2020, having served as the Company's Interim Chief Executive Officer since July 31, 2020. Mr. Gendell also serves as Chairman of the Board of Directors, a position he has held since November 2016. He is the managing member and founder of Tontine, and the brother of David B. Gendell, who has served as a member of our Board of Directors since February 2012, and who previously served as Interim Director of Operations from November 2017 to January 2019, as Vice Chairman of the Board from November 2016 to November 2017 and as Chairman of the Board from January 2015 to November 2016. David B. Gendell was an employee of Tontine from 2004 until January 2018. The Company is party to a sublease agreement with Tontine Associates for corporate office space in Greenwich, Connecticut. In December 2022, the Company entered into an amendment of the sublease agreement, which was set to terminate on February 28, 2023, to extend the term of the agreement through August 31, 2024 and to increase the monthly payments from approximately $8 to approximately $9 effective March 1, 2023. Payments by the Company are at a rate consistent with that paid by Tontine Associates to its landlord. On December 6, 2018, the Company entered into a Board Observer Letter Agreement (the "Observer Agreement") with Tontine Associates in order to assist Tontine in managing its investment in the Company. Subject to the terms and conditions set forth in the Observer Agreement, the Company granted Tontine the right, at any time that Tontine holds at least 20% of the outstanding common stock of the Company, to appoint a representative to serve as an observer to the Board (the “Board Observer”). The Board Observer, who must be reasonably acceptable to those members of the Board who are not affiliates of Tontine, shall have no voting rights or other decision making authority. Subject to the terms and conditions set forth in the Observer Agreement, so long as Tontine has the right to appoint a Board Observer, the Board Observer will have the right to attend and participate in meetings of the Board and the committees thereof, subject to confidentiality requirements, and to receive reimbursement for reasonable out-of-pocket expenses |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | 3. REVENUE RECOGNITION Contracts Our revenue is derived from contracts with customers, and we determine the appropriate accounting treatment for each contract at its inception. Our contracts primarily relate to electrical and mechanical contracting services, technology infrastructure products and services, and electro-mechanical solutions for industrial operations. Revenue is earned based upon an agreed fixed price or actual costs incurred plus an agreed upon percentage. We account for a contract when: (i) it has approval and commitment from both parties, (ii) the rights of the parties are identified, (iii) payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. We consider the start of a project to be when the above criteria have been met and we have written authorization from the customer to proceed. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. We recognize revenue over time for the majority of the services we perform as (i) control continuously transfers to the customer as work progresses at a project location controlled by the customer and (ii) we have the right to bill the customer as costs are incurred. Within our Infrastructure Solutions segment, we often perform work inside our own facilities, where control does not continuously transfer to the customer as work progresses. In such cases, we evaluate whether we have the right to bill the customer as costs are incurred. Such assessment involves an evaluation of contractual termination clauses. Where we have a contractual right to payment for work performed to date, we recognize revenue over time. If we do not have such a right, we recognize revenue upon completion of the contract, when control of the work transfers to the customer. For fixed price arrangements, we use the percentage of completion method of accounting under which revenue recognized is measured principally by the costs incurred and accrued to date for each contract as a percentage of the estimated total cost for each contract at completion. Contract costs include all direct material, labor and indirect costs related to contract performance. Changes in job performance, job conditions, estimated contract costs and profitability and final contract settlements may result in revisions to costs and income, and the effects of these revisions are recognized in the period in which the revisions are determined. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. This measurement and comparison process requires updates to the estimate of total costs to complete the contract, and these updates may include subjective assessments and judgments. Variable Consideration The transaction price for our contracts may include variable consideration, which includes changes to transaction price for approved and unapproved change orders, claims and incentives. Change orders, claims, and incentives are generally not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as a modification of the existing contract and performance obligation. We estimate variable consideration for a performance obligation at the probability weighted value we expect to receive (or the most probable amount we expect to incur in the case of liquidated damages, if any), utilizing estimation methods that best predict the amount of consideration to which we will be entitled (or which will be incurred in the case of liquidated damages, if any). We include variable consideration in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. The effect of variable consideration on the transaction price of a performance obligation is recognized as an adjustment to revenue on a cumulative catch-up basis. To the extent unapproved change orders and claims reflected in transaction price (or accounted for as a reduction of the transaction price in the case of liquidated damages) are not resolved in our favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue. Disaggregation of Revenue We disaggregate our revenue from contracts with customers by activity and contract type, as these categories reflect how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Our consolidated revenue for the three and nine months ended June 30, 2023 and 2022 was derived from the following activities. See details in the following tables: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Communications $ 141,615 $ 144,748 $ 429,980 $ 402,776 Residential Single-family 228,637 224,556 666,891 590,453 Multi-family and Other 89,374 77,207 275,310 213,492 Total Residential 318,011 301,763 942,201 803,945 Infrastructure Solutions Industrial Services 11,312 15,317 33,828 45,970 Custom Power Solutions 45,745 24,520 125,129 77,696 Total Infrastructure Solutions 57,057 39,837 158,957 123,666 Commercial & Industrial 67,768 80,953 $ 197,068 219,016 Total Revenue $ 584,451 $ 567,301 $ 1,728,206 $ 1,549,403 Three Months Ended June 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 98,027 $ 318,011 $ 55,409 $ 61,351 $ 532,798 Time-and-material 43,588 — 1,648 6,417 51,653 Total revenue $ 141,615 $ 318,011 $ 57,057 $ 67,768 $ 584,451 Three Months Ended June 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 94,109 $ 301,763 $ 38,126 $ 75,779 $ 509,777 Time-and-material 50,639 — 1,711 5,174 57,524 Total revenue $ 144,748 $ 301,763 $ 39,837 $ 80,953 $ 567,301 Nine Months Ended June 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 277,693 $ 942,201 $ 153,906 $ 178,902 $ 1,552,702 Time-and-material 152,287 — 5,051 18,166 175,504 Total revenue $ 429,980 $ 942,201 $ 158,957 $ 197,068 $ 1,728,206 Nine Months Ended June 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 268,253 $ 803,945 $ 118,503 $ 204,985 $ 1,395,686 Time-and-material 134,523 — 5,163 14,031 153,717 Total revenue $ 402,776 $ 803,945 $ 123,666 $ 219,016 $ 1,549,403 Accounts Receivable and Allowance for Credit Losses Accounts receivable include amounts that we have billed or have an unconditional right to bill