Energy Services of America Announces Financial Results

|Aug 14|magazine11 min read

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.

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SOURCE Energy Services of America Corporation