ENERGY SERVICES OF AMERICA FILES ANNUAL REPORT
HUNTINGTON, W.Va., Dec. 29, 2021 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTCQB: ESOA), generated revenues of $122.5 million, adjusted EBITDA of $3.8 million, net income available to common shareholders of $8.8 million and fully diluted earnings per share of $0.52 for the fiscal year ended September 30, 2021. The Company had backlog of $72.2 million at September 30, 2021.
Subsequent to the end of the fiscal year, the Company was awarded a $5.8 million verdict in a previously disclosed lawsuit against a former customer. The Company anticipates that a final judgement order will be issued during the first calendar quarter of 2022, which can be appealed up to thirty days after the judgement is entered. To date, the Company has not recognized the award in its financial statements.
Douglas Reynolds, President, commented on the announcement. "I am pleased with the progress we made during fiscal 2021 as we continue to build the foundation for future growth. During the year we expanded our gas and water distribution business geographically via acquisition and moved into both general contracting and solar installation in our core geographic markets. At the same time our balance sheet was strengthened with the forgiveness of the PPP loans, and we were able to simplify our capital structure by converting our preferred stock." Reynolds continued, "Looking ahead we will continue to invest in the business and add talented people and business lines to grow the company and we anticipate that fiscal year 2022 will result in increased growth and profitability."
Below is a comparison of the Company's operating results for fiscal year 2021 compared to fiscal year 2020:
Year Ended | Year Ended | ||||
September 30, 2021 | September 30, 2020 | ||||
Revenue | $ 122,465,826 | $ 119,194,440 | |||
Cost of revenues | 109,544,804 | 105,693,209 | |||
Gross profit | 12,921,022 | 13,501,231 | |||
Selling and administrative expenses | 13,813,644 | 9,831,578 | |||
Income from operations | (892,622) | 3,669,653 | |||
Other income (expense) | |||||
Interest income | 286,645 | 53,332 | |||
Paycheck Protection Program loan forgiveness | 9,839,100 | - | |||
Other nonoperating expense | (289,330) | (239,862) | |||
Interest expense | (557,320) | (486,246) | |||
Gain on sale of equipment | 681,653 | 579,326 | |||
9,960,748 | (93,450) | ||||
Income before income taxes | 9,068,126 | 3,576,203 | |||
Income tax (benefit) expense | (29,129) | 1,143,186 | |||
Net income | 9,097,255 | 2,433,017 | |||
Dividends on preferred stock | 284,238 | 309,000 | |||
Net income available to common shareholders | $ 8,813,017 | $ 2,124,017 | |||
Weighted average shares outstanding-basic | 13,621,406 | 13,804,835 | |||
Weighted average shares-diluted | 16,988,424 | 17,238,168 | |||
Earnings per share | |||||
available to common shareholders | $ 0.647 | $ 0.154 | |||
Earnings per share-diluted | |||||
available to common shareholders | $ 0.519 | $ 0.123 | |||
Please refer to the table below that reconciles adjusted EBITDA with net income available to common shareholders:
Year Ended | Year Ended | |||
September 30, 2021 | September 30, 2020 | |||
Net income available to | ||||
common shareholders | $ 8,813,017 | $ 2,124,017 | ||
Add: Income tax (benefit) expense | (29,129) | 1,143,186 | ||
Add: Dividends on preferred stock | 284,238 | 309,000 | ||
Add: Interest expense | 557,320 | 486,246 | ||
Less: Non-operating income | (10,518,068) | (392,796) | ||
Add: Depreciation expense | 4,661,789 | 4,395,362 | ||
Adjusted EBITDA | $ 3,769,167 | $ 8,065,015 |
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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