Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Energy Services of America CORP | |
Entity Central Index Key | 1,357,971 | |
Trading Symbol | esoa | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,239,836 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 2,841,953 | $ 1,663,222 |
Accounts receivable-trade | 12,146,234 | 23,140,272 |
Allowance for doubtful accounts | (108,771) | (108,200) |
Retainages receivable | 1,354,679 | 3,773,892 |
Other receivables | 98,701 | 96,242 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 5,697,269 | 5,350,884 |
Prepaid expenses and other | 5,072,833 | 4,044,731 |
Assets of discontinued operations | 12,303 | 12,303 |
Total current assets | 27,115,201 | 37,973,346 |
Property, plant and equipment, at cost | 47,609,657 | 48,436,122 |
less accumulated depreciation | (29,616,656) | (29,243,614) |
Total fixed assets | 17,993,001 | 19,192,508 |
Long-term notes receivable | 137,281 | 137,281 |
Total assets | 45,245,483 | 57,303,135 |
Current liabilities | ||
Current maturities of long-term debt | 4,470,279 | 4,562,918 |
Lines of credit and short term borrowings | 4,859,188 | 9,432,968 |
Accounts payable | 2,887,144 | 5,522,143 |
Accrued expenses and other current liabilities | 2,524,304 | 4,302,611 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 2,667,983 | 2,173,965 |
Liabilities of discontinued operations | 28,671 | 28,671 |
Total current liabilities | 17,437,569 | 26,023,276 |
Long-term debt, less current maturities | 7,504,712 | 9,702,483 |
Deferred income taxes payable | 125,958 | 446,557 |
Total liabilities | 25,068,239 | 36,172,316 |
Shareholders' equity | ||
Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued for March 31, 2018 and September 30, 2017 | ||
Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 14,239,836 outstanding for March 31, 2018 shares and September 30, 2017 | 1,484 | 1,484 |
Treasury stock, 600,000 shares at March 31, 2018 and September 30, 2017 | (60) | (60) |
Additional paid in capital | 61,289,260 | 61,289,260 |
Retained earnings (deficit) | (41,113,440) | (40,159,865) |
Total shareholders' equity | 20,177,244 | 21,130,819 |
Total liabilities and shareholders' equity | $ 45,245,483 | $ 57,303,135 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2018 | Sep. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 206 | 206 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 14,839,836 | 14,839,836 |
Common stock, shares outstanding | 14,239,836 | 14,239,836 |
Treasury stock, shares | 600,000 | 600,000 |
Consolidated Statements of Inco
Consolidated Statements of Income Unaudited - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 23,093,033 | $ 25,371,605 | $ 55,640,636 | $ 62,868,477 |
Cost of revenues | 22,036,935 | 23,859,453 | 52,609,084 | 56,671,538 |
Gross profit | 1,056,098 | 1,512,152 | 3,031,552 | 6,196,939 |
Selling and administrative expenses | 1,956,356 | 1,939,278 | 3,965,447 | 4,134,888 |
Income (loss) from operations | (900,258) | (427,126) | (933,895) | 2,062,051 |
Other income (expense) | ||||
Interest income | 61 | 132,342 | ||
Other nonoperating expense | (47,023) | (40,231) | (102,147) | (111,660) |
Interest expense | (243,708) | (143,546) | (539,552) | (374,515) |
Gain on sale of equipment | 19,670 | 41,841 | 388,375 | 68,831 |
Other income (expense), Total | (271,000) | (141,936) | (120,982) | (417,344) |
Income (loss) before income taxes | (1,171,258) | (569,062) | (1,054,877) | 1,644,707 |
Income tax expense (benefit) | (223,683) | (256,523) | (255,802) | 718,589 |
Net income (loss) | (947,575) | (312,539) | (799,075) | 926,118 |
Dividends on preferred stock | 77,250 | 77,250 | 154,500 | 154,500 |
Net income (loss) available to common shareholders | $ (1,024,825) | $ (389,789) | $ (953,575) | $ 771,618 |
Weighted average shares outstanding-basic (in shares) | 14,239,836 | 14,239,836 | 14,239,836 | 14,239,836 |
Weighted average shares-diluted (in shares) | 14,239,836 | 14,239,836 | 14,239,836 | 17,673,169 |
Earnings (loss) per share from continuing operations available to common shareholders (in dollars per share) | $ (0.072) | $ (0.027) | $ (0.067) | $ 0.054 |
Earnings (loss) per share from continuing operations-diluted available to common shareholders (in dollars per share) | (0.072) | (0.027) | (0.067) | 0.044 |
Earnings (loss) per share available to common shareholders (in dollars per share) | (0.072) | (0.027) | (0.067) | 0.054 |
Earnings (loss) per share-diluted available to common shareholders (in dollars per share) | $ (0.072) | $ (0.027) | $ (0.067) | $ 0.044 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows Unaudited - USD ($) | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (799,075) | $ 926,118 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 2,114,346 | 1,406,151 |
