Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 09, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Entity File Number | 000-00000 | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2023 | |
Entity Registrant Name | Energy Services of America Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-4606266 | |
Entity Address, Address Line One | 75 West 3rd Ave. | |
Entity Address, City or Town | Huntington | |
Entity Address, Postal Zip Code | 25701 | |
Entity Address, State or Province | WV | |
City Area Code | 304 | |
Local Phone Number | 522-3868 | |
Title of 12(g) Security | Common Stock, Par Value $0.0001 | |
Trading Symbol | ESOA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,610,848 | |
Entity Central Index Key | 0001357971 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 11,255,020 | $ 16,431,572 |
Accounts receivable-trade | 43,217,068 | 51,219,958 |
Allowance for doubtful accounts | (51,063) | (51,063) |
Retainages receivable | 9,691,713 | 7,589,749 |
Other receivables | 1,221,330 | 516,968 |
Contract assets | 21,795,592 | 15,955,220 |
Prepaid expenses and other | 2,687,286 | 3,520,178 |
Total current assets | 89,816,946 | 95,182,582 |
Property, plant and equipment, at cost | 85,900,210 | 84,329,349 |
less accumulated depreciation | (49,618,944) | (47,799,840) |
Total fixed assets | 36,281,266 | 36,529,509 |
Right-of-use assets-operating lease | 2,917,341 | 3,326,405 |
Intangible assets, net | 3,274,957 | 3,383,099 |
Goodwill | 4,087,554 | 4,087,554 |
Total assets | 136,378,064 | 142,509,149 |
Current liabilities | ||
Current maturities of long-term debt | 6,726,605 | 6,107,277 |
Lines of credit and short term borrowings | 14,909,464 | 19,847,470 |
Current maturities of operating lease liabilities | 1,229,348 | 1,075,815 |
Accounts payable | 22,262,695 | 22,026,639 |
Accrued expenses and other current liabilities | 11,575,093 | 13,103,944 |
Contract liabilities | 17,663,714 | 17,743,001 |
Total current liabilities | 74,366,919 | 79,904,146 |
Long-term debt, less current maturities | 17,030,429 | 18,870,529 |
Long-term operating lease liabilities, less current maturities | 1,691,185 | 2,274,975 |
Deferred tax liability | 7,652,378 | 6,870,510 |
Total liabilities | 100,740,911 | 107,920,160 |
Shareholders' equity | ||
Common stock, $.0001 par value Authorized 50,000,000 shares, 17,885,615 issued and 16,567,185 outstanding at December 31, 2023 and September 30, 2023 | 1,789 | 1,789 |
Treasury stock, 1,318,430 shares at December 31, 2023 and September 30, 2023 | (132) | (132) |
Additional paid in capital | 60,288,745 | 60,288,745 |
Retained deficit | (24,653,249) | (25,701,413) |
Total shareholders' equity | 35,637,153 | 34,588,989 |
Total liabilities and shareholders' equity | $ 136,378,064 | $ 142,509,149 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Sep. 30, 2023 |
Consolidated Balance Sheets | ||
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 | 17,885,615 | 17,885,615 |
Common stock, shares outstanding | 16,567,185 | 16,567,185 |
Treasury stock, shares | 1,318,430 | 1,318,430 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Income | ||
Revenue | $ 90,163,187 | $ 60,042,585 |
Cost of revenues | 79,324,226 | 54,056,323 |
Gross profit | 10,838,961 | 5,986,262 |
Selling and administrative expenses | 7,198,720 | 5,316,138 |
Income from operations | 3,640,241 | 670,124 |
Other income (expense) | ||
Interest income | 72 | |
Other nonoperating income (expense) | 75,001 | (80,663) |
Interest expense | (601,684) | (499,428) |
Loss on sale of equipment | (13,328) | (31,343) |
Other nonoperating income (expense), Total | (540,011) | (611,362) |
Income before income taxes | 3,100,230 | 58,762 |
Income tax expense (benefit) | 1,058,035 | (79,612) |
Net income | $ 2,042,195 | $ 138,374 |
Weighted average shares outstanding-basic (in shares) | 16,567,185 | 16,667,185 |
Weighted average shares-diluted (in shares) | 16,607,185 | 16,667,185 |
Earnings per share-basic (in dollars per share) | $ 0.12 | $ 0.01 |
Earnings per share-diluted (in dollars per share) | $ 0.12 | $ 0.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 2,042,195 | $ 138,374 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 25,144 | 25,144 |
Accreted interest on PPP loans | 2,068,479 | 1,762,322 |
Loss on sale of equipment | 13,328 | 31,343 |
Provision for deferred taxes | 781,868 | (421,878) |
Amortization of intangible assets | 108,142 | 132,780 |
Accreted interest on note payable | 23,239 | 10,599 |
Decrease in accounts receivable | 8,002,890 | 3,153,393 |
Increase in retainage receivable | (2,101,964) | (545,772) |
Increase in other receivables | (704,362) | (2,833) |
(Increase) decrease in contract assets | (5,840,372) | 1,711,912 |
Decrease in prepaid expenses and other | 832,892 | 775,487 |
Increase (decrease) in accounts payable | 214,863 | (5,330,386) |
Decrease in accrued expenses and other current liabilities | (2,522,882) | (2,451,871) |
(Decrease) increase in contract liabilities | (79,287) | 2,584,305 |
Net cash provided by operating activities | 2,864,173 | 1,572,919 |
Cash flows from investing activities: | ||
Investment in property and equipment | (1,385,883) | (2,348,901) |
Proceeds from sales of property and equipment | 365,234 | 92,815 |
Net cash used in investing activities | (1,020,649) | (2,256,086) |
Cash flows from financing activities: | ||
Borrowings on lines of credit and short term debt, net of (repayments) | (4,963,150) | (580,320) |
Proceeds from long-term debt | 3,100,000 | |
Principal payments on long term debt | (2,056,926) | (1,733,080) |
Net cash (used in) provided by financing activities | (7,020,076) | 786,600 |
(Decrease) increase in cash and cash equivalents | (5,176,552) | 103,433 |
Cash and cash equivalents beginning of period | 16,431,572 | 7,427,474 |
Cash and cash equivalents end of period | 11,255,020 | 7,530,907 |
Supplemental schedule of noncash investing and financing activities: | ||
Purchases of property & equipment under financing agreements | 812,915 | 88,192 |
Net operating lease right-of-use assets received in exchange for operating lease liabilities | 252,259 | |
Common dividends declared but not paid | 994,031 | |
Cash paid during the year for: | ||
Interest | $ 574,067 | $ 472,960 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock | Additional Paid in Capital | Retained Deficit | Treasury Stock | Total |
Balance at the beginning at Sep. 30, 2022 | $ 1,789 | $ 60,508,350 | $ (32,269,473) | $ (122) | $ 28,240,544 |
Balance at the beginning (in shares) at Sep. 30, 2022 | 16,667,185 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 138,374 | 138,374 | |||
Balance at the end at Dec. 31, 2022 | $ 1,789 | 60,508,350 | (32,131,099) | (122) | 28,378,918 |
Balance at the end (in shares) at Dec. 31, 2022 | 16,667,185 | ||||
Balance at the beginning at Sep. 30, 2023 | $ 1,789 | 60,288,745 | (25,701,413) | (132) | 34,588,989 |
Balance at the beginning (in shares) at Sep. 30, 2023 | 16,567,185 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,042,195 | 2,042,195 | |||
Dividends on common stock ($0.06 per share on 16,567,185 shares) | (994,031) | (994,031) | |||
Balance at the end at Dec. 31, 2023 | $ 1,789 | $ 60,288,745 | $ (24,653,249) | $ (132) | $ 35,637,153 |
Balance at the end (in shares) at Dec. 31, 2023 | 16,567,185 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) | 3 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Consolidated Statements of Changes in Shareholders' Equity | |
Dividends on common stock (in dollars per share) | $ / shares | $ 0.06 |
Number of common shares | shares | 16,567,185 |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 3 Months Ended |
Dec. 31, 2023 | |
BUSINESS AND ORGANIZATION | |
BUSINESS AND ORGANIZATION | 1. BUSINESS AND ORGANIZATION Energy Services of America Corporation (“Energy Services” or the “Company”), formed in 2006, is a contractor and service company that operates primarily in the mid-Atlantic and central regions of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. For the gas industry, the Company is primarily engaged in the construction, replacement and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. Energy Services is involved in the construction of both interstate and intrastate pipelines, with an emphasis on the latter. For the oil industry, the Company provides a variety of services relating to pipeline, storage facilities and plant work. For the power, chemical, and automotive industries, the Company provides a full range of electrical and mechanical installations and repairs including substation and switchyard services, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary work with regards thereto. Energy Services’ other pipeline services include corrosion protection services, horizontal drilling services, liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction. The Company has also added the ability to install broadband and solar electric systems and perform civil and general contracting services. C.J. Hughes Construction Company, Inc. (“C.J. Hughes”), a wholly owned subsidiary of the Company, is a general contractor primarily engaged in pipeline construction for utility companies. 