Energy Services of America CORP
For the period ended Dec 31, 2024. Filed Feb 10, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 10, 2025
ESOA$8.62+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001410578-24-001315
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-10.
0001410578-25-000104
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 185 previous paragraphs and 187 current paragraphs.
88 unchanged; 68 reworded; 26 added; 24 removed; 5 previous and 5 current paragraphs rearranged.
Tables are not compared: 31 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
Tribute Contracting & Consultants, Inc. (“Tribute” or “TCC”), a wholly owned subsidiary of Energy Services, was formed in October 2024 in connection with the acquisition of substantially all the assets of Tribute Contracting & Consultants, LLC (“Tribute LLC”). The acquisition of Tribute LLC closed on December 2, 2024. Tribute constructs water distribution and wastewater systems primarily for public municipalities in West Virginia, Ohio, and Kentucky. The employees of TCC are non-union and are managed independently of the Company’s union subsidiaries.
Current report
Gas & Petroleum Transmission revenues totaled $18.5 million for the three months ended December 31, 2024, a $10.1 million decrease from $28.6 million for the three months ended December 31, 2023. The revenue decrease was primarily due to more transmission work being completed by the end of fiscal year 2024 as compared to 2023 and less transmission work being competed in the first fiscal quarter of 2025 as compared to the same period in 2024.
Current report
Total cost of revenues increased by $11.1 million to $90.4 million for the three months ended December 31, 2024, as compared to $79.3 million for the three months ended December 31, 2023. The cost of revenues increase was the result of increased work in the Gas & Water Distribution and Electrical, Mechanical, & General business categories, partially offset by a decrease in Gas & Petroleum Transmission work.
Current report
Gas & Petroleum Transmission cost of revenues totaled $17.5 million for the three months ended December 31, 2024, a $7.6 million decrease from $25.2 million for the three months ended December 31, 2023. The cost of revenues decrease for the three months ended December 31, 2024 was primarily due to more transmission work being completed by the end of fiscal year 2024 as compared to 2023 and less transmission work being competed in first fiscal year quarter of 2025 as compared to 2024. Additionally, Gas & Petroleum work was more impacted by inclement weather in the first fiscal quarter of 2025, as compared to the same period in the prior fiscal year. This resulted in less efficient production and more costs than expected.
Current report
Total gross profit decreased by $575,000 to $10.3 million for the three months ended December 31, 2024, as compared to $10.8 million for the three months ended December 31, 2023. The decrease was primarily due to decreased profit in Gas & Petroleum Transmission work during the first quarter of fiscal year 2025, as compared to the same period in the prior year.
Current report
Gas & Petroleum Transmission gross profit totaled $934,000 for the three months ended December 31, 2024, a $2.5 million decrease from $3.4 million for the three months ended December 31, 2023. The gross profit decrease for the three months ended December 31, 2024 was primarily due to more transmission work being completed by the end of fiscal year 2024 as compared to 2023 and less transmission work being competed in first fiscal year quarter of 2025 as compared to 2024. Additionally, Gas & Petroleum work was more impacted by inclement weather in the first quarter of fiscal year 2025, as compared to the same period in the prior fiscal year. This resulted in less efficient production and more costs than expected.
Current report
Interest expense.* *Interest expense totaled $484,000 for the three months ended December 31, 2024, a decrease of $118,000 from $602,000 for the same period in the prior year. The decrease was primarily due to less interest expense related to line of credit borrowings during the three months ended December 31, 2024, as compared to same period in the prior fiscal year.
Current report
Net income for the three months ended December 31, 2024, was $854,000, as compared to $2.0 million for the same period in the prior year.
Current report
Retainage receivable totaled $15.2 million at December 31, 2024, an increase of $3.5 million from the prior fiscal year end balance of $11.7 million. The increase was primarily due to $2.9 million in retainage receivables related to Tribute at December 31, 2024.
Current report
Goodwill totaled $7.4 million at December 31, 2024, an increase of $3.3 million from the prior fiscal year end balance of $4.1 million. The increase was due to the acquisition of Tribute.
Current report
Other receivables totaled $2.8 million at December 31, 2024, an increase of $1.7 million from the prior fiscal year end balance of $1.0 million. The increase was primarily due to a $1.7 million receivable related to a working capital adjustment as part of the Tribute acquisition.
