PR Newswire | Aug 14, 2020 10:30AM EDT

08/14 09:30 CDT

Energy Services of America Announces Financial Results HUNTINGTON, W.Va., Aug. 14, 2020

HUNTINGTON, W.Va., Aug. 14, 2020 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTC QB: ESOA), parent company of C.J. Hughes Construction Company and Nitro Construction Services, announced financial results for the three and nine months ended June 30, 2020. Energy Services earned revenues of $30.8 million and $74.7 million for the three and nine months ended June 30, 2020, respectively. Net loss available to common shareholders was ($95,000) and ($2.0) million for the three and nine months ended June 30, 2020, respectively. The Company had adjusted EBITDA of $1.4 million ($0.10 per share) and $1.1 million ($0.08 per share) for the three and nine months ended June 30, 2020, respectively. The backlog at June 30, 2020 was $69.8 million.

Douglas Reynolds, President, commented on the announcement. "The COVID-19 pandemic had a significant effect on the three months ended June 30, 2020. However, many of our customers have continued with projects and we are receiving new bid opportunities. Also, our employee count at June 30, 2020 was higher compared to March 31, 2020." Reynolds continued, "While we are seeing positive signs, we could see a significant impact in the fourth quarter of fiscal year if there is a worsening of the pandemic."

Below is a comparison of the Company's unaudited operating results for the three and nine months ended June 30, 2020 and 2019:

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

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

2020 2019 2020 2019

Revenue $ 30,762,725 $ 40,187,978 $ 74,678,432 $ 136,257,561

Cost of revenues 27,936,548 36,936,926 69,425,044 128,580,270

Gross profit 2,826,177 3,251,052 5,253,388 7,677,291

Selling andadministrative 2,532,141 2,021,359 7,473,422 6,790,032expenses

Income (loss) 294,036 1,229,693 (2,220,034) 887,259 from operations

Other income(expense)

Interest income 83 - 53,332 58,023

Other nonoperating (53,793) (25,736) (130,472) (79,312) expense

Interest expense (101,335) (331,067) (400,197) (744,541)

Gain on sale of 43,296 68,672 563,062 206,241 equipment

(111,749) (288,131) 85,725 (559,589)

Income (loss) before income 182,287 941,562 (2,134,309) 327,670 taxes

Income tax 200,242 455,805 (347,629) 334,987 expense (benefit)

Net (loss) income (17,955) 485,757 (1,786,680) (7,317)

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

Net (loss) incomeavailable to $ (95,205) $ 408,507 $ (2,018,430) $ (239,067)commonshareholders

Weighted average shares 13,627,293 13,985,579 13,844,340 14,080,299 outstanding-basic

Weighted average 13,627,293 17,418,912 13,844,340 14,080,299 shares-diluted

(Loss) earnings per share

available to common $ (0.007) $ 0.029 $ (0.146) $ (0.017) shareholders

(Loss) earnings per share-diluted

available to common $ (0.007) $ 0.023 $ (0.146) $ (0.017) shareholders

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

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

June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019

Unaudited Unaudited Unaudited Unaudited

Net (loss)incomeavailable to

common $ (95,205) $ 408,507 $ (2,018,430) $ (239,067)shareholders

Add: Incometax benefit 200,242 455,805 (347,629) 334,987(expense)

Add:Dividends on 77,250 77,250 231,750 231,750preferredstock

Add: Interest 101,335 331,067 400,197 744,541expense

Less:Non-operating 10,414 (42,936) (485,922) (184,952)expense(income)

Add:Depreciation 1,097,750 1,073,387 3,315,541 3,187,733expense

Adjusted $ 1,391,786 $ 2,303,080 $ 1,095,507 $ 4,074,992EBITDA

Common shares 13,627,293 13,985,579 13,844,340 14,080,299outstanding

AdjustedEBITDA per $ 0.10 $ 0.16 $ 0.08 $ 0.29common share

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 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 Corporation