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. (“NCS”), a wholly owned subsidiary of C.J. Hughes, provides electrical, mechanical, HVAC/R, and fire protection services to customers primarily in the automotive, chemical, and power industries. Revolt Energy, LLC (“Revolt”), a wholly owned subsidiary of NCS, performs residential solar installation projects. Nitro Electric Company, LLC (“Nitro Electric”), a wholly owned subsidiary of NCS, performs industrial electrical work and has a satellite office registered in Michigan. Pinnacle Technical Solutions, Inc. (“Pinnacle”), a wholly owned subsidiary of NCS, operates as a data storage facility within Nitro’s office building. Pinnacle is supported by NCS and has no employees of its own. NCS and its subsidiaries will collectively be referred to “Nitro”. All C.J. Hughes, Nitro, and Contractors Rental construction personnel are union members of various related construction trade unions and are subject to collective bargaining agreements that expire at varying time intervals. West Virginia Pipeline, Inc. (“West Virginia Pipeline” or “WVP”), a wholly owned subsidiary of Energy Services, operates as a gas and water distribution contractor primarily in southern West Virginia. The employees of West Virginia Pipeline are non-union and are managed independently of the Company’s union subsidiaries. SQP Construction Group, Inc. (“SQP”), a wholly owned subsidiary of Energy Services, operates as a general contractor primarily in West Virginia. SQP engages in the construction and renovation of buildings and other civil construction projects for state and local government agencies and commercial customers. As a general contractor, SQP manages the overall construction project and subcontracts most of the work. The employees of SQP are non-union and are managed independently of the Company’s union subsidiaries. Tri-State Paving & Sealcoating, Inc. The employees of TSP are non-union and are managed independently of the Company’s union subsidiaries. Ryan Construction Services Inc. (“Ryan Construction” or “RCS”), a wholly owned subsidiary of Energy Services, formed in August 2022 in connection with the acquisition of substantially all the assets of Ryan Environmental, LLC and Ryan Environmental Transport, LLC (collectively “Ryan Environmental”), provides directional drilling services for broadband service providers along with offering natural gas distribution services, cathodic protection and corrosion prevention services, and civil construction services. Ryan Construction operates primarily in West Virginia and Pennsylvania. The employees of RCS are non-union and are managed independently of the Company’s union subsidiaries. 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, 2023, and 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on January 16,2024. 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 (“U.S. GAAP”) 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 months ended December 31, 2023 and 2022 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, its wholly owned subsidiaries West Virginia Pipeline, SQP, Ryan Construction, Tri-State Paving and C.J. Hughes and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services, West Virginia Pipeline, SQP, Ryan Construction, Tri-State Paving and C.J. Hughes and its subsidiaries. Use of Estimates and Assumptions The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and loss during the reporting period. Actual results could differ materially from those estimates. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Please refer to Note 2 “ Summary of Significant Accounting Policies |
ACCOUNTING FOR PPP LOANS
ACCOUNTING FOR PPP LOANS | 3 Months Ended |
Dec. 31, 2023 | |
ACCOUNTING FOR PPP LOANS | |
ACCOUNTING FOR PPP LOANS | 3. ACCOUNTING FOR PPP LOANS Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the PPP. On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with its Lender in an aggregate principal amount of $13.1 million pursuant to the PPP Loans. In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the SBA had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021. During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously issued financial statements of the Company that were included in the Reports. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest for all periods presented. During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. Borrowers must retain PPP documentation for at least six years after the date the loan is forgiven or paid in full, and the SBA and SBA Inspector General must be granted these files upon request. The SBA could revisit its forgiveness decision and determine that the Company does not qualify in whole or in part for loan forgiveness and demand repayment of the loans. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company’s certification. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Dec. 31, 2023 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 4. REVENUE RECOGNITION Our revenue is primarily derived from construction contracts that can span several quarters. We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers ● Identify the contract ● Identify performance obligations ● Determine the transaction price ● Allocate the transaction price ● Recognize revenue The accuracy of our revenue and profit recognition in a given period depends on the accuracy of our estimates of the cost to complete each project. We believe our experience allows us to create materially reliable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability. The most significant of these include: ● the completeness and accuracy of the original bid; ● costs associated with scope changes; ● changes in costs of labor and/or materials; ● extended overhead and other costs due to owner, weather and other delays; ● subcontractor performance issues; ● changes in productivity expectations; ● site conditions that differ from those assumed in the original bid; ● changes from original design on design-build projects; ● the availability and skill level of workers in the geographic location of the project; ● a change in the availability and proximity of equipment and materials; ● our ability to fully and promptly recover on affirmative claims and back charges for additional contract costs; and ● the customer’s ability to properly administer the contract. The foregoing factors, as well as the stage of completion of contracts in process and the mix of contracts at different margins may cause fluctuations in gross profit from period to period. Significant changes in cost estimates, particularly in our larger, more complex projects, could have a significant effect on our profitability. Our contract assets include cost and estimated earnings in excess of billings that represent amounts earned and reimbursable under contracts, including claim recovery estimates, but have a conditional right for billing and payment such as achievement of milestones or completion of the project. With the exception of customer affirmative claims, generally, such unbilled amounts will become billable according to the contract terms and generally will be billed and collected over the next three months. Settlement with the customer of outstanding affirmative claims is dependent on the claims resolution process and could extend beyond one year. Based on our historical experience, we generally consider the collection risk related to billable amounts to be low. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced. Our contract liabilities consist of provisions for losses and billings in excess of costs and estimated earnings. Provisions for losses, if incurred, are recognized in the consolidated statements of income at the uncompleted performance obligation level for the amount of total estimated losses in the period that evidence indicates that the estimated total cost of a performance obligation exceeds its estimated total revenue. Billings in excess of costs and estimated earnings are billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months. |
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE | 3 Months Ended |
Dec. 31, 2023 | |
DISAGGREGATION OF REVENUE | |
DISAGGREGATION OF REVENUE | 5. DISAGGREGATION OF REVENUE The Company disaggregates revenue based on the following lines of service: (1) Gas & Water Distribution, (2) Gas & Petroleum Transmission, and (3) Electrical, Mechanical, & General services and construction. Our contract types are: Lump Sum, Unit Price, Cost Plus and Time and Materials (“T&M”). The following tables present our disaggregated revenue for the three months ended December 31, 2023 and 2022: Three Months Ended December 31, 2023 Electrical, Gas & Water Gas & Petroleum Mechanical, & Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 28,689,030 $ 28,689,030 Unit price contracts 17,082,895 27,848,185 2,262,695 47,193,775 Cost plus and T&M contracts — 715,058 13,565,324 14,280,382 Total revenue from contracts $ 17,082,895 $ 28,563,243 $ 44,517,049 $ 90,163,187 Earned over time $ 4,372,583 $ 27,848,185 $ 30,227,914 $ 62,448,682 Earned at point in time 12,710,312 715,058 14,289,135 27,714,505 Total revenue from contracts $ 17,082,895 $ 28,563,243 $ 44,517,049 $ 90,163,187 Three Months Ended December 31, 2022 Electrical, Gas &Water Gas & Petroleum Mechanical, & Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 17,186,157 $ 17,186,157 Unit price contracts 12,389,558 16,840,150 1,537,438 30,767,146 Cost plus and T&M contracts — — 12,089,282 12,089,282 Total revenue from contracts $ 12,389,558 $ 16,840,150 $ 30,812,877 $ 60,042,585 Earned over time $ 4,878,647 $ 16,840,150 $ 29,890,148 $ 51,608,945 Earned at point in time 7,510,911 — 922,729 8,433,640 Total revenue from contracts $ 12,389,558 $ 16,840,150 $ 30,812,877 $ 60,042,585 |
