IES Holdings, Inc.

Previous wording

While the COVID-19 pandemic's impact on markets, the supply chain and the labor force had less of an impact on our business thus far in fiscal 2024 compared with prior fiscal years, COVID-19 and any future pandemic or other public health emergency could impact our workforce, customers and suppliers in the future. An inability to procure materials in a timely manner, to complete work on schedule, and to reflect higher materials or labor costs in our pricing to customers has had, and could have in the future, a significant impact on our operating results.

Current wording

While the COVID-19 pandemic's impact on markets, the supply chain and the labor force had minimal impact on our business thus far in fiscal 2025 compared with prior fiscal years, COVID-19 and any future pandemic or other public health emergency could impact our workforce, customers and suppliers in the future. An inability to procure materials in a timely manner, to complete work on schedule, and to reflect higher materials or labor costs in our pricing to customers has had, and could have in the future, a significant impact on our operating results.

Previous wording

Consolidated revenues for the three months ended June 30, 2024, were $184.0 million higher than for the three months ended June 30, 2023, an increase of 31.5%, with increases at all four of our operating segments. See further discussion below of changes in revenues for our individual segments.

Current wording

Consolidated revenues for the three months ended December 31, 2024, were $115.1 million higher than for the three months ended December 31, 2023, an increase of 18.1%, with increases at all four of our operating segments. See further discussion below of changes in revenues for our individual segments.

Previous wording

Consolidated gross profit for the three months ended June 30, 2024 increased $87.2 million compared to the three months ended June 30, 2023. Our overall gross profit percentage was 25.3% during the three months ended June 30, 2024, as compared to 18.4% during the three months ended June 30, 2023. Gross profit as a percentage of revenue increased at all four of our operating segments. See further discussion below of changes in gross margin for our individual segments.

Current wording

Consolidated gross profit for the three months ended December 31, 2024 increased $34.2 million compared to the three months ended December 31, 2023. Our overall gross profit percentage was 23.8% during the three months ended December 31, 2024, as compared to 22.7% during the three months ended December 31, 2023. Gross profit as a percentage of revenue increased at our Residential, Infrastructure Solutions and Commercial & Industrial segments and decreased slightly at our Communications segment. See further discussion below of changes in gross margin for our individual segments.

Previous wording

During the three months ended June 30, 2024, our selling, general and administrative expenses were $104.7 million, an increase of $30.4 million, or 40.9%, over the three months ended June 30, 2023, primarily driven by increased personnel costs, particularly at our Residential operating segment, and higher incentive compensation across our business as a result of higher earnings. Increases in selling, general and administrative expenses at our other operating segments were generally consistent with each segment's respective revenue growth. Selling, general and administrative expenses as a percentage of revenue increased from 12.7% for the three months ended June 30, 2023 to 13.6% for the three months ended June 30, 2024.

Current wording

During the three months ended December 31, 2024, our selling, general and administrative expenses were $103.0 million, an increase of $17.2 million, or 20.0%, over the three months ended December 31, 2023. As a percentage of revenue, selling, general and administrative expenses increased from 13.5% for the three months ended December 31, 2023 to 13.7% for the three months ended December 31, 2024. The increase in selling, general and administrative expenses was generally consistent with revenue growth.

Previous wording

Revenues. Our Communications segment’s revenues increased by $50.7 million during the three months ended June 30, 2024, or 35.8%, compared to the three months ended June 30, 2023. The increase primarily resulted from an increase in demand from data center customers.

Current wording

Revenues. Our Communications segment’s revenues increased by $62.2 million during the three months ended December 31, 2024, or 36.4%, compared to the three months ended December 31, 2023. The increase primarily resulted from an increase in demand from data center customers.