our customers. As of June 30, 2023, Accounts receivable included $9,753 of unbilled receivables for which we have an unconditional right to bill. In calculating our expected credit losses, we considered trade receivables, retainage, and costs and estimated earnings in excess of billings, all of which constitute a homogenous portfolio, and therefore, to measure the expected credit loss, they have been grouped together. We have elected to calculate an expected credit loss based on loss rates from historical data. Each segment groups financial assets with similar risk characteristics and collectively assesses the expected credit losses. If an individual asset experiences credit deterioration to the extent the credit risk is no longer characteristic of the other assets in the group, it will be analyzed individually. The loss rates for our portfolios include our history of credit loss expense, the aging of our receivables, our expectation of payments and adjustment for forward-looking factors specific to the macroeconomic trends in the markets we serve. Other than trade receivables due in one year or less, we do not have any other financial assets that are past due or are on non-accrual status. Contract Assets and Liabilities Project contracts typically provide for a schedule of billings on percentage of completion of specific tasks inherent in the fulfillment of our performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statement of operations can and usually does differ from amounts that can be billed to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceeds cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in our Condensed Consolidated Balance Sheet under the caption “Costs and estimated earnings in excess of billings”. Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized are reflected as a current liability in our Condensed Consolidated Balance Sheet under the caption “Billings in excess of costs and estimated earnings”. During the nine months ended June 30, 2023 and 2022, we recognized revenue of $78,263 and $46,703 related to our contract liabilities at October 1, 2022 and 2021, respectively. Remaining Performance Obligations Remaining performance obligations represent the unrecognized revenue value of our contract commitments. New awards represent the total expected revenue value of new contract commitments undertaken during a given period, as well as additions to the scope of existing contract commitments. Our new performance obligations vary significantly each reporting period based on the timing of our major new contract commitments. At June 30, 2023, we had remaining performance obligations of $1,071,605. The Company expects to recognize revenue on approximately $856,542 of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. For the three and nine months ended June 30, 2023, net revenue recognized from our performance obligations satisfied in previous periods was not material. |
Debt
Debt | 9 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 4. DEBT We are a party to the Third Amended and Restated Credit and Security Agreement (the "Amended Credit Agreement"), which provides for a maximum borrowing amount of $150,000 under our revolving credit facility. The Amended Credit Agreement, which matures on September 30, 2026, contains customary affirmative, negative and financial covenants as disclosed in Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. As of June 30, 2023, the Company was in compliance with the financial covenants under the Amended Credit Agreement. At June 30, 2023, we had no outstanding borrowings under our revolving credit facility, and at September 30, 2022, we had outstanding borrowings under our revolving credit facility of $82,659. At June 30, 2023, we also had $4,166 in outstanding letters of credit and total availability of $143,396 under our revolving credit facility without triggering the financial covenants under the Amended Credit Facility. |
Per Share Information
Per Share Information | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 5. PER SHARE INFORMATION The following tables reconcile the components of basic and diluted earnings per share for the three and nine months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 2022 Numerator: Net income attributable to IES Holdings, Inc. $ 22,546 $ 9,465 Increase in noncontrolling interest (5,916) (2,534) Net income attributable to restricted stockholders of IES Holdings, Inc. — (5) Net income attributable to common stockholders of IES Holdings, Inc. $ 16,630 $ 6,926 Denominator: Weighted average common shares outstanding — basic 20,181,793 20,718,195 Effect of dilutive stock options and non-vested securities 223,909 221,242 Weighted average common and common equivalent shares outstanding — diluted 20,405,702 20,939,437 Earnings per share attributable to common stockholders of IES Holdings, Inc.: Basic $ 0.82 $ 0.33 Diluted $ 0.81 $ 0.33 Nine Months Ended June 30, 2023 2022 Numerator: Net income attributable to IES Holdings, Inc. $ 70,499 $ 18,517 Increase in noncontrolling interest (11,742) (3,464) Net income attributable to restricted stockholders of IES Holdings, Inc. (9) (10) Net income attributable to common stockholders of IES Holdings, Inc. $ 58,748 $ 15,043 Denominator: Weighted average common shares outstanding — basic 20,198,474 20,730,900 Effect of dilutive stock options and non-vested securities 205,861 544,926 Weighted average common and common equivalent shares outstanding — diluted 20,404,335 21,275,826 Earnings per share attributable to common stockholders of IES Holdings, Inc.: Basic $ 2.91 $ 0.73 Diluted $ 2.88 $ 0.71 For the three and nine months ended June 30, 2023 and 2022, the average price of our common shares exceeded the exercise price of all of our outstanding stock options; therefore, all of our outstanding stock options were included in the computation of diluted earnings per share. For the three months ended June 30, 2023 and the three and nine months ended June 30, 2022, all potentially dilutive unvested performance awards were included in the calculation of diluted earnings per share. For the nine months ended June 30, 2023, the computation of diluted earnings per share excluded certain unvested performance awards as the inclusion of such instruments would have been anti-dilutive. |
Operating Segments
Operating Segments | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 6. OPERATING SEGMENTS We manage and measure performance of our business in four distinct operating segments: Communications, Residential, Infrastructure Solutions, and Commercial & Industrial. These segments are reflective of how the Company’s Chief Operating Decision Maker (“CODM”) reviews operating results for the purpose of allocating resources and assessing performance. The Company’s CODM is its Chief Executive Officer. Transactions between segments, if any, are eliminated in consolidation. Our corporate organization provides general and administrative services, as well as support services, to each of our four operating segments. Management allocates certain shared costs among segments for selling, general and administrative expenses and depreciation expense. Segment information for the three and nine months ended June 30, 2023 and 2022 is as follows: Three Months Ended June 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 141,615 $ 318,011 $ 57,057 $ 67,768 $ — $ 584,451 Cost of services 114,440 260,679 42,851 58,872 — 476,842 Gross profit 27,175 57,332 14,206 8,896 — 107,609 Selling, general and administrative 13,680 41,939 7,066 6,284 5,331 74,300 Contingent consideration — 70 — — — 70 Gain on sale of assets (1) (56) (1,010) (13) — (1,080) Operating income (loss) $ 13,496 $ 15,379 $ 8,150 $ 2,625 $ (5,331) $ 34,319 Other data: Depreciation and amortization expense $ 498 $ 4,609 $ 1,300 $ 402 $ 69 $ 6,878 Capital expenditures $ 261 $ 2,461 $ 918 $ 800 $ 169 $ 4,609 Total assets $ 182,117 $ 381,840 $ 179,363 $ 84,101 $ 72,307 $ 899,728 Three Months Ended June 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 144,748 $ 301,763 $ 39,837 $ 80,953 $ — $ 567,301 Cost of services 128,952 248,928 33,726 72,895 — 484,501 Gross