IES Holdings(IESC) - 2024 Q2 - Quarterly Report

Financial Performance - Consolidated revenues for the three months ended March 31, 2024, were $705.7 million, an increase of 24.1% compared to $568.9 million for the same period in 2023[111] - Gross profit for the three months ended March 31, 2024, increased to $171.6 million, representing a gross profit margin of 24.3%, up from 17.7% in the same period of 2023[112] - Net income attributable to IES Holdings, Inc. for the three months ended March 31, 2024, was $52.9 million, compared to $21.6 million for the same period in 2023, reflecting a net income margin increase from 3.8% to 7.5%[111] - Consolidated revenues for the six months ended March 31, 2024, were $1.34 billion, an increase of 17.2% compared to $1.14 billion for the same period in 2023[116] - Net income for the six months ended March 31, 2024, was $100.4 million, compared to $52.9 million for the same period in 2023, with a net income margin increase from 4.6% to 7.5%[116] - The overall gross profit percentage for the six months ended March 31, 2024, increased to 23.5%, compared to 17.2% for the same period in 2023[117] Segment Performance - Revenues for the Communications segment increased by $52.4 million, or 37.1%, during the three months ended March 31, 2024, driven by higher demand from data center customers[120] - Gross profit for the Communications segment for the three months ended March 31, 2024, was $38.9 million, with a gross profit margin of 20.1%, up from 17.8% in the same period of 2023[121] - The Residential segment's revenues increased by $33.3 million, or 10.9%, during the three months ended March 31, 2024, driven by strong demand in the single-family business and expansion of plumbing and HVAC offerings[127] - Gross profit in the Residential segment increased by $33.8 million, or 61.7%, for the three months ended March 31, 2024, with gross profit margin rising to 26.1%[128] - Revenues in the Infrastructure Solutions segment increased by $23.2 million, or 44.0%, during the three months ended March 31, 2024, primarily due to strong demand in custom power solutions[134] - Gross profit in the Infrastructure Solutions segment increased by $9.6 million, with gross profit margin improving from 27.0% to 31.3% for the three months ended March 31, 2024[135] - Revenues in the Commercial & Industrial segment increased by $28.0 million, or 40.6%, during the three months ended March 31, 2024, attributed to a large data center project[140] - Gross profit in the Commercial & Industrial segment increased by $13.5 million, with gross profit margin rising from 9.8% to 20.9% for the three months ended March 31, 2024[141] Expenses - Selling, general and administrative expenses for the three months ended March 31, 2024, were $95.3 million, a 37.4% increase from $69.3 million in the same period of 2023[114] - Selling, general and administrative expenses for the six months ended March 31, 2024, were $181.1 million, a 32.1% increase from $137.1 million in the same period of 2023[118] - The Communications segment's selling, general and administrative expenses increased by $6.2 million, or 24.2%, for the six months ended March 31, 2024, compared to the same period in 2023, with expenses as a percentage of revenues at 8.8%[126] - Selling, general and administrative expenses in the Residential segment rose by $17.3 million, or 45.4%, during the three months ended March 31, 2024, with expenses as a percentage of revenue increasing to 16.3%[129] - Selling, general and administrative expenses in the Commercial & Industrial segment increased by $2.3 million, or 36.0%, during the three months ended March 31, 2024, with expenses as a percentage of revenue decreasing to 9.0%[142] Cash Flow and Liquidity - Net cash provided by operating activities for the six months ended March 31, 2024, was $58.7 million, a decrease from $60.1 million in the same period of 2023[172] - Net cash used in investing activities was $11.4 million for the six months ended March 31, 2024, compared to $12.3 million provided in the same period of 2023[173] - Net cash used in financing activities for the six months ended March 31, 2024, was $17.1 million, a decrease from $82.1 million in the same period of 2023[174] - As of March 31, 2024, the company's liquidity was $249.5 million, with excess availability of $143.5 million, representing over 50% of minimum liquidity[168] - The company had no outstanding borrowings under its revolving credit facility as of March 31, 2024[170] Liabilities and Obligations - Total current liabilities increased by $33.7 million to $434.2 million, driven by a $24.0 million increase in billings in excess of costs[162] - Remaining performance obligations as of March 31, 2024, were $1,065.4 million, compared to $1,072.6 million as of December 31, 2023[158] - Backlog as of March 31, 2024, was $1,362.9 million, down from $1,452.1 million as of December 31, 2023[158] - Income tax expense for the six months ended March 31, 2024, was $34.8 million, compared to $18.2 million for the same period in 2023[153] Investments and Capital Expenditures - The company incurred unrealized losses on investments in trading securities of $1.9 million for the six months ended March 31, 2024[151] - Capital expenditures for the fiscal year ending September 30, 2024, are expected to range from $35 million to $45 million, significantly higher than $17.7 million for the fiscal year ended September 30, 2023[178] Other Financial Metrics - Interest expense for the six months ended March 31, 2024, decreased to $0.8 million from $2.2 million in the same period of 2023[150] - The fixed charge coverage ratio was reported at 7.9:1.0 as of March 31, 2024[168] Risk Factors - The company is exposed to fluctuations in commodity prices, including copper and aluminum, which may impact operational results[181] - The company does not currently maintain any hedging contracts to limit exposure to variable interest rates on outstanding borrowings[182]