Attached files
| file | filename |
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| 8-K - FORM 8-K - Energy Services of America CORP | tv481506_8k.htm |
Exhibit 99.1
ENERGY SERVICES OF AMERICA FILES ANNUAL REPORT
Huntington, WV December 15, 2017- Energy Services of America Corporation (the “Company” or “Energy Services”) (OTC QB: ESOA), parent company of C.J. Hughes Construction Company, Inc. and Nitro Electric Company, Inc. announced today the filing of the Company’s Annual Report on Form 10-K for the year ended September 30, 2017. For the fourth quarter of fiscal year 2017, the Company had revenue of $41.9 million, gross profit of $3.0 million, and income available to common shareholders of $476,000. For fiscal year 2017, the Company had revenue of $140.5 million, gross profit of $7.8 million, and a loss available to common shareholders of $697,000. The Company had an adjusted EBITDA of $3.6 million, or $0.25 per share, and loss per share of $(0.05) on 14,239,836 common shares outstanding for fiscal year 2017. The backlog at September 30, 2017 was $62.5 million.
Douglas Reynolds, President, commented on the announcement. “After a rough third quarter, we were able to get back on track in the fourth quarter of fiscal year 2017. A widespread labor shortage in the pipeline industry and above average inclement weather led to significant production delays on two major projects. We absorbed those losses in the third quarter and were able to improve our estimates in the fourth quarter. We also had several very successful projects that helped to reduce the loss available to common shareholders for fiscal year 2017 while generating a positive EBITDA of $3.6 million.”
Below is a comparison of the Company’s unaudited operating results for fiscal year 2017 compared to fiscal year 2016:
| Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||
| September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||||
| Revenue | $ | 41,941,034 | $ | 49,731,058 | $ | 140,495,726 | $ | 155,481,145 | ||||||||
| Cost of revenues | 38,915,516 | 44,846,960 | 132,711,810 | 141,283,142 | ||||||||||||
| Gross profit | 3,025,518 | 4,884,098 | 7,783,916 | 14,198,003 | ||||||||||||
| Selling and administrative expenses | 1,666,427 | 1,647,071 | 7,401,769 | 7,293,323 | ||||||||||||
| Income from operations | 1,359,091 | 3,237,027 | 382,147 | 6,904,680 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Other nonoperating income (expense) | (55,874 | ) | (85,826 | ) | (162,422 | ) | (158,246 | ) | ||||||||
| Interest expense | (275,326 | ) | (238,842 | ) | (833,424 | ) | (875,254 | ) | ||||||||
| Gain on sale of equipment | 50,313 | 130,791 | 145,575 | 268,448 | ||||||||||||
| (280,887 | ) | (193,877 | ) | (850,271 | ) | (765,052 | ) | |||||||||
| Income (loss) from continuing operations before income taxes | 1,078,204 | 3,043,150 | (468,124 | ) | 6,139,628 | |||||||||||
| Income tax (benefit) expense | 524,930 | 1,367,573 | (80,368 | ) | 2,898,205 | |||||||||||
| Income (loss) from continuing operations | 553,274 | 1,675,577 | (387,756 | ) | 3,241,423 | |||||||||||
| Dividends on preferred stock | 77,250 | 77,250 | 309,000 | 309,000 | ||||||||||||
| Income (loss) from continuing operations available to common shareholders | 476,024 | 1,598,327 | (696,756 | ) | 2,932,423 | |||||||||||
| Income from discontinued operations net of tax expense | - | - | - | - | ||||||||||||
| Net income (loss) available to common shareholders | $ | 476,024 | $ | 1,598,327 | $ | (696,756 | ) | $ | 2,932,423 | |||||||
| Weighted average shares outstanding-basic | 14,239,836 | 14,239,836 | 14,239,836 | 14,239,836 | ||||||||||||
| Weighted average shares-diluted | 17,673,169 | 17,673,169 | 14,239,836 | 17,673,169 | ||||||||||||
| Earnings (loss) per share available to common shareholders | $ | 0.033 | $ | 0.112 | $ | (0.049 | ) | $ | 0.206 | |||||||
| Earnings (loss) per share-diluted available to common shareholders | $ | 0.027 | $ | 0.090 | $ | (0.049 | ) | $ | 0.166 | |||||||
Please refer to the table below that reconciles EBITDA and EBITDA per share:
| 2017 | 2016 | |||||||
| Net income (loss) available to common shareholders | $ | (696,756 | ) | $ | 2,932,423 | |||
| Add: Income tax (benefit) expense | (80,368 | ) | 2,898,205 | |||||
| Add: Dividends on preferred stock | 309,000 | 309,000 | ||||||
| Add: Interest expense | 833,424 | 875,254 | ||||||
| Less: Non-operating expense (income) | 16,847 | (110,202 | ) | |||||
| Add: Depreciation expense | 3,235,362 | 2,503,471 | ||||||
| Adjusted EBITDA | $ | 3,617,509 | $ | 9,408,151 | ||||
| Common shares outstanding | 14,239,836 | 14,239,836 | ||||||
| Adjusted EBITDA per common share | $ | 0.25 | $ | 0.66 | ||||
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 Corporation
| Contact: | Douglas Reynolds, President |
| (304)-522-3868 |