Energy Services of America Announces Financial Results

Rhea-AI Summary

Energy Services of America Corporation (OTC QB: ESOA) reported revenues of $30.8 million for Q3 2020 and $74.7 million for the nine-month period. The company experienced a net loss available to common shareholders of ($95,000) for Q3 and ($2.0 million) YTD. Adjusted EBITDA was $1.4 million ($0.10/share) for Q3 and $1.1 million ($0.08/share) YTD. The backlog as of June 30, 2020, stood at $69.8 million. The ongoing COVID-19 pandemic posed challenges, but positive signs in project bids were noted.

Positive

• Backlog at June 30, 2020, is $69.8 million.
• Adjusted EBITDA improved to $1.4 million ($0.10 per share) for Q3.

Negative

• Net loss available to common shareholders totaled $2.0 million for YTD 2020.
• Revenue declined from $136.3 million in 2019 to $74.7 million in 2020.

HUNTINGTON, W.Va., Aug. 14, 2020 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTC QB: ESOA), parent company of C.J. Hughes Construction Company and Nitro Construction Services, announced financial results for the three and nine months ended June 30, 2020.  Energy Services earned revenues of $30.8 million and $74.7 million for the three and nine months ended June 30, 2020, respectively.  Net loss available to common shareholders was ($95,000) and ($2.0) million for the three and nine months ended June 30, 2020, respectively.  The Company had adjusted EBITDA of $1.4 million ($0.10 per share) and $1.1 million ($0.08 per share) for the three and nine months ended June 30, 2020, respectively.  The backlog at June 30, 2020 was $69.8 million. 

Douglas Reynolds, President, commented on the announcement.  "The COVID-19 pandemic had a significant effect on the three months ended June 30, 2020.  However, many of our customers have continued with projects and we are receiving new bid opportunities.  Also, our employee count at June 30, 2020 was higher compared to March 31, 2020." Reynolds continued, "While we are seeing positive signs, we could see a significant impact in the fourth quarter of fiscal year if there is a worsening of the pandemic."   

Below is a comparison of the Company's unaudited operating results for the three and nine months ended June 30, 2020 and 2019: 

			Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
			June 30,		June 30,		June 30,		June 30,
			2020		2019		2020		2019
Revenue			$        30,762,725		$     40,187,978		$       74,678,432		$     136,257,561
Cost of revenues			27,936,548		36,936,926		69,425,044		128,580,270
	Gross profit		2,826,177		3,251,052		5,253,388		7,677,291
Selling and administrative expenses			2,532,141		2,021,359		7,473,422		6,790,032
	Income (loss) from operations		294,036		1,229,693		(2,220,034)		887,259
Other income (expense)
	Interest income		83		-		53,332		58,023
	Other nonoperating expense		(53,793)		(25,736)		(130,472)		(79,312)
	Interest expense		(101,335)		(331,067)		(400,197)		(744,541)
	Gain on sale of equipment		43,296		68,672		563,062		206,241
			(111,749)		(288,131)		85,725		(559,589)
	Income (loss) before income taxes		182,287		941,562		(2,134,309)		327,670
	Income tax expense (benefit)		200,242		455,805		(347,629)		334,987
	Net (loss) income		(17,955)		485,757		(1,786,680)		(7,317)
	Dividends on preferred stock		77,250		77,250		231,750		231,750
Net (loss) income available to common shareholders			$             (95,205)		$          408,507		$        (2,018,430)		$          (239,067)
	Weighted average shares outstanding-basic		13,627,293		13,985,579		13,844,340		14,080,299
	Weighted average shares-diluted		13,627,293		17,418,912		13,844,340		14,080,299
	(Loss) earnings per share
		available to common shareholders	$               (0.007)		$             0.029		$              (0.146)		$              (0.017)
	(Loss) earnings per share-diluted
		available to common shareholders	$               (0.007)		$             0.023		$              (0.146)		$              (0.017)

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

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
	Unaudited		Unaudited		Unaudited		Unaudited
Net (loss) income available to
common shareholders	$                 (95,205)		$                 408,507		$            (2,018,430)		$               (239,067)
Add: Income tax benefit (expense)	200,242		455,805		(347,629)		334,987
Add: Dividends on preferred stock	77,250		77,250		231,750		231,750
Add:  Interest expense	101,335		331,067		400,197		744,541
Less: Non-operating expense (income)	10,414		(42,936)		(485,922)		(184,952)
Add: Depreciation expense	1,097,750		1,073,387		3,315,541		3,187,733
Adjusted EBITDA	$             1,391,786		$             2,303,080		$             1,095,507		$             4,074,992
Common shares outstanding	13,627,293		13,985,579		13,844,340		14,080,299
Adjusted EBITDA per common share	$                        0.10		$                        0.16		$                        0.08		$                        0.29

Certain statements contained in the release including, without limitation, 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, the effect of the COVID-19 pandemic 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.

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SOURCE Energy Services of America Corporation

FAQ

What were Energy Services of America Corporation's revenues for Q3 2020?

Energy Services reported revenues of $30.8 million for Q3 2020.

What is the net loss available to common shareholders for nine months ended June 30, 2020?

The net loss available to common shareholders was $2.0 million for the nine months ended June 30, 2020.

What is the adjusted EBITDA for Energy Services of America for Q3 2020?

The adjusted EBITDA for Q3 2020 was $1.4 million ($0.10 per share).

How did the COVID-19 pandemic affect Energy Services of America Corporation?

The COVID-19 pandemic significantly impacted operations in Q3 2020, but the company noted continued project engagements and new bidding opportunities.