Gain on sale/disposal of equipment | (388,375) | (68,831) |
Provision for deferred taxes | (320,599) | 92,000 |
Decrease in contracts receivable | 10,994,609 | 12,487,429 |
Decrease (increase) in retainage receivable | 2,419,213 | (560,318) |
(Increase) decrease in other receivables | (2,459) | 6,787 |
(Increase) decrease in cost and estimated earnings in excess of billings on uncompleted contracts | (346,385) | 1,630,865 |
Increase in prepaid expenses | (1,028,102) | (2,498,964) |
Decrease in accounts payable | (2,634,999) | (1,356,188) |
Decrease in accrued expenses | (1,778,307) | (1,664,100) |
Increase (decrease) in billings in excess of cost and estimated earnings on uncompleted contracts | 494,018 | (606,334) |
Decrease in income taxes payable | (890,526) | |
Net cash provided by operating activities | 8,723,885 | 8,904,089 |
Cash flows from investing activities: | ||
Investment in property and equipment | (969,804) | (3,119,369) |
Proceeds from sales of property and equipment | 443,340 | 162,573 |
Net cash used in investing activities | (526,464) | (2,956,796) |
Cash flows from financing activities: | ||
Borrowings on lines of credit and short term debt, net of (repayments) | (4,573,780) | (3,990,175) |
Preferred dividends paid | (154,500) | (154,500) |
Principal payments on long term debt | (2,290,410) | (1,442,848) |
Net cash used in financing activities | (7,018,690) | (5,587,523) |
Increase in cash and cash equivalents | 1,178,731 | 359,770 |
Cash beginning of period | 1,675,525 | 3,828,093 |
Cash end of period | 2,854,256 | 4,187,863 |
Supplemental schedule of noncash investing and financing activities: | ||
Insurance premiums financed | 3,130,859 | 3,524,350 |
Accrued dividends on preferred stock | 154,500 | 154,500 |
Cash paid during the year for: | ||
Interest | 539,552 | 374,515 |
Income taxes | $ 21,357 | $ 1,139,306 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock | Additional Paid in Capital | Retained Earnings (deficit) | Treasury Stock | Total |
Balance at Sep. 30, 2016 | $ 1,484 | $ 61,289,260 | $ (38,766,992) | $ (60) | $ 22,523,692 |
Balance (in shares) at Sep. 30, 2016 | 14,239,836 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 926,118 | 926,118 | |||
Accrued preferred dividends | (154,500) | (154,500) | |||
Balance at Mar. 31, 2017 | $ 1,484 | 61,289,260 | (37,995,374) | (60) | 23,295,310 |
Balance (in shares) at Mar. 31, 2017 | 14,239,836 | ||||
Balance at Sep. 30, 2017 | $ 1,484 | 61,289,260 | (40,159,865) | (60) | 21,130,819 |
Balance (in shares) at Sep. 30, 2017 | 14,239,836 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (799,075) | (799,075) | |||
Accrued preferred dividends | (154,500) | (154,500) | |||
Balance at Mar. 31, 2018 | $ 1,484 | $ 61,289,260 | $ (41,113,440) | $ (60) | $ 20,177,244 |
Balance (in shares) at Mar. 31, 2018 | 14,239,836 |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 6 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
BUSINESS AND ORGANIZATION | 1. BUSINESS AND ORGANIZATION: Energy Services of America Corporation (“Energy Services” or the “Company”) was formed in 2006 as a special purpose acquisition corporation, or blank check company. On August 15, 2008, Energy Services completed the acquisitions of S.T. Pipeline, Inc. (“S.T. Pipeline”) and C.J. Hughes Construction Company, Inc. (“C.J. Hughes”). Wholly owned subsidiary C.J. Hughes is a general contractor primarily engaged in pipeline construction for utility companies. C.J. Hughes operates primarily in the mid-Atlantic region of the United States. Contractors Rental Corporation (“Contractors Rental”), a wholly owned subsidiary of C.J. Hughes provides union building trade employees for projects managed by C.J. Hughes. Nitro Construction Services, Inc. (“Nitro”), a wholly owned subsidiary of C. J. Hughes, is an electrical and mechanical contractor that provides its services to the power, chemical and automotive industries. Nitro operates primarily in the mid-Atlantic region of the United States. Pinnacle Technical Solutions, Inc. (“Pinnacle”), a wholly owned subsidiary of Nitro, operates as a data storage facility within Nitro’s office building. Pinnacle is supported by Nitro and has no employees of its own. All of the C.J. Hughes, Nitro, and Contractors Rental production personnel are union members of various related construction trade unions and are subject to collective bargaining agreements that expire at varying time intervals. S.T. Pipeline engaged in the construction of natural gas pipelines for utility companies in various states, mostly in the mid-Atlantic area of the country. On May 14, 2013, the Company liquidated the operations of S.T. Pipeline and realized $1.9 million from the sale of assets. The financial position and results of operations of S.T. Pipeline have been presented as discontinued operations in the accompanying financial statements for all presented periods. The Company’s stock is quoted under the symbol “ESOA” on the OTC QB market place operated by the OTC Markets Group. Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto for the years ended September 30, 2017 and 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 15, 2017. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the interim financial reporting rules and regulations of the SEC. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations. The operating results for the three and six months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any other interim period Principles of Consolidation The consolidated financial statements of Energy Services include the accounts of Energy Services and its wholly owned subsidiary, C.J. Hughes and its subsidiaries, Nitro, Pinnacle, and Contractors Rental. S.T. Pipeline has been shown as discontinued operations for the three and six months ended March 31, 2018 and 2017. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services and C.J. Hughes and C.J. Hughes’ subsidiaries. Reclassifications Certain reclassifications have been made in prior years’ financial statements to conform to classifications used in the current year. |
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS | 6 Months Ended |
Mar. 31, 2018 | |
Contractors [Abstract] | |
UNCOMPLETED CONTRACTS | 2. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of March 31, 2018 and September 30, 2017 are summarized as follows: March 31, 2018 September 30, 2017 Costs incurred on uncompleted contracts $ 122,803,569 $ 143,738,101 Estimated earnings, net of estimated losses 7,096,048 9,573,781 129,899,617 153,311,882 Less billing to date 126,870,331 150,134,963 $ 3,029,286 $ 3,176,919 Costs and estimated earnings in excess of billings on uncompleted contracts $ 5,697,269 $ 5,350,884 Less billings in excess of costs and estimated earnings on uncompleted contracts 2,667,983 2,173,965 $ 3,029,286 $ 3,176,919 Backlog at March 31, 2018 and September 30, 2017 was $55.1 million and $62.5 million, respectively. In April 2018, the company was awarded a transmission pipeline project valued at $47.0 million. This project is not included in the March 31, 2018 backlog. |
CLAIMS
CLAIMS | 6 Months Ended |
Mar. 31, 2018 | |
Claims [Abstract] | |
CLAIMS | 3. CLAIMS The Company does not have any claims recorded as of March 31, 2018. Claims receivable is a component of cost and estimated earnings in excess of billing. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS The Fair Value Measurements and Disclosures Topic Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair Value Measurements Topic of the FASB Accounting Standards Codification establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. As noted above, there is a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 Level 2 Level 3 A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying amount for borrowings under the Company’s revolving credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. The fair value of the Company’s long term fixed-rate debt to unrelated parties was estimated using a discounted cash flow analysis and a yield rate that was estimated based on the borrowing rates for bank loans with similar terms and maturities. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $13.2 million at March 31, 2018 was $13.1 million. The Company uses fair value measurements on a non-recurring basis in its assessment of goodwill and long-lived assets held and used. In accordance with its annual impairment test during the quarter ended September 30, 2012, the Company recorded a goodwill impairment charge of $36.9 million, which represented the entire amount of goodwill carried on the Company’s balance sheet. Refer to Note 4, Goodwill and Intangible Assets, of the Company’s Annual Report on Form 10-K for the year ended September 30, 2017 for further information. