Business
Energy Services Of America Announces Financial Results
HUNTINGTON, W.V., Dec. 11, 2020 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTC QB: ESOA), parent company of
About this update from Energy Services Of America Corporation
[{"type":"text","content":"HUNTINGTON, W.V., Dec. 11, 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 fiscal year ended September 30, 2020. Energy Services earned revenues of $119.2 million with an income before tax of $3.6 million for fiscal year 2020. The Company's income tax expense was $3.8 million, of which $2.7 million related to non-deductible Paycheck Protection Program (PPP) qualified expenses resulting in a net loss available to common shareholders of ($533,000) for the fiscal year 2020. The Company had adjusted EBITDA of $8.1 million for fiscal year ended September 30, 2020. \nIn April 2020, due to the uncertain economic impact of the COVID-19 pandemic, the Company borrowed $9.8 million in PPP funds. The Company believed applying for the PPP funds was necessary to ensure its continued operations as an essential business. The entirety of the $9.8 million was spent on qualified PPP expenses in fiscal year 2020 and the Company is in the process of filing for loan forgiveness with its lender. Recent Internal Revenue Service guidelines note that qualified PPP expenses are not tax deductible in the tax year spent for loan recipients that believe forgiveness is \"reasonably certain\", but not yet received. Due to these guidelines, the Company recognized an additional $2.7 million in tax expense related to the PPP qualified expenses. \nDouglas Reynolds, President, commented on the announcement. \"The COVID-19 pandemic had a significant effect on fiscal year 2020 as the uncertain environment led many of our customers to suspend or cancel projects. When coupled with depressed demand for new transmission pipeline projects, this led to a $55.3 million revenue decrease in fiscal year 2020 compared to 2019.\" Reynolds continued, \"In spite of these challenges, our dedicated workforce operated efficiently during this period and I appreciate their continued efforts. More recently, we have seen a modest improvement in bidding opportunities for calendar year 2021 and had a backlog of $63.8 million at September 30, 2020.\" \nBelow is a comparison of the Company's unaudited operating results for fiscal years ended September 30, 2020 and 2019: \nYear Ended\nYear Ended\nSeptember ...