Energy Services of America Files Annual Report

HUNTINGTON, W.Va., Dec. 20, 2019 /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 the filing of the Company's Annual Report on Form 10-K. Net income available to common shareholders was $1.7 million for the fiscal year ended September 30, 2019, which was a $516,000 decrease from $2.2 million in fiscal year 2018. Revenues were $174.5 million for the fiscal year ended September 30, 2019, which was a $39.0 million increase from $135.5 million in fiscal year 2018. The Company projects an adjusted EBITDA of $8.0 million, or $0.57 per share, and earnings per share of $0.12 on a weighted average of 14,064,871 common shares outstanding for fiscal year 2019. The projected backlog at September 30, 2019 was $63.0 million.

Douglas Reynolds, President, commented on the announcement. "The past couple years have been tough in the pipeline industry in our region. We started a twenty-mile pipeline project in northern West Virginia in June 2018 that we successfully completed in September 2019. While that project primarily contributed to our increased revenues for fiscal year 2019, we had to navigate significant obstacles to minimize the loss and maintain a cash positive position on the project. In the end, it was the diversity of the services that we provide that allowed us to overcome those challenges."

Below is a comparison of the Company's unaudited operating results for fiscal year 2019 compared to fiscal year 2018:

                                                               
         Year Ended          
         Year Ended


                                                             
       September 30, 2019    
       September 30, 2018






     Revenue                                                           $174,541,155               $135,482,771





     Cost of revenues                                                   161,861,357                123,833,517





                            Gross profit                                    12,679,798                 11,649,254




      Selling and administrative expenses                                  8,857,386                  7,728,182



                            Income from
                             operations                                      3,822,412                  3,921,072





     Other income (expense)


                            Interest income                                     58,023                    132,342


                            Other
                             nonoperating
                             expense                                         (112,814)                 (174,576)


                            Interest expense                               (1,064,222)                 (916,675)


                            Gain on sale of
                             equipment                                         258,082                    456,894



                                                                             (860,931)                 (502,015)




                            Income before
                             income taxes                                    2,961,481                  3,419,057




                            Income tax
                             expense                                           968,571                    910,034




                            Net income                                       1,992,910                  2,509,023




                            Dividends on
                             preferred stock                                   309,000                    309,000






                            Net income
                             available to
                             common
                             shareholders                                   $1,683,910                 $2,200,023







                            Weighted average
                             shares
                             outstanding-
                             basic                                          14,064,871                 14,234,571




                            Weighted average
                             shares-diluted                                 17,498,204                 17,667,904




                            Earnings per
                             share


                            available to common shareholders                    $0.120                     $0.155





                            Earnings per
                             share-diluted


                            available to common shareholders                    $0.096                     $0.125

Please refer to the table below that reconciles adjusted EBITDA and adjusted EBITDA per common share with net income available to common shareholders:

                                              2019       2018






      Net income available to



       common shareholders             $1,683,910 $2,200,023




      Add: Income tax expense              968,571    910,034




      Add: Dividends on preferred stock    309,000    309,000





     Add:  Interest expense             1,064,222    916,675




      Less: Non-operating income         (203,291) (414,660)




      Add: Depreciation expense          4,157,849  4,209,056





     Adjusted EBITDA                   $7,980,261 $8,130,128


      Weighted average shares
       outstanding-basic                14,064,871 14,234,571


      Adjusted EBITDA per common share       $0.57      $0.57

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.

View original content:http://www.prnewswire.com/news-releases/energy-services-of-america-files-annual-report-300978368.html

SOURCE Energy Services of America Corporation