Current report
The aggregate balance of current maturities of long-term debt and long-term debt totaled $49.3 million at December 31, 2024, an increase of $25.7 million from the prior fiscal year-end balance of $23.6 million. The increase was primarily due to $16.0 million related to financing the acquisition of Tribute and assumption of $3.8 million of Tribute equipment debt, $200,000 in additional equipment financing and $7.5 million in line of credit borrowings due by June 28, 2026, partially offset by $1.8 million in long-term debt payments.
Current report
Deferred tax liabilities totaled $6.9 million at December 31, 2024, an increase of $378,000 from the prior fiscal year end balance of $6.5 million. The increase was primarily related to a $1.9 million increase related to bonus depreciation on equipment acquired, partially offset by a $1.5 million increase in federal and state NOL carryforwards.
Current report
Shareholders’ equity was $61.0 million at December 31, 2024, an increase of $2.3 million from the prior fiscal year end balance of $58.7 million. The increase was primarily due to net income of $854,000 for the three months ended December 31, 2024 and $2,000,000 in common stock issued as part of the Tribute acquisition, partially offset by a $501,000 declared quarterly dividend that was paid on January 2, 2025.
Current report
The Company’s $12.0 million and $4.5 million line of credit borrowings are recorded as a long-term debt as of December 31, 2024 and September 30, 2024, respectively.
Current report
The financial covenants required by the Company’s lender are below:
Current report
On December 2, 2024, the Company entered into a $16.0 million loan agreement with United Bank to finance the acquisition of Tribute. This six-year agreement has monthly payments of $272,000 including a fixed interest rate of 6.9%. As of December 31, 2024, the Company had not made any principal payments on this loan.
Current report
The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $144,000 at inception, and expired on August 31, 2024. The lease was renewed for a two-year period with a net present value of $140,000 and had a carrying value of $105,000 at December 31, 2024. The 8.5% interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception.
Current report
We intend that all transactions between us and our executive officers, directors, holders of 10% or more of the shares of any class of our common stock and affiliates thereof, will be on terms no less favorable than those terms given to unaffiliated third parties and will be approved by a majority of our independent outside directors not having any interest in the transaction.
Current report
CJ Hughes entered into an agreement, cancelable at any time, with Construction Specialty Services (“CSS”), which is owned by Chuck Austin, the President of CJ Hughes. CSS rents equipment, periodically, to and as requested by CJ Hughes. The equipment rental rates are below the rates that the equipment can be rented from any unaffiliated rental company. CJ Hughes is not obliged to rent any equipment and does so only when CJ Hughes does not have equipment available of its own and would otherwise need to rent such equipment as the demand increases throughout the construction season. During the three months ended December 31, 2024 and 2023, the rental amounts were $53,000 and $19,000, respectively.
Current report
Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses.
Current report
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.
Current report
The Company had $6.5 million and $0 million of federal net operating loss carryforwards at December 31, 2024 and September 30, 2024, respectively. The Company had $30.4 million and $20.5 million of state net operating loss carryforwards at December 31, 2024 and September 30, 2024, respectively. The state net operating loss carryforwards begin to expire in 2025. The increases in federal and state NOL carryforwards were primarily due to a temporary difference resulting from bonus depreciation on equipment obtained as part of the Tribute acquisition.
Current report
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.
Current report
On November 27, 2023, the FASB issued ASU 2023-07,Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The update also requires disclosure regarding the chief operating decision maker and expands the interim segment disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements.
Current report
On January 2, 2025, the Company paid a quarterly dividend of $0.03 per common share totaling $501,164.
Removed paragraphs (24)
Previous report
Gas & Petroleum Transmission revenues totaled $17.1 million for the three months ended June 30, 2024, an $11.4 million decrease from $28.5 million for the three months ended June 30, 2023. Gas & Petroleum Transmission revenues totaled $55.5 million for the nine months ended June 30, 2024, a $4.8 million increase from $50.7 million for the nine months ended June 30, 2023. The revenue decrease for the three months ended June 30, 2024, as compared to the same period in 2023, was primarily due to transmission work starting later in 2024 as compared to 2023 and the Company having a large transmission project that started in the third fiscal year quarter of 2023 that was not replaced in the third quarter of fiscal year 2024. The revenue increase for the nine months ended June 30, 2024, as compared to the same period in 2023, was primarily due to projects that started later in fiscal year 2023 and continued into fiscal year 2024.
