ESOA Energy Services of America Corporation

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): May 8, 2024

 

Energy Services of America Corporation

(Exact Name of Registrant as Specified in its Charter)

 

Delaware	001-32998	20-4606266
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

 

75 West 3rd Ave., Huntington, West Virginia	25701
(Address of Principal Executive Offices)	(Zip Code)

 

Registrant’s telephone number, including area code: (304) 522-3868

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Ticker symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.0001	ESOA	The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

Item 2.02 Results of Operations

 

On May 8, 2024, Energy Services of America Corporation issued a press release disclosing its results of operations and financial condition at and for the three and six months ended March 31, 2024.

 

A copy of the press release dated May 8, 2024, is included as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed filed for any purpose. 

 

Item 9.01 Financial Statements and Exhibits

 

(c) Exhibits

 

Exhibit 99.1 Press Release dated May 8, 2024

 

104 Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the inline XBRL document.

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

 

	ENERGY SERVICES OF AMERICA CORPORATION
DATE:  May 8, 2024	By:	/s/ Charles Crimmel
		Charles Crimmel
		Chief Financial Officer

 

 

Exhibit 99.1

 

Energy Services of America Reports Fiscal Second Quarter 2024 Results

 

HUNTINGTON, W.Va., May 8, 2024 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), today announced its results for its fiscal second quarter ended March 31, 2024.

 

Second Quarter Summary ⁽¹⁾

 

·

Revenue of $71.1 million, a 33% increase

·

Gross profit of $6.2 million, a 60% increase

·

Net loss improved by $765,000 to $1.1 million, or ($0.07) per share

·

Adjusted EBITDA improved by $1 million to $923,000

·

Backlog of $222.8 million compared to $224.6 million

 

⁽¹⁾ All comparisons are versus the comparable prior year period, unless otherwise stated.

 

"Our second quarter results reflect the continued growth and improved operating performance across all of our business lines," said Doug Reynolds, President. "Although the second quarter is historically our most challenging due to weather, we added approximately $37 million to our backlog compared to the first quarter, and we believe our recent staffing initiatives will allow us to effectively manage these construction projects going forward.”

 

“We believe the outlook for the industries we serve remains strong for the foreseeable future. We have a robust backlog and have seen greater than anticipated demand which allows us to prioritize our project selection on those that offer more favorable margin profiles. Overall, we believe are well-positioned with strong macro tailwinds that will allow us to continue to deliver long-term value to our shareholders in the coming quarters and beyond,” Mr. Reynolds concluded." 

 

 

Second Quarter Fiscal 2024 Financial Results

 

Total revenues for the period equaled $71.1 million, compared to $53.7 million in the second quarter of fiscal 2023. The year-over-year increase was primarily driven by increased work within the Gas & Petroleum Transmission and Electrical, Mechanical and General business lines.  

 

Gross profit was $6.2 million, compared to $3.9 million in the prior-year quarter. Gross margin was 8.8% of revenues, compared to 7.3% of revenues in the second quarter of fiscal 2023. The increase is related to sales mix across the business.

 

Selling and administrative expenses were $7.3 million, compared to $5.9 million in the prior-year quarter. The increase is primarily related to additional personnel hired to secure and manage work for expected growth.

 

Net loss was $1.1 million, or ($0.07) per share, compared to net loss of $1.9 million or ($0.11) per share in the second quarter of fiscal 2023.

 

Backlog as of March 31, 2024 was $222.8 million, compared to $185.9 million as of December 31, 2023 and $224.6 million as of March 31, 2023. 

 

Below is a comparison of the Company's operating results for the three and six months ended March 31, 2024 and 2023 (unaudited):

 

		Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
		March 31,				March 31,				March 31,				March 31,
		2024				2023				2024				2023
Revenue		$	71,127,655			$	53,673,443			$	161,290,842			$	113,716,028
Cost of revenues			64,888,101				49,772,790				144,212,327				103,829,113
Gross profit			6,239,554				3,900,653				17,078,515				9,886,915
Selling and administrative expenses			7,321,951				5,887,747				14,520,671				11,203,885
(Loss) income from operations			(1,082,397	)			(1,987,094	)			2,557,844				(1,316,970	)
Other income (expense)
Interest income			-				124				-				196
Other nonoperating expense			(81,790	)			(10,524	)			(6,789	)			(91,187	)
Interest expense			(622,616	)			(574,546	)			(1,224,300	)			(1,073,974	)
Gain on sale of equipment			304,923				48,280				291,595				16,937
			(399,483	)			(536,666	)			(939,494	)			(1,148,028	)
(Loss) income before income taxes			(1,481,880	)			(2,523,760	)			1,618,350				(2,464,998	)
Income tax (benefit) expense			(373,052	)			(650,160	)			684,983				(729,772	)
Net (loss) income		$	(1,108,828	)		$	(1,873,600	)		$	933,367			$	(1,735,226	)
Weighted average shares outstanding-basic			16,569,871				16,666,683				16,567,853				16,667,062
Weighted average shares-diluted			16,569,871				16,666,683				16,606,075				16,667,062
(Loss) earnings per share-basic		$	(0.07	)		$	(0.11	)		$	0.06			$	(0.10	)
(Loss) earnings per share-diluted		$	(0.07	)		$	(0.11	)		$	0.06			$	(0.10	)

 

 

Please refer to the table below that reconciles adjusted EBITDA with net income (unaudited):

 

		Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
		March 31,				March 31,				March 31,				March 31,
		2024				2023				2024				2023
Net (loss) income		$	(1,108,828	)		$	(1,873,600	)		$	933,367			$	(1,735,226	)
(Less) add: Income tax (benefit) expense			(373,052	)			(650,160	)			684,983				(729,772	)
Add:  Interest expense, net of interest income			622,616				574,422				1,224,300				1,073,778
Add: Non-operating expense			81,790				10,524				6,789				91,187
Less:  Gain on sale of equipment			(304,923	)			(48,280	)			(291,595	)			(16,937	)
Add: Depreciation and intangible asset amortization expense			2,005,327				1,866,789				4,181,948				3,629,111
Adjusted EBITDA		$	922,930			$	(120,305	)		$	6,739,792			$	2,312,141

 

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.

 

Contact

 

Steven Hooser or John Beisler

Three Part Advisors

(214) 872-2710

 

 

v3.24.1.u1

Cover	May 08, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 08, 2024
Entity File Number	001-32998
Entity Registrant Name	Energy Services of America Corporation
Entity Central Index Key	0001357971
Entity Tax Identification Number	20-4606266
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	75 West 3rd Ave.
Entity Address, City or Town	Huntington
Entity Address, State or Province	WV
Entity Address, Postal Zip Code	25701
City Area Code	304
Local Phone Number	522-3868
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, Par Value $0.0001
Trading Symbol	ESOA
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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