Energy Services of America Announces Financial Results for the Three Months Ended December 31, 2022
HUNTINGTON, W.Va., Feb. 13, 2023 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), generated net income of $164,000, fully diluted earnings per share of $0.01, revenues of $60.0 million, and adjusted EBITDA of $2.6 million for the three months ended December 31, 2022. The Company had an unaudited backlog of $206.9 million at December 31, 2022, as compared to $101.6 million at December 31, 2021.
Douglas Reynolds, President, commented on the announcement. "While the first quarter of fiscal year 2023 did not meet our expectations, we believe our backlog has the Company poised for a strong year. Notably, we have several natural gas projects under contract along with an electric vehicle battery project and a new school construction project." Reynolds continued, "Even beyond our current backlog, we are seeing tremendous opportunities to add additional work for this fiscal year and have added a considerable amount of construction experience and talent to our organization."
Below is a comparison of the Company's operating results for the three months ended December 31, 2022 and 2021 (unaudited):
Three Months Ended | Three Months Ended | ||||
December 31, 2022 | December 31, 2021 | ||||
Revenue | $ 60,042,585 | $ 42,659,125 | |||
Cost of revenues | 54,056,323 | 37,350,752 | |||
Gross profit | 5,986,262 | 5,308,373 | |||
Selling and administrative expenses | 5,316,138 | 3,632,595 | |||
Income from operations | 670,124 | 1,675,778 | |||
Other income (expense) | |||||
Interest income | 72 | 576 | |||
Other nonoperating expense | (80,663) | (153,428) | |||
Interest expense | (474,284) | (197,559) | |||
(Loss) gain on sale of equipment | (31,343) | 339,896 | |||
(586,218) | (10,515) | ||||
Income before income taxes | 83,906 | 1,665,263 | |||
Income tax (benefit) expense | (79,612) | 494,283 | |||
Net income | $ 163,518 | $ 1,170,980 | |||
Weighted average shares outstanding-basic | 16,667,185 | 16,247,898 | |||
Weighted average shares-diluted | 16,667,185 | 16,247,898 | |||
Earnings per share | $ 0.01 | $ 0.07 | |||
Earnings per share-diluted | $ 0.01 | $ 0.07 | |||
Please refer to the table below that reconciles adjusted EBITDA with net income (unaudited):
Three Months Ended | Three Months Ended | |||
December 31, 2022 | December 31, 2021 | |||
Net income | $ 163,518 | $ 1,170,980 | ||
Add: Income tax (benefit) expense | (79,612) | 494,283 | ||
Add: Interest expense | 474,284 | 197,559 | ||
Add (less): Non-operating expense (income) | 111,934 | (187,044) | ||
Add: Depreciation and amortization expense | 1,895,102 | 1,423,952 | ||
Adjusted EBITDA | $ 2,565,226 | $ 3,099,730 | ||
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. 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
