EES Announces Year-End 2017 Financial Results
OKLAHOMA CITY, April 23, 2018 /PRNewswire/ -- Energy and Environmental Services, Inc. ("we" or the "Company") (OTC-PINK: EESE) today announced its unaudited financial results for the year ended December 31, 2017.
"With the closing of our 2017 fiscal year, we achieved a more than 90% increase in sales over 2016, which shows our progress in the overall operation of our business," stated Leon Joyce, CEO. "While much has been achieved, we will continue to work on growing revenues, operational efficiency and diversification in 2018," added Joyce.
2017 EES Financial Highlights
- Sales revenues rebounded in 2017 to $3,803,800 from $1,967,300 in 2016. Sales in 2016 and 2015 were much below previous levels and reflected the oil and gas industry slow-down after the dramatic drop in oil prices in 2015. Oil prices showed gains in 2017 and industry activity increased, which buoyed company sales. Increased industry activity also supported higher margins in 2017, which lowered cost of sales.
- The company realized a net operating loss of $(1,466,400) in 2017 versus a net operating loss of $(3,258,500) for 2016. The total net loss in 2017 was $(2,385,600) versus a net loss of $(2,098,000) for 2016. The net loss in 2017 was increased generally by a write-down of obsolete inventory of $(743,000) and a loss on the sale of our office building of $(241,200). These impairments are non-recurring charges.
- The company has a strong balance sheet with $3,651,400 of cash and cash equivalents and working capital of $5,467,900 at December 31, 2017.
Outlook
We showed a strong increase in revenues in 2017. With improving margins, we expect a return to profitability in 2018. Our chemical sales should grow as the oil and gas industry gradually recovers with oil prices recently reaching 3-year highs. We anticipate growth in coating product sales with the Vortex pump barrel joint venture coming on line. Our enzyme and probiotics products are nearing final stages of development, and we expect several products to reach market later this year. The success of these products will diversify and smooth our revenue stream.
Our 2017 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.
Further announcements will be forthcoming.
About EES
Energy and Environmental Services, Inc. (EES), based in Oklahoma City, 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, the company has expanded to develop innovative products and applications for enzyme system technologies, livestock feed supplements, specialized anti-corrosive coatings and solar well treatment systems. Please visit the company's website at www.eesokc.com.
Further announcements will be forthcoming.
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.
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