Previous wording

Gross Profit. Our Communications segment’s gross profit during the three months ended June 30, 2024 increased by $9.9 million compared to the three months ended June 30, 2023. Gross profit as a percentage of revenue was 19.3% in the three months ended June

Current wording

Gross Profit. Our Communications segment’s gross profit during the three months ended December 31, 2024 increased by $12.5 million compared to the three months ended December 31, 2023, primarily driven by increased revenues as discussed above. Gross profit as a percentage of revenue was 21.0% in the three months ended December 31, 2024 compared to 21.2% in the three months ended December 31, 2023.

Previous wording

Revenues. Our Residential segment’s revenues increased by $59.5 million, or 18.7%, during the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily driven by an expansion of our plumbing and HVAC offerings and continued strong demand in our single-family business, where revenues increased by $44.4 million, or 18.4%. In addition, in our multi-family business, successful execution of its backlog contributed to an increase in revenues of $15.1 million, or 19.6%.

Current wording

Revenues. Our Residential segment’s revenues increased by $4.1 million, or 1.3%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Our multi-family business revenues increased by $7.3 million, or 10.5%, driven by successful execution of its backlog. A reduction in new single-family construction demand largely driven by the impacts of hurricanes in the Florida market, continued low housing affordability and consumer expectations about future interest rate reductions caused a decrease of $4.8 million, or 2.7%, in our single-family electrical revenues, while this decrease was offset by the continued expansion of our plumbing and HVAC business, where revenues increased by $1.6 million, or 2.2%.

Previous wording

Gross Profit. During the three months ended June 30, 2024, our Residential segment's gross profit increased by $48.0 million, or 83.7%, compared to the three months ended June 30, 2023. Gross profit as a percentage of revenue increased to 27.9% during the three months ended June 30, 2024, compared to 18.0% for the three months ended June 30, 2023. The increase in profitability was driven primarily by improved project execution in our multi-family business, reduced material costs resulting from improved procurement, and other processes implemented as part of the reorganization of the segment in fiscal 2023.

Current wording

Gross Profit. During the three months ended December 31, 2024, our Residential segment's gross profit increased by $3.7 million, or 4.9%, compared to the three months ended December 31, 2023. Gross profit as a percentage of revenue increased slightly to 24.7% during the three months ended December 31, 2024, compared to 23.9% for the three months ended December 31, 2023. The increase in profitability was driven primarily by improved project execution and reduced material costs.

Previous wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $19.7 million, or 47.0%, during the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The increase was driven by higher personnel costs to support the growth of our business and incentive profit sharing for division management resulting from higher earnings. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 16.3% during the three months ended June 30, 2024, compared to 13.2% in the three months ended June 30, 2023.

Current wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $3.9 million, or 7.7%, during the three months ended December 31, 2024, compared to the three months ended December 31, 2023. The increase was driven by higher personnel and other administrative costs to support the continued growth of our business. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 17.3% during the three months ended December 31, 2024, compared to 16.3% in the three months ended December 31, 2023.

Previous wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $45.0 million during the three months ended June 30, 2024, an increase of 78.8% compared to the three months ended June 30, 2023, driven primarily by continued strong demand in our custom power solutions manufacturing businesses, including generator enclosures. Greiner Industries, Inc. ("Greiner"), which was acquired on April 1, 2024, contributed $15.3 million in revenue in the three months ended June 30, 2024.

Current wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $45.2 million during the three months ended December 31, 2024, an increase of 71.9% compared to the three months ended December 31, 2023, driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses, including generator enclosures for data center customers. Greiner Industries, Inc. (“Greiner”), which was acquired on April 1, 2024, contributed $12.2 million in revenues in the three months ended December 31, 2024.

Previous wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended June 30, 2024 increased $16.5 million, compared to the three months ended June 30, 2023, primarily resulting from higher volumes, improved pricing and operating efficiencies at our facilities as well as the impact of investments to increase capacity we have made over the last several years. Gross profit as a percentage of revenue increased from 24.9% to 30.0%.

