EES Announces Increased Revenues for Third Quarter 2018

OKLAHOMA CITY, Nov. 14, 2018 /PRNewswire/ -- Energy and Environmental Services, Inc. (OTC: EESE) today announced its unaudited financial results for the third quarter ended September 30, 2018.

"We continue to increase operating revenue, which builds a better financial foundation.  I give credit to our dedicated employees, who are putting their core values to work," stated Leon Joyce, CEO.

Third Quarter 2018 Financial Highlights

• Sales revenues increased $332,500 or 27% from $1,209,100 in the Third Quarter 2017 to $1,541,600 for the Third Quarter 2018.  Sales revenues increased $2,268,500 or 79% from $2,871,200 in the Nine Months 2017 to $5,139,700 for the Nine Months 2018.
• Operating expenses were reduced $188,500 or 19% from $978,200 in the Third Quarter 2017 to $789,700 in the Third Quarter 2018.  The Nine Months 2018 saw a reduction of $526,200 or 17% from $3,129,500 in the Nine Months 2017 to $2,603,300 in the Nine Months 2018. 
• EBITDA for the Third Quarter 2018 was $(58,300) compared to $131,400 for the Third Quarter 2017.  EBITDA for the Nine Months 2018 was $166,000 compared to $(570,000) for the Nine Months 2017.
• Net loss for the Third Quarter 2018 was $(129,200) versus net income of $26,000 in the Third Quarter 2017.  Net loss for the Nine Months 2018 was $(47,200) versus a net loss of $(833,100) in the Nine Months 2017.

Capital Resources and Outlook

EES's primary source of capital has been cash flow from operations.  It has limited borrowings in recent years and has not sold shares to generate capital.  Cash used in operations for the Nine Months 2018 was $(923,500), which reflects a net decrease of $1,235,800 from December 31, 2017.  Much of the net decrease came from a $1,206,700 increase in accounts receivable and a $368,300 increase in inventories, which were partially offset by a $145,000 increase in accounts payable.  These changes generally reflect the increased activity from higher product sales.  With working capital of $5,326,600 at September 30, 2018, EES has sufficient capacity to meet its cash needs and will continue to focus on generating EBITDA.

EES has a strong balance sheet with $2,415,600 of cash and cash equivalents and working capital of $5,326,600 at September 30, 2018.  EES believes its revenues will continue to increase and that it can contain its costs and expenses.  EES expects that chemical sales will continue to grow with the newly separated product lines, improved customer service and strong oil and gas industry activity.

About EES

Energy and Environmental Services, Inc. (EES), based in Oklahoma City, participates in the oilfield chemical, anti-corrosive coatings and biotech industries.  EES was established in 1991 and management has over 50 years of experience blending, manufacturing and packaging custom liquids and solid chemicals for the oil, gas and agricultural industries.  Additionally, EES has expanded to develop innovative products and applications for enzyme system technologies, livestock feed supplements, specialized anti-corrosive coatings and solar well treatment systems. 

Company website: 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.