Energy Services of America Announces Financial Results
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