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 5. DISCONTINUED OPERATIONS Due to organizational changes and operating losses incurred in fiscal year 2012, the Company decided to discontinue the operations of its wholly owned subsidiary S.T Pipeline. On May 14, 2013, the Company liquidated the operations of S.T. Pipeline and realized $1.9 million from the sale. The Company did not have income from discontinued operations for the three and six months ended March 31, 2018 and 2017. The following table shows the components of assets and liabilities that are classified as discontinued operations in the Company’s consolidated balance sheets at March 31, 2018 and September 30, 2017. March 31, September 30, 2018 2017 Cash $ 12,303 $ 12,303 Assets of discontinued operations-current 12,303 12,303 Total assets of discontinued operations 12,303 12,303 Accrued expenses and other current liabilities 28,671 28,671 Liabilities of discontinued operations-current 28,671 28,671 Total liabilities of discontinued operations 28,671 28,671 Net liabilities $ (16,368 ) $ (16,368 ) The $29,000 in accrued expenses and other current liabilities at March 31, 2018 represents a reserve for any unexpected expenses that may be incurred by the discontinued operation. As of March 31, 2018, the Company had paid all debts known to exist to the unsecured creditors of the discontinued operation. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 6. EARNINGS PER SHARE The amounts used to compute the earnings per share for the three and six months ended March 31, 2018 and 2017 are summarized below. Three Months Ended Three Months Ended Six Months Ended Six Months Ended March 31, March 31, March 31, March 31, 2018 2017 2018 2017 Income (loss) from continuing operations $ (947,575 ) $ (312,539 ) $ (799,075 ) $ 926,118 Dividends on preferred stock 77,250 77,250 154,500 154,500 Income (loss) available to common shareholders-continuing operations $ (1,024,825 ) $ (389,789 ) $ (953,575 ) $ 771,618 Weighted average shares outstanding 14,239,836 14,239,836 14,239,836 14,239,836 Weighted average shares outstanding-diluted 14,239,836 14,239,836 14,239,836 17,673,169 Earnings (loss) per share from continuing operations available to common shareholders $ (0.072 ) $ (0.027 ) $ (0.067 ) $ 0.054 Earnings (loss) per share from continuing operations available to common shareholders-diluted $ (0.072 ) $ (0.027 ) $ (0.067 ) $ 0.044 Income from discontinued operations $ - $ - $ - $ - Weighted average shares outstanding 14,239,836 14,239,836 14,239,836 14,239,836 Weighted average shares outstanding-diluted 14,239,836 14,239,836 14,239,836 17,673,169 Earnings per share from discontinued operations $ - $ - $ - $ - Earnings per share from discontinued operations-diluted $ - $ - $ - $ - Net income (loss) $ (947,575 ) $ (312,539 ) $ (799,075 ) $ 926,118 Dividends on preferred stock 77,250 77,250 154,500 154,500 Net income (loss) available to common shareholders $ (1,024,825 ) $ (389,789 ) $ (953,575 ) $ 771,618 Earnings (loss) per share available to common shareholders $ (0.072 ) $ (0.027 ) $ (0.067 ) $ 0.054 Earnings (loss) per share available to common shareholders-diluted $ (0.072 ) $ (0.027 ) $ (0.067 ) $ 0.044 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. INCOME TAXES The components of income taxes are as follows: Six months ended March 31, 2018 2017 Federal Current $ (152,484 ) $ 534,767 Deferred (63,045 ) 75,371 Total (215,529 ) 610,138 State Current (63,716 ) 96,539 Deferred 23,443 11,912 Total (40,273 ) 108,451 Total income tax expense (benefit) $ (255,802 ) $ 718,589 The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: March 31, September 30, 2018 2017 Deferred income tax assets Long-term Net operating loss carryforward $ 461,602 $ 180,605 Other deferred assets 861,284 1,213,461 Total deferred income tax assets 1,322,886 1,394,066 Continuing operations 1,322,886 1,394,066 Total deferred income tax assets 1,322,886 1,394,066 Deferred income tax liabilities Long-term Property and equipment $ 1,471,216 $ 1,857,088 Other deferred liabilities (22,372 ) (16,465 ) Total deferred income tax liabilities-LT 1,448,844 1,840,623 Continuing operations 1,448,844 1,840,623 Total deferred income tax liabilities-LT 1,448,844 1,840,623 Net deferred income tax liabilities $ 125,958 $ 446,557 The Company does not believe that it has any unrecognized tax benefits included in its consolidated financial statements that require recognition. The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in general and administrative expenses. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 6 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | 8. SHORT-TERM AND LONG-TERM DEBT A summary of short-term and long-term debt as of March 31, 2018 and September 30, 2017 is as follows: March 31, September 30, 2018 2017 Line of credit payable to bank, monthly interest at 4.99%, final payment due by February 27, 2018. $ 2,582,199 $ 9,112,572 Renewal signed on March 21, 2018 to extend until February 27, 2019. Notes payable to finance companies, due in monthly installments totaling $63,673 including interest ranging from 1.0% to 10.09%, final payments due through April 2018 to June 2019, secured by equipment. 