Energy Services of America Files Quarterly Report

Aug 12, 2015, 15:00 ET from Energy Services of America

HUNTINGTON, W.Va., Aug. 12, 2015 /PRNewswire/ -- Energy Services of America (the "Company") (OTC: ESOA), parent company of C.J. Hughes Construction Company and Nitro Electric Company, announced today the filing of the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2015.  Energy Services earned revenues of $35.1 million and $79.1 million, respectively, for the three and nine months ended June 30, 2015.  Gross margins were $2.9 million and $6.3 million, respectively, for the three and nine months ended June 30, 2015.  Net income available to common shareholders was $707,000 and $222,000, respectively, for the three and nine months June 30, 2015.  The Company had EBITDA of $2.3 million ($0.16 per share) and $3.8 million ($0.27 per share), respectively, for the three and nine months ended June 30, 2015.  The backlog at June 30, 2015 was $48.8 million.   

Below is a comparison of the Company's operating results:

 




Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended




June 30, 2015


June 30, 2014


June 30, 2015


June 30, 2014




Unaudited


Unaudited


Unaudited


Unaudited





















Revenue


$           35,120,857


$           21,486,057


$           79,137,465


$           60,580,891











Gross profit

2,928,165


1,723,345


6,278,170


5,364,116











Income from operations

1,413,619


191,663


1,217,026


444,048











Income (loss) from continuing operations before income taxes

1,282,990


(2,443)


845,470


(177,579)











Income tax expense (benefit)

503,352


(546,330)


405,260


(1,174,847)











Income from continuing operations

779,638


543,887


440,210


997,268











Dividends on preferred stock

77,250


77,250


231,750


309,000











Income from continuing operations 








   available to common shareholders

702,388


466,637


208,460


688,268











Income (loss) from discontinued operations








     net of tax expense

4,176


(27,849)


13,170


(26,728)





















Net income available to common shareholders

$                 706,564


$                 438,788


$                221,630


$                661,540

 

Revenues for the three and nine months ended June 30, 2015 increased $13.6 million and $18.6 million, respectively, compared to the same time periods ended in 2014 primarily due to increased work for natural gas and petroleum customers.  Gross profit percentages increased for the three ended June 30, 2015 to 8.3% compared to 8.0% for the same time period in 2014. However, gross margin percentages decreased for the nine months ended June 30, 2015 to 7.9% compared to 8.9% for the same time period in 2014.  The Company attributes this to working natural gas transmission projects in inclement weather conditions during the second quarter of fiscal year 2015 and higher than expected profits on several transmission pipeline projects that completed in fiscal year 2014.

Douglas Reynolds, President, commented on the announcement.  "The first nine months of fiscal year 2015 have been better than we anticipated when compared to our business plan.  We attribute that to booking several natural gas transmission projects earlier in the fiscal year than what we expected.  We have increased income from continuing operations before tax by $1.0 million when comparing the nine months ended June 30, 2015 to June 30, 2014."  Reynolds continued, "We lost out on some projects in the third quarter of fiscal year 2015 due to the competitive bidding process.  Even with that, we feel that we have enough projects under contract to make fiscal year 2015 successful.  We are still seeing considerable interest for our services, but most of the opportunities wouldn't be an impact until fiscal year 2016.   We currently have a projected backlog of $48.8 million and, additionally, we expect to sign a $10.0 million contract in the next couple months for work that will begin in fiscal year 2016."  

Please refer to the table below that reconciles EBITDA and EBITDA per share:

 


Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended


June 30, 2015


June 30, 2014


June 30, 2015


June 30, 2014









Revenue

$            35,120,857


$           21,486,057


$          79,137,465


$          60,580,891

Cost of revenues

32,192,692


19,762,712


72,859,295


55,216,775

Gross margin

2,928,165


1,723,345


6,278,170


5,364,116

Selling and administrative expenses

1,514,546


1,531,682


5,061,144


4,920,068

Income from operations

1,413,619


191,663


1,217,026


444,048

Depreciation expense

842,130


843,366


2,582,252


2,538,052

EBITDA

$              2,255,749


$              1,035,029


$             3,799,278


$             2,982,100

Common shares outstanding

14,239,836


14,239,836


14,239,836


14,239,836

EBITDA per common share

$                        0.16


$                        0.07


$                       0.27


$                       0.21

 

Certain statements contained in the release, including without limitation statements including the words "believes," "anticipates," "intends," "expects" or words of similar import, constitute "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such factors include, among others, general economic and business conditions, changes in business strategy or development plans and other factors referenced in this release. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

SOURCE Energy Services of America