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): December 15, 2016
Energy Services of America Corporation
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 001-32998 | 20-4606266 |
| (State or Other Jurisdiction | (Commission | (I.R.S. Employer |
| of Incorporation) | File Number) | 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)) |
Item 2.02 Results of Operations
On December 15, 2016, Energy Services of America, Inc. (the “Company”) issued a press release disclosing its results of operations and financial condition at and for the twelve months ended September 30, 2016.
A copy of the press release is included as Exhibit 99.1 to this report and are 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 December 15, 2016
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: December 15, 2016 | By: | s/Charles Crimmel |
| Charles Crimmel | ||
| Chief Financial Officer | ||
Exhibit 99.1
ENERGY SERVICES OF AMERICA FILES ANNUAL REPORT
Huntington, WV December 15, 2016- Energy Services of America (the “Company”) (OTC QB: ESOA), parent company of C.J. Hughes Construction Company and Nitro Electric Company, announced today the filing of the Company’s Annual Report on Form 10-K for the year ended September 30, 2016. Net income available to common shareholders was $2.9 million for the fiscal year ended September 30, 2016, which was a $1.1 million increase from $1.8 million in fiscal year 2015. Revenues were $155.5 million for the fiscal year ended September 30, 2016, which was a $38.7 million increase from $116.8 million in fiscal year 2015. The Company had an adjusted EBITDA of $9.4 million, or $0.66 per share, and earnings per share of $0.21 on 14,239,836 common shares outstanding for fiscal year 2016. The backlog at September 30, 2016 was $78.5 million.
Douglas Reynolds, President, commented on the announcement. “We are extremely pleased with our earnings for fiscal year 2016. We significantly increased our net income available to common shareholders and revenue compared to last fiscal year. Also, the $78.5 million backlog entering fiscal year 2017 is a $7.2 million increase over the $71.3 million backlog entering fiscal year 2016. We were awarded several major projects in fiscal year 2016 that will be completed in the first quarter of fiscal year 2017. We will need to replace those projects in fiscal year 2017, but we feel the opportunities we are already seeing and our strong relationships with our customers will allow us to do so.”
Below is a comparison of the Company’s audited operating results for fiscal year 2016 compared to fiscal year 2015:
| 2016 | 2015 | |||||||
| (Audited) | (Audited) | |||||||
| Revenue | $ | 155,481,145 | $ | 116,800,046 | ||||
| Cost of revenues | 141,283,142 | 105,935,841 | ||||||
| Gross profit | 14,198,003 | 10,864,205 | ||||||
| Selling and administrative expenses | 7,293,323 | 6,584,334 | ||||||
| Income from operations | 6,904,680 | 4,279,871 | ||||||
| Other income (expense) | ||||||||
| Interest income | - | 1,278 | ||||||
| Other nonoperating income (expense) | (158,246 | ) | 12,421 | |||||
| Interest expense | (875,254 | ) | (761,079 | ) | ||||
| Gain on sale of equipment | 268,448 | 179,031 | ||||||
| (765,052 | ) | (568,349 | ) | |||||
| Income from continuing operations before income taxes | 6,139,628 | 3,711,522 | ||||||
| Income tax expense | 2,898,205 | 1,597,332 | ||||||
| Income from continuing operations | 3,241,423 | 2,114,190 | ||||||
| Dividends on preferred stock | 309,000 | 309,000 | ||||||
| Income from continuing operations available to common shareholders | 2,932,423 | 1,805,190 | ||||||
| Income from discontinued operations net of tax benefit of $0 in 2016 and tax benefit of $26,340 in 2015 | - | 26,340 | ||||||
| Net income available to common shareholders | $ | 2,932,423 | $ | 1,831,530 | ||||
| Weighted average shares outstanding-basic | 14,239,836 | 14,239,836 | ||||||
| Weighted average shares-diluted | 17,673,169 | 17,673,169 | ||||||
| Earnings per share available to common shareholders | $ | 0.206 | $ | 0.129 | ||||
| Earnings per share-diluted available to common shareholders | $ | 0.166 | $ | 0.104 | ||||
Please refer to the table below that reconciles EBITDA and EBITDA per share:
| 2016 | 2015 | |||||||
| (Audited) | (Audited) | |||||||
| Net income available to common shareholders | $ | 2,932,423 | $ | 1,831,530 | ||||
| Add: Income tax expense | 2,898,205 | 1,570,992 | ||||||
| Add: Dividends on preferred stock | 309,000 | 309,000 | ||||||
| Add: Interest expense | 875,254 | 761,079 | ||||||
| Less: Non-operating (income) expense | (110,202 | ) | (192,730 | ) | ||||
| Add: Depreciation expense | 2,503,471 | 3,291,386 | ||||||
| Adjusted EBITDA | $ | 9,408,151 | $ | 7,571,257 | ||||
| Common shares outstanding | 14,239,836 | 14,239,836 | ||||||
| Adjusted EBITDA per common share | $ | 0.66 | $ | 0.53 | ||||
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