Revenue and Income - Total revenue for the three months ended December 31, 2022, was $60,042,585, an increase of $17,383,460 or 40.7% compared to $42,659,125 for the same period in 2021[104] - Gas & Petroleum Transmission revenues increased by $5,601,633 or 49.8% to $16,840,150 for the three months ended December 31, 2022, compared to $11,238,517 for the same period in 2021[105] - Electrical, Mechanical, and General construction services revenues rose by $11,256,016 or 57.8% to $30,714,590 for the three months ended December 31, 2022, compared to $19,458,574 for the same period in 2021[105] - Net income for the three months ended December 31, 2022, was $163,518, a decrease of $1,007,462 or 85.0% compared to $1,170,980 for the same period in 2021[104] - Earnings per share-basic for the three months ended December 31, 2022, was $0.01, down from $0.07 for the same period in 2021[104] Costs and Expenses - Total cost of revenues increased by $16,705,571 or 44.7% to $54,056,323 for the three months ended December 31, 2022, compared to $37,350,752 for the same period in 2021[110] - Electrical, Mechanical, & General construction services cost of revenues increased by $10.9 million to $29.0 million for the three months ended December 31, 2022, compared to $18.1 million for the same period in 2021[113] - Selling and administrative expenses increased by $1.7 million to $5.3 million for the three months ended December 31, 2022, compared to $3.6 million for the same period in 2021[119] - The Company recorded rental expenses of $2.7 million for the three months ended December 31, 2022, compared to $1.9 million for the same period in 2021[162] Profitability - The Company experienced a gross profit of $5,986,262 for the three months ended December 31, 2022, compared to $5,308,373 for the same period in 2021, reflecting an increase of $677,889 or 12.8%[104] - Total gross profit increased by $678,000 to $6.0 million for the three months ended December 31, 2022, compared to $5.3 million for the same period in 2021, with a gross profit percentage of 10.0%[115] - Gas & Petroleum Transmission gross profit rose by $1.3 million to $2.8 million for the three months ended December 31, 2022, compared to $1.5 million for the same period in 2021, reflecting an 87.1% increase[117] Assets and Liabilities - Total assets decreased by $4.7 million to $107.9 million at December 31, 2022, compared to $112.6 million at the prior fiscal year end[126] - Accounts receivable decreased by $3.2 million to $35.3 million at December 31, 2022, compared to $38.5 million at the prior fiscal year end[127] - The Company had total liabilities of $69.4 million at December 31, 2022, a decrease of $4.9 million from the prior fiscal year end balance of $74.3 million[135] - Long-term debt increased by $1.5 million to $19.0 million at December 31, 2022, primarily due to $3.2 million in new debt agreements[140] Cash Flow and Financing - Cash and cash equivalents totaled $7.5 million at December 31, 2022, an increase of $103,000 from the prior fiscal year end balance of $7.4 million[134] - The Company entered into a 10-year loan agreement of $1.1 million with United Bank, with a variable interest rate of 8.75% as of December 31, 2022, and has made principal payments of $746,000[149] - The Company has a $3.0 million Non-Revolving Note agreement with United Bank, with monthly payments of $68,150 starting in February 2022, and has made principal payments of $609,000 as of December 31, 2022[151] - A $3.5 million Non-Revolving Note agreement was established to repay a line of credit for the West Virginia Pipeline acquisition, with monthly payments of $64,853 and principal payments of $1.1 million made as of December 31, 2022[152] - The Company financed the purchase of Tri-State Paving with a $7.5 million Non-Revolving Note agreement, with monthly payments of $129,910 and principal payments of $834,000 made as of December 31, 2022[153] - A $3.1 million promissory note agreement was entered into for equipment purchased in the Ryan Construction acquisition, with monthly payments of $59,932 and principal payments of $89,000 made as of December 31, 2022[154] Tax and Deferred Income - The effective tax rate for the Company was (94.9%) for the three months ended December 31, 2022, compared to 29.7% for the same period in 2021[202] - The Company had a net deferred income tax liability of $4.0 million as of December 31, 2022, down from $4.5 million at September 30, 2022[203] Backlog and Opportunities - The Company's backlog as of December 31, 2022, was $206.9 million, a significant increase from $101.6 million at December 31, 2021, and $142.3 million at September 30, 2022[210] - The Company is experiencing a significant increase in bid opportunities for natural gas transmission and distribution projects, as well as electrical, mechanical, and general construction projects[210] Other Financial Information - The Company approved a special cash dividend of $0.05 per common share, payable on February 15, 2023, to shareholders of record as of January 31, 2023[207] - The Company's line of credit was increased from $15.0 million to $30.0 million, with a maturity date of June 28, 2023, and a variable interest rate based on the "Wall Street Journal" Prime Rate with a floor of 4.5%[207] - The Company recorded costs incurred on contracts in progress of $110,656,030 as of December 31, 2022, down from $192,957,145 as of September 30, 2022[187] - Estimated earnings, net of estimated losses, decreased to $16,806,651 as of December 31, 2022, from $28,150,060 as of September 30, 2022[187] - The Company's depreciation expense for the three months ended December 31, 2022, was $1.8 million, compared to $1.3 million for the same period in 2021[198] - The Company's intangible amortization expense for the three months ended December 31, 2022, was $133,000, up from $119,000 in the same period of 2021[199] - The allowance for doubtful accounts decreased to $55,538 at December 31, 2022, from $70,310 at the beginning of the year[190] - The Company did not experience significant effects from inflation on its results for the three months ended December 31, 2022[179] - At December 31, 2022, the Company had $79.0 million in performance bonds outstanding, which are essential for securing future contracts[166] - The Company was awarded $13.1 million in a lawsuit judgment related to a pipeline construction project, although this amount has not been recognized in the financial statements as of December 31, 2022[169] - The Company entered into a 36-month operating lease for facilities in Hurricane, West Virginia, with monthly payments of $7,000, resulting in a total net present value of $236,000 at inception[175] - SQP made an equity investment of $156,000 in 1030 Quarrier Development, LLC, which is expected to generate rental income upon completion of a commercial project[176] - The Company does not expect a significant impact from the new accounting standards ASU 2021-08 and ASU 2021-10 on its results of operations, financial position, and cash flows[204][205]
Energy Services of America (ESOA) - 2023 Q1 - Quarterly Report