PR Newswire | Aug 16, 2021 09:01AM EDT

Months Ended June 30, 2021

08/16 08:00 CDT

Energy Services of America Announces Financial Results for the Three and Nine Months Ended June 30, 2021 HUNTINGTON, W.Va., Aug. 16, 2021

HUNTINGTON, W.Va., Aug. 16, 2021 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTC QB: ESOA) announced financial results for the three and nine months ended June 30, 2021. Energy Services generated revenues of $25.3 million and $82.9 million for the three and nine months ended June 30, 2021, respectively. Net income available to common shareholders was $9.2 million and $7.1 million with an adjusted EBITDA of $731,626 and $264,309 for the three and nine months ended June 30, 2021, respectively. Forgiveness on PPP loans accounted for $9.8 million in nonoperating income for the three and nine months ended June 30, 2021. Gross profit percentage increased from 9.2% to 10.7% and from 7.0% to 9.0% for the three and nine months ended June 30, 2021, as compared to 2020, respectively.

Douglas Reynolds, President, commented on the announcement. "Our increased focus on both organic and inorganic growth in gas and water distribution services led to year-over-year improvement in revenue and gross profit in these areas when compared to the same periods in 2020. However, offsetting these gains, we saw a decrease in the demand for our gas and petroleum transmission services due to fewer transmission projects available to bid along with greater competition." Reynolds continued, "We expect our efforts to increase distribution revenues and profit along with modest improvement in transmission awards and expanded electrical, mechanical, and general construction services to result in improved results in our fiscal fourth quarter. Our backlog at June 30, 2021, was $73.1 million as compared to $61.2 million at March 31, 2021, with an additional $13.0 million in general construction contracts awarded subsequent to June 30, 2021."

Below is a comparison of the Company's unaudited operating results for the three and nine months ended June 30, 2021, and 2020:

Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended

June 30, June 30, June 30, June 30,

2021 2020 2021 2020

Revenue $ 25,285,951 $ 30,762,725 $ 82,901,159 $ 74,678,432

Cost of revenues 22,580,340 27,936,548 75,478,966 69,425,044

Gross profit 2,705,611 2,826,177 7,422,193 5,253,388

Selling and administrative expenses 3,207,864 2,532,141 10,627,607 7,473,422

(Loss) income from operations (502,253) 294,036 (3,205,414) (2,220,034)

Other nonoperating income (expense)

Interest income 108 83 151,877 53,332

PPP loan forgiveness 9,799,100 - 9,799,100 -

Other nonoperating expense (35,833) (53,793) (121,343) (130,472)

Interest expense (136,995) (101,335) (356,505) (400,197)

Gain on sale of equipment 135,269 43,296 627,580 563,062

9,761,649 (111,749) 10,100,709 85,725

Income (loss) before income taxes 9,259,396 182,287 6,895,295 (2,134,309)

Income tax (benefit) expense (53,844) 200,242 (458,812) (347,629)

Net income (loss) 9,313,240 (17,955) 7,354,107 (1,786,680)

Dividends on preferred stock 77,250 77,250 231,750 231,750

Income (loss) available to common shareholders $ 9,235,990 $ (95,205) $ 7,122,357 $ (2,018,430)

Weighted average shares outstanding-basic 13,621,406 13,627,293 13,621,406 13,844,340

Weighted average shares-diluted 17,089,722 13,627,293 17,089,722 13,844,340

Earnings (loss) per share

available to common shareholders $ 0.678 $ (0.007) $ 0.523 $ (0.146)

Earnings (loss) per share-diluted

available to common shareholders $ 0.540 $ (0.007) $ 0.417 $ (0.146)

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

Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Unaudited Unaudited Unaudited Unaudited

Net income (loss) available to

common shareholders $ 9,235,990 $ (95,205) $ 7,122,357 $ (2,018,430)

Less: Income tax (benefit) expense (53,844) 200,242 (458,812) (347,629)

Add: Dividends on preferred stock 77,250 77,250 231,750 231,750

Add: Interest expense 136,995 101,335 356,505 400,197

Less: Non-operating (income) expense (9,898,644) 10,414 (10,457,214) (485,922)

Add: Depreciation expense 1,233,879 1,097,750 3,469,723 3,315,541

Adjusted EBITDA $ 731,626 $ 1,391,786 $ 264,309 $ 1,095,507

Certain statements contained in the release, including without limitation statements including 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 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.

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SOURCE Energy Services of America