Previous report
Total cost of revenues decreased by $4.0 million to $70.6 million for the three months ended June 30, 2024, as compared to $74.7 million for the three months ended June 30, 2023. Total cost of revenues increased by $36.3 million to $214.8 million for the nine months ended June 30, 2024, as compared to $178.5 million for the nine months ended June 30, 2023. The cost of revenues decreases for the three months ended June 30, 2024, as compared to the same period in 2023, as a result of Gas & Petroleum Transmission work starting later in 2024 as compared to 2023 and the Company having a large transmission project that started in the third fiscal year quarter of 2023 that was not replaced in the third quarter of fiscal year 2024. The cost of revenue increase for the nine months ended June 30, 2024, as compared to the nine months ended June 30, 2023, as a result of increased work in all categories of business.
Previous report
Gas & Petroleum Transmission cost of revenues totaled $12.5 million for the three months ended June 30, 2024, a $12.0 million decrease from $24.5 million for the three months ended June 30, 2023. Gas & Petroleum Transmission cost of revenues totaled $47.2 million for the nine months ended June 30, 2024, a $2.9 million increase from $44.4 million for the nine months ended June 30, 2023. The cost of revenues decreases for the three months ended June 30, 2024, as compared to the same period in 2023, were primarily due to Gas & Petroleum Transmission work starting later in 2024 as compared to 2023 and the Company having a large transmission project that started in the third fiscal year quarter of 2023 that was not replaced in the third quarter of fiscal year 2024. The cost of revenues increased for the nine months ended June 30, 2024, as compared to the same period in 2023, primarily due to projects that started later in fiscal year 2023 and continued into fiscal year 2024.
Previous report
Total gross profit increased by $4.4 million to $15.3 million for the three months ended June 30, 2024, as compared to $10.9 million for the three months ended June 30, 2023. Total gross profit increased by $11.6 million to $32.4 million for the nine months ended June 30, 2024, as compared to $20.8 million for the nine months ended June 30, 2023.
Previous report
Gas & Petroleum Transmission gross profit totaled $4.6 million for the three months ended June 30, 2024, a $618,000 increase from $4.0 million for the three months ended June 30, 2023. Gas & Petroleum Transmission gross profit totaled $8.2 million for the nine months ended June 30, 2024, a $1.9 million increase from $6.4 million for the nine months ended June 30, 2023. The gross profit increase for the three months ended June 30, 2024, as compared to the same period in 2023, was primarily related to the unexpected receipt of project changes orders for work performed earlier in fiscal year 2023. The gross profit increase for the nine months ended June 30, 2024, as compared to the same period in 2023, was primarily related to projects that started later in fiscal year 2023 and continued into fiscal year 2024.
Previous report
Income from Lawsuit Judgement. As previously disclosed, in February 2018, the Company filed a lawsuit against a customer in the United States District Court for the Western District of Pennsylvania (the “District Court”). The lawsuit was related to a dispute over work performed on a pipeline construction project. On November 21, 2022, the District Court issued a judgment in favor of the Company. On April 17, 2024, the United States Court of Appeals for the Third Circuit (the “Appeals Court”) affirmed the decision of the District Court. In May 2024, the Appeals Court denied petitions for a rehearing. This upheld the award granted by the District Court in November 2022. The Company received an approximately $15.6 million payment related to the lawsuit in May 2024.
Previous report
Interest expense. Interest expense totaled $547,000 for the three months ended June 30, 2024, a decrease of $93,000 from $640,000 for the same period in the prior year. The decrease was primarily due to the Company paying off its operating line of credit in late May 2024. Interest expense totaled $1.8 million for the nine months ended June 30, 2024, an increase of $58,000 from $1.7 million for the same period in the prior year. The increase in interest expense was primarily due to interest paid for equipment financing added in late fiscal year 2023 and an increase in interest rates, partially offset by the Company paying off its operating line of credit in late May 2024.
Previous report
Net income for the three months ended June 30, 2024, was $17.5 million, as compared to $3.4 million for the same period in the prior year. Net income for the nine months ended June 30, 2024 was $18.4 million, as compared to a net loss of $1.7 million for the same period in 2023.
Previous report
Retainage receivable totaled $10.3 million at June 30, 2024, an increase of $2.7 million from the prior fiscal year end balance of $7.6 million. The increase was primarily due to more current year projects that require retainages to be withheld.