1,659,466 2,042,524 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $288,581 in 2018 and $320,396 in 2017, including interest rate at 2.77%, final payment due October 2018. 2,276,989 320,396 Notes payable to bank, due in monthly installments totaling $7,799, including interest at 4.75%, final payment due November 2034 secured by building and property. 1,074,469 1,094,631 Notes payable to bank, due in monthly installments totaling $11,506, including interest at 5.0%, final payment due November 2025 secured by building and property. 900,545 949,481 Notes payable to bank, due in monthly installments totaling $172,473, including interest at 6.5%, final payment due February 2019 secured by equipment. 1,694,649 2,655,515 Notes payable to bank, due in monthly installments totaling $30,914, including interest at 5.0%, final payment due February 2019 secured by equipment. 332,961 507,507 Notes payable to bank, due in monthly installments totaling $94,333, including interest at 4.99%, final payment due September 2022 secured by equipment. 4,527,648 5,000,000 Notes payable to bank, due in monthly installments totaling $46,405, including interest at 5.00%, final payment due September 2021 secured by equipment. 1,785,253 2,015,743 Total debt 16,834,179 23,698,369 Less current maturities 9,329,467 13,995,886 Total long term debt $ 7,504,712 $ 9,702,483 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto for the years ended September 30, 2017 and 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 15, 2017. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the interim financial reporting rules and regulations of the SEC. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations. The operating results for the three and six months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any other interim period |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of Energy Services include the accounts of Energy Services and its wholly owned subsidiary, C.J. Hughes and its subsidiaries, Nitro, Pinnacle, and Contractors Rental. S.T. Pipeline has been shown as discontinued operations for the three and six months ended March 31, 2018 and 2017. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services and C.J. Hughes and C.J. Hughes’ subsidiaries. |
Reclassifications | Reclassifications Certain reclassifications have been made in prior years’ financial statements to conform to classifications used in the current year. |
UNCOMPLETED CONTRACTS (Tables)
UNCOMPLETED CONTRACTS (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Contractors [Abstract] | |
Schedule of costs, estimated earnings and billings on uncompleted contracts | March 31, 2018 September 30, 2017 Costs incurred on uncompleted contracts $ 122,803,569 $ 143,738,101 Estimated earnings, net of estimated losses 7,096,048 9,573,781 129,899,617 153,311,882 Less billing to date 126,870,331 150,134,963 $ 3,029,286 $ 3,176,919 Costs and estimated earnings in excess of billings on uncompleted contracts $ 5,697,269 $ 5,350,884 Less billings in excess of costs and estimated earnings on uncompleted contracts 2,667,983 2,173,965 $ 3,029,286 $ 3,176,919 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of the components of asset and liabilities that are classified as discontinued operations | March 31, September 30, 2018 2017 Cash $ 12,303 $ 12,303 Assets of discontinued operations-current 12,303 12,303 Total assets of discontinued operations 12,303 12,303 Accrued expenses and other current liabilities 28,671 28,671 Liabilities of discontinued operations-current 28,671 28,671 Total liabilities of discontinued operations 28,671 28,671 Net liabilities $ (16,368 ) $ (16,368 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule to compute earnings per share | Three Months Ended Three Months Ended Six Months Ended Six Months Ended March 31, March 31, March 31, March 31, 2018 2017 2018 2017 Income (loss) from continuing operations $ (947,575 ) $ (312,539 ) $ (799,075 ) $ 926,118 Dividends on preferred stock 77,250 77,250 154,500 154,500 Income (loss) available to common shareholders-continuing operations $ (1,024,825 ) $ (389,789 ) $ (953,575 ) $ 771,618 Weighted average shares outstanding 14,239,836 14,239,836 14,239,836 14,239,836 Weighted average shares outstanding-diluted 14,239,836 14,239,836 14,239,836 17,673,169 