The following discussion should be read in conjunction with the accompanying consolidated financial statements as of December 31, 2008 and September 30, 2009 and for the three and nine months ended September 30, 2008 and 2009 and with our annual report on Form 10-K for the year ended December 31, 2008 (the "2008 Annual Report"). In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management's expectations. Factors that could cause such differences are discussed herein under the captions labeled "Cautionary Statement Concerning Forward-Looking Statements and Information" and "Risk Factors," as well as in the 2008 Annual Report. We assume no obligation to update any of these forward-looking statements.

Overview

We are a leading specialty contractor serving the electrical infrastructure market in the United States. We are one of the largest national contractors servicing the T&D sector of the United States electric utility industry. Our T&D customers include more than 125 electric utilities, cooperatives and municipalities nationwide. Our broad range of services includes design, engineering, procurement, construction, upgrade, maintenance and repair services with a particular focus on construction, maintenance and repair throughout the continental United States. We also provide C&I electrical contracting services to facility owners and general contractors in the western United States.

Our business is directly impacted by the level of spending on transmission and distribution infrastructure throughout the United States and the level of commercial and industrial activity, particularly in the Colorado and Arizona markets. Due to the economic downturn affecting the United States, some of our customers have reduced their capital spending programs, and, as a result, the competition for the projects available for us to bid has increased. These factors have impacted our operating results as compared to prior periods. We anticipate that our industry will continue to operate at reduced levels until either economic conditions improve or government funding is actually deployed for spending on industry-related infrastructure projects.

We had consolidated revenues for the nine months ended September 30, 2009 of $457.9 million, of which 75.0% was attributable to our T&D customers and 25.0% was attributable to our C&I customers. For the nine months ended September 30, 2009, our net income and EBITDA(1) were $13.0 million and $30.4 million, respectively, compared to $16.0 million and $36.1 million for the nine months ended September 30, 2008. Our net income for the nine months ended September 30, 2009 included tax benefits of approximately $0.9 million related to certain discrete items, which is further discussed below in the Provision for Income Taxes section under the caption "Consolidated Results of Operations".

However, using EBITDA as a performance measure has material limitations as compared to net income, or other financial measures as defined under U.S. GAAP as it excludes certain recurring items which may be meaningful to investors. EBITDA excludes interest expense and interest income; however, as we have borrowed money in order to finance

transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and ability to generate revenue and returns for our stockholders. Further, EBITDA excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenues, depreciation and amortization are a necessary element of our costs and ability to generate revenue. Finally, EBITDA excludes income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. As a result of these exclusions from EBITDA, any measure that excludes interest expense, interest income, depreciation and amortization and income taxes has material limitations as compared to net income. When using EBITDA as a performance measure, management compensates for these limitations by comparing EBITDA to net income in each period, so as to allow for the comparison of the performance of the underlying core operations with the overall performance of the company on a full-cost, after tax basis. Using both EBITDA and net income to evaluate the business allows management and investors to (a) assess our relative performance against our competitors, and (b) ultimately monitor our capacity to generate returns for our stockholders.

The following table provides a reconciliation of net income to EBITDA:

                                For the three months ended        For the nine months ended
                                      September 30,                     September 30,
  (dollars in thousands)          2008              2009            2008             2009
  Reconciliation of Net
  Income to EBITDA:
  Net Income                 $        6,613    $        5,769   $      16,034    $      12,967
  Add/(subtract):
     Interest expense
     (income), net                      214               181             471              448
     Provision for income
     taxes                            5,005             2,151          11,552            7,093
     Depreciation &
     amortization                     2,784             3,391           8,080            9,854

  EBITDA                     $       14,616    $       11,492   $      36,137    $      30,362

We also use EBITDA as a liquidity measure. We believe this financial measure is important in analyzing our liquidity because it is a key component of certain material covenants contained within our syndicated credit facility (the "Credit Agreement"). Non-compliance with these financial covenants under the Credit Agreement-our interest coverage ratio and our leverage ratio-could result in our lenders requiring us to immediately repay all amounts borrowed. If we anticipated a potential covenant violation, we would seek relief from our lenders, likely causing us to incur additional cost, and such relief might not be available, or if available, might not be on terms as favorable as those in the Credit Agreement. In addition, if we cannot satisfy these financial covenants, we would be prohibited under the Credit Agreement from engaging in certain activities, such as incurring additional indebtedness, making certain payments, and acquiring or disposing of assets. Based on the information above, management believes that the presentation of EBITDA as a liquidity measure is useful to investors and relevant to their assessment of our capacity to service or incur debt.

The following table provides a reconciliation of EBITDA to net cash flows provided by (used in) operating activities: