LONDON, UK / ACCESSWIRE / July 17, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for IES Holdings, Inc. (NASDAQ: IESC), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=IESC. The Company announced on July 14, 2017, that it has acquired 80% of the membership interests in NEXT Electric, LLC, a Milwaukee, Wisconsin-based electric contractor, and one of the four portfolio Companies of OwnersEdge, Inc. NEXT reported about $25 million in revenue in FY16, and currently operates through about 100 employees. For immediate access to our complimentary reports, including today’s coverage, register for free now at:
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Under terms of the acquisition agreement, NEXT’s current management team, led by President Chris Surges, has chosen to reinvest its entire ownership interest and will retain 20% of the membership interests in the Company. NEXT will operate as a subsidiary of IES’s Commercial and Industrial segment and will retain its name, NEXT. The Company, founded in 2012, is an electrical contractor that designs, installs and maintains electrical systems for clients in the industrial, water treatment, commercial, health care, and education sectors.
OwnersEdge views this acquisition as a step to expand its portfolio, which currently is limited to the construction industry. NEXT, since its creation has developed into a leading contractor in the Milwaukee region. NEXT also views this agreement as an instrument to build upon IES’s long-term investment horizon. OwnersEdge is a 100 percent employee stock ownership plan Company, where in the sale of NEXT, its management team maintained a 20 percent stake. However, a part of the sale proceeds was paid off to NEXT’s ESOP Employees.
IES Growth Strategy
Under its Commercial and Industrial segment, the current parent Company of the NEXT, IES offers electrical and mechanical design, construction, and maintenance services to the commercial and industrial markets across different regional markets and under different areas of expertise. IES currently operates through about 4,000 employees in the United States. The Company also invests in Companies who aim o improve the North American Infrastructure under its growth strategy.
Prior to the agreement, on June 15, 2017, the Company announced the acquisition of STR Mechanical, LLC, within its Commercial & Industrial segment. IES acquired all the membership interests of Technical Services II, LLC, a Virginia-based provider of mechanical maintenance services, where IES expects the firm to contribute annualized revenues of about $5 million. IES also acquired Technibus, Inc., through its wholly-owned subsidiary in an all-cash transaction for about $45 million, on June 15, 2016. Technibus was announced to operate as a subsidiary in IES’s Infrastructure Solutions segment.
IES estimated in its Q2 FY17 release on May 05, 2017, that it has available NOLs (Net Operating Loss) for US federal income tax purposes of about $404 million at September 30, 2016. Nevertheless, the Company’s CFO, Tracy McLauchlin, commented on the same fiscal release that owing to the amended and expanded credit facility, the Company has achieved a maximum revolver amount from $70 million to $100 million. The Company believes that the strength and increasing diversity of the $335 million in backlog have well-positioned it to expand its growth margins.
Last Close Stock Review
On Friday, July 14, 2017, the stock closed the trading session at $18.50, rising 1.93% from its previous closing price of $18.15. A total volume of 32.81 thousand shares has exchanged hands. IES Holdings’ stock price surged 10.45% in the last one month, 2.49% in the past three months, and 28.56% in the previous twelve months. The stock is trading at a PE ratio of 3.43 and currently, has a market cap of $389.61 million.
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SOURCE: Pro-Trader Daily