CONTRACT BALANCES
CONTRACT BALANCES | 3 Months Ended |
Dec. 31, 2023 | |
CONTRACT BALANCES | |
CONTRACT BALANCES | 6. CONTRACT BALANCES The Company’s accounts receivable consists of amounts that have been billed to customers and collateral is generally not required. Most of the Company’s contracts have monthly billing terms; however, billing terms for some are based on project completion. Payment terms are generally within 30 to 45 days after invoices have been issued. The Company attempts to negotiate two-week billing terms and 15-day payment terms on larger projects. The timing of billings to customers may generate contract assets or contract liabilities. During the three months ended December 31, 2023, we recognized revenue of $13.5 million that was included in the contract liability balance at September 30, 2023. Accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities consisted of the following: December 31, 2023 September 30, 2023 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 43,166,005 $ 51,168,895 $ (8,002,890) Contract assets Cost and estimated earnings in excess of billings $ 21,795,592 $ 15,955,220 $ 5,840,372 Contract liabilities Billings in excess of cost and estimated earnings $ 17,663,714 $ 17,743,001 $ (79,287) |
PERFORMANCE OBLIGATIONS
PERFORMANCE OBLIGATIONS | 3 Months Ended |
Dec. 31, 2023 | |
PERFORMANCE OBLIGATIONS | |
PERFORMANCE OBLIGATIONS | 7. PERFORMANCE OBLIGATIONS For the three months ended December 31, 2023, there was no significant revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2023. Changes in contract transaction price can result from items such as executed or estimated change orders, and unresolved contract modifications and claims. At December 31, 2023, the Company had $132.2 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months. |
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS | 3 Months Ended |
Dec. 31, 2023 | |
UNCOMPLETED CONTRACTS | |
UNCOMPLETED CONTRACTS | 8. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of December 31, 2023 and September 30, 2023, are summarized as follows: December 31, 2023 September 30, 2023 Costs incurred on contracts in progress $ 369,542,545 $ 287,347,650 Estimated earnings, net of estimated losses 47,271,768 38,976,895 416,814,313 326,324,545 Less billings to date 412,682,435 328,112,326 $ 4,131,878 $ (1,787,781) Costs and estimated earnings in excess of billed on uncompleted contracts $ 21,795,592 $ 15,955,220 Less billings in excess of costs and estimated earnings on uncompleted contracts 17,663,714 17,743,001 $ 4,131,878 $ (1,787,781) The Company’s unaudited backlog at December 31, 2023 and September 30, 2023 was $185.9 million and $229.8 million, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS The fair value measurement guidance of the Financial Accounting Standards Board (“FASB”) ASC defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and specifies disclosures about fair value measurements. 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 measurement guidance of the FASB ASC 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. 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 was estimated using a discounted cash flow analysis and a yield rate that was estimated based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $31.9 million at December 31, 2023 was $30.3 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $33.8 million at September 30, 2023 was $32.1 million. All other current assets and liabilities are carried at net realizable value which approximates fair value because of their short duration to maturity. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 10. EARNINGS PER SHARE The amounts used to compute the earnings per share for the three months ended December 31, 2023 and 2022 are summarized below. Three Months Ended Three Months Ended December 31, December 31, 2023 2022 Net income $ 2,042,195 $ 138,374 Weighted average shares outstanding-basic 16,567,185 16,667,185 Weighted average shares outstanding-diluted 16,607,185 16,667,185 Earnings per share available to common shareholders $ 0.12 $ 0.01 Earnings per share available to common shareholders-diluted $ 0.12 $ 0.01 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES The components of income taxes are as follows: Three Months Ended December 31, 2023 December 31, 2022 Federal Current $ 214,795 $ 266,966 Deferred 602,038 (329,064) Total 816,833 (62,098) State Current 61,370 75,299 Deferred 179,832 (92,813) Total 241,202 (17,514) Total income tax expense (benefit) $ 1,058,035 $ (79,612) The Company’s income tax expense and deferred tax assets and liabilities reflect management’s best estimate of current and future taxes to be paid. Significant judgments and estimates are required in the determination of the consolidated income tax expense. The Company’s provision for income taxes is computed by applying a federal rate of 21.0% and a state rate of 6.0% to taxable income or loss after consideration of non-taxable and non-deductible items. The effective income tax rate for the three months ended December 31, 2023, was 34.1%, as compared to (135.5)% for the same period in 2022. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses. Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses. The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: December 31, September 30, 2023 2023 Deferred tax liabilities Property and equipment $ 7,937,214 $ 8,141,025 Other 608,562 588,632 Total deferred tax liabilities $ 8,545,776 $ 8,729,657 Deferred income tax assets Accruals & other $ 893,398 $ 948,704 Net operating loss carryforward — 910,443 Total deferred tax assets $ 893,398 $ 1,859,147 Total net deferred tax liabilities $ 7,652,378 $ 6,870,510 Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company had $0 and $3.0 million of federal net operating loss carryforwards at December 31, 2023 and September 30, 2023, respectively. The Company had state net operating loss carryforwards at December 31, 2023 and September 30, 2023, respectively that begin to expire in 2025, that were not significant. 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 | 3 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM AND LONG-TERM DEBT | |
SHORT-TERM AND LONG-TERM DEBT | 12. SHORT-TERM AND LONG-TERM DEBT Operating Line of Credit On July 13, 2022, the Company received a one-year extension on its $15.0 million operating line of credit effective June 28, 2022. The interest rate on the line of credit is the “ Wall Street Journal The line of credit is limited to a borrowing base calculation as summarized below: December 31, 2023 September 30, 2023 Eligible borrowing base $ 15,950,633 $ 23,942,868 Borrowed on line of credit 4,700,000 8,712,915 Line of credit balance available $ 11,250,633 $ 15,229,953 Interest rate 8.5 % 8.5 % The modified financial covenants for the quarter ended June 30, 2023, and all subsequent quarters, are below: ● Minimum tangible net worth of $28.0 million, ● Minimum traditional debt service coverage of 1.50x on a rolling twelve- month basis, ● Minimum current ratio of 1.20x , ● Maximum debt to tangible net worth ratio (“TNW”) of 2.75x , ● Each ratio and covenant shall be determined, tested, and measured as of each calendar quarter beginning June 30, 2023, ● The Company shall maintain a ratio of Maximum Senior Funded Debt (“SFD”) to Earnings before Interest, Taxes, Depreciation and Amortization (“EBDITA”) equal to or less than 3.5 :1. SFD shall mean any funded debt or lease of the Company, other than subordinated debt. The covenant shall be tested quarterly, at the end of each fiscal quarter, with EBITDA based on the preceding four quarters. The Company’s lender has agreed to omit the effect of the PPP loan restatement from the Company’s covenant compliance calculations while a final decision on PPP loan forgiveness remains in question. Thus, the Company was in compliance with all covenants at December 31, 2023. The Company projects to meet all covenant requirements for the next twelve months. Insurance Premiums Financed The Company financed its captive insurance policy premiums on a short-term basis through a financing company for the calendar years ended December 31, 2023 and 2022. These insurance policies include workers’ compensation, general liability, automobile, umbrella, and equipment policies. The Company made down payments in January 2023 and 2022 and financed the remaining premium amount over eleven monthly payments. At December 31, 2023 and September 30, 2023, the remaining balance of the insurance premiums was $0 and $950,000, respectively. Paycheck Protection Program Loans Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the PPP. On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with its Lender in an aggregate principal amount of $13.1 million pursuant to the PPP Loans. In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the SBA had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021. During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously audited financial statements of the Company for the fiscal years 2022 and 2021. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest. During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. Borrowers must retain PPP documentation for at least six years after the date the loan is forgiven or paid in full, and the SBA and SBA Inspector General must be granted these files upon request. The SBA could revisit its forgiveness decision and determine that the Company does not qualify in whole or in part for loan forgiveness and demand repayment of the loans. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company’s certification. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects. A summary of short-term and long-term debt as of December 31, 2023 and September 30, 2023 is as follows: December 31, September 30, 2023 2023 Line of credit payable to bank, monthly interest with variable rate of 8.5% at December 31, 2023, final payment due by June 28, 2024, guaranteed by certain directors of the Company. $ 4,700,000 $ 8,712,915 Note payable to bank, due in monthly installments totaling $202,000, including fixed interest at 7.25%, final payment due June 2028, secured by equipment, guaranteed by certain directors of the Company. 9,155,573 8,487,085 Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. 10,209,464 10,184,320 Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853 with fixed interest at 4.25%, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. 1,671,534 1,790,051 Notes payable to finance companies, due in monthly installments totaling $51,000 at December 31, 2023 and $50,000 at September 30, 2023, including interest ranging from 0.00% to 6.92%, final payments due January 2024 through August 2026, secured by equipment. 1,172,920 1,290,148 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $327,000 in calendar year 2023 and $282,000 in calendar year 2022, including interest rate at 6.70%, final payment due December 2023. — 950,235 Notes payable to bank, due in monthly installments totaling $7,848, including interest at 4.82%, final payment due November 2034 secured by building and property. 798,448 813,242 Notes payable to bank, due in monthly installments totaling $12,580, including variable interest of 9.5% at December 31, 2023, final payment due November 2025 secured by building and property, guaranteed by certain directors of the Company. 263,836 294,761 Notes payable to bank, due in monthly installments totaling $59,932, including fixed interest at 6.0%, final payment due October 2027 secured by receivables and equipment, guaranteed by certain directors of the Company. 2,460,330 2,601,404 Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000, including fixed interest at 3.25%, final payment due December 31, 2026, unsecured. 917,500 1,660,000 Notes payable to bank, interest at 4.25% of outstanding balance due in monthly installments between January 2021 and January 2022. Beginning February 2022, note payments due in monthly installments totaling $68,150, including variable interest of 9.5% at December 31, 2023, with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company. 1,713,569 1,873,831 Term note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $129,910, fixed interest at 4.50%, final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. 5,369,062 5,698,761 Notes payable to Corns Enterprises, $1,000,000 with fair value of $936,000, due in annual installments totaling $250,000, including fixed interest at 3.50%, final payment due April 29, 2026, unsecured. 234,262 468,523 Total debt $ 38,666,498 $ 44,825,276 Less current maturities 21,636,069 25,954,747 Total long term debt, less current maturities $ 17,030,429 $ 18,870,529 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 13. GOODWILL AND INTANGIBLE ASSETS The Company follows the guidance of ASC Topic 350, Intangibles-Goodwill and Other A table of the Company’s goodwill is below: December 31, September 30, 2023 2023 Beginning balance $ 4,087,554 $ 4,087,554 Acquired — — Ending balance $ 4,087,554 $ 4,087,554 A table of the Company’s intangible assets subject to amortization is below: Amortization Amortization Accumulated Accumulated and Impairment and Impairment Remaining Life Amortization and Amortization and Three Months Three Months (in months) at Impairment at Impairment at Ended December 31, Ended December 31, Net Book Value Net Book Value Intangible assets: December 31, 2023 Original Cost December 31, 2023 September 30, 2023 2023 2022 at December 31, 2023 at September 30, 2023 West Virginia Pipeline: Customer Relationships 84 $ 2,209,724 662,903 $ 607,661 55,242 55,242 $ 1,546,821 $ 1,602,063 Tradename 84 263,584 79,091 72,500 6,591 6,595 184,493 191,084 Non-competes — 83,203 83,203 83,203 — 10,397 — — Revolt Energy: Employment agreement/non-compete — 100,000 100,000 100,000 — 4,167 — — Tri-State Paving: Customer Relationships 100 1,649,159 274,860 233,631 41,229 41,280 1,374,299 1,415,528 Tradename 100 203,213 33,869 28,789 5,080 5,082 169,344 174,424 Non-competes — 39,960 39,960 39,960 — 10,017 — — Total intangible assets $ 4,548,843 $ 1,273,886 $ 1,165,744 $ 108,142 $ 132,780 $ 3,274,957 $ 3,383,099 The amortization on identifiable intangible assets for the three months ended December 31, 2023 and 2022 was $108,142 and $132,780, respectively. Amortization expense associated with the identifiable intangible assets is expected to be as follows: Amortization Expense January 2024 to December 2024 $ 432,564 January 2025 to December 2025 432,564 January 2026 to December 2026 432,564 January 2027 to December 2027 432,564 January 2028 to December 2028 432,564 After 1,112,137 Total $ 3,274,957 |
LEASE OBLIGATIONS
LEASE OBLIGATIONS | 3 Months Ended |
Dec. 31, 2023 | |
LEASE OBLIGATIONS | |
LEASE OBLIGATIONS | 14. LEASE OBLIGATIONS The Company leases office space for SQP for $1,500 per month. The lease, which was originally signed on March 25, 2021, is for a period of two years with five one-year renewals available immediately following the end of the base term. The Company has only committed to a one-year renewal and is evaluating the intent to renew for additional periods. The Company has two lease agreements for construction equipment with a combined amount of $160,000. The leases have a term of twenty-two months with a stated interest rate of 0%, combined monthly installment payments of $6,645 and are cancellable at any time without penalty. The Company has the right to purchase the equipment at the expiration of the leases by applying the two-month deposit paid. The related assets and finance lease obligations associated with these lease agreements are included in the consolidated balance sheets within property, plant and equipment and long-term debt. The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC transaction. The first operating lease, for the Hurricane, West Virginia facility, had a net present value of $236,000 at inception, and a carrying value of $106,000 at December 31, 2023. The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $144,000 at inception, and a carrying value of $40,000 at December 31, 2023. The 4.5% interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception. The Company has a right-of-use operating lease with Enterprise Fleet Management, Inc. (Enterprise) acquired on August 11, 2022, as part of the Ryan Environmental acquisition. This lease agreement was initially for thirty-one vehicles with a net present value of $1.2 million. The Company had sixty-nine vehicles on lease at December 31, 2023. The right-of-use operating lease has a carrying value of $2.5 million at December 31, 2023. Each vehicle leased under the master lease program has its own implicit rate ranging from 12.8% to 15.6%. The Company has a right-of-use operating lease with RICA Developers, LLC acquired on August 12, 2022 and renewed for one year effective October 1, 2023. This lease, for the Bridgeport, West Virginia facility, had a net present value of $125,000 at inception and a carrying value of $83,000 at December 31, 2023. The 8.5% interest rate on the operating lease was based on the Company’s incremental borrowing rate at renewal. The Company has a right-of-use operating lease acquired on March 28, 2023. This lease, for the Winchester, Kentucky facility, had a net present value of $290,000 at inception and a carrying value of $231,000 at December 31, 2023. The 7.75% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. Schedules related to the