DEI Document
DEI Document - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Nov. 30, 2023 | Mar. 31, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | --09-30 | ||
Document Period End Date | Sep. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-13783 | ||
Entity Registrant Name | IES Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 76-0542208 | ||
Entity Address, Address Line One | 2 Riverway | ||
Entity Address, Address Line Two | Suite 1730 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77056 | ||
City Area Code | 713 | ||
Local Phone Number | 860-1500 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | IESC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 356,900 | ||
Entity Common Stock, Shares Outstanding | 20,194,218 | ||
Documents Incorporated by Reference | Certain information contained in the Proxy Statement for the 2024 Annual Meeting of Stockholders of the Registrant to be held on February 22, 2024, is incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001048268 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Financial Statement Error Correction [Flag] | false |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Houston, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable | $ 363,836 | $ 370,726 |
Accounts and Other Receivables, Net, Current | 76,934 | 65,065 |
Inventories | 95,655 | 96,333 |
Costs and estimated earnings in excess of billings | 48,620 | 52,076 |
Prepaid expenses and other current assets | 10,481 | 15,350 |
Total current assets | 671,296 | 624,398 |
Property and equipment, net | 63,410 | 54,426 |
Goodwill | 92,395 | 92,395 |
Intangible assets, net | 56,208 | 71,936 |
Deferred tax assets | 20,383 | 20,519 |
Operating right of use assets | 61,761 | 55,890 |
Other non-current assets | 16,147 | 15,145 |
Total assets | 981,600 | 934,709 |
Accounts payable and accrued expenses | 296,797 | 316,950 |
Billings in excess of costs and estimated earnings | 103,771 | 84,936 |
Total current liabilities | 400,568 | 401,886 |
Long-term debt | 0 | 81,628 |
Operating long-term lease liabilities | 42,098 | 38,144 |
Liability for Uncertainty in Income Taxes, Noncurrent | 22,047 | 9,893 |
Other non-current liabilities | 16,951 | 12,677 |
Total liabilities | 481,664 | 544,228 |
Noncontrolling interest | $ 49,951 | $ 29,193 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred stock, value | $ 0 | $ 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 22,049,529 | 22,049,529 |
Common Stock, Shares, Outstanding | 20,194,218 | 20,341,900 |
Common stock, value | $ 220 | $ 220 |
Treasury Stock, Common, Shares | 1,855,311 | 1,707,629 |
Treasury stock, value | $ (49,450) | $ (44,000) |
Additional paid-in capital | 203,431 | 201,871 |
Retained earnings | 295,784 | 203,197 |
Total stockholders' equity | 449,985 | 361,288 |
Total liabilities and stockholders' equity | 981,600 | 934,709 |
Cash, Cash Equivalents, and Short-Term Investments | $ 75,770 | $ 24,848 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 2,377,227 | $ 2,166,808 | $ 1,536,493 |
Cost of services | 1,932,688 | 1,847,878 | 1,248,495 |
Gross profit | 444,539 | 318,930 | 287,998 |
Selling, general and administrative expenses | 298,625 | 262,714 | 202,251 |
Contingent consideration | 277 | 277 | 211 |
Loss (gain) on sale of assets | (14,139) | (69) | (47) |
Operating income | 159,776 | 56,008 | 85,583 |
Interest Expense | 3,022 | 2,970 | 962 |
Other (income) expense, net | (1,794) | 37 | (286) |
Income from operations before income taxes | 158,548 | 53,001 | 84,907 |
Provision for income taxes | 38,761 | 12,815 | 16,231 |
Net income (loss) | 119,787 | 40,186 | 68,676 |
Net (income) loss attributable to noncontrolling interest | (11,499) | (5,424) | (2,018) |
Comprehensive income (loss) attributable to IES Holdings, Inc. | $ 108,288 | $ 34,762 | $ 66,658 |
Earnings (loss) per share, basic | $ 4.58 | $ 1.45 | $ 3.19 |
Earnings (loss) per share, diluted | $ 4.54 | $ 1.44 | $ 3.15 |
Weighted Average Number of Shares Outstanding, Basic | 20,196,850 | 20,667,745 | 20,790,307 |
Weighted Average Number of Shares Outstanding, Diluted | 20,413,032 | 20,894,625 | 21,086,432 |
Net income (loss) attributable to IES Holdings, Inc. | $ 108,288 | $ 34,762 | $ 66,658 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock, Common | Common Stock [Member] |
Common Stock, Shares, Issued | 22,049,529 | ||||||
Treasury Stock, Common, Shares | (1,287,134) | ||||||
Stockholders' Equity Attributable to Parent, Beginning Balance at Sep. 30, 2020 | $ 283,313 | $ 200,587 | $ 107,005 | $ (24,499) | $ 220 | ||
Issuances under compensation plans | $ 0 | 2,737 | (2,737) | ||||
Issuances under compensation plans, shares | 140,660 | ||||||
Non-cash compensation | $ 3,522 | 3,522 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ (315) | ||||||
Decrease (increase) in noncontrolling interest | $ 315 | ||||||
Stockholders' Equity, Period Increase (Decrease) | $ 214 | 214 | |||||
Stock Repurchased During Period, Shares | (170,524) | ||||||
Stock Repurchased During Period, Value | $ (7,011) | 527 | (7,538) | ||||
Net income (loss) attributable to IES Holdings, Inc. | 66,658 | 66,658 | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2021 | $ 345,953 | 201,899 | 173,134 | (29,300) | 220 | ||
Common Stock, Shares, Issued | 22,049,529 | ||||||
Treasury Stock, Common, Shares | (1,316,998) | ||||||
Issuances under compensation plans | $ 0 | 3,638 | (3,638) | ||||
Issuances under compensation plans, shares | 157,167 | ||||||
Acquisition of treasury stock, shares | (511,600) | ||||||
Options exercised | $ (53) | 165 | (218) | ||||
Options exercised, shares | 9,000 | ||||||
Non-cash compensation | $ 3,775 | 3,775 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | (4,699) | ||||||
Decrease (increase) in noncontrolling interest | $ 4,699 | ||||||
Stock Repurchased During Period, Shares | (556,798) | ||||||
Stock Repurchased During Period, Value | $ (18,556) | 0 | (18,556) | ||||
Net income (loss) attributable to IES Holdings, Inc. | 34,762 | 34,762 | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2022 | $ 361,288 | 201,871 | 203,197 | (44,000) | 220 | ||
Common Stock, Shares, Issued | 22,049,529 | ||||||
Treasury Stock, Common, Shares | (1,707,629) | ||||||
Issuances under compensation plans | $ 0 | 2,764 | (2,764) | ||||
Issuances under compensation plans, shares | 105,755 | ||||||
Acquisition of treasury stock, shares | (224,013) | ||||||
Options exercised | $ (22) | 58 | (80) | ||||
Options exercised, shares | 3,000 | ||||||
Non-cash compensation | $ 4,372 | 4,372 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | (15,701) | ||||||
Decrease (increase) in noncontrolling interest | $ 15,701 | (4,699) | |||||
Stock Repurchased During Period, Shares | (256,437) | ||||||
Stock Repurchased During Period, Value | $ (8,284) | 10 | (8,294) | ||||
Net income (loss) attributable to IES Holdings, Inc. | 108,288 | ||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2023 | $ 449,985 | $ 203,431 | $ 295,784 | $ 214 | $ (49,450) | $ 220 | |
Common Stock, Shares, Issued | 22,049,529 | ||||||
Treasury Stock, Common, Shares | (1,855,311) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | |||
Bad debt expense | $ 1,216 | ||
Deferred financing cost amortization | $ 268 | $ 199 | 198 |
Depreciation and amortization | 29,407 | 25,468 | 21,914 |
Loss (gain) on sale of assets | 14,139 | 69 | 47 |
Non-cash compensation | 4,372 | 3,775 | 3,522 |
Deferred income taxes | 5,185 | (31) | 11,724 |
Accounts receivable | 2,917 | (87,160) | (55,371) |
Inventories | (1,142) | (27,760) | (30,517) |
Costs and estimated earnings in excess of billings | 3,456 | (8,688) | (13,451) |
Prepaid expenses and other current assets | (7,322) | (18,609) | (9,226) |
Other non-current assets | 2,067 | (3,006) | 703 |
Accounts payable and accrued expenses | (10,047) | 67,128 | 30,623 |
Billings in excess of costs and estimated earnings | 19,051 | 22,450 | 6,746 |
Other non-current liabilities | 162 | (762) | 1,214 |
Net cash provided by operating activities | 153,902 | 16,262 | 37,924 |
Purchases of property and equipment | 17,667 | 29,255 | 7,401 |
Proceeds from sale of assets | 20,602 | 219 | 295 |
Payments to Acquire Equity Method Investments | (165) | (500) | 0 |
Cash received (paid) in conjunction with business combinations | 0 | 0 | (92,463) |
Net cash used in investing activities | 2,770 | (29,536) | (99,569) |
Borrowings of debt | 2,381,562 | 1,924,469 | 1,318,530 |
Repayments of debt | (2,464,221) | (1,882,148) | (1,278,204) |
Finance lease payment | (3,338) | (1,801) | (648) |
Payments for Repurchase of Redeemable Noncontrolling Interest | 0 | 0 | (1,188) |
Distribution to noncontrolling interests | (11,491) | (7,000) | (311) |
Purchase of treasury stock | (8,284) | (18,556) | (7,006) |
Issuance of shares | 22 | 53 | 0 |
Net cash used in financing activities | (105,750) | 15,017 | 31,173 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 50,922 | 1,743 | (30,472) |
CASH, CASH EQUIVALENTS and RESTRiCTED CASH, beginning of period | 24,848 | 23,105 | 53,577 |
CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period | 75,770 | 24,848 | 23,105 |
Cash paid for interest | 2,089 | 3,068 | 738 |
Cash paid for income taxes (net) | 12,056 | 3,953 | 5,062 |
Bad debt expense | 1,216 | ||
Issuance of shares | 22 | 53 | 0 |
Cash and cash equivalents | 75,770 | 24,848 | 23,105 |
Depreciation and amortization | 29,407 | 25,468 | 21,914 |
Loss (gain) on sale of assets | 14,139 | 69 | 47 |
Operating income (loss) | 159,776 | 56,008 | 85,583 |
Deferred financing cost amortization | 268 | 199 | 198 |
Non-cash compensation | 4,372 | 3,775 | 3,522 |
Contingent consideration | 277 | 277 | 211 |
Net income (loss) | $ 119,787 | $ 40,186 | $ 68,676 |
Earnings (loss) per share, basic | $ 4.58 | $ 1.45 | $ 3.19 |
Earnings (loss) per share, diluted | $ 4.54 | $ 1.44 | $ 3.15 |
Weighted Average Number of Shares Outstanding, Basic | 20,196,850 | 20,667,745 | 20,790,307 |
Weighted Average Number of Shares Outstanding, Diluted | 20,413,032 | 20,894,625 | 21,086,432 |
Gross profit | $ 444,539 | $ 318,930 | $ 287,998 |
Cost of services | 1,932,688 | 1,847,878 | 1,248,495 |
Revenues | 2,377,227 | 2,166,808 | 1,536,493 |
Provision for income taxes | 38,761 | 12,815 | 16,231 |
Selling, general and administrative expenses | 298,625 | 262,714 | 202,251 |
Other (income) expense, net | (1,794) | 37 | (286) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 158,548 | 53,001 | 84,907 |
Cash paid for income taxes (net) | 12,056 | 3,953 | 5,062 |
Fair Value of Assets Acquired | 4,712 | 0 | $ 0 |
Trade Accounts Receivable | |||
Statement of Cash Flows [Abstract] | |||
Bad debt expense | (120) | 3,141 | |
Bad debt expense | $ (120) | $ 3,141 |
Business
Business | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. BUSINESS Description of the Business IES Holdings, Inc. designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing and commercial and industrial facilities. Our operations are organized into four business segments, based upon the nature of our services: • Communications – Nationwide provider of technology infrastructure services, including the design, build, and maintenance of the communications infrastructure within data centers for co-location and managed hosting customers, for both large corporations and independent businesses. • Residential – Regional provider of electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation and air conditioning (HVAC) and plumbing installation services in certain markets. • Infrastructure Solutions – Provider of electro-mechanical solutions for industrial operations, including apparatus repair and custom-engineered products such as generator enclosures used in data centers and other industrial applications. • Commercial & Industrial – Provider of electrical and mechanical design, construction, and maintenance services to the commercial and industrial markets in various regional markets and nationwide in certain areas of expertise, such as the power infrastructure market and data centers. The words “IES”, the “Company”, “we”, “our”, and “us” refer to IES Holdings, Inc. and, except as otherwise specified herein, to our consolidated subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of IES Holdings, Inc. and its consolidated subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used in our revenue recognition of construction in progress, fair value assumptions in accounting for business combinations, stock-based compensation, reserves for legal matters, and realizability of deferred tax assets and unrecognized tax benefits. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Inventories Inventories consist of raw materials, work in process, finished goods, and parts and supplies held for use in the ordinary course of business. Inventory is valued at the lower of cost or net realizable value generally using the first-in, first-out (FIFO) method. When circumstances dictate, we write down inventory to its estimated net realizable value based on assumptions about future demand, market conditions, plans for disposal, and physical condition of the product. Where shipping and handling costs on inventory purchases are borne by us, these charges are included in inventory and charged to cost of services upon use in our projects or the providing of services. Property and Equipment Additions of property and equipment are recorded at cost, and depreciation is computed using the straight-line method over the estimated useful life of the related asset. Leasehold improvements are capitalized and depreciated over the lesser of the life of the lease or the estimated useful life of the asset. Costs associated with software developed or obtained for internal use, including third party development fees incurred during the application development stage and software licenses, are capitalized and amortized on a straight-line basis over the estimated useful life of the software. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing property and equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the capitalized cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statements of comprehensive income in the caption (gain) loss on sale of assets. Goodwill Goodwill attributable to each reporting unit is tested for impairment either by comparing the fair value of each reporting unit with its carrying value or by a qualitative assessment. These impairment tests are required to be performed at least annually. On an ongoing basis (absent any impairment indicators), we perform an impairment test annually using a measurement date of September 30. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of a reporting unit is greater than its fair value, then we perform an impairment test by calculating the fair value of the reporting unit and comparing this calculated fair value with the carrying value of the reporting unit. We estimate the fair value of the reporting unit based on both a market approach and an income approach, using discounted estimated future cash flows. The market approach uses market multiples of enterprise value to earnings before interest, taxes, depreciation and amortization for comparable publicly traded companies. The income approach relies on significant estimates for future cash flows, projected long-term growth rates, and the weighted average cost of capital. Intangible Assets Intangible assets with definite lives are amortized over their estimated useful lives based on expected economic benefit with no residual value. Debt Issuance Costs Debt issuance costs are included as a reduction of our debt outstanding, or alternately classified within other non-current assets if we have no borrowings drawn on our credit facility at the balance sheet date, and are amortized to interest expense over the scheduled maturity of the debt. Amortization expense of debt issuance costs was $268, $199 and $198, respectively, for the years ended September 30, 2023, 2022 and 2021. Remaining unamortized capitalized debt issuance costs were $836 and $1,031 at September 30, 2023, and 2022, respectively. Revenue Recognition Revenue is recognized from a contract with a customer when: (i) it has approval and commitment from both parties, (ii) the rights of the parties are identified, (iii) payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. We consider the start of a project to be when the above criteria have been met and we have written authorization from the customer to proceed. We recognize revenue on project contracts over time using the percentage of completion method. Project contracts generally provide that customers accept completion of progress to date and compensate us for services rendered measured in terms of units installed, hours expended or some other measure of progress. We recognize revenue on both signed contracts and change orders. A discussion of our treatment of claims and unapproved change orders is described later in this section. Percentage of completion for construction contracts is measured principally by the percentage of costs incurred and accrued to date for each contract to the estimated total cost for each contract at completion. We generally consider contracts to be substantially complete upon departure from the work site and acceptance by the customer. Contract costs include all direct material, labor and insurance costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Changes in job performance, job conditions, estimated contract costs and profitability and final contract settlements can result in change orders under which the customer agrees to pay additional contract price. Revisions can also result in claims we might make against the customer to recover additional costs that have not been resolved through change orders with the customer. We do not recognize revenue or margin based on change orders or claims if it is probable such revenue will be reversed. The amount of revenue associated with unapproved change orders and claims was immaterial for the years ended September 30, 2023, 2022 and 2021. Provisions for total estimated losses on uncompleted contracts are made in the period in which such losses are determined. The balances billed but not paid by customers pursuant to retainage provisions in project contracts are typically due upon completion of the contracts and acceptance by the customer. Based on our experience, the retention balance at each balance sheet date will be collected within the subsequent fiscal year. Certain divisions in the Residential and Infrastructure Solutions segments recognize revenue at the completion of the contract ("completed contract") under the right to invoice practical expedient because the duration of their contracts is short in nature. We recognize revenue on completed contracts when the project is complete and billable to the customer. Accounts Receivable and Allowance for Credit Losses As described below under “Accounting Standards Recently Adopted”, we adopted the new accounting standard for measuring credit losses effective October 1, 2020. We record accounts receivable for all amounts billed and not collected and amounts for which we have an unconditional right to bill our customers. Additionally, we provide an allowance for credit losses based on historical company-specific uncollectable accounts, as well as current and expected market conditions. From time to time, we establish additional allowance for credit losses for financial asset balances with specific customers where collectability has been determined to be improbable based on specific facts and circumstances. Such allowances are established as deemed necessary in the period such determination is made. As is common in our industry, some of these receivables are in litigation or require us to exercise our contractual lien rights in order to collect. Our allowance for credit losses at September 30, 2023 and 2022 was $1,649 and $5,361, respectively. In calculating our expected credit losses, we consider trade receivables, retainage, and costs and estimated earnings in excess of billings, all of which constitute a homogenous portfolio, and therefore, to measure the expected credit loss, they are grouped together. We have elected to calculate an expected credit loss based on loss rates from historical data. Each segment groups financial assets with similar risk characteristics and collectively assesses the expected credit losses. If an individual asset experiences credit deterioration to the extent the credit risk is no longer characteristic of the other assets in the group, it will be analyzed individually. The loss rates for our portfolios include our history of credit loss expense, the aging of our receivables, our expectation of payments and adjustment for forward-looking factors specific to the macroeconomic trends in the markets we serve. Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in equity during a period except those resulting from investments by and distributions to stockholders. Income Taxes We follow the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recorded for the future income tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities, and are measured using enacted tax rates and laws. We evaluate valuation allowances established for deferred tax assets for which future realization is uncertain on a quarterly basis. In assessing the realizability of deferred tax assets, we must consider whether it is more likely than not some portion, or all, of the deferred tax assets will not be realized. We consider all available evidence, both positive and negative, in determining whether a valuation allowance is required. At September 30, 2023, we concluded, based upon the assessment of positive and negative evidence, that it is more likely than not that the Company will generate sufficient taxable income to realize net deferred tax assets of $20,383. We considered the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income is different from these estimates, our results could be affected. We record reserves for income taxes related to certain tax positions when management considers it more likely than not that additional taxes may be due in excess of amounts reflected on income tax returns filed. When recording these reserves, we assume that taxing authorities have full knowledge of the position and all relevant facts. We continually review exposure to additional tax obligations, and as further information is known or events occur, changes in tax reserves may be recorded. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and included in the provision for income taxes. Fair Value of Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and a loan agreement. We believe that the carrying value of financial instruments approximates their fair value due to their short-term nature. The carrying value of our debt approximates fair value, as debt incurs interest at a variable rate. Noncontrolling Interest In connection with our acquisitions of Edmonson Electric, LLC (“Edmonson”) and Bayonet Plumbing, Heating & Air-Conditioning, LLC (“Bayonet”) in fiscal 2021, NEXT Electric, LLC (“NEXT”) in fiscal 2017, and STR Mechanical, LLC (“STR”) in fiscal 2016, we acquired an 80 percent interest in each of the entities, with the remaining 20 percent interest in each such entity being retained by the respective third party sellers. The interests retained by those third party sellers are identified on our Consolidated Balance Sheets as noncontrolling interest, classified outside of permanent equity. Under the terms of each entity’s operating agreement, after five years from the date of the acquisition, we may elect to purchase, or the third party seller may require us to purchase, part or all of the remaining 20 percent interest in the applicable entity. The purchase price is variable, based on a multiple of earnings as defined in the operating agreements. Therefore, this noncontrolling interest is carried at the greater of the balance determined under Accounting Standards Codification (“ASC”) 810 and the redemption amounts assuming the noncontrolling interests were redeemable at the balance sheet date. During the year ended September 30, 2021, we acquired the noncontrolling interest in STR for $1,188. We sold 100% of our interests in STR in October 2022. If all of the noncontrolling interests remaining outstanding at September 30, 2023 had been redeemable at that date, the redemption amount would have been $49,951. For the year ended September 30, 2023, we recorded a decrease to Retained Earnings of $15,701 to increase the carrying amount of noncontrolling interest in NEXT, Edmonson and Bayonet to their redemption amounts. For the year ended September 30, 2022, we recorded a decrease to Retained Earnings of $4,699 to increase the carrying amount of noncontrolling interest in NEXT and Edmonson to their redemption amounts. Leases We enter into various contractual arrangements for the right to use facilities, vehicles and equipment. We evaluate whether each of these arrangements contains a lease and classify all identified leases as either operating or finance. If the arrangement is subsequently modified, we re-evaluate our classification. The lease term generally ranges from two to ten years for facilities and three to five years for vehicles and equipment. Our lease terms may include the exercise of renewal or termination options when it is reasonably certain these options will be exercised. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Upon commencement of the lease, we recognize a lease liability and corresponding right-of-use (“ROU”) asset for all leases with an initial term greater than twelve months. Lease liabilities represent the present value of our future lease payments over the expected lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate as the discount rate in calculating the present value of the lease payments. The incremental borrowing rate is determined by identifying a synthetic credit rating for the consolidated company, where treasury functions are centrally managed, and adjusting the interest rates from associated indexes for differences in credit risk and interest rate risk. We have elected to combine the lease and nonlease components in the recognition of our lease liabilities across all classes of underlying assets. ROU assets represent our right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability with adjustments for prepaid or accrued rent, lease incentives or unamortized initial direct costs. Costs associated with ROU assets are recognized on a straight-line basis over the term of the lease. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations. Certain lease contracts include obligations to pay for other services, such as operations and maintenance. Where the costs of these services can be identified as fixed or fixed-in-substance, the costs are included as part of the future lease payments. If the cost is not fixed at the inception of the lease, the cost is recorded as a variable cost in the period incurred. Accounting Standards Recently Adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This update is effective for fiscal years beginning after December 15, 2020 and for interim periods within that year. Early adoption is permitted. We adopted this standard on October 1, 2021 with immaterial impact on our Consolidated Financial Statements. In June 2016, FASB issued Accounting Standard Update No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”), which requires companies to consider historical experiences, current market conditions and reasonable and supportable forecasts in the measurement of expected credit losses, with further clarifications made in April 2019 and May 2019 with the issuances of Accounting Standard Updates No. 2019-04 and 2019-05. This update is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. We adopted this standard on October 1, 2020, using a modified retrospective transition method through a cumulative-effect adjustment to beginning retained earnings in the period of adoption. As a result, we recorded an increase in the Allowance for Credit Losses of $284, an increase to Deferred Tax Assets of $70, and a decrease to Retained Earnings of $214. |
Controlling Shareholder
Controlling Shareholder | 12 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Controlling Shareholder [Text Block] | 3. CONTROLLING SHAREHOLDER Tontine Associates, L.L.C. (“Tontine Associates”), together with its affiliates (collectively, “Tontine”) is the Company's controlling stockholder, owning approximately 58 percent of the Company’s outstanding common stock based on Amendment No. 27 to the Schedule 13D filed by Tontine with the SEC on September 8, 2023 and the Company's shares outstanding as of November 30, 2023. Accordingly, Tontine has the ability to exercise significant control over our affairs, including the election of directors and most actions requiring the approval of shareholders. While Tontine is subject to certain restrictions under federal securities laws on sales of its shares as an affiliate, the Company has filed a shelf registration statement to register all of the shares of IES common stock owned by Tontine at the time of registration. As long as the shelf registration statement remains effective and the Company remains eligible to use it, Tontine has the ability to resell any or all of its registered shares from time to time in one or more offerings, as described in the shelf registration statement and in any prospectus supplement filed in connection with an offering pursuant to the shelf registration statement. Should Tontine, or its underlying individual owners, sell or otherwise dispose of all or a portion of its position in IES, a change in ownership of IES could occur. A change of control 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. Jeffrey L. Gendell was appointed as Chief Executive Officer of the Company effective October 1, 2020, having served as the Company's Interim Chief Executive Officer since July 31, 2020. Mr. Gendell also serves as Chairman of the Board of Directors, a position he has held since November 2016. He is the managing member and founder of Tontine, and the brother of David B. Gendell, who has served as a member of our Board of Directors since February 2012, and who previously served as Interim Director of Operations from November 2017 to January 2019, as Vice Chairman of the Board from November 2016 to November 2017 and as Chairman of the Board from January 2015 to November 2016. David B. Gendell was an employee of Tontine from 2004 until January 2018. The Company is party to a sublease agreement with Tontine Associates for corporate office space in Greenwich, Connecticut. In December 2022, the Company entered into an amendment of the sublease agreement, which was set to terminate on February 28, 2023, to extend the term of the agreement through August 31, 2024 and to increase the monthly payments from approximately $8 to approximately $9 effective March 1, 2023. Payments by the Company are at a rate consistent with that paid by Tontine Associates to its landlord. On December 6, 2018, the Company entered into a Board Observer Letter Agreement (the "Observer Agreement") with Tontine Associates, in order to assist Tontine in managing its investment in the Company. Subject to the terms and conditions set forth in the Observer Agreement, the Company granted Tontine the right, at any time that Tontine holds at least 20% of the outstanding common stock of the Company, to appoint a representative to serve as an observer to the Board (the “Board Observer”). The Board Observer, who must be reasonably acceptable to those members of the Board who are not affiliates of Tontine, shall have no voting rights or other decision making authority. Subject to the terms and conditions set forth in the Observer Agreement, so long as Tontine has the right to appoint a Board Observer, the Board Observer will have the right to attend and participate in meetings of the Board and the committees thereof, subject to confidentiality requirements, and to receive reimbursement for reasonable out-of-pocket expenses incurred in his or her capacity as a Board Observer and such rights to coverage under the Company’s directors’ and officers’ liability insurance policy as are available to the Company’s directors. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | 4. REVENUE RECOGNITION Contracts Our revenue is derived from contracts with customers, and we determine the appropriate accounting treatment for each contract at its inception. Our contracts primarily relate to electrical and mechanical contracting services, technology infrastructure products and services, and electro-mechanical solutions for industrial operations. Revenue is earned based upon an agreed fixed price or actual costs incurred plus an agreed upon percentage. We account for a contract when: (i) it has approval and commitment from both parties, (ii) the rights of the parties are identified, (iii) payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. We consider the start of a project to be when the above criteria have been met and we have written authorization from the customer to proceed. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In our Residential Single-family business and our Infrastructure Solutions Industrial Services business, our contracts are generally in the form of purchase orders issued to us by the customer. We recognize revenue upon completion of the services specified in the purchase order. We recognize revenue over time for the majority of the services we perform other than the Residential Single-family and Infrastructure Solutions Industrial Services businesses, as (i) control continuously transfers to the customer as work progresses at a project location controlled by the customer and (ii) we have the right to bill the customer as costs are incurred. Within our Infrastructure Solutions Custom Power Solutions business, we often perform work inside our own facilities, where control does not continuously transfer to the customer as work progresses. In such cases, we evaluate whether the work performed creates an asset with alternative use to the Company and whether we have the right to bill the customer as costs are incurred. Such assessment involves an evaluation of contractual termination clauses. Where we are creating an asset with no alternative use and we have a contractual right to payment for work performed to date, we recognize revenue over time. If we do not have such a right, we recognize revenue upon completion of the contract, when control of the work transfers to the customer. For arrangements where we recognize revenue over time, we use the percentage of completion method of accounting under which revenue recognized is measured principally by the costs incurred and accrued to date for each contract as a percentage of the estimated total cost for each contract at completion. Contract costs include all direct material, labor and indirect costs related to contract performance. Changes in job performance, job conditions, estimated contract costs and profitability and final contract settlements may result in revisions to costs and income, and the effects of these revisions are recognized in the period in which the revisions are determined. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. This measurement and comparison process requires updates to the estimate of total costs to complete the contract, and these updates may include subjective assessments and judgments. Variable Consideration The transaction price for our contracts may include variable consideration, which includes changes to transaction price for approved and unapproved change orders, claims and incentives. Change orders, claims and incentives are generally not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as a modification of the existing contract and performance obligation. We estimate variable consideration for a performance obligation at the probability weighted value we expect to receive (or the most probable amount we expect to incur in the case of liquidated damages, if any), utilizing estimation methods that best predict the amount of consideration to which we will be entitled (or will be incurred in the case of liquidated damages, if any). We include variable consideration in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. The effect of variable consideration on the transaction price of a performance obligation is recognized as an adjustment to revenue on a cumulative catch-up basis. To the extent unapproved change orders and claims reflected in transaction price (or accounted for as a reduction of the transaction price in the case of liquidated damages) are not resolved in our favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue. Disaggregation of Revenue We disaggregate our revenue from contracts with customers by activity and contract type, as these categories reflect how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Our consolidated revenue for the years ended September 30, 2023, 2022 and 2021 was derived from the following activities. See details in the following tables: Year Ended September 30, 2023 2022 2021 Communications $ 600,776 $ 559,777 $ 445,968 Residential Single-family 961,271 825,505 454,449 Multi-family and Other 318,233 305,909 232,898 Total Residential 1,279,504 1,131,414 687,347 Infrastructure Solutions Industrial Services 46,091 65,686 44,427 Custom Power Solutions 171,262 101,427 102,553 Total Infrastructure Solutions 217,353 167,113 146,980 Commercial & Industrial 279,594 308,504 256,198 Total Revenue $ 2,377,227 $ 2,166,808 $ 1,536,493 Year Ended September 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 404,684 $ 1,279,504 $ 210,547 $ 241,159 $ 2,135,894 Time-and-material 196,092 — 6,806 38,435 241,333 Total revenue $ 600,776 $ 1,279,504 $ 217,353 $ 279,594 $ 2,377,227 Year Ended September 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 367,513 $ 1,131,414 $ 159,994 $ 282,522 $ 1,941,443 Time-and-material 192,264 — 7,119 25,982 225,365 Total revenue $ 559,777 $ 1,131,414 $ 167,113 $ 308,504 $ 2,166,808 Year Ended September 30, 2021 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 327,496 $ 687,347 $ 139,532 $ 243,546 $ 1,397,921 Time-and-material 118,472 — 7,448 12,652 138,572 Total revenue $ 445,968 $ 687,347 $ 146,980 $ 256,198 $ 1,536,493 Accounts Receivable Accounts receivable include amounts which we have billed or have an unconditional right to bill our customers. As of September 30, 2023, accounts receivable included $4,523 of unbilled receivables for which we have an unconditional right to bill. Contract Assets and Liabilities Project contracts typically provide for a schedule of billings on percentage of completion of specific tasks inherent in the fulfillment of our performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statement of operations can and usually does differ from amounts that can be billed to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceeds cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in our Consolidated Balance Sheets under the caption “Costs and estimated earnings in excess of billings”. Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized are reflected as a current liability in our Consolidated Balance Sheets under the caption “Billings in excess of costs and estimated earnings”. During the years ended September 30, 2023 and 2022, we recognized revenue of $82,520 and $52,683 related to our contract liabilities at October 1, 2022 and 2021, respectively. We did not have any impairment losses recognized on our receivables or contract assets for the years ended September 30, 2023, 2022 and 2021. Remaining Performance Obligations Remaining performance obligations represent the unrecognized revenue value of our contract commitments. New awards represent the total expected revenue value of new contract commitments undertaken during a given period, as well as additions to the scope of existing contract commitments. Our new performance obligations vary significantly each reporting period based on the timing of our major new contract commitments. At September 30, 2023, we had remaining performance obligations of $1,143,423. The Company expects to recognize revenue on approximately $921,656 of the remaining performance obligations over the next 12 months, with the remaining recognized thereafter. For the year ended September 30, 2023, net revenue recognized from our performance obligations satisfied in previous periods was not material. |