Earnings (loss) per share from continuing operations available to common shareholders $ (0.072 ) $ (0.027 ) $ (0.067 ) $ 0.054 Earnings (loss) per share from continuing operations available to common shareholders-diluted $ (0.072 ) $ (0.027 ) $ (0.067 ) $ 0.044 Income from discontinued operations $ - $ - $ - $ - Weighted average shares outstanding 14,239,836 14,239,836 14,239,836 14,239,836 Weighted average shares outstanding-diluted 14,239,836 14,239,836 14,239,836 17,673,169 Earnings per share from discontinued operations $ - $ - $ - $ - Earnings per share from discontinued operations-diluted $ - $ - $ - $ - Net income (loss) $ (947,575 ) $ (312,539 ) $ (799,075 ) $ 926,118 Dividends on preferred stock 77,250 77,250 154,500 154,500 Net income (loss) available to common shareholders $ (1,024,825 ) $ (389,789 ) $ (953,575 ) $ 771,618 Earnings (loss) per share available to common shareholders $ (0.072 ) $ (0.027 ) $ (0.067 ) $ 0.054 Earnings (loss) per share available to common shareholders-diluted $ (0.072 ) $ (0.027 ) $ (0.067 ) $ 0.044 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income taxes | Six months ended March 31, 2018 2017 Federal Current $ (152,484 ) $ 534,767 Deferred (63,045 ) 75,371 Total (215,529 ) 610,138 State Current (63,716 ) 96,539 Deferred 23,443 11,912 Total (40,273 ) 108,451 Total income tax expense (benefit) $ (255,802 ) $ 718,589 |
Schedule of income tax effects to deferred tax assets and liabilities | March 31, September 30, 2018 2017 Deferred income tax assets Long-term Net operating loss carryforward $ 461,602 $ 180,605 Other deferred assets 861,284 1,213,461 Total deferred income tax assets 1,322,886 1,394,066 Continuing operations 1,322,886 1,394,066 Total deferred income tax assets 1,322,886 1,394,066 Deferred income tax liabilities Long-term Property and equipment $ 1,471,216 $ 1,857,088 Other deferred liabilities (22,372 ) (16,465 ) Total deferred income tax liabilities-LT 1,448,844 1,840,623 Continuing operations 1,448,844 1,840,623 Total deferred income tax liabilities-LT 1,448,844 1,840,623 Net deferred income tax liabilities $ 125,958 $ 446,557 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of summary of short-term and long-term debt | March 31, September 30, 2018 2017 Line of credit payable to bank, monthly interest at 4.99%, final payment due by February 27, 2018. $ 2,582,199 $ 9,112,572 Renewal signed on March 21, 2018 to extend until February 27, 2019. Notes payable to finance companies, due in monthly installments totaling $63,673 including interest ranging from 1.0% to 10.09%, final payments due through April 2018 to June 2019, secured by equipment. 1,659,466 2,042,524 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $288,581 in 2018 and $320,396 in 2017, including interest rate at 2.77%, final payment due October 2018. 2,276,989 320,396 Notes payable to bank, due in monthly installments totaling $7,799, including interest at 4.75%, final payment due November 2034 secured by building and property. 1,074,469 1,094,631 Notes payable to bank, due in monthly installments totaling $11,506, including interest at 5.0%, final payment due November 2025 secured by building and property. 900,545 949,481 Notes payable to bank, due in monthly installments totaling $172,473, including interest at 6.5%, final payment due February 2019 secured by equipment. 1,694,649 2,655,515 Notes payable to bank, due in monthly installments totaling $30,914, including interest at 5.0%, final payment due February 2019 secured by equipment. 332,961 507,507 Notes payable to bank, due in monthly installments totaling $94,333, including interest at 4.99%, final payment due September 2022 secured by equipment. 4,527,648 5,000,000 Notes payable to bank, due in monthly installments totaling $46,405, including interest at 5.00%, final payment due September 2021 secured by equipment. 1,785,253 2,015,743 Total debt 16,834,179 23,698,369 Less current maturities 9,329,467 13,995,886 Total long term debt $ 7,504,712 $ 9,702,483 |
BUSINESS AND ORGANIZATION (Deta
BUSINESS AND ORGANIZATION (Detail Textuals) $ in Millions | May 14, 2013USD ($) |
S.T. Pipeline, Inc | Discontinued Operations | |
Disposal Groups, Including Discontinued Operations [Line Items] | |
Amount received from sale of assets of subsidiary | $ 1.9 |
UNCOMPLETED CONTRACTS - Summary
UNCOMPLETED CONTRACTS - Summary of costs, estimated earnings, and billings on uncompleted contracts (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Contractors [Abstract] | ||
Costs incurred on uncompleted contracts | $ 122,803,569 | $ 143,738,101 |
