DENVER, CO--(Marketwire - Mar 28, 2013) - ENSERVCO Corporation (
Selected Highlights:
- Q4 revenue a record $11.3 million, up 79% from Q4 2011
- Q4 income from continuing operations increases by $1.5 million to $742,000 from Q4 2011
- Q4 adjusted EBITDA** increases to $2.8 million from $494,000 in Q4 2011
- First full fiscal year of profitability as public company
- Q1 2013 revenue projected at $18 million to $20 million versus $9.5 million in Q1 2012
ENSERVCO Corporation (
Fourth quarter revenue increased 79% to a record $11.3 million from $6.3 million in last year's fourth quarter. The increase was attributable to a strong improvement in revenue from well enhancement services (frac heating, hot oiling, acidizing and pressure testing), which advanced 132% to $8.7 million from $3.8 million in last year's fourth quarter. Revenue from fluid management services (water hauling/disposal and frac tank rentals) for the quarter was flat versus last year's fourth quarter at $2.4 million.
Fourth quarter gross profit increased to 33% from 23% in the 2011 fourth quarter. Operating income was $2.2 million dollars, a $3.0 million positive swing when compared with a loss from operations of $805,000 in the fourth quarter of 2011. Income from continuing operations was $742,000, or $0.03 per diluted share, an improvement of $1.5 million versus a loss of $745,000, or $0.03 per diluted share, in the comparable prior-year quarter. Adjusted EBITDA** was $2.8 million, up from $494,000 in the 2011 fourth quarter.
"The results of our expansion strategy are clearly evident in our fourth quarter financial performance," said Rick Kasch, president and CFO. "Our new service territories, broader customer base and expanded equipment fleet, combined with normal winter weather, drove a strong improvement in our revenue and earnings performance.
"Thus far in 2013, we have seen our growth accelerate, as a normal winter pattern continues and we add new equipment to begin servicing the Utica Shale region. These developments, coupled with strong demand from existing customers, are expected to result in first quarter revenue in a range of $18 million to $20 million, up from the $9.5 million reported in the 2012 first quarter."
"Our focus during 2013 will be on continued geographic expansion, particularly within oil-focused regions. We also will work to expand the range of services we are providing to several large new customers that have come to us for frac water heating. Ongoing well maintenance services generate approximately 60% of our revenue, and are vital to the optimal performance of a producing well. As customers bring new wells online, we believe they will be ideal candidates for our well maintenance services such as acidizing, hot oiling, pressure testing and water hauling.
"Customer demand during the first quarter continues to outpace our service capacity, so we plan to invest in additional equipment during the balance of the year. We will provide more detail on our CapEx budget and expansion plans sometime during the second quarter. Given current demand and a range of new business opportunities, we are very optimistic that 2013 will be another year of strong financial growth."
Full-Year Results
For the full fiscal year, which included a restrained first quarter due to exceptionally warm weather, revenue was a record $31.5 million, up 32% from $23.9 million in 2011. Gross profit, which was negatively impacted by warm weather and idled service crews during portions of the first quarter, improved to 26% from 25% in the prior year. Operating income was $1.7 million versus a loss from operations of $1.6 million in 2011. In what was the Company's first full year of profitability since becoming public, income from continuing operations was $401,000, or $0.02 per diluted share, versus a loss in 2011 of $1.6 million, or $0.07 per diluted share. Adjusted EBITDA** was $4.9 million, up 55% from $3.2 million in 2011.
*All revenue and earnings results discussed herein exclude discontinued operations, which were relatively insignificant.
Conference Call
Management will hold a conference call to discuss these results today at 1 p.m. Eastern (11 a.m. Mountain). The call will be accessible by dialing 877-407-8033 (201-689-8033 for international callers). No passcode is necessary. A telephonic replay will be available through April 29, 2013, by calling 877-660-6853 (201-612-7415 for international callers) and entering the Conference ID #411506.
Investors also can listen to the call via the Internet by accessing the ENSERVCO website, located at www.enservco.com, and linking to the "Investors" page. Participants should access the site at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days.
About ENSERVCO
Through its various operating subsidiaries, ENSERVCO has emerged as one of the energy service industry's leading providers of hot oiling, acidizing, frac heating and fluid management services. The Company owns and operates a fleet of more than 230 specialized trucks, trailers, frac tanks and related well-site equipment. ENSERVCO serves customers in six major domestic oil and gas fields, and operates in Colorado, Kansas, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming and West Virginia. Additional information is available at www.enservco.com.
**Note on non-GAAP Financial Measures
This press release and the accompanying tables include a discussion of EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a complement to the results provided in accordance with generally accepted accounting principles ("GAAP"). The term "EBITDA" refers to a financial measure that we define as earnings plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing ENSERVCO's operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure. We have reconciled Adjusted EBITDA to GAAP net income in the Consolidated Statements of Operations table at the end of this release.
