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Energy Services of America Reports Fiscal Third Quarter 2024 Results

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Energy Services of America (NASDAQ: ESOA) reported its fiscal third quarter 2024 results, highlighting significant improvements:

  • Revenue of $85.9 million, slightly up from $85.5 million year-over-year
  • Gross profit increased 41% to $15.3 million
  • Net income rose to $17.5 million ($1.06 per diluted share), including $11.4 million from a legal judgment
  • Adjusted EBITDA of $10.8 million, up from $7.5 million
  • Backlog grew 13% sequentially to $250.9 million

The company saw a 510 basis point improvement in gross margin to 17.8%. ESOA's President, Doug Reynolds, expressed optimism about future prospects, citing favorable industry tailwinds and a strong balance sheet for potential acquisitions.

Energy Services of America (NASDAQ: ESOA) ha annunciato i risultati del terzo trimestre fiscale 2024, evidenziando miglioramenti significativi:

  • Ricavi di 85,9 milioni di dollari, leggermente superiori agli 85,5 milioni di dollari rispetto all'anno precedente
  • Il profitto lordo è aumentato del 41% a 15,3 milioni di dollari
  • Il reddito netto è salito a 17,5 milioni di dollari (1,06 dollari per azione diluita), includendo 11,4 milioni di dollari da una sentenza legale
  • EBITDA rettificato di 10,8 milioni di dollari, in aumento rispetto ai 7,5 milioni di dollari
  • Il portafoglio ordini è cresciuto del 13% rispetto al trimestre precedente, raggiungendo 250,9 milioni di dollari

L'azienda ha registrato un miglioramento di 510 punti base nel margine lordo, portandolo al 17,8%. Il Presidente di ESOA, Doug Reynolds, ha espresso ottimismo riguardo alle prospettive future, citando venti favorevoli nel settore e un solido bilancio per potenziali acquisizioni.

Energy Services of America (NASDAQ: ESOA) informó sobre los resultados de su tercer trimestre fiscal de 2024, destacando mejoras significativas:

  • Ingresos de 85.9 millones de dólares, ligeramente por encima de los 85.5 millones de dólares en comparación con el año anterior
  • El beneficio bruto aumentó un 41% a 15.3 millones de dólares
  • Los ingresos netos aumentaron a 17.5 millones de dólares (1.06 dólares por acción diluida), incluyendo 11.4 millones de dólares de un fallo legal
  • EBITDA ajustado de 10.8 millones de dólares, en comparación con 7.5 millones de dólares
  • La cartera de pedidos creció un 13% secuencialmente, alcanzando 250.9 millones de dólares

La compañía vio una mejora de 510 puntos básicos en el margen bruto, alcanzando el 17.8%. El Presidente de ESOA, Doug Reynolds, expresó optimismo sobre las perspectivas futuras, citando vientos favorables en la industria y un balance sólido para adquisiciones potenciales.

Energy Services of America (NASDAQ: ESOA)는 2024 회계 연도 제3분기 실적을 발표하며, 주목할 만한 개선 사항을 강조했습니다:

  • 작년 대비 소폭 증가한 8590만 달러의 수익
  • 총 이익은 413% 증가하여 1530만 달러에 도달
  • 순이익은 1750만 달러(희석주당 1.06달러)로 증가했으며, 여기에는 법원 판결로 인한 1140만 달러가 포함됨
  • 조정된 EBITDA는 1080만 달러로, 750만 달러에서 증가함
  • 수주 잔고는 전분기 대비 13% 증가하여 2억 5090만 달러에 달함

회사는 총 이익률에서 510 베이시스 포인트 개선을 이루어 17.8%에 도달했습니다. ESOA의 회장인 Doug Reynolds는 산업의 유리한 기류와 잠재적 인수를 위한 강력한 재무 상태를 언급하며 미래 전망에 대한 낙관적인 입장을 표명했습니다.

