Our expertise in designing and building natural gas and electric power lines has been the basis for our focused growth. Utility Services, Inc. is branching out all over the United States, building upon its employees' intellectual capital and technical expertise. USI has gone from ground zero in 1997 to $169 million in revenue in 2000.

Growth Opportunities

USI is pursuing growth through the acquisition of utility services companies that are well managed, have excellent reputations and are growth-driven. The company seeks acquisitions that broaden its markets. Strategic acquisitions and the growth of its engineering services highlighted the year. Due to growing demand, Harp Engineering, Inc., increased its engineering staff and expanded its offices to Arizona to take advantage of the opportunities presented in the fast-growing Southwest.

The acquisition of the Wagner-Smith companies, headquartered in Dayton, Ohio, added a mighty limb and many branches to the USI family tree. Wagner-Smith is a diversified electrical contractor in the industrial, utility, institutional and governmental markets. These operations include: traffic signal systems; street lighting; equipment manufacturing, rental and sales; industrial pump distribution and repair; and mechanical construction services.

The Capital Electric companies, located in Kansas City, Missouri, joined USI in early January 2001. Capital Electric specializes in powerline construction, repair and maintenance; industrial electrical construction and service; power plant electrical construction; and data and telecommunications contracting.

Bundled Package of Services

As USI has grown, the business increasingly has added resources that make it possible to provide additional services to customers.

USI specializes in the construction and maintenance of electric power and natural gas distribution and transmission lines as well as communication and fiber optic facilities. As deregulation pressures and system demands increase, utilities are outsourcing more services to utility service companies. Commitment to reliability and providing low cost service are company hallmarks.

Management continues to seek opportunities to improve its competitive edge by seeking efficiency improvements. Operations have been regionalized to allow consolidation and to provide better customer service, while saving time and reducing costs.