HOUSTON, Feb. 05, 2021 (GLOBE NEWSWIRE) — IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today announced financial results for the quarter ended December 31, 2020. First Quarter 2021 Highlights Revenue of $315 million for the first quarter of fiscal 2021, an increase of 14% compared with $276 million for the same quarter of fiscal 2020 Operating income of $15.9 million for the first quarter of fiscal 2021, an increase of 28% compared with $12.4 million for the same quarter of fiscal 2020 Net income attributable to IES increased 42% to $12.1 million, or $0.58 per diluted share, for the first quarter of fiscal 2021, compared with $8.5 million, or $0.39 per diluted share, for the same quarter of fiscal 2020 Adjusted net income attributable to IES (a non-GAAP financial measure, as defined below) increased 31% to $14.8 million, or $0.71 per diluted share, for the first quarter of fiscal 2021, compared with $11.3 million, or $0.54 per diluted share, for the same quarter of fiscal 2020 Remaining performance obligations, a GAAP measure of future revenue to be recognized from current contracts with customers, of approximately $525 million as of December 31, 2020 Backlog (a non-GAAP financial measure, as defined below) of approximately $632 million as of December 31, 2020 Overview of Results “Despite the ongoing challenges presented by the COVID-19 pandemic, we are pleased with our overall results for the first quarter of fiscal 2021, as demand for our services remained strong,” said Jeffrey Gendell, Chairman and Chief Executive Officer. “Entering the new fiscal year, our top priorities remain the safety and health of our employees and serving the needs of our customers in what continues to be a challenging environment. While the pandemic continues to add uncertainty to our operations, we believe we are well positioned to meet these challenges and continue to grow the business. “Consolidated revenue for the first quarter of fiscal 2021 increased 14% over the prior year, led by significant growth in our Communications and Residential businesses, as well as the acquisition of businesses in our Residential and Infrastructure Solutions segments. Excluding the contribution of businesses acquired subsequent to the first quarter of fiscal 2020, our revenue increased 7% for the first quarter of fiscal 2021. Operating income for the first quarter of fiscal 2021 increased 28% over the prior year, despite the impact of rapidly escalating copper and other commodity prices, as well as higher prices for certain electrical component products used in our business.” For the first quarter of fiscal 2021, the Communications segment reported revenue of $98.4 million, a 17% increase from the first quarter of fiscal 2020, driven primarily by increased demand from data center and distribution center customers, while operating income increased 31% to $9.2 million. Reflecting strong demand in the single-family housing market, as well as the contribution of businesses acquired subsequent to the first quarter of fiscal 2020, the Residential segment’s revenue was $119.5 million in the first quarter of fiscal 2021, an increase of 29% compared with the first quarter of fiscal 2020. The Residential segment’s operating income was $6.2 million for the first quarter of fiscal 2021, a decrease of 3% compared to the first quarter of fiscal 2020, as higher commodity and component prices offset the benefits of increased revenue. Revenue in the Infrastructure Solutions segment increased 10% to $34.4 million in the first quarter of fiscal 2021 compared to the first quarter of fiscal 2020, reflecting the impact of businesses acquired subsequent to the first quarter of fiscal 2020. The segment’s operating income increased 63% to $5.3 million compared to the first quarter of fiscal 2020, primarily as a result of improved margins in our custom power solutions business and the impact of businesses acquired subsequent to the first quarter of fiscal 2020. The Commercial & Industrial segment reported revenue of $62.6 million for the first quarter of fiscal 2021, a decline of 8% compared to the first quarter of fiscal 2020. The segment reported an operating loss of $0.7 million for the first quarter of fiscal 2021, compared with a loss of $0.5 million for the first quarter of fiscal 2020. Although the business has adjusted its cost structure in response to a highly competitive market, it continues to experience inefficiencies on certain projects and be affected by the ongoing COVID-19 pandemic, which resulted in delays in awarding new projects and decreased demand for new construction in certain sectors we serve. Tracy McLauchlin, Chief Financial Officer, added, “We generated $20 million of operating cash flow during the first quarter of fiscal 2021 and ended the quarter with a cash balance, net of outstanding debt, of $13 million, after investing an aggregate of $55 million in the three previously announced acquisitions completed during the