Previous report
Other receivables totaled $1.1 million at June 30, 2024, an increase of $605,000 from the prior fiscal year end balance of $517,000. The increase was primarily due to an advance made to the variable interest entity referenced in Related Party Transactions.
Previous report
Goodwill totaled $4.1 million at June 30, 2024 and September 30, 2023.
Previous report
Long-term debt totaled $21.7 million at June 30, 2024, a decrease of $3.3 million from the prior fiscal year end balance of $25.0 million. The decrease in long-term debt was primarily due to $5.0 million in payments on long-term debt, partially offset by $1.7 million in new equipment financing.
Previous report
Deferred tax liabilities totaled $7.3 million at June 30, 2024, an increase of $412,000 from the prior fiscal year end balance of $6.9 million. The increase was primarily related to a $910,000 reduction of a tax asset related to a net operating loss carry forward during the nine months ended June 30, 2024, partially offset by a $460,000 decrease in deferred taxes related to property and equipment.
Previous report
Shareholders’ equity was $52.0 million at June 30, 2024, an increase of $17.4 million from the prior fiscal year end balance of $34.6 million. The increase was primarily due to net income of $18.4 million for the nine months ended June 30, 2024, partially offset by an annual cash dividend payment of $994,000 on January 2, 2024.
Previous report
The modified financial covenants for the quarter ended June 30, 2023, and all subsequent quarters, are below:
Previous report
Insurance Premiums Financed
Previous report
The Company financed its captive insurance policy premiums on a short-term basis through a financing company for the calendar year ended December 31, 2023. These insurance policies include workers’ compensation, general liability, automobile, umbrella, and equipment policies. The Company made a down payment in January 2023 and financed the remaining premium amount over eleven monthly payments. At June 30, 2024 and September 30, 2023, the remaining balance of the insurance premiums was $0 and $950,000, respectively.
Previous report
For the calendar year beginning January 1, 2024, the Company’s insurance company is accepting quarterly payments on certain insurance policies and the Company has prepaid the balance of the remaining policies as of June 30, 2024. The Company has no insurance premiums financed as of June 30, 2024.
Previous report
On November 13, 2015, the Company entered into a 10-year $1.1 million loan agreement with United Bank to purchase the fabrication shop and property Nitro had previously been leasing. The variable interest rate on the loan agreement is 9.5% at June 30, 2024. As of June 30, 2024, the Company had made principal payments of $900,000. The loan is collateralized by the building and property purchased under this agreement.
Previous report
The Company had two lease agreements for construction equipment with a combined amount of $160,000 that were paid in full as of June 30, 2024. The leases had a term of twenty-two months with a stated interest rate of 0%, combined monthly installment payments of $6,645 and were cancellable at any time without penalty. The Company exercised 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 had been included in the consolidated balance sheets within property, plant and equipment and long-term debt.
Previous report
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 $21,000 at June 30, 2024. The 8.5% interest rate on the operating lease was based on the Company’s incremental borrowing rate at renewal.
Previous report
As previously disclosed, in February 2018, the Company filed a lawsuit against a customer in the United States District Court for the Western District of Pennsylvania (the “District Court”). The lawsuit was related to a dispute over work performed on a pipeline construction project. On November 21, 2022, the District Court issued a judgment in favor of the Company. On April 17, 2024, the United States Court of Appeals for the Third Circuit (the “Appeals Court”) affirmed the decision of the District Court. In May 2024, the Appeals Court denied petitions for a rehearing. This upheld the award granted by the District Court in November 2022. The Company received an approximately $15.6 million payment related to the lawsuit in May 2024.
Previous report
The income tax expense for the three months ended June 30, 2024 was $6.0 million as compared to $1.5 million for the three months ended June 30, 2023. The income tax expense for the nine months ended June 30, 2024 was $6.7 million as compared to 768,000 for the nine months ended June 30, 2023. The changes were due to an increase in taxable income for the three and nine months ended June 30, 2024, as compared to the same period in 2023.
Previous report
On July 11, 2024, the Company’s Nitro subsidiary completed the acquisition of substantially all the physical assets of Heritage Painting, LLC, a West Virginia corporation located in Poca, West Virginia for $300,000 cash.