Current wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended December 31, 2024 increased $16.8 million, compared to the three months ended December 31, 2023, and gross profit as a percentage of revenue increased from 28.9% to 32.3%. The improvement in gross profit and gross margin was primarily driven by higher volumes, improved pricing, operating efficiencies at our facilities, and the impact of investments to increase capacity we have made over the last several years.

Previous wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the three months ended June 30, 2024 increased by $3.8 million, compared to the three months ended June 30, 2023, primarily as a result of increased employee compensation cost to support growth in the business. Selling, general and administrative expenses as a percentage of revenue decreased from 12.4% for the three months ended June 30, 2023 to 10.7% for the three months ended June 30, 2024 as we benefited from the scale of our operations.

Current wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the three months ended December 31, 2024 increased by $4.0 million, compared to the three months ended December 31, 2023, primarily as a result of increased employee compensation cost to support growth in the business and higher incentive compensation as a result of higher earnings and administrative expenses incurred at Greiner. Selling, general and administrative expenses as a percentage of revenue decreased from 11.6% for the three months ended December 31, 2023 to 10.4% for the three months ended December 31, 2024 as we benefited from the scale of our operations.

Previous wording

Revenues. Revenues in our Commercial & Industrial segment increased by $28.8 million, or 42.5%, during the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The increase primarily relates to a large data center project.

Current wording

Revenues. Revenues in our Commercial & Industrial segment increased by $3.5 million, or 4.2%, during the three months ended December 31, 2024, compared to the three months ended December 31, 2023. The increase primarily relates to continued strong demand and successful execution of backlog across the business.

Previous wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended June 30, 2024, increased by $12.8 million, compared to the three months ended June 30, 2023. Gross profit as a percentage of revenue increased from 13.1% for the quarter ended June 30, 2023 to 22.5% for the quarter ended June 30, 2024. In the three months ended June 30, 2024, segment results benefited from favorable project execution and additions to the original scope of work at favorable margins on the large data center project. We also benefited from improved project execution and bid margins across the business.

Current wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended December 31, 2024 increased by $1.2 million, compared to the three months ended December 31, 2023. Gross profit as a percentage of revenue increased from 16.4% for the quarter ended December 31, 2023 to 17.1% for the quarter ended December 31, 2024 as we benefited from improved project execution and bid margins across the business.

Previous wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the three months ended June 30, 2024 increased by $2.4 million, or 38.7%, compared to the three months ended June 30, 2023 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue decreased from 9.3% for the three months ended June 30, 2023, to 9.0% for the three months ended June 30, 2024, as we benefited from the scale of our operations.

Current wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the three months ended December 31, 2024 increased by $1.2 million, or 17.8%, compared to the three months ended December 31, 2023 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of successful project execution. Selling, general and administrative expenses as a percentage of revenue increased from 8.1% for the three months ended December 31, 2023 to 9.1% for the three months ended December 31, 2024.

Previous wording

During the three months ended June 30, 2024, we incurred interest expense of $0.4 million primarily comprised of interest on our finance lease agreements and fees on an average letter of credit balance of $5.6 million under our revolving credit facility and an average unused line of credit balance of $142.9 million. This compares to interest expense of $0.4 million for the three months ended June 30, 2023, primarily comprising interest on our finance lease agreements and interest expense from our revolving credit facility, which had an average outstanding balance of $2.5 million, in addition to fees on an average letter of credit balance of $4.3 million under our revolving credit facility and an average unused line of credit balance of $142.9 million.

Current wording

During the three months ended December 31, 2024, we incurred interest expense of $0.5 million primarily comprised of interest on our finance lease agreements and fees on an average letter of credit balance of $5.5 million under our revolving credit facility and an average unused line of credit balance of $144.4 million. This compares to interest expense of $0.4 million for the three months ended December 31, 2023, primarily comprised of interest on our finance lease agreements and fees on an average letter of credit balance of $5.6 million under our revolving credit facility and an average unused line of credit balance of $142.4 million.

