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.
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