IES Holdings, Inc. (or "IES" or the "Company") (NASDAQ:IESC) today announced that its Board of Directors has approved an amendment to the Company's Tax Benefit Protection Plan (the "NOL Rights Plan") to accelerate the expiration date of the NOL Rights Plan to May 21, 2021, effectively terminating the plan as of that date. The NOL Rights Plan, which was previously set to expire on December 31, 2021, was intended to preserve the availability of IES's federal net operating loss carryforwards ("NOLs") by deterring an acquisition of the Company's stock in excess of a threshold amount that could trigger an "ownership change" within the meaning of the Internal Revenue Code. Shareholders are not required to take any action in connection with the termination of the NOL Rights Plan.
Jeff Gendell, Chairman and Chief Executive Officer of IES, said, "In reaching the decision to terminate the NOL Rights Plan, the Board considered a variety of factors, including our substantial NOL utilization in recent years and the timeframe in which we expect to utilize our remaining NOLs, as well as shareholder feedback on implementing best corporate governance practices. We believe that the tax savings we expect to generate as we use our remaining NOLs will further enhance our already strong financial position and help support our growth strategy."
Separately, IES has posted an updated investor presentation on its website, which can be found at www.ies-co.com/presentations.