Energy Services of America (NASDAQ: ESOA) a annoncé ses résultats pour le troisième trimestre fiscal de 2024, mettant en évidence des améliorations significatives :

  • Revenus de 85,9 millions de dollars, légèrement en hausse par rapport à 85,5 millions de dollars d'une année sur l'autre
  • Le bénéfice brut a augmenté de 41 % pour atteindre 15,3 millions de dollars
  • Le revenu net est passé à 17,5 millions de dollars (1,06 dollar par action diluée), incluant 11,4 millions de dollars provenant d'un jugement légal
  • EBITDA ajusté de 10,8 millions de dollars, en hausse par rapport à 7,5 millions de dollars
  • Le carnet de commandes a augmenté de 13 % par rapport au trimestre précédent, atteignant 250,9 millions de dollars

L'entreprise a constaté une amélioration de 510 points de base de sa marge brute, atteignant 17,8 %. Le président d'ESOA, Doug Reynolds, a exprimé son optimisme quant aux perspectives futures, citant des vents favorables dans l'industrie et un bilan solide pour d'éventuelles acquisitions.

Energy Services of America (NASDAQ: ESOA) hat seine Ergebnisse für das dritte Quartal 2024 veröffentlicht und dabei bedeutende Verbesserungen hervorgehoben:

  • Einnahmen von 85,9 Millionen Dollar, leicht gestiegen von 85,5 Millionen Dollar im Vergleich zum Vorjahr
  • Der Bruttogewinn stieg um 41% auf 15,3 Millionen Dollar
  • Der Nettogewinn kletterte auf 17,5 Millionen Dollar (1,06 Dollar pro verwässerter Aktie), einschließlich 11,4 Millionen Dollar aus einem Rechtsurteil
  • Bereinigtes EBITDA von 10,8 Millionen Dollar, im Vergleich zu 7,5 Millionen Dollar
  • Der Auftragsbestand wuchs im Vergleich zum Vorquartal um 13% auf 250,9 Millionen Dollar

Das Unternehmen verzeichnete eine Verbesserung des Bruttomargens um 510 Basispunkte auf 17,8%. Der Präsident von ESOA, Doug Reynolds, äußerte Optimismus hinsichtlich der zukünftigen Perspektiven und verwies auf günstige Branchentrends sowie auf eine starke Bilanz für mögliche Übernahmen.

Positive
  • Gross profit increased 41% year-over-year to $15.3 million
  • Gross margin improved by 510 basis points to 17.8%
  • Net income rose significantly to $17.5 million, or $1.06 per diluted share
  • Adjusted EBITDA increased to $10.8 million from $7.5 million
  • Backlog grew 13% sequentially to $250.9 million
  • Debt reduced by almost $14 million in the quarter
Negative
  • Selling and administrative expenses increased to $6.8 million from $5.3 million
  • Revenue growth was minimal, only increasing from $85.5 million to $85.9 million year-over-year

Records 510 Basis Point Improvement in Gross Margin and 13 Percent Sequential Increase in Backlog

HUNTINGTON, W.Va., Aug. 12, 2024 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), today announced its results for its fiscal third quarter ended June 30, 2024.

Third Quarter Summary (1)

  • Revenue of $85.9 million versus $85.5 million
  • Gross profit of $15.3 million, a 41% increase
  • Net income of $17.5 million, or $1.06 per diluted share, compared to $3.4 million, or $0.21 per diluted share. This quarter's results include approximately $11.4 million net of estimated income tax expense, or $0.69 per diluted share, from a legal judgement
  • Adjusted EBITDA of $10.8 million compared to $7.5 million
  • Backlog of $250.9 million compared to $222.8 million as of March 31, 2024

(1) All comparisons are versus the comparable prior year period, unless otherwise stated.

"Our third quarter results, particularly our improved gross profit, reflect the underlying strength of the business and our ability to focus on projects with more favorable margin profiles," said Doug Reynolds, President. "We added $28 million to our backlog compared to the second quarter and continue to identify and hire the right employees to effectively manage these additional projects."

"We continue to experience very favorable tailwinds across the industries we serve and believe this trend will continue well into fiscal 2025.  We reduced our debt by almost $14 million in the quarter and our strong balance sheet will allow us to continue to be opportunistic with acquisitions.  Overall, we are very optimistic about the prospects for our business over the coming quarters and believe we are well-positioned  to deliver long-term value to our shareholders," Mr. Reynolds concluded."

Third Quarter Fiscal 2024 Financial Results                    

Total revenues for the period were $85.9 million, compared to $85.5 million in the third quarter of fiscal 2023. Increased work within the Gas & Water Distribution and Electrical, Mechanical and General business lines was mostly offset by lower revenue within the Gas & Petroleum Transmission segment.

Gross profit was $15.3 million, compared to $10.9 million in the prior-year quarter. Gross margin was 17.8% of revenues, compared to 12.7% of revenues in the third quarter of fiscal 2023. The increase is related to sales mix and timing of projects across the business.

