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      Energy Services of America Files Annual Report


      News provided by

      Energy Services of America Corporation

      Dec 15, 2017, 12:00 ET

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      HUNTINGTON, W.Va., Dec. 15, 2017 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTC QB: ESOA), parent company of C.J. Hughes Construction Company, Inc. and Nitro Electric Company, Inc. announced today the filing of the Company's Annual Report on Form 10-K for the year ended September 30, 2017.  For the fourth quarter of fiscal year 2017, the Company had revenue of $41.9 million, gross profit of $3.0 million, and income available to common shareholders of $476,000.  For fiscal year 2017, the Company had revenue of $140.5 million, gross profit of $7.8 million, and a loss available to common shareholders of $697,000.  The Company had an adjusted EBITDA of $3.6 million, or $0.25 per share, and loss per share of $(0.05) on 14,239,836 common shares outstanding for fiscal year 2017.  The backlog at September 30, 2017 was $62.5 million. 

      Douglas Reynolds, President, commented on the announcement.  "After a rough third quarter, we were able to get back on track in the fourth quarter of fiscal year 2017.  A widespread labor shortage in the pipeline industry and above average inclement weather led to significant production delays on two major projects.  We absorbed those losses in the third quarter and were able to improve our estimates in the fourth quarter.  We also had several very successful projects that helped to reduce the loss available to common shareholders for fiscal year 2017 while generating a positive EBITDA of $3.6 million."

      Below is a comparison of the Company's unaudited operating results for fiscal year 2017 compared to fiscal year 2016: 




      Three Months Ended


      Three Months Ended


      Year Ended


      Year Ended




      September 30, 2017


      September 30, 2016


      September 30, 2017


      September 30, 2016











      Revenue


      $              41,941,034


      $              49,731,058


      $           140,495,726


      $           155,481,145











      Cost of revenues

      38,915,516


      44,846,960


      132,711,810


      141,283,142












      Gross profit

      3,025,518


      4,884,098


      7,783,916


      14,198,003











      Selling and administrative expenses

      1,666,427


      1,647,071


      7,401,769


      7,293,323


      Income from operations

      1,359,091


      3,237,027


      382,147


      6,904,680











      Other income (expense)









      Other nonoperating income (expense)

      (55,874)


      (85,826)


      (162,422)


      (158,246)


      Interest expense

      (275,326)


      (238,842)


      (833,424)


      (875,254)


      Gain on sale of equipment

      50,313


      130,791


      145,575


      268,448




      (280,887)


      (193,877)


      (850,271)


      (765,052)












      Income (loss) from continuing operations before income taxes

      1,078,204


      3,043,150


      (468,124)


      6,139,628












      Income tax (benefit) expense

      524,930


      1,367,573


      (80,368)


      2,898,205












      Income (loss) from continuing operations

      553,274


      1,675,577


      (387,756)


      3,241,423












      Dividends on preferred stock

      77,250


      77,250


      309,000


      309,000












      Income (loss) from continuing operations 









         available to common shareholders

      476,024


      1,598,327


      (696,756)


      2,932,423












      Income from discontinued operations









           net of tax expense

      -


      -


      -


      -











      Net income (loss) available to common shareholders

      $                    476,024


      $                1,598,327


      $                 (696,756)


      $                2,932,423












      Weighted average shares outstanding-basic

      14,239,836


      14,239,836


      14,239,836


      14,239,836












      Weighted average shares-diluted 

      17,673,169


      17,673,169


      14,239,836


      17,673,169












      Earnings (loss) per share










      available to common shareholders

      $                        0.033


      $                        0.112


      $                      (0.049)


      $                        0.206












      Earnings (loss) per share-diluted










      available to common shareholders

      $                        0.027


      $                        0.090


      $                      (0.049)


      $                        0.166

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



      2017


      2016











      Net income (loss) available to





        common shareholders


      $               (696,756)


      $             2,932,423






      Add: Income tax (benefit) expense


      (80,368)


      2,898,205






      Add: Dividends on preferred stock


      309,000


      309,000






      Add:  Interest expense


      833,424


      875,254






      Less: Non-operating expense (income)


      16,847


      (110,202)






      Add: Depreciation expense


      3,235,362


      2,503,471






      Adjusted EBITDA


      $               3,617,509


      $               9,408,151

      Common shares outstanding


      14,239,836


      14,239,836

      Adjusted EBITDA per common share


      $                        0.25


      $                        0.66






      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 Corporation

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