EES Announces Strong Second Quarter Results

EES Announces Strong Second Quarter Results

Oklahoma City, OK, August 15, 2022 /PRNewswire/ -- Energy and Environmental Services, Inc. (OTC: EESE) today announced its unaudited financial results for the second quarter ended June 30, 2022.

“Our Second Quarter 2022 results are a testament to our people and products,” said CEO Leon Joyce. “The industry downturn in 2020 and 2021 was difficult. But we retained staff and inventory levels. Now that the industry has rebounded, we believe we have the people and products to meet industry needs.” added Joyce.

Second Quarter 2022 Financial Highlights

• Sales revenues increased $1,783,500 or 53.4% from $3,339,200 for the Second Quarter 2021 to $5,122,700 in the Second Quarter 2022. Our gross profit was up $1,240,000 or 57.9% from $2,140,500 in the Second Quarter 2021 to $3,380,500 in the Second Quarter 2022.
• Operating expenses increased by only $259,800 or 14.2% from $1,827,800 in the Second Quarter 2021 to $2,087,600 in the Second Quarter 2022, which reflects a proportionate drop in selling and general and administrative costs. The proportionate drop was attributable to our excess capacity during the industry downturn in 2020 and 2021.

• EBITDA was $1,315,900 for the Second Quarter 2022 compared to $1,142,200) for the Second Quarter 2021. EBITDA for the Second Quarter 2021 included $787,000 in non-recurring payroll protection loan forgiveness.
• Net income for the Second Quarter 2022 was $1,014,500 versus net income of $914,100 in the Second Quarter 2021, which included the $787,000 in non-recurring payroll protection loan forgiveness.

Six Months 2022 Financial Highlights

Our results for the Six Months 2022 matched the strong results for the Second Quarter 2022.

• Sales revenues increased $3,606,300 or 60.9% from $5,917,000 for the Six Months 2021 to $9,523,300 in the Six Months 2022. Our gross profit was up $2,112,700 or 56.9% from $3,718,000 in the Six Months 2021 to $5,830,700 in the Six Months 2022.
• Operating expenses increased only $630,500 or 18.5% from $3,413,300 in the Six Months 2021 to $4,043,800 in the Six Months 2022.
• EBITDA was $1,866,300 for the Six Months 2022 compared to $1,136,600) for the Six Months 2021. EBITDA for the Six Months 2021 included $787,000 in non-recurring payroll protection loan forgiveness.
• Net income for the Six Months 2022 was $1,280,000 versus net income of $681,000 in the Six Months 2021, which included the $787,000 in non-recurring payroll protection loan forgiveness.

• Capital Resources and Outlook

Our balance sheet remains relatively strong, despite the losses incurred in the 2020 and 2021 industry downturn. As of June 30, 2022, we had working capital of $6,058,300 versus working capital of $4,750,500 for December 31, 2021. In the Six Months 2022, our operations provided cash of $490,200 versus cash used in operations $734,500 during the Six Months 2021.

The oil and gas industry is resurging in 2022, and we are hopeful this upward trend will continue. We believe capital expenditures by exploration companies will likely continue or strengthen through the rest of 2022. These developments could lead to increased sales and improved margins for our oil and gas products and services. We anticipate improvement in our results of operations during the remainder of 2022.

About EES

Energy and Environmental Services, Inc. (OTC: EESE) based in Edmond, Oklahoma, participates in the oilfield chemical, anti-corrosive coatings and biotech industries. EES was established in 1991 and management has over 200 years of combined experience in blending, manufacturing and packaging custom liquids and solid chemicals for the oil and gas, farm and ranch, and agricultural industries. Additionally, EES has expanded to manufacture coated oil and gas pump barrels, OMRI-certified liquid fertilizer, and other products and applications for specialized anti-corrosive coatings, and enzyme system technologies. Please visit the company's website at www.eesokc.com.

Contact:
Leon Joyce 800-635-7716
[email protected]

Safe Harbor for Forward-Looking Statements

Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Energy and Environmental Services actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Energy and Environmental Services expressly disclaims any intent or obligation to update any forward-looking statements.