24 unchanged sentences
The Company’s reportable segments consist of the consolidated business segments identified above, which offer different services and are managed separately.
−Removed: The table below describes the percentage of our total revenues attributable to each of our four segments over
−Removed: each of the last three years (percentage columns may not add due to rounding):
+Added: The table below describes the percentage of our total revenues attributable to each of our four segments over each of the last three years (percentage columns may not add due to rounding):
Year Ended September 30,
19 unchanged sentences
Our Communications segment is driven by demand for computing and storage resources as a result of technology advancements and obsolescence and changes in data consumption patterns.
−Removed: Demand in the data center market remains strong, and we continue to provide structured cabling services for applications such as data centers, distribution centers, and high-tech manufacturing facilities.
+Added: Demand in the data center market remains strong, and we continue to provide technology infrastructure services for applications such as data centers, distribution centers, and high-tech manufacturing facilities.
As technology evolves, we are focused on expanding our capabilities as an integrator of audio-visual and other building technology offerings, which continue to experience strong demand.
1 unchanged sentence
However, if customers in our end markets reduce their capital budgets due to economic, technological or other factors, this could result in a decrease in activity for our Communications segment.
+Added: While demand remains strong across our key end markets, the pace of growth in this business may also be slowed by the availability of labor.
Sales and Marketing
17 unchanged sentences
The Residential segment is made up of 75 total locations, which include the segment headquarters in Houston, Texas.
−Removed: These locations geographically cover the Sun-Belt, Western, Mid-Atlantic and Northeastern regions of the United States.
+Added: These locations geographically cover the Sun-Belt, Western, Mid-Atlantic, Midwest and Northeastern regions of the United States.
Industry Overview
1 unchanged sentence
Although demand for both single-family and multi-family housing has increased in recent years, due to economic, technological or other factors, there can be no assurance that overall construction and demand will continue to increase in the future.
−Removed: Entering fiscal 2024, we are cautious about demand for single-family housing, as higher interest rates on mortgages and the impacts of inflation on materials and labor costs have resulted in a decline in housing affordability.
−Removed: We also expect a slowing in multi-family housing starts, as changing credit conditions have made it more difficult and more expensive to finance new projects.
−Removed: Although we expect fiscal 2024 multi-family revenues will be supported by our current backlog, the anticipated reduction in multi-family housing starts may impact our ability to maintain current levels of backlog.
+Added: In our single-family business, we remain cautious about demand for single-family housing, as elevated mortgage rates and the impacts of inflation on materials and labor costs have resulted in a decline in housing affordability.
+Added: In addition, expectations of falling interest rates over the next year could cause consumers to delay home purchases in anticipation of lower mortgage costs.
+Added: However, in the longer term, we still expect strong demand for new single-family housing.
+Added: In our multi-family business, elevated interest rates in fiscal 2024 and tighter lending conditions for project owners have resulted in a reduction in backlog at September 30, 2024 compared with September 30, 2023.
+Added: As a result, we expect a reduction in multi-family revenue for fiscal 2025 compared with fiscal 2024.
Sales and Marketing
1 unchanged sentence
Although we operate in multiple states, the majority of our single-family revenues are derived from services provided in Texas and Florida.
−Removed: The Texas market also remains an important part of our multi-family business;
−Removed: however, the majority of our multi-family revenue is earned across the Mid-Atlantic and Southeast.
+Added: The majority of our multi-family revenue is earned in Texas and across the Mid-Atlantic and Southeast regions.
Our sales efforts include a variety of strategies, including a concentrated focus on national and regional homebuilders and multi-family developers and a local sales strategy for single and multi-family housing projects.
−Removed: Our cable and solar revenues are typically generated through third parties specializing in these industries who select us as a preferred provider of installation services.
A significant portion of our Residential business volume is generated from long-term, repeat customers, some of whom use IES as a preferred provider for major projects.
−Removed: Our long-term strategy is to continue to be a leading provider of electrical services to the residential market, and to continue to expand our offerings of plumbing and HVAC services.