Previous wording

The change in total other (income) expense, net for the three months ended June 30, 2024, compared to the three months ended June 30, 2023 is primarily the result of unrealized losses on investments in trading securities of $1.6 million in the three months ended June 30, 2024 with no comparable gains or losses on investments in the three months ended June 30, 2023, partially offset by interest income of $1.0 million earned during the three months ended June 30, 2024 with no such interest income earned in the three months ended June 30, 2023.

Current wording

The increase in total other income, net for the three months ended December 31, 2024, compared to the three months ended December 31, 2023 is primarily the result of unrealized gains on investments in trading securities of $2.3 million in the three months ended December 31, 2024 compared to unrealized gains of $0.1 million on investments in trading securities in the three months ended December 31, 2023.

Previous wording

We recorded income tax expense of $22.6 million for the three months ended June 30, 2024, compared to $8.3 million for the three months ended June 30, 2023, driven by increased pretax income.

Current wording

We recorded income tax expense of $20.0 million for the three months ended December 31, 2024, compared to $15.4 million for the three months ended December 31, 2023, driven by increased pretax income.

Previous wording

Management’s discussion and analysis of financial condition and results of operations is based on our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, which have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The preparation of our Condensed Consolidated Financial Statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenues and expenses recognized during the periods presented. We review all significant estimates affecting our Condensed Consolidated Financial Statements on a recurring basis and record the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on our beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. There can be no assurance that actual results will not differ from those estimates. For a discussion of our significant accounting policies, please see our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. Some of the more significant estimates include revenue recognition, business combinations, valuation allowance for deferred tax assets and income taxes.

Current wording

Management’s discussion and analysis of financial condition and results of operations is based on our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, which have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of our Condensed Consolidated Financial Statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenues and expenses recognized during the periods presented. We review all significant estimates affecting our Condensed Consolidated Financial Statements on a recurring basis and record the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on our beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. There can be no assurance that actual results will not differ from those estimates. For a discussion of our significant accounting policies, please see our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. Some of the more significant estimates include revenue recognition, business combinations, and income taxes.

Previous wording

Remaining performance obligations represent the unrecognized revenue value of our contractual commitments. While backlog is not a defined term under GAAP, it is a common measurement used in our industry, and we believe it improves our ability to forecast future results and identify operating trends that may not otherwise be apparent. Backlog is a measure of revenue that we expect to recognize from work that has yet to be performed on uncompleted contracts and from work that has been contracted but has not started, exclusive of short-term projects. While all of our backlog is supported by documentation from customers, backlog is not a guarantee of future revenues, as contractual commitments may change and our performance may vary. Not all of our work is performed under contracts included in backlog; for example, most of the apparatus repair work that is completed by our Infrastructure Solutions segment is performed under master service agreements on an as-needed basis. Additionally, electrical installation services for single-family housing at our Residential segment are completed on a short-term basis and are therefore excluded from backlog. The table below summarizes our remaining performance obligations and backlog (in thousands):

Current wording

Remaining performance obligations represent the unrecognized revenue value of our contractual commitments. While backlog is not a defined term under GAAP, it is a common measurement used in our industry, and we believe it improves our ability to forecast future results and identify operating trends that may not otherwise be apparent. Backlog is a measure of revenue that we expect to recognize from work that has yet to be performed on uncompleted contracts and from work that has been contracted but has not started, exclusive of short-term projects. While all of our backlog is supported by documentation from customers, backlog is not a guarantee of future revenues, as contractual commitments may change and our performance may vary. Not all of our work is performed under contracts included in backlog; for example, most of the apparatus repair work that is completed by our Infrastructure Solutions segment is performed under master service agreements on an as-needed basis. Additionally, electrical, plumbing and HVAC installation services for single-family housing at our Residential segment are completed on a short-term basis and are therefore excluded from backlog. The table below summarizes our remaining performance obligations and backlog (in thousands):

Previous wording

During the nine months ended June 30, 2024, working capital exclusive of cash increased by $74.6 million from September 30, 2023, reflecting a $148.2 million increase in current assets excluding cash partially offset by a $73.6 million increase in current liabilities during the period.

