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): May 12, 2021
Energy Services of America Corporation
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 001-32998 | 20-4606266 |
| (State or other Jurisdiction of Incorporation) |
(Commission File Number) | (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 May 12, 2021, Energy Services of America Corporation (the “Company”) issued a press release disclosing its results of operations and financial condition at and for the three and six months ended March 31, 2021.
A copy of the press release dated May 12, 2021 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 May 12, 2021
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: May 12, 2021 | By: | /s/Charles Crimmel |
| Charles Crimmel | ||
| Chief Financial Officer | ||
Exhibit 99.1
Energy Services of America Announces Financial Results for the Three and Six Months Ended March 31, 2021
Huntington, WV May 12, 2021- Energy Services of America Corporation (the “Company” or “Energy Services”) (OTC QB: ESOA) announced financial results for the three and six months ended March 31, 2021. Energy Services generated revenues of $25.6 million and $57.6 million for the three and six months ended March 31, 2021, respectively. Net loss available to common shareholders was $1.4 million and $2.1 million with an adjusted EBITDA of ($798,399) and ($467,317) for the three and six months ended March 31, 2021, respectively. Gross profit percentage increased from 0.4% to 7.3% and from 5.5% to 8.2% for the three and six months ended March 31, 2021 as compared to 2020, respectively.
Douglas Reynolds, President, commented on the announcement. “We experienced an increased demand for our services across all our lines of business for the first and second quarters of fiscal year 2021, which resulted in increased revenue and gross profit when compared to the same periods in 2020. Our December 31, 2020 acquisition, West Virginia Pipeline, contributed immediately with $1.2 million in revenue and $394,000 in gross profit for the three months ended March 31, 2021.” Reynolds continued, “Our efforts to increase distribution revenues are paying off and we are expecting to be busy in our gas & water distribution and electrical & mechanical services for the second half of fiscal year 2021. At the same time, we have invested in growing the business by acquiring a solar installation company and establishing a general contractor subsidiary. Our backlog at March 31, 2021 was $61.2 million as compared to $60.7 million at December 31, 2020.”
Below is a comparison of the Company’s unaudited operating results for the three and six months ended March 31, 2021 and 2020:
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
| March 31, | March 31, | March 31, | March 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue | $ | 25,605,412 | $ | 18,072,400 | $ | 57,615,208 | $ | 43,915,707 | ||||||||
| Cost of revenues | 23,731,889 | 18,001,931 | 52,898,626 | 41,488,496 | ||||||||||||
| Gross profit | 1,873,523 | 70,469 | 4,716,582 | 2,427,211 | ||||||||||||
| Selling and administrative expenses | 3,823,913 | 2,345,509 | 7,419,743 | 4,941,281 | ||||||||||||
| Loss from operations | (1,950,390 | ) | (2,275,040 | ) | (2,703,161 | ) | (2,514,070 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 4 | - | 151,769 | 53,249 | ||||||||||||
| Other nonoperating expense | (32,887 | ) | (42,741 | ) | (85,510 | ) | (76,679 | ) | ||||||||
| Interest expense | (142,993 | ) | (112,017 | ) | (219,510 | ) | (298,862 | ) | ||||||||
| Gain on sale of equipment | 479,269 | 223,775 | 492,311 | 519,766 | ||||||||||||
| 303,393 | 69,017 | 339,060 | 197,474 | |||||||||||||
| Loss before income taxes | (1,646,997 | ) | (2,206,023 | ) | (2,364,101 | ) | (2,316,596 | ) | ||||||||
| Income tax benefit | (335,526 | ) | (511,412 | ) | (404,968 | ) | (547,871 | ) | ||||||||
| Net loss | (1,311,471 | ) | (1,694,611 | ) | (1,959,133 | ) | (1,768,725 | ) | ||||||||
| Dividends on preferred stock | 77,250 | 77,250 | 154,500 | 154,500 | ||||||||||||
| Loss available to common shareholders | $ | (1,388,721 | ) | $ | (1,771,861 | ) | $ | (2,113,633 | ) | $ | (1,923,225 | ) | ||||
| Weighted average shares outstanding-basic | 13,621,406 | 13,783,546 | 13,621,406 | 13,877,243 | ||||||||||||
| Weighted average shares-diluted | 13,621,406 | 13,783,546 | 13,621,406 | 13,877,243 | ||||||||||||
| Loss per share | ||||||||||||||||
| available to common shareholders | $ | (0.102 | ) | $ | (0.129 | ) | $ | (0.155 | ) | $ | (0.139 | ) | ||||
| Loss per share-diluted | ||||||||||||||||
| available to common shareholders | $ | (0.102 | ) | $ | (0.129 | ) | $ | (0.155 | ) | $ | (0.139 | ) | ||||
Please refer to the table below that reconciles adjusted EBITDA with net loss available to common shareholders:
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
| March 31, 2021 | March 31, 2020 | March 31, 2021 | March 31, 2020 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Net loss income available to common shareholders | $ | (1,388,721 | ) | $ | (1,771,861 | ) | $ | (2,113,633 | ) | $ | (1,923,225 | ) | ||||
| Less: Income benefit | (335,526 | ) | (511,412 | ) | (404,968 | ) | (547,871 | ) | ||||||||
| Add: Dividends on preferred stock | 77,250 | 77,250 | 154,500 | 154,500 | ||||||||||||
| Add: Interest expense | 142,993 | 112,017 | 219,510 | 298,862 | ||||||||||||
| Less: Non-operating income | (446,386 | ) | (181,034 | ) | (558,570 | ) | (496,336 | ) | ||||||||
| Add: Depreciation expense | 1,151,991 | 1,122,509 | 2,235,844 | 2,217,791 | ||||||||||||
| Adjusted EBITDA | $ | (798,399 | ) | $ | (1,152,531 | ) | $ | (467,317 | ) | $ | (296,279 | ) | ||||
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