Selling and administrative expenses were $6.8 million, compared to $5.3 million in the prior-year quarter. The increase is primarily related to additional personnel hired to secure and manage work for expected growth.

Net income was $17.5 million, or $1.06 per diluted share, compared to net income of $3.4 million or $0.21 per diluted share in the third quarter of fiscal 2023. This quarter's results include approximately $11.4 million, or $0.69 per diluted share, related to proceeds from a legal judgement.

Backlog as of June 30, 2024 was $250.9 million, compared to $222.8 million as of March 31, 2024 and $185.9 million as of June 30, 2023. Backlog at June 30, 2024 was comprised of approximately 30% water projects and 20% in new construction projects in the electric vehicle battery and steel manufacturing industries.  The remaining backlog consisted of the Company's normal mix of business.

Below is a comparison of the Company's operating results for the three and nine months ended June 30, 2024 and 2023 (unaudited):




Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended




June 30,


June 30,


June 30,


June 30,




2024


2023


2024


2023











Revenue

$              85,923,760


$             85,529,892


$           247,214,602


$           199,245,920











Cost of revenues

70,615,936


74,650,897


214,828,263


178,480,010












Gross profit

15,307,824


10,878,995


32,386,339


20,765,910











Selling and administrative expenses

6,815,191


5,283,617


21,335,862


16,487,502


Income from operations

8,492,633


5,595,378


11,050,477


4,278,408











Other income (expense)









Interest income

-


-


-


196


Other nonoperating expense

(27,446)


(72,338)


(33,935)


(163,525)


Income from lawsuit judgement

15,634,499


-


15,634,499


-


Interest expense

(546,960)


(639,888)


(1,771,560)


(1,713,862)


Gain on sale of equipment

571


30,136


292,166


47,073




15,060,664


(682,090)


14,121,170


(1,830,118)











Income before income taxes

23,553,297


4,913,288


25,171,647


2,448,290











Income tax expense

6,039,670


1,497,742


6,724,653


767,970











Net income

$              17,513,627


$               3,415,546


$             18,446,994


$               1,680,320











Weighted average shares outstanding-basic

16,565,827


16,602,556


16,567,034


16,659,169











Weighted average shares-diluted 

16,597,982


16,602,556


16,602,903


16,659,169











Earnings per share-basic

$                         1.06


$                        0.21


$                        1.11


$                        0.10











Earnings per share-diluted

$                         1.06


$                        0.21


$                        1.11


$                        0.10

 

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



Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended



June 30,


June 30,


June 30,


June 30,



2024


2023


2024


2023



















Net income


$               17,513,627


$             3,415,546


$           18,446,994


$             1,680,320










Add: Income tax expense


6,039,670


1,497,742


6,724,653


767,970

Add:  Interest expense, net of interest income


546,960


639,888


1,771,560


1,713,666

Add: Non-operating expense


27,446


72,338


33,935


163,525

Less: Income from lawsuit judgement


(15,634,499)


-


(15,634,499)


-

Less:  Gain on sale of equipment


(571)


(30,136)


(292,166)


(47,073)

Add: Depreciation and intangible asset amortization expense


2,264,418


1,862,875


6,662,650


5,757,387

Adjusted EBITDA


$               10,757,051


$             7,458,253


$           17,713,127


$           10,035,795

 

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-reports-fiscal-third-quarter-2024-results-302220138.html

SOURCE Energy Services of America Corporation

FAQ

What was Energy Services of America's (ESOA) revenue for Q3 2024?

Energy Services of America (ESOA) reported revenue of $85.9 million for the fiscal third quarter of 2024, slightly up from $85.5 million in the same period last year.

How much did ESOA's net income increase in Q3 2024?

ESOA's net income increased to $17.5 million ($1.06 per diluted share) in Q3 2024, compared to $3.4 million ($0.21 per diluted share) in Q3 2023. This includes approximately $11.4 million from a legal judgment.

What was Energy Services of America's (ESOA) backlog as of June 30, 2024?

Energy Services of America's (ESOA) backlog as of June 30, 2024, was $250.9 million, up 13% from $222.8 million on March 31, 2024, and significantly higher than $185.9 million on June 30, 2023.

How much did ESOA's gross margin improve in Q3 2024?

ESOA's gross margin improved by 510 basis points in Q3 2024, reaching 17.8% of revenues compared to 12.7% in the same quarter of fiscal 2023.

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