Company’s operating leases at December 31, 2023 can be found below: Operating Lease-Weighted Average Remaining Term Present value of Years left remaining liability Lease end Fiscal year end Operating lease 1 1.3 $ 106,295 4/30/2025 2025 Operating lease 2 0.4 40,426 5/31/2024 2024 Operating lease 3 4.0 2,459,525 12/31/2027 2027 Operating lease 4 0.8 82,974 9/30/2024 2024 Operating lease 5 2.3 231,313 3/31/2026 2026 $ 2,920,533 Weighted average remaining term 3.6 years Operating Lease Maturity Schedule 2024 $ 1,419,055 2025 1,048,659 2026 711,465 2027 330,132 3,509,311 Less amounts representing interest (588,778) Present value of operating lease liabilities $ 2,920,533 Three Months Ended Three Months Ended Operating Lease Expense December 31, 2023 December 31, 2022 Amortization Operating lease 1 $ 26,705 $ 18,841 Operating lease 2 16,605 15,559 Operating lease 3 161,724 68,528 Operating lease 4 41,728 29,612 Operating lease 5 30,858 — Total amortization 277,620 132,540 Interest Operating lease 1 1,295 2,160 Operating lease 2 504 1,219 Operating lease 3 68,910 12,570 Operating lease 4 1,472 1,162 Operating lease 5 4,206 — Total interest 76,387 17,111 Total amortization and interest $ 354,007 $ 149,651 Three Months Ended Three Months Ended Cash Paid for Operating Leases December 31, 2023 December 31, 2022 Operating lease 1 $ 28,000 $ 21,001 Operating lease 2 17,109 16,778 Operating lease 3 230,634 81,098 Operating lease 4 43,200 30,774 Operating lease 5 35,064 — $ 354,007 $ 149,651 The Company rents equipment for use on construction projects with rental agreements being week to week or month to month. Rental expense can vary by reporting period due to equipment requirements on construction projects and the availability of Company owned equipment. Rental expense, which is included in cost of goods sold on the consolidated statements of income, was $5.4 million and $2.7 million, respectively, for the three months ended December 31, 2023 and 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS On November 15, 2023, the Company’s Board of Directors approved an annual dividend of $0.06 per common share. The 2024 dividend was paid on January 2, 2024 to holders of record as of December 15, 2023. While this is expected to be an annual dividend, factors such as income from operations, cash flows, and overall financial outlook may affect future dividend payments. Management has evaluated all subsequent events for accounting and disclosure. There have been no other material events during the period, other than noted above, that would either impact the results reflected in the report or the Company’s results going forward. |
BUSINESS AND ORGANIZATION (Poli
BUSINESS AND ORGANIZATION (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
BUSINESS AND ORGANIZATION | |
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, 2023, and 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on January 16,2024. 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 (“U.S. GAAP”) 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 months ended December 31, 2023 and 2022 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, its wholly owned subsidiaries West Virginia Pipeline, SQP, Ryan Construction, Tri-State Paving and C.J. Hughes and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services, West Virginia Pipeline, SQP, Ryan Construction, Tri-State Paving and C.J. Hughes and its subsidiaries. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and loss during the reporting period. Actual results could differ materially from those estimates. |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
DISAGGREGATION OF REVENUE | |
Schedule of disaggregation of revenue | Three Months Ended December 31, 2023 Electrical, Gas & Water Gas & Petroleum Mechanical, & Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 28,689,030 $ 28,689,030 Unit price contracts 17,082,895 27,848,185 2,262,695 47,193,775 Cost plus and T&M contracts — 715,058 13,565,324 14,280,382 Total revenue from contracts $ 17,082,895 $ 28,563,243 $ 44,517,049 $ 90,163,187 Earned over time $ 4,372,583 $ 27,848,185 $ 30,227,914 $ 62,448,682 Earned at point in time 12,710,312 715,058 14,289,135 27,714,505 Total revenue from contracts $ 17,082,895 $ 28,563,243 $ 44,517,049 $ 90,163,187 Three Months Ended December 31, 2022 Electrical, Gas &Water Gas & Petroleum Mechanical, & Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 17,186,157 $ 17,186,157 Unit price contracts 12,389,558 16,840,150 1,537,438 30,767,146 Cost plus and T&M contracts — — 12,089,282 12,089,282 Total revenue from contracts $ 12,389,558 $ 16,840,150 $ 30,812,877 $ 60,042,585 Earned over time $ 4,878,647 $ 16,840,150 $ 29,890,148 $ 51,608,945 Earned at point in time 7,510,911 — 922,729 8,433,640 Total revenue from contracts $ 12,389,558 $ 16,840,150 $ 30,812,877 $ 60,042,585 |
CONTRACT BALANCES (Tables)
CONTRACT BALANCES (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
CONTRACT BALANCES | |
Schedule of accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities | December 31, 2023 September 30, 2023 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 43,166,005 $ 51,168,895 $ (8,002,890) Contract assets Cost and estimated earnings in excess of billings $ 21,795,592 $ 15,955,220 $ 5,840,372 Contract liabilities Billings in excess of cost and estimated earnings $ 17,663,714 $ 17,743,001 $ (79,287) |
UNCOMPLETED CONTRACTS (Tables)
UNCOMPLETED CONTRACTS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
UNCOMPLETED CONTRACTS | |
Schedule of costs, estimated earnings and billings on uncompleted contracts | December 31, 2023 September 30, 2023 Costs incurred on contracts in progress $ 369,542,545 $ 287,347,650 Estimated earnings, net of estimated losses 47,271,768 38,976,895 416,814,313 326,324,545 Less billings to date 412,682,435 328,112,326 $ 4,131,878 $ (1,787,781) Costs and estimated earnings in excess of billed on uncompleted contracts $ 21,795,592 $ 15,955,220 Less billings in excess of costs and estimated earnings on uncompleted contracts 17,663,714 17,743,001 $ 4,131,878 $ (1,787,781) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
Schedule of earnings per share | Three Months Ended Three Months Ended December 31, December 31, 2023 2022 Net income $ 2,042,195 $ 138,374 Weighted average shares outstanding-basic 16,567,185 16,667,185 Weighted average shares outstanding-diluted 16,607,185 16,667,185 Earnings per share available to common shareholders $ 0.12 $ 0.01 Earnings per share available to common shareholders-diluted $ 0.12 $ 0.01 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of components of income taxes | Three Months Ended December 31, 2023 December 31, 2022 Federal Current $ 214,795 $ 266,966 Deferred 602,038 (329,064) Total 816,833 (62,098) State Current 61,370 75,299 Deferred 179,832 (92,813) Total 241,202 (17,514) Total income tax expense (benefit) $ 1,058,035 $ (79,612) |
Schedule of income tax effects to deferred tax assets and liabilities | December 31, September 30, 2023 2023 Deferred tax liabilities Property and equipment $ 7,937,214 $ 8,141,025 Other 608,562 588,632 Total deferred tax liabilities $ 8,545,776 $ 8,729,657 Deferred income tax assets Accruals & other $ 893,398 $ 948,704 Net operating loss carryforward — 910,443 Total deferred tax assets $ 893,398 $ 1,859,147 Total net deferred tax liabilities $ 7,652,378 $ 6,870,510 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM AND LONG-TERM DEBT | |
Schedule of line of credit is limited to a borrowing base | December 31, 2023 September 30, 2023 Eligible borrowing base $ 15,950,633 $ 23,942,868 Borrowed on line of credit 4,700,000 8,712,915 Line of credit balance available $ 11,250,633 $ 15,229,953 Interest rate 8.5 % 8.5 % |
Schedule of short-term and long-term debt | December 31, September 30, 2023 2023 Line of credit payable to bank, monthly interest with variable rate of 8.5% at December 31, 2023, final payment due by June 28, 2024, guaranteed by certain directors of the Company. $ 4,700,000 $ 8,712,915 Note payable to bank, due in monthly installments totaling $202,000, including fixed interest at 7.25%, final payment due June 2028, secured by equipment, guaranteed by certain directors of the Company. 9,155,573 8,487,085 Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. 10,209,464 10,184,320 Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853 with fixed interest at 4.25%, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. 1,671,534 1,790,051 Notes payable to finance companies, due in monthly installments totaling $51,000 at December 31, 2023 and $50,000 at September 30, 2023, including interest ranging from 0.00% to 6.92%, final payments due January 2024 through August 2026, secured by equipment. 1,172,920 1,290,148 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $327,000 in calendar year 2023 and $282,000 in calendar year 2022, including interest rate at 6.70%, final payment due December 2023. — 950,235 Notes payable to bank, due in monthly installments totaling $7,848, including interest at 4.82%, final payment due November 2034 secured by building and property. 