Energy Services of America Corporation (ESOA) FY Conference Transcript

Summary of Energy Services of America Corporation (ESOA) FY Conference Call Company Overview - Company Name: Energy Services of America Corporation (ESOA) - Ticker: ESOA - Industry: General contracting and construction, HVAC electrical work - Primary Region: Appalachian region - Revenue: $352 million in the last fiscal year - Adjusted EBITDA: $29 million [5][6] Core Business Segments - Natural Gas and Petroleum Transmission: Main focus area - Water and Natural Gas Distribution: Significant operations - Industrial Services: Involves power, automotive, chemical, and steel manufacturing [3][4] Financial Performance - Employee Count: Approximately 1,400 employees [6] - Backlog: Increased to $304 million as of June, with $125 million in water services and $100 million in industrial services [7][43] - Quarterly Dividend: $0.03 per share [10][48] Growth Strategies - Geographical Expansion: Active in expanding reach, particularly in Michigan and other states based on customer demand [8][11] - Mergers and Acquisitions: Completed four acquisitions to enhance service offerings and geographical presence [9][12] - Diversification: Shifted focus from solely gas transmission to include water distribution and industrial services to mitigate risks [15][16] Customer Relationships - Key Customers: American Water, Toyota, Mountaineer Gas, Dow, and TC Energy [12][13] - Importance of Relationships: Strong customer relationships are crucial for securing contracts and expanding operations [7][11] Safety and Operational Focus - Safety as a Core Value: Emphasis on safety to maintain customer trust and employee well-being [36][37] - Quality Production: Aiming for high standards in service delivery to ensure shareholder returns [38] Market Outlook - Future Opportunities: Anticipation of growth in water distribution services due to aging infrastructure and increasing demand for clean water [42][43] - Challenges: Weather-related disruptions and customer spending delays have impacted profitability [46][47] Capital Allocation and Stock Management - Active in Acquisitions: Continues to seek acquisition opportunities to enhance service capabilities [47] - Stock Repurchase Plan: Approximately 786,000 shares remaining for repurchase [48] Conclusion - Overall Sentiment: Optimistic about future growth despite recent challenges, with a focus on diversifying services and maintaining strong customer relationships [44][45]