quarter, K.E.P. Electric, Inc., Wedlake Fabricating, Inc. and Bayonet Plumbing, Heating and Air-Conditioning, LLC. We believe that our strong balance sheet provides us with a solid financial foundation to navigate through this uncertain environment and leaves us well positioned to execute our growth strategy in fiscal 2021.” Stock Buyback PlanIn 2015, the Company’s Board of Directors authorized and announced a stock repurchase program for purchasing up to 1.5 million shares of our common stock from time to time, and on May 2, 2019, authorized the repurchase of up to an additional 1.0 million shares. During the quarter ended December 31, 2020, the Company did not repurchase any shares under this program. The Company had 993,825 shares remaining under its stock repurchase authorization at December 31, 2020. Non-GAAP Financial Measures and Other AdjustmentsThis press release includes adjusted net income attributable to IES, adjusted earnings per share attributable to IES, and backlog, and, in the non-GAAP reconciliation tables included herein, adjusted EBITDA and adjusted net income before taxes, each of which is a financial measure not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Management believes that these measures provide useful information to our investors by, in the case of adjusted net income attributable to IES, adjusted earnings per share attributable to IES, adjusted EBITDA and adjusted net income before taxes, distinguishing certain nonrecurring events such as litigation settlements or significant expenses associated with leadership changes, or noncash events, such as impairment charges or our valuation allowances release and write-down of our deferred tax assets, or, in the case of backlog, providing a common measurement used in IES’s industry, as described further below, and that these measures, when reconciled to the most directly comparable GAAP measures, help our investors to better identify underlying trends in the operations of our business and facilitate easier comparisons of our financial performance with prior and future periods and to our peers. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial tables included in this press release. Remaining performance obligations represent the unrecognized revenue value of our contract commitments. While backlog is not a defined term under GAAP, it is a common measurement used in IES’s industry and IES believes this non-GAAP measure enables it to more effectively forecast its future results and better identify future operating trends that may not otherwise be apparent. IES’s remaining performance obligations are a component of IES’s backlog calculation, which also includes signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. IES’s methodology for determining backlog may not be comparable to the methodologies used by other companies. For further details on the Company’s financial results, please refer to the Company’s quarterly report on Form 10-Q for the fiscal quarter ended December 31, 2020, to be filed with the Securities and Exchange Commission (“SEC”) by February 5, 2021, and any amendments thereto. About IES Holdings, Inc.IES is a holding company that owns and manages operating subsidiaries that design and install integrated electrical and technology systems and provide infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our more than 5,000 employees serve clients in the United States. For more information about IES, please visit www.ies-co.com. Certain statements in this release may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company’s actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to, the impact of the COVID-19 outbreak or future epidemics on our business, including the potential for job site closures or work stoppages, supply chain disruptions, construction delays, reduced demand for our services, or our ability to collect from our customers; the ability of our controlling shareholder to take action not aligned with other shareholders; the possibility that certain tax benefits of our net operating losses may be restricted or reduced in a change in ownership or a change in the federal tax rate; the potential recognition of valuation allowances or write-downs on deferred tax assets; the inability to carry out plans and strategies as expected, including our inability to identify and complete acquisitions that meet our investment criteria in furtherance of our corporate strategy, or the subsequent underperformance of those acquisitions; competition in the industries in which we operate, both from third parties and former employees, which could result in the loss of one or more customers or lead to lower margins on new projects; fluctuations in operating activity due to downturns in levels of construction or the housing market, seasonality and differing regional economic conditions; and our ability to successfully manage projects, as well as other risk factors discussed in this document, in the Company’s annual