Energy Services Of America Announces Earnings

|May 14|magazine12 min read

HUNTINGTON, W.Va., May 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 earnings for the three and six months ended March 31, 2020.  Energy Services earned revenues of $18.1 million and $47.0 million for the three and six months ended March 31, 2020, respectively.  Net loss available to common shareholders was ($1.8) million and ($1.9) million for the three and six months ended March 31, 2020, respectively.  The Company had adjusted EBITDA of ($1.2) million (($0.08) per share) and ($296,000) (($0.02) per share) for the three and six months ended March 31, 2020, respectively.  The backlog at March 31, 2020 was $92.4 million

Douglas Reynolds, President, commented on the announcement.  "Even before the global COVID-19 pandemic, we saw a large decrease in work coming for the six months ended March 31, 2020 as most of the bidding opportunities that we received were scheduled to start after March 2020."  Reynolds continued, "We can't easily measure the impact that the  COVID-19 pandemic had on our second quarter, but we expect to see a more significant impact in the third and fourth quarters of fiscal year 2020 as several customers have delayed or cancelled projects.  However, we do have customers that have elected to continue projects with greater safety precautions.  The Company will start more than $25.0 million in new construction projects between April and early June 2020 and continues to receive bidding opportunities."   

Below is a comparison of the Company's unaudited operating results for the three and six months ended March 31, 2020 and 2019: 




Three Months Ended


Three Months Ended


Six Months Ended


Six Months Ended




March 31, 


March 31, 


March 31, 


March 31, 




2020


2019


2020


2019





















Revenue

$         18,072,400


$      46,955,444


$        43,915,707


$       96,069,583











Cost of revenues

18,001,931


46,364,050


41,488,496


91,643,344












Gross profit

70,469


591,394


2,427,211


4,426,239











Selling and administrative expenses

2,345,509


2,012,282


4,941,281


4,768,673


Loss from operations

(2,275,040)


(1,420,888)


(2,514,070)


(342,434)











Other income (expense)









Interest income

-


16,501


53,249


58,023


Other nonoperating expense

(42,741)


(20,581)


(76,679)


(53,576)


Interest expense

(112,017)


(209,125)


(298,862)


(413,474)


Gain on sale of equipment

223,775


111,817


519,766


137,569




69,017


(101,388)


197,474


(271,458)












Loss before income taxes

(2,206,023)


(1,522,276)


(2,316,596)


(613,892)












Income tax benefit

(511,412)


(397,818)


(547,871)


(120,818)












Net loss

(1,694,611)


(1,124,458)


(1,768,725)


(493,074)












Dividends on preferred stock

77,250


77,250


154,500


154,500





















Net loss available to common shareholders

$         (1,771,861)


$      (1,201,708)


$        (1,923,225)


$           (647,574)












Weighted average shares outstanding-basic

13,783,546


14,060,456


13,877,243


14,102,117












Weighted average shares-diluted 

13,783,546


14,060,456


13,877,243


14,102,117












Loss per share










available to common shareholders

$                (0.129)


$             (0.085)


$               (0.139)


$              (0.046)












Loss per share-diluted










available to common shareholders

$                (0.129)


$             (0.085)


$               (0.139)


$              (0.046)

 

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


Three Months Ended


Three Months Ended


Six Months Ended


Six Months Ended


March 31, 2020


March 31, 2019


March 31, 2020


March 31, 2019


Unaudited


Unaudited


Unaudited


Unaudited









Net loss available to








  common shareholders

$             (1,771,861)


$             (1,201,708)


$             (1,923,225)


$                (647,574)









Add: Income tax benefit

(511,412)


(397,818)


(547,871)


(120,818)









Add: Dividends on preferred stock

77,250


77,250


154,500


154,500









Add:  Interest expense

112,017


209,125


298,862


413,474









Less: Non-operating expense (income)

(181,034)


(107,737)


(496,336)


(142,016)









Add: Depreciation expense

1,122,509


1,040,222


2,217,791


2,062,589









Adjusted EBITDA

$             (1,152,531)


$                (380,666)


$                (296,279)


$              1,720,155

Common shares outstanding

13,783,546


14,060,456


13,877,243


14,102,117

Adjusted EBITDA per common share

$                      (0.08)


$                      (0.03)


$                      (0.02)


$                       0.12

 

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