Energy Services Of America Announces Earnings
HUNTINGTON, W.Va., May 14, 2020 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTC QB: ESOA), parent company of C.J. Hughes Construction Company and Nitro Construction Services, announced earnings for the three and six months ended March 31, 2020. Energy Services earned revenues of $18.1 million and $47.0 million for the three and six months ended March 31, 2020, respectively. Net loss available to common shareholders was ($1.8) million and ($1.9) million for the three and six months ended March 31, 2020, respectively. The Company had adjusted EBITDA of ($1.2) million (($0.08) per share) and ($296,000) (($0.02) per share) for the three and six months ended March 31, 2020, respectively. The backlog at March 31, 2020 was $92.4 million.
Douglas Reynolds, President, commented on the announcement. "Even before the global COVID-19 pandemic, we saw a large decrease in work coming for the six months ended March 31, 2020 as most of the bidding opportunities that we received were scheduled to start after March 2020." Reynolds continued, "We can't easily measure the impact that the COVID-19 pandemic had on our second quarter, but we expect to see a more significant impact in the third and fourth quarters of fiscal year 2020 as several customers have delayed or cancelled projects. However, we do have customers that have elected to continue projects with greater safety precautions. The Company will start more than $25.0 million in new construction projects between April and early June 2020 and continues to receive bidding opportunities."
Below is a comparison of the Company's unaudited operating results for the three and six months ended March 31, 2020 and 2019:
Three Months Ended |
Three Months Ended |
Six Months Ended |
Six Months Ended |
||||||
March 31, |
March 31, |
March 31, |
March 31, |
||||||
2020 |
2019 |
2020 |
2019 |
||||||
Revenue |
$ 18,072,400 |
$ 46,955,444 |
$ 43,915,707 |
$ 96,069,583 |
|||||
Cost of revenues |
18,001,931 |
46,364,050 |
41,488,496 |
91,643,344 |
|||||
Gross profit |
70,469 |
591,394 |
2,427,211 |
4,426,239 |
|||||
Selling and administrative expenses |
2,345,509 |
2,012,282 |
4,941,281 |
4,768,673 |
|||||
Loss from operations |
(2,275,040) |
(1,420,888) |
(2,514,070) |
(342,434) |
|||||
Other income (expense) |
|||||||||
Interest income |
- |
16,501 |
53,249 |
58,023 |
|||||
Other nonoperating expense |
(42,741) |
(20,581) |
(76,679) |
(53,576) |
|||||
Interest expense |
(112,017) |
(209,125) |
(298,862) |
(413,474) |
|||||
Gain on sale of equipment |
223,775 |
111,817 |
519,766 |
137,569 |
|||||
69,017 |
(101,388) |
197,474 |
(271,458) |
||||||
Loss before income taxes |
(2,206,023) |
(1,522,276) |
(2,316,596) |
(613,892) |
|||||
Income tax benefit |
(511,412) |
(397,818) |
(547,871) |
(120,818) |
|||||
Net loss |
(1,694,611) |
(1,124,458) |
(1,768,725) |
(493,074) |
|||||
Dividends on preferred stock |
77,250 |
77,250 |
154,500 |
154,500 |
|||||
Net loss available to common shareholders |
$ (1,771,861) |
$ (1,201,708) |
$ (1,923,225) |
$ (647,574) |
|||||
Weighted average shares outstanding-basic |
13,783,546 |
14,060,456 |
13,877,243 |
14,102,117 |
|||||
Weighted average shares-diluted |
13,783,546 |
14,060,456 |
13,877,243 |
14,102,117 |
|||||
Loss per share |
|||||||||
available to common shareholders |
$ (0.129) |
$ (0.085) |
$ (0.139) |
$ (0.046) |
|||||
Loss per share-diluted |
|||||||||
available to common shareholders |
$ (0.129) |
$ (0.085) |
$ (0.139) |
$ (0.046) |
|||||
Please refer to the table below that reconciles adjusted EBITDA and adjusted EBITDA per common share with net loss available to common shareholders:
Three Months Ended |
Three Months Ended |
Six Months Ended |
Six Months Ended |
||||
March 31, 2020 |
March 31, 2019 |
March 31, 2020 |
March 31, 2019 |
||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
||||
Net loss available to |
|||||||
common shareholders |
$ (1,771,861) |
$ (1,201,708) |
$ (1,923,225) |
$ (647,574) |
|||
Add: Income tax benefit |
(511,412) |
(397,818) |
(547,871) |
(120,818) |
|||
Add: Dividends on preferred stock |
77,250 |
77,250 |
154,500 |
154,500 |
|||
Add: Interest expense |
112,017 |
209,125 |
298,862 |
413,474 |
|||
Less: Non-operating expense (income) |
(181,034) |
(107,737) |
(496,336) |
(142,016) |
|||
Add: Depreciation expense |
1,122,509 |
1,040,222 |
2,217,791 |
2,062,589 |
|||
Adjusted EBITDA |
$ (1,152,531) |
$ (380,666) |
$ (296,279) |
$ 1,720,155 |
|||
Common shares outstanding |
13,783,546 |
14,060,456 |
13,877,243 |
14,102,117 |
|||
Adjusted EBITDA per common share |
$ (0.08) |
$ (0.03) |
$ (0.02) |
$ 0.12 |
Certain statements contained in the release including, without limitation, 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, the effect of the COVID-19 pandemic 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 Corporation
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