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Energy Services Of America Corp (ESOA) SEC Filing 8-K Material Event for the period ending Monday, May 14, 2018

Energy Services Of America Corp

CIK: 1357971 Ticker: ESOA

Exhibit 99.1

ENERGY SERVICES OF AMERICA FILES QUARTERLY REPORT

 

 

Huntington, WV   May 14, 2018-  Energy Services of America (the “Company” or “Energy Services”) (OTC QB: ESOA), parent company of C.J. Hughes Construction Company (“C.J. Hughes”) and Nitro Construction Services, Inc. (“Nitro”), announced the filing of the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2018. Energy Services earned revenues of $23.1 million and $55.6 million for the three and six months ended March 31, 2018, respectively. Net loss available to common shareholders was $1.0 million and $954,000 for the three and six months ended March 31, 2018, respectively. The Company had adjusted EBITDA of $164,000 ($0.01 per share) and $1.2 million ($0.08 per share) for the three and six months ended March 31, 2018, respectively. The backlog at March 31, 2018 was $55.1 million; however, the backlog does not include a $47.0 million pipeline project that was awarded in April 2018. This project is scheduled to begin in June 2018 and complete in November 2018.

 

Below is a comparison of the Company’s operating results for the three and six months ended March 31, 2018 and 2017:

 

  

Three

Months

Ended

  

Three

Months

Ended

  

Six

Months

Ended

  

Six

Months

Ended

 
   March 31,   March 31,   March 31,   March 31, 
   2018   2017   2018   2017 
                 
Revenue  $23,093,033   $25,371,605   $55,640,636   $62,868,477 
                     
Cost of revenues   22,036,935    23,859,453    52,609,084    56,671,538 
                     
Gross profit   1,056,098    1,512,152    3,031,552    6,196,939 
                     
Selling and administrative expenses   1,956,356    1,939,278    3,965,447    4,134,888 
Income (loss) from operations   (900,258)   (427,126)   (933,895)   2,062,051 
                     
Other income (expense)                    
Interest income   61    -    132,342    - 
Other nonoperating expense   (47,023)   (40,231)   (102,147)   (111,660)
Interest expense   (243,708)   (143,546)   (539,552)   (374,515)
Gain on sale of equipment   19,670    41,841    388,375    68,831 
    (271,000)   (141,936)   (120,982)   (417,344)
                     
Income (loss) before income taxes   (1,171,258)   (569,062)   (1,054,877)   1,644,707 
                     
Income tax expense (benefit)   (223,683)   (256,523)   (255,802)   718,589 
                     
Net income (loss)   (947,575)   (312,539)   (799,075)   926,118 
                     
Dividends on preferred stock   77,250    77,250    154,500    154,500 
                     
                     
Net income (loss) available to common shareholders  $(1,024,825)  $(389,789)  $(953,575)  $771,618 
                     
Weighted average shares outstanding-basic   14,239,836    14,239,836    14,239,836    14,239,836 
                     
Weighted average shares-diluted   14,239,836    14,239,836    14,239,836    17,673,169 
Earnings (loss) per share from continuing operations                    
available to common shareholders  $(0.072)  $(0.027)  $(0.067)  $0.054 
                     
Earnings (loss) per share from continuing operations-diluted                    
available to common shareholders  $(0.072)  $(0.027)  $(0.067)  $0.044 
                     
Earnings (loss) per share                    
available to common shareholders  $(0.072)  $(0.027)  $(0.067)  $0.054 
                     
Earnings (loss) per share-diluted                    
available to common shareholders  $(0.072)  $(0.027)  $(0.067)  $0.044 

 

 

 

 

Revenues decreased by $7.3 million or 11.5% to $55.6 million for the six months ended March 31, 2018 from $62.9 million for the same period in 2017. The decrease was primarily attributable to a $13.8 million revenue decrease in petroleum and gas work and a $100,000 revenue decrease in water and sewer projects and other ancillary services, partially offset by a $6.6 million revenue increase in electrical and mechanical services.

 

Douglas Reynolds, President, commented on the announcement. “The first six months of fiscal year 2018 did not meet the expectations we established at the beginning of the year. The primary reasons were finishing two pipeline projects that suffered major losses in fiscal year 2017 and new projects starting later than anticipated in fiscal year 2018. However, the April award of a 21-mile pipeline project valued at $47.0 million sets us up well for the remaining six months of this fiscal year and into fiscal year 2019.” Reynolds continued, “We have made a few key additions this year that are already having an immediate impact within our pipeline group. On the sales and marketing side, we are receiving bid opportunities and project awards from new customers in addition to strengthening relationships with past clients. Operationally, we have made personnel additions that will enhance our overall management experience, provide contacts to new customers and improve our access to skilled labor. We are excited about these improvements and feel we are in position to have a strong finish to fiscal year 2018.”

 

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

 

   Three Months Ended   Three Months Ended   Six Months Ended   Six Months Ended 
   March 31, 2018   March 31, 2017   March 31, 2018   March 31, 2017 
   Unaudited   Unaudited   Unaudited   Unaudited 
                 
Net income (loss) available to                    
  common shareholders  $(1,024,825)  $(389,789)  $(953,575)  $771,618 
                     
Add: Income tax expense (benefit)   (223,683)   (256,523)   (255,802)   718,589 
                     
Add: Dividends on preferred stock   77,250    77,250    154,500    154,500 
                     
Add:  Interest expense   243,708    143,546    539,552    374,515 
                     
Less: Non-operating expense (income)   27,292    (1,610)   (418,570)   42,829 
                     
Add: Depreciation expense   1,064,658    727,820    2,114,346    1,406,151 
                     
Adjusted EBITDA  $164,400   $300,694   $1,180,451   $3,468,202 
Common shares outstanding   14,239,836    14,239,836    14,239,836    14,239,836 
Adjusted EBITDA per common share  $0.01   $0.02   $0.08   $0.24 

 

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.

 

Source: Energy Services of America

Contact: Douglas Reynolds, President

304-522-3868

 

 

 

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Energy Services Of America Corp provided additional information to their SEC Filing as exhibits

Ticker: ESOA
CIK: 1357971
Form Type: 8-K Corporate News
Accession Number: 0001144204-18-028121
Submitted to the SEC: Mon May 14 2018 3:28:54 PM EST
Accepted by the SEC: Mon May 14 2018
Period: Monday, May 14, 2018
Industry: Water Sewer Pipeline Comm And Power Line Construction
Events:
  1. Earnings Release
  2. Financial Exhibit

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