Energy Services of America Announces Financial Results
HUNTINGTON, W.Va., Aug. 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 financial results for the three and nine months ended June 30, 2020. Energy Services earned revenues of $30.8 million and $74.7 million for the three and nine months ended June 30, 2020, respectively. Net loss available to common shareholders was ($95,000) and ($2.0) million for the three and nine months ended June 30, 2020, respectively. The Company had adjusted EBITDA of $1.4 million ($0.10 per share) and $1.1 million ($0.08 per share) for the three and nine months ended June 30, 2020, respectively. The backlog at June 30, 2020 was $69.8 million.
Douglas Reynolds, President, commented on the announcement. "The COVID-19 pandemic had a significant effect on the three months ended June 30, 2020. However, many of our customers have continued with projects and we are receiving new bid opportunities. Also, our employee count at June 30, 2020 was higher compared to March 31, 2020." Reynolds continued, "While we are seeing positive signs, we could see a significant impact in the fourth quarter of fiscal year if there is a worsening of the pandemic."
Below is a comparison of the Company's unaudited operating results for the three and nine months ended June 30, 2020 and 2019:
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
June 30, | June 30, | June 30, | June 30, | ||||||
2020 | 2019 | 2020 | 2019 | ||||||
Revenue | $ 30,762,725 | $ 40,187,978 | $ 74,678,432 | $ 136,257,561 | |||||
Cost of revenues | 27,936,548 | 36,936,926 | 69,425,044 | 128,580,270 | |||||
Gross profit | 2,826,177 | 3,251,052 | 5,253,388 | 7,677,291 | |||||
Selling and administrative expenses | 2,532,141 | 2,021,359 | 7,473,422 | 6,790,032 | |||||
Income (loss) from operations | 294,036 | 1,229,693 | (2,220,034) | 887,259 | |||||
Other income (expense) | |||||||||
Interest income | 83 | - | 53,332 | 58,023 | |||||
Other nonoperating expense | (53,793) | (25,736) | (130,472) | (79,312) | |||||
Interest expense | (101,335) | (331,067) | (400,197) | (744,541) | |||||
Gain on sale of equipment | 43,296 | 68,672 | 563,062 | 206,241 | |||||
(111,749) | (288,131) | 85,725 | (559,589) | ||||||
Income (loss) before income taxes | 182,287 | 941,562 | (2,134,309) | 327,670 | |||||
Income tax expense (benefit) | 200,242 | 455,805 | (347,629) | 334,987 | |||||
Net (loss) income | (17,955) | 485,757 | (1,786,680) | (7,317) | |||||
Dividends on preferred stock | 77,250 | 77,250 | 231,750 | 231,750 | |||||
Net (loss) income available to common shareholders | $ (95,205) | $ 408,507 | $ (2,018,430) | $ (239,067) | |||||
Weighted average shares outstanding-basic | 13,627,293 | 13,985,579 | 13,844,340 | 14,080,299 | |||||
Weighted average shares-diluted | 13,627,293 | 17,418,912 | 13,844,340 | 14,080,299 | |||||
(Loss) earnings per share | |||||||||
available to common shareholders | $ (0.007) | $ 0.029 | $ (0.146) | $ (0.017) | |||||
(Loss) earnings per share-diluted | |||||||||
available to common shareholders | $ (0.007) | $ 0.023 | $ (0.146) | $ (0.017) | |||||
Please refer to the table below that reconciles adjusted EBITDA and adjusted EBITDA per common share with net (loss) income available to common shareholders:
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||
Net (loss) income available to | |||||||
common shareholders | $ (95,205) | $ 408,507 | $ (2,018,430) | $ (239,067) | |||
Add: Income tax benefit (expense) | 200,242 | 455,805 | (347,629) | 334,987 | |||
Add: Dividends on preferred stock | 77,250 | 77,250 | 231,750 | 231,750 | |||
Add: Interest expense | 101,335 | 331,067 | 400,197 | 744,541 | |||
Less: Non-operating expense (income) | 10,414 | (42,936) | (485,922) | (184,952) | |||
Add: Depreciation expense | 1,097,750 | 1,073,387 | 3,315,541 | 3,187,733 | |||
Adjusted EBITDA | $ 1,391,786 | $ 2,303,080 | $ 1,095,507 | $ 4,074,992 | |||
Common shares outstanding | 13,627,293 | 13,985,579 | 13,844,340 | 14,080,299 | |||
Adjusted EBITDA per common share | $ 0.10 | $ 0.16 | $ 0.08 | $ 0.29 |
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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