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Energy Services Of America Files Annual Report

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HUNTINGTON, W.Va., Jan. 4, 2021 /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.  Energy Services earned revenues of $119.2 million with an income before tax of $3.6 million for fiscal year 2020.  The Company had a net income available to common shareholders of $2.1 million and an adjusted EBITDA of $8.1 million for fiscal year ended September 30, 2020. 

On December 11, 2020, the Company issued an earnings release in which the Company reported an income tax expense of $3.8 million due to Internal Revenue Service guidelines on the deductibility of Paycheck Protection Program ("PPP") expenditures.  At that time, PPP expenses were not tax deductible in the tax year spent for loan recipients that believe forgiveness is "reasonably certain", but not yet received. This resulted in a net loss available to common shareholders of ($533,000) for fiscal year 2020.  

On December 27, 2020, the Consolidated Appropriations Act (the "Act") was signed into law. Included in the Act was additional COVID-19 aid for PPP loan recipients that allowed the tax deductibility of PPP expenditures.  This resulted in $2.7 million in less income tax expense than the Company previously reported on December 11, 2020.  As a result, the Company's net income available to common shareholders was $2.1 million for fiscal year 2020.

Below is a comparison of the Company's audited operating results for fiscal year 2020 compared to fiscal year 2019: 




2020


2019







Revenue

$           119,194,440


$           174,541,155







Cost of revenues

105,693,209


161,861,357








Gross profit

13,501,231


12,679,798







Selling and administrative expenses

9,831,578


8,857,386


Income from operations

3,669,653


3,822,412







Other income (expense)





Interest income

53,332


58,023


Other nonoperating expense

(239,862)


(112,814)


Interest expense

(486,246)


(1,064,222)


Gain on sale of equipment

579,326


258,082




(93,450)


(860,931)








Income before income taxes

3,576,203


2,961,481








Income tax expense

1,143,186


968,571








Net income

2,433,017


1,992,910








Dividends on preferred stock

309,000


309,000








Net income available to common shareholders

$                2,124,017


$                1,683,910














Weighted average shares outstanding-basic

13,804,835


14,064,871








Weighted average shares-diluted 

17,238,168


17,498,204








Earnings per share






available to common shareholders

$                        0.154


$                        0.120








Earnings per share-diluted






available to common shareholders

$                        0.123


$                        0.096

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



2020


2019











Net income available to





  common shareholders


$             2,124,017


$             1,683,910






Add: Income tax expense


1,143,186


968,571






Add: Dividends on preferred stock


309,000


309,000






Add:  Interest expense


486,246


1,064,222






Less: Non-operating income


(392,796)


(203,291)






Add: Depreciation expense


4,395,362


4,157,849






Adjusted EBITDA


$             8,065,015


$             7,980,261

Weighted average shares outstanding-basic


13,804,835


14,064,871

Adjusted EBITDA per common share


$                        0.58


$                        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.

Cision View original content:http://www.prnewswire.com/news-releases/energy-services-of-america-files-annual-report-301200641.html

SOURCE Energy Services of America

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