EX-99.1 2 tv513730_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

ENERGY SERVICES OF AMERICA FILES QUARTERLY REPORT

 

 

Huntington, WV   February 14, 2019- 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 Construction Services, Inc. (“Nitro”), announced the filing of the Company’s quarterly report on Form 10-Q for the quarter ended December 31, 2018. Energy Services earned revenues of $49.1 million for the three months ended December 31, 2018. Net income available to common shareholders was $554,000 for the three months ended December 31, 2018. The Company had adjusted EBITDA of $2.1 million ($0.15 per share) for the three months ended December 31, 2018. The backlog at December 31, 2018 was $59.3 million.

 

Below is a comparison of the Company’s operating results for the three months ended December 31, 2018 and 2017:

 

   Three Months Ended   Three Months Ended 
   December 31,   December 31, 
   2018   2017 
         
        
Revenue  $49,114,139   $32,547,603 
           
Cost of revenues   45,279,294    30,572,149 
           
Gross profit   3,834,845    1,975,454 
Selling and administrative expenses   2,756,391    2,009,091 
Income (loss) from operations   1,078,454    (33,637)
           
Other income (expense)          
Interest income    41,522    132,281 
Other nonoperating expense   (32,995)   (55,124)
Interest expense   (204,349)   (295,844)
Gain on sale of equipment   25,752    368,705 
    (170,070)   150,018 
Income before income taxes   908,384    116,381 
Income tax expense (benefit)   277,000    (32,119)
Net income   631,384    148,500 
Dividends on preferred stock   77,250    77,250 
Net income available to common shareholders  $554,134   $71,250 
           
Weighted average shares outstanding-basic   14,135,900    14,239,836 
Weighted average shares-diluted   17,569,233    17,673,169 
           

Earnings per share

available to common shareholders

  $0.039   $0.005 

Earnings per share-diluted

available to common shareholders

  $0.032   $0.004 

 

Total revenues increased by $16.6 million or 50.9% to $49.1 million for the three months ended December 31, 2018 from $32.5 million for the same period in 2017. Total gross profit increased by $1.8 million or 94.1% to $3.8 million for the three months ended December 31, 2018, from $2.0 million for the same period in 2017.

 

 

 

  

Douglas Reynolds, President, commented on the announcement. “We are pleased with the results for the first quarter of fiscal year 2019. We are seeing a significant amount of pipeline bid opportunities at C.J. Hughes and Nitro secured a $5.0 million project in February.” Reynolds continued, “We are also very happy to announce that all the restructuring debt, which was financed five years ago, was paid off in early February 2019. That will free up roughly $2.4 million in cash flow every year.”

 

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

 

   Three Months Ended   Three Months Ended 
   December 31, 2018   December 31, 2017 
   Unaudited   Unaudited 
         

Net income available to

common shareholders

  $554,134   $71,250 
           
Add: Income tax expense (benefit)   277,000    (32,119)
           
Add: Dividends on preferred stock   77,250    77,250 
           
Add:  Interest expense   204,349    295,844 
           
Less: Non-operating expense (income)   (34,279)   (445,862)
           
Add: Depreciation expense   1,022,367    1,049,688 
           
Adjusted EBITDA  $2,100,821   $1,016,051 
Weighted average shares outstanding   14,135,900    14,239,836 
Adjusted EBITDA per common share  $0.15   $0.07 
           

 

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