EES Announces Strong Third Quarter Results

OKLAHOMA CITY, Nov. 14, 2022 /PRNewswire/ -- Energy and Environmental Services, Inc. (OTC: EESE) today announced its unaudited financial results for the third quarter ended September 30, 2022.

"Our Third Quarter 2022 results continue to show the strength of our people and products," said CEO Leon Joyce. "Through the difficult industry downturn in 2020 and 2021 we retained staff and inventory levels. Now that the industry has rebounded, we believe we have the people and products to meet industry needs," added Joyce.

Third Quarter 2022 Financial Highlights

• Sales revenues increased $1,168,400 or 28.7% from $4,068,300 for the Third Quarter 2021 to $5,236,700 in the Third Quarter 2022. Our gross profit was up $877,500 or 46.9% from $1,871,800 in the Third Quarter 2021 to $2,749,300 in the Third Quarter 2022.
• Operating expenses increased $569,700 or 27.4% from $2,077,500 in the Third Quarter 2021 to $2,647,200 in the Third Quarter 2022, which reflects a proportionate increase in selling and general and administrative costs. The proportionate increase was attributable to the current cost of goods and services.
• EBITDA was $391,000 for the Third Quarter 2022 compared to $34,300 for the Third Quarter 2021.
• Net income for the Third Quarter 2022 was $102,100 versus a loss of $205,700 in the Third Quarter 2021.  

Nine Months 2022 Financial Highlights

Our results for the Nine Months 2022 matched the strong results for the Third Quarter 2022.

• Sales revenues increased $4,774,700 or 47.8% from $9,985,300 for the Nine months 2021 to $14,760,000 in the Nine months 2022. Our gross profit was up $2,990,200 or 53.5% from $5,589,800 in the Nine months 2021 to $8,580,000 in the Nine months 2022.
• Operating expenses increased $1,310,800 or 22.4% from $5,858,300 in the Nine months 2021 to $7,169,100 in the Nine months 2022, which reflects an increase in selling and general and administrative costs during the Nine months 2022.
• EBITDA was $2,257,300 for the Nine months 2022 compared to $1,170,900 for the Nine months 2021. EBITDA for the Nine months 2021 included $787,000 in non-recurring payroll protection loan forgiveness.
• Net income from operations for the Nine Months 2022 was $1,410,900 versus a loss of $(268,500) in the Nine months 2021.

Capital Resources and Outlook

Our balance sheet remains relatively strong, despite the losses incurred in the 2020 and 2021 industry downturn. As of September 30, 2022, we had working capital of we had working capital of $6,047,300 versus working capital of $4,750,500 for December 31, 2021. In the Nine Months 2022, our operations provided cash of $1,917,000 versus cash used in operations $820,100 during the Nine Months 2021.

The oil and gas industry is resurging in 2022, and we are hopeful this upward trend will continue. We believe capital expenditures by exploration companies will likely continue or strengthen through the rest of 2022. These developments could lead to increased sales for our oil and gas products and services. We anticipate improvement in our results of operations during the remainder of 2022.

About EES

Energy and Environmental Services, Inc. (OTC: EESE) based in Edmond, Oklahoma, participates in the oilfield chemical, anti-corrosive coatings and biotech industries. EES was established in 1991 and management has over 200 years of combined experience in blending, manufacturing and packaging custom liquids and solid chemicals for the oil and gas, farm and ranch, and agricultural industries. Additionally, EES has expanded to manufacture coated oil and gas pump barrels, OMRI-certified liquid fertilizer, and other products and applications for specialized anti-corrosive coatings, and enzyme system technologies. Please visit the company's website at www.eesokc.com.

Safe Harbor for Forward-Looking Statements

Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Energy and Environmental Services actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Energy and Environmental Services expressly disclaims any intent or obligation to update any forward-looking statements.

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SOURCE Energy and Environmental Services, Inc.