HUNTINGTON, W.Va., Aug. 14, 2023 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), generated net income of $3.4 million, fully diluted earnings per share of $0.21, revenues of $85.5 million, and adjusted EBITDA of $7.5 million for the three months ended June 30, 2023. The Company had a backlog of $185.9 million (unaudited) at June 30, 2023, as compared to $142.3 million (unaudited) and $135.0 million (unaudited) at September 30, 2022 and June 30, 2022, respectively.
Douglas Reynolds, President, commented on the announcement. "We are very pleased with the results for our quarter ended June 30, 2023. The $85.5 million in revenue is the largest amount generated in any quarter by the Company in its history. Additionally, the $3.4 million in net income for the quarter is the second largest in the Company's history behind only the fourth quarter of fiscal year 2020. During the first six months of fiscal year 2023, we made an investment in personnel to increase business opportunities. We are starting to see the results of that investment with the quarter ended June 30, 2023." Reynolds continued, "We have a backlog of $185.9 million (unaudited) at June 30, 2023 and continue to see opportunities across all of our business lines. We are looking forward to a strong close of fiscal year 2023 and continuing to grow the Company in fiscal year 2024."
Below is a comparison of the Company's operating results for the three and nine months ended June 30, 2023 and 2022 (unaudited):
As Restated | As Restated | |||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||
Unaudited | Unaudited | Unaudited | Unaudited | |||||
Revenue | $ 85,529,892 | $ 51,171,939 | $ 199,245,920 | $ 129,223,642 | ||||
Cost of revenues | 74,650,897 | 44,754,346 | 178,480,010 | 114,632,057 | ||||
Gross profit | 10,878,995 | 6,417,593 | 20,765,910 | 14,591,585 | ||||
Selling and administrative expenses | 5,283,617 | 3,821,043 | 16,487,502 | 10,870,677 | ||||
Income from operations | 5,595,378 | 2,596,550 | 4,278,408 | 3,720,908 | ||||
Other income (expense) | ||||||||
Interest income | - | - | 196 | 576 | ||||
Other nonoperating expense | (72,338) | (174,957) | (163,525) | (438,195) | ||||
Interest expense | (639,888) | (231,265) | (1,713,862) | (623,498) | ||||
Gain on sale of equipment | 30,136 | 58,311 | 47,073 | 418,103 | ||||
(682,090) | (347,911) | (1,830,118) | (643,014) | |||||
Income before income taxes | 4,913,288 | 2,248,639 | 2,448,290 | 3,077,894 | ||||
Income tax expense | 1,497,742 | 651,396 | 767,970 | 945,216 | ||||
Net income | $ 3,415,546 | $ 1,597,243 | $ 1,680,320 | $ 2,132,678 | ||||
Weighted average shares outstanding-basic | 16,602,556 | 16,449,829 | 16,659,169 | 16,270,499 | ||||
Weighted average shares-diluted | 16,602,556 | 16,449,829 | 16,659,169 | 16,270,499 | ||||
Earnings per share | $ 0.21 | $ 0.10 | $ 0.10 | $ 0.13 | ||||
Earnings per share-diluted | $ 0.21 | $ 0.10 | $ 0.10 | $ 0.13 | ||||
Please refer to the table below that reconciles adjusted EBITDA with net income (unaudited):
As Restated | As Restated | ||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||
Net income | $ 3,415,546 | $ 1,597,243 | $ 1,680,320 | $ 2,132,678 | |||
Add: Income tax expense | 1,497,742 | 651,396 | 767,970 | 945,216 | |||
Add: Interest expense | 639,888 | 231,265 | # | 1,713,862 | # | 623,498 | |
Add: Non-operating expense, net of interest income | 42,202 | 116,646 | 116,256 | 19,516 | |||
Add: Amortization of intangible assets | 135,820 | 111,842 | 401,221 | 307,698 | |||
Add: Depreciation expense | 1,727,055 | 1,413,638 | 5,356,166 | 4,006,663 | |||
Adjusted EBITDA | $ 7,458,253 | $ 4,122,030 | $ 10,035,795 | $ 8,035,269 |
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 reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and other information relating to these measures are included herein. We include these measurements to enhance the understanding of our operating performance. We believe that Adjusted EBITDA as presented herein, considered along with net income (loss), is a relevant indicator of trends relating to the cash generating activity of our operations. We believe that excluding the costs herein provides a consistent comparison of the cash generating activity of our operations. We believe that Adjusted EBITDA is useful to investors as they facilitate a comparison of our operating performance to other companies who also use Adjusted EBITDA as supplemental operating measures. 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.
SOURCE Energy Services of America Corporation
