Integrated Electrical Reports Prelim Q1 EPS $(0.25); Revs $113.4M

Integrated Electrical Services, Inc. IESC today announced preliminary financial results for its fiscal 2012 first quarter ended December 31, 2011. The Company also announced that upon the recommendation of management and after discussion with its independent registered public accounting firm, the Company's Board of Directors has determined that the Company's audited consolidated financial statements as of and for the fiscal years ended September 30, 2011, 2010 and 2009 should no longer be relied upon as being in compliance with U.S. generally accepted accounting principles. COMPANY TO RESTATE FISCAL YEARS 2011, 2010 AND 2009 The Company will restate its consolidated financial statements as of and for the fiscal years ended September 30, 2011, 2010 and 2009 to correct errors in the computation of vacation benefits liabilities and to accurately reflect certain previously reported expenses in the periods in which they were incurred. The cumulative effect of the restatement is expected to increase previously reported expenses by approximately $1.1 million over the three year period. The Company has filed with the Securities and Exchange Commission a Form 12b-25 with respect to its quarterly report on Form 10-Q for the quarter ended December 31, 2011 and intends to file the Form 10-Q immediately following the filing of its Form 10-K/A for the fiscal year ended September 30, 2011. The Company will also file a Form 8-K, describing in more detail the facts underlying the Board's determination, within the period prescribed by Form 8-K. FIRST QUARTER OF FISCAL 2012 HIGHLIGHTS The following highlights include results based upon the Company's 'go forward' operations. The Company uses the term 'go forward' to refer to the results for the quarter ended December 31, 2011, excluding the revenues and expenses attributable to the Company's wind-down facilities, as described in detail below. Highlights for the first quarter of fiscal 2012 include: Net loss of $3.7 million, or ($0.25) per share; adjusted net income of $0.0 million, or $0.00 per share. Revenue of $113.4 million; 'go forward' revenue of $107.0 million Adjusted EBITDA (earnings (loss) before interest, taxes, depreciation and amortization and other items; see reconciliation statement below) of $1.2 million Selling, general and administrative expenses of $13.3 million Backlog at $205.2--- million at period end