798,448 813,242 Notes payable to bank, due in monthly installments totaling $12,580, including variable interest of 9.5% at December 31, 2023, final payment due November 2025 secured by building and property, guaranteed by certain directors of the Company. 263,836 294,761 Notes payable to bank, due in monthly installments totaling $59,932, including fixed interest at 6.0%, final payment due October 2027 secured by receivables and equipment, guaranteed by certain directors of the Company. 2,460,330 2,601,404 Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000, including fixed interest at 3.25%, final payment due December 31, 2026, unsecured. 917,500 1,660,000 Notes payable to bank, interest at 4.25% of outstanding balance due in monthly installments between January 2021 and January 2022. Beginning February 2022, note payments due in monthly installments totaling $68,150, including variable interest of 9.5% at December 31, 2023, with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company. 1,713,569 1,873,831 Term note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $129,910, fixed interest at 4.50%, final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. 5,369,062 5,698,761 Notes payable to Corns Enterprises, $1,000,000 with fair value of $936,000, due in annual installments totaling $250,000, including fixed interest at 3.50%, final payment due April 29, 2026, unsecured. 234,262 468,523 Total debt $ 38,666,498 $ 44,825,276 Less current maturities 21,636,069 25,954,747 Total long term debt, less current maturities $ 17,030,429 $ 18,870,529 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
Summary of changes in goodwill | December 31, September 30, 2023 2023 Beginning balance $ 4,087,554 $ 4,087,554 Acquired — — Ending balance $ 4,087,554 $ 4,087,554 |
Schedule of intangible assets subject to amortization | Amortization Amortization Accumulated Accumulated and Impairment and Impairment Remaining Life Amortization and Amortization and Three Months Three Months (in months) at Impairment at Impairment at Ended December 31, Ended December 31, Net Book Value Net Book Value Intangible assets: December 31, 2023 Original Cost December 31, 2023 September 30, 2023 2023 2022 at December 31, 2023 at September 30, 2023 West Virginia Pipeline: Customer Relationships 84 $ 2,209,724 662,903 $ 607,661 55,242 55,242 $ 1,546,821 $ 1,602,063 Tradename 84 263,584 79,091 72,500 6,591 6,595 184,493 191,084 Non-competes — 83,203 83,203 83,203 — 10,397 — — Revolt Energy: Employment agreement/non-compete — 100,000 100,000 100,000 — 4,167 — — Tri-State Paving: Customer Relationships 100 1,649,159 274,860 233,631 41,229 41,280 1,374,299 1,415,528 Tradename 100 203,213 33,869 28,789 5,080 5,082 169,344 174,424 Non-competes — 39,960 39,960 39,960 — 10,017 — — Total intangible assets $ 4,548,843 $ 1,273,886 $ 1,165,744 $ 108,142 $ 132,780 $ 3,274,957 $ 3,383,099 |
Schedule of amortization on identifiable intangible assets | Amortization Expense January 2024 to December 2024 $ 432,564 January 2025 to December 2025 432,564 January 2026 to December 2026 432,564 January 2027 to December 2027 432,564 January 2028 to December 2028 432,564 After 1,112,137 Total $ 3,274,957 |
LEASE OBLIGATIONS (Tables)
LEASE OBLIGATIONS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
LEASE OBLIGATIONS | |
Schedule of information about operating leases | Present value of Years left remaining liability Lease end Fiscal year end Operating lease 1 1.3 $ 106,295 4/30/2025 2025 Operating lease 2 0.4 40,426 5/31/2024 2024 Operating lease 3 4.0 2,459,525 12/31/2027 2027 Operating lease 4 0.8 82,974 9/30/2024 2024 Operating lease 5 2.3 231,313 3/31/2026 2026 $ 2,920,533 Weighted average remaining term 3.6 years Three Months Ended Three Months Ended Operating Lease Expense December 31, 2023 December 31, 2022 Amortization Operating lease 1 $ 26,705 $ 18,841 Operating lease 2 16,605 15,559 Operating lease 3 161,724 68,528 Operating lease 4 41,728 29,612 Operating lease 5 30,858 — Total amortization 277,620 132,540 Interest Operating lease 1 1,295 2,160 Operating lease 2 504 1,219 Operating lease 3 68,910 12,570 Operating lease 4 1,472 1,162 Operating lease 5 4,206 — Total interest 76,387 17,111 Total amortization and interest $ 354,007 $ 149,651 Three Months Ended Three Months Ended Cash Paid for Operating Leases December 31, 2023 December 31, 2022 Operating lease 1 $ 28,000 $ 21,001 Operating lease 2 17,109 16,778 Operating lease 3 230,634 81,098 Operating lease 4 43,200 30,774 Operating lease 5 35,064 — $ 354,007 $ 149,651 |
Schedule of operating lease maturity schedule | Operating Lease Maturity Schedule 2024 $ 1,419,055 2025 1,048,659 2026 711,465 2027 330,132 3,509,311 Less amounts representing interest (588,778) Present value of operating lease liabilities $ 2,920,533 |
ACCOUNTING FOR PPP LOANS (Detai
ACCOUNTING FOR PPP LOANS (Details) - PPP Loans - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 27, 2020 | Apr. 30, 2023 | Sep. 30, 2021 | Apr. 07, 2020 | |
ACCOUNTING FOR PPP LOANS | ||||
Lender aggregate principal amount | $ 13.1 | |||
Unanimously voted to return loans | $ 3.3 | |||
Amount of PPP loans to fund operations | $ 9.8 | |||
PPP loans received | $ 9.8 | |||
Short-term borrowings due to accrued interest | $ 9.8 |
DISAGGREGATION OF REVENUE (Deta
DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
DISAGGREGATION OF REVENUE | ||
Operating revenue | $ 90,163,187 | $ 60,042,585 |
Earned over time | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 62,448,682 | 51,608,945 |
Earned at point in time | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 27,714,505 | 8,433,640 |
Lump sum contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 28,689,030 | 17,186,157 |
Unit price contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 47,193,775 | 30,767,146 |
Cost plus and T&M contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 14,280,382 | 12,089,282 |
Gas & Water Distribution | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 17,082,895 | 12,389,558 |
Gas & Water Distribution | Earned over time | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 4,372,583 | 4,878,647 |
Gas & Water Distribution | Earned at point in time | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 12,710,312 | 7,510,911 |
Gas & Water Distribution | Lump sum contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 0 | 0 |
Gas & Water Distribution | Unit price contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 17,082,895 | 12,389,558 |
Gas & Water Distribution | Cost plus and T&M contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 0 | 0 |
Gas & Petroleum Transmission | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 28,563,243 | 16,840,150 |
Gas & Petroleum Transmission | Earned over time | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 27,848,185 | 16,840,150 |
Gas & Petroleum Transmission | Earned at point in time | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 715,058 | 0 |
Gas & Petroleum Transmission | Lump sum contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 0 | 0 |
Gas & Petroleum Transmission | Unit price contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 27,848,185 | 16,840,150 |
Gas & Petroleum Transmission | Cost plus and T&M contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 715,058 | 0 |
Electrical, Mechanical, and General | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 44,517,049 | 30,812,877 |
Electrical, Mechanical, and General | Earned over time | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 30,227,914 | 29,890,148 |
Electrical, Mechanical, and General | Earned at point in time | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 14,289,135 | 922,729 |
Electrical, Mechanical, and General | Lump sum contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 28,689,030 | 17,186,157 |
Electrical, Mechanical, and General | Unit price contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | 2,262,695 | 1,537,438 |
Electrical, Mechanical, and General | Cost plus and T&M contracts | ||
DISAGGREGATION OF REVENUE | ||
Operating revenue | $ 13,565,324 | $ 12,089,282 |
CONTRACT BALANCES - Accounts re
CONTRACT BALANCES - Accounts receivable-trade, net of allowance for doubtful accounts (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
CONTRACT BALANCES | |||
Accounts receivable-trade, net of allowance for doubtful accounts | $ 43,166,005 | $ 51,168,895 | |
Change in accounts receivable-trade, net of allowance for doubtful accounts | (8,002,890) | $ (3,153,393) | |
Contract assets | |||
Cost and estimated earnings in excess of billings | 21,795,592 | 15,955,220 | |
Change in cost and estimated earnings in excess of billings | 5,840,372 | (1,711,912) | |
Contract liabilities | |||
Billings in excess of cost and estimated earnings | 17,663,714 | $ 17,743,001 | |
Change in billings in excess of cost and estimated earnings | $ (79,287) | $ 2,584,305 |
CONTRACT BALANCES - Additional
CONTRACT BALANCES - Additional information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
CONTRACT BALANCES | |
Recognized revenue included in contract liability | $ 13.5 |
