0001144204-18-007852.txt : 20180213 0001144204-18-007852.hdr.sgml : 20180213 20180213145828 ACCESSION NUMBER: 0001144204-18-007852 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180213 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180213 DATE AS OF CHANGE: 20180213 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Energy Services of America CORP CENTRAL INDEX KEY: 0001357971 STANDARD INDUSTRIAL CLASSIFICATION: WATER, SEWER, PIPELINE, COMM AND POWER LINE CONSTRUCTION [1623] IRS NUMBER: 204606266 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32998 FILM NUMBER: 18602568 BUSINESS ADDRESS: STREET 1: 75 WEST 3RD AVE. CITY: HUNTINGTON STATE: WV ZIP: 25701 BUSINESS PHONE: (304) 522-3868 MAIL ADDRESS: STREET 1: 75 WEST 3RD AVE. CITY: HUNTINGTON STATE: WV ZIP: 25701 FORMER COMPANY: FORMER CONFORMED NAME: Energy Services Acquisition Corp. DATE OF NAME CHANGE: 20060330 8-K 1 tv485883_8k.htm FORM 8-K

 

 

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): February 13, 2018

 

Energy Services of America Corporation

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

(State or Other Jurisdiction

of Incorporation)

001-32998

(Commission

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))

 

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 February 13, 2018, Energy Services of America, Inc. (the “Company”) issued a press release disclosing its results of operations and financial condition at and for the three months ended December 31, 2017.

 

A copy of the press release dated February 13, 2018 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 99.1Press Release dated February 13, 2018

 

 

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:  February 13, 2018 By:   /s/ Charles Crimmel
                Charles Crimmel
                Chief Financial Officer

 

 

 

 

 

EX-99.1 2 tv485883_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

ENERGY SERVICES OF AMERICA FILES QUARTERLY REPORT

 

 

Huntington, WV   February 13, 2018-  Energy Services of America (the “Company” or “Energy Services”) (OTC QB: ESOA), parent company of C.J. Hughes Construction Company (“C.J. Hughes”) and Nitro Electric Company (“Nitro Electric”), announced the filing of the Company’s quarterly report on Form 10-Q for the quarter ended December 31, 2017. Energy Services earned revenues of $32.5 million for the three months ended December 31, 2017. Gross profit and net income available to common shareholders were $2.0 million and $71,000, respectively, for the three months ended December 31, 2017. The Company had adjusted EBITDA of $1.0 million ($0.07 per share) for the three months ended December 31, 2017. The backlog at December 31, 2017 was $54.2 million.

 

Below is a comparison of the Company’s operating results for the three months ended December 31, 2017 and 2016:

 

   Three Months Ended   Three Months Ended 
   December 31, 2017   December 31, 2016 
   Unaudited   Unaudited 
         
Revenue  $32,547,603   $37,496,872 
           
Cost of revenues   30,572,149    32,812,085 
           
Gross profit   1,975,454    4,684,787 
           
Selling and administrative expenses   2,009,091    2,195,610 
Income (loss) from operations   (33,637)   2,489,177 
           
Other income (expense)          
Interest income   132,281    - 
Other nonoperating income expense   (55,124)   (71,429)
Interest expense   (295,844)   (230,969)
Gain on sale of equipment   368,705    26,990 
    150,018    (275,408)
Income from continuing operations          
before income taxes   116,381    2,213,769 
           
Income tax expense (benefit)   (32,119)   975,112 
Income from continuing operations   148,500    1,238,657 
           
Dividends on preferred stock   77,250    77,250 
Income from continuing operations          
available to common shareholders   71,250    1,161,407 
           
Income from discontinued operations          
net of tax benefit   -    - 
Net income available to common shareholders  $71,250   $1,161,407 

 

 

Revenues for the three months ended December 31, 2017 decreased $5.0 million compared to the same period in 2016. The decrease was primarily due to an $8.8 million revenue decrease in petroleum and gas work, partially offset by a $3.7 million revenue increase in electrical and mechanical services, and a $100,000 revenue increase in water and sewer and other ancillary projects. The gross profit percentage for the three months ended December 31, 2017 was 6.1%, as compared to 12.5% for the same period in 2016. The revenue and gross profit percentage decreases for the three months ended December 31, 2017 as compared to the same period in 2016 was primarily due to finishing two major projects with losses in fiscal year 2017.

 

 

 

 

Douglas Reynolds, President, commented on the announcement. “In the first quarter of fiscal year 2018, we were primarily finishing projects that started in the prior fiscal year. Due to an overall labor shortage in the pipeline construction industry last year, we suffered production inefficiencies and schedule overruns on two major projects. This prevented us from securing additional work in the quarters ended September 30, 2017 and December 31, 2017. It also had a negative effect on our gross margin percentage for the quarter ended December 31, 2017.” Reynolds continued, “To help expand our customer base and improve our performance on pipeline work, we have made a new hire to help bolster our sales and marketing efforts in the Marcellus and Utica Shale regions as well as added an experienced industry professional to assist our construction management team. We are working very hard to improve operating results in fiscal year 2018.”

 

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

 

   Three Months Ended   Three Months Ended 
   December 31, 2017   December 31, 2016 
   Unaudited   Unaudited 
         
Net income available to          
  common shareholders  $71,250   $1,161,407 
           
Add: Income tax expense (benefit)   (32,119)   975,112 
           
Add: Dividends on preferred stock   77,250    77,250 
           
Add:  Interest expense   295,844    230,969 
           
Less: Non-operating (income) expense   (445,862)   44,439 
           
Add: Depreciation expense   1,049,688    678,331 
Adjusted EBITDA  $1,016,051   $3,167,508 
Common shares outstanding   14,239,836    14,239,836 
Adjusted EBITDA per common share  $0.07   $0.22 

 

 

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

Contact: Douglas Reynolds, President

304-522-3868