Le Lézard
Classified in: Oil industry, Business
Subject: ERN

Energy Services of America Files Quarterly Report


HUNTINGTON, W.Va., Aug. 14, 2019 /PRNewswire/ -- Energy Services of America (the "Company" or "Energy Services") (OTC QB: ESOA), parent company of C.J. Hughes Construction Company ("C.J. Hughes") and Nitro Construction Services, Inc. ("Nitro"), announced the filing of the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2019.  Energy Services earned revenues of $40.2 million and $136.3 million for the three and nine months ended June 30, 2019, respectively.  Net income (loss) available to common shareholders was $409,000 and $(239,000) for the three and nine months ended June 30, 2019, respectively.  The Company had adjusted EBITDA of $2.3 million ($0.16 per share) and $4.0 million ($0.28 per share) for the three and nine months ended June 30, 2019, respectively.  The backlog at June 30, 2019 was $49.8 million

Below is a comparison of the Company's operating results for the three and nine months ended June 30, 2019 and 2018:




Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended




June 30, 


June 30, 


June 30, 


June 30, 




2019


2018


2019


2018





















Revenue

$        40,187,978


$     29,549,659


$     136,257,561


$       85,190,295











Cost of revenues

36,936,926


26,166,268


128,580,270


78,775,352












Gross profit

3,251,052


3,383,391


7,677,291


6,414,943











Selling and administrative expenses

2,021,359


1,773,304


6,790,032


5,738,751


Income from operations

1,229,693


1,610,087


887,259


676,192











Other income (expense)









Interest income

-


-


58,023


132,342


Other nonoperating expense

(25,736)


(55,016)


(79,312)


(157,163)


Interest expense

(331,067)


(190,781)


(744,541)


(730,333)


Gain on sale of equipment

68,672


7,572


206,241


395,947




(288,131)


(238,225)


(559,589)


(359,207)












Income before income taxes

941,562


1,371,862


327,670


316,985












Income tax benefit

455,805


275,595


334,987


19,793












Net income (loss)

485,757


1,096,267


(7,317)


297,192












Dividends on preferred stock

77,250


77,250


231,750


231,750





















Net income (loss) available to common shareholders

$             408,507


$       1,019,017


$           (239,067)


$             65,442












Weighted average shares outstanding-basic

13,985,579


14,239,836


14,080,299


14,239,836












Weighted average shares-diluted 

17,418,912


17,673,169


14,080,299


17,673,169












Earnings (loss) per share










available to common shareholders

$                0.029


$             0.072


$              (0.017)


$               0.005












Earnings (loss) per share-diluted










available to common shareholders

$                0.023


$             0.058


$              (0.017)


$               0.004











Revenues increased by $10.7 million or 36.0% to $40.2 million for the three months ended June 30, 2019 from $29.5 million for the same period in 2018.  The increase was primarily attributable to a $7.0 million revenue increase in petroleum and gas work, a $2.5 million revenue increase in electrical and mechanical services and a $1.1 million revenue increase in water and sewer projects and other ancillary services.

Douglas Reynolds, President, commented on the announcement.  "Fiscal year 2019 has been greatly impacted by a twenty-mile pipeline project in northern West Virginia.  We expect the project to finish cash positive; however, environmental delays and weather-related production inefficiencies had a significant impact on profitability.  Final restoration was complete in early August 2019 and only a small amount of fence replacement remains."  Reynolds continued, "Our remaining projects are largely performing as expected.  While new pipeline installation work has slowed, we have been successful in obtaining a significant amount of maintenance work on existing pipelines. We are still bidding work for fiscal year 2019 and are looking for several new projects to finish this construction season and supplement our existing backlog."  

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


Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended


June 30, 2019


June 30, 2018


June 30, 2019


June 30, 2018


Unaudited


Unaudited


Unaudited


Unaudited









Net income (loss) available to








  common shareholders

$                 408,507


$             1,019,017


$               (239,067)


$                   65,442









Add: Income tax benefit

455,805


275,595


334,987


19,793









Add: Dividends on preferred stock

77,250


77,250


231,750


231,750









Add:  Interest expense

331,067


190,781


744,541


730,333









Less: Non-operating expense (income)

(42,936)


47,444


(184,952)


(371,126)









Add: Depreciation expense

1,048,581


1,073,387


3,111,170


3,187,733









Adjusted EBITDA

$             2,278,274


$             2,683,474


$             3,998,429


$             3,863,925

Common shares outstanding

13,985,579


14,239,836


14,080,299


14,239,836

Adjusted EBITDA per common share

$                        0.16


$                        0.19


$                        0.28


$                        0.27

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.

SOURCE Energy Services of America


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