Reworded paragraphs (68)
Previous wording
You should read the following discussion of the financial condition and results of operations of Energy Services in conjunction with the “Financial Statements” appearing in this report as well as the historical financial statements and related notes contained elsewhere herein. Among other things, those historical consolidated financial statements include more detailed information regarding the basis of presentation for the following information. The term “Energy Services” refers to the Company, West Virginia Pipeline, SQP, Tri-State Paving, Ryan Construction, and C.J. Hughes and C.J. Hughes’ wholly owned subsidiaries on a consolidated basis.
Current wording
You should read the following discussion of the financial condition and results of operations of Energy Services in conjunction with the “Financial Statements” appearing in this report as well as the historical financial statements and related notes contained elsewhere herein. Among other things, those historical consolidated financial statements include more detailed information regarding the basis of presentation for the following information. The term “Energy Services” refers to the Company, West Virginia Pipeline, SQP, Tri-State Paving, Ryan Construction, Tribute, and C.J. Hughes and C.J. Hughes’ wholly owned subsidiaries on a consolidated basis.
Previous wording
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.
Current wording
Ryan Construction Services Inc. (“Ryan Construction” or “RCS”), a wholly owned subsidiary of Energy Services, 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, Tennessee, and Pennsylvania. The employees of RCS are non-union and are managed independently of the Company’s union subsidiaries.
Previous wording
of revenues because inclement weather conditions cause delays in production and customers usually do not plan large projects during that time. While usually better than the first quarter, the second calendar year quarter often has some inclement weather which can cause delays in production, reducing the revenues the Company receives and/or increasing the production costs. The third and fourth calendar year quarters usually are less impacted by weather and usually have the largest number of projects underway. Many projects are completed in the fourth calendar year quarter and revenues are often impacted by customers seeking to either spend their capital budget for the year or scale back projects due to capital budget overruns.
Current wording
Our revenues and results of operations can and usually are subject to seasonal variations. These variations are the result of weather, customer spending patterns, bidding seasons and holidays. The first quarter of the calendar year is typically the slowest in terms of revenues because inclement weather conditions cause delays in production and customers usually do not plan large projects during that time. While usually better than the first quarter, the second calendar year quarter often has some inclement weather which can cause delays in production, reducing the revenues the Company receives and/or increasing the production costs. The third and fourth calendar year quarters usually are less impacted by weather and usually have the largest number of projects underway. Many projects are completed in the fourth calendar year quarter and revenues are often impacted by customers seeking to either spend their capital budget for the year or scale back projects due to capital budget overruns.
Previous wording
Three and nine months ended June 30, 2024 and 2023 Overview
Current wording
Three months ended December 31, 2024 and 2023 Overview
Previous wording
The following is an overview of results from operations for the three and nine months ended June 30, 2024 and 2023:
Current wording
The following is an overview of results from operations for the three months ended December 31, 2024 and 2023:
Previous wording
Results of Operations for the Three and Nine Months Ended June 30, 2024 Compared to the Three and Nine Months Ended June 30, 2023
Current wording
Results of Operations for the Three months Ended December 31, 2024 Compared to the Three months Ended December 31, 2023
Previous wording
Revenues. A table comparing the Company’s revenues for the three and nine months ended June 30, 2024 compared to the three and nine months ended June 30, 2023 is below:
Current wording
Revenues. A table comparing the Company’s revenues for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 is below:
Previous wording
Total revenues increased by $394,000 to $85.9 million for the three months ended June 30, 2024, as compared to $85.5 million for the three months ended June 30, 2023. Total revenues increased by $48.0 million to $247.2 million for the nine months ended June 30, 2024, as compared to $199.2 million for the nine months ended June 30, 2023. The increases were a result of increased work in all categories of business except for an $11.3 million decrease in Gas & Petroleum Transmission work for the three months ended June 30, 2024 as compared to the same period in 2023.
Current wording
Total revenues increased by $10.5 million to $100.6 million for the three months ended December 31, 2024, as compared to $90.2 million for the three months ended December 31, 2023. The increase was a result of $14.2 million and $6.4 million in increased work in the Gas & Water Distribution and Electrical, Mechanical, & General categories, respectively, partially offset by a $10.1 million decrease in Gas & Petroleum Transmission work for the three months ended December 31, 2024 as compared to the same period in 2023.
