Revenue Performance - Revenue for the three months ended June 30, 2019, was $40,187,978, a 36% increase from $29,549,659 in the same period of 2018[14] - Total revenue reported for the nine months ended June 30, 2019, was $136,257,561[33] - Total revenues increased by $10.7 million or 36.0% to $40.2 million for the three months ended June 30, 2019, compared to $29.5 million for the same period in 2018[90] - Total revenues increased by $51.1 million or 59.9% to $136.3 million for the nine months ended June 30, 2019, compared to $85.2 million for the same period in 2018[91] - Revenue from contracts in progress for the three months ended June 30, 2019, was $33,337,654[32] - Total revenue from contracts for the three months ended June 30, 2019, was $40,187,978[32] - Revenue from unit price contracts for the three months ended June 30, 2019, was $24,895,357[32] Profitability - Net income for the three months ended June 30, 2019, was $485,757, down from $1,096,267 in the same period of 2018, representing a decrease of 55.8%[14] - Net income for 2019 was a loss of $7,317 compared to a profit of $297,192 in 2018, indicating a significant decline in profitability[18] - Net income available to common shareholders for the three months ended June 30, 2019 was $409,000 compared to $1.0 million for the same period in 2018[105] - Income before income taxes was $942,000 for the three months ended June 30, 2019, compared to $1.4 million for the same period in 2018[101] - The effective income tax rate for the three months ended June 30, 2019 was 48.4%, compared to 20.1% for the same period in 2018[103] Expenses - Selling and administrative expenses for the three months ended June 30, 2019, were $2,021,359, up from $1,773,304 in the same period of 2018, reflecting a 14% increase[14] - Total cost of revenues increased by $10.7 million or 41.2% to $36.9 million for the three months ended June 30, 2019, compared to $26.2 million for the same period in 2018[92] - Total gross profit decreased by $132,000 or 3.9% to $3.3 million for the three months ended June 30, 2019, compared to $3.4 million for the same period in 2018[94] - Interest expense increased by $140,000 or 73.5% to $331,000 for the three months ended June 30, 2019, compared to $191,000 for the same period in 2018[98] Assets and Liabilities - Total current assets increased to $45,919,788 as of June 30, 2019, from $37,865,401 as of September 30, 2018, marking a 21.5% growth[12] - Total assets increased to $62,550,552 as of June 30, 2019, from $54,681,390 as of September 30, 2018, representing a growth of 14.4%[12] - Total liabilities rose to $39,798,967 as of June 30, 2019, compared to $31,400,343 as of September 30, 2018, indicating a 27% increase[12] - Long-term debt, less current maturities, increased to $12,935,086 as of June 30, 2019, from $6,468,630 as of September 30, 2018, a significant rise of 99.1%[12] - Total current liabilities were $25,437,000, indicating a significant portion of the company's obligations[30] Cash Flow - Net cash used in operating activities was $(391,354) in 2019, a stark contrast to $12,879,075 provided in 2018[18] - Cash flows from investing activities showed a net cash outflow of $(2,340,439) in 2019, compared to $(936,096) in 2018, reflecting increased investment activity[18] - Cash flows from financing activities provided $4,812,542 in 2019, a recovery from $(9,266,006) used in 2018, primarily due to increased borrowings[18] - Total cash and cash equivalents at the end of the period decreased to $3,146,299 in 2019 from $4,352,498 in 2018[18] Shareholder Equity - The balance of total shareholders' equity as of June 30, 2019, was $22,751,585, a decrease from $23,281,047 as of September 30, 2018[21] - Shareholders' equity decreased to $22.8 million, down $529,000 from $23.3 million at the prior fiscal year end[109] Customer and Market Information - Major customers include Goff Full Stream, Mountaineer Gas, and TransCanada Corporation, indicating a strong client base in the energy sector[80] - One customer, Goff Full Stream Interconnect, represented 35.8% of revenues for the nine months ended June 30, 2019[131] - The Company operates primarily in the mid-Atlantic region of the United States, servicing industries such as gas, petroleum, power, chemical, and automotive[75] Legal and Compliance - The company is seeking $6.9 million in a lawsuit against a former customer, which has not been recognized in the financial statements[133] - The company does not believe that any ongoing legal proceedings will have a material adverse effect on its financial position as of June 30, 2019[163] - The Company was in compliance with all covenants for the $12.5 million component of Operating Line of Credit (2019) as of June 30, 2019[67] Stock Repurchase - During the three months ended June 30, 2019, Energy Services of America Corporation repurchased a total of 256,073 shares at an average price of $1.13 per share[167] - The stock repurchase program authorized by the Board of Directors allows for the repurchase of up to 10% of the company's issued and outstanding stock, approximately 1,423,984 shares, set to expire on August 15, 2019[167] - As of the end of June 2019, the maximum number of shares that may yet be purchased under the repurchase plans is 1,122,592 shares[167]
Energy Services of America (ESOA) - 2019 Q3 - Quarterly Report