report on Form 10-K for the year ended September 30, 2020 and in the Company’s other reports on file with the SEC. You should understand that such risk factors could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. The Company undertakes no obligation to publicly update or revise any information, including information concerning its controlling shareholder, net operating losses, borrowing availability, or cash position, or any forward-looking statements to reflect events or circumstances that may arise after the date of this release. Forward-looking statements are provided in this press release pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of the estimates, assumptions, uncertainties, and risks described herein. General information about IES Holdings, Inc. can be found at http://www.ies-co.com under “Investor Relations.” The Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, as well as any amendments to those reports, are available free of charge through the Company’s website as soon as reasonably practicable after they are filed with, or furnished to, the SEC. IES HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)(UNAUDITED) Three Months Ended December 31, 2020 2019Revenues$314.8 $276.0 Cost of services 256.2 225.8 Gross profit 58.7 50.2 Selling, general and administrative expenses 42.8 37.9 Operating income 15.9 12.4 Interest expense 0.2 0.2 Other (income) expense, net (0.1) 0.1 Income from operations before income taxes 15.8 12.0 Provision for income taxes 3.6 3.5 Net income 12.2 8.5 Net income attributable to noncontrolling interest (0.1) — Net income attributable to IES Holdings, Inc.$12.1 $8.5 Earnings per share attributable to IES Holdings, Inc.: Basic$0.58 $0.40 Diluted$0.58 $0.39 Shares used in the computation of earnings per share: Basic (in thousands) 20,735 20,883 Diluted (in thousands) 21,061 21,148 IES HOLDINGS, INC. AND SUBSIDIARIESNON-GAAP RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLETO IES HOLDINGS, INC. AND ADJUSTED EARNINGS PER SHAREATTRIBUTABLE TO IES HOLDINGS, INC.(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)(UNAUDITED) Three Months Ended December 31, 2020 2019Net income attributable to IES Holdings, Inc.$12.1 $8.5 Provision for income taxes 3.6 3.5 Adjusted net income before taxes 15.7 12.0 Current tax expense (1) (0.9) (0.7) Adjusted net income attributable to IES Holdings, Inc.$14.8 $11.3 Adjusted earnings per share attributable to IES Holdings, Inc.: Basic$0.72 $0.54 Diluted$0.71 $0.54 Shares used in the computation of earnings per share: Basic (in thousands) 20,735 20,883 Diluted (in thousands) 21,061 21,148 (1) Represents the tax expense for the current period which will be paid in cash and not offset by the utilization of deferred tax assets IES HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(DOLLARS IN MILLIONS)(UNAUDITED) December 31, September 30, 2020 2020ASSETS CURRENT ASSETS: Cash and cash equivalents$27.3 $53.6 Restricted cash 4.8 — Accounts receivable: Trade, net of allowance 214.9 213.0 Retainage 41.8 40.9 Inventories 33.3 24.9 Costs and estimated earnings in excess of billings 23.8 29.9 Prepaid expenses and other current assets 12.9 9.2 Total current assets 358.9 371.5 Property and equipment, net 29.2 24.6 Goodwill 86.4 53.8 Intangible assets, net 62.8 39.4 Deferred tax assets 29.8 33.8 Operating right of use assets 36.6 31.8 Other non-current assets 5.7 5.8 Total assets$609.4 $560.5 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses$184.3 $186.7 Billings in excess of costs and estimated earnings 64.7 55.7 Total current liabilities 249.0 242.4 Long-term debt 14.5 0.2 Operating long-term lease liabilities 23.9 20.5 Other non-current liabilities 13.9 12.2 Total liabilities 301.3 275.4 Noncontrolling interest 12.6 1.8 STOCKHOLDERS’ EQUITY: Preferred stock — — Common stock 0.2 0.2 Treasury stock, at cost (25.0) (24.5) Additional paid-in capital 201.2 200.6 Retained earnings 119.0 107.0 Total stockholders’ equity 295.5 283.3 Total liabilities and stockholders’ equity$609.4 $560.5 IES HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(DOLLARS IN MILLIONS)(UNAUDITED) Three Months Ended December 31, 2020 2019CASH FLOWS FROM OPERATING ACTIVITIES: Net income$12.2 $8.5 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense (0.2) — Deferred financing cost amortization — 0.1 Depreciation and amortization 4.0 2.4 Non-cash compensation expense 0.8 0.9 Deferred income taxes 2.8 2.8 Changes in operating assets and liabilities: Accounts receivable 6.0 16.7 Inventories (4.3) 1.7 Costs and estimated earnings in excess of billings 6.1 1.9 Prepaid expenses and other current assets (2.5) (6.3) Other non-current assets (0.3) 0.1 Accounts payable and accrued expenses (14.8) (22.8) Billings in excess of costs and estimated earnings 9.0 5.0 Other non-current liabilities 1.3 — Net cash provided by operating activities 20.3 11.0 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (1.2) (1.4) Cash paid in conjunction with business