Previous wording
Gas & Water Distribution revenues totaled $22.5 million for the three months ended June 30, 2024, a $4.6 million increase from $17.9 million for the three months ended June 30, 2023. Gas & Water Distribution revenues totaled $53.9 million for the nine months ended June 30, 2024, a $10.1 million increase from $43.8 million for the nine months ended June 30, 2023. The revenue increases were primarily related to increased paving and gas and water distribution services performed during the three and nine months ended June 30, 2024, as compared to the same periods in 2023.
Current wording
Gas & Water Distribution revenues totaled $31.3 million for the three months ended December 31, 2024, a $14.2 million increase from $17.1 million for the three months ended December 31, 2023. The revenue increase was primarily related to increased water distribution services performed during the three months ended December 31, 2024, as compared to the same period in 2023.
Previous wording
Electrical, Mechanical, & General construction services revenues totaled $46.2 million for the three months ended June 30, 2024, a $7.1 million increase from $39.1 million for the three months ended June 30, 2023. Electrical, Mechanical, & General construction services revenues totaled $137.9 million for the nine months ended June 30, 2024, a $33.2 million increase from $104.7 million for the nine months ended June 30, 2023. The revenue increases were primarily related to an increase in general contracting and electrical services performed during the three and nine months ended June 30, 2024, as compared to the same period in the prior year.
Current wording
Electrical, Mechanical, & General construction services revenues totaled $50.9 million for the three months ended December 31, 2024, a $6.4 million increase from $44.5 million for the three months ended December 31, 2023. The revenue increase was primarily related to an increase in general contracting and electrical services performed during the three months ended December 31, 2024, as compared to the same period in the prior year.
Previous wording
Cost of Revenues. A table comparing the Company’s costs of revenues for the three and nine months ended June 30, 2024, compared to the three and nine months ended June 30, 2023, is below:
Current wording
*Cost of Revenues.*A table comparing the Company’s costs of revenues for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, is below:
Previous wording
Gas & Water Distribution cost of revenues totaled $16.1 million for the three months ended June 30, 2024, a $2.9 million increase from $13.3 million for the three months ended June 30, 2023. Gas & Water Distribution cost of revenues totaled $41.1 million for the nine months ended June 30, 2024, a $6.6 million increase from $34.5 million for the nine months ended June 30, 2023. The cost of revenues increase was primarily related to increased paving and gas and water distribution services performed during the nine months ended June 30, 2024, as compared to the same periods in 2023.
Current wording
Gas & Water Distribution cost of revenues totaled $26.1 million for the three months ended December 31, 2024, a $13.0 million increase from $13.1 million for the three months ended December 31, 2023. The cost of revenues increase was primarily related to increased water distribution services performed during the three months ended December 31, 2024, as compared to the same period in 2023.
Previous wording
Electrical, Mechanical, & General construction services cost revenues totaled $40.2 million for the three months ended June 30, 2024, a $3.6 million increase from $36.6 million for the three months ended June 30, 2023. Electrical, Mechanical, & General construction services cost of revenues totaled $123.7 million for the nine months ended June 30, 2024, a $25.5 million increase from $98.1 million for the nine months ended June 30, 2023. The cost of revenues increase was primarily related to an increase in general contracting and electrical services performed during the three and nine months ended June 30, 2024, as compared to the same period in the prior year.
Current wording
Electrical, Mechanical, & General construction services cost revenues totaled $46.1 million for the three months ended December 31, 2024, a $5.0 million increase from $41.1 million for the three months ended December 31, 2023. The cost of revenues increase was primarily related to an increase in general contracting and electrical services performed during the three months ended December 31, 2024, as compared to the same period in the prior year.
Previous wording
Unallocated shop expenses totaled $1.7 million for the three months ended June 30, 2024, a $1.5 increase from $249,000 for the three months ended June 30, 2023. Unallocated shop expenses totaled $2.8 million for the nine months ended June 30, 2024, a $1.3 million increase from $1.5 million for the nine months ended June 30, 2023. The changes in unallocated shop expenses were primarily due to changes in the amount of internal equipment charged to projects for the three and nine months ended June 30, 2024, as compared to the same period in the prior year.
Current wording
Unallocated shop expenses totaled $674,000 for the three months ended December 31, 2024, a $669,000 increase from $5,000 for the three months ended December 31, 2023. The increase in unallocated shop expenses was primarily due to a decrease in the amount of internal equipment charged to projects for the three months ended December 31, 2024, as compared to the same period in the prior year.
