Form 8-K Energy Services of Ameri For: Dec 10

 

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): December 10, 2019

 

Energy Services of America Corporation

(Exact Name of Registrant as Specified in its Charter)

 

Delaware (State or other Jurisdiction of Incorporation)

001-32998 (Commission File Number)

20-4606266 (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
Not Applicable	Not Applicable	Not Applicable

 

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 December 10, 2019, Energy Services of America Corporation (the “Company”) issued a press release disclosing its results of operations and financial condition at and for the twelve months ended September 30, 2019.

 

A copy of the press release dated December 10, 2019 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 December 10, 2019

 

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:  December 10, 2019	By:	/s/ Charles Crimmel
		Charles Crimmel
		Chief Financial Officer

 

 

 

Exhibit 99.1

 

ENERGY SERVICES OF AMERICA RELEASES EARNINGS FOR FISCAL YEAR 2019

 

Huntington, WV   December 10, 2019-  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 that net income available to common shareholders was $1.7 million for the fiscal year ended September 30, 2019, which was a $516,000 decrease from $2.2 million in fiscal year 2018. Revenues were $174.5 million for the fiscal year ended September 30, 2019, which was a $39.0 million increase from $135.5 million in fiscal year 2018. The Company projects an adjusted EBITDA of $8.0 million, or $0.57 per share, and earnings per share of $0.12 on a weighted average of 14,064,871 common shares outstanding for fiscal year 2019. The projected backlog at September 30, 2019 was $63.0 million.

 

Douglas Reynolds, President, commented on the announcement. “The past couple years have been tough in the pipeline industry in our region. We started a twenty-mile pipeline project in northern West Virginia in June 2018 that we successfully completed in September 2019. While that project primarily contributed to our increased revenues for fiscal year 2019, we had to navigate significant obstacles to minimize the loss and maintain a cash positive position on the project. In the end, it was the diversity of the services that we provide that allowed us to overcome those challenges.”

 

Below is a comparison of the Company’s unaudited operating results for fiscal year 2019 compared to fiscal year 2018:

 

		Year Ended				Year Ended
		September 30, 2019				September 30, 2018
Revenue		$	174,541,155			$	135,482,771
Cost of revenues			161,861,357				123,833,517
Gross profit			12,679,798				11,649,254
Selling and administrative expenses			8,857,386				7,728,182
Income from operations			3,822,412				3,921,072
Other income (expense)
Interest income			58,023				132,342
Other nonoperating expense			(112,814	)			(174,576	)
Interest expense			(1,064,222	)			(916,675	)
Gain on sale of equipment			258,082				456,894
			(860,931	)			(502,015	)
Income before income taxes			2,961,481				3,419,057
Income tax expense			968,571				910,034
Net income			1,992,910				2,509,023
Dividends on preferred stock			309,000				309,000
Net income available to common shareholders		$	1,683,910			$	2,200,023
Weighted average shares outstanding-basic			14,064,871				14,234,571
Weighted average shares-diluted			17,498,204				17,667,904
Earnings per share
available to common shareholders		$	0.120			$	0.155
Earnings per share-diluted
available to common shareholders		$	0.096			$	0.125

 

 

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

 

		2019				2018
Net income available to
common shareholders		$	1,683,910			$	2,200,023
Add: Income tax expense			968,571				910,034
Add: Dividends on preferred stock			309,000				309,000
Add:  Interest expense			1,064,222				916,675
Less: Non-operating income			(203,291	)			(414,660	)
Add: Depreciation expense			4,157,849				4,209,056
Adjusted EBITDA		$	7,980,261			$	8,130,128
Weighted average shares outstanding-basic			14,064,871				14,234,571
Adjusted EBITDA per common share		$	0.57			$	0.57

 

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.

 

Source: Energy Services of America Corporation

 

Contact: Douglas Reynolds, President

(304)-522-3868

 

 

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