Energy Services of America Announces Financial Results for the Three and Nine Months Ended June 30, 2022

Rhea-AI Summary

Energy Services of America Corporation (Nasdaq: ESOA) reported revenues of $51.2 million and $129.2 million for the three and nine months ended June 30, 2022, respectively. Net income stood at $1.6 million for the quarter and $2.2 million for the nine-month period, with adjusted EBITDA of $4.0 million and $7.7 million. The company aims for a strong fourth quarter, fueled by recent acquisitions and a new share repurchase program. The backlog totals $135.0 million, indicating future revenue potential.

Positive

• Revenue increased significantly, reaching $51.2 million for Q3 2022, compared to $25.3 million in Q3 2021.
• Adjusted EBITDA surged to $4.0 million for Q3 2022, up from $731,626 in Q3 2021.
• Backlog of $135.0 million as of June 30, 2022, signaling potential for future growth.
• Successful acquisition of Tri-State Paving & Sealcoating, Inc. and Ryan Construction Services, Inc. to enhance service offerings.
• Earnings per share increased to $0.10 for Q3 2022, compared to $0.68 for Q3 2021.

Negative

• Net income decreased sharply from $9.3 million in Q3 2021 to $1.6 million in Q3 2022.
• Gross profit decreased in both three and nine-month comparisons, indicating potential margin pressures.

HUNTINGTON, W.Va., Aug. 15, 2022 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), generated revenues of $51.2 million and $129.2 million, respectively, for the three and nine months ended June 30, 2022. Net income was $1.6 million and $2.2 million, respectively, and adjusted EBITDA was $4.0 million and $7.7 million, respectively, for the three and nine months ended June 30, 2022.  The Company had earnings per share of $0.10 and $0.14, respectively, for the three and nine months ended June 30, 2022, and backlog of $135.0 million (unaudited) at June 30, 2022. 

Douglas Reynolds, President, commented on the announcement. "Energy Services had a good third quarter and we are looking for a strong fourth quarter to finish out fiscal year 2022." Reynolds continued, "Our acquisition of Tri-State Paving & Sealcoating, Inc. closed during the third quarter and is off to a great start.  Our most recent acquisition, Ryan Construction Services, Inc., closed on August 11, 2022, and will broaden our geographic reach and diversify our construction services provided. We have also announced a share repurchase program that can begin after the June 30, 2022, earnings release.  We believe all these things will be instrumental to the growth of both Energy Services and shareholder value." 

Below is a comparison of the Company's operating results for the three and nine months ended June 30, 2022, as compared to the same periods in fiscal year 2021: 

			Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
			June 30,		June 30,		June 30,		June 30,
			2022		2021		2022		2021
			Unaudited		Unaudited		Unaudited		Unaudited
Revenue			$                51,171,939		$           25,285,951		$     129,223,642		$       82,901,159
Cost of revenues			44,754,346		22,580,340		114,632,057		75,478,966
	Gross profit		6,417,593		2,705,611		14,591,585		7,422,193
Selling and administrative expenses			3,821,043		3,207,864		10,870,677		10,627,607
	Income from operations		2,596,550		(502,253)		3,720,908		(3,205,414)
Other income (expense)
	Interest income		-		108		576		151,877
	Paycheck Protection Program loan forgiveness		-		9,799,100		-		9,799,100
	Other nonoperating expense		(174,957)		(35,833)		(438,195)		(121,343)
	Interest expense		(206,394)		(136,995)		(548,885)		(356,505)
	Gain on sale of equipment		58,311		135,269		418,103		627,580
			(323,040)		9,761,649		(568,401)		10,100,709
	Income before income taxes		2,273,510		9,259,396		3,152,507		6,895,295
	Income tax expense (benefit)		651,396		(53,844)		945,216		(458,812)
	Net  income		1,622,114		9,313,240		2,207,291		7,354,107
	Dividends on preferred stock		-		77,250		-		231,750
Net income available to common shareholders			$                  1,622,114		$             9,235,990		$         2,207,291		$         7,122,357
	Weighted average shares outstanding-basic		16,449,829		13,621,406		16,270,499		13,621,406
	Weighted average shares-diluted		16,449,829		17,089,722		16,270,499		17,089,722
	Earnings per share
		available to common shareholders	$                           0.10		$                      0.68		$                  0.14		$                  0.52
	Earnings per share-diluted
		available to common shareholders	$                           0.10		$                      0.54		$                  0.14		$                  0.42

 

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

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
	Unaudited		Unaudited		Unaudited		Unaudited
Net income available to
common shareholders	$          1,622,114		$          9,235,990		$          2,207,291		$          7,122,357
Less: Income tax expense (benefit)	651,396		(53,844)		945,216		(458,812)
Add: Dividends on preferred stock	-		77,250		-		231,750
Add:  Interest expense	206,394		136,995		548,885		356,505
Less: Non-operating expense (income)	116,646		(9,898,644)		19,516		(10,457,214)
Add: Depreciation expense	1,413,638		1,233,879		4,006,663		3,469,723
Adjusted EBITDA	$          4,010,188		$             731,626		$          7,727,571		$             264,309

About Non-GAAP Financial Measures

We present Adjusted EBITDA, defined as earnings before interest expense, income tax expense (benefit), depreciation and amortization expense, dividends of preferred stock, and other non-operating expense (income), a non-GAAP financial measure, in this press release to provide a supplemental measure of our earnings. We believe that Adjusted EBITDA is a useful measure of the Company's cash flow. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation as a substitute for analysis of the Company' results as reported under GAAP.

About Energy Services

 Energy Services of America Corporation (Nasdaq: 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 800+ 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 the earnings results for ESOA in Q3 2022?

Energy Services of America Corporation reported earnings of $1.6 million for Q3 2022.

What is the revenue for ESOA for the nine months ended June 30, 2022?

The revenue for Energy Services of America Corporation for the nine months ended June 30, 2022, was $129.2 million.

How has ESOA's adjusted EBITDA changed compared to the previous year?

Adjusted EBITDA for ESOA increased to $4.0 million in Q3 2022 from $731,626 in Q3 2021.

What is the current backlog for ESOA as of June 30, 2022?

Energy Services of America Corporation reported a backlog of $135.0 million as of June 30, 2022.

What recent acquisitions has ESOA made?

ESOA acquired Tri-State Paving & Sealcoating, Inc. and Ryan Construction Services, Inc. to enhance its service offerings and geographic reach.