Energy Services of America Announces Financial Results for the Three and Six Months Ended March 31, 2022
HUNTINGTON, W.Va., May 12, 2022 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), generated revenues of
Douglas Reynolds, President, commented on the announcement, "We are very pleased with the Company's performance for the first two quarters of the fiscal year, which are typically our slowest months. The
Below is a comparison of the Company's operating results for the three and six months ended March 31, 2022, as compared to the same periods in fiscal year 2021:
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||
March 31, | March 31, | March 31, | March 31, | ||||||
2022 | 2021 | 2022 | 2021 | ||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||
Revenue | $ 35,392,578 | $ 25,605,412 | $ 78,051,703 | $ 57,615,208 | |||||
Cost of revenues | 32,526,959 | 23,731,889 | 69,877,711 | 52,898,626 | |||||
Gross profit | 2,865,619 | 1,873,523 | 8,173,992 | 4,716,582 | |||||
Selling and administrative expenses | 3,417,039 | 3,823,913 | 7,049,634 | 7,419,743 | |||||
(Loss) income from operations | (551,420) | (1,950,390) | 1,124,358 | (2,703,161) | |||||
Other income (expense) | |||||||||
Interest income | - | 4 | 576 | 151,769 | |||||
Other nonoperating expense | (109,810) | (32,887) | (263,238) | (85,510) | |||||
Interest expense | (144,932) | (142,993) | (342,491) | (219,510) | |||||
Gain on sale of equipment | 19,896 | 479,269 | 359,792 | 492,311 | |||||
(234,846) | 303,393 | (245,361) | 339,060 | ||||||
(Loss) income before income taxes | (786,266) | (1,646,997) | 878,997 | (2,364,101) | |||||
Income tax (benefit) expense | (200,463) | (335,526) | 293,820 | (404,968) | |||||
Net (loss) income | (585,803) | (1,311,471) | 585,177 | (1,959,133) | |||||
Dividends on preferred stock | - | 77,250 | - | 154,500 | |||||
Net (loss) income available to common shareholders | $ (585,803) | $ (1,388,721) | $ 585,177 | $ (2,113,633) | |||||
Weighted average shares outstanding-basic | 16,247,898 | 13,621,406 | 16,247,898 | 13,621,406 | |||||
Weighted average shares-diluted | 16,247,898 | 13,621,406 | 16,247,898 | 13,621,406 | |||||
(Loss) earnings per share | |||||||||
available to common shareholders | $ (0.04) | $ (0.10) | $ 0.04 | $ (0.16) | |||||
(Loss) earnings per share-diluted | |||||||||
available to common shareholders | $ (0.04) | $ (0.10) | $ 0.04 | $ (0.16) | |||||
Please refer to the table below that reconciles adjusted EBITDA with net income available to common shareholders:
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||
March 31, 2022 | March 31, 2021 | March 31, 2022 | March 31, 2021 | ||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||
Net (loss) income available to | |||||||
common shareholders | $ (585,803) | $ (1,388,721) | $ 585,177 | $ (2,113,633) | |||
Less: Income tax (benefit) expense | (200,463) | (335,526) | 293,820 | (404,968) | |||
Add: Dividends on preferred stock | - | 77,250 | - | 154,500 | |||
Add: Interest expense | 144,932 | 142,993 | 342,491 | 219,510 | |||
Less: Non-operating expense (income) | 89,914 | (446,386) | (97,130) | (558,570) | |||
Add: Depreciation expense | 1,288,529 | 1,151,991 | 2,593,025 | 2,235,844 | |||
Adjusted EBITDA | $ 737,109 | $ (798,399) | $ 3,717,383 | $ (467,317) | |||
About Non-GAAP Financial Measures
We present Adjusted EBITDA, defined as earnings before interest expense, income tax expense (benefit), depreciation and amortization expense, dividends of preferred stock, and other non-operating expense (income), a non-GAAP financial measure, in this press release to provide a supplemental measure of our earnings. We believe that Adjusted EBITDA is a useful measure of the Company's cash flow. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation as a substitute for analysis of the Company' results as reported under 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 700+ 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. 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.
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SOURCE Energy Services of America Corporation