+Added: Our long-term strategy is to continue to be a leading provider of electrical services to the residential market, and to continue to expand our offerings of plumbing and HVAC services into markets where we previously offered only electrical services, while also expanding all service offerings into new geographic markets.
The key elements of our long-term strategy include a continued focus on maintaining a low and variable cost structure and cash generation, allowing us to effectively scale according to the housing cycle, and to opportunistically increase our market share.
11 unchanged sentences
Our Infrastructure Solutions segment provides electro-mechanical solutions for industrial operations to domestic and international customers.
−Removed: Our Custom Power Solutions business includes the manufacture of custom commercial and industrial generator enclosures and the manufacture of custom-engineered power distribution equipment, including metal enclosed bus duct solutions used in power distribution.
+Added: Our Custom Engineered Solutions business includes the manufacture of custom commercial and industrial generator enclosures, the manufacture of custom-engineered power distribution equipment, including metal enclosed bus duct solutions used in power distribution, and structural steel fabrication and services.
Our Industrial Services business includes the maintenance and repair of alternating current (AC) and direct current (DC) electric motors and generators, as well as power generating and distribution equipment;
2 unchanged sentences
This segment serves the steel, railroad, marine, petrochemical, pipeline, pulp and paper, wind energy, mining, automotive, power generation, scrap yards, data center, and utility industries.
−Removed: Our Infrastructure Solutions segment is comprised of 12 locations in Alabama, Georgia, Illinois, Indiana, Ohio, Oklahoma and West Virginia, and is headquartered in Massillon, Ohio.
+Added: Our Infrastructure Solutions segment is comprised of 13 locations in Alabama, Georgia, Illinois, Indiana, Ohio, Oklahoma, Pennsylvania, South Carolina and West Virginia, and is headquartered in Massillon, Ohio.
Industry Overview
7 unchanged sentences
Our competition ranges from small, single location service centers to large, multi-national companies.
−Removed: Our Custom Power Solutions business competes with domestic and international manufacturers and distributors.
+Added: Our Custom Engineered Solutions business competes with domestic and international manufacturers and distributors.
We believe that we have a competitive advantage due to our specific product offerings, geographic proximity to customer sites, and our ability to design high quality products to meet each customer's unique requirements.
11 unchanged sentences
Our design services range from budget assistance to providing design-build and LEED (Leadership in Energy & Environmental Design) solutions to our end customers.
−Removed: Our maintenance and emergency services include critical plant shutdown, troubleshooting, emergency testing, preventative maintenance, and constant presence.
−Removed: We also provide
−Removed: mechanical services such as maintenance agreements, installation, or replacement of mechanical equipment for commercial and industrial facilities.
+Added: Our maintenance and emergency services include
+Added: critical plant shutdown, troubleshooting, emergency testing, preventative maintenance, and constant presence.
+Added: We also provide mechanical services such as maintenance agreements, installation, or replacement of mechanical equipment for commercial and industrial facilities.
This segment provides services for a variety of project types, including office buildings, manufacturing facilities, data centers, wind farms, solar facilities, municipal infrastructure and health care facilities.
28 unchanged sentences
Delivery times are typically short for most raw materials and standard components, but during periods of peak demand, may extend to one month or more.
−Removed: However, during fiscal 2021 and 2022, supply chain interruptions became increasingly common, primarily as a result of the COVID-19 pandemic and its aftermath.
−Removed: Although supply of most raw materials normalized during fiscal 2023, we continue to experience longer lead times in sourcing certain components.
−Removed: Such delays may lead to project inefficiencies resulting from schedule extensions.
+Added: Fluctuations in lead times in sourcing certain components may lead to project inefficiencies resulting from schedule extensions.
We are also exposed to increases in the prices of certain commodities.
4 unchanged sentences
We monitor project bidding and management practices at various levels within the Company.
−Removed: We maintain automobile, general liability and construction defect insurance for third-party health, bodily injury and property damage, as well as pollution coverage and workers’ compensation coverage, which we consider appropriate to insure against these risks.
+Added: maintain automobile, general liability and construction defect insurance for third-party health, bodily injury and property damage, as well as pollution coverage and workers’ compensation coverage, which we consider appropriate to insure against these risks.
