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Energy Services of America Files Quarterly Report

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Energy Services of America Files Quarterly Report

PR Newswire

HUNTINGTON, W.Va., Aug. 14, 2018 /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, 2018.  Energy Services earned revenues of $29.5 million and $85.2 million for the three and nine months ended June 30, 2018, respectively.  Net income available to common shareholders was $1.0 million and $65,000 for the three and nine months ended June 30, 2018, respectively.  The Company had adjusted EBITDA of $2.7 million ($0.19 per share) and $3.9 million ($0.27 per share) for the three and nine months ended June 30, 2018, respectively.  The backlog at June 30, 2018 was $84.4 million; however, the backlog does not include $12.0 million in pipeline projects that were awarded in July 2018. 

Below is a comparison of the Company's operating results for the three and nine months ended June 30, 2018 and 2017:




Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended




June 30,


June 30,


June 30,


June 30,




2018


2017


2018


2017





















Revenue

$        29,549,659


$     35,686,215


$       85,190,295


$       98,554,692











Cost of revenues

26,166,268


37,124,756


78,775,352


93,796,294












Gross profit (loss)

3,383,391


(1,438,541)


6,414,943


4,758,398











Selling and administrative expenses

1,773,304


1,600,454


5,738,751


5,735,342


Income (loss) from operations

1,610,087


(3,038,995)


676,192


(976,944)











Other income (expense)









Interest income

-


-


132,342


-


Other nonoperating expense

(55,016)


5,112


(157,163)


(106,548)


Interest expense

(190,781)


(183,583)


(730,333)


(558,098)


Gain on sale of equipment

7,572


26,431


395,947


95,262




(238,225)


(152,040)


(359,207)


(569,384)












Income (loss) before income taxes

1,371,862


(3,191,035)


316,985


(1,546,328)












Income tax expense (benefit)

275,595


(1,323,887)


19,793


(605,298)












Net income (loss)

1,096,267


(1,867,148)


297,192


(941,030)












Dividends on preferred stock

77,250


77,250


231,750


231,750











Net income (loss) available to common shareholders

$          1,019,017


$      (1,944,398)


$             65,442


$        (1,172,780)












Weighted average shares outstanding-basic

14,239,836


14,239,836


14,239,836


14,239,836












Weighted average shares-diluted 

17,673,169


14,239,836


17,673,169


14,239,836


Earnings (loss) per share from continuing operations









    available to common shareholders

$                0.072


$            (0.137)


$               0.005


$              (0.082)












Earnings (loss) per share from continuing operations-diluted









    available to common shareholders

$                0.058


$            (0.137)


$               0.004


$              (0.082)












Earnings (loss) per share









    available to common shareholders

$                0.072


$            (0.137)


$               0.005


$              (0.082)












Earnings (loss) per share-diluted









    available to common shareholders

$                0.058


$            (0.137)


$               0.004


$              (0.082)











 

Total revenues decreased by $6.2 million or 17.2% to $29.5 million for the three months ended June 30, 2018 from $35.7 million for the same period in 2017.  Total gross profit increased by $4.8 million or 335.2% to $3.4 million for the three months ended June 30, 2018, from a $1.4 million gross loss for the same period in 2017. 

Total revenues decreased by $13.4 million or 13.6% to $85.2 million for the nine months ended June 30, 2018 from $98.6 million for the same period in 2017. Total gross profit increased by $1.6 million or 34.8% to $6.4 million for the nine months ended June 30, 2018, from $4.8 million for the same period in 2017. 

Douglas Reynolds, President, commented on the announcement.  "During the third quarter of fiscal year 2017, we ran into significant problems on two pipeline projects.  That resulted in a disappointing fiscal year 2017 and left us with questions on how to improve operations of the Company and maximize shareholder value.  We feel that we have successfully addressed several issues within the Company and are seeing an immediate impact in operations and customer relations.  We are expecting to have a strong finish to the fourth quarter of fiscal year 2018 that will continue into the first quarter of fiscal year 2019."  Reynolds continued, "The Company also recently announced a one-year share repurchase program that will begin on August 16, 2018.  Under which, the Company may repurchase up to 10%, or approximately 1.4 million shares, of the Company's outstanding common stock.  This repurchase program demonstrates the Board's confidence in our Company's future and our commitment to maximizing value for our shareholders."        

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

 


Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended


June 30, 2018


June 30, 2017


June 30, 2018


June 30, 2017


Unaudited


Unaudited


Unaudited


Unaudited









Net income (loss) available to








  common shareholders

$             1,019,017


$            (1,944,398)


$                   65,442


$            (1,172,780)









Add: Income tax expense (benefit)

275,595


(1,323,887)


19,793


(605,298)









Add: Dividends on preferred stock

77,250


77,250


231,750


231,750









Add:  Interest expense

190,781


183,583


730,333


558,098









Less: Non-operating expense (income)

47,444


(31,543)


(371,126)


11,286









Add: Depreciation expense

1,073,387


880,467


3,187,733


2,286,618









Adjusted EBITDA

$             2,683,474


$            (2,158,528)


$             3,863,925


$             1,309,674

Common shares outstanding

14,239,836


14,239,836


14,239,836


14,239,836

Adjusted EBITDA per common share

$                        0.19


$                      (0.15)


$                        0.27


$                        0.09









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.

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SOURCE Energy Services of America Corporation

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