We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.
Cautionary Note Regarding Forward-Looking Statements
This news release contains information that is "forward-looking" in that it describes events and conditions ENSERVCO reasonably expects to occur in the future. Expectations for the future performance of ENSERVCO are dependent upon a number of factors, and there can be no assurance that ENSERVCO will achieve the results as contemplated herein. Certain statements contained in this release using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond ENSERVCO's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in a Form 10-K filed on March 28, 2013. It is important that each person reviewing this release understand the significant risks attendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to update any forward-looking statement made herein.
| ENSERVCO Corporation | ||||||||||||
| Consolidated Statements of Operations | ||||||||||||
| For the Three Months Ended December 31, | ||||||||||||
| 2012 | 2011 | |||||||||||
| Statement of Operations | ||||||||||||
| Revenues | $ | 11,254,266 | $ | 6,302,063 | ||||||||
| Cost of Revenue | 7,548,905 | 4,865,243 | ||||||||||
| Gross Profit | 3,705,361 | 1,436,820 | ||||||||||
| 33 | % | 23 | % | |||||||||
| Operating Expenses | ||||||||||||
| General and administrative expenses | 975,443 | 1,065,060 | ||||||||||
| Depreciation and amortization | 544,273 | 1,176,344 | ||||||||||
| Total operating expenses | 1,519,716 | 2,241,404 | ||||||||||
| Income (Loss) from Operations | 2,185,645 | (804,584 | ) | |||||||||
| Other Income (Expense) | ||||||||||||
| Interest expense | (264,039 | ) | (191,991 | ) | ||||||||
| Loss on disposals of equipment | (259,150 | ) | (74,737 | ) | ||||||||
| Gain on sale of investments | - | - | ||||||||||
| Other | (29,552 | ) | (11,329 | ) | ||||||||
| Total other expense | (552,741 | ) | (278,057 | ) | ||||||||
| Income (Loss) From Continuing Operations Before Tax (Expense) Benefit | 1,632,904 | (1,082,641 | ) | |||||||||
| Income Tax (Expense) Benefit | (890,632 | ) | 337,776 | |||||||||
| Income (Loss) From Continuing Operations | $ | 742,272 | $ | (744,865 | ) | |||||||
| Discontinued Operations | ||||||||||||
| Loss from discontinued operations | (316,921 | ) | (207,789 | ) | ||||||||
| Income tax benefit | 123,599 | 81,038 | ||||||||||
| Loss on discontinued operations, net of tax | (193,322 | ) | (126,751 | ) | ||||||||
| Net Income (Loss) | 548,950 | (871,616 | ) | |||||||||
| Earnings (Loss) per Common Share - Basic | ||||||||||||
| Income from continuing operations | $ | 0.03 | $ | (0.03 | ) | |||||||
| Discontinued operations | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
| Net Income (Loss) | $ | 0.02 | $ | (0.04 | ) | |||||||
| Earnings (Loss) per Common Share - Diluted | ||||||||||||
| Income from continuing operations | $ | 0.03 | $ | (0.03 | ) | |||||||
| Discontinued operations | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
| Net Income (Loss) | $ | 0.02 | $ | (0.04 | ) | |||||||
| Basic weighted average number of common shares outstanding | 28,184,999 | 21,778,866 | ||||||||||
| Add: Dilutive shares assuming exercise of options and warrants | 194,991 | - | ||||||||||
| Diluted weighted average number of common shares outstanding | 24,316,869 | 21,778,866 | ||||||||||
| EBITDA From Continuing Operations: | ||||||||||||
| Income (Loss) From Continuing Operations | 742,272 | (744,865 | ) | |||||||||
| Add (Deduct): | ||||||||||||
| Interest expense | 264,039 | 191,991 | ||||||||||
| Income tax expense (benefit) | 890,632 | (337,776 | ) | |||||||||
| Depreciation and amortization | 544,273 | 1,176,344 | ||||||||||
| EBITDA From Continuing Operations | 2,441,216 | 285,694 | ||||||||||
| Add (Deduct): | ||||||||||||
| Stock-based compensation | 30,903 | 122,414 | ||||||||||
| Warrants issued | - | - | ||||||||||
| Loss on disposal of equipment | 259,150 | 74,737 | ||||||||||
| Gain on sale of investments | - | - | ||||||||||
