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 24, 2017

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))

Item 2.02 Results of Operations

On February 24, 2017, Energy Services of America, Inc. (the “Company”) issued a shareholder letter disclosing its results of operations and financial condition at and for the three months ended December 31, 2016.

A copy of the letter dated February 23, 2017 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 Shareholder Letter dated February 23, 2017

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 27, 2017	By:   s/Charles Crimmel
	Charles Crimmel
	Chief Financial Officer

EX-99.1

Exhibit 99.1

 

February 23, 2017

Dear Fellow Shareholder:

I am pleased to announce that our first quarter represents the best start to any fiscal year in the history of our company. For the three months ended December 31, 2016, we earned revenue of $37.5 million compared to $34.4 million for the same period in 2015. We earned $1.2 million of net income available to common shareholders in the three months ended December 31, 2016 compared to $622,000 in the three months ended December 31, 2015. Our adjusted EBITDA was $3.2 million, or $0.22 per share, in the three months ended December 31, 2016 compared to $2.1 million, or $0.14 per share, for the same period in 2015. Both our CJ Hughes Construction and Nitro Electric Company subsidiaries have started the year ahead of plan and we are proud of the strong start to fiscal year 2017.

Last February I stated how bright fiscal year 2016 looked. Even though energy prices were very challenged, we felt confident because we had a $91.1 million backlog at December 31, 2015. This included $29.0 million in backlog from just one project. Today the industry looks much healthier and there is great enthusiasm for pipeline construction among the public. Our December 31, 2016 backlog of $81.2 million is quite healthy and contains no projects over $11.0 million and is better than the $78.5 million backlog we had booked as of September 30, 2016. Over the last four years, we have had a different largest customer each year and there are many opportunities remaining for fiscal year 2017.

Finally, on behalf of the board of directors I would like to thank you for your continued support of our company. Your company received a positive review in a book by Everett Jolly, “Nano Stocks, Big Money: Nano-Cap Picks for 2017”, available on Amazon.

Sincerely,

Douglas V. Reynolds, President

Energy Services of America

Please see the table below for a reconciliation of adjusted EBITDA for the three months ended December 31, 2016 and 2015:

	Three Months Ended		Three Months Ended
	December 31, 2016		December 31, 2015
	Unaudited		Unaudited
Net income available to
common shareholders	$	1,161,407	$	621,606
Add: Income tax expense		975,112		542,831
Add: Dividends on preferred stock		77,250		77,250
Add:  Interest expense		230,969		233,418
Less: Non-operating (income) expense		44,439		(20,090	)
Add: Depreciation expense		678,331		595,677
Adjusted EBITDA	$	3,167,508	$	2,050,692
Common shares outstanding		14,239,836		14,239,836
Adjusted EBITDA per common share	$	0.22	$	0.14