combinations (54.8) — Net cash used in investing activities (55.9) (1.3) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of debt 25.1 104.2 Repayments of debt (10.1) (104.2) Cash paid for finance leases (0.1) — Distribution to noncontrolling interest — (0.5) Purchase of treasury stock (0.7) (0.9) Net cash provided by (used in) financing activities 14.2 (1.3) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (21.5) 8.4 CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of period 53.6 18.9 CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period$32.1 $27.3 IES HOLDINGS, INC. AND SUBSIDIARIESOPERATING SEGMENT STATEMENT OF OPERATIONS(DOLLARS IN MILLIONS)(UNAUDITED) Three Months Ended December 31, 2020 2019Revenues Communications$98.4 $84.3 Residential 119.5 92.7 Infrastructure Solutions 34.4 31.3 Commercial & Industrial 62.6 67.7 Total revenue$314.8 $276.0 Operating income (loss) Communications$9.2 $7.0 Residential 6.2 6.4 Infrastructure Solutions 5.3 3.3 Commercial & Industrial (0.7) (0.5) Corporate (4.1) (3.8) Total operating income$15.9 $12.4 IES HOLDINGS, INC. AND SUBSIDIARIESNON-GAAP RECONCILIATION OF ADJUSTED EBITDA(DOLLARS IN MILLIONS)(UNAUDITED) Three Months Ended December 31, 2020 2019Net income attributable to IES Holdings, Inc.$12.1 $8.5 Provision for income taxes3.6 3.5 Interest & other expense, net0.1 0.4 Depreciation and amortization4.0 2.4 EBITDA$19.8 $14.7 Non-cash equity compensation expense0.8 0.9 Adjusted EBITDA$20.7 $15.6 IES HOLDINGS, INC. AND SUBSIDIARIESSUPPLEMENTAL REMAINING PERFORMANCE OBLIGATIONS AND NON-GAAP RECONCILIATION OF BACKLOG DATA(DOLLARS IN MILLIONS)(UNAUDITED) December 31, September 30, December 31, 2020 2020 2019Remaining performance obligations $525 $505 $430 Agreements without an enforceable obligation (1) 107 97 79 Backlog $632 $602 $509 (1) Our backlog contains signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. Contact: Tracy McLauchlin, CFOIES Holdings, Inc.713-860-1500
The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.
Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.
“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.
The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.
However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”
Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.
A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.
“We will challenge this order in court,” the spokesperson said.
“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”
The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.
At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.
A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”
Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.
Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.
Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.
Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.
While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.
Wednesday’s dissolution order was made in accordance with the act.
The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.
— With files from Anja Karadeglija in Ottawa
This report by The Canadian Press was first published Nov. 6, 2024.
LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?
It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.
Here’s how you can prepare your digital life for your survivors:
Apple
The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.
For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.
You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.
Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.
Google
Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.
When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.
You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.
There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.
Facebook and Instagram
Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.
When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.
The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.
You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.
TikTok
The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.
Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.
X
It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.
Passwords
Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?
Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.
But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.
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Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.
LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.
The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.
The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.
“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”
San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.
Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”
“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.
The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.
