OKLAHOMA CITY, Aug. 22, 2019 /PRNewswire/ -- Energy and Environmental Services, Inc. (OTC: EESE) today announced its unaudited financial results for the second quarter ended June 30, 2019.
"Our Patriot Chemical & Services acquisition builds our revenues and expands our footprint in the market for oilfield chemicals. Patriot is a textbook example of our growth through strategic acquisitions. We are also expanding our internal investment to increase organic growth," stated Leon Joyce, CEO. "Our strategies are working. We managed to increase revenues despite some softening in the oil and gas industry," added Joyce.
Second Quarter 2019 Highlights
- We acquired Patriot Chemicals & Services in May 2019 for a combination of stock, cash and notes valued at $3,441,000. Patriot markets chemicals used in oil and gas drilling and production, including chemicals manufactured by us. From May 16, 2019 through June 30, 2019, we realized $703,900 of revenues and $92,800 of net income from Patriot.
- Our sales revenues increased $349,000 from $2,013,500 in the Second Quarter 2018 to $2,362,500 for the Second Quarter 2019.
- Our gross profit was up $366,300 or 35% from $1,047,800 in the Second Quarter 2018 to $1,414,100 in the Second Quarter 2019.
- We received certification from the Environmental Protection Agency to produce registered biocides at our Edmond Facility.
- Our EBITDA was $121,500 for the Second Quarter 2019 compared to EBITDA of $167,800 for the Second Quarter 2018.
- We had net income from operations of $22,800 in the Second Quarter 2019 versus net income of $96,800 in the Second Quarter 2018.
- We continued our capital investments. During the Six Months 2019, we invested $252,400 and increased borrowing by $325,700. This capital generally reflects the Patriot acquisition and the conversion of our Snyder, Texas warehouse to a chemical blending and manufacturing facility. This facility will allow us to service the Permian Basin more efficiently.
- Outside directors, Mark Day, purchased 430,000 shares of our common stock, and Enerwest Trading (Mike Smith, manager) requested 900,000 shares of our common stock in lieu of cash and notes for his consideration of ownership in Patriot for investment.
With the drilling rig count down 12% from last year, sales of our core liquid and solid chemicals for well fracking and stimulation tapered off slightly. Sales of our chemicals for producing wells were stable, and revenue from Patriot and Enduro-Bond protective coatings could increase in this current industry dip as customers seek added value. We fortunately have a strong balance sheet with $2,016,200 of cash and cash equivalents and working capital of $4,746,500 at June 30, 2019. We will attempt to increase market share through potential mergers and acquisitions as well as organic growth in our core product lines. We continue to evaluate each business segment with the goals of increasing revenue and making necessary cuts in expenses to become more profitable. We expect a year-over-year increase in our total consolidated revenues, which we see as a positive sign given the current state of the oil and gas industry.
Energy and Environmental Services, Inc. (OTC: EESE), based in Edmond, Oklahoma, participates in the oilfield chemical, anti-corrosive coatings and biotech industries. EES was established in 1991 and management has over 50 years of experience blending, manufacturing and packaging custom liquids and solid chemicals for the oil, gas and agricultural industries. Additionally, EES has expanded to develop innovative products and applications for enzyme system technologies and livestock feed supplements.
Our 2018 annual report and proxy statement can be viewed on the EES website in the Investor section at www.eesokc.com and on the OTC markets website www.otcmarkets.com, under our filings and disclosure.
Safe Harbor for Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Energy & Environmental Services actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Energy & Environmental Services expressly disclaims any intent or obligation to update any forward-looking statements.
SOURCE Energy and Environmental Services, Inc.