Current wording

During the three months ended December 31, 2024, working capital exclusive of cash increased by $33.5 million from September 30, 2024, reflecting a $13.9 million increase in current assets excluding cash and a $19.6 million decrease in current liabilities during the period.

Previous wording

During the nine months ended June 30, 2024, our total current liabilities increased by $73.6 million to $474.2 million, compared to $400.6 million as of September 30, 2023, driven by a $35.5 million increase in billings in excess of costs and estimated earnings driven by the timing of contract billings on projects on which revenue is recognized using the percentage of completion method, and a $38.1 million increase in accounts payable and accrued expenses primarily as a result of increased activity and the timing of payments across all of our operating segments.

Current wording

During the three months ended December 31, 2024, our total current liabilities decreased by $19.6 million to $503.0 million, compared to $522.6 million as of September 30, 2024, driven by a $31.0 million decrease in accounts payable and accrued expenses primarily as a result of the timing of vendor payments and incentive compensation payments at the end of the calendar year across all of our operating segments. This decrease was partially offset by a $11.4 million increase in billings in excess of costs and estimated earnings driven by the timing of contract billings on projects on which revenue is recognized using the percentage of completion method.

Previous wording

We believe the bonding capacity provided by our sureties is adequate for our current operations and will be adequate for our operations for the foreseeable future. As of June 30, 2024, the estimated cost to complete our bonded projects was approximately $141.9 million.

Current wording

We believe the bonding capacity provided by our sureties is adequate for our current operations and will be adequate for our operations for the foreseeable future. As of December 31, 2024, the estimated cost to complete our bonded projects was approximately $138.9 million.

Previous wording

If in the future our Liquidity falls below $15.0 million (or Excess Availability falls below 50% of our minimum Liquidity), our Fixed Charge Coverage Ratio is less than 1.1:1.0, or if we otherwise fail to perform or otherwise comply with certain of our covenants or other agreements under the Amended Credit Agreement, it would result in an event of default under the Amended Credit Agreement, which could result in some or all of our then-outstanding indebtedness becoming immediately due and payable.

Current wording

Under the Amended Credit Agreement, if in the future our Consolidated Total Leverage Ratio is greater than 3.00:1.00, or our Consolidated Interest Coverage Ratio is less than 3.00:1.00, or if we otherwise fail to perform or otherwise comply with certain of our covenants or other agreements under the Amended Credit Agreement, it would result in an event of default under the Amended Credit Agreement, which could result in some or all of our then-outstanding indebtedness becoming immediately due and payable.

Previous wording

At June 30, 2024, we had $5.6 million in outstanding letters of credit and no outstanding borrowings under our revolving credit facility.

Current wording

At December 31, 2024, we had $5.5 million in outstanding letters of credit and no outstanding borrowings under our revolving credit facility. As of December 31, 2024, the Company was in compliance with the financial covenants under the credit agreement that was in place at December 31, 2024.

Previous wording

Net cash provided by operating activities was $141.6 million during the nine months ended June 30, 2024, as compared to $96.6 million in the nine months ended June 30, 2023. The increase in operating cash flow resulted from increased earnings in the nine months ended June 30, 2024, partially offset by an increase in cash used in working capital during the nine months ended June 30, 2024 as compared with the nine months ended June 30, 2023.

Current wording

Net cash provided by operating activities was $37.3 million during the three months ended December 31, 2024, as compared to $25.0 million in the three months ended December 31, 2023. The increase in operating cash flow resulted from increased earnings in the three months ended December 31, 2024 and a decrease in cash used in working capital during the three months ended December 31, 2024 as compared with the three months ended December 31, 2023.

