OKLAHOMA CITY, March 30, 2020 /PRNewswire/ -- Energy and Environmental Services, Inc. (OTC-PINK: EESE) announced its unaudited financial results for the year ended December 31, 2019. Revenues increased from $7,201,300 to $8,566,800 in 2019. The cost of sale margins also improved in 2019, which were 52.0% of sales in 2018 versus 34.0% of sales in 2019. Despite these increases, EES realized a net loss from operations of $(414,400) in 2019 versus net income from operations of $39,300 in 2018. The 2019 loss was due primarily to increased general and administrative costs. The acquisitions of Patriot Chemicals and Graham Trucking in 2019 grew revenues, but also resulted in higher general and administrative expenses.
EES finished 2019 with working capital of $4,460,400, cash and cash equivalents of $1,600,600, and inventory of $518,200. In addition to acquisition consideration of $3,5 million in 2019, EES invested nearly $800,000 in property, plant and equipment.
"Our people deserve all the credit. They make us great," stated Leon Joyce, CEO. "You need top notch people to take care of your customers and that is exactly what we have," he added. "Our strategy to grow by acquiring companies is working. The strategic acquisitions of Patriot Chemicals and Graham Trucking greatly contributed to the growth. We will continue to invest in our future."
2019 EES Financial Highlights
Pro-Forma Financial Highlights
The pro forma results reflect the acquisitions at the beginning of the periods.
Year Ended December 31,
Earnings from continuing operations
EES is entering a very trying time, not only in the oil and gas industry, but in the broader economy. In March 2020, the market experienced a precipitous decline in oil prices in response to oil demand concerns due to the economic impacts of the COVID-19 virus and anticipated increases in supply from Russia and OPEC, particularly Saudi Arabia. During 2019, WTI crude oil price averaged approximately $56.05 per barrel. As of March 25, 2020, the WTI crude oil price closed at $24.49. Despite these developments, EES has shown recent sales success. During 2019, Patriot opened a new yard in Canadian, Texas, and EES completed manufacturing upgrades to its Snyder, Texas facility. With these and other measures, EES anticipates continued growth in its production chemicals segment. It anticipates increases in coating sales in 2020. It installed a new 35-foot oven, which it expects to be operational by the second quarter 2020. This oven should give EES the capacity to coat larger volumes of pipe, which will allow it to better meet the demand for coated pipe.
EES's 2019 annual report and proxy statement can be viewed on its website in the Investor section at www.eesokc.com and on the OTC markets website www.otcmarkets.com, under its filings and disclosure.
Further announcements will be forthcoming.
Established in 1991, Energy and Environmental Services, Inc. (OTC: EESE) owns and operates factories and warehouses in Oklahoma and Texas where it manufactures, blends, and packages custom liquid, solid, and dry powder chemical products for the oil & gas, agricultural, and protective coatings industries. EES has also expanded to develop innovative products and applications for enzyme system technologies and livestock feed supplements.
Please visit EES's website at www.eesokc.com.
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.