Minimum | |
CONTRACT BALANCES | |
Billing and payment term | 30 days |
Maximum | |
CONTRACT BALANCES | |
Billing and payment term | 45 days |
PERFORMANCE OBLIGATIONS (Detail
PERFORMANCE OBLIGATIONS (Details) | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
PERFORMANCE OBLIGATIONS | |
Recognized revenue | $ 0 |
Amount of remaining unsatisfied performance obligations | $ 132,200,000 |
UNCOMPLETED CONTRACTS - Summary
UNCOMPLETED CONTRACTS - Summary of costs, estimated earnings, and billings on uncompleted contracts (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
UNCOMPLETED CONTRACTS | ||
Costs incurred on contracts in progress | $ 369,542,545 | $ 287,347,650 |
Estimated earnings, net of estimated losses | 47,271,768 | 38,976,895 |
Costs of uncompleted contracts including net estimated earnings | 416,814,313 | 326,324,545 |
Less billings to date | 412,682,435 | 328,112,326 |
Unbilled contracts | 4,131,878 | (1,787,781) |
Costs and estimated earnings in excess of billed on uncompleted contracts | 21,795,592 | 15,955,220 |
Billings in excess of cost and estimated earnings | 17,663,714 | 17,743,001 |
Unbilled contracts receivable | $ 4,131,878 | $ 1,787,781 |
UNCOMPLETED CONTRACTS - Backlog
UNCOMPLETED CONTRACTS - Backlog (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
UNCOMPLETED CONTRACTS | ||
Backlog | $ 185.9 | $ 229.8 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
FAIR VALUE MEASUREMENTS | ||
Aggregate principal amount of fixed-rate debt | $ 31.9 | $ 33.8 |
Fair value of debt | $ 30.3 | $ 32.1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
EARNINGS PER SHARE | ||
Net income | $ 2,042,195 | $ 138,374 |
Weighted average shares outstanding-basic | 16,567,185 | 16,667,185 |
Weighted average shares outstanding-diluted | 16,607,185 | 16,667,185 |
Earnings per share available to common shareholders | $ 0.12 | $ 0.01 |
Earnings per share available to common shareholders-diluted | $ 0.12 | $ 0.01 |
INCOME TAXES - Components of in
INCOME TAXES - Components of income taxes (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal | ||
Current | $ 214,795 | $ 266,966 |
Deferred | 602,038 | (329,064) |
Total | 816,833 | (62,098) |
State | ||
Current | 61,370 | 75,299 |
Deferred | 179,832 | (92,813) |
Total | 241,202 | (17,514) |
Total income tax expense (benefit) | $ 1,058,035 | $ (79,612) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
INCOME TAXES | |||
Federal rate | 21% | ||
State rate | 6% | ||
Effective tax rate | 34.10% | (135.50%) | |
Federal | |||
INCOME TAXES | |||
Net operating loss carryforwards | $ 0 | $ 3 |
INCOME TAXES - Summary of incom
INCOME TAXES - Summary of income tax effects of temporary differences giving rise to the deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Deferred tax liabilities | ||
Property and equipment | $ 7,937,214 | $ 8,141,025 |
Other | 608,562 | 588,632 |
Total deferred tax liabilities | 8,545,776 | 8,729,657 |
Deferred income tax assets | ||
Accruals & other | 893,398 | 948,704 |
Net operating loss carryforward | 910,443 | |
Total deferred tax assets | 893,398 | 1,859,147 |
Total net deferred tax liabilities | $ 7,652,378 | $ 6,870,510 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Operating line of credit (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
SHORT-TERM AND LONG-TERM DEBT | ||
Eligible borrowing base | $ 15,950,633 | $ 23,942,868 |
Borrowed on line of credit | 4,700,000 | 8,712,915 |
Line of credit balance available | $ 11,250,633 | $ 15,229,953 |
Interest rate | 8.50% | 8.50% |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | $ 38,666,498 | $ 44,825,276 |
Less current maturities | 21,636,069 | 25,954,747 |
Total long term debt | 17,030,429 | 18,870,529 |
Line of credit payable to bank, final payment due by June 28, 2024 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 4,700,000 | 8,712,915 |
Note payable to bank, final payment due June 2028 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 9,155,573 | 8,487,085 |
Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 10,209,464 | 10,184,320 |
Term note payable to United Bank, WV Pipeline acquisition, final payment due by March 25, 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 1,671,534 | 1,790,051 |
Note payable to finance companies due January 2024 through August 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 1,172,920 | 1,290,148 |
Notes payable to finance companies, final payment, due December 2023 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 950,235 | |
Notes payable to bank, final payment due November 2034 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 798,448 | 813,242 |
Notes payable to banks due October 2027 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 2,460,330 | 2,601,404 |
Notes payable to David and Daniel Bolton due final payment December 31, 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 917,500 | 1,660,000 |
Notes payable to bank, monthly interest rate at 9.50, final payment due September 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 1,713,569 | 1,873,831 |
Notes payable to bank, monthly interest rate at 9.5, final payment due September 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 263,836 | 294,761 |
Term notes payable to United Bank, Tri-State Paving acquisition, final payment due by June 1, 2027 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 5,369,062 | 5,698,761 |
Notes payable to Corns Enterprises, final payment due April 29, 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | $ 234,262 | $ 468,523 |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt - Parenthetical (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
SHORT-TERM AND LONG-TERM DEBT | ||||
Fair value of debt | $ 30,300,000 | $ 32,100,000 | ||
Line of credit payable to bank, final payment due by June 28, 2024 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 8.50% | |||
Note payable to bank, final payment due June 2028 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 7.25% | |||
Note payable in monthly or annual installments | $ 202,000 | |||
Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 1% | |||
Term note payable to United Bank, WV Pipeline acquisition, final payment due by March 25, 2026 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 4.25% | |||
Note payable in monthly or annual installments | $ 64,853 | |||
Note payable to finance companies due January 2024 through August 2026 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Note payable in monthly or annual installments | $ 51,000 | $ 50,000 | ||
Note payable to finance companies due January 2024 through August 2026 | Minimum | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 0% | |||
Note payable to finance companies due January 2024 through August 2026 | Maximum | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 6.92% | |||
Notes payable to finance companies, final payment, due December 2023 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 6.70% | |||
Note payable in monthly or annual installments | $ 327,000 | $ 282,000 | ||
Notes payable to bank, final payment due November 2034 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 4.82% | |||
Note payable in monthly or annual installments | $ 7,848 | |||
Notes payable to bank, final payment due November 2025 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 9.50% | |||
Note payable in monthly or annual installments | $ 12,580 | |||
Notes payable to banks due October 2027 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 6% | |||
Note payable in monthly or annual installments | $ 59,932 | |||
Notes payable to David and Daniel Bolton due final payment December 31, 2026 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 3.25% | |||
Note payable in monthly or annual installments | $ 500,000 | |||
Notes payable to bank, monthly interest rate at 9.5, final payment due September 2026 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 9.50% | |||
Note payable in monthly or annual installments | $ 68,150 | |||
Debt instrument, Interest rate during period | 4.25% | |||
Term notes payable to United Bank, Tri-State Paving acquisition, final payment due by June 1, 2027 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 4.50% | |||
Note payable in monthly or annual installments | $ 129,910 | |||
Notes payable to Corns Enterprises, final payment due April 29, 2026 | ||||
SHORT-TERM AND LONG-TERM DEBT | ||||
Interest rate | 3.50% | |||
Note payable in monthly or annual installments | $ 1,000,000 | |||
Notes payable on annual installments | 250,000 | |||
Fair value of debt | $ 936,000 |
SHORT-TERM AND LONG-TERM DEBT_4
SHORT-TERM AND LONG-TERM DEBT - Additional information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 27, 2020 USD ($) | Apr. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2021 USD ($) | Jan. 19, 2023 USD ($) | Jul. 13, 2022 USD ($) | Apr. 07, 2020 USD ($) | |
SHORT-TERM AND LONG-TERM DEBT | ||||||||
Line of credit | $ 15,950,633 | $ 23,942,868 | ||||||
Line of credit remaining borrowing capacity | $ 11,250,633 | $ 15,229,953 | ||||||
Interest rate | 8.50% | 8.50% | ||||||
