HUNTINGTON, W.Va, May 15, 2019 /PRNewswire/ -- Energy Services of America (the "Company" or "Energy Services") (OTC QB: ESOA), parent company of C.J. Hughes Construction Company ("C.J. Hughes") and Nitro Construction Services, Inc. ("Nitro"), announced the filing of the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2019.  Energy Services earned revenues of $47.0 million and $96.1 million for the three and six months ended March 31, 2019, respectively.  Net loss available to common shareholders was $1.2 million and $648,000 for the three and six months ended March 31, 2019, respectively.  The Company had adjusted EBITDA of $(381,000) ($(0.03) per share) and $1.7 million ($0.12 per share) for the three and six months ended March 31, 2019, respectively.  The backlog at March 31, 2019 was $48.0 million; however, the backlog does not include $15.0 million in projects awarded subsequent to March 31, 2019. 

Below is a comparison of the Company's operating results for the three and six months ended March 31, 2019 and 2018:




Three Months Ended


Three Months Ended


Six Months Ended


Six Months Ended




March 31, 


March 31, 


March 31, 


March 31, 




2019


2018


2019


2018





















Revenue

$        46,955,444


$     23,093,033


$       96,069,583


$       55,640,636











Cost of revenues

46,364,050


22,036,935


91,643,344


52,609,084












Gross profit

591,394


1,056,098


4,426,239


3,031,552











Selling and administrative expenses

2,012,282


1,956,356


4,768,673


3,965,447


Loss from operations

(1,420,888)


(900,258)


(342,434)


(933,895)











Other income (expense)









Interest income

16,501


61


58,023


132,342


Other nonoperating expense

(20,581)


(47,023)


(53,576)


(102,147)


Interest expense

(209,125)


(243,708)


(413,474)


(539,552)


Gain on sale of equipment

111,817


19,670


137,569


388,375




(101,388)


(271,000)


(271,458)


(120,982)












Loss before income taxes

(1,522,276)


(1,171,258)


(613,892)


(1,054,877)












Income tax benefit

(397,818)


(223,683)


(120,818)


(255,802)












Net loss

(1,124,458)


(947,575)


(493,074)


(799,075)












Dividends on preferred stock

77,250


77,250


154,500


154,500





















Net loss available to common shareholders

$         (1,201,708)


$      (1,024,825)


$           (647,574)


$          (953,575)












Weighted average shares outstanding-basic

14,060,456


14,239,836


14,102,117


14,239,836












Weighted average shares-diluted 

14,060,456


14,239,836


14,102,117


14,239,836












Loss per share










available to common shareholders

$               (0.085)


$            (0.072)


$              (0.046)


$              (0.067)












Loss per share-diluted










available to common shareholders

$               (0.085)


$            (0.072)


$              (0.046)


$              (0.067)

Revenues increased by $40.5 million or 72.7% to $96.1 million for the six months ended March 31, 2019 from $55.6 million for the same period in 2018.  The increase was primarily attributable to a $41.9 million revenue increase in petroleum and gas work and a $1.8 million revenue increase in water and sewer projects and other ancillary services, partially offset by a $3.3 million revenue decrease in electrical and mechanical services. 

Douglas Reynolds, President, commented on the announcement.  "The first six months of fiscal year 2019 have been a challenge for Energy Services.  We have worked through the winter and early spring on a significant pipeline project in northern West Virginia that has experienced various delays and slowed production. This accounts for the increased revenue compared to fiscal year 2018; however, the delays and weather-related production issues have severely limited the expected profit on this project."  Reynolds continued, "While the first six months of fiscal year 2019 have been mostly spent working on projects that were in backlog at September 30, 2018, we have been successful in securing and starting $15.0 million in new projects during the third quarter of fiscal year 2019."  

Please refer to the table below that reconciles adjusted EBITDA and adjusted EBITDA per share with net loss available to common shareholders:


Three Months Ended


Three Months Ended


Six Months Ended


Six Months Ended


March 31, 2019


March 31, 2018


March 31, 2019


March 31, 2018


Unaudited


Unaudited


Unaudited


Unaudited









Net loss available to








  common shareholders

$            (1,201,708)


$            (1,024,825)


$               (647,574)


$               (953,575)









Add: Income tax benefit

(397,818)


(223,683)


(120,818)


(255,802)









Add: Dividends on preferred stock

77,250


77,250


154,500


154,500









Add:  Interest expense

209,125


243,708


413,474


539,552









Less: Non-operating expense (income)

(107,737)


27,292


(142,016)


(418,570)









Add: Depreciation expense

1,040,222


1,064,658


2,062,589


2,114,346









Adjusted EBITDA

$               (380,666)


$                 164,400


$               1,720,155


$               1,180,451

Common shares outstanding

14,060,456


14,239,836


14,102,117


14,239,836

Adjusted EBITDA per common share

$                      (0.03)


$                        0.01


$                        0.12


$                        0.08

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.

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SOURCE Energy Services of America Corporation