| Other (income) expense | 29,552 | 11,329 | ||||||||||
| Adjusted EBITDA From Continuing Operations | 2,760,821 | 494,174 | ||||||||||
| EBITDA* From Discontinued Operations: | ||||||||||||
| Loss From Discontinued Operations | (193,322 | ) | (126,751 | ) | ||||||||
| Add (Deduct): | ||||||||||||
| Interest expense | 171 | 1,035 | ||||||||||
| Income tax benefit | (123,599 | ) | (81,038 | ) | ||||||||
| Depreciation and amortization | 17,714 | 113,233 | ||||||||||
| EBITDA* From Discontinued Operations | (299,036 | ) | (93,521 | ) | ||||||||
| Add (Deduct): | ||||||||||||
| Stock-based compensation | - | - | ||||||||||
| Warrants issued | - | - | ||||||||||
| Loss on disposal of equipment | - | - | ||||||||||
| Gain on sale of investments | - | - | ||||||||||
| Other (income) expense | - | - | ||||||||||
| Adjusted EBITDA* From Discontinued Operations | (299,036 | ) | (93,521 | ) | ||||||||
| ENSERVCO Corporation | |||||||||||
| Consolidated Statements of Operations | |||||||||||
| and Comprehensive Loss | |||||||||||
| For the Years Ended December 31, | |||||||||||
| 2012 | 2011 | ||||||||||
| Revenues | $ | 31,497,787 | $ | 23,904,384 | |||||||
| Cost of Revenue | 23,286,561 | 17,828,834 | |||||||||
| Gross Profit | 8,211,226 | 6,075,550 | |||||||||
| Operating Expenses | |||||||||||
| General and administrative expenses | 3,550,438 | 3,515,213 | |||||||||
| Depreciation and amortization | 2,960,153 | 4,188,052 | |||||||||
| Total operating expenses | 6,510,591 | 7,703,265 | |||||||||
| Income (Loss) from Operations | 1,700,635 | (1,627,715 | ) | ||||||||
| Other Income (Expense) | |||||||||||
| Interest expense | (902,152 | ) | (699,230 | ) | |||||||
| Loss on disposals of equipment | (5,739 | ) | (119,023 | ) | |||||||
| Gain on sale of investments | 24,653 | - | |||||||||
| Other | 10,870 | (49,765 | ) | ||||||||
| Total other expense | (872,368 | ) | (868,018 | ) | |||||||
| Income (Loss) From Continuing Operations Before Tax (Expense) Benefit | 828,267 | (2,495,733 | ) | ||||||||
| Income Tax (Expense) Benefit | (426,779 | ) | 897,923 | ||||||||
| Income (Loss) From Continuing Operations | $ | 401,488 | $ | (1,597,810 | ) | ||||||
| Discontinued Operations | |||||||||||
| Loss from discontinued operations | (797,636 | ) | (605,650 | ) | |||||||
| Income tax benefit | 311,078 | 236,204 | |||||||||
| Loss on discontinued operations, net of tax | (486,558 | ) | (369,446 | ) | |||||||
| Net Loss | $ | (85,070 | ) | $ | (1,967,256 | ) | |||||
| Other Comprehensive (Loss) Gain | |||||||||||
| Unrealized (gain on available-for-sale securities, net of tax | 17,506 | (133,665 | ) | ||||||||
| Unrealized loss on interest rate swap, net of tax | (4,805 | ) | - | ||||||||
| Reclassification into earnings, net of tax | (40,579 | ) | - | ||||||||
| Total other comprehensive loss | (27,878 | ) | (133,665 | ) | |||||||
| Comprehensive Loss | $ | (112,948 | ) | $ | (2,100,921 | ) | |||||
| Earnings (Loss) per Common Share - Basic | |||||||||||
| Income from continuing operations | $ | 0.02 | $ | (0.07 | ) | ||||||
| Discontinued operations | $ | (0.02 | ) | $ | (0.02 | ) | |||||
| Net Loss | $ | - | $ | (0.09 | ) | ||||||
| Earnings (Loss) per Common Share - Diluted | |||||||||||
| Income from continuing operations | $ | 0.02 | $ | (0.07 | ) | ||||||
| Discontinued operations | $ | (0.02 | ) | $ | (0.02 | ) | |||||
| Net Loss | $ | - | $ | (0.09 | ) | ||||||
| Basic weighted average number of common shares outstanding | 23,389,151 | 21,778,866 | |||||||||
| Add: Dilutive shares assuming exercise of options and warrants | 927,718 | - | |||||||||
| Diluted weighted average number of common shares outstanding | 24,316,869 | 21,778,866 | |||||||||
| EBITDA From Continuing Operations: | |||||||||||
| Income (Loss) From Continuing Operations | $ | 401,488 | $ | (1,597,810 | ) | ||||||
| Add (Deduct): | |||||||||||
| Interest expense | 902,152 | 699,230 | |||||||||
| Income tax expense (benefit) | 426,779 | (897,923 | ) | ||||||||
| Depreciation and amortization | 2,960,153 | 4,188,052 | |||||||||