Our third-party insurance is subject to deductibles for which we establish reserves.
8 unchanged sentences
We have a diverse customer base.
−Removed: During the year ended September 30, 2023, one customer accounted for 12.0% of our consolidated revenues and no other customer accounted for more than 10% of our consolidated revenues.
−Removed: No single customer accounted for more than 10% of our consolidated revenues during each of the years ended September 30, 2022 and 2021.
+Added: During both of the years ended September 30, 2024 and 2023, one customer accounted for 12.0% of our consolidated revenues and no other customer accounted for more than 10% of our consolidated revenues.
+Added: No single customer accounted for more than 10% of our consolidated revenues during the year ended September 30, 2022.
We emphasize developing and maintaining relationships with our customers by providing superior, high-quality service.
3 unchanged sentences
("Tontine Associates") and its affiliates (collectively, “Tontine”).
−Removed: Tontine owns approximately 58 percent of our outstanding common stock based on Amendment No.
−Removed: 27 to the Schedule 13D filed by Tontine with the United States Securities and Exchange Commission (the "SEC") on September 8, 2023, and the Company's shares outstanding as of November 30, 2023.
+Added: Tontine owns approximately 55 percent of our outstanding common stock based on a Form 4 filed by Tontine with the United States Securities and Exchange Commission (the "SEC") on September 16, 2024, and the Company's shares outstanding as of November 18, 2024.
As a result, Tontine can control most of our affairs, including most actions requiring the approval of shareholders, such as the approval of any potential merger or sale of all or substantially all of the Company's assets or business segments, or the Company itself.
−Removed: Most of Tontine’s shares are registered for resale on a shelf registration statement filed by the Company with the SEC.
−Removed: Tontine’s sale of all or any portion of its shares could result in a change of control of the Company, which 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.
+Added: Most of Tontine’s shares are registered for resale on a resale shelf registration statement filed by the Company with the SEC.
+Added: Tontine’s sale of all or a significant portion of its shares could result in a change of control of the Company, which 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.
For more information, see Note 3, “Controlling Shareholder” in the notes to our Consolidated Financial Statements.
19 unchanged sentences
These agreements are excluded from remaining performance obligations until work begins.
−Removed: We expect that $1,091.2 million of our September 30, 2023 backlog will result in revenue during fiscal 2024, with the remaining $466.8 million expected to be realized in fiscal 2025;
+Added: We expect that $1.3 billion of our September 30, 2024 backlog will result in revenue during fiscal 2025, with the remaining $0.5 billion expected to be realized in fiscal 2026;
however, there can be no assurance that this backlog will be completed within expected time frames or at all.
−Removed: The increase in our backlog year over year was primarily driven by strong demand and increased market share within our all segments.
+Added: The increase in our backlog year over year was primarily driven by strong demand and increased market share.
Our operations are subject to various federal, state and local laws and regulations, including:
4 unchanged sentences
• qualifications of our business legal structure in the jurisdictions where we do business.
−Removed: Many state and local regulations governing electricians and mechanical services require permits and licenses to be held by individuals.
+Added: Many state and local regulations governing electricians and mechanical services require permits and licenses to be held by individuals engaged in such services.
In some cases, a required permit or license held by a single individual may be sufficient to authorize specified activities for all our electricians or mechanical service technicians who work in the state or county that issued the permit or license.
16 unchanged sentences
We have not experienced, and do not expect, any work stoppage, and we believe that our relationship with our employees is strong.
−Removed: We are committed to diversity and inclusion in the workplace, and our policies prohibit discrimination based on race, color, creed, gender, gender identity, sexual orientation, religion, marital status, national origin, disability, protected veteran status and relatives of protected veterans and any other status protected by local, state or federal law.
+Added: We are committed to diversity and inclusion in the workplace, and our policies prohibit discrimination based on race, color, sex, gender, gender identity, sexual orientation, religion, marital status, national origin, ethnicity, citizenship status, religious creed or belief, physical or mental disability, protected veteran status and relatives of protected veterans, marital or familial status, legally protected medical condition, genetic information and any other status protected by local, state or federal law.