profit 15,796 52,835 6,111 8,058 — 82,800 Selling, general and administrative 11,544 37,237 6,484 7,788 4,037 67,090 Contingent consideration — 70 — — — 70 Loss (gain) on sale of assets (1) 6 — (2) — 3 Operating income (loss) $ 4,253 $ 15,522 $ (373) $ 272 $ (4,037) $ 15,637 Other data: Depreciation and amortization expense $ 394 $ 3,863 $ 1,427 $ 645 $ 43 $ 6,372 Capital expenditures $ 424 $ 1,115 $ 3,071 $ 372 $ — $ 4,982 Total assets $ 196,520 $ 376,328 $ 152,405 $ 111,782 $ 47,357 $ 884,392 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | 7. STOCKHOLDERS’ EQUITY Equity Incentive Plan The Company’s 2006 Equity Incentive Plan, as amended and restated (the “Equity Incentive Plan”), provides for grants of stock options as well as grants of stock, including restricted stock. Approximately 3.0 million shares of common stock are authorized for issuance under the Equity Incentive Plan, of which approximately 618,222 shares were available for issuance at June 30, 2023. Stock Repurchase Program In 2015, our Board authorized a stock repurchase program for the purchase from time to time of up to 1.5 million shares of the Company’s common stock, and in 2019 authorized the repurchase from time to time of up to an additional 1.0 million shares under the program. In December 2022, our Board terminated the remaining authorization under this program, and approved a new $40,000 share repurchase program. Share purchases are made for cash in open market transactions at prevailing market prices or in privately negotiated transactions or otherwise. The timing and amount of purchases under the program are determined based upon prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. All or part of the repurchases may be implemented under a Rule 10b5-1 trading plan, which allows repurchases under predetermined terms at times when the Company might otherwise be prevented from purchasing under insider trading laws or because of self-imposed blackout periods. The program does not require the Company to purchase any specific number of shares and may be modified, suspended, reinstated, or terminated at any time at the Company’s discretion and without notice. We repurchased 234 and 224,013 shares, respectively, of our common stock during the three and nine months ended June 30, 2023 in open market transactions at an average price of $40.00 and $31.06, respectively, per share. During the three and nine months ended June 30, 2022, we repurchased 185,887 and 244,889 shares, respectively, of our common stock in open market transactions at an average price of $29.94 and $34.01, respectively, per share. Treasury Stock During the nine months ended June 30, 2023, we issued 103,053 shares of common stock from treasury stock to employees and repurchased 31,095 shares of common stock from our employees to satisfy statutory tax withholding requirements upon the vesting of certain performance phantom stock units under the Equity Incentive Plan. In addition, 266 restricted shares were forfeited and returned to treasury stock. During the nine months ended June 30, 2023, we issued 2,000 unrestricted shares to satisfy the exercise of outstanding options. During the nine months ended June 30, 2022, we issued 73,627 shares of common stock from treasury stock to employees and repurchased 45,198 shares of common stock from our employees to satisfy statutory tax withholding requirements upon the vesting of certain performance phantom stock units under the Equity Incentive Plan. In addition, we issued 83,540 shares from treasury stock to satisfy the vesting of Director PSUs (as defined below) in conjunction with the departure of a Board member. Restricted Stock We granted no restricted shares to executives during the nine months ended June 30, 2023. Of the awards previously granted, 13,373 shares vested and 266 shares were forfeited. We did not recognize any compensation expense related to restricted stock awards during the three months ended June 30, 2023, and during the three months ended June 30, 2022 we recognized $36 in compensation expense related to restricted stock awards. During the nine months ended June 30, 2023 and 2022, we recognized $25 and $107, respectively, in compensation expense related to restricted stock awards. At June 30, 2023, we had no remaining unvested restricted shares or unamortized compensation cost related to outstanding unvested restricted stock. Director Phantom Stock Units Director phantom stock units (“Director PSUs”) are granted to the members of the Board of Directors as part of their overall compensation. The Director PSUs are contractual rights to receive one share of the Company's common stock and are paid via unrestricted stock grants to each director upon their departure from the Board of Directors, or upon a change in control. We record compensation expense for the full value of the grant on the date of grant. We recognized compensation expense related to these grants of $99 and $96 during the three months ended June 30, 2023 and 2022, respectively, and $289 and $289 during the nine months ended June 30, 2023 and 2022, respectively. Employee Phantom Stock Units An employee phantom stock unit (an “Employee PSU”) is a contractual right to receive one share of the Company’s common stock. Depending on the terms of each grant, Employee PSUs may vest upon the achievement of certain specified performance objectives and continued performance of services, or may vest based on continued performance of services through the vesting date. As of June 30, 2023, the Company had outstanding Employee PSUs, which, subject to the achievement of certain performance metrics, could result in the issuance of 330,660 shares of common stock. During the nine months ended June 30, 2023, we granted 130,739 Employee PSUs, 12,987 were forfeited, and 103,053 vested. During the three months ended June 30, 2023 and 2022, we recognized $1,200 and $866, respectively, in compensation expense related to Employee PSU grants. During the nine months ended June 30, 2023 and 2022, we recognized $2,941 and $2,498, respectively, in compensation expense related to Employee PSU grants. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | . FAIR VALUE MEASUREMENTS Fair Value Measurement Accounting Fair value is considered the price to sell an asset, or transfer a liability, between market participants on the measurement date. Fair value measurements assume that (1) the asset or liability is exchanged in an orderly manner, (2) the exchange is in the principal market for that asset or liability, and (3) the market participants are independent, knowledgeable, and able and willing to transact an exchange. Fair value accounting and reporting establishes a framework for measuring fair value by creating a hierarchy for observable independent market inputs and unobservable market assumptions and expands disclosures about fair value measurements. Judgment is required to interpret the market data used to develop fair value estimates. As such, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current exchange. The use of different market assumptions and/or estimation methods could have a material effect on the estimated fair value. At June 30, 2023, financial assets and liabilities measured at fair value on a recurring basis were limited to our Executive Deferred Compensation Plan, under which certain employees are permitted to defer a portion of their base salary and/or bonus for a Plan Year (as defined in the plan), equity securities held for sale, and contingent consideration liabilities related to certain of our acquisitions. Financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and September 30, 2022, are summarized in the following tables by the type of inputs applicable to the fair value measurements: June 30, 2023 Total Fair Value Quoted Prices (Level 1) Significant Unobservable Inputs (Level 3) Executive savings plan assets $ 821 $ 821 $ — Executive savings plan liabilities (694) (694) — Contingent consideration liability (4,429) — (4,429) Total $ (4,302) $ 127 $ (4,429) September 30, 2022 Total Fair Value Quoted Prices (Level 1) Significant Unobservable Inputs (Level 3) Executive savings plan assets $ 706 $ 706 $ — Equity securities 1,937 1,937 — Executive savings plan liabilities (585) (585) — Contingent consideration liability (4,323) — (4,323) Total $ (2,265) $ 2,058 $ (4,323) In fiscal year 2021, we entered into a contingent consideration arrangement related to the acquisition of Bayonet. At June 30, 2023, we estimated the fair value of this contingent consideration liability at $4,429. The table below presents the change in fair value of this obligation, which used significant unobservable inputs (Level 3). Contingent Consideration Agreements Fair value at September 30, 2022 $ (4,323) Net adjustments to fair value (106) Fair value at June 30, 2023 $ (4,429) |