Line of credit balance available | $ 11,250,633 | $ 15,229,953 | ||||||
Ratio to be maintained by borrower for maximum senior funded debt to EBDITA | 3.5 | |||||||
Insurance policy premium outstanding | $ 0 | $ 950,000 | ||||||
PPP Loans | ||||||||
SHORT-TERM AND LONG-TERM DEBT | ||||||||
Lender aggregate principal amount | $ 13,100,000 | |||||||
Unanimously voted to return loans | $ 3,300,000 | |||||||
Amount of PPP loans to fund operations | $ 9,800,000 | |||||||
PPP loans received | $ 9,800,000 | |||||||
Short-term borrowings due to accrued interest | $ 9,800,000 | |||||||
United Bank, Inc. | Revolving credit facility | ||||||||
SHORT-TERM AND LONG-TERM DEBT | ||||||||
Line of credit | $ 30,000,000 | $ 15,000,000 | ||||||
Interest rate on the line of credit description | “Wall Street Journal” Prime Rate | |||||||
Interest rate on line of credit | 4.99% | |||||||
Minimum tangible net worth | $ 28,000,000 | |||||||
Minimum traditional debt service coverage ratio | 1.50x | |||||||
Minimum current ratio | 1.20x | |||||||
Maximum debt to tangible net worth ratio | 2.75x |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Sep. 30, 2023 | |
Goodwill | ||
Beginning balance | $ 4,087,554 | $ 4,087,554 |
Acquired | 0 | 0 |
Ending balance | $ 4,087,554 | $ 4,087,554 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible assets subject to amortization (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | ||||
Original Cost | $ 4,548,843 | $ 4,548,843 | ||
Accumulated Amortization and Impairment | 1,273,886 | 108,142 | $ 132,780 | $ 1,165,744 |
Net Book Value | $ 3,274,957 | 3,274,957 | 3,383,099 | |
Accumulated Amortization and impairment on identifiable intangible assets | 108,142 | 132,780 | ||
Goodwill impairment | $ 0 | 0 | ||
Customer Relationships | West Virginia Pipeline | ||||
GOODWILL AND INTANGIBLE ASSETS | ||||
Remaining Life | 84 months | 84 months | ||
Original Cost | $ 2,209,724 | $ 2,209,724 | ||
Accumulated Amortization and Impairment | 662,903 | 55,242 | 55,242 | 607,661 |
Net Book Value | $ 1,546,821 | $ 1,546,821 | 1,602,063 | |
Customer Relationships | Tri-State Paving | ||||
GOODWILL AND INTANGIBLE ASSETS | ||||
Remaining Life | 100 months | 100 months | ||
Original Cost | $ 1,649,159 | $ 1,649,159 | ||
Accumulated Amortization and Impairment | 274,860 | 41,229 | 41,280 | 233,631 |
Net Book Value | $ 1,374,299 | $ 1,374,299 | 1,415,528 | |
Tradename | West Virginia Pipeline | ||||
GOODWILL AND INTANGIBLE ASSETS | ||||
Remaining Life | 84 months | 84 months | ||
Original Cost | $ 263,584 | $ 263,584 | ||
Accumulated Amortization and Impairment | 79,091 | 6,591 | 6,595 | 72,500 |
Net Book Value | $ 184,493 | $ 184,493 | 191,084 | |
Tradename | Tri-State Paving | ||||
GOODWILL AND INTANGIBLE ASSETS | ||||
Remaining Life | 100 months | 100 months | ||
Original Cost | $ 203,213 | $ 203,213 | ||
Accumulated Amortization and Impairment | 33,869 | 5,080 | 5,082 | 28,789 |
Net Book Value | 169,344 | 169,344 | 174,424 | |
Non-competes | West Virginia Pipeline | ||||
GOODWILL AND INTANGIBLE ASSETS | ||||
Original Cost | 83,203 | 83,203 | ||
Accumulated Amortization and Impairment | 83,203 | 10,397 | 83,203 | |
Non-competes | Tri-State Paving | ||||
GOODWILL AND INTANGIBLE ASSETS | ||||
Original Cost | 39,960 | 39,960 | ||
Accumulated Amortization and Impairment | 39,960 | 10,017 | 39,960 | |
Employment agreement/non-compete | Revolt Energy | ||||
GOODWILL AND INTANGIBLE ASSETS | ||||
Original Cost | 100,000 | $ 100,000 | ||
Accumulated Amortization and Impairment | $ 100,000 | $ 4,167 | $ 100,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Identifiable intangible assets (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Amortization expense | ||
January 2024 to December 2024 | $ 432,564 | |
January 2025 to December 2025 | 432,564 | |
January 2026 to December 2026 | 432,564 | |
January 2027 to December 2027 | 432,564 | |
January 2028 to December 2028 | 432,564 | |
After | 1,112,137 | |
Total | $ 3,274,957 | $ 3,383,099 |
LEASE OBLIGATIONS (Details)
LEASE OBLIGATIONS (Details) | 3 Months Ended | |||||||
Aug. 11, 2022 USD ($) item | Apr. 29, 2022 USD ($) item | Mar. 25, 2021 Y | Dec. 31, 2023 USD ($) agreement item | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | Mar. 28, 2023 USD ($) | Aug. 12, 2022 USD ($) | |
LEASE OBLIGATIONS | ||||||||
Operating lease payments for office space per month | $ 1,500 | |||||||
Term of operating lease | 2 years | |||||||
Number of renewable options available | Y | 5 | |||||||
Operating lease, renewal term | 1 year | |||||||
Number of financing leases entered | agreement | 2 | |||||||
Finance lease, value | $ 160,000 | |||||||
Term of finance leases | 22 months | |||||||
Finance lease, interest rate | 0% | |||||||
Finance lease, monthly installment payments | $ 6,645 | |||||||
Option to cancel the finance lease | false | |||||||
Number of right of use operating leases | item | 2 | |||||||
Carrying value | $ 1,229,348 | $ 1,075,815 | ||||||
Rental expense | 5,400,000 | $ 2,700,000 | ||||||
Operating Lease for Hurricane, WV Facility | ||||||||
LEASE OBLIGATIONS | ||||||||
Net present value | $ 236,000 | |||||||
Carrying value | 106,000 | |||||||
Operating Lease for Chattanooga, Tennessee Facility | ||||||||
LEASE OBLIGATIONS | ||||||||
Net present value | $ 144,000 | |||||||
Carrying value | 40,000 | |||||||
Interest rate on operating lease | 4.50% | |||||||
Operating Lease with Enterprise Fleet Management, Inc | ||||||||
LEASE OBLIGATIONS | ||||||||
Net present value | $ 1,200,000 | |||||||
Carrying value | $ 2,500,000 | |||||||
Number of vehicles to be used | item | 31 | 69 | ||||||
Operating Lease with Enterprise Fleet Management, Inc | Minimum | ||||||||
LEASE OBLIGATIONS | ||||||||
Vehicle lease program rate on operating lease | 12.80% | |||||||
Operating Lease with Enterprise Fleet Management, Inc | Maximum | ||||||||
LEASE OBLIGATIONS | ||||||||
Vehicle lease program rate on operating lease | 15.60% | |||||||
Operating Lease with RICA Developers, LLC | ||||||||
LEASE OBLIGATIONS | ||||||||
Net present value | $ 125,000 | |||||||
Carrying value | $ 83,000 | |||||||
Interest rate on operating lease | 8.50% | |||||||
Operating Lease for Winchester, Kentucky Facility | ||||||||
LEASE OBLIGATIONS | ||||||||
Net present value | $ 290,000 | |||||||
Carrying value | $ 231,000 | |||||||
Interest rate on operating lease | 7.75% |
LEASE OBLIGATIONS - Operating l
LEASE OBLIGATIONS - Operating lease-weighted average remaining term (Details) | Dec. 31, 2023 USD ($) |
LEASE OBLIGATIONS | |
Weighted average remaining term | 3 years 7 months 6 days |
Present value of remaining liability | $ 2,920,533 |
Operating lease 1 | |
LEASE OBLIGATIONS | |
Weighted average remaining term | 1 year 3 months 18 days |
Present value of remaining liability | $ 106,295 |
Operating lease 2 | |
LEASE OBLIGATIONS | |
Weighted average remaining term | 4 months 24 days |
Present value of remaining liability | $ 40,426 |
Operating lease 3 | |
LEASE OBLIGATIONS | |
Weighted average remaining term | 4 years |
Present value of remaining liability | $ 2,459,525 |
Operating lease 4 | |
LEASE OBLIGATIONS | |
Weighted average remaining term | 9 months 18 days |
Present value of remaining liability | $ 82,974 |
Operating lease 5 | |
LEASE OBLIGATIONS | |
Weighted average remaining term | 2 years 3 months 18 days |
Present value of remaining liability | $ 231,313 |
LEASE OBLIGATIONS - Operating_2
LEASE OBLIGATIONS - Operating lease maturity schedule (Details) | Dec. 31, 2023 USD ($) |
LEASE OBLIGATIONS | |
2024 | $ 1,419,055 |
2025 | 1,048,659 |
2026 | 711,465 |
2027 | 330,132 |
Operating lease liability | 3,509,311 |
Less amounts representing interest | (588,778) |
Present value of operating lease liabilities | $ 2,920,533 |
LEASE OBLIGATIONS - Operating_3
LEASE OBLIGATIONS - Operating lease expense (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASE OBLIGATIONS | ||
Total amortization | $ 277,620 | $ 132,540 |
Total interest | 76,387 | 17,111 |
Total amortization and interest | 354,007 | 149,651 |
Cash Paid for Operating Leases | 354,007 | 149,651 |
Operating lease 1 | ||
LEASE OBLIGATIONS | ||
Total amortization | 26,705 | 18,841 |
Total interest | 1,295 | 2,160 |
Cash Paid for Operating Leases | 28,000 | 21,001 |
Operating lease 2 | ||
LEASE OBLIGATIONS | ||
Total amortization | 16,605 | 15,559 |
Total interest | 504 | 1,219 |
Cash Paid for Operating Leases | 17,109 | 16,778 |
Operating lease 3 | ||
LEASE OBLIGATIONS | ||
Total amortization | 161,724 | 68,528 |
Total interest | 68,910 | 12,570 |
Cash Paid for Operating Leases | 230,634 | 81,098 |
Operating lease 4 | ||
LEASE OBLIGATIONS | ||
Total amortization | 41,728 | 29,612 |
Total interest | 1,472 | 1,162 |
Cash Paid for Operating Leases | 43,200 | $ 30,774 |
Operating lease 5 | ||
LEASE OBLIGATIONS | ||
Total amortization | 30,858 | |
Total interest | 4,206 | |
Cash Paid for Operating Leases | $ 35,064 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | 3 Months Ended | |
Nov. 15, 2023 | Dec. 31, 2023 | |
SUBSEQUENT EVENTS | ||
Annual dividend per common share approved | $ 0.06 | $ 0.06 |