EX-99.1 2 t82965_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

ENERGY SERVICES OF AMERICA FILES QUARTERLY REPORT

 

Huntington, WV   August 12, 2015-  Energy Services of America (the “Company”) (OTC: ESOA), parent company of C.J. Hughes Construction Company and Nitro Electric Company, announced today the filing of the Company’s quarterly report on Form 10-Q for the quarter ended June 30, 2015. Energy Services earned revenues of $35.1 million and $79.1 million, respectively, for the three and nine months ended June 30, 2015. Gross margins were $2.9 million and $6.3 million, respectively, for the three and nine months ended June 30, 2015. Net income available to common shareholders was $707,000 and $222,000, respectively, for the three and nine months June 30, 2015. The Company had EBITDA of $2.3 million ($0.16 per share) and $3.8 million ($0.27 per share), respectively, for the three and nine months ended June 30, 2015. The backlog at June 30, 2015 was $48.8 million.

 

Below is a comparison of the Company’s operating results:

 

   Three Months Ended   Three Months Ended   Nine Months Ended   Nine Months Ended 
   June 30, 2015   June 30, 2014   June 30, 2015   June 30, 2014 
   Unaudited   Unaudited   Unaudited   Unaudited 
                 
Revenue  $35,120,857   $21,486,057   $79,137,465   $60,580,891 
                     
Gross profit   2,928,165    1,723,345    6,278,170    5,364,116 
                     
Income from operations   1,413,619    191,663    1,217,026    444,048 
                     
Income (loss) from continuing operations before income taxes   1,282,990    (2,443)   845,470    (177,579)
Income tax expense (benefit)   503,352    (546,330)   405,260    (1,174,847)
Income from continuing operations   779,638    543,887    440,210    997,268 
                     
Dividends on preferred stock   77,250    77,250    231,750    309,000 
                     
Income from continuing operations available to common shareholders   702,388    466,637    208,460    688,268 
                     
Income (loss) from discontinued operations net of tax expense   4,176    (27,849)   13,170    (26,728)
                     
Net income available to common shareholders  $706,564   $438,788   $221,630   $661,540 

 

Revenues for the three and nine months ended June 30, 2015 increased $13.6 million and $18.6 million, respectively, compared to the same time periods in 2014 primarily due to increased work for natural gas and petroleum customers. Gross profit percentages increased for the three months ended June 30, 2015 to 8.3% compared to 8.0% for the same time period in 2014. However, gross margin percentages decreased for the nine months ended June 30, 2015 to 7.9% compared to 8.9% for the same time period in 2014. The Company attributes this to working natural gas transmission projects in inclement weather conditions during the second quarter of fiscal year 2015 and higher than expected profits on several transmission pipeline projects that completed in fiscal year 2014.

 

Douglas Reynolds, President, commented on the announcement. “The first nine months of fiscal year 2015 have been better than we anticipated when compared to our business plan. We attribute that to booking several natural gas transmission projects earlier in the fiscal year than what we expected. We have increased income from continuing operations before tax by $1.0 million when comparing the nine months ended June 30, 2015 to June 30, 2014.” Reynolds continued, “We lost out on some projects in the third quarter of fiscal year 2015 due to the competitive bidding process. Even with that, we feel that we have enough projects under contract to make fiscal year 2015 successful. We are still seeing considerable interest for our services, but most of the opportunities wouldn’t be an impact until fiscal year 2016. We currently have a projected backlog of $48.8 million and, additionally, we expect to sign a $10.0 million contract in the next couple months for work that will begin in fiscal year 2016.”

 

 
   

 

Please refer to the table below that reconciles EBITDA and EBITDA per share:

 

   Three Months Ended   Three Months Ended   Nine Months Ended   Nine Months Ended 
   June 30, 2015   June 30, 2014   June 30, 2015   June 30, 2014 
                 
Revenue  $35,120,857   $21,486,057   $79,137,465   $60,580,891 
Cost of revenues   32,192,692    19,762,712    72,859,295    55,216,775 
Gross margin   2,928,165    1,723,345    6,278,170    5,364,116 
Selling and administrative expenses   1,514,546    1,531,682    5,061,144    4,920,068 
Income from operations   1,413,619    191,663    1,217,026    444,048 
Depreciation expense   842,130    843,366    2,582,252    2,538,052 
EBITDA  $2,255,749   $1,035,029   $3,799,278   $2,982,100 
                     
Common shares outstanding   14,239,836    14,239,836    14,239,836    14,239,836 
EBITDA per common share  $0.16   $0.07   $0.27   $0.21 

 

Certain statements contained in the release, including without limitation statements including 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 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.

 

Contact:

Douglas Reynolds, President

304-522-3868