Estimated earnings, net of estimated losses | 7,096,048 | 9,573,781 |
Costs of uncompleted contracts including net estimated earnings | 129,899,617 | 153,311,882 |
Less billing to date | 126,870,331 | 150,134,963 |
Unbilled contracts receivable | 3,029,286 | 3,176,919 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 5,697,269 | 5,350,884 |
Less billings in excess of costs and estimated earnings on uncompleted contracts | 2,667,983 | 2,173,965 |
Unbilled contracts receivable | $ 3,029,286 | $ 3,176,919 |
UNCOMPLETED CONTRACTS (Detail T
UNCOMPLETED CONTRACTS (Detail Textuals) - USD ($) $ in Millions | Apr. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 |
Uncompleted Contracts [Line Items] | |||
Backlog | $ 55.1 | $ 62.5 | |
Subsequent event | |||
Uncompleted Contracts [Line Items] | |||
Transmission pipeline project amount | $ 47 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Detail Textuals) - USD ($) $ in Millions | 1 Months Ended | |
Sep. 30, 2012 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Aggregate principal amount of fixed-rate debt | $ 13.2 | |
Fair value of fixed rate debt | $ 13.1 | |
Goodwill impairment charge | $ 36.9 |
DISCONTINUED OPERATIONS - Compo
DISCONTINUED OPERATIONS - Components of asset and liabilities classified as discontinued operations (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Components of assets and liabilities classified as discontinued operations: | ||
Assets of discontinued operations-current | $ 12,303 | $ 12,303 |
Accrued expenses and other current liabilities | 29,000 | |
Liabilities of discontinued operations-current | 28,671 | 28,671 |
S.T. Pipeline, Inc | Discontinued Operations | ||
Components of assets and liabilities classified as discontinued operations: | ||
Cash | 12,303 | 12,303 |
Assets of discontinued operations-current | 12,303 | 12,303 |
Total assets of discontinued operations | 12,303 | 12,303 |
Accrued expenses and other current liabilities | 28,671 | 28,671 |
Liabilities of discontinued operations-current | 28,671 | 28,671 |
Total liabilities of discontinued operations | 28,671 | 28,671 |
Net liabilities | $ (16,368) | $ (16,368) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Detail Textuals) - USD ($) | May 14, 2013 | Mar. 31, 2018 | Sep. 30, 2017 |
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accrued expenses and other current liabilities | $ 29,000 | ||
S.T. Pipeline, Inc | Discontinued Operations | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of discontinued operations | $ 1,900,000 | ||
Accrued expenses and other current liabilities | $ 28,671 | $ 28,671 |
EARNINGS (LOSS) PER SHARE - Sum
EARNINGS (LOSS) PER SHARE - Summary of amounts used to compute earnings per share (Details ) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations | $ (947,575) | $ (312,539) | $ (799,075) | $ 926,118 |
Dividends on preferred stock | 77,250 | 77,250 | 154,500 | 154,500 |
Income (loss) available to common shareholders-continuing operations | $ (1,024,825) | $ (389,789) | $ (953,575) | $ 771,618 |
Weighted average shares outstanding (in shares) | 14,239,836 | 14,239,836 | 14,239,836 | 14,239,836 |
Weighted average shares outstanding-diluted (in shares) | 14,239,836 | 14,239,836 | 14,239,836 | 17,673,169 |
Earnings (loss) per share from continuing operations available to common shareholders (in dollars per share) | $ (0.072) | $ (0.027) | $ (0.067) | $ 0.054 |
Earnings (loss) per share from continuing operations available to common shareholders-diluted (in dollars per share) | $ (0.072) | $ (0.027) | $ (0.067) | $ 0.044 |
Income from discontinued operations | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average shares outstanding (in shares) | 14,239,836 | 14,239,836 | 14,239,836 | 14,239,836 |
Weighted average shares outstanding-diluted (in shares) | 14,239,836 | 14,239,836 | 14,239,836 | 17,673,169 |
Earnings per share from discontinued operations (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings per share from discontinued operations-diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Net income (loss) | $ (947,575) | $ (312,539) | $ (799,075) | $ 926,118 |
Dividends on preferred stock | 77,250 | 77,250 | 154,500 | 154,500 |
Net income (loss) available to common shareholders | $ (1,024,825) | $ (389,789) | $ (953,575) | $ 771,618 |
Earnings (loss) per share available to common shareholders (in dollars per share) | $ (0.072) | $ (0.027) | $ (0.067) | $ 0.054 |
Earnings (loss) per share available to common shareholders-diluted (in dollars per share) | $ (0.072) | $ (0.027) | $ (0.067) | $ 0.044 |
INCOME TAXES - Components of in
