Energy Services of America Announces Financial Results for the Three and Six Months Ended March 31, 2023
HUNTINGTON, W.Va., May 31, 2023 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (NASDAQ:ESOA), generated net loss of ($1.9) million, fully diluted loss per share of ($0.11), revenues of $53.7 million, and adjusted EBITDA of ($120,000) for the three months ended March 31, 2023. The Company had a backlog of $224.6 million (unaudited) at March 31, 2023, as compared to $142.3 million (unaudited) and $120.3 million (unaudited) at September 30, 2022 and March 31, 2022, respectively.
Douglas Reynolds, President, commented on the announcement. "The first six months of fiscal year 2023 have largely been about preparing for the opportunities we are seeing in the third and fourth quarters of fiscal year 2023 and beyond. We have brought in a great deal of experience and talent into the organization to increase our gas transmission opportunities. We also have seen a significant increase in large-scale industrial and manufacturing construction opportunities." Reynolds continued, "We have a strong backlog of $224.6 million (unaudited) at March 31, 2023 and are looking forward to the upcoming construction season and creating greater shareholder value."
Below is a comparison of the Company's operating results for the three and six months ended March 31, 2023 and 2022 (unaudited):
As Restated | As Restated | |||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||
March 31, | March 31, | March 31, | March 31, | |||||
2023 | 2022 | 2023 | 2022 | |||||
Unaudited | Unaudited | Unaudited | Unaudited | |||||
Revenue | $ 53,673,443 | $ 35,392,578 | $ 113,716,028 | $ 78,051,703 | ||||
Cost of revenues | 49,772,790 | 32,526,959 | 103,829,113 | 69,877,711 | ||||
Gross profit | 3,900,653 | 2,865,619 | 9,886,915 | 8,173,992 | ||||
Selling and administrative expenses | 5,887,747 | 3,417,039 | 11,203,885 | 7,049,634 | ||||
(Loss) income from operations | (1,987,094) | (551,420) | (1,316,970) | 1,124,358 | ||||
Other income (expense) | ||||||||
Interest income | 124 | - | 196 | 576 | ||||
Other nonoperating expense | (10,524) | (109,810) | (91,187) | (263,238) | ||||
Interest expense | (574,546) | (169,530) | (1,073,974) | (392,233) | ||||
Gain on sale of equipment | 48,280 | 19,896 | 16,937 | 359,792 | ||||
(536,666) | (259,444) | (1,148,028) | (295,103) | |||||
(Loss) income before income taxes | (2,523,760) | (810,864) | (2,464,998) | 829,255 | ||||
Income tax (benefit) expense | (650,160) | (200,463) | (729,772) | 293,820 | ||||
Net (loss) income | $ (1,873,600) | $ (610,401) | $ (1,735,226) | $ 535,435 | ||||
Weighted average shares outstanding-basic | 16,666,683 | 16,247,898 | 16,667,062 | 16,247,898 | ||||
Weighted average shares-diluted | 16,666,683 | 16,247,898 | 16,667,062 | 16,247,898 | ||||
(Loss) earnings per share | $ (0.11) | $ (0.04) | $ (0.10) | $ 0.03 | ||||
(Loss) earnings per share-diluted | $ (0.11) | $ (0.04) | $ (0.10) | $ 0.03 | ||||
Please refer to the table below that reconciles adjusted EBITDA with net income (unaudited):
As Restated | As Restated | ||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||
March 31, 2023 | March 31, 2022 | March 31, 2023 | March 31, 2022 | ||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||
Net (loss) income | $ (1,873,600) | $ (610,401) | $ (1,735,226) | $ 535,435 | |||
Less: Income tax (benefit) expense | (650,160) | (200,463) | (729,772) | 293,820 | |||
Add: Interest expense | 574,546 | 169,530 | 1,073,974 | 392,233 | |||
Less: Non-operating (income) expense | (37,880) | 89,914 | 74,054 | (97,130) | |||
Add: Depreciation expense | 1,866,789 | 1,288,529 | 3,629,111 | 2,593,025 | |||
Adjusted EBITDA | $ (120,305) | $ 737,109 | $ 2,312,141 | $ 3,717,383 |
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 reasons for the use of these measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and other information relating to these measures are included herein. 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.
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SOURCE Energy Services of America