(Source: PRNewswire-FirstCall)
HUNTINGTON, W.Va., July 30 /PRNewswire-FirstCall/ -- Energy Services of America announced today that the company had a net income of $588,463 for the three months ended June 30, 2009 compared to net income of $178,109 for the same period in 2008. The increase in third quarter results reflects the company's execution of its original plan which was slowed down significantly by the severe recession the country is experiencing. The difficult economic environment during the past nine months resulted in the Company incurring a loss for the nine months ended June 30, 2009 of $4,474,088 compared to a profit of $717,619 for the prior year for the same nine month period.
Energy Services began as an operating company on August 15, 2008. A summary of the Company's net income performance since that time is as follows:
August 15-September 30, 2008 $2,055,722 Quarter ended December 31, 2008 (2,194,509) Quarter ended March 31, 2009 (2,868,042) Quarter ended June 30, 2009 588,463 Cumulative performance since August 15, 2008 ($2,418,366)
As was noted in our previous report on form 10-Q for the quarter ended December 31, 2008, our ST Pipeline subsidiary experienced significant losses on two jobs. These losses were due to unusual circumstances and were felt to be non recurring in nature. The net of tax losses on those two jobs amounted to $1,932,383. Accordingly, excluding those two jobs, the Company would have had net loss of $485,983 for the period from August 15, 2008 to June 30, 2009. While this performance certainly is not at the levels hoped for by management, given the severe recession, the performance is understandable and manageable.
Marshall T. Reynolds, Chairman and Chief Executive Officer, noted that he was pleased to show positive earnings for the quarter. "Given the economic uncertainties that have plagued the entire market, we are pleased to see a turnaround in the business of Energy Services. Further, we continue to see signs of improvement with a backlog currently of almost $50 million and numerous projects coming out for bid for both the remainder of 2009 and for 2010. We are very encouraged that current work levels and apparent work levels for 2010 look very strong."
Edsel R. Burns, president of ESA, echoed Mr. Reynolds' comments. "The uncertain economic conditions have severely impacted 2009. However, with the current quarter improvement, our current backlog levels and the volumes of projects being bid for 2010, we are very encouraged.