Property and Equipment (Notes)
Property and Equipment (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. PROPERTY AND EQUIPMENT Property and equipment consists of the following: Estimated Useful Lives in Years Year Ended September 30, 2023 2022 Land N/A $ 4,181 $ 4,569 Buildings and improvements 5 - 20 33,753 32,477 Machinery and equipment 3 - 10 65,787 55,917 Information systems 2 - 8 14,508 8,699 Furniture and fixtures 5 - 7 2,507 2,239 Property and equipment, gross $ 120,736 $ 103,901 Less-Accumulated depreciation (58,693) (50,014) Construction in progress 1,367 539 Property and equipment, net $ 63,410 $ 54,426 Depreciation expense, including amortization of internal-use software, was $12,121, $10,073 and $8,090, respectively, for the years ended September 30, 2023, 2022 and 2021. |
Per Share Information
Per Share Information | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 6. PER SHARE INFORMATION Basic earnings per share is calculated as income (loss) available to common stockholders, divided by the weighted average number of common shares outstanding during the period. If the effect is dilutive, participating securities are included in the computation of basic earnings per share. Our participating securities do not have a contractual obligation to share in the losses in any given period. As a result, these participating securities will not be allocated any losses in the periods of net losses, but will be allocated income in the periods of net income using the two-class method. The following table reconciles the components of the basic and diluted earnings per share for the years ended September 30, 2023, 2022 and 2021: Year Ended September 30, 2023 2022 2021 Numerator: Net income attributable to IES Holdings, Inc. $ 108,288 $ 34,762 $ 66,658 Increase in noncontrolling interest (15,701) (4,695) (315) Net income attributable to restricted shareholders of IES Holdings, Inc. (11) (21) (56) Net income attributable to common shareholders of IES Holdings, Inc. $ 92,576 $ 30,046 $ 66,287 Denominator: Weighted average common shares outstanding — basic 20,196,850 20,667,745 20,790,307 Effect of dilutive stock options and non-vested securities 216,182 226,880 296,125 Weighted average common and common equivalent shares outstanding — diluted 20,413,032 20,894,625 21,086,432 Earnings per share attributable to common shareholders of IES Holdings, Inc.: Basic $ 4.58 $ 1.45 $ 3.19 Diluted $ 4.54 $ 1.44 $ 3.15 For the years ended September 30, 2023, 2022 and 2021, the average price of our common stock exceeded the exercise price of outstanding stock options; therefore, all of our outstanding stock options were included in the computation of diluted earnings per share. For the years ended September 30, 2023, 2022 and 2021, there were no other unvested performance awards excluded from the calculation of diluted earnings per share because the inclusion of such instruments would have been anti-dilutive. |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Accounts (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Detail of Certain Balance Sheet Accounts [Abstract] | |
Detail Of Certain Balance Sheet Accounts [Text Block] | 7. DETAIL OF CERTAIN BALANCE SHEET ACCOUNTS Accounts payable and accrued expenses consist of the following: September 30, 2023 2022 Accounts payable, trade $ 138,591 $ 184,963 Accrued compensation and benefits 90,667 75,190 Accrued insurance liabilities 7,726 7,693 Current operating lease liabilities 19,496 17,319 Other accrued expenses 40,317 31,785 $ 296,797 $ 316,950 Other non-current assets are comprised of the following: September 30, 2023 2022 Executive Savings Plan assets $ 783 $ 706 Securities and equity investments 675 2,447 Right of use asset - finance leases 12,344 10,246 Other 2,345 1,746 Total $ 16,147 $ 15,145 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 8. DEBT Debt consists of the following: Year Ended September 30, 2023 2022 Revolving loan (long-term debt) $ — $ 82,659 Debt issuance costs — (1,031) Total debt $ — $ 81,628 At September 30, 2023, we had no outstanding borrowings, $4,166 in outstanding letters of credit and $142,761 of availability under our revolving credit facility. Any amounts outstanding under our revolving credit facility are due and payable in September 2026, upon expiration of our revolving credit facility, and all amounts described as available are available without triggering our financial covenants under the Amended Credit Agreement (as defined below). The interest rate under our revolving credit facility was 6.82% at September 30, 2023. For the years ended September 30, 2023, 2022 and 2021, we incurred interest expense of $3,022, $2,970 and $962, respectively. The Revolving Credit Facility On April 28, 2022 we entered into the Third Amended and Restated Credit and Security Agreement (the "Amended Credit Agreement"), which, among other things, increased the maximum borrowing amount under our revolving credit facility from $125,000 to $150,000. The Amended Credit Agreement also removed the aggregate cap on Company investments in certain securities and the cap on the Company’s ability to make stock repurchases, in each case subject to the satisfaction of certain liquidity requirements. The Amended Credit Agreement, which matures on September 30, 2026, contains customary affirmative, negative and financial covenants. As of September 30, 2023, the Company was in compliance with the financial covenants under the Amended Credit Agreement, requiring that we maintain: • a Fixed Charge Coverage Ratio (as defined in the Amended Credit Agreement), measured quarterly on a trailing four-quarter basis at the end of each quarter, of at least 1.1 to 1.0; and • minimum Liquidity of at least ten percent (10%) of the Maximum Revolver Amount, or $15,000; with, for purposes of this covenant, at least fifty percent (50%) of our Liquidity comprised of Excess Availability (as defined in the Amended Credit Agreement). At September 30, 2023, our Liquidity was $218,531, our Excess Availability was $142,761 (or greater than 50% of minimum Liquidity), and our Fixed Charge Coverage Ratio was 6.3:1.0. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lessee, Finance Leases | 9. LEASES We enter into various contractual arrangements for the right to use facilities, vehicles and equipment. The lease term generally ranges from two to ten years for facilities and three to five years for vehicles and equipment. Our lease terms may include the exercise of renewal or termination options when it is reasonably certain these options will be exercised. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Current operating lease liabilities were $19,496 and $17,319, respectively, as of September 30, 2023 and 2022, and current finance lease liabilities were $4,301 and $2,928, respectively, as of September 30, 2023 and 2022. Current operating and finance lease liabilities were included in " Accounts payable and accrued expenses Other non-current liabilities Other non-current assets The maturities of our lease liabilities as of September 30, 2023, are as follows: Operating Leases Finance Leases Total 2024 $ 20,020 $ 4,436 $ 24,456 2025 16,239 4,204 20,443 2026 12,662 3,338 16,000 2027 9,362 1,598 10,960 2028 5,043 155 5,198 Thereafter 6,236 — 6,236 Total undiscounted lease payments $ 69,562 $ 13,731 $ 83,293 Less: imputed interest 7,968 1,332 9,300 Present value of lease liabilities $ 61,594 $ 12,399 $ 73,993 The total future undiscounted cash flows related to lease agreements committed to but not yet commenced as of September 30, 2023, is $9,616. Lease cost recognized in our Consolidated Statements of Comprehensive Income is summarized as follows: Year Ended September 30, 2023 2022 2021 Operating lease cost $ 18,501 $ 16,000 $ 13,405 Finance lease cost Amortization of lease assets 3,603 1,729 634 Interest on lease liabilities 746 269 119 Finance lease cost 4,349 1,998 753 Short-term lease cost 1,883 2,426 1,575 Variable lease cost 2,805 1,900 1,286 Total lease cost $ 27,538 $ 22,324 $ 17,019 Other information about lease amounts recognized in our Consolidated Financial Statements is summarized as follows: Year Ended September 30, 2023 2022 2021 Operating cash flows used for operating leases $ 22,022 $ 20,799 $ 15,011 Operating cash flows used for finance leases 746 269 119 Right-of-use assets obtained in exchange for new operating lease liabilities 27,491 31,422 24,606 Right-of-use assets obtained in exchange for new finance lease liabilities 5,973 7,950 2,962 Year Ended September 30, 2023 2022 Weighted-average remaining lease term - operating leases 4.5 years 4.8 years Weighted-average remaining lease term - finance leases 3.4 years 3.9 years Weighted-average discount rate - operating leases 5.1 % 4.0 % Weighted-average discount rate - finance leases 6.0 % 4.7 % For a discussion of leases with certain related parties which are included above, see Note 13, “Related-Party Transactions.” |
Lessee, Operating Leases | 9. LEASES We enter into various contractual arrangements for the right to use facilities, vehicles and equipment. The lease term generally ranges from two to ten years for facilities and three to five years for vehicles and equipment. Our lease terms may include the exercise of renewal or termination options when it is reasonably certain these options will be exercised. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Current operating lease liabilities were $19,496 and $17,319, respectively, as of September 30, 2023 and 2022, and current finance lease liabilities were $4,301 and $2,928, respectively, as of September 30, 2023 and 2022. Current operating and finance lease liabilities were included in " Accounts payable and accrued expenses Other non-current liabilities Other non-current assets The maturities of our lease liabilities as of September 30, 2023, are as follows: Operating Leases Finance Leases Total 2024 $ 20,020 $ 4,436 $ 24,456 2025 16,239 4,204 20,443 2026 12,662 3,338 16,000 2027 9,362 1,598 10,960 2028 5,043 155 5,198 Thereafter 6,236 — 6,236 Total undiscounted lease payments $ 69,562 $ 13,731 $ 83,293 Less: imputed interest 7,968 1,332 9,300 Present value of lease liabilities $ 61,594 $ 12,399 $ 73,993 The total future undiscounted cash flows related to lease agreements committed to but not yet commenced as of September 30, 2023, is $9,616. Lease cost recognized in our Consolidated Statements of Comprehensive Income is summarized as follows: Year Ended September 30, 2023 2022 2021 Operating lease cost $ 18,501 $ 16,000 $ 13,405 Finance lease cost Amortization of lease assets 3,603 1,729 634 Interest on lease liabilities 746 269 119 Finance lease cost 4,349 1,998 753 Short-term lease cost 1,883 2,426 1,575 Variable lease cost 2,805 1,900 1,286 Total lease cost $ 27,538 $ 22,324 $ 17,019 Other information about lease amounts recognized in our Consolidated Financial Statements is summarized as follows: Year Ended September 30, 2023 2022 2021 Operating cash flows used for operating leases $ 22,022 $ 20,799 $ 15,011 Operating cash flows used for finance leases 746 269 119 Right-of-use assets obtained in exchange for new operating lease liabilities 27,491 31,422 24,606 Right-of-use assets obtained in exchange for new finance lease liabilities 5,973 7,950 2,962 Year Ended September 30, 2023 2022 Weighted-average remaining lease term - operating leases 4.5 years 4.8 years Weighted-average remaining lease term - finance leases 3.4 years 3.9 years Weighted-average discount rate - operating leases 5.1 % 4.0 % Weighted-average discount rate - finance leases 6.0 % 4.7 % For a discussion of leases with certain related parties which are included above, see Note 13, “Related-Party Transactions.” |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. INCOME TAXES Federal and state income tax provisions are as follows: Year Ended September 30, 2023 2022 2021 Federal: Current $ 27,205 $ 9,401 $ 2 Deferred 4,300 3 11,678 State: Current 6,370 3,445 4,505 Deferred 886 (34) 46 Total provision for income taxes $ 38,761 $ 12,815 $ 16,231 Actual income tax expense differs from income tax expense computed by applying the U.S. federal statutory corporate rate to income (loss) before income taxes as follows: Year Ended September 30, 2023 2022 2021 Provision at the federal statutory rate $ 33,295 $ 11,130 $ 17,830 Increase resulting from: Non-deductible expenses 2,017 1,610 1,086 State income taxes, net of federal deduction 6,338 2,114 3,876 Contingent tax liabilities 396 — — Change in valuation allowance — 283 — Other — 427 — Decrease resulting from: Share-based compensation (332) (665) (715) Noncontrolling interest (2,415) (1,139) (428) Change in valuation allowance (52) — (118) Contingent tax liabilities — (133) (2,898) Component 2 goodwill utilization — (812) (2,241) Other (486) — (161) Total provision for income taxes $ 38,761 $ 12,815 $ 16,231 Deferred income tax provisions result from temporary differences in the recognition of income and expenses for financial reporting purposes and for income tax purposes. The income tax effects of these temporary differences, representing deferred income tax assets and liabilities, result principally from the following: September 30, 2023 2022 Deferred income tax assets: Allowance for credit losses $ 349 $ 1,246 Accrued expenses 18,167 18,645 Net operating loss carryforward 4,224 4,542 Various reserves 1,718 1,318 Equity losses in affiliate — 125 Share-based compensation 1,298 1,142 Capital loss carryforward — 82 Lease asset 14,207 12,534 Other 8,596 4,236 Subtotal 48,559 43,870 Less valuation allowance 823 875 Total deferred income tax assets 47,736 42,995 Deferred income tax liabilities: Property and equipment 2,231 126 Intangible assets 9,984 9,044 Lease liability 14,102 12,500 Other 1,036 806 Total deferred income tax liabilities 27,353 22,476 Net deferred income tax assets $ 20,383 $ 20,519 In fiscal 2023 and 2022, the valuation allowance on our deferred tax assets decreased by $52 and increased by $283, respectively, which is included in “Provision for income taxes” in our Consolidated Statements of Comprehensive Income. As of September 30, 2023, we had available approximately $5,202 of federal net tax operating loss carry forward for federal income tax purposes. This carry forward, which may provide future tax benefits, is subject to an annual limitation of $709 under Section 382 of the Internal Revenue Code and will begin to expire in 2029. As of September 30, 2023, we had available approximately $70,216 state net tax operating loss carry forwards, including $4,965 from net operating losses on which no tax benefit has been recognized and has not been recorded as a deferred tax asset. The significant majority of these carry forwards, which may provide future tax benefits, will not begin to expire until 2026. We have provided valuation allowances on all net operating losses where it is determined it is more likely than not that they will expire without being utilized. In assessing the realizability of deferred tax assets at September 30, 2023, we considered whether it was more likely than not that some portion or all of the deferred tax assets will not be realized. Our realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which these temporary differences become deductible. As a result, we have recorded a net deferred tax asset of $20,383 on our Consolidated Balance Sheets. We will continue to evaluate the appropriateness of our remaining deferred tax assets and need for valuation allowances on a quarterly basis. GAAP requires financial statement reporting of the expected future tax consequences of uncertain tax return reporting positions on the presumption that all relevant tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but it prohibits discounting of any of the related tax effects for the time value of money. The evaluation of a tax position is a two-step process. The first step is the recognition process to determine if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit/expense to recognize in the financial statements. The tax position is measured at the largest amount of benefit/expense that is more likely than not of being realized upon ultimate settlement. A reconciliation of the beginning and ending balances of unrecognized tax benefit is as follows: Year Ended September 30, 2023 2022 Balance at beginning of period $ 21,746 $ 21,879 Additions for positions of prior years 819 26 Reduction resulting from the lapse of the applicable statutes of limitations (218) (159) Balance at end of period $ 22,347 $ 21,746 As of September 30, 2023 and 2022, $22,347 and $21,746, respectively, of unrecognized tax benefits would result in a decrease in the provision for income tax expense. We anticipate that approximately $6,600 in liabilities for unrecognized tax benefits, including accrued interest, primarily from net operating losses on which no tax benefit has been recognized, may be reversed in the next twelve months. The reversal is predominantly due to the expiration of the statutes of limitation for unrecognized tax benefits. We had approximately $697 and $52 accrued for the payment of interest and penalties at September 30, 2023 and 2022, respectively. We recognize interest and penalties related to unrecognized tax benefits as part of the provision for income taxes. The tax years ended September 30, 2020, and forward are subject to federal audit as are tax years prior to September 30, 2020, to the extent of unutilized net operating losses generated in those years. The tax years ended September 30, 2019, and forward are subject to state audits as are tax years prior to September 30, 2019, to the extent of unutilized net operating losses generated in those years. |