INCOME TAXES - Components of income taxes (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Federal | ||
Current | $ (152,484) | $ 534,767 |
Deferred | (63,045) | 75,371 |
Total | (215,529) | 610,138 |
State | ||
Current | (63,716) | 96,539 |
Deferred | 23,443 | 11,912 |
Total | (40,273) | 108,451 |
Total income tax expense (benefit) | $ (255,802) | $ 718,589 |
INCOME TAXES - Summary of incom
INCOME TAXES - Summary of income tax effects of temporary differences giving rise to deferred tax liabilities (Details 1) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Deferred income tax assets Long-term | ||
Net operating loss carryforward | $ 461,602 | $ 180,605 |
Other deferred assets | 861,284 | 1,213,461 |
Total deferred income tax assets | 1,322,886 | 1,394,066 |
Deferred income tax liabilities, Long-term | ||
Property and equipment | 1,471,216 | 1,857,088 |
Other deferred liabilities | (22,372) | (16,465) |
Total deferred income tax liabilities-LT | 1,448,844 | 1,840,623 |
Net deferred income tax liabilities | 125,958 | 446,557 |
Continuing Operations | ||
Deferred income tax assets Long-term | ||
Total deferred income tax assets | 1,322,886 | 1,394,066 |
Deferred income tax liabilities, Long-term | ||
Total deferred income tax liabilities-LT | $ 1,448,844 | $ 1,840,623 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 16,834,179 | $ 23,698,369 |
Less current maturities | 9,329,467 | 13,995,886 |
Total long term debt | 7,504,712 | 9,702,483 |
Line of credit payable to bank due by February 27, 2018 | ||
Debt Instrument [Line Items] | ||
Total debt | 2,582,199 | 9,112,572 |
Notes payable to finance companies, final payments due April 2018 to June 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | 1,659,466 | 2,042,524 |
Note payable to finance company for insurance premiums financed, due October 2018 in monthly installments | ||
Debt Instrument [Line Items] | ||
Total debt | 2,276,989 | 320,396 |
Notes payable to bank, final payment due November 2034 | ||
Debt Instrument [Line Items] | ||
Total debt | 1,074,469 | 1,094,631 |
Notes payable to bank, final payment due November 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | 900,545 | 949,481 |
Notes payable to bank, final payment due February 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | 1,694,649 | 2,655,515 |
Notes payable to bank, final payment due February 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | 332,961 | 507,507 |
Notes payable to bank, final payment due September 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 4,527,648 | 5,000,000 |
Notes payable to bank, final payment due September 2021 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,785,253 | $ 2,015,743 |
SHORT-TERM AND LONG-TERM DEBT31
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Parentheticals) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Sep. 30, 2017 | |
Line of credit payable to bank due by February 27, 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.99% | |
Notes payable to finance companies, final payments due April 2018 to June 2019 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly installments | $ 63,673 | |
Notes payable to finance companies, final payments due April 2018 to June 2019 | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.00% | |
Notes payable to finance companies, final payments due April 2018 to June 2019 | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 10.09% | |
Note payable to finance company for insurance premiums financed, due October 2018 in monthly installments | ||
Debt Instrument [Line Items] | ||
Note payable in monthly installments | $ 288,581 | $ 320,396 |
Interest rate | 2.77% | |
Notes payable to bank, final payment due November 2034 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly installments | $ 7,799 | |
Interest rate | 4.75% | |
Notes payable to bank, final payment due November 2025 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly installments | $ 11,506 | |
Interest rate | 5.00% | |
Notes payable to bank, final payment due February 2019 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly installments | $ 172,473 | |
Interest rate | 6.50% | |
Notes payable to bank, final payment due February 2019 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly installments | $ 30,914 | |
Interest rate | 5.00% | |
Notes payable to bank, final payment due September 2022 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly installments | $ 94,333 | |
Interest rate | 4.99% | |
Notes payable to bank, final payment due September 2021 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly installments | $ 46,405 | |
Interest rate | 5.00% |