Energy Services of America Corp Reports Record First Fiscal Quarter Earnings
Net Income: Increased to $2.0 million from $138,374 in the previous year.
Revenue: Rose significantly to $90.2 million, up from $60.0 million year-over-year.
Adjusted EBITDA: Reached $5.8 million, a substantial increase from $2.6 million.
Earnings Per Share (EPS): Improved to $0.12, both basic and diluted, compared to $0.01.
Backlog: Reported at $185.9 million, though slightly down from $206.9 million the previous year.
On February 12, 2024, Energy Services of America Corp (NASDAQ:ESOA) released its 8-K filing, announcing a remarkable start to its fiscal year with the best first fiscal quarter in the company's history. The company, which provides contracting services for energy-related companies, including the construction and repair of natural gas pipelines, reported a significant increase in net income to $2.0 million for the three months ended December 31, 2023, up from a modest $138,374 in the same period the previous year.
Financial Performance Highlights
Energy Services of America Corp's revenue for the quarter stood at $90.2 million, a notable increase from $60.0 million reported in the prior year's comparable period. This increase in revenue reflects the company's robust growth and the demand for its services in the mid-Atlantic and Central regions of the United States. The gross profit followed suit, reaching $10.8 million, nearly doubling from $6.0 million year-over-year.
The company's adjusted EBITDA, a key metric used to assess the company's operational efficiency and cash generation ability, also saw a significant jump to $5.8 million from $2.6 million in the previous year. This improvement underscores the company's enhanced profitability and operational effectiveness.
Despite the impressive top-line growth and profitability, the company did report a slight decrease in its backlog, which stood at $185.9 million, down from $206.9 million at the end of the previous year. This metric is crucial as it represents the company's future revenue and is a strong indicator of the company's pipeline of projects.
Management Commentary
Douglas Reynolds, President of Energy Services of America Corp, expressed his satisfaction with the results, stating:
"The financial results for the three months ended December 31, 2023 mark the best first fiscal quarter in the history of Energy Services. We continue to be impressed by our employees performance and are excited about the construction opportunities being received."
Reynolds also highlighted the company's positive outlook for the fiscal year 2024, emphasizing the commitment to providing superior services to customers and maximizing shareholder value.
Financial Table Summary
The company's income statement reflects the strong performance with a detailed breakdown of the revenue and expenses:
Description | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 |
|---|---|---|
Revenue | $90,163,187 | $60,042,585 |
Net Income | $2,042,195 | $138,374 |
Earnings Per Share | $0.12 | $0.01 |
Adjusted EBITDA | $5,816,862 | $2,565,226 |
Company's Outlook and Industry Position
Energy Services of America Corp's impressive financial performance is a testament to its strong position in the construction industry, particularly in the energy sector. The company's ability to generate higher revenue and maintain a substantial backlog, despite a slight year-over-year decrease, indicates a steady demand for its services. The increased net income and adjusted EBITDA highlight the company's efficiency in managing its operations and profitability.
The company's focus on safety, quality, and production, coupled with its commitment to customer service, positions it well for continued growth and success in the competitive energy services market. With a solid start to the fiscal year, Energy Services of America Corp appears poised to capitalize on the construction opportunities ahead, which should be of particular interest to value investors and potential GuruFocus.com members seeking well-performing stocks in the energy services sector.
For more detailed information and analysis on Energy Services of America Corp's financial performance, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Energy Services of America Corp for further details.
This article first appeared on GuruFocus.