Inventory
Inventory | 9 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 9. INVENTORY Inventories consist of the following components: June 30, September 30, 2023 2022 Raw materials $ 14,387 $ 12,504 Work in process 12,010 8,218 Finished goods 2,748 2,129 Parts and supplies 73,449 73,482 Total inventories $ 102,594 $ 96,333 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 10. GOODWILL AND INTANGIBLE ASSETS Goodwill The following summarizes the carrying value of goodwill by segment at June 30, 2023, which was unchanged from September 30, 2022: Communications Residential Infrastructure Solutions Commercial & Industrial Total Goodwill at June 30, 2023 $ 2,816 $ 51,370 $ 38,209 $ — $ 92,395 Intangible Assets Intangible assets consist of the following: Estimated Useful Lives (in Years) June 30, 2023 Gross Carrying Amount Accumulated Amortization Net Trademarks/trade names 5 - 20 $ 14,621 $ (5,417) $ 9,204 Technical library 20 400 (196) 204 Customer relationships 6 - 15 91,426 (40,368) 51,058 Non-competition arrangements 5 40 (39) 1 Backlog and construction contracts 1 4,958 (4,958) — Total intangible assets $ 111,445 $ (50,978) $ 60,467 Estimated Useful Lives (in Years) September 30, 2022 Gross Carrying Amount Accumulated Amortization Net Trademarks/trade names 5 - 20 $ 15,262 $ (4,589) $ 10,673 Technical library 20 400 (181) 219 Customer relationships 6 - 15 96,699 (35,662) 61,037 Non-competition arrangements 5 40 (33) 7 Backlog and construction contracts 1 4,958 (4,958) — Total intangible assets $ 117,359 $ (45,423) $ 71,936 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 11. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, we are a party to various claims, lawsuits and other legal proceedings that arise in the ordinary course of business. We maintain various insurance coverages to minimize financial risk associated with these proceedings. None of these proceedings, separately or in the aggregate, are expected to have a material adverse effect on our financial position, results of operations or cash flows. With respect to all such proceedings, we record reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. We expense routine legal costs related to these proceedings as they are incurred. In the course of performing work as a subcontractor, from time to time we may be involved in projects which are the subject of contractual disputes between the general contractor and project owner, or between us and the general contractor. In such cases, payment of amounts owed to us by the general contractor may be delayed as contractual disputes are resolved through mediation, arbitration, or litigation. Such disputes may cause us to incur legal fees and other expenses to enforce our contractual rights, and we may not prevail in recovering all amounts to which we believe we are contractually entitled. At September 30, 2022, we had an aggregate $10,451 of trade accounts receivable where payment had been delayed as a result of contractual disputes and against which we had recorded a reserve of $3,095. During the nine months ended June 30, 2023, we collected $5,619 related to these receivables. We believe that we are contractually entitled to the remaining amounts owed to us, and intend to vigorously pursue recovery. At June 30, 2023, the remaining book value of receivables and retainage related to these contractual disputes, net of associated reserves, was $1,300. Risk Management We retain the risk for workers’ compensation, employer’s liability, automobile liability, construction defects, general liability and employee group health claims, as well as pollution coverage, resulting from uninsured deductibles per accident or occurrence which are generally subject to annual aggregate limits. Our general liability program provides coverage for bodily injury and property damage. In many cases, we insure third parties, including general contractors, as additional insured parties under our insurance policies. Losses are accrued based upon our known claims incurred and an estimate of claims incurred but not reported. As a result, many of our claims are effectively self-insured. Many claims against our insurance are in the form of litigation. At June 30, 2023 and September 30, 2022, we had $8,009 and $7,693, respectively, accrued for self-insurance liabilities. Because the reserves are based on judgment and estimates and involve variables that are inherently uncertain, such as the outcome of litigation and an assessment of insurance coverage, there can be no assurance that the ultimate liability will not be higher or lower than such estimates or that the timing of payments will not create liquidity issues for the Company. Some of the underwriters of our casualty insurance program require us to post letters of credit as collateral. This is common in the insurance industry. To date, we have not had a situation where an underwriter has had reasonable cause to effect payment under a letter of credit. At June 30, 2023 and September 30, 2022, $4,166 and $3,878, respectively, of our outstanding letters of credit was utilized to collateralize our insurance program. Surety As of June 30, 2023, the estimated cost to complete our bonded projects was approximately $170,440. We evaluate our bonding requirements on a regular basis, including the terms offered by our sureties. We believe the bonding capacity presently provided by our current sureties is adequate for our current operations and will be adequate for our operations for the foreseeable future. Other Commitments and Contingencies Some of our customers and vendors require us to post letters of credit, or provide intercompany guarantees, as a means of guaranteeing performance under our contracts and ensuring payment by us to subcontractors and vendors. If our customer has reasonable cause to effect payment under a letter of credit, we would be required to reimburse our creditor for the letter of credit. |
Leases
Leases | 9 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 12. LEASES We enter into various contractual arrangements for the right to use facilities, vehicles and equipment. The lease terms generally range from two to ten years for facilities and three to five years for vehicles and equipment. Our lease terms may include the exercise of renewal or termination options when it is reasonably certain these options will be exercised. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Current operating and finance lease liabilities of $17,454 and $4,275, respectively, as of June 30, 2023, and $17,319 and $2,928, respectively, as of September 30, 2022, were included in “Accounts payable and accrued expenses” in the Condensed Consolidated Balance Sheets. Non-current finance lease liabilities and finance lease right-of-use assets were included in the “Other non-current liabilities” and “Other non-current assets”, respectively, in the Condensed Consolidated Balance Sheets. The maturities of our lease liabilities as of June 30, 2023 are as follows: Operating Leases Finance Leases Total Remainder of 2023 $ 4,801 $ 1,106 $ 5,907 2024 16,997 4,395 21,392 2025 13,332 4,163 17,495 2026 9,737 3,297 13,034 2027 6,552 1,557 8,109 Thereafter 8,580 138 8,718 Total undiscounted lease payments $ 59,999 $ 14,656 $ 74,655 Less: imputed interest 6,409 1,484 7,893 Present value of lease liabilities $ 53,590 $ 13,172 $ 66,762 The total future undiscounted cash flows related to lease agreements committed to but not yet commenced as of June 30, 2023 is $14,384. Lease cost recognized in our Condensed Consolidated Statements of Comprehensive Income is summarized as follows: Three Months Ended Nine Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating lease cost $ 4,524 $ 3,947 $ 0 $ 13,857 $ 12,107 Finance lease cost Amortization of lease assets 865 435 2,551 1,039 Interest on lease liabilities 180 71 546 175 Finance lease cost 1,045 506 3,097 1,214 Short-term lease cost 599 321 1,701 1,097 Variable lease cost 812 483 1,886 1,439 Total lease cost $ 6,980 $ 5,257 $ 20,541 $ 15,857 Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is summarized as follows: Three Months Ended Nine Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating cash flows used for operating leases $ 5,856 $ 4,956 $ 17,674 $ 14,307 Operating cash flows used for finance leases 180 71 546 175 Right-of-use assets obtained in exchange for new operating lease liabilities 5,119 2,790 14,310 14,289 Right-of-use assets obtained in exchange for new finance lease liabilities 981 1,686 5,807 4,268 June 30, 2023 September 30, 2022 Weighted-average remaining lease term - operating leases 4.5 years 4.8 years Weighted-average remaining lease term - finance leases 3.6 years 3.9 years Weighted-average discount rate - operating leases 4.6 % 4.0 % Weighted-average discount rate - finance leases 5.9 % 4.7 % |
Leases | 12. LEASES We enter into various contractual arrangements for the right to use facilities, vehicles and equipment. The lease terms generally range from two to ten years for facilities and three to five years for vehicles and equipment. Our lease terms may include the exercise of renewal or termination options when it is reasonably certain these options will be exercised. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Current operating and finance lease liabilities of $17,454 and $4,275, respectively, as of June 30, 2023, and $17,319 and $2,928, respectively, as of September 30, 2022, were included in “Accounts payable and accrued expenses” in the Condensed Consolidated Balance Sheets. Non-current finance lease liabilities and finance lease right-of-use assets were included in the “Other non-current liabilities” and “Other non-current assets”, respectively, in the Condensed Consolidated Balance Sheets. The maturities of our lease liabilities as of June 30, 2023 are as follows: Operating Leases Finance Leases Total Remainder of 2023 $ 4,801 $ 1,106 $ 5,907 2024 16,997 4,395 21,392 2025 13,332 4,163 17,495 2026 9,737 3,297 13,034 2027 6,552 1,557 8,109 Thereafter 8,580 138 8,718 Total undiscounted lease payments $ 59,999 $ 14,656 $ 74,655 Less: imputed interest 6,409 1,484 7,893 Present value of lease liabilities $ 53,590 $ 13,172 $ 66,762 The total future undiscounted cash flows related to lease agreements committed to but not yet commenced as of June 30, 2023 is $14,384. Lease cost recognized in our Condensed Consolidated Statements of Comprehensive Income is summarized as follows: Three Months Ended Nine Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating lease cost $ 4,524 $ 3,947 $ 0 $ 13,857 $ 12,107 Finance lease cost Amortization of lease assets 865 435 2,551 1,039 Interest on lease liabilities 180 71 546 175 Finance lease cost 1,045 506 3,097 1,214 Short-term lease cost 599 321 1,701 1,097 Variable lease cost 812 483 1,886 1,439 Total lease cost $ 6,980 $ 5,257 $ 20,541 $ 15,857 Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is summarized as follows: Three Months Ended Nine Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating cash flows used for operating leases $ 5,856 $ 4,956 $ 17,674 $ 14,307 Operating cash flows used for finance leases 180 71 546 175 Right-of-use assets obtained in exchange for new operating lease liabilities 5,119 2,790 14,310 14,289 Right-of-use assets obtained in exchange for new finance lease liabilities 981 1,686 5,807 4,268 June 30, 2023 September 30, 2022 Weighted-average remaining lease term - operating leases 4.5 years 4.8 years Weighted-average remaining lease term - finance leases 3.6 years 3.9 years Weighted-average discount rate - operating leases 4.6 % 4.0 % Weighted-average discount rate - finance leases 5.9 % 4.7 % |
Business Combinations and Dives
Business Combinations and Divestitures | 9 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 13. BUSINESS COMBINATIONS AND DIVESTITURES We completed no acquisitions during the nine months ended June 30, 2023 or during the year ended September 30, 2022. On October 7, 2022, we sold 100% of the membership interests of STR Mechanical, LLC and its subsidiary Technical Services II, LLC (collectively, “STR”). As a result, we recognized a pre-tax gain of $13,045, which was included in “Gain on sale of assets” within our Condensed Consolidated Statements of Comprehensive Income for the nine months ended June 30, 2023. The disposition of STR, which had operated as part of our Commercial & Industrial segment, will not have a material impact on our ongoing results of operations or financial position. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) attributable to IES Holdings, Inc. | $ 22,546 | $ 9,465 | $ 70,499 | $ 18,517 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Our consolidated revenue for the three and nine months ended June 30, 2023 and 2022 was derived from the following activities. See details in the following tables: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Communications $ 141,615 $ 144,748 $ 429,980 $ 402,776 Residential Single-family 228,637 224,556 666,891 590,453 Multi-family and Other 89,374 77,207 275,310 213,492 Total Residential 318,011 301,763 942,201 803,945 Infrastructure Solutions Industrial Services 11,312 15,317 33,828 45,970 Custom Power Solutions 45,745 24,520 125,129 77,696 Total Infrastructure Solutions 57,057 39,837 158,957 123,666 Commercial & Industrial 67,768 80,953 $ 197,068 219,016 Total Revenue $ 584,451 $ 567,301 $ 1,728,206 $ 1,549,403 Three Months Ended June 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 98,027 $ 318,011 $ 55,409 $ 61,351 $ 532,798 Time-and-material 43,588 — 1,648 6,417 51,653 Total revenue $ 141,615 $ 318,011 $ 57,057 $ 67,768 $ 584,451 Three Months Ended June 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 94,109 $ 301,763 $ 38,126 $ 75,779 $ 509,777 Time-and-material 50,639 — 1,711 5,174 57,524 Total revenue $ 144,748 $ 301,763 $ 39,837 $ 80,953 $ 567,301 Nine Months Ended June 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 277,693 $ 942,201 $ 153,906 $ 178,902 $ 1,552,702 Time-and-material 152,287 — 5,051 18,166 175,504 Total revenue $ 429,980 $ 942,201 $ 158,957 $ 197,068 $ 1,728,206 Nine Months Ended June 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 268,253 $ 803,945 $ 118,503 $ 204,985 $ 1,395,686 Time-and-material 134,523 — 5,163 14,031 153,717 Total revenue $ 402,776 $ 803,945 $ 123,666 $ 219,016 $ 1,549,403 |
Per Share Information (Tables)
Per Share Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following tables reconcile the components of basic and diluted earnings per share for the three and nine months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 2022 Numerator: Net income attributable to IES Holdings, Inc. $ 22,546 $ 9,465 Increase in noncontrolling interest (5,916) (2,534) Net income attributable to restricted stockholders of IES Holdings, Inc. — (5) Net income attributable to common stockholders of IES Holdings, Inc. $ 16,630 $ 6,926 Denominator: Weighted average common shares outstanding — basic 20,181,793 20,718,195 Effect of dilutive stock options and non-vested securities 223,909 221,242 Weighted average common and common equivalent shares outstanding — diluted 20,405,702 20,939,437 Earnings per share attributable to common stockholders of IES Holdings, Inc.: Basic $ 0.82 $ 0.33 Diluted $ 0.81 $ 0.33 Nine Months Ended June 30, 2023 2022 Numerator: Net income attributable to IES Holdings, Inc. $ 70,499 $ 18,517 Increase in noncontrolling interest (11,742) (3,464) Net income attributable to restricted stockholders of IES Holdings, Inc. (9) (10) Net income attributable to common stockholders of IES Holdings, Inc. $ 58,748 $ 15,043 Denominator: Weighted average common