This commitment applies to all aspects of employment, including recruitment, hiring, training, compensation, job assignment, advancement, performance feedback and separation.
7 unchanged sentences
We have invested significant resources in development opportunities for employees.
−Removed: For example, our Residential segment has established the IES Residential Education Center, a dedicated facility that trains employees from around the country in the technical skills necessary for a successful career in residential electrical contracting.
−Removed: At all of our segments, partly as a result of the COVID-19 pandemic, we expanded online training offerings to help meet the needs of our changing workplaces.
+Added: For example, our Residential segment has established two residential education centers, which are dedicated facilities that train employees from around the country in the technical skills necessary for successful careers in residential electrical, plumbing and HVAC contracting.
+Added: At all of our segments, partly in response to the COVID-19 pandemic, we expanded online training offerings to help meet the needs of our changing workplaces.
We believe our investment in training supports employee motivation and retention at the same time that it improves productivity and performance.
3 unchanged sentences
As of September 30, 2024, we have 131 domestic locations.
−Removed: In addition to our 2 executive and corporate offices, as of September 30, 2023, we have 19 locations within our Communications business, 80 locations within our Residential business, 12 locations within our
−Removed: Infrastructure Solutions business and 16 locations within our Commercial & Industrial business.
+Added: In addition to our 2 executive and corporate offices, as of September 30, 2024, we have 24 locations within our Communications business, 75 locations within our Residential business, 13 locations within our Infrastructure Solutions business and 17 locations within our Commercial & Industrial business.
This geographic diversity helps to reduce our exposure to unfavorable economic developments in any given region.
4 unchanged sentences
Gendell has also served as a director and as Chairman of the Board since November 2016.
−Removed: Gendell is the founder and managing member of Tontine, the majority stockholder of the Company.
+Added: Gendell is the founder and managing member of Tontine, our controlling shareholder.
Gendell formed Tontine in 1995 and manages all of the investment decisions at the firm.
1 unchanged sentence
Gendell held senior investment management positions at several other private investment firms, including Odyssey Partners, L.P., and began his career in investment banking over 40 years ago at Smith Barney, Harris Upham & Co., where he was involved in capital markets, corporate finance and M&A activity.
−Removed: Simmes , 48, was appointed President and Chief Operating Officer of the Company effective December 7, 2023;
+Added: Simmes , 49, has served as President and Chief Operating Officer of the Company since December 7, 2023;
he previously served as Chief Operating Officer of the Company from December 3, 2021 to December 6, 2023.
7 unchanged sentences
From June 2004 to June 2011, Ms.
−Removed: McLauchlin was with Dynegy Inc., where she served as Senior Vice President and Controller from March 2009 to June 2011 and from June 2004 to March 2009 served in various other capacities in finance and accounting.
+Added: McLauchlin was employed by Dynegy Inc., where she served as Senior Vice President and Controller from March 2009 to June 2011 and from June 2004 to March 2009 served in various other capacities in finance and accounting.
She began her career with PricewaterhouseCoopers LLP after receiving her Master of Accounting from Rice University.
15 unchanged sentences
The materials that we file with the SEC are also available free of charge through the SEC’s website at www.sec.gov .
−Removed: In addition to the Code of Ethics for Financial Executives, we have adopted a Code of Business Conduct and Ethics for directors, officers and employees (the Legal Compliance and Corporate Policy Manual), and established Corporate Governance Guidelines and adopted charters outlining the duties of our Audit, Human Resources and Compensation and Nominating/Governance Committees, copies of which may be found on our website.
+Added: In addition to the Code of Ethics for Financial Executives, we have adopted a Code of Business Conduct and Ethics for directors, officers and employees (the Legal Compliance and Corporate Policy Manual), and established Corporate Governance Guidelines and
+Added: adopted charters outlining the duties of our Audit, Human Resources and Compensation and Nominating/Governance Committees, copies of which may be found on our website.
Paper copies of these documents are also available free of charge upon written request to us.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.