Energy Services of America Announces Financial Results for the Fiscal Year ended September 30, 2021

Rhea-AI Summary

Energy Services of America Corporation (OTCQB: ESOA) reported fiscal year 2021 revenues of $122.5 million, an adjusted EBITDA of $3.8 million, and a net income of $8.8 million, translating to earnings per share of $0.52. The company maintained a backlog of $72.2 million. Following the fiscal year, a $5.8 million verdict was awarded in a lawsuit against a former customer, pending final judgment.

President Douglas Reynolds noted expansion in gas and water distribution via acquisition and entering new markets including solar installation.

Positive

• Revenue increased from $119.2 million in FY 2020 to $122.5 million in FY 2021.
• Net income available to common shareholders rose from $2.1 million in FY 2020 to $8.8 million in FY 2021.
• Adjusted EBITDA improved from $8.1 million in FY 2020 to $3.8 million in FY 2021.
• Backlog stood at $72.2 million, indicating strong future revenue potential.

Negative

• Income from operations decreased to (892,622) from $3.7 million in FY 2020.
• Gross profit declined from $13.5 million in FY 2020 to $12.9 million in FY 2021.
• Selling and administrative expenses rose significantly from $9.8 million in FY 2020 to $13.8 million in FY 2021.
• Adjusted EBITDA considerably dropped from $8.1 million in FY 2020 to $3.8 million in FY 2021.

HUNTINGTON, W.Va., Dec. 9, 2021 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTCQB: ESOA), generated revenues of $122.5 million, adjusted EBITDA of $3.8 million, net income available to common shareholders of $8.8 million and fully diluted earnings per share of $0.52 for the fiscal year ended September 30, 2021.  The Company had backlog of $72.2 million at September 30, 2021. 

Subsequent to the end of the fiscal year, the Company was awarded a $5.8 million verdict in a previously disclosed lawsuit against a former customer.  The Company anticipates that a final judgement order will be issued during the first calendar quarter of 2022, which can be appealed up to thirty days after the judgement is entered. To date, the Company has not recognized the award in its financial statements.  

Douglas Reynolds, President, commented on the announcement. "I am pleased with the progress we made during fiscal 2021 as we continue to build the foundation for future growth. During the year we expanded our gas and water distribution business geographically via acquisition and moved into both general contracting and solar installation in our core geographic markets. At the same time our balance sheet was strengthened with the forgiveness of the PPP loans, and we were able to simplify our capital structure by converting our preferred stock." Reynolds continued, "Looking ahead we will continue to invest in the business and add talented people and business lines to grow the company and we anticipate that fiscal year 2022 will result in increased growth and profitability."

Below is a comparison of the Company's operating results for fiscal year 2021 compared to fiscal year 2020: 

 

			Year Ended		Year Ended
			September 30, 2021		September 30, 2020
Revenue			$          122,465,826		$          119,194,440
Cost of revenue			109,544,804		105,693,209
	Gross profit		12,921,022		13,501,231
Selling and administrative expenses			13,813,644		9,831,578
	Income from operations		(892,622)		3,669,653
Other income (expense)
	Interest income		286,645		53,332
	Paycheck Protection Program loan forgiveness		9,839,100		-
	Other nonoperating expense		(311,830)		(239,862)
	Interest expense		(534,820)		(486,246)
	Gain on sale of equipment		681,653		579,326
			9,960,748		(93,450)
	Income before income taxes		9,068,126		3,576,203
	Income tax (benefit) expense		(29,129)		1,143,186
	Net income		9,097,255		2,433,017
	Dividends on preferred stock		284,238		309,000
	Net income available to common shareholders		$               8,813,017		$               2,124,017
	Weighted average shares outstanding-basic		13,621,406		13,804,835
	Weighted average shares-diluted		16,988,424		17,238,168
	Earnings per share
		available to common shareholders	$                      0.647		$                      0.154
	Earnings per share-diluted
		available to common shareholders	$                      0.519		$                      0.123

 

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

 

		Year Ended		Year Ended
		September 30, 2021		September 30, 2020
Net income available to
common shareholders		$             8,813,017		$             2,124,017
Add: Income tax (benefit) expense		(29,129)		1,143,186
Add: Dividends on preferred stock		284,238		309,000
Add:  Interest expense		534,820		486,246
Less: Non-operating income		(10,495,568)		(392,796)
Add: Depreciation expense		4,661,789		4,395,362
Adjusted EBITDA		$             3,769,167		$             8,065,015

 

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.

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SOURCE Energy Services of America

FAQ

What were Energy Services of America Corporation's revenues for FY 2021?

Energy Services of America Corporation reported revenues of $122.5 million for the fiscal year 2021.

What is the adjusted EBITDA for ESOA for FY 2021?

Energy Services of America Corporation had an adjusted EBITDA of $3.8 million for FY 2021.

How much net income did ESOA generate in FY 2021?

In FY 2021, Energy Services of America Corporation generated a net income of $8.8 million available to common shareholders.

What was the earnings per share for Energy Services of America in FY 2021?

The earnings per share for Energy Services of America Corporation in FY 2021 was $0.52.

What does the backlog indicate for ESOA's future revenues?

Energy Services of America Corporation reported a backlog of $72.2 million, indicating strong future revenue potential.