shares outstanding — basic 20,198,474 20,730,900 Effect of dilutive stock options and non-vested securities 205,861 544,926 Weighted average common and common equivalent shares outstanding — diluted 20,404,335 21,275,826 Earnings per share attributable to common stockholders of IES Holdings, Inc.: Basic $ 2.91 $ 0.73 Diluted $ 2.88 $ 0.71 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment information for the three and nine months ended June 30, 2023 and 2022 is as follows: Three Months Ended June 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 141,615 $ 318,011 $ 57,057 $ 67,768 $ — $ 584,451 Cost of services 114,440 260,679 42,851 58,872 — 476,842 Gross profit 27,175 57,332 14,206 8,896 — 107,609 Selling, general and administrative 13,680 41,939 7,066 6,284 5,331 74,300 Contingent consideration — 70 — — — 70 Gain on sale of assets (1) (56) (1,010) (13) — (1,080) Operating income (loss) $ 13,496 $ 15,379 $ 8,150 $ 2,625 $ (5,331) $ 34,319 Other data: Depreciation and amortization expense $ 498 $ 4,609 $ 1,300 $ 402 $ 69 $ 6,878 Capital expenditures $ 261 $ 2,461 $ 918 $ 800 $ 169 $ 4,609 Total assets $ 182,117 $ 381,840 $ 179,363 $ 84,101 $ 72,307 $ 899,728 Three Months Ended June 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 144,748 $ 301,763 $ 39,837 $ 80,953 $ — $ 567,301 Cost of services 128,952 248,928 33,726 72,895 — 484,501 Gross profit 15,796 52,835 6,111 8,058 — 82,800 Selling, general and administrative 11,544 37,237 6,484 7,788 4,037 67,090 Contingent consideration — 70 — — — 70 Loss (gain) on sale of assets (1) 6 — (2) — 3 Operating income (loss) $ 4,253 $ 15,522 $ (373) $ 272 $ (4,037) $ 15,637 Other data: Depreciation and amortization expense $ 394 $ 3,863 $ 1,427 $ 645 $ 43 $ 6,372 Capital expenditures $ 424 $ 1,115 $ 3,071 $ 372 $ — $ 4,982 Total assets $ 196,520 $ 376,328 $ 152,405 $ 111,782 $ 47,357 $ 884,392 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and September 30, 2022, are summarized in the following tables by the type of inputs applicable to the fair value measurements: June 30, 2023 Total Fair Value Quoted Prices (Level 1) Significant Unobservable Inputs (Level 3) Executive savings plan assets $ 821 $ 821 $ — Executive savings plan liabilities (694) (694) — Contingent consideration liability (4,429) — (4,429) Total $ (4,302) $ 127 $ (4,429) September 30, 2022 Total Fair Value Quoted Prices (Level 1) Significant Unobservable Inputs (Level 3) Executive savings plan assets $ 706 $ 706 $ — Equity securities 1,937 1,937 — Executive savings plan liabilities (585) (585) — Contingent consideration liability (4,323) — (4,323) Total $ (2,265) $ 2,058 $ (4,323) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents the change in fair value of this obligation, which used significant unobservable inputs (Level 3). Contingent Consideration Agreements Fair value at September 30, 2022 $ (4,323) Net adjustments to fair value (106) Fair value at June 30, 2023 $ (4,429) |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following components: June 30, September 30, 2023 2022 Raw materials $ 14,387 $ 12,504 Work in process 12,010 8,218 Finished goods 2,748 2,129 Parts and supplies 73,449 73,482 Total inventories $ 102,594 $ 96,333 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following summarizes the carrying value of goodwill by segment at June 30, 2023, which was unchanged from September 30, 2022: Communications Residential Infrastructure Solutions Commercial & Industrial Total Goodwill at June 30, 2023 $ 2,816 $ 51,370 $ 38,209 $ — $ 92,395 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consist of the following: Estimated Useful Lives (in Years) June 30, 2023 Gross Carrying Amount Accumulated Amortization Net Trademarks/trade names 5 - 20 $ 14,621 $ (5,417) $ 9,204 Technical library 20 400 (196) 204 Customer relationships 6 - 15 91,426 (40,368) 51,058 Non-competition arrangements 5 40 (39) 1 Backlog and construction contracts 1 4,958 (4,958) — Total intangible assets $ 111,445 $ (50,978) $ 60,467 Estimated Useful Lives (in Years) September 30, 2022 Gross Carrying Amount Accumulated Amortization Net Trademarks/trade names 5 - 20 $ 15,262 $ (4,589) $ 10,673 Technical library 20 400 (181) 219 Customer relationships 6 - 15 96,699 (35,662) 61,037 Non-competition arrangements 5 40 (33) 7 Backlog and construction contracts 1 4,958 (4,958) — Total intangible assets $ 117,359 $ (45,423) $ 71,936 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The maturities of our lease liabilities as of June 30, 2023 are as follows: Operating Leases Finance Leases Total Remainder of 2023 $ 4,801 $ 1,106 $ 5,907 2024 16,997 4,395 21,392 2025 13,332 4,163 17,495 2026 9,737 3,297 13,034 2027 6,552 1,557 8,109 Thereafter 8,580 138 8,718 Total undiscounted lease payments $ 59,999 $ 14,656 $ 74,655 Less: imputed interest 6,409 1,484 7,893 Present value of lease liabilities $ 53,590 $ 13,172 $ 66,762 |
Lease, Cost | Lease cost recognized in our Condensed Consolidated Statements of Comprehensive Income is summarized as follows: Three Months Ended Nine Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating lease cost $ 4,524 $ 3,947 $ 0 $ 13,857 $ 12,107 Finance lease cost Amortization of lease assets 865 435 2,551 1,039 Interest on lease liabilities 180 71 546 175 Finance lease cost 1,045 506 3,097 1,214 Short-term lease cost 599 321 1,701 1,097 Variable lease cost 812 483 1,886 1,439 Total lease cost $ 6,980 $ 5,257 $ 20,541 $ 15,857 |
Schedule of Cash Flow, Supplemental Disclosures | Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is summarized as follows: Three Months Ended Nine Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating cash flows used for operating leases $ 5,856 $ 4,956 $ 17,674 $ 14,307 Operating cash flows used for finance leases 180 71 546 175 Right-of-use assets obtained in exchange for new operating lease liabilities 5,119 2,790 14,310 14,289 Right-of-use assets obtained in exchange for new finance lease liabilities 981 1,686 5,807 4,268 June 30, 2023 September 30, 2022 Weighted-average remaining lease term - operating leases 4.5 years 4.8 years Weighted-average remaining lease term - finance leases 3.6 years 3.9 years Weighted-average discount rate - operating leases 4.6 % 4.0 % Weighted-average discount rate - finance leases 5.9 % 4.7 % |
Business (Details)
Business (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Accounting Policies [Abstract] | |
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 44,507 |
Controlling Shareholder (Detail
Controlling Shareholder (Details) - USD ($) $ in Thousands | Dec. 01, 2022 | Nov. 30, 2022 | Jun. 30, 2023 |
Risks and Uncertainties [Abstract] | |||
ControllingShareholderOwnershipPercentage | 58% | ||
Related Party Transaction, Purchases from Related Party | $ 9 | $ 8 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||||
Unbilled Receivables, Current | $ 9,753 | $ 9,753 | |||
Costs and estimated earnings in excess of billings | 44,469 | 44,469 | $ 52,076 | ||
Billings in excess of costs and estimated earnings | (109,119) | (109,119) | $ (84,936) | ||
Contract with Customer, Liability, Revenue Recognized | 78,263 | $ 46,703 | |||
Performance Obligation Next 12 Months | 856,542 | 856,542 | |||
Revenue, Remaining Performance Obligation, Amount | 1,071,605 | 1,071,605 | |||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 584,451 | $ 567,301 | 1,728,206 | 1,549,403 | |
Contract with Customer, Liability, Revenue Recognized | 78,263 | 46,703 | |||
Commercial and Industrial [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 67,768 | 80,953 | 197,068 | 219,016 | |
Communications [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 141,615 | 144,748 | 429,980 | 402,776 | |
Infrastructure Solutions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 57,057 | 39,837 | 158,957 | 123,666 | |
Residential [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 318,011 | 301,763 | 942,201 | 803,945 | |
Fixed-price Contract [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 532,798 | 509,777 | 1,552,702 | 1,395,686 | |
Fixed-price Contract [Member] | Commercial and Industrial [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 61,351 | 75,779 | 178,902 | 204,985 | |
