UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 10, 2019
Energy Services of America Corporation
(Exact Name of Registrant as Specified in its Charter)
Delaware (State or other Jurisdiction of Incorporation) |
001-32998 File Number) |
20-4606266 (I.R.S. Employer Identification No.) |
75 West 3rd Ave., Huntington, West Virginia | 25701 |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (304) 522-3868
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Ticker symbol(s) | Name of each exchange on which registered |
Not Applicable | Not Applicable | Not Applicable |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations
On December 10, 2019, Energy Services of America Corporation (the “Company”) issued a press release disclosing its results of operations and financial condition at and for the twelve months ended September 30, 2019.
A copy of the press release dated December 10, 2019 is included as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed filed for any purpose.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 Press Release dated December 10, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
ENERGY SERVICES OF AMERICA CORPORATION | ||
DATE: December 10, 2019 | By: | /s/ Charles Crimmel |
Charles Crimmel | ||
Chief Financial Officer |
Exhibit 99.1
ENERGY SERVICES OF AMERICA RELEASES EARNINGS FOR FISCAL YEAR 2019
Huntington, WV December 10, 2019- 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 that net income available to common shareholders was $1.7 million for the fiscal year ended September 30, 2019, which was a $516,000 decrease from $2.2 million in fiscal year 2018. Revenues were $174.5 million for the fiscal year ended September 30, 2019, which was a $39.0 million increase from $135.5 million in fiscal year 2018. The Company projects an adjusted EBITDA of $8.0 million, or $0.57 per share, and earnings per share of $0.12 on a weighted average of 14,064,871 common shares outstanding for fiscal year 2019. The projected backlog at September 30, 2019 was $63.0 million.
Douglas Reynolds, President, commented on the announcement. “The past couple years have been tough in the pipeline industry in our region. We started a twenty-mile pipeline project in northern West Virginia in June 2018 that we successfully completed in September 2019. While that project primarily contributed to our increased revenues for fiscal year 2019, we had to navigate significant obstacles to minimize the loss and maintain a cash positive position on the project. In the end, it was the diversity of the services that we provide that allowed us to overcome those challenges.”
Below is a comparison of the Company’s unaudited operating results for fiscal year 2019 compared to fiscal year 2018:
Year Ended | Year Ended | |||||||
September 30, 2019 | September 30, 2018 | |||||||
Revenue | $ | 174,541,155 | $ | 135,482,771 | ||||
Cost of revenues | 161,861,357 | 123,833,517 | ||||||
Gross profit | 12,679,798 | 11,649,254 | ||||||
Selling and administrative expenses | 8,857,386 | 7,728,182 | ||||||
Income from operations | 3,822,412 | 3,921,072 | ||||||
Other income (expense) | ||||||||
Interest income | 58,023 | 132,342 | ||||||
Other nonoperating expense | (112,814 | ) | (174,576 | ) | ||||
Interest expense | (1,064,222 | ) | (916,675 | ) | ||||
Gain on sale of equipment | 258,082 | 456,894 | ||||||
(860,931 | ) | (502,015 | ) | |||||
Income before income taxes | 2,961,481 | 3,419,057 | ||||||
Income tax expense | 968,571 | 910,034 | ||||||
Net income | 1,992,910 | 2,509,023 | ||||||
Dividends on preferred stock | 309,000 | 309,000 | ||||||
Net income available to common shareholders | $ | 1,683,910 | $ | 2,200,023 | ||||
Weighted average shares outstanding-basic | 14,064,871 | 14,234,571 | ||||||
Weighted average shares-diluted | 17,498,204 | 17,667,904 | ||||||
Earnings per share | ||||||||
available to common shareholders | $ | 0.120 | $ | 0.155 | ||||
Earnings per share-diluted | ||||||||
available to common shareholders | $ | 0.096 | $ | 0.125 |
Please refer to the table below that reconciles adjusted EBITDA and adjusted EBITDA per common share with net income available to common shareholders:
2019 | 2018 | |||||||
Net income available to | ||||||||
common shareholders | $ | 1,683,910 | $ | 2,200,023 | ||||
Add: Income tax expense | 968,571 | 910,034 | ||||||
Add: Dividends on preferred stock | 309,000 | 309,000 | ||||||
Add: Interest expense | 1,064,222 | 916,675 | ||||||
Less: Non-operating income | (203,291 | ) | (414,660 | ) | ||||
Add: Depreciation expense | 4,157,849 | 4,209,056 | ||||||
Adjusted EBITDA | $ | 7,980,261 | $ | 8,130,128 | ||||
Weighted average shares outstanding-basic | 14,064,871 | 14,234,571 | ||||||
Adjusted EBITDA per common share | $ | 0.57 | $ | 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.
Source: Energy Services of America Corporation
Contact: Douglas Reynolds, President
(304)-522-3868