Enservco Corporation Reports 2023 Fourth Quarter and Full Year Financial Results
Fourth Quarter 2023 Highlights
- Revenue flat overall with a completions services revenue increase offset by an expected production services revenue decrease from Q4 of 2022
- Gross profit improves
14% - General and administrative expenses down
2% - Net loss increased to
$1.9 million from$1.7 million , with the increase related to$0.5 million write down of goodwill in Q4 2023 - Positive Adjusted EBITDA versus an Adjusted EBITDA loss in Q4 of 2022
Full Year 2023 Highlights
- Revenue up
2% compared to 2022 - Gross profit improves
61% - General and administrative expenses down
9% - Net loss increased to
$8.5 million from$5.6 million , due primarily to the write down of goodwill and the 2022 net loss including a$4.3 million non-cash gain on debt extinguishment - Adjusted EBITDA loss improves
46%
LONGMONT, Colo., April 01, 2024 (GLOBE NEWSWIRE) -- Enservco Corporation (NYSE American: ENSV), a diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industries, today announced its 2023 Fourth Quarter and full year financial results.
Rich Murphy, the Company’s CEO and Chairman stated “We continued to make improvements highlighted by another improved quarter for our Company, despite unseasonably warmer weather over much of the United States. The fourth quarter heating season had
Murphy continued “Our gross profit margins continue to improve, and our general and administrative expenses continue to decrease on a comparative basis. Our EBITDA loss continues to decrease as we execute on our long-stated goals of building a more sustainable and profitable business model, with reduced debt. Our total debt decreased to
2023 Fourth Quarter Results
Total revenue in the fourth quarter came in at
Production services revenue, which includes hot oiling and acidizing services, decreased
Operating profit improved by
The Company’s net loss increased by
Adjusted EBITDA was positive
Full Year Results
Full year revenue came in at
Production services revenue decreased
Gross profit improved by
General and administrative costs decreased by
Net loss increased to
Adjusted EBITDA came in at a loss of
To view financial statements on form 10-K as filed with the SEC, click the following link:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000319458/000143774924009956/ensv20231231c_10k.htm
Conference Call Information
The Company has scheduled a conference call on April 1, 2024 at 10:00 a.m. ET to discuss its fourth quarter and full year 2023 operational and financial results. To participate, interested parties should dial 877-270-2148 at least five minutes before the call is to begin. Please reference the “Enservco Fourth Quarter and Full Year 2023 Earnings Conference Call”. International callers may participate by dialing 412-902-6510. In addition, interested parties can participate through a webcast of the audio call by accessing the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=Q0V8M4bc
Like callers, participants should access the webcast at least five minutes prior to start time. In addition, a replay of the webcast will be available following the call through the above link
ABOUT ENSERVCO
Enservco provides a range of oilfield services through its various operating subsidiaries, including hot oiling, acidizing, frac water heating, and related services. The Company has a broad geographic footprint covering major domestic oil and gas basins across the United States. Additional information is available at www.enservco.com. On March 20, 2024, the Company announced an agreement to purchase Buckshot Trucking LLC, an energy logistics provider in multiple key oil and gas basins (the “Buckshot Acquisition”). The Buckshot Acquisition is scheduled to close in the second quarter of 2024. When closed, the Buckshot Acquisition would provide Enservco with a growing business that is not weather dependent, allow the Company to enter steady year-round logistics, provide an expanded operating footprint, and improve cash flow visibility.
*Note on Non-GAAP Financial Measures
This press release and the accompanying tables include a discussion of EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a complement to the results provided in accordance with generally accepted accounting principles ("GAAP"). The term "EBITDA" refers to a financial measure that we define as earnings (net income or loss) plus or minus net interest taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing Enservco’s operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure. We have reconciled Adjusted EBITDA to GAAP net loss in the table below. We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.
| For the Quarter Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Reconciliation from Net Loss to Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (1,943 | ) | $ | (1,704 | ) | $ | (8,517 | ) | $ | (5,575 | ) | ||||
| Add back (deduct): | ||||||||||||||||
| Interest expense | 537 | 330 | 2,121 | 1,383 | ||||||||||||
| Deferred income tax benefit | (35 | ) | - | (51 | ) | - | ||||||||||
| Depreciation and amortization | 833 | 1,030 | 3,654 | 4,347 | ||||||||||||
| EBITDA (non-GAAP) | (608 | ) | (344 | ) | (2,793 | ) | 155 | |||||||||
| Add back (deduct): | ||||||||||||||||
| Stock-based compensation | 126 | 156 | 377 | 811 | ||||||||||||
| Severance and transition costs | - | 2 | 1 | 303 | ||||||||||||
| Non-recurring legal expense | (2 | ) | - | 362 | 23 | |||||||||||
| One-time software implementation cost | (28 | ) | - | - | - | |||||||||||
| Bad debt recovery | (50 | ) | (94 | ) | (50 | ) | (94 | ) | ||||||||
| Impairment losses | 546 | - | 796 | - | ||||||||||||
| Loss (gain) on disposal of property and equipment | 93 | 42 | (16 | ) | 300 | |||||||||||
| Gain on debt extinguishment | - | - | - | (4,277 | ) | |||||||||||
| Other (income) expense | (15 | ) | 161 | (157 | ) | 59 | ||||||||||
| Adjusted EBITDA | $ | 62 | $ | (77 | ) | $ | (1,480 | ) | $ | (2,720 | ) | |||||
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains information that is "forward-looking" in that it describes events and conditions Enservco reasonably expects to occur in the future. Expectations for the future performance of Enservco are dependent upon a number of factors, and there can be no assurance that Enservco will achieve the results as contemplated herein. Certain statements denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond Enservco's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in Enservco’s annual report on Form 10-K for the year ended December 31, 2023, and subsequently filed documents with the Securities and Exchange Commission (“SEC”). Forward looking statements in this news release that are subject to risks related to, among other things, closing of the Buckshot Acquisition on anticipated terms and timing, and the ability of Enservco to successfully integrate Buckshot’s market opportunities, personnel and operations and to achieve expected benefits. Enservco disclaims any obligation to update any forward-looking statement made herein.
CONTACT
Mark Patterson
Chief Financial Officer
Enservco Corporation
mpatterson@enservco.com