Fixed-price Contract [Member] | Communications [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 98,027 | 94,109 | 277,693 | 268,253 | |
Fixed-price Contract [Member] | Infrastructure Solutions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 55,409 | 38,126 | 153,906 | 118,503 | |
Fixed-price Contract [Member] | Residential [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 318,011 | 301,763 | 942,201 | 803,945 | |
Time-and-materials Contract [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 51,653 | 57,524 | 175,504 | 153,717 | |
Time-and-materials Contract [Member] | Commercial and Industrial [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 6,417 | 5,174 | 18,166 | 14,031 | |
Time-and-materials Contract [Member] | Communications [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 43,588 | 50,639 | 152,287 | 134,523 | |
Time-and-materials Contract [Member] | Infrastructure Solutions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,648 | 1,711 | 5,051 | 5,163 | |
Time-and-materials Contract [Member] | Residential [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
industrial Services [Member] | Infrastructure Solutions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 11,312 | 15,317 | 33,828 | 45,970 | |
Custom Power Solutions [Member] | Infrastructure Solutions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 45,745 | 24,520 | 125,129 | 77,696 | |
Single Family Contracts [Member] | Residential [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 228,637 | 224,556 | 666,891 | 590,453 | |
Multi Family and Other [Member] | Residential [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 89,374 | $ 77,207 | $ 275,310 | $ 213,492 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Debt Disclosure [Abstract] | ||
Long-term debt | $ 0 | $ 81,628 |
Letters of Credit Outstanding, Amount | 4,166 | |
Line of Credit Facility, Remaining Borrowing Capacity | 143,396 | |
Loans Payable to Bank, Noncurrent | 0 | $ 82,659 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000 |
Per Share Information (Details)
Per Share Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Undistributed Earnings (Loss) Available to Common Shareholders, Basic | $ 16,630 | $ 6,926 | $ 58,748 | $ 15,043 |
Noncontrolling Interest, Change in Redemption Value | (5,916) | (2,534) | (11,742) | (3,464) |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 0 | (5) | (9) | (10) |
Net income (loss) attributable to IES Holdings, Inc. | $ 22,546 | $ 9,465 | $ 70,499 | $ 18,517 |
Weighted Average Number of Shares Outstanding, Basic | 20,181,793 | 20,718,195 | 20,198,474 | 20,730,900 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 223,909 | 221,242 | 205,861 | 544,926 |
Weighted Average Number of Shares Outstanding, Diluted | 20,405,702 | 20,939,437 | 20,404,335 | 21,275,826 |
Earnings Per Share, Basic | $ 0.82 | $ 0.33 | $ 2.91 | $ 0.73 |
Earnings Per Share, Diluted | $ 0.81 | $ 0.33 | $ 2.88 | $ 0.71 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Cost of services | $ 476,842 | $ 484,501 | $ 1,424,233 | $ 1,328,369 | |
Gross profit | 107,609 | 82,800 | 303,973 | 221,034 | |
Selling, general and administrative expenses | 74,300 | 67,090 | 211,417 | 189,922 | |
Contingent consideration | 70 | 70 | 208 | 208 | |
Loss (gain) on sale of assets | (1,080) | 3 | (14,242) | (70) | |
Operating income (loss) | 34,319 | 15,637 | 106,590 | 30,974 | |
Depreciation and amortization expense | 6,878 | 6,372 | 20,130 | 18,742 | |
Capital expenditures | 4,609 | 4,982 | 11,286 | 26,609 | |
Total assets | 899,728 | 884,392 | 899,728 | 884,392 | $ 934,709 |
Revenues | 584,451 | 567,301 | 1,728,206 | 1,549,403 | |
Commercial and Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of services | 58,872 | 72,895 | 177,821 | 207,307 | |
Gross profit | 8,896 | 8,058 | 19,247 | 11,709 | |
Selling, general and administrative expenses | 6,284 | 7,788 | 18,373 | 23,504 | |
Loss (gain) on sale of assets | (13) | (2) | (13,147) | (42) | |
Operating income (loss) | 2,625 | 272 | 14,021 | (11,753) | |
Depreciation and amortization expense | 402 | 645 | 1,206 | 1,922 | |
Capital expenditures | 800 | 372 | 2,069 | 1,457 | |
Total assets | 84,101 | 111,782 | 84,101 | 111,782 | |
Revenues | 67,768 | 80,953 | 197,068 | 219,016 | |
Communications [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of services | 114,440 | 128,952 | 355,904 | 355,360 | |
Gross profit | 27,175 | 15,796 | 74,076 | 47,416 | |
Selling, general and administrative expenses | 13,680 | 11,544 | 39,363 | 33,907 | |
Loss (gain) on sale of assets | (1) | (1) | (4) | (14) | |
Operating income (loss) | 13,496 | 4,253 | 34,717 | 13,523 | |
Depreciation and amortization expense | 498 | 394 | 1,430 | 1,115 | |
Capital expenditures | 261 | 424 | 1,383 | 1,768 | |
Total assets | 182,117 | 196,520 | 182,117 | 196,520 | |
Revenues | 141,615 | 144,748 | 429,980 | 402,776 | |
Infrastructure Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of services | 42,851 | 33,726 | 120,089 | 102,774 | |
Gross profit | 14,206 | 6,111 | 38,868 | 20,892 | |
Selling, general and administrative expenses | 7,066 | 6,484 | 18,817 | 18,933 | |
Contingent consideration | 0 | ||||
Loss (gain) on sale of assets | (1,010) | 0 | (1,029) | (28) | |
Operating income (loss) | 8,150 | (373) | 21,080 | 1,987 | |
Depreciation and amortization expense | 1,300 | 1,427 | 3,980 | 4,155 | |
Capital expenditures | 918 | 3,071 | 2,117 | 14,210 | |
Total assets | 179,363 | 152,405 | 179,363 | 152,405 | |
Revenues | 57,057 | 39,837 | 158,957 | 123,666 | |
Residential [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of services | 260,679 | 248,928 | 770,419 | 662,928 | |
Gross profit | 57,332 | 52,835 | 171,782 | 141,017 | |
Selling, general and administrative expenses | 41,939 | 37,237 | 118,989 | 101,808 | |
Contingent consideration | 70 | 70 | 208 | 208 | |
Loss (gain) on sale of assets | (56) | 6 | (62) | 14 | |
Operating income (loss) | 15,379 | 15,522 | 52,647 | 38,987 | |
Depreciation and amortization expense | 4,609 | 3,863 | 13,310 | 11,436 | |
Capital expenditures | 2,461 | 1,115 | 5,548 | 9,006 | |
Total assets | 381,840 | 376,328 | 381,840 | 376,328 | |
Revenues | 318,011 | 301,763 | 942,201 | 803,945 | |
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of services | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 5,331 | 4,037 | 15,875 | 11,770 | |
Contingent consideration | 0 | ||||
Loss (gain) on sale of assets | 0 | 0 | 0 | 0 | |
Operating income (loss) | (5,331) | (4,037) | (15,875) | (11,770) | |
Depreciation and amortization expense | 69 | 43 | 204 | 114 | |
Capital expenditures | 169 | 0 | 169 | 168 | |
Total assets | 72,307 | 47,357 | 72,307 | 47,357 | |
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 01, 2022 | Sep. 30, 2022 | May 02, 2019 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 40 | $ 29.94 | $ 31.06 | $ 34.01 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 31,095 | 45,198 | ||||||
Stock Repurchase Program, Authorized Amount | $ 40,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 618,222 | 618,222 | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,000,000 | 1,500,000 | ||||||
Treasury Stock Acquired, Average Cost Per Share | $ 40 | $ 29.94 | $ 31.06 | $ 34.01 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 31,095 | 45,198 | ||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | $ 0 | $ 36 | $ 25 | $ 107 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 266 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 13,373 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0 | 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 266 | |||||||
Phantom Share Units (PSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | $ 99 | 96 | $ 289 | $ 289 | ||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 83,540 | |||||||
us-gaap_PhantomShareUnitsPSUsMember_Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | $ 1,200 | $ 866 | $ 2,941 | $ 2,498 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 130,739 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 12,987 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 103,053 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 330,660 | 330,660 | ||||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 103,053 | 73,627 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 12,987 | |||||||
