EX-99.1 2 tm1926765d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

ENERGY SERVICES OF AMERICA FILES ANNUAL REPORT

 

Huntington, WV   December 20, 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 the filing of the Company’s Annual Report on Form 10-K. 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