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Energy Services of America Announces Financial Results for the Three and Nine Months Ended June 30, 2023

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Energy Services of America Corporation (Nasdaq: ESOA) reports Q2 2023 net income of $3.4 million and revenues of $85.5 million, the highest in the company's history. Backlog at $185.9 million. Positive outlook for fiscal year 2023 and 2024.
Positive
  • Q2 2023 net income of $3.4 million, highest in company's history
  • Revenues of $85.5 million, highest in company's history
  • Backlog at $185.9 million
  • Positive outlook for fiscal year 2023 and 2024
Negative
  • None.

HUNTINGTON, W.Va., Aug. 14, 2023 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), generated net income of $3.4 million, fully diluted earnings per share of $0.21, revenues of $85.5 million, and adjusted EBITDA of $7.5 million for the three months ended June 30, 2023.  The Company had a backlog of $185.9 million (unaudited) at June 30, 2023, as compared to $142.3 million (unaudited) and $135.0 million (unaudited) at September 30, 2022 and June 30, 2022, respectively.

Douglas Reynolds, President, commented on the announcement. "We are very pleased with the results for our quarter ended June 30, 2023.  The $85.5 million in revenue is the largest amount generated in any quarter by the Company in its history.  Additionally, the $3.4 million in net income for the quarter is the second largest in the Company's history behind only the fourth quarter of fiscal year 2020.  During the first six months of fiscal year 2023, we made an investment in personnel to increase business opportunities.  We are starting to see the results of that investment with the quarter ended June 30, 2023."  Reynolds continued, "We have a backlog of $185.9 million (unaudited) at June 30, 2023 and continue to see opportunities across all of our business lines.  We are looking forward to a strong close of fiscal year 2023 and continuing to grow the Company in fiscal year 2024."

Below is a comparison of the Company's operating results for the three and nine months ended June 30, 2023 and 2022 (unaudited): 





As Restated




As Restated



Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended



June 30, 2023


June 30, 2022


June 30, 2023


June 30, 2022



Unaudited


Unaudited


Unaudited


Unaudited










Revenue

$           85,529,892


$           51,171,939


$     199,245,920


$     129,223,642

Cost of revenues

74,650,897


44,754,346


178,480,010


114,632,057


Gross profit

10,878,995


6,417,593


20,765,910


14,591,585

Selling and administrative expenses

5,283,617


3,821,043


16,487,502


10,870,677


Income from operations

5,595,378


2,596,550


4,278,408


3,720,908

Other income (expense)









Interest income

-


-


196


576


Other nonoperating expense

(72,338)


(174,957)


(163,525)


(438,195)


Interest expense

(639,888)


(231,265)


(1,713,862)


(623,498)


Gain on sale of equipment

30,136


58,311


47,073


418,103



(682,090)


(347,911)


(1,830,118)


(643,014)

Income before income taxes

4,913,288


2,248,639


2,448,290


3,077,894

Income tax expense

1,497,742


651,396


767,970


945,216

Net income

$             3,415,546


$             1,597,243


$         1,680,320


$         2,132,678










Weighted average shares outstanding-basic

16,602,556


16,449,829


16,659,169


16,270,499










Weighted average shares-diluted

16,602,556


16,449,829


16,659,169


16,270,499










Earnings per share

$                      0.21


$                      0.10


$                  0.10


$                  0.13

Earnings per share-diluted

$                      0.21


$                      0.10


$                  0.10


$                  0.13

 

Please refer to the table below that reconciles adjusted EBITDA with net income (unaudited):




As Restated




As Restated


Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended


June 30, 2023


June 30, 2022


June 30, 2023


June 30, 2022


Unaudited


Unaudited


Unaudited


Unaudited









Net income

$          3,415,546


$            1,597,243


$          1,680,320


$          2,132,678

Add: Income tax expense

1,497,742


651,396


767,970


945,216

Add:  Interest expense

639,888


231,265

#

1,713,862

#

623,498

Add: Non-operating expense, net of interest income
and gain on sale of equipment

42,202


116,646


116,256


19,516

Add: Amortization of intangible assets

135,820


111,842


401,221


307,698

Add: Depreciation expense

1,727,055


1,413,638


5,356,166


4,006,663

Adjusted EBITDA

$          7,458,253


$            4,122,030


$        10,035,795


$          8,035,269

 

Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures. The reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and other information relating to these measures are included herein. We include these measurements to enhance the understanding of our operating performance. We believe that Adjusted EBITDA as presented herein, considered along with net income (loss), is a relevant indicator of trends relating to the cash generating activity of our operations. We believe that excluding the costs herein provides a consistent comparison of the cash generating activity of our operations. We believe that Adjusted EBITDA is useful to investors as they facilitate a comparison of our operating performance to other companies who also use Adjusted EBITDA as supplemental operating measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our financial results prepared in accordance with 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 1,000+ 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, risks and uncertainties related to the restatement of certain of our historical consolidated financial statements. 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.

Cision View original content:https://www.prnewswire.com/news-releases/energy-services-of-america-announces-financial-results-for-the-three-and-nine-months-ended-june-30-2023-301899978.html

SOURCE Energy Services of America Corporation

Energy Services of America Corporation

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250.05M
10.76M
35.68%
29.87%
1.41%
Engineering & Construction
Water, Sewer, Pipeline, Comm & Power Line Construction
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United States of America
HUNTINGTON