Operating Segments
Operating Segments | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 11. OPERATING SEGMENTS We manage and measure performance of our business in four distinct operating segments: Communications, Residential, Infrastructure Solutions and Commercial & Industrial. These segments are reflective of how the Company’s Chief Operating Decision Maker (“CODM”) reviews operating results for the purposes of allocating resources and assessing performance. The Company’s CODM is its Chief Executive Officer. Transactions between segments, if any, are eliminated in consolidation. Our corporate office provides general and administrative services, as well as support services, to our four operating segments. Management allocates certain shared costs among segments for selling, general and administrative expenses and depreciation expense. Segment information for the years ended September 30, 2023, 2022 and 2021 is as follows: Year Ended September 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 600,776 $ 1,279,504 $ 217,353 $ 279,594 $ — $ 2,377,227 Cost of services 494,964 1,026,524 162,905 248,295 — 1,932,688 Gross profit 105,812 252,980 54,448 31,299 — 444,539 Selling, general and administrative 54,344 169,737 26,260 25,225 23,059 298,625 Contingent consideration — 277 — — — 277 Loss (gain) on sale of assets 12 69 (1,029) (13,198) 7 (14,139) Income (loss) from operations $ 51,456 $ 82,897 $ 29,217 $ 19,272 $ (23,066) $ 159,776 Other data: Depreciation and amortization expense $ 2,215 $ 19,281 $ 5,198 $ 1,640 $ 1,073 $ 29,407 Capital expenditures $ 2,203 $ 9,114 $ 2,767 $ 2,525 $ 1,058 $ 17,667 Total assets $ 205,924 $ 386,829 $ 180,871 $ 87,677 $ 120,299 $ 981,600 Year Ended September 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 559,777 $ 1,131,414 $ 167,113 $ 308,504 $ — $ 2,166,808 Cost of services 490,959 928,161 138,444 290,314 — 1,847,878 Gross profit 68,818 203,253 28,669 18,190 — 318,930 Selling, general and administrative 46,717 144,100 25,129 30,557 16,211 262,714 Contingent consideration — 277 — — — 277 Loss (gain) on sale of assets 12 20 (46) (55) — (69) Income (loss) from operations $ 22,089 $ 58,856 $ 3,586 $ (12,312) $ (16,211) $ 56,008 Other data: Depreciation and amortization expense $ 1,550 $ 15,617 $ 5,575 $ 2,561 $ 165 $ 25,468 Capital expenditures $ 2,004 $ 10,054 $ 14,729 $ 1,890 $ 578 $ 29,255 Total assets $ 210,875 $ 394,757 $ 161,828 $ 114,529 $ 52,720 $ 934,709 Year Ended September 30, 2021 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 445,968 $ 687,347 $ 146,980 $ 256,198 $ — $ 1,536,493 Cost of services 361,197 553,546 106,048 227,704 — 1,248,495 Gross profit 84,771 133,801 40,932 28,494 — 287,998 Selling, general and administrative 41,373 92,761 23,966 28,172 15,979 202,251 Contingent consideration — 211 — — — 211 Loss (gain) on sale of assets (4) 86 (10) (92) (27) (47) Income (loss) from operations $ 43,402 $ 40,743 $ 16,976 $ 414 $ (15,952) $ 85,583 Other data: Depreciation and amortization expense $ 1,394 $ 11,490 $ 6,170 $ 2,709 $ 151 $ 21,914 Capital expenditures $ 963 $ 2,829 $ 2,067 $ 1,453 $ 89 $ 7,401 Total assets $ 164,699 $ 329,691 $ 137,628 $ 87,577 $ 47,027 $ 766,622 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | 12. STOCKHOLDERS’ EQUITY Equity Incentive Plan The Company’s 2006 Equity Incentive Plan, as amended and restated (the “Equity Incentive Plan”), provides for grants of stock options as well as grants of stock, including restricted stock. Approximately 3.0 million shares of common stock are authorized for issuance under the Equity Incentive Plan, of which approximately 619,735 shares were available for issuance at September 30, 2023. We measure and record compensation expense for all share-based payment awards based on the fair value of the awards granted at the date of grant. The fair value of restricted stock awards and phantom stock unit awards is determined based on the number of shares granted and the closing price of IES’s common stock on the date of grant. For awards vesting upon achievement of a market condition, the likelihood of achieving that market condition is considered in determining the fair value of the grant, which we expense ratably over the vesting period. For awards vesting upon achievement of a performance condition, we record expense based on the grant date fair value when it becomes probable the performance condition will be achieved. Forfeitures are recorded in the period in which they occur. The resulting compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Stock Repurchase Program In 2015, our Board authorized a stock repurchase program for the purchase from time to time of up to 1.5 million shares of the Company’s common stock, and in 2019, our Board authorized the repurchase from time to time of an additional 1.0 million shares of the Company's common stock under the stock repurchase program. In December 2022, our Board of Directors terminated our previous stock repurchase program and authorized a new $40,000 stock repurchase program. Share purchases are made for cash in open market transactions at prevailing market prices or in privately negotiated transactions or otherwise. The timing and amount of purchases under the program are determined based upon prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. All or part of the repurchases may be implemented under a Rule 10b5-1 trading plan, which allows repurchases under predetermined terms at times when the Company might otherwise be prevented from purchasing under insider trading laws or because of self-imposed blackout periods. The program does not require the Company to purchase any specific number of shares and may be modified, suspended or reinstated at any time at the Company’s discretion and without notice. We repurchased 224,013 and 511,600 shares of our common stock in open market transactions at an average price of $31.06 and $32.02 per share during the years ended September 30, 2023 and 2022, respectively. Treasury Stock During the year ended September 30, 2023, we issued 105,755 shares of treasury stock to employees and repurchased 32,158 shares of common stock from our employees to satisfy statutory tax withholding requirements upon the vesting of certain performance phantom stock units under the Equity Incentive Plan. We also repurchased 224,013 shares of common stock on the open market pursuant to our stock repurchase program, and 266 shares were forfeited by former employees and returned to treasury stock. During the year ended September 30, 2023, we issued 3,000 unrestricted shares to satisfy the exercise of outstanding options. During the year ended September 30, 2022, we issued 157,167 shares of treasury stock to employees and repurchased 45,198 shares of common stock from our employees to satisfy statutory tax withholding requirements upon the vesting of certain performance phantom stock units under the Equity Incentive Plan. We also repurchased 511,600 shares of common stock on the open market pursuant to our stock repurchase program. During the year ended September 30, 2022, we issued 9,000 unrestricted shares to satisfy the exercise of outstanding options. Restricted Stock A summary of restricted stock awards for the years ended September 30, 2023, 2022 and 2021 is provided in the table below: Year Ended September 30, 2023 2022 2021 Unvested at beginning of year 13,639 16,757 38,936 Granted — — — Vested (13,373) (3,118) (8,183) Forfeited (266) — (13,996) Unvested at end of year — 13,639 16,757 The fair value of shares vesting during the years ended September 30, 2023, 2022 and 2021 was $461, $150 and $308, respectively. Fair value was calculated as the number of shares vested times the market price of shares on the date of vesting. At September 30, 2023, we did not have any remaining unvested restricted stock awards or related unamortized compensation cost. All the restricted shares granted under the Equity Incentive Plan (vested or unvested) participate in dividends issued to common shareholders, if any. Director Phantom Stock Units Director phantom stock units (“Director PSUs”) are primarily granted to the members of the Board of Directors as part of their overall compensation. These Director PSUs are contractual rights to receive one share of the Company's common stock and are paid via unrestricted stock grants to each director upon their departure from the Board of Directors. We record compensation expense for the full value of the grant on the date of grant. Employee Phantom Stock Units An employee phantom stock unit (an “Employee PSU”) is a contractual right to receive one share of the Company’s common stock. Depending on the terms of each grant, Employee PSUs may vest upon the achievement of certain specified performance objectives and continued performance of services, or may vest based on continued performance of services through the vesting date. As of September 30, 2022, the Company had outstanding Employee PSUs, which, subject to the achievement of certain performance metrics, could have resulted in the issuance of 315,961 shares of common stock. During the year ended September 30, 2023, 13,583 Employee PSUs were forfeited and 105,755 vested, and the Company granted additional Employee PSUs, which, subject to the achievement of certain performance metrics, could result in the issuance of 129,189 shares of common stock. As of September 30, 2023, a maximum of 325,813 shares of common stock may be issued under outstanding Employee PSUs. The vesting of these awards is subject to either the achievement of specified levels of cumulative net income before taxes (a performance condition) or specified stock price levels (a market condition) and continued performance of services, or based on continued performance of services through the vesting date alone. For stock awards where vesting depends on achievement of a performance condition, we record expense when we conclude it is probable that the performance condition will be met. At September 30, 2023, it is deemed probable that the portion of the awards that vest based on performance conditions will vest. A summary of the compensation expense related to our stock awards recognized during the years ended September 30, 2023, 2022 and 2021 is provided in the table below: Year Ended September 30, 2023 2022 2021 Restricted stock awards $ 23 $ 137 $ 145 Director PSUs $ 386 $ 386 $ 376 Employee PSUs $ 3,963 $ 3,251 $ 2,986 |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 13. RELATED-PARTY TRANSACTIONS The Company is a party to a sublease agreement with Tontine Associates, for corporate office space in Greenwich, Connecticut. In December 2022, the Company entered into an amendment of the sublease agreement, which was set to terminate on February 28, 2023, to extend the term of the agreement through August 31, 2024 and to increase the monthly payments from approximately $8 to approximately $9 effective March 1, 2023. Payments by the Company are at a rate consistent with that paid by Tontine Associates to its landlord. See Note 3, “Con trolling Shareholder” for additional information regarding Tontine. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 14. EMPLOYEE BENEFIT PLANS 401(k) Plan In November 1998, we established the IES Holdings, Inc. 401(k) Retirement Savings Plan. All full-time IES employees are eligible to participate on the first day of the month subsequent to completing sixty days of service and attaining age twenty-one. Participants become vested in our matching contributions following three years of service. We also maintain several subsidiary retirement savings plans. We recognized $5,309, $4,494, and $3,386 in matching expenses in fiscal years 2023, 2022 and 2021, respectively. Executive Savings Plan Under the Executive Deferred Compensation Plan adopted on July 1, 2004 (the “Executive Savings Plan”), certain employees are permitted to defer a portion (up to 75%) of their base salary and/or bonus for a plan year. The Human Resources and Compensation Committee of the Board of Directors may, in its sole discretion, credit one or more participants with an employer deferral (contribution) in such amount as the Committee may choose (“Employer Contribution”). The Employer Contribution, if any, may be a fixed dollar amount, a fixed percentage of the participant’s compensation, base salary, or bonus, or a “matching” amount with respect to all or part of the participant’s elective deferrals for such plan year, and/or any combination of the foregoing as the Committee may choose. No compensation earned during the years ended September 30, 2023, 2022 and 2021 was deferred under this plan. Multiemployer Pension Plan The Infrastructure Solutions segment participates in a multiemployer direct benefit pension plan for employees covered under one of our collective bargaining agreements. We do not administer the plan. We do not significantly participate in this plan. As of December 31, 2022, this plan was funded at 90.93%. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 15. FAIR VALUE MEASUREMENTS Fair value is considered the price to sell an asset, or transfer a liability, between market participants on the measurement date. Fair value measurements assume that (1) the asset or liability is exchanged in an orderly manner, (2) the exchange is in the principal market for that asset or liability, and (3) the market participants are independent, knowledgeable, able and willing to transact an exchange. Fair value accounting and reporting establishes a framework for measuring fair value by creating a hierarchy for observable independent market inputs and unobservable market assumptions and expands disclosures about fair value measurements. Judgment is required to interpret the market data used to develop fair value estimates. As such, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current exchange. The use of different market assumptions and/or estimation methods could have a material effect on the estimated fair value. At September 30, 2023, financial assets and liabilities measured at fair value on a recurring basis were limited to our Executive Savings Plan, under which certain employees are permitted to defer a portion of their base salary and/or bonus for a Plan Year (as defined in the plan), equity securities held for sale, and contingent consideration liabilities related to certain of our acquisitions. Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and 2022, are summarized in the following tables by the type of inputs applicable to the fair value measurements: September 30, 2023 Total Fair Value Quoted Prices (Level 1) Significant Unobservable (Level 3) Executive savings plan assets $ 783 $ 783 $ — Executive savings plan liabilities (657) (657) — Contingent consideration liability (4,465) — (4,465) September 30, 2022 Total Fair Value Quoted Prices (Level 1) Significant Unobservable (Level 3) Executive savings plan assets $ 706 $ 706 $ — Equity securities 1,937 $ 1,937 — Executive savings plan liabilities (585) (585) — Contingent consideration liability (4,323) — (4,323) In fiscal year 2021, we entered into a contingent consideration arrangement related to the acquisition of Bayonet. At September 30, 2023, we estimated the fair value of this contingent consideration liability at $4,465. The table below presents the fair value of this obligation, which used significant unobservable inputs (Level 3). Contingent Consideration Agreement Fair value at September 30, 2021 $ (4,181) Net adjustments to fair value (142) Fair value at September 30, 2022 $ (4,323) Net adjustments to fair value (142) Fair value at September 30, 2023 $ (4,465) Below is a description of the inputs used to value the assets summarized in the preceding tables: Level 1 — Inputs represent unadjusted quoted prices for identical assets exchanged in active markets. Level 2 — Inputs include directly or indirectly observable inputs other than Level 1 inputs such as quoted prices for similar assets exchanged in active or inactive markets; quoted prices for identical assets exchanged in inactive markets; and other inputs that are considered in fair value determinations of the assets. Level 3 — Inputs include unobservable inputs used in the measurement of assets. Management is required to use its own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets or related observable inputs that can be corroborated at the measurement date. |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 16. INVENTORY Inventories consist of the following components: September 30, 2023 2022 Raw materials $ 14,334 $ 12,504 Work in process 12,939 8,218 Finished goods 3,399 2,129 Parts and supplies 64,983 73,482 Total inventories $ 95,655 $ 96,333 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 17. GOODWILL AND INTANGIBLE ASSETS Goodwill The following summarizes the carrying value of goodwill by segment at September 30, 2023, which was unchanged during the years ended September 30, 2023 and 2022: Communications Residential Infrastructure Solutions Commercial & Industrial Total Balance at September 30, 2023 $ 2,816 $ 51,370 $ 38,209 $ — $ 92,395 Based on the results of our annual goodwill impairment assessment at September 30, 2023, we concluded the fair value of each of our reporting units exceeded its book value, and therefore we recorded no impairment charges for the year ended September 30, 2023. As of September 30, 2023 and 2022, we had accumulated impairment losses of $6,976 related to our Commercial & Industrial segment. Intangible Assets Intangible assets consist of the following: September 30, 2023 Estimated Useful Lives (in Years) Gross Carrying Amount Accumulated Amortization Net Trademarks/trade names 5 - 20 $ 14,621 $ (6,973) $ 7,648 Technical library 20 400 (201) 199 Customer relationships 6 - 15 91,426 (43,065) 48,361 Non-competition arrangements 5 40 (40) — Backlog and construction contracts 1 4,958 (4,958) — Total $ 111,445 $ (55,237) $ 56,208 September 30, 2022 Estimated Useful Lives (in Years) Gross Carrying Amount Accumulated Amortization Net Trademarks/trade names 5 - 20 $ 15,262 $ (4,589) $ 10,673 Technical library 20 400 (181) 219 Customer relationships 6 - 15 96,699 (35,662) 61,037 Non-competition arrangements 5 40 (33) 7 Backlog and construction contracts 1 4,958 (4,958) — Total $ 117,359 $ (45,423) $ 71,936 For the years ended September 30, 2023, 2022 and 2021, amortization expense of intangible assets was $13,684, $13,666 and $13,191, respectively. Our estimated future amortization expense for years ending September 30 is as follows: Year Ending September 30, 2024 $ 12,265 2025 12,081 2026 11,760 2027 8,391 2028 5,416 Thereafter 6,295 Total $ 56,208 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 18. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time we are a party to various claims, lawsuits and other legal proceedings that arise in the ordinary course of business. We maintain various insurance coverages to minimize financial risk associated with these proceedings. None of these proceedings, separately or in the aggregate, are expected to have a material adverse effect on our financial position, results of operations or cash flows. With respect to all such proceedings, we record reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. We expense routine legal costs related to these proceedings as they are incurred. In the course of performing work as a subcontractor, from time to time we may be involved in projects which are the subject of contractual disputes between the general contractor and project owner, or between us and the general contractor. In such cases, payment of amounts owed to us by the general contractor may be delayed as contractual disputes are resolved through mediation, arbitration, or litigation. Such disputes may cause us to incur legal fees and other expenses to enforce our contractual rights, and we may not prevail in recovering all amounts to which we believe we are contractually entitled. At September 30, 2022, we had an aggregate $10,451 of trade accounts receivable, against which we had recorded a reserve of $3,095, where payment had been delayed as a result of contractual disputes between the general contractor and project owner on certain projects. All of these disputes were settled during the year ended September 30, 2023, and none of these receivables or associated reserves remained outstanding at September 30, 2023. Risk Management We retain the risk for workers’ compensation, employer’s liability, automobile liability, construction defects, general liability and employee group health claims, as well as pollution coverage, resulting from uninsured deductibles per accident or occurrence which are generally subject to annual aggregate limits. Our general liability program provides coverage for bodily injury and property damage. In many cases, we insure third parties, including general contractors, as additional insured parties under our insurance policies. Losses are accrued based upon our known claims incurred and an estimate of claims incurred but not reported. As a result, many of our claims are effectively self-insured. Many claims against our insurance are in the form of litigation. At September 30, 2023 and 2022, we had $7,726 and $7,693, respectively, accrued for self-insurance liabilities. We are also subject to construction defect liabilities, primarily within our Residential segment. Because these accruals are based on judgment and estimates, and involve variables that are inherently uncertain, such as the outcome of litigation and an assessment of insurance coverage, there can be no assurance that the ultimate liability will not be higher or lower than such estimates or that the timing of payments will not create liquidity issues for the Company. Some of the underwriters of our casualty insurance program require us to post letters of credit as collateral. This is common in the insurance industry. To date, we have not had a situation where an underwriter has had reasonable cause to effect payment under a letter of credit. At September 30, 2023 and 2022, we utilized $4,166 and $3,878, respectively, of our outstanding letters of credit to collateralize our insurance program. Surety As of September 30, 2023, the estimated cost to complete our bonded projects was approximately $151,186. We evaluate our bonding requirements on a regular basis, including the terms offered by our sureties. We believe the bonding capacity presently provided by our current sureties is adequate for our current operations and will be adequate for our operations for the foreseeable future. Posting letters of credit in favor of our sureties reduces the borrowing availability under our revolving credit facility. Other Commitments and Contingencies Some of our customers and vendors require us to post letters of credit, or provide intercompany guarantees, as a means of guaranteeing performance under our contracts and ensuring payment by us to subcontractors and vendors. If our customer has reasonable cause to effect payment under a letter of credit, we would be required to reimburse our creditor for the letter of credit. |
Business Combinations and Dives
Business Combinations and Divestitures | 12 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 19. BUSINESS COMBINATIONS AND DIVESTITURES We completed no acquisitions in fiscal years 2023 and 2022. We completed four acquisitions in fiscal year 2021 for total aggregate cash consideration of $92,463. In November 2020, we acquired both Wedlake Fabricating, Inc., a Tulsa, Oklahoma-based manufacturer of custom generator enclosures that are primarily used by data centers and large commercial and industrial facilities, and K.E.P. Electric, Inc., a Batavia, Ohio-based electrical contractor specializing in the design and installation of electrical systems for single-family housing and multi-family developments. In December 2020, we acquired an 80% interest in Bayonet Plumbing, Heating & Air-Conditioning, LLC, a Hudson, Florida-based provider of residential heating, ventilation and air conditioning ("HVAC") and plumbing installation and maintenance services. In May 2021, we acquired an 80% ownership interest in Edmonson Electric, LLC, a Land O'Lakes, Florida-based provider of residential electric, low voltage, and HVAC installation services. Total aggregate cash consideration for these acquisitions was $92,463, of which $10,916 was paid into escrow pending discharge of the acquired companies' indebtedness under the Paycheck Protection Program (the "PPP") established by the Coronavirus Aid, Relief, and Economic Security Act and implemented by the U.S. Small Business Administration. Loans made under the PPP are eligible to be forgiven if certain criteria are met. During the year ended September 30, 2021, all PPP loans were forgiven, and escrow payments were distributed to the respective sellers. In addition to the cash consideration, the purchase price included contingent consideration with respect to the acquisition of Bayonet of up to $4,500 due in December 2023. Amounts to be paid are contingent on earnings achieved over a three year period, and accrue interest on the $4,500 at a rate of 3%, paid quarterly. This contingent liability was valued at $4,074 as of the date of the acquisition. Gain on sale of assets |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to IES Holdings, Inc. | $ 108,288 | $ 34,762 | $ 66,658 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On August 31, 2023, Jeffrey L. Gendell, Chairman and Chief Executive Officer of the Company, adopted a Rule 10b5-1 trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. Mr. Gendell’s plan, which provides for the potential sale of up to 200,000 shares of the Company’s common stock, expires upon the earlier of August 15, 2024 and the date all shares subject to the plan have been sold. |
Name | Jeffrey L. Gendell |
Title | Chairman and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | August 31, 2023 |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Aggregate Available | 200,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of IES Holdings, Inc. and its consolidated subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used in our revenue recognition of construction in progress, fair value assumptions in accounting for business combinations, stock-based compensation, reserves for legal matters, and realizability of deferred tax assets and unrecognized tax benefits. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Inventories Inventories consist of raw materials, work in process, finished goods, and parts and supplies held for use in the ordinary course of business. Inventory is valued at the lower of cost or net realizable value generally using the first-in, first-out (FIFO) method. When circumstances dictate, we write down inventory to its estimated net realizable value based on assumptions about future demand, market conditions, plans for disposal, and physical condition of the product. Where shipping and handling costs on inventory purchases are borne by us, these charges are included in inventory and charged to cost of services upon use in our projects or the providing of services. Property and Equipment Additions of property and equipment are recorded at cost, and depreciation is computed using the straight-line method over the estimated useful life of the related asset. Leasehold improvements are capitalized and depreciated over the lesser of the life of the lease or the estimated useful life of the asset. Costs associated with software developed or obtained for internal use, including third party development fees incurred during the application development stage and software licenses, are capitalized and amortized on a straight-line basis over the estimated useful life of the software. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing property and equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the capitalized cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statements of comprehensive income in the caption (gain) loss on sale of assets. Goodwill Goodwill attributable to each reporting unit is tested for impairment either by comparing the fair value of each reporting unit with its carrying value or by a qualitative assessment. These impairment tests are required to be performed at least annually. On an ongoing basis (absent any impairment indicators), we perform an impairment test annually using a measurement date of September 30. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of a reporting unit is greater than its fair value, then we perform an impairment test by calculating the fair value of the reporting unit and comparing this calculated fair value with the carrying value of the reporting unit. We estimate the fair value of the reporting unit based on both a market approach and an income approach, using discounted estimated future cash flows. The market approach uses market multiples of enterprise value to earnings before interest, taxes, depreciation and amortization for comparable publicly traded companies. The income approach relies on significant estimates for future cash flows, projected long-term growth rates, and the weighted average cost of capital. Intangible Assets Intangible assets with definite lives are amortized over their estimated useful lives based on expected economic benefit with no residual value. Debt Issuance Costs Debt issuance costs are included as a reduction of our debt outstanding, or alternately classified within other non-current assets if we have no borrowings drawn on our credit facility at the balance sheet date, and are amortized to interest expense over the scheduled maturity of the debt. Amortization expense of debt issuance costs was $268, $199 and $198, respectively, for the years ended September 30, 2023, 2022 and 2021. Remaining unamortized capitalized debt issuance costs were $836 and $1,031 at September 30, 2023, and 2022, respectively. Revenue Recognition Revenue is recognized from a contract with a customer when: (i) it has approval and commitment from both parties, (ii) the rights of the parties are identified, (iii) payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. We consider the start of a project to be when the above criteria have been met and we have written authorization from the customer to proceed. We recognize revenue on project contracts over time using the percentage of completion method. Project contracts generally provide that customers accept completion of progress to date and compensate us for services rendered measured in terms of units installed, hours expended or some other measure of progress. We recognize revenue on both signed contracts and change orders. A discussion of our treatment of claims and unapproved change orders is described later in this section. Percentage of completion for construction contracts is measured principally by the percentage of costs incurred and accrued to date for each contract to the estimated total cost for each contract at completion. We generally consider contracts to be substantially complete upon departure from the work site and acceptance by the customer. Contract costs include all direct material, labor and insurance costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Changes in job performance, job conditions, estimated contract costs and profitability and final contract settlements can result in change orders under which the customer agrees to pay additional contract price. Revisions can also result in claims we might make against the customer to recover additional costs that have not been resolved through change orders with the customer. We do not recognize revenue or margin based on change orders or claims if it is probable such revenue will be reversed. The amount of revenue associated with unapproved change orders and claims was immaterial for the years ended September 30, 2023, 2022 and 2021. Provisions for total estimated losses on uncompleted contracts are made in the period in which such losses are determined. The balances billed but not paid by customers pursuant to retainage provisions in project contracts are typically due upon completion of the contracts and acceptance by the customer. Based on our experience, the retention balance at each balance sheet date will be collected within the subsequent fiscal year. Certain divisions in the Residential and Infrastructure Solutions segments recognize revenue at the completion of the contract ("completed contract") under the right to invoice practical expedient because the duration of their contracts is short in nature. We recognize revenue on completed contracts when the project is complete and billable to the customer. Accounts Receivable and Allowance for Credit Losses As described below under “Accounting Standards Recently Adopted”, we adopted the new accounting standard for measuring credit losses effective October 1, 2020. We record accounts receivable for all amounts billed and not collected and amounts for which we have an unconditional right to bill our customers. Additionally, we provide an allowance for credit losses based on historical company-specific uncollectable accounts, as well as current and expected market conditions. From time to time, we establish additional allowance for credit losses for financial asset balances with specific customers where collectability has been determined to be improbable based on specific facts and circumstances. Such allowances are established as deemed necessary in the period such determination is made. As is common in our industry, some of these receivables are in litigation or require us to exercise our contractual lien rights in order to collect. Our allowance for credit losses at September 30, 2023 and 2022 was $1,649 and $5,361, respectively. In calculating our expected credit losses, we consider trade receivables, retainage, and costs and estimated earnings in excess of billings, all of which constitute a homogenous portfolio, and therefore, to measure the expected credit loss, they are grouped together. We have elected to calculate an expected credit loss based on loss rates from historical data. Each segment groups financial assets with similar risk characteristics and collectively assesses the expected credit losses. If an individual asset experiences credit deterioration to the extent the credit risk is no longer characteristic of the other assets in the group, it will be analyzed individually. The loss rates for our portfolios include our history of credit loss expense, the aging of our receivables, our expectation of payments and adjustment for forward-looking factors specific to the macroeconomic trends in the markets we serve. Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in equity during a period except those resulting from investments by and distributions to stockholders. Income Taxes We follow the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recorded for the future income tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities, and are measured using enacted tax rates and laws. We evaluate valuation allowances established for deferred tax assets for which future realization is uncertain on a quarterly basis. In assessing the realizability of deferred tax assets, we must consider whether it is more likely than not some portion, or all, of the deferred tax assets will not be realized. We consider all available evidence, both positive and negative, in determining whether a valuation allowance is required. At September 30, 2023, we concluded, based upon the assessment of positive and negative evidence, that it is more likely than not that the Company will generate sufficient taxable income to realize net deferred tax assets of $20,383. We considered the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income is different from these estimates, our results could be affected. We record reserves for income taxes related to certain tax positions when management considers it more likely than not that additional taxes may be due in excess of amounts reflected on income tax returns filed. When recording these reserves, we assume that taxing authorities have full knowledge of the position and all relevant facts. We continually review exposure to additional tax obligations, and as further information is known or events occur, changes in tax reserves may be recorded. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and included in the provision for income taxes. Fair Value of Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and a loan agreement. We believe that the carrying value of financial instruments approximates their fair value due to their short-term nature. The carrying value of our debt approximates fair value, as debt incurs interest at a variable rate. Noncontrolling Interest In connection with our acquisitions of Edmonson Electric, LLC (“Edmonson”) and Bayonet Plumbing, Heating & Air-Conditioning, LLC (“Bayonet”) in fiscal 2021, NEXT Electric, LLC (“NEXT”) in fiscal 2017, and STR Mechanical, LLC (“STR”) in fiscal 2016, we acquired an 80 percent interest in each of the entities, with the remaining 20 percent interest in each such entity being retained by the respective third party sellers. The interests retained by those third party sellers are identified on our Consolidated Balance Sheets as noncontrolling interest, classified outside of permanent equity. Under the terms of each entity’s operating agreement, after five years from the date of the acquisition, we may elect to purchase, or the third party seller may require us to purchase, part or all of the remaining 20 percent interest in the applicable entity. The purchase price is variable, based on a multiple of earnings as defined in the operating agreements. Therefore, this noncontrolling interest is carried at the greater of the balance determined under Accounting Standards Codification (“ASC”) 810 and the redemption amounts assuming the noncontrolling interests were redeemable at the balance sheet date. During the year ended September 30, 2021, we acquired the noncontrolling interest in STR for $1,188. We sold 100% of our interests in STR in October 2022. If all of the noncontrolling interests remaining outstanding at September 30, 2023 had been redeemable at that date, the redemption amount would have been $49,951. For the year ended September 30, 2023, we recorded a decrease to Retained Earnings of $15,701 to increase the carrying amount of noncontrolling interest in NEXT, Edmonson and Bayonet to their redemption amounts. For the year ended September 30, 2022, we recorded a decrease to Retained Earnings of $4,699 to increase the carrying amount of noncontrolling interest in NEXT and Edmonson to their redemption amounts. Leases We enter into various contractual arrangements for the right to use facilities, vehicles and equipment. We evaluate whether each of these arrangements contains a lease and classify all identified leases as either operating or finance. If the arrangement is subsequently modified, we re-evaluate our classification. The lease term generally ranges from two to ten years for facilities and three to five years for vehicles and equipment. Our lease terms may include the exercise of renewal or termination options when it is reasonably certain these options will be exercised. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Upon commencement of the lease, we recognize a lease liability and corresponding right-of-use (“ROU”) asset for all leases with an initial term greater than twelve months. Lease liabilities represent the present value of our future lease payments over the expected lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate as the discount rate in calculating the present value of the lease payments. The incremental borrowing rate is determined by identifying a synthetic credit rating for the consolidated company, where treasury functions are centrally managed, and adjusting the interest rates from associated indexes for differences in credit risk and interest rate risk. We have elected to combine the lease and nonlease components in the recognition of our lease liabilities across all classes of underlying assets. ROU assets represent our right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability with adjustments for prepaid or accrued rent, lease incentives or unamortized initial direct costs. Costs associated with ROU assets are recognized on a straight-line basis over the term of the lease. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations. Certain lease contracts include obligations to pay for other services, such as operations and maintenance. Where the costs of these services can be identified as fixed or fixed-in-substance, the costs are included as part of the future lease payments. If the cost is not fixed at the inception of the lease, the cost is recorded as a variable cost in the period incurred. Accounting Standards Recently Adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This update is effective for fiscal years beginning after December 15, 2020 and for interim periods within that year. Early adoption is permitted. We adopted this standard on October 1, 2021 with immaterial impact on our Consolidated Financial Statements. In June 2016, FASB issued Accounting Standard Update No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”), which requires companies to consider historical experiences, current market conditions and reasonable and supportable forecasts in the measurement of expected credit losses, with further clarifications made in April 2019 and May 2019 with the issuances of Accounting Standard Updates No. 2019-04 and 2019-05. This update is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. We adopted this standard on October 1, 2020, using a modified retrospective transition method through a cumulative-effect adjustment to beginning retained earnings in the period of adoption. As a result, we recorded an increase in the Allowance for Credit Losses of $284, an increase to Deferred Tax Assets of $70, and a decrease to Retained Earnings of $214. |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and a loan agreement. We believe that the carrying value of financial instruments approximates their fair value due to their short-term nature. The carrying value of our debt approximates fair value, as debt incurs interest at a variable rate. |
Lessee, Leases | Leases We enter into various contractual arrangements for the right to use facilities, vehicles and equipment. We evaluate whether each of these arrangements contains a lease and classify all identified leases as either operating or finance. If the arrangement is subsequently modified, we re-evaluate our classification. The lease term generally ranges from two to ten years for facilities and three to five years for vehicles and equipment. Our lease terms may include the exercise of renewal or termination options when it is reasonably certain these options will be exercised. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Upon commencement of the lease, we recognize a lease liability and corresponding right-of-use (“ROU”) asset for all leases with an initial term greater than twelve months. Lease liabilities represent the present value of our future lease payments over the expected lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate as the discount rate in calculating the present value of the lease payments. The incremental borrowing rate is determined by identifying a synthetic credit rating for the consolidated company, where treasury functions are centrally managed, and adjusting the interest rates from associated indexes for differences in credit risk and interest rate risk. We have elected to combine the lease and nonlease components in the recognition of our lease liabilities across all classes of underlying assets. ROU assets represent our right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability with adjustments for prepaid or accrued rent, lease incentives or unamortized initial direct costs. Costs associated with ROU assets are recognized on a straight-line basis over the term of the lease. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations. Certain lease contracts include obligations to pay for other services, such as operations and maintenance. Where the costs of these services can be identified as fixed or fixed-in-substance, the costs are included as part of the future lease payments. If the cost is not fixed at the inception of the lease, the cost is recorded as a variable cost in the period incurred. |
Noncontrolling Interest Policy | Noncontrolling Interest In connection with our acquisitions of Edmonson Electric, LLC (“Edmonson”) and Bayonet Plumbing, Heating & Air-Conditioning, LLC (“Bayonet”) in fiscal 2021, NEXT Electric, LLC (“NEXT”) in fiscal 2017, and STR Mechanical, LLC (“STR”) in fiscal 2016, we acquired an 80 percent interest in each of the entities, with the remaining 20 percent interest in each such entity being retained by the respective third party sellers. The interests retained by those third party sellers are identified on our Consolidated Balance Sheets as noncontrolling interest, classified outside of permanent equity. Under the terms of each entity’s operating agreement, after five years from the date of the acquisition, we may elect to purchase, or the third party seller may require us to purchase, part or all of the remaining 20 percent interest in the applicable entity. The purchase price is variable, based on a multiple of earnings as defined in the operating agreements. Therefore, this noncontrolling interest is carried at the greater of the balance determined under Accounting Standards Codification (“ASC”) 810 and the redemption amounts assuming the noncontrolling interests were redeemable at the balance sheet date. During the year ended September 30, 2021, we acquired the noncontrolling interest in STR for $1,188. We sold 100% of our interests in STR in October 2022. If all of the noncontrolling interests remaining outstanding at September 30, 2023 had been redeemable at that date, the redemption amount would have been $49,951. For the year ended September 30, 2023, we recorded a decrease to Retained Earnings of $15,701 to increase the carrying amount of noncontrolling interest in NEXT, Edmonson and Bayonet to their redemption amounts. For the year ended September 30, 2022, we recorded a decrease to Retained Earnings of $4,699 to increase the carrying amount of noncontrolling interest in NEXT and Edmonson to their redemption amounts. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy | Accounts Receivable and Allowance for Credit Losses As described below under “Accounting Standards Recently Adopted”, we adopted the new accounting standard for measuring credit losses effective October 1, 2020. We record accounts receivable for all amounts billed and not collected and amounts for which we have an unconditional right to bill our customers. Additionally, we provide an allowance for credit losses based on historical company-specific uncollectable accounts, as well as current and expected market conditions. From time to time, we establish additional allowance for credit losses for financial asset balances with specific customers where collectability has been determined to be improbable based on specific facts and circumstances. Such allowances are established as deemed necessary in the period such determination is made. As is common in our industry, some of these receivables are in litigation or require us to exercise our contractual lien rights in order to collect. Our allowance for credit losses at September 30, 2023 and 2022 was $1,649 and $5,361, respectively. In calculating our expected credit losses, we consider trade receivables, retainage, and costs and estimated earnings in excess of billings, all of which constitute a homogenous portfolio, and therefore, to measure the expected credit loss, they are grouped together. We have elected to calculate an expected credit loss based on loss rates from historical data. Each segment groups financial assets with similar risk characteristics and collectively assesses the expected credit losses. If an individual asset experiences credit deterioration to the extent the credit risk is no longer characteristic of the other assets in the group, it will be analyzed individually. The loss rates for our portfolios include our history of credit loss expense, the aging of our receivables, our expectation of payments and adjustment for forward-looking factors specific to the macroeconomic trends in the markets we serve. |
Revenue from Contract with Customer | Revenue Recognition Revenue is recognized from a contract with a customer when: (i) it has approval and commitment from both parties, (ii) the rights of the parties are identified, (iii) payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. We consider the start of a project to be when the above criteria have been met and we have written authorization from the customer to proceed. We recognize revenue on project contracts over time using the percentage of completion method. Project contracts generally provide that customers accept completion of progress to date and compensate us for services rendered measured in terms of units installed, hours expended or some other measure of progress. We recognize revenue on both signed contracts and change orders. A discussion of our treatment of claims and unapproved change orders is described later in this section. Percentage of completion for construction contracts is measured principally by the percentage of costs incurred and accrued to date for each contract to the estimated total cost for each contract at completion. We generally consider contracts to be substantially complete upon departure from the work site and acceptance by the customer. Contract costs include all direct material, labor and insurance costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Changes in job performance, job conditions, estimated contract costs and profitability and final contract settlements can result in change orders under which the customer agrees to pay additional contract price. Revisions can also result in claims we might make against the customer to recover additional costs that have not been resolved through change orders with the customer. We do not recognize revenue or margin based on change orders or claims if it is probable such revenue will be reversed. The amount of revenue associated with unapproved change orders and claims was immaterial for the years ended September 30, 2023, 2022 and 2021. Provisions for total estimated losses on uncompleted contracts are made in the period in which such losses are determined. The balances billed but not paid by customers pursuant to retainage provisions in project contracts are typically due upon completion of the contracts and acceptance by the customer. Based on our experience, the retention balance at each balance sheet date will be collected within the subsequent fiscal year. Certain divisions in the Residential and Infrastructure Solutions segments recognize revenue at the completion of the contract ("completed contract") under the right to invoice practical expedient because the duration of their contracts is short in nature. We recognize revenue on completed contracts when the project is complete and billable to the customer. |
Intangible Assets, Finite-Lived, Policy | Intangible Assets |
Goodwill and Intangible Assets, Goodwill, Policy | Goodwill Goodwill attributable to each reporting unit is tested for impairment either by comparing the fair value of each reporting unit with its carrying value or by a qualitative assessment. These impairment tests are required to be performed at least annually. On an ongoing basis (absent any impairment indicators), we perform an impairment test annually using a measurement date of September 30. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of a reporting unit is greater than its fair value, then we perform an impairment test by calculating the fair value of the reporting unit and comparing this calculated fair value with the carrying value of the reporting unit. |
Deferred Charges, Policy | Debt Issuance Costs Debt issuance costs are included as a reduction of our debt outstanding, or alternately classified within other non-current assets if we have no borrowings drawn on our credit facility at the balance sheet date, and are amortized to interest expense over the scheduled maturity of the debt. Amortization expense of debt issuance costs was $268, $199 and $198, respectively, for the years ended September 30, 2023, 2022 and 2021. Remaining unamortized capitalized debt issuance costs were $836 and $1,031 at September 30, 2023, and 2022, respectively. |
Income Tax, Policy | Income Taxes We follow the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recorded for the future income tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities, and are measured using enacted tax rates and laws. We evaluate valuation allowances established for deferred tax assets for which future realization is uncertain on a quarterly basis. In assessing the realizability of deferred tax assets, we must consider whether it is more likely than not some portion, or all, of the deferred tax assets will not be realized. We consider all available evidence, both positive and negative, in determining whether a valuation allowance is required. At September 30, 2023, we concluded, based upon the assessment of positive and negative evidence, that it is more likely than not that the Company will generate sufficient taxable income to realize net deferred tax assets of $20,383. We considered the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income is different from these estimates, our results could be affected. We record reserves for income taxes related to certain tax positions when management considers it more likely than not that additional taxes may be due in excess of amounts reflected on income tax returns filed. When recording these reserves, we assume that taxing authorities have full knowledge of the position and all relevant facts. We continually review exposure to additional tax obligations, and as further information is known or events occur, changes in tax reserves may be recorded. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and included in the provision for income taxes. |
Comprehensive Income, Policy | Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in equity during a period except those resulting from investments by and distributions to stockholders. |
Inventory, Policy | Inventories Inventories consist of raw materials, work in process, finished goods, and parts and supplies held for use in the ordinary course of business. Inventory is valued at the lower of cost or net realizable value generally using the first-in, first-out (FIFO) method. When circumstances dictate, we write down inventory to its estimated net realizable value based on assumptions about future demand, market conditions, plans for disposal, and physical condition of the product. Where shipping and handling costs on inventory purchases are borne by us, these charges are included in inventory and charged to cost of services upon use in our projects or the providing of services. |
Property, Plant and Equipment, Policy | Property and Equipment Additions of property and equipment are recorded at cost, and depreciation is computed using the straight-line method over the estimated useful life of the related asset. Leasehold improvements are capitalized and depreciated over the lesser of the life of the lease or the estimated useful life of the asset. Costs associated with software developed or obtained for internal use, including third party development fees incurred during the application development stage and software licenses, are capitalized and amortized on a straight-line basis over the estimated useful life of the software. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing property and equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the capitalized cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statements of comprehensive income in the caption (gain) loss on sale of assets. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used in our revenue recognition of construction in progress, fair value assumptions in accounting for business combinations, stock-based compensation, reserves for legal matters, and realizability of deferred tax assets and unrecognized tax benefits. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy | Principles of Consolidation |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Year Ended September 30, 2023 2022 2021 Communications $ 600,776 $ 559,777 $ 445,968 Residential Single-family 961,271 825,505 454,449 Multi-family and Other 318,233 305,909 232,898 Total Residential 1,279,504 1,131,414 687,347 Infrastructure Solutions Industrial Services 46,091 65,686 44,427 Custom Power Solutions 171,262 101,427 102,553 Total Infrastructure Solutions 217,353 167,113 146,980 Commercial & Industrial 279,594 308,504 256,198 Total Revenue $ 2,377,227 $ 2,166,808 $ 1,536,493 Year Ended September 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 404,684 $ 1,279,504 $ 210,547 $ 241,159 $ 2,135,894 Time-and-material 196,092 — 6,806 38,435 241,333 Total revenue $ 600,776 $ 1,279,504 $ 217,353 $ 279,594 $ 2,377,227 Year Ended September 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 367,513 $ 1,131,414 $ 159,994 $ 282,522 $ 1,941,443 Time-and-material 192,264 — 7,119 25,982 225,365 Total revenue $ 559,777 $ 1,131,414 $ 167,113 $ 308,504 $ 2,166,808 Year Ended September 30, 2021 Communications Residential Infrastructure Solutions Commercial & Industrial Total Fixed-price $ 327,496 $ 687,347 $ 139,532 $ 243,546 $ 1,397,921 Time-and-material 118,472 — 7,448 12,652 138,572 Total revenue $ 445,968 $ 687,347 $ 146,980 $ 256,198 $ 1,536,493 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Estimated Useful Lives in Years Year Ended September 30, 2023 2022 Land N/A $ 4,181 $ 4,569 Buildings and improvements 5 - 20 33,753 32,477 Machinery and equipment 3 - 10 65,787 55,917 Information systems 2 - 8 14,508 8,699 Furniture and fixtures 5 - 7 2,507 2,239 Property and equipment, gross $ 120,736 $ 103,901 Less-Accumulated depreciation (58,693) (50,014) Construction in progress 1,367 539 Property and equipment, net $ 63,410 $ 54,426 |