Share-Based Payment Arrangement, Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 2,000 | |||||||
Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 3,000,000 | 3,000,000 | ||||||
Repurchase Agreements [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Treasury Stock, Shares, Acquired | 234 | 185,887 | 224,013 | 244,889 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 821 | $ 706 |
Investments, Fair Value Disclosure | 1,937 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (694) | (585) |
Business Combination, Contingent Consideration, Liability, Noncurrent | (4,429) | (4,323) |
Fair Value, Net Asset (Liability) | (4,302) | (2,265) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (106) | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 821 | 706 |
Investments, Fair Value Disclosure | 1,937 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (694) | (585) |
Fair Value, Net Asset (Liability) | 127 | 2,058 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Noncurrent | (4,429) | (4,323) |
Fair Value, Net Asset (Liability) | $ (4,429) | $ (4,323) |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory, Raw Materials, Gross | $ 14,387 | $ 12,504 |
Inventory, Work in Process, Gross | 12,010 | 8,218 |
Inventory, Finished Goods, Gross | 2,748 | 2,129 |
Other Inventory, Gross | 73,449 | 73,482 |
Inventory, Net | $ 102,594 | $ 96,333 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Goodwill (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Goodwill [Line Items] | |
Goodwill | $ 92,395 |
Goodwill | 92,395 |
Commercial and Industrial [Member] | |
Goodwill [Line Items] | |
Goodwill | 0 |
Goodwill | 0 |
Residential [Member] | |
Goodwill [Line Items] | |
Goodwill | 51,370 |
Goodwill | 51,370 |
Infrastructure Solutions [Member] | |
Goodwill [Line Items] | |
Goodwill | 38,209 |
Goodwill | 38,209 |
Communications [Member] | |
Goodwill [Line Items] | |
Goodwill | 2,816 |
Goodwill | $ 2,816 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 111,445 | $ 117,359 |
Finite-Lived Intangible Assets, Accumulated Amortization | (50,978) | (45,423) |
Intangible Assets, Net (Excluding Goodwill) | 60,467 | 71,936 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 14,621 | 15,262 |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,417) | (4,589) |
Intangible Assets, Net (Excluding Goodwill) | $ 9,204 | $ 10,673 |
Trademarks and Trade Names [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
Trademarks and Trade Names [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years |
Technical Library | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years |
Finite-Lived Intangible Assets, Gross | $ 400 | $ 400 |
Finite-Lived Intangible Assets, Accumulated Amortization | (196) | (181) |
Intangible Assets, Net (Excluding Goodwill) | 204 | 219 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 91,426 | 96,699 |
Finite-Lived Intangible Assets, Accumulated Amortization | (40,368) | (35,662) |
Intangible Assets, Net (Excluding Goodwill) | $ 51,058 | $ 61,037 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
Finite-Lived Intangible Assets, Gross | $ 40 | $ 40 |
Finite-Lived Intangible Assets, Accumulated Amortization | (39) | (33) |
Intangible Assets, Net (Excluding Goodwill) | $ 1 | $ 7 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | 1 year |
Finite-Lived Intangible Assets, Gross | $ 4,958 | $ 4,958 |
Finite-Lived Intangible Assets, Accumulated Amortization | (4,958) | (4,958) |
Intangible Assets, Net (Excluding Goodwill) | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Trade accounts receivable | $ 3,095 | |
Accrued Insurance, Current | $ 8,009 | 7,693 |
Loss Contingencies [Line Items] | ||
Letters of Credit Outstanding, Amount | 4,166 | |
Trade accounts receivable | 3,095 | |
Contracts Receivable, Claims and Uncertain Amounts | 10,451 | |
Proceeds from Sale and Collection of Receivables | 5,619 | |
Revenue, Remaining Performance Obligation, Amount | 1,071,605 | |
Estimated cost of completion of bonded projects | 170,440 | |
Loss Contingency, Receivable | 1,300 | |
Estimated cost of completion of bonded projects | 170,440 | |
Purchase Commitment, Remaining Minimum Amount Committed | 0 | |
Insurance Related [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 4,166 | $ 3,878 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Leases [Abstract] | |||||
Operating Lease, Liability, Current | $ 17,454 | $ 17,454 | $ 17,319 | ||
Finance Lease, Liability, Current | 4,275 | 4,275 | $ 2,928 | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 4,801 | 4,801 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 16,997 | 16,997 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 13,332 | 13,332 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 9,737 | 9,737 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 6,552 | 6,552 | |||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 8,580 | 8,580 | |||
Lessee, Operating Lease, Liability, Payments, Due | 59,999 | 59,999 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 6,409 | 6,409 | |||
Operating Lease, Liability | 53,590 | 53,590 | |||
Finance Lease, Liability, Payments, Due Next Twelve Months | 1,106 | 1,106 | |||
Finance Lease, Liability, Payments, Due Year Two | 4,395 | 4,395 | |||
Finance Lease, Liability, Payments, Due Year Three | 4,163 | 4,163 | |||
Finance Lease, Liability, Payments, Due Year Four | 3,297 | 3,297 | |||
Finance Lease, Liability, Payments, Due Year Five | 1,557 | 1,557 | |||
Finance Lease, Liability, Payments, Due after Year Five | 138 | 138 | |||
Finance Lease, Liability, Payment, Due | 14,656 | 14,656 | |||
Finance Lease, Liability, Undiscounted Excess Amount | 1,484 | 1,484 | |||
Finance Lease, Liability | 13,172 | 13,172 | |||
Lessee, Total Lease, Liability, Payments, Remainder of Fiscal Year [Line Items] | 5,907 | 5,907 | |||
Total Lease, Liability, Payments, Year Two | 21,392 | 21,392 | |||
Total Lease, Liability, Payments, Year Three | 17,495 | 17,495 | |||
Total Lease, Liability, Payments, Year Four | 13,034 | 13,034 | |||
Total Lease, Liability, Payments, Year Five | 8,109 | 8,109 | |||
Total Lease, Liability, Payments, Due After Year Five | 8,718 | 8,718 | |||
Total Lease, Liability, Payments Due | 74,655 | 74,655 | |||
Total Lease, Liability, Undiscounted Excess Amount | 7,893 | 7,893 | |||
Total Lease, Liability | 66,762 | 66,762 | |||
Lessee, Operating Lease, Lease Not yet Commenced, Description | 14,384 | 14,384 | |||
Operating Lease, Cost | 4,524 | $ 3,947 | 13,857 | $ 12,107 | |
Finance Lease, Right-of-Use Asset, Amortization | 865 | 435 | 2,551 | 1,039 | |
Finance Lease, Interest Expense | 180 | 71 | 546 | 175 | |
Finance Lease, Cost | 1,045 | 506 | 3,097 | 1,214 | |
Short-term Lease, Cost | 599 | 321 | 1,701 | 1,097 | |
Variable Lease, Cost | 812 | 483 | 1,886 | 1,439 | |
Lease, Cost | 6,980 | 5,257 | 20,541 | 15,857 | |
Operating Lease, Payments | 5,856 | 4,956 | 17,674 | 14,307 | |
Finance Lease, Interest Payment on Liability | 180 | 71 | 546 | 175 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 5,119 | 2,790 | 14,310 | 14,289 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 981 | $ 1,686 | $ 5,807 | $ 4,268 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 6 months | 4 years 6 months | 4 years 9 months 18 days | ||
Finance Lease, Weighted Average Remaining Lease Term | 3 years 7 months 6 days | 3 years 7 months 6 days | 3 years 10 months 24 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.60% | 4.60% | 4% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 5.90% | 5.90% | 4.70% |
Business Combinations and Div_2
Business Combinations and Divestitures (Details) $ in Thousands | 9 Months Ended | ||
Oct. 07, 2022 | Jun. 30, 2023 USD ($) business | Jun. 30, 2022 business | |
Business Combinations [Abstract] | |||
Number of Businesses Acquired | business | 0 | 0 | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ | $ 13,045 | ||
Sale of Stock, Percentage of Ownership before Transaction | 100% |