ESI Energy Services Inc. (CSE: OPI) ('ESI' or the 'Company') announces its 2020 second quarter financial results. Robert Dunstan, ESI's President and CEO, announced higher levels of revenue, net income, EBITDA and funds flow from operations as well as lower working capital and long-term debt, for the second quarter of 2020 compared with the same period in 2019.
Q2 2020 Highlights
Revenue for the three-month period ended June 30, 2020 increased by 71 percent to $4,262,000 compared to $2,492,000 during the same period in 2019. Most of this revenue was generated by padding machine rentals. Substantially all the padding revenue was generated in the United States. Approximately 78 percent of the revenue generated during the three-month period ended June 30, 2020 came from padding machine rentals, 60 percent of which was from the large machines and 40 percent from the small machines. Activity levels for large padding machines were up from 20 padding months during the second quarter of 2019 to 29 padding months during the second quarter of 2020, an increase of 45 percent. Activity levels for small padding machines were up by 126 percent to 43 padding months during the second quarter of 2020, compared with 19 padding months during the same period in 2019. Virtually all the revenue from small padding machines was generated from renewables (wind and solar) construction as well as approximately 40 percent of the large padder months. OPP-200 padding machines are used for both pipeline and renewables construction, whereas OPP-300 machines are used exclusively for large diameter pipeline construction. Gross margin for the three-month period ended June 30, 2020 increased by 139 percent to $2,365,000 compared to $988,000 for the same period in 2019. This increase was primarily due to higher revenue in 2020 compared with 2019. The Company generated net income of $ 319,000 during the second quarter of 2020 which was higher by $467,000 compared to net loss of $148,000 reported during the same period in 2019. The increase in net income during the second quarter of 2020 was primarily due to higher revenue as noted above. Funds flow from operations was $1,484,000 during the second quarter of 2020, an increase of $1,265,000 compared to $219,000 during the same period in 2019. The increase was primarily due to an increase in revenue during the second quarter of 2020.
Q2 2020 YTD Highlights
Revenue for the six-month period ended June 30, 2020 increased by 43 percent to $6,261,000 compared to $4,382,000 during the same period in 2019. Consistent with the first quarter in 2020, virtually all this revenue was generated from padding revenue in the United States. 75 percent of the revenue generated during the six-month period ended June 30, 2020 came from padding machine rentals, 55 percent of which was from the large machines and 45 percent from the small machines. Activity levels for large padding machines were up from 35 padding months during the first six months of 2019 to 38 padding months during the same period in 2020, an increase of 9 percent. Activity levels for small padding machines were up by 133 percent to 70 padding months during the first six months of 2020, compared to 30 padding months during the same period in 2019.
About ESI
ESI is a publicly traded company listed on the Canadian Securities Exchange under the stock symbol 'OPI'. ESI is a pipeline and renewables equipment rental and sales company with principal operations in Leduc, Alberta and Phoenix, Arizona. The Company, together with its operating subsidiaries, ESI Pipeline Services, Inc. ('ESIPI') and ESI Energy Services (Australia) Pty Ltd., supplies (rents and sells) backfill separation machines ('Padding Machines') to mainline pipeline contractors, renewables and utility construction contractors, as well as oilfield pipeline and construction contractors.
Forward-Lookin
Statements Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance. The use of the word 'will', and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current beliefs or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forwardlooking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Due to the risks, uncertainties and assumptions inherent in forward-looking information, investors should not place undue reliance on forward- looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
Contact:
Tel: (403) 205 7188
Email: robert.dunstan@ozzies.com
ESI ENERGY SERVICES INC. 