Previous wording

Net cash used in financing activities for the nine months ended June 30, 2024 was $76.1 million, compared to $101.9 million for the nine months ended June 30, 2023. Net cash used in financing activities for the nine months ended June 30, 2024 included $31.2 million paid to acquire the noncontrolling interest in Bayonet, $24.3 million used to repurchase our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation, $13.5 million in distributions to noncontrolling interests under operating agreements in connection with certain acquisitions, and $4.1 million to settle our contingent consideration liability related to prior year acquisitions. Net cash used in financing activities for the nine months ended June 30, 2023 included net repayments on our credit facility of $82.7 million, $8.2 million used to repurchase our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation, and distributions of $8.5 million to noncontrolling interests under operating agreements in connection with certain acquisitions.

Current wording

Net cash used in financing activities for the three months ended December 31, 2024 was $20.6 million, compared to $7.3 million for the three months ended December 31, 2023. Net cash used in financing activities for the three months ended December 31, 2024 included $15.7 million used to repurchase our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation, and $4.0 million in distributions to noncontrolling interests under operating agreements in connection with certain acquisitions. Net cash used in financing activities for the three months ended December 31, 2023 included $4.1 million to settle our contingent consideration liability related to prior year acquisitions and $1.3 million in distributions to noncontrolling interests under operating agreements in connection with certain acquisitions.

Previous wording

In December 2022, our Board authorized a stock repurchase program for the purchase from time to time of up to $40.0 million of the Company’s common stock, replacing the Company's previous 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 pre-set 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, reinstated, or terminated at any time at the Company’s discretion and without notice. We repurchased 157,505 shares pursuant to our repurchase programs during the nine months ended June 30, 2024. Subsequent to June 30, 2024, we repurchased an additional 119,041 shares in open market transactions, which fully utilized the amount remaining under the previous $40.0 million authorization. On July 31, 2024, the Board authorized a new $200.0 million stock repurchase program.

Current wording

On July 31, 2024, our Board authorized a stock repurchase program for the purchase from time to time of up to $200.0 million of the Company’s common stock after the previous stock repurchase program was fully utilized. 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 pre-set 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, reinstated, or terminated at any time at the Company’s discretion and without notice. We repurchased 21,048 shares pursuant to our repurchase programs during the three months ended December 31, 2024.

Previous wording

From time to time, we may enter into firm purchase commitments for materials, such as copper or aluminum wire, which we expect to use in the ordinary course of business. These commitments are typically for terms of less than one year and require us to buy minimum quantities of materials at specific intervals at a fixed price over the term. As of June 30, 2024, we did not have any such firm commitments to purchase materials outstanding. In connection with expected growth in our business, we are planning to expand capacity in certain areas. Further, based on increased availability of vehicles and other equipment needed in the business and the relative costs and benefits of purchasing compared with leasing, we expect to satisfy a larger proportion of our vehicle and other equipment needs through purchasing and to reduce our reliance on leasing. As a result, we have updated our capital expenditure expectations for the current fiscal year, and now expect our capital spending for the year ending September 30, 2024 will range from $35 million to $45 million, compared to $17.7 million for the year ended September 30, 2023. There have been no other material changes in our material cash requirements from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. We expect that cash and cash equivalents, cash flow from operations and availability under our revolving credit facility will be sufficient to satisfy cash requirements during at least the next 12 months.

Current wording

From time to time, we may enter into firm purchase commitments for materials, such as copper or aluminum wire, which we expect to use in the ordinary course of business. These commitments are typically for terms of less than one year and require us to buy minimum quantities of materials at specific intervals at a fixed price over the term. As of December 31, 2024, we did not have any such firm commitments to purchase materials outstanding and there were no material changes in our material cash requirements from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. We expect that cash and cash equivalents, cash flow from operations and availability under our revolving credit facility will be sufficient to satisfy cash requirements during at least the next 12 months.