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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):
August 12, 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 August 12, 2024, Energy
Services of America Corporation issued a press release disclosing its results of operations and financial condition at and for the three
and nine months ended June 30, 2024.
A copy of the press release
dated August 12, 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 August 12, 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: August 12, 2024 |
By: |
/s/
Charles Crimmel |
|
|
Charles
Crimmel |
|
|
Chief
Financial Officer |
Exhibit 99.1
Energy Services of America Reports Fiscal Third
Quarter 2024 Results
Records 510 Basis Point Improvement in Gross
Margin and 13 Percent Sequential Increase in Backlog
HUNTINGTON, W.Va., August 12, 2024 /PRNewswire/ -- Energy
Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), today announced its results
for its fiscal third quarter ended June 30, 2024.
Third Quarter Summary (1)
· | Revenue
of $85.9 million versus $85.5 million |
| |
· | Gross
profit of $15.3 million, a 41% increase |
| |
· | Net
income of $17.5 million, or $1.06 per diluted share, compared to $3.4 million, or $0.21 per
diluted share. This quarter’s results include approximately $11.4 million net of estimated
income tax expense, or $0.69 per diluted share, from a legal judgement |
| |
· | Adjusted
EBITDA of $10.8 million compared to $7.5 million |
| |
· | Backlog
of $250.9 million compared to $222.8 million as of March 31, 2024 |
(1) All comparisons are versus the comparable prior
year period, unless otherwise stated.
"Our third quarter results, particularly our improved gross profit,
reflect the underlying strength of the business and our ability to focus on projects with more favorable margin profiles," said
Doug Reynolds, President. "We added $28 million to our backlog compared to the second quarter and continue to identify and hire
the right employees to effectively manage these additional projects.”
“We continue to experience very favorable tailwinds across the
industries we serve and believe this trend will continue well into fiscal 2025. We reduced our debt by almost $14 million in the quarter
and our strong balance sheet will allow us to continue to be opportunistic with acquisitions. Overall, we are very optimistic about the
prospects for our business over the coming quarters and believe we are well-positioned to deliver long-term value to our shareholders,”
Mr. Reynolds concluded."
Third Quarter Fiscal 2024 Financial Results
Total revenues for the period were $85.9 million, compared to $85.5
million in the third quarter of fiscal 2023. Increased work within the Gas & Water Distribution and Electrical, Mechanical and General
business lines was mostly offset by lower revenue within the Gas & Petroleum Transmission segment.
Gross profit was $15.3 million, compared to $10.9 million in the prior-year
quarter. Gross margin was 17.8% of revenues, compared to 12.7% of revenues in the third quarter of fiscal 2023. The increase is related
to sales mix and timing of projects across the business.
Selling and administrative expenses were $6.8 million, compared to
$5.3 million in the prior-year quarter. The increase is primarily related to additional personnel hired to secure and manage work for
expected growth.
Net income was $17.5 million, or $1.06 per diluted share, compared
to net income of $3.4 million or $0.21 per diluted share in the third quarter of fiscal 2023. This quarter’s results include approximately
$11.4 million, or $0.69 per diluted share, related to proceeds from a legal judgement.
Backlog as of June 30, 2024 was $250.9 million, compared to $222.8
million as of March 31, 2024 and $185.9 million as of June 30, 2023. Backlog at June 30, 2024 was comprised of approximately 30%
water projects and 20% in new construction projects in the electric vehicle battery and steel manufacturing industries. The remaining
backlog consisted of the Company’s normal mix of business.
