Energy Services of America Announces Financial Results for the Quarter Ended December 31, 2021

Rhea-AI Summary

Energy Services of America (OTCQB: ESOA) reported $42.7 million in revenue and $1.2 million in net income for the quarter ending December 31, 2021. This marks the best fiscal first quarter in over five years. The company achieved an adjusted EBITDA of $3.0 million and earnings per share of $0.07. As of the end of December 2021, the backlog stood at $101.6 million. President Douglas Reynolds emphasized the goal of increasing shareholder value and announced plans to list on the Nasdaq Capital Market for enhanced visibility.

Positive

• Revenue of $42.7 million, up from $32.0 million year-over-year.
• Net income of $1.2 million, a significant turnaround from a net loss of $0.7 million in the previous year.
• Adjusted EBITDA of $3.0 million, compared to $0.3 million in the same period of the previous year.
• Backlog increased to $101.6 million, positioning the company for strong performance in fiscal 2022.

Negative

• None.

HUNTINGTON, W.Va., Feb. 11, 2022 /PRNewswire/ --  Energy Services of America Corporation (the "Company" or "Energy Services") (OTCQB: ESOA), generated revenues of $42.7 million, adjusted EBITDA of $3.0 million, net income available to common shareholders of $1.2 million and earnings per share of $0.07 for the three months ended December 31, 2021.  The Company had backlog of $101.6 million at December 31, 2021. 

Douglas Reynolds, President, commented on the announcement. We are very pleased with the Company's performance for the three months ended December 31, 2021, which represents the company's best fiscal first quarter in over 5-years." Reynolds continued, "Our goal remains to create shareholder value and we recently applied to list the Company's stock on the Nasdaq Capital Market with the expectation of increasing the visibility and appeal of our shares. From a business perspective, we are executing well and have an improved backlog that puts us in a strong position for fiscal 2022. I am excited about the company and our opportunities as well as our ability to create further value." 

Below is a comparison of the Company's operating results for the three months ended December 31, 2021, compared to fiscal year 2020: 

 

			Three Months Ended		Three Months Ended
			December 31,		December 31,
			2021		2020
			(Unaudited)		(Unaudited)
Revenue			$                                 42,659,125		$                                  32,009,796
Cost of revenues			37,350,752		29,166,737
	Gross profit		5,308,373		2,843,059
Selling and administrative expenses			3,632,595		3,595,830
	Income (loss) from operations		1,675,778		(752,771)
Other income (expense)
	Interest income		576		151,765
	Other nonoperating expense		(153,428)		(52,623)
	Interest expense		(197,559)		(76,517)
	Gain on sale of equipment		339,896		13,042
			(10,515)		35,667
	Income (loss) before income taxes		1,665,263		(717,104)
	Income tax expense (benefit)		494,283		(69,442)
	Net income (loss)		1,170,980		(647,662)
	Dividends on preferred stock		-		77,250
Net income (loss) available to common shareholders			$                                   1,170,980		$                                      (724,912)
	Weighted average shares outstanding-basic		16,247,898		13,621,406
	Weighted average shares-diluted		16,247,898		13,621,406
	Earnings (loss) per share
		available to common shareholders	$                                            0.072		$                                           (0.053)
	Earnings (loss) per share-diluted
		available to common shareholders	$                                            0.072		$                                           (0.053)

 

 

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

 

	Three Months Ended		Three Months Ended
	December 31, 2021		December 31, 2020
	Unaudited		Unaudited
Net income (loss) available to
common shareholders	$                              1,170,980		$                                           (724,912)
Add: Income benefit expense (benefit)	494,283		(69,442)
Add: Dividends on preferred stock	-		77,250
Add:  Interest expense	197,559		76,517
Less: Non-operating income	(187,044)		(112,184)
Add: Depreciation expense	1,304,496		1,083,853
Adjusted EBITDA	$                              2,980,274		$                                              331,082

 

 

About Energy Services

Energy Services of America Corporation (OTCQB: ESOA), headquartered in Huntington, WV, is a contractor and service company that operates primarily in the mid-Atlantic and Central regions of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. Energy Services employs 700+ employees on a regular basis. The Company's core values are safety, quality, and production.  

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, the integration of acquired business 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

FAQ

What were Energy Services of America's revenue figures for Q1 2022?

Energy Services of America reported revenues of $42.7 million for the quarter ending December 31, 2021.

What was the net income for Energy Services of America in Q1 2022?

The net income available to common shareholders for the quarter was $1.2 million.

How did Energy Services of America's earnings per share perform in Q1 2022?

The earnings per share for the quarter were $0.07.

What is the backlog for Energy Services of America as of December 31, 2021?

As of December 31, 2021, Energy Services of America had a backlog of $101.6 million.

What are Energy Services of America's future plans regarding stock listing?

Energy Services of America plans to list its stock on the Nasdaq Capital Market to increase visibility and appeal.