Per Share Information (Tables)
Per Share Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended September 30, 2023 2022 2021 Numerator: Net income attributable to IES Holdings, Inc. $ 108,288 $ 34,762 $ 66,658 Increase in noncontrolling interest (15,701) (4,695) (315) Net income attributable to restricted shareholders of IES Holdings, Inc. (11) (21) (56) Net income attributable to common shareholders of IES Holdings, Inc. $ 92,576 $ 30,046 $ 66,287 Denominator: Weighted average common shares outstanding — basic 20,196,850 20,667,745 20,790,307 Effect of dilutive stock options and non-vested securities 216,182 226,880 296,125 Weighted average common and common equivalent shares outstanding — diluted 20,413,032 20,894,625 21,086,432 Earnings per share attributable to common shareholders of IES Holdings, Inc.: Basic $ 4.58 $ 1.45 $ 3.19 Diluted $ 4.54 $ 1.44 $ 3.15 |
Detail of Certain Balance She_2
Detail of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Detail of Certain Balance Sheet Accounts [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | September 30, 2023 2022 Accounts payable, trade $ 138,591 $ 184,963 Accrued compensation and benefits 90,667 75,190 Accrued insurance liabilities 7,726 7,693 Current operating lease liabilities 19,496 17,319 Other accrued expenses 40,317 31,785 $ 296,797 $ 316,950 |
Schedule of Other Assets [Table Text Block] | September 30, 2023 2022 Executive Savings Plan assets $ 783 $ 706 Securities and equity investments 675 2,447 Right of use asset - finance leases 12,344 10,246 Other 2,345 1,746 Total $ 16,147 $ 15,145 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Year Ended September 30, 2023 2022 Revolving loan (long-term debt) $ — $ 82,659 Debt issuance costs — (1,031) Total debt $ — $ 81,628 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The maturities of our lease liabilities as of September 30, 2023, are as follows: Operating Leases Finance Leases Total 2024 $ 20,020 $ 4,436 $ 24,456 2025 16,239 4,204 20,443 2026 12,662 3,338 16,000 2027 9,362 1,598 10,960 2028 5,043 155 5,198 Thereafter 6,236 — 6,236 Total undiscounted lease payments $ 69,562 $ 13,731 $ 83,293 Less: imputed interest 7,968 1,332 9,300 Present value of lease liabilities $ 61,594 $ 12,399 $ 73,993 |
Lease, Cost | Year Ended September 30, 2023 2022 2021 Operating lease cost $ 18,501 $ 16,000 $ 13,405 Finance lease cost Amortization of lease assets 3,603 1,729 634 Interest on lease liabilities 746 269 119 Finance lease cost 4,349 1,998 753 Short-term lease cost 1,883 2,426 1,575 Variable lease cost 2,805 1,900 1,286 Total lease cost $ 27,538 $ 22,324 $ 17,019 |
Schedule of Cash Flow, Supplemental Disclosures | Other information about lease amounts recognized in our Consolidated Financial Statements is summarized as follows: Year Ended September 30, 2023 2022 2021 Operating cash flows used for operating leases $ 22,022 $ 20,799 $ 15,011 Operating cash flows used for finance leases 746 269 119 Right-of-use assets obtained in exchange for new operating lease liabilities 27,491 31,422 24,606 Right-of-use assets obtained in exchange for new finance lease liabilities 5,973 7,950 2,962 Year Ended September 30, 2023 2022 Weighted-average remaining lease term - operating leases 4.5 years 4.8 years Weighted-average remaining lease term - finance leases 3.4 years 3.9 years Weighted-average discount rate - operating leases 5.1 % 4.0 % Weighted-average discount rate - finance leases 6.0 % 4.7 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended September 30, 2023 2022 2021 Federal: Current $ 27,205 $ 9,401 $ 2 Deferred 4,300 3 11,678 State: Current 6,370 3,445 4,505 Deferred 886 (34) 46 Total provision for income taxes $ 38,761 $ 12,815 $ 16,231 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended September 30, 2023 2022 2021 Provision at the federal statutory rate $ 33,295 $ 11,130 $ 17,830 Increase resulting from: Non-deductible expenses 2,017 1,610 1,086 State income taxes, net of federal deduction 6,338 2,114 3,876 Contingent tax liabilities 396 — — Change in valuation allowance — 283 — Other — 427 — Decrease resulting from: Share-based compensation (332) (665) (715) Noncontrolling interest (2,415) (1,139) (428) Change in valuation allowance (52) — (118) Contingent tax liabilities — (133) (2,898) Component 2 goodwill utilization — (812) (2,241) Other (486) — (161) Total provision for income taxes $ 38,761 $ 12,815 $ 16,231 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | September 30, 2023 2022 Deferred income tax assets: Allowance for credit losses $ 349 $ 1,246 Accrued expenses 18,167 18,645 Net operating loss carryforward 4,224 4,542 Various reserves 1,718 1,318 Equity losses in affiliate — 125 Share-based compensation 1,298 1,142 Capital loss carryforward — 82 Lease asset 14,207 12,534 Other 8,596 4,236 Subtotal 48,559 43,870 Less valuation allowance 823 875 Total deferred income tax assets 47,736 42,995 Deferred income tax liabilities: Property and equipment 2,231 126 Intangible assets 9,984 9,044 Lease liability 14,102 12,500 Other 1,036 806 Total deferred income tax liabilities 27,353 22,476 Net deferred income tax assets $ 20,383 $ 20,519 |
Summary of Income Tax Contingencies [Table Text Block] | Year Ended September 30, 2023 2022 Balance at beginning of period $ 21,746 $ 21,879 Additions for positions of prior years 819 26 Reduction resulting from the lapse of the applicable statutes of limitations (218) (159) Balance at end of period $ 22,347 $ 21,746 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year Ended September 30, 2023 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 600,776 $ 1,279,504 $ 217,353 $ 279,594 $ — $ 2,377,227 Cost of services 494,964 1,026,524 162,905 248,295 — 1,932,688 Gross profit 105,812 252,980 54,448 31,299 — 444,539 Selling, general and administrative 54,344 169,737 26,260 25,225 23,059 298,625 Contingent consideration — 277 — — — 277 Loss (gain) on sale of assets 12 69 (1,029) (13,198) 7 (14,139) Income (loss) from operations $ 51,456 $ 82,897 $ 29,217 $ 19,272 $ (23,066) $ 159,776 Other data: Depreciation and amortization expense $ 2,215 $ 19,281 $ 5,198 $ 1,640 $ 1,073 $ 29,407 Capital expenditures $ 2,203 $ 9,114 $ 2,767 $ 2,525 $ 1,058 $ 17,667 Total assets $ 205,924 $ 386,829 $ 180,871 $ 87,677 $ 120,299 $ 981,600 Year Ended September 30, 2022 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 559,777 $ 1,131,414 $ 167,113 $ 308,504 $ — $ 2,166,808 Cost of services 490,959 928,161 138,444 290,314 — 1,847,878 Gross profit 68,818 203,253 28,669 18,190 — 318,930 Selling, general and administrative 46,717 144,100 25,129 30,557 16,211 262,714 Contingent consideration — 277 — — — 277 Loss (gain) on sale of assets 12 20 (46) (55) — (69) Income (loss) from operations $ 22,089 $ 58,856 $ 3,586 $ (12,312) $ (16,211) $ 56,008 Other data: Depreciation and amortization expense $ 1,550 $ 15,617 $ 5,575 $ 2,561 $ 165 $ 25,468 Capital expenditures $ 2,004 $ 10,054 $ 14,729 $ 1,890 $ 578 $ 29,255 Total assets $ 210,875 $ 394,757 $ 161,828 $ 114,529 $ 52,720 $ 934,709 Year Ended September 30, 2021 Communications Residential Infrastructure Solutions Commercial & Industrial Corporate Total Revenues $ 445,968 $ 687,347 $ 146,980 $ 256,198 $ — $ 1,536,493 Cost of services 361,197 553,546 106,048 227,704 — 1,248,495 Gross profit 84,771 133,801 40,932 28,494 — 287,998 Selling, general and administrative 41,373 92,761 23,966 28,172 15,979 202,251 Contingent consideration — 211 — — — 211 Loss (gain) on sale of assets (4) 86 (10) (92) (27) (47) Income (loss) from operations $ 43,402 $ 40,743 $ 16,976 $ 414 $ (15,952) $ 85,583 Other data: Depreciation and amortization expense $ 1,394 $ 11,490 $ 6,170 $ 2,709 $ 151 $ 21,914 Capital expenditures $ 963 $ 2,829 $ 2,067 $ 1,453 $ 89 $ 7,401 Total assets $ 164,699 $ 329,691 $ 137,628 $ 87,577 $ 47,027 $ 766,622 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Year Ended September 30, 2023 2022 2021 Unvested at beginning of year 13,639 16,757 38,936 Granted — — — Vested (13,373) (3,118) (8,183) Forfeited (266) — (13,996) Unvested at end of year — 13,639 16,757 |
Share-Based Payment Arrangement, Cost by Plan | A summary of the compensation expense related to our stock awards recognized during the years ended September 30, 2023, 2022 and 2021 is provided in the table below: Year Ended September 30, 2023 2022 2021 Restricted stock awards $ 23 $ 137 $ 145 Director PSUs $ 386 $ 386 $ 376 Employee PSUs $ 3,963 $ 3,251 $ 2,986 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | September 30, 2023 Total Fair Value Quoted Prices (Level 1) Significant Unobservable (Level 3) Executive savings plan assets $ 783 $ 783 $ — Executive savings plan liabilities (657) (657) — Contingent consideration liability (4,465) — (4,465) September 30, 2022 Total Fair Value Quoted Prices (Level 1) Significant Unobservable (Level 3) Executive savings plan assets $ 706 $ 706 $ — Equity securities 1,937 $ 1,937 — Executive savings plan liabilities (585) (585) — Contingent consideration liability (4,323) — (4,323) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Contingent Consideration Agreement Fair value at September 30, 2021 $ (4,181) Net adjustments to fair value (142) Fair value at September 30, 2022 $ (4,323) Net adjustments to fair value (142) Fair value at September 30, 2023 $ (4,465) |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2023 2022 Raw materials $ 14,334 $ 12,504 Work in process 12,939 8,218 Finished goods 3,399 2,129 Parts and supplies 64,983 73,482 Total inventories $ 95,655 $ 96,333 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Communications Residential Infrastructure Solutions Commercial & Industrial Total Balance at September 30, 2023 $ 2,816 $ 51,370 $ 38,209 $ — $ 92,395 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2022 Estimated Useful Lives (in Years) Gross Carrying Amount Accumulated Amortization Net Trademarks/trade names 5 - 20 $ 15,262 $ (4,589) $ 10,673 Technical library 20 400 (181) 219 Customer relationships 6 - 15 96,699 (35,662) 61,037 Non-competition arrangements 5 40 (33) 7 Backlog and construction contracts 1 4,958 (4,958) — Total $ 117,359 $ (45,423) $ 71,936 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Ending September 30, 2024 $ 12,265 2025 12,081 2026 11,760 2027 8,391 2028 5,416 Thereafter 6,295 Total $ 56,208 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 07, 2022 | Oct. 07, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||||
Deferred financing cost amortization | $ 268 | $ 199 | $ 198 | |||
Debt Issuance Costs, Noncurrent, Net | 836 | 1,031 | ||||
Accounts Receivable, Allowance for Credit Loss | (1,649) | (5,361) | ||||
Deferred tax assets | 20,383 | 20,519 | ||||
Letters of Credit Outstanding, Amount | 4,166 | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 49,951 | |||||
Noncontrolling Interest, Change in Redemption Value | 15,701 | 4,699 | 315 | |||
Operating right of use assets | 61,761 | 55,890 | ||||
Operating Lease, Liability | 61,594 | |||||
Payments for Repurchase of Redeemable Noncontrolling Interest | 0 | 0 | 1,188 | |||
Increase (Decrease) in Deferred Income Taxes | 70 | |||||
Stockholders' Equity Attributable to Parent | 449,985 | 361,288 | 345,953 | $ 283,313 | ||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 0 | $ 0 | $ 1,188 | |||
Sale of Stock, Percentage of Ownership before Transaction | 100% | 100% | ||||
Noncontrolling Owner | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20% | |||||
Owner | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80% | |||||
Accounting Standards Update 2016-13 | ||||||
Accounting Policies [Abstract] | ||||||
Accounts Receivable, Allowance for Credit Loss, Current | $ 284 |
Controlling Shareholder (Detail
Controlling Shareholder (Details) - USD ($) $ in Thousands | Dec. 01, 2022 | Nov. 30, 2022 | Sep. 30, 2023 |
Risks and Uncertainties [Abstract] | |||
ControllingShareholderOwnershipPercentage | 58% | ||
Related Party Transaction, Purchases from Related Party | $ 9 | $ 8 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 2,377,227 | $ 2,166,808 | $ 1,536,493 |
Contract with Customer, Liability, Revenue Recognized | 82,520 | 52,683 | |
Capitalized Contract Cost, Impairment Loss | 0 | 0 | 0 |
Unbilled Receivables, Current | 4,523 | ||
Contract with Customer, Liability, Revenue Recognized | 82,520 | 52,683 | |
Performance Obligation Next 12 Months | 921,656 | ||
Revenue, Remaining Performance Obligation, Amount | 1,143,423 | ||
Communications [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 600,776 | 559,777 | 445,968 |
Residential [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,279,504 | 1,131,414 | 687,347 |
Infrastructure Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 217,353 | 167,113 | 146,980 |
Commercial and Industrial [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 279,594 | 308,504 | 256,198 |
Fixed-price Contract [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,135,894 | 1,941,443 | 1,397,921 |
Fixed-price Contract [Member] | Communications [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 404,684 | 367,513 | 327,496 |
Fixed-price Contract [Member] | Residential [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,279,504 | 1,131,414 | 687,347 |
Fixed-price Contract [Member] | Infrastructure Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 210,547 | 159,994 | 139,532 |
Fixed-price Contract [Member] | Commercial and Industrial [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 241,159 | 282,522 | 243,546 |
Time-and-materials Contract [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 241,333 | 225,365 | 138,572 |
Time-and-materials Contract [Member] | Communications [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 196,092 | 192,264 | 118,472 |
Time-and-materials Contract [Member] | Residential [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Time-and-materials Contract [Member] | Infrastructure Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6,806 | 7,119 | 7,448 |
Time-and-materials Contract [Member] | Commercial and Industrial [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 38,435 | 25,982 | 12,652 |
industrial Services [Member] | Infrastructure Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 46,091 | 65,686 | 44,427 |
Custom Power Solutions [Member] | Infrastructure Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 171,262 | 101,427 | 102,553 |
Single Family Contracts [Member] | Residential [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 961,271 | 825,505 | 454,449 |
Multi Family and Other [Member] | Residential [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 318,233 | $ 305,909 | $ 232,898 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 4,181 | $ 4,569 | |
Buildings and Improvements, Gross | 33,753 | 32,477 | |
Machinery and Equipment, Gross | 65,787 | 55,917 | |
Capitalized Computer Software, Gross | 14,508 | 8,699 | |
Furniture and Fixtures, Gross | 2,507 | 2,239 | |
Property, Plant and Equipment, Gross | 120,736 | 103,901 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (58,693) | (50,014) | |
Construction in Progress, Gross | 1,367 | 539 | |
Property and equipment, net | 63,410 | 54,426 | |
Depreciation | $ 12,121 | $ 10,073 | $ 8,090 |
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | |
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | 20 years | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | |
Software and Software Development Costs [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | 2 years | |
Software and Software Development Costs [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 8 years | 8 years | |
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | 7 years |
Per Share Information (Details)
Per Share Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Undistributed Earnings (Loss) Available to Common Shareholders, Basic | $ 92,576 | $ 30,046 | $ 66,287 |
Noncontrolling Interest, Period Increase (Decrease) | (15,701) | (4,695) | (315) |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | (11) | (21) | (56) |
Comprehensive income (loss) attributable to IES Holdings, Inc. | $ 108,288 | $ 34,762 | $ 66,658 |
Weighted Average Number of Shares Outstanding, Basic | 20,196,850 | 20,667,745 | 20,790,307 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 216,182 | 226,880 | 296,125 |
Weighted Average Number of Shares Outstanding, Diluted | 20,413,032 | 20,894,625 | 21,086,432 |
Earnings (loss) per share, basic | $ 4.58 | $ 1.45 | $ 3.19 |
Earnings (loss) per share, diluted | $ 4.54 | $ 1.44 | $ 3.15 |
Detail of Certain Balance She_3
Detail of Certain Balance Sheet Accounts (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Detail of Certain Balance Sheet Accounts [Abstract] | ||
Accounts payable, trade | $ 138,591 | $ 184,963 |
Accrued compensation and benefits | 90,667 | 75,190 |
Accrued insurance liabilities | 7,726 | 7,693 |
Current operating lease liabilities | 19,496 | 17,319 |
Other accrued expenses | 40,317 | 31,785 |
Accounts payable and accrued expenses | 296,797 | 316,950 |
Executive Savings Plan assets | 783 | 706 |
Securities and equity investments | 675 | 2,447 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 12,344 | 10,246 |
Other | 2,345 | 1,746 |
Other non-current assets | $ 16,147 | $ 15,145 |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Apr. 28, 2022 | |
Debt Disclosure [Abstract] | ||||
Long-Term Debt | $ 0 | $ 81,628,000 | ||
Long-term debt | 0 | 81,628,000 | ||
Debt Issuance Costs, Noncurrent, Net | 836,000 | 1,031,000 | ||
Letters of Credit Outstanding, Amount | 4,166,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 142,761,000 | |||
Line of Credit Facility, Interest Rate at Period End | 6.82% | |||
Interest expense | $ 3,022,000 | 2,970,000 | $ 962,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | $ 125,000,000 | ||
Loans Payable | $ 0 | |||
ControllingShareholderOwnershipPercentage | 58% | |||
Liquidity | $ 218,531,000 | |||
Long-Term Line of Credit | 0 | 82,659,000 | ||
Debt Issuance Costs, Net | $ 0 | (1,031,000) | ||