Below is a comparison of the Company's operating results for the three
and nine months ended June 30, 2024 and 2023 (unaudited):
| |
Three Months Ended | | |
Three Months Ended | | |
Nine Months Ended | | |
Nine Months Ended | |
| |
June 30, | | |
June 30, | | |
June 30, | | |
June 30, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
Revenue | |
$ | 85,923,760 | | |
$ | 85,529,892 | | |
$ | 247,214,602 | | |
$ | 199,245,920 | |
| |
| | | |
| | | |
| | | |
| | |
Cost of revenues | |
| 70,615,936 | | |
| 74,650,897 | | |
| 214,828,263 | | |
| 178,480,010 | |
| |
| | | |
| | | |
| | | |
| | |
Gross profit | |
| 15,307,824 | | |
| 10,878,995 | | |
| 32,386,339 | | |
| 20,765,910 | |
| |
| | | |
| | | |
| | | |
| | |
Selling and administrative expenses | |
| 6,815,191 | | |
| 5,283,617 | | |
| 21,335,862 | | |
| 16,487,502 | |
Income from operations | |
| 8,492,633 | | |
| 5,595,378 | | |
| 11,050,477 | | |
| 4,278,408 | |
| |
| | | |
| | | |
| | | |
| | |
Other income (expense) | |
| | | |
| | | |
| | | |
| | |
Interest income | |
| - | | |
| - | | |
| - | | |
| 196 | |
Other nonoperating expense | |
| (27,446 | ) | |
| (72,338 | ) | |
| (33,935 | ) | |
| (163,525 | ) |
Income from lawsuit judgement | |
| 15,634,499 | | |
| - | | |
| 15,634,499 | | |
| - | |
Interest expense | |
| (546,960 | ) | |
| (639,888 | ) | |
| (1,771,560 | ) | |
| (1,713,862 | ) |
Gain on sale of equipment | |
| 571 | | |
| 30,136 | | |
| 292,166 | | |
| 47,073 | |
| |
| 15,060,664 | | |
| (682,090 | ) | |
| 14,121,170 | | |
| (1,830,118 | ) |
| |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 23,553,297 | | |
| 4,913,288 | | |
| 25,171,647 | | |
| 2,448,290 | |
| |
| | | |
| | | |
| | | |
| | |
Income tax expense | |
| 6,039,670 | | |
| 1,497,742 | | |
| 6,724,653 | | |
| 767,970 | |
| |
| | | |
| | | |
| | | |
| | |
Net income | |
$ | 17,513,627 | | |
$ | 3,415,546 | | |
$ | 18,446,994 | | |
$ | 1,680,320 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average shares outstanding-basic | |
| 16,565,827 | | |
| 16,602,556 | | |
| 16,567,034 | | |
| 16,659,169 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average shares-diluted | |
| 16,597,982 | | |
| 16,602,556 | | |
| 16,602,903 | | |
| 16,659,169 | |
| |
| | | |
| | | |
| | | |
| | |
Earnings per share-basic | |
$ | 1.06 | | |
$ | 0.21 | | |
$ | 1.11 | | |
$ | 0.10 | |
| |
| | | |
| | | |
| | | |
| | |
Earnings per share-diluted | |
$ | 1.06 | | |
$ | 0.21 | | |
$ | 1.11 | | |
$ | 0.10 | |
Please refer to the table below that reconciles adjusted EBITDA with
net income (unaudited):
| |
Three Months Ended | | |
Three Months Ended | | |
Nine Months Ended | | |
Nine Months Ended | |
| |
June 30, | | |
June 30, | | |
June 30, | | |
June 30, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
Net income | |
$ | 17,513,627 | | |
$ | 3,415,546 | | |
$ | 18,446,994 | | |
$ | 1,680,320 | |
| |
| | | |
| | | |
| | | |
| | |
Add: Income tax expense | |
| 6,039,670 | | |
| 1,497,742 | | |
| 6,724,653 | | |
| 767,970 | |
Add: Interest expense, net of interest income | |
| 546,960 | | |
| 639,888 | | |
| 1,771,560 | | |
| 1,713,666 | |
Add: Non-operating expense | |
| 27,446 | | |
| 72,338 | | |
| 33,935 | | |
| 163,525 | |
Less: Income from lawsuit judgement | |
| (15,634,499 | ) | |
| - | | |
| (15,634,499 | ) | |
| - | |
Less: Gain on sale of equipment | |
| (571 | ) | |
| (30,136 | ) | |
| (292,166 | ) | |
| (47,073 | ) |
Add: Depreciation and intangible asset amortization expense | |
| 2,264,418 | | |
| 1,862,875 | | |
| 6,662,650 | | |
| 5,757,387 | |
Adjusted EBITDA | |
$ | 10,757,051 | | |
$ | 7,458,253 | | |
$ | 17,713,127 | | |
$ | 10,035,795 | |
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
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Grafico Azioni Energy Services of America (NASDAQ:ESOA)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Energy Services of America (NASDAQ:ESOA)
Storico
Da Nov 2023 a Nov 2024