Integrated Electrical Services, Inc. has announced financial results for its fiscal 2014 third quarter.
- Operating cash flow of $3.1 million for the third quarter of 2014, an increase of $0.5 million from the third quarter of 2013
- Gross margins for the quarter improved to 16.6% of revenue as compared to gross margins of 12.9% of revenue for the third quarter of 2013
- Net income from continuing operations of $2.8 million for the third quarter of 2014, or $0.15 per share
- Adjusted EBITDA (a non-GAAP financial measure, as defined below) of $4.3 million for the third quarter of 2014, an increase of $3.0 million compared with the third quarter of 2013
- Backlog was approximately $246 million at June 30, 2014, a $27 million increase from March 31, 2014
James Lindstrom, chairman and chief executive officer, said, "IES's expanded third quarter operating margin of 2.6% and return on equity of 17.7% were the highest levels in over five years. Gradually improving industry dynamics, a focus on operational execution across our portfolio and the prudent management of invested capital contributed significantly to these improved results. We remain focused on continuing to improve our financial performance and pursue acquisition candidates that meet our investment criteria."
Robert Lewey, IES's chief financial officer, added, "Our Communications and Residential divisions' third quarter revenue, gross margins and cash flow outperformed our expectations, which subsequently contributed to an increase in our incentive compensation costs versus the second quarter of 2014. We were also pleased to have another quarter of increased backlog, led by our Commercial & Industrial division."