Fixed Charge Coverage Ratio, Minimum | (110.00%) | |||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Covenant Terms, Minimum Liquidity Percentage | 10% | |||
Line of Credit Facility, Covenant Terms, Minimum Liquidity Amount | $ 15,000,000 | |||
Line of Credit Facility, Covenant Terms, Minimum Liquidity Excess Availability Percentage | 50% | |||
Fixed Charge Coverage Ratio, Minimum | 110% | |||
Net income (loss) attributable to IES Holdings, Inc. | $ 108,288,000 | $ 34,762,000 | $ 66,658,000 | |
Fixed Charge Coverage Ratio, Maximum | 630% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | |||
Current operating lease liabilities | $ 19,496 | $ 17,319 | |
Current finance lease liabilities | 4,301 | 2,928 | |
Lessee, Operating Lease, Liability, Payments, Due Year One | 20,020 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 16,239 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 12,662 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 9,362 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 5,043 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 6,236 | ||
Lessee, Operating Lease, Liability, Payments, Due | 69,562 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 7,968 | ||
Operating Lease, Liability | 61,594 | ||
Finance Lease, Liability, Payments, Due Year One | 4,436 | ||
Finance Lease, Liability, Payments, Due Year Two | 4,204 | ||
Finance Lease, Liability, Payments, Due Year Three | 3,338 | ||
Finance Lease, Liability, Payments, Due Year Four | 1,598 | ||
Finance Lease, Liability, Payments, Due Year Five | 155 | ||
Finance Lease, Liability, Payments, Due after Year Five | 0 | ||
Finance Lease, Liability, Payment, Due | 13,731 | ||
Finance Lease, Liability, Undiscounted Excess Amount | 1,332 | ||
Finance Lease, Liability | 12,399 | ||
Lessee, Total Lease, Liability, Payments, Due Year One | 24,456 | ||
Total Lease, Liability, Payments, Year Two | 20,443 | ||
Total Lease, Liability, Payments, Year Three | 16,000 | ||
Total Lease, Liability, Payments, Year Four | 10,960 | ||
Total Lease, Liability, Payments, Year Five | 5,198 | ||
Total Lease, Liability, Payments, Due After Year Five | 6,236 | ||
Total Lease, Liability, Payments Due | 83,293 | ||
Total Lease, Liability, Undiscounted Excess Amount | 9,300 | ||
Total Lease, Liability | 73,993 | ||
Minimum payments for leases not yet commenced | 9,616 | ||
Operating Lease, Cost | 18,501 | 16,000 | $ 13,405 |
Finance Lease, Right-of-Use Asset, Amortization | 3,603 | 1,729 | 634 |
Finance Lease, Interest Expense | 746 | 269 | 119 |
Finance Lease, Cost | 4,349 | 1,998 | 753 |
Short-term Lease, Cost | 1,883 | 2,426 | 1,575 |
Variable Lease, Cost | 2,805 | 1,900 | 1,286 |
Lease, Cost | 27,538 | 22,324 | 17,019 |
Operating Lease, Payments | 22,022 | 20,799 | 15,011 |
Finance Lease, Interest Payment on Liability | 746 | 269 | 119 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 27,491 | 31,422 | 24,606 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 5,973 | $ 7,950 | 2,962 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 6 months | 4 years 9 months 18 days | |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 4 months 24 days | 3 years 10 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.10% | 4% | |
Finance Lease, Weighted Average Discount Rate, Percent | 6% | 4.70% | |
Operating Leases, Rent Expense | $ 14,980 | ||
Payments for Rent | $ 20,384 | $ 18,426 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued expenses | Accounts payable and accrued expenses | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued expenses | Accounts payable and accrued expenses | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Examination [Line Items] | |||
Current Federal Tax Expense (Benefit) | $ 27,205 | $ 9,401 | $ 2 |
Deferred Federal Income Tax Expense (Benefit) | 4,300 | 3 | 11,678 |
Current State and Local Tax Expense (Benefit) | 6,370 | 3,445 | 4,505 |
Deferred State and Local Income Tax Expense (Benefit) | 886 | (34) | 46 |
Provision for income taxes | 38,761 | 12,815 | 16,231 |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 33,295 | 11,130 | 17,830 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | 2,017 | 1,610 | 1,086 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 6,338 | 2,114 | 3,876 |
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Amount | 396 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (52) | 283 | (118) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 0 | 427 | 0 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-Based Payment Arrangement, Amount | (332) | (665) | (715) |
Noncontrolling interest | 2,415 | 1,139 | 428 |
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount | 0 | (133) | (2,898) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | 0 | (812) | (2,241) |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (486) | 0 | (161) |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 349 | 1,246 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 18,167 | 18,645 | |
Deferred Tax Assets, Operating Loss Carryforwards | 4,224 | 4,542 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other | 1,718 | 1,318 | |
Deferred Tax Assets, Investments | 0 | 125 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 1,298 | 1,142 | |
Deferred Tax Assets, Capital Loss Carryforwards | 0 | 82 | |
Deferred Tax Assets, Leases | 14,207 | 12,534 | |
Deferred Tax Assets, Other | 8,596 | 4,236 | |
Deferred Tax Assets, Gross | 48,559 | 43,870 | |
Deferred Tax Assets, Valuation Allowance | 823 | 875 | |
Deferred Tax Assets, Net of Valuation Allowance | 47,736 | 42,995 | |
Deferred Tax Liabilities, Property, Plant and Equipment | 2,231 | 126 | |
Deferred Tax Liabilities, Goodwill and Intangible Assets | 9,984 | 9,044 | |
Deferred Tax Liabilities, Leasing Arrangements | 14,102 | 12,500 | |
Deferred Tax Liabilities, Other | 1,036 | 806 | |
Deferred Tax Liabilities, Gross | 27,353 | 22,476 | |
Deferred tax assets | 20,383 | 20,519 | |
Operating Loss Carryforwards | 5,202 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 70,216 | ||
Unrecognized Tax Benefits | 21,746 | 21,879 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 819 | 26 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (218) | (159) | |
Unrecognized Tax Benefits | 22,347 | 21,746 | $ 21,879 |
Increase in Unrecognized Tax Benefits is Reasonably Possible | 6,600 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 697 | $ 52 | |
State and Local Jurisdiction [Member] | |||
Income Tax Examination [Line Items] | |||
Operating Loss Carryforwards Attributable To Goodwill Amortization | $ 4,965 | ||
Operating Loss Carryforwards, Limitations on Use | 709 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,377,227 | $ 2,166,808 | $ 1,536,493 |
Cost of services | 1,932,688 | 1,847,878 | 1,248,495 |
Gross profit | 444,539 | 318,930 | 287,998 |
Selling, general and administrative expenses | 298,625 | 262,714 | 202,251 |
Contingent consideration | 277 | 277 | 211 |
Loss (gain) on sale of assets | (14,139) | (69) | (47) |
Operating income (loss) | 159,776 | 56,008 | 85,583 |
Depreciation and amortization | 29,407 | 25,468 | 21,914 |
Capital expenditures | 17,667 | 29,255 | 7,401 |
Total assets | 981,600 | 934,709 | 766,622 |
Communications [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 600,776 | 559,777 | 445,968 |
Cost of services | 494,964 | 490,959 | 361,197 |
Gross profit | 105,812 | 68,818 | 84,771 |
Selling, general and administrative expenses | 54,344 | 46,717 | 41,373 |
Contingent consideration | 0 | 0 | 0 |
Loss (gain) on sale of assets | 12 | 12 | (4) |
Operating income (loss) | 51,456 | 22,089 | 43,402 |
Depreciation and amortization | 2,215 | 1,550 | 1,394 |
Capital expenditures | 2,203 | 2,004 | 963 |
Total assets | 205,924 | 210,875 | 164,699 |
Residential [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,279,504 | 1,131,414 | 687,347 |
Cost of services | 1,026,524 | 928,161 | 553,546 |
Gross profit | 252,980 | 203,253 | 133,801 |
Selling, general and administrative expenses | 169,737 | 144,100 | 92,761 |
Contingent consideration | 277 | 277 | 211 |
Loss (gain) on sale of assets | 69 | 20 | 86 |
Operating income (loss) | 82,897 | 58,856 | 40,743 |
Depreciation and amortization | 19,281 | 15,617 | 11,490 |
Capital expenditures | 9,114 | 10,054 | 2,829 |
Total assets | 386,829 | 394,757 | 329,691 |
Infrastructure Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 217,353 | 167,113 | 146,980 |
Cost of services | 162,905 | 138,444 | 106,048 |
Gross profit | 54,448 | 28,669 | 40,932 |
Selling, general and administrative expenses | 26,260 | 25,129 | 23,966 |
Contingent consideration | 0 | 0 | 0 |
Loss (gain) on sale of assets | (1,029) | (46) | (10) |
Operating income (loss) | 29,217 | 3,586 | 16,976 |
Depreciation and amortization | 5,198 | 5,575 | 6,170 |
Capital expenditures | 2,767 | 14,729 | 2,067 |
Total assets | 180,871 | 161,828 | 137,628 |
Commercial and Industrial [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 279,594 | 308,504 | 256,198 |
Cost of services | 248,295 | 290,314 | 227,704 |
Gross profit | 31,299 | 18,190 | 28,494 |
Selling, general and administrative expenses | 25,225 | 30,557 | 28,172 |
Contingent consideration | 0 | 0 | 0 |
Loss (gain) on sale of assets | (13,198) | (55) | (92) |
Operating income (loss) | 19,272 | (12,312) | 414 |
Depreciation and amortization | 1,640 | 2,561 | 2,709 |
Capital expenditures | 2,525 | 1,890 | 1,453 |
Total assets | 87,677 | 114,529 | 87,577 |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Cost of services | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expenses | 23,059 | 16,211 | 15,979 |
Contingent consideration | 0 | 0 | 0 |
Loss (gain) on sale of assets | 7 | 0 | (27) |
Operating income (loss) | (23,066) | (16,211) | (15,952) |
Depreciation and amortization | 1,073 | 165 | 151 |
Capital expenditures | 1,058 | 578 | 89 |
Total assets | $ 120,299 | $ 52,720 | $ 47,027 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 01, 2022 | Sep. 30, 2020 | May 20, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 619,735 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,500,000 | 1,000,000 | ||||
Treasury Stock, Shares, Acquired | 224,013 | 511,600 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 31.06 | $ 32.02 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 105,755 | 157,167 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 32,158 | 45,198 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (266) | |||||
Options exercised, shares | 3,000 | 9,000 | ||||
Stock Repurchase Program, Authorized Amount | $ 40,000 | |||||
Common Stock, Shares, Issued | 22,049,529 | 22,049,529 | 22,049,529 | 22,049,529 | ||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (266) | 0 | (13,996) | |||
Share-based Payment Arrangement, Expense | $ 23 | $ 137 | $ 145 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 13,639 | 16,757 | 38,936 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 0 | 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (13,373) | (3,118) | (8,183) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0 | 13,639 | 16,757 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 461 | $ 150 | $ 308 | |||
Phantom Share Units (PSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Expense | $ 386 | $ 386 | 376 | |||
Performance Based Phantom Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (13,583) | |||||
Shares, Issued | 129,189 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 105,755 | |||||
Shares, Outstanding | 325,813 | 315,961,000 | ||||
Phantom Share Units, Employee PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Expense | $ 3,963 | $ 3,251 | $ 2,986 | |||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 3,000 | 9,000 | ||||
Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common Stock, Shares Authorized | 3,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Dec. 01, 2022 | Nov. 30, 2022 |
Related Party Transactions [Abstract] | ||
Related Party Transaction, Purchases from Related Party | $ 9 | $ 8 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||||
Defined Contribution Plan, Cost | $ 5,309 | $ 4,494 | $ 3,386 | |
Defined Benefit Plan, Funded Percentage | 90.93% | |||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Funded Percentage | 90.93% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Executive Savings Plan assets | $ 783 | $ 706 | |
Investments, Fair Value Disclosure | 1,937 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (657) | (585) | |
Business Combination, Contingent Consideration, Liability, Noncurrent | (4,465) | (4,323) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ (4,465) | $ (4,323) | $ (4,181) |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Contingent consideration | Contingent consideration | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | $ (142) | $ (142) | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Executive Savings Plan assets | 783 | 706 | |
Investments, Fair Value Disclosure | 1,937 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (657) | (585) | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ (4,465) | $ (4,323) |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory, Raw Materials, Gross | $ 14,334 | $ 12,504 |
Inventory, Work in Process, Gross | 12,939 | 8,218 |
Inventory, Finished Goods, Gross | 3,399 | 2,129 |
Other Inventory, Gross | 64,983 | 73,482 |
Inventory, Net | $ 95,655 | $ 96,333 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Goodwill (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill [Line Items] | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 6,976 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 111,445 | $ 117,359 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (55,237) | (45,423) | |
Intangible Assets, Net (Excluding Goodwill) | 56,208 | 71,936 | |
Amortization of Intangible Assets | 13,684 | 13,666 | $ 13,191 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 12,265 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 12,081 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 11,760 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 8,391 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 5,416 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 6,295 | ||
Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 14,621 | 15,262 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (6,973) | (4,589) | |
Intangible Assets, Net (Excluding Goodwill) | $ 7,648 | $ 10,673 | |
Trademarks and Trade Names [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | |
Trademarks and Trade Names [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years | |
Technical Library | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 400 | $ 400 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (201) | (181) | |
Intangible Assets, Net (Excluding Goodwill) | $ 199 | $ 219 | |
Technical Library | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 91,426 | $ 96,699 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (43,065) | (35,662) | |
Intangible Assets, Net (Excluding Goodwill) | $ 48,361 | $ 61,037 | |
Customer Relationships [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years | |
Customer Relationships [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 40 | $ 40 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (40) | (33) | |
Intangible Assets, Net (Excluding Goodwill) | $ 0 | $ 7 | |
Noncompete Agreements [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | |
Construction Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 4,958 | $ 4,958 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (4,958) | (4,958) | |
Intangible Assets, Net (Excluding Goodwill) | $ 0 | $ 0 | |
Construction Contracts [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | 1 year |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Loss Contingencies [Line Items] | ||
Loss Contingency, Discounted Amount of Insurance-related Assessment Liability | $ 7,726 | $ 7,693 |
Letters of Credit Outstanding, Amount | 4,166 | |
Estimated cost of completion of bonded projects | 151,186 | |
Purchase Commitment, Remaining Minimum Amount Committed | 0 | |
Loss Contingency Accrual | 10,451 | |
Loss Contingency, Loss in Period | 3,095 | |
Insurance Related [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 4,166 | $ 3,878 |
Business Combinations and Div_2
Business Combinations and Divestitures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Oct. 07, 2022 | Oct. 07, 2022 | Dec. 21, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Business Combinations [Abstract] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | $ 92,463 | ||||||
Escrow Deposit | $ 10,916 | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 4,500 | ||||||
Cash received (paid) in conjunction with business combinations | 0 | $ 0 | $ 92,463 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | $ 4,074 | ||||||
Sale of Stock, Percentage of Ownership before Transaction | 100% | 100% | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 13,045 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Loss (gain) on sale of assets |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Dec. 01, 2022 USD ($) |
Subsequent Event [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 40,000 |
Uncategorized Items - iesc-2023
Label | Element | Value |
Residential [Member] | ||
Goodwill | us-gaap_Goodwill | $ 51,370,000 |
Communications [Member] | ||
Goodwill | us-gaap_Goodwill | 2,816,000 |
Commercial and Industrial [Member] | ||
Goodwill | us-gaap_Goodwill | 0 |
Infrastructure Solutions [Member] | ||
Goodwill | us-gaap_Goodwill | 38,209,000 |
Retained Earnings [Member] | ||
Noncontrolling Interest, Change in Redemption Value | us-gaap_MinorityInterestChangeInRedemptionValue | $ 15,701,000 |
Accounting Standards Update 2019-12 [Member] | ||
Accounting Standards Update and Change in Accounting Principle [Text Block] | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock | In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This update is effective for fiscal years beginning after December 15, 2020 and for interim periods within that year. Early adoption is permitted. We adopted this standard on October 1, 2021 with immaterial impact on our Consolidated Financial Statements. |
Accounting Standards Update 2016-13 [Member] | ||
Accounting Standards Update and Change in Accounting Principle [Text Block] | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock | In June 2016, FASB issued Accounting Standard Update No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”), which requires companies to consider historical experiences, current market conditions and reasonable and supportable forecasts in the measurement of expected credit losses, with further clarifications made in April 2019 and May 2019 with the issuances of Accounting Standard Updates No. 2019-04 and 2019-05. This update is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. We adopted this standard on October 1, 2020, using a modified retrospective transition method through a cumulative-effect adjustment to beginning retained earnings in the period of adoption. As a result, we recorded an increase in the Allowance for Credit Losses of $284, an increase to Deferred Tax Assets of $70, and a decrease to Retained Earnings of $214. |