EX-99.1 2 tm2232713d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

Energy Services of America Announces Financial Results for the Year Ended September 30, 2022

 

Huntington, WV   December 15, 2022- Energy Services of America Corporation (the “Company” or “Energy Services”) (Nasdaq: ESOA), generated net income available to common shareholders of $3.9 million, fully diluted earnings per share of $0.24, revenues of $197.6 million, and adjusted EBITDA of $12.5 million for the fiscal year ended September 30, 2022 and plans to files its Annual Report on Form 10-K on December 22, 2022. The Company had an unaudited backlog of $142.3 million at September 30, 2022, as compared to $72.2 million at September 30, 2021.

 

Douglas Reynolds, President, commented on the announcement. “We are very pleased with the progress we made in fiscal year 2022 as we saw significant increases in revenue and gross profit. Our backlog at September 30, 2022 was $142.3 million and we are seeing tremendous opportunities for fiscal year 2023 and beyond.” Reynolds continued, “We are also very happy with our two acquisitions in fiscal year 2022, Tri-State Paving & Sealcoating, Inc. and Ryan Construction Services, Inc. We look forward to having another successful year of growing Energy Services and building shareholder value.”

 

Below is a comparison of the Company’s operating results for fiscal year 2022 compared to fiscal year 2021 (unaudited):

 

   Year Ended   Year Ended 
   September 30, 2022   September 30, 2021 
Revenue  $197,590,000   $122,465,826 
           
Cost of revenues   175,219,252    109,544,804 
           
Gross profit   22,370,748    12,921,022 
           
Selling and administrative expenses   15,878,138    13,813,644 
Income (loss) from operations   6,492,610    (892,622)
           
Other income (expense)          
Interest income   576    286,645 
Paycheck Protection Program loan forgiveness   -    9,839,100 
Other nonoperating expense   (248,006)   (311,830)
Interest expense   (887,931)   (534,820)
Gain on sale of equipment   755,470    681,653 
    (379,891)   9,960,748 
Income before income taxes   6,112,719    9,068,126 
           
Income tax expense (benefit)   2,262,646    (29,129)
           
Net income   3,850,073    9,097,255 
           
Dividends on preferred stock   -    284,238 
           
Net income available to common shareholders  $3,850,073   $8,813,017 
           
Weighted average shares outstanding-basic   16,323,790    13,621,406 
           
Weighted average shares-diluted   16,323,790    16,988,424 
           
Earnings per share available to common shareholders  $0.24   $0.65 
           
Earnings per share-diluted available to common shareholders  $0.24   $0.52 

 

 

 

 

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

 

   Year Ended   Year Ended 
   September 30, 2022   September 30, 2021 
Net income available to common shareholders  $3,850,073   $8,813,017 
           
Add: Income tax expense (benefit)   2,262,646    (29,129)
           
Add: Dividends on preferred stock   -    284,238 
           
Add:Interest expense   887,931    557,320 
           
Less: Non-operating income   (508,040)   (10,518,068)
           
Add: Depreciation and amortization expense   6,013,494    4,661,789 
           
Adjusted EBITDA  $12,506,104   $3,769,167 

 

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 reasons for the use of these measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and other information relating to these measures are included herein. 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. 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

 

Contact: Douglas Reynolds, President

(304)-522-3868