| EBITDA From Continuing Operations | $ | 4,690,572 | $ | 2,391,549 | |||||||
| Add (Deduct): | |||||||||||
| Stock-based compensation | 279,362 | 576,498 | |||||||||
| Warrants issued | - | 46,353 | |||||||||
| Loss on disposal of equipment | 5,739 | 119,023 | |||||||||
| Gain on sale of investments | (24,653 | ) | - | ||||||||
| Other (income) expense | (10,870 | ) | 49,765 | ||||||||
| Adjusted EBITDA From Continuing Operations | $ | 4,940,150 | $ | 3,183,188 | |||||||
| EBITDA* From Discontinued Operations: | |||||||||||
| Loss From Discontinued Operations | $ | (486,558 | ) | $ | (369,446 | ) | |||||
| Add (Deduct): | |||||||||||
| Interest expense | 1,770 | 7,714 | |||||||||
| Income tax benefit | (311,078 | ) | (236,204 | ) | |||||||
| Depreciation and amortization | 128,935 | 511,588 | |||||||||
| EBITDA* From Discontinued Operations | $ | (666,931 | ) | $ | (86,348 | ) | |||||
| Add (Deduct): | |||||||||||
| Stock-based compensation | - | - | |||||||||
| Warrants issued | - | - | |||||||||
| Loss on disposal of equipment | - | - | |||||||||
| Gain on sale of investments | - | - | |||||||||
| Other (income) expense | - | - | |||||||||
| Adjusted EBITDA* From Discontinued Operations | $ | (666,931 | ) | $ | (86,348 | ) | |||||
| ENSERVCO Corporation Consolidated Balance Sheets |
| December 31, | December 31, | ||||||||||
| 2012 | 2011 | ||||||||||
| ASSETS | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 533,627 | $ | 417,005 | |||||||
| Accounts receivable, net | 7,791,342 | 4,505,254 | |||||||||
| Marketable securities | - | 150,793 | |||||||||
| Prepaid expenses and other current assets | 802,020 | 593,291 | |||||||||
| Inventories | 273,103 | 549,432 | |||||||||
| Deferred tax asset | 153,466 | 187,170 | |||||||||
| Total current assets | 9,553,558 | 6,402,945 | |||||||||
| Property and Equipment, net | 15,020,890 | 14,759,039 | |||||||||
| Fixed Assets Held for Sale, net | 304,429 | 412,831 | |||||||||
| Non-Competition Agreements, net | 30,000 | 180,000 | |||||||||
| Goodwill | 301,087 | 301,087 | |||||||||
| Long-term portion of interest rate swap | 16,171 | - | |||||||||
| Other Assets | 630,891 | 64,770 | |||||||||
| TOTAL ASSETS | $ | 25,857,026 | $ | 22,120,672 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current Liabilities | |||||||||||
| Accounts payable and accrued liabilities | $ | 3,585,785 | $ | 2,954,687 | |||||||
| Line of credit borrowings | 2,151,052 | 2,263,227 | |||||||||
| Current portion of long-term debt | 2,236,343 | 3,867,658 | |||||||||
| Current portion of interest rate swap | 24,048 | - | |||||||||
| Total current liabilities | 7,997,228 | 9,085,572 | |||||||||
| Long-Term Liabilities | |||||||||||
| Deferred rent payable | 20,860 | 22,044 | |||||||||
| Subordinated debt - related party | - | 1,477,760 | |||||||||
| Long-term debt, less current portion | 10,570,928 | 8,020,435 | |||||||||
| Deferred income taxes, net | 451,662 | 387,487 | |||||||||
| Total long-term liabilities | 11,043,450 | 9,907,726 | |||||||||
| Total liabilities | 19,040,678 | 18,993,298 | |||||||||
| Commitments and Contingencies | |||||||||||
| Stockholders' Equity | |||||||||||
| Common and preferred stock. $.005 par value | |||||||||||
| Authorized: 100,000,000 common shares and 10,000,000 preferred shares | |||||||||||
| Issued: 31,928,894 common shares and -0- preferred shares | |||||||||||
| Treasury Stock: 103,600 common shares | |||||||||||
| Issued and outstanding: 31,825,294 and 21,778,866 common shares, and -0- preferredshares each, at December 31, 2012 and December 31, 2011, respectively | |||||||||||
| 159,127 | 108,894 | ||||||||||
| Additional paid-in-capital | 9,864,363 | 6,112,674 | |||||||||
| Accumulated deficit | (3,202,337 | ) | (3,117,267 | ) | |||||||
| Accumulated other comprehensive income | (4,805 | ) | 23,073 | ||||||||
| Total stockholders' equity | 6,816,348 | 3,127,374 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 25,857,026 | $ | 22,120,672 | |||||||