EX-99.1 2 tv527658_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

ENERGY SERVICES OF AMERICA FILES QUARTERLY REPORT

 

Huntington, WV   August 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 June 30, 2019. Energy Services earned revenues of $40.2 million and $136.3 million for the three and nine months ended June 30, 2019, respectively. Net income (loss) available to common shareholders was $409,000 and $(239,000) for the three and nine months ended June 30, 2019, respectively. The Company had adjusted EBITDA of $2.3 million ($0.16 per share) and $4.0 million ($0.28 per share) for the three and nine months ended June 30, 2019, respectively. The backlog at June 30, 2019 was $49.8 million.

 

Below is a comparison of the Company’s operating results for the three and nine months ended June 30, 2019 and 2018:

 

   Three Months Ended   Three Months Ended   Nine Months Ended   Nine Months Ended 
   June 30,   June 30,   June 30,   June 30, 
   2019   2018   2019   2018 
                 
Revenue  $40,187,978   $29,549,659   $136,257,561   $85,190,295 
                     
Cost of revenues   36,936,926    26,166,268    128,580,270    78,775,352 
                     
Gross profit   3,251,052    3,383,391    7,677,291    6,414,943 
                     
Selling and administrative expenses   2,021,359    1,773,304    6,790,032    5,738,751 
Income from operations   1,229,693    1,610,087    887,259    676,192 
                     
Other income (expense)                    
Interest income   -    -    58,023    132,342 
Other nonoperating expense   (25,736)   (55,016)   (79,312)   (157,163)
Interest expense   (331,067)   (190,781)   (744,541)   (730,333)
Gain on sale of equipment   68,672    7,572    206,241    395,947 
    (288,131)   (238,225)   (559,589)   (359,207)
                     
Income before income taxes   941,562    1,371,862    327,670    316,985 
Income tax benefit   455,805    275,595    334,987    19,793 
Net income (loss)   485,757    1,096,267    (7,317)   297,192 
                     
Dividends on preferred stock   77,250    77,250    231,750    231,750 
                     
Net income (loss) available to common shareholders  $408,507   $1,019,017   $(239,067)  $65,442 
                     
Weighted average shares outstanding-basic   13,985,579    14,239,836    14,080,299    14,239,836 
                     
Weighted average shares-diluted   17,418,912    17,673,169    14,080,299    17,673,169 
                     

Earnings (loss) per share

available to common shareholders

  $0.029   $0.072   $(0.017)  $0.005 
                     

Earnings (loss) per share-diluted

available to common shareholders

  $0.023   $0.058   $(0.017)  $0.004 

 

 

Revenues increased by $10.7 million or 36.0% to $40.2 million for the three months ended June 30, 2019 from $29.5 million for the same period in 2018. The increase was primarily attributable to a $7.0 million revenue increase in petroleum and gas work, a $2.5 million revenue increase in electrical and mechanical services and a $1.1 million revenue increase in water and sewer projects and other ancillary services.

 

 

 

 

Douglas Reynolds, President, commented on the announcement. “Fiscal year 2019 has been greatly impacted by a twenty-mile pipeline project in northern West Virginia. We expect the project to finish cash positive; however, environmental delays and weather-related production inefficiencies had a significant impact on profitability. Final restoration was complete in early August 2019 and only a small amount of fence replacement remains.” Reynolds continued, “Our remaining projects are largely performing as expected. While new pipeline installation work has slowed, we have been successful in obtaining a significant amount of maintenance work on existing pipelines. We are still bidding work for fiscal year 2019 and are looking for several new projects to finish this construction season and supplement our existing backlog.”

 

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

 

   Three Months Ended   Three Months Ended   Nine Months Ended   Nine Months Ended 
   June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018 
   Unaudited   Unaudited   Unaudited   Unaudited 
                 
Net income (loss) available to common shareholders  $408,507   $1,019,017   $(239,067)  $65,442 
                     
Add: Income tax benefit   455,805    275,595    334,987    19,793 
                     
Add: Dividends on preferred stock   77,250    77,250    231,750    231,750 
                     
Add:  Interest expense   331,067    190,781    744,541    730,333 
                     
Less: Non-operating expense (income)   (42,936)   47,444    (184,952)   (371,126)
                     
Add: Depreciation expense   1,048,581    1,073,387    3,111,170    3,187,733 
                     
Adjusted EBITDA  $2,278,274   $2,683,474   $3,998,429   $3,863,925 
Common shares outstanding   13,985,579    14,239,836    14,080,299    14,239,836 
Adjusted EBITDA per common share  $0.16   $0.19   $0.28   $0.27 
                     

 

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