Energy Services of America Company Announces results for the three months ended
December 31,2008. Energy Services of America (ESA) announced today that the
company had a loss of $2,194,509 for the three months ended December 31, 2008
compared to a profit of $354,786 for the same period in 2007. Marshall T.
Reynolds, Chairman and Chief Executive Officer, noted that while the company was
not happy with incurring the loss for the quarter, this industry normally has
weak performance in the fourth calendar quarter (first fiscal quarter for ESA)
as well as its weakest performance in the first calendar quarter of the year,
reflecting lower construction during the winter season. "This loss was the
result of two particular projects at one of our operating subsidiaries which
lost $3.2 million for the quarter and those losses more than offset the normal
performance at the other subsidiaries. The losses resulted from inclement
weather and other adverse working conditions which hampered progress on the work
on these projects during the quarter. Excluding the losses on those two
projects, the results would have been at close a loss of approximately $200
thousand or $0.02 per share ( basic and diluted). We believe that this was an
unusual occurrence and not indicative of future performance. The need for
additional pipelines to get natural gas to consumers still exists and looks to
continue in the foreseeable future." Edsel Burns, president of ESA echoed Mr.
Reynolds comments. "While there was a loss in the first quarter as a result of
the two projects discussed by Mr. Reynolds and while the second quarter normally
has weaker performance due to inclement weather, we remain optimistic about the
company's long term prospects and the excellent prospects in the future." Key
information at December 31, 2008 was as follows:
Energy Services of America Corporation
Key Financial Information
Three months Three months
Ended Ended
December 31, December 31,
2008 2007
Actual
Revenues $33,679,046 $ -
Net Income (loss) ($2,194,509) $354,786
Earnings (loss) Per Share-Basic ($0.18) $0.03
Earnings (loss) Per Share-Diluted ($0.18) $0.03
Other information
Shares Outstanding 12,092,307
Total Assets $109,382,367
Total Liabilities $51,319,659
Total Equity $58,062,708
Stated Book Value per Share $4.80
Backlog at December 31 , 2008 $54,000,000
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Certain Statements contained in the release, including without limitation
statements including the word "believes," "anticipates," "intends," "expects" or
words of similar import, constitute "forward-looking statements" within the
meaning of section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Such forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements of the Company expressed or implied
by such forward-looking statements. Such factors include, among others, general
economic and business conditions, changes in business strategy or development
plans and other factors referenced in this release. Given these uncertainties,
prospective investors are cautioned not to place undue reliance on such
forward-looking statements. The Company disclaims any obligation to update any
such factors or to publicly announce the results of any revisions to any of the
forward-looking statements contained herein to reflect future events or
developments.