Previous wording
Gross Profit (Loss). A table comparing the Company’s gross profit (loss) for the three and nine months ended June 30, 2024, compared to the three and nine months ended June 30, 2023, is below:
Current wording
Gross Profit (Loss).* *A table comparing the Company’s gross profit for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, is below:
Previous wording
Gas & Water Distribution gross profit totaled $6.4 million for the three months ended June 30, 2024, a $1.7 million increase from $4.6 million for the three months ended June 30, 2023. Gas & Water Distribution gross profit totaled $12.8 million for the nine months ended June 30, 2024, a $3.5 million increase from $9.3 million for the nine months ended June 30, 2023. The gross profit increase was primarily related to increased paving and gas and water distribution services performed during the three and nine months ended June 30, 2024, as compared to the same period in 2023.
Current wording
Gas & Water Distribution gross profit totaled $5.2 million for the three months ended December 31, 2024, a $1.2 million increase from $4.0 million for the three months ended December 31, 2023. The gross profit increase was primarily related to increased water distribution services performed during the three months ended December 31, 2024, as compared to the same period in 2023. However, the gross profit percentage decreased for the first quarter of fiscal year 2025, as compared to the prior fiscal year. This was primarily due to decreased volume and less efficient water-related paving services.
Previous wording
Electrical, Mechanical, & General construction services gross profit totaled $6.0 million for the three months ended June 30, 2024, a $3.5 million increase from $2.5 million for the three months ended June 30, 2023. Electrical, Mechanical, & General construction services gross profit totaled $14.2 million for the nine months ended June 30, 2024, a $7.6 million increase from $6.6 million for the nine months ended June 30, 2023. The gross profit increases were primarily related to an increase in general contracting and electrical services performed during the three and nine months ended June 30, 2024, as compared to the same periods in the prior year. In addition, the Company completed several milestones on a significant project nearing completion during the third quarter of fiscal year 2024 with a higher than expected profits.
Current wording
Electrical, Mechanical, & General construction services gross profit totaled $4.8 million for the three months ended December 31, 2024, a $1.4 million increase from $3.5 million for the three months ended December 31, 2023. The gross profit increase was primarily related to an increase in general contracting and electrical services performed during the three months ended December 31, 2024, as compared to the same period in the prior fiscal year.
Previous wording
Gross loss attributable to unallocated shop expenses totaled ($1.7) million for the three months ended June 30, 2024, a $1.5 increase from ($249,000) for the three months ended June 30, 2023. Gross loss attributable to unallocated shop expenses totaled ($2.8) million for the nine months ended June 30, 2024, a $1.3 million increase from ($1.5) million for the nine months ended June 30, 2023. The changes in unallocated shop expenses were due to changes in the amount of internal equipment charged to projects for the three and nine months ended June 30, 2024, as compared to the same periods in the prior year.
Current wording
Gross loss attributable to unallocated shop expenses totaled ($674,000) for the three months ended December 31, 2024, a $669,000 increase from ($5,000) for the three months ended December 31, 2023. The increase in gross loss related to unallocated shop expenses was primarily due to a decrease in the amount of internal equipment charged to projects for the three months ended December 31, 2024, as compared to the same period in the prior year.
Previous wording
Selling and administrative expenses. Total selling and administrative expenses increased by $1.5 million to $6.8 million for the three months ended June 30, 2024, as compared to $5.3 million for the same period in the prior year. Total selling and administrative expenses increased by $4.8 million to $21.3 million for the nine months ended June 30, 2024, as compared to $16.5 million for the same
Current wording
Selling and administrative expenses. Total selling and administrative expenses increased by $1.4 million to $8.6 million for the three months ended December 31, 2024, as compared to $7.2 million for the same period in the prior year. The increase was primarily related to additional personnel hired to secure and manage work for expected growth.
Previous wording
Other nonoperating expense. Other nonoperating expenses totaled $27,000 for the three months ended June 30, 2024, as compared to $72,000 for the same period in the prior year. Other nonoperating expenses totaled $34,000 for the nine months ended June 30, 2024, as compared to $164,000 for the same period in the prior year. The change for the nine months ended June 30, 2024, as compared to the same period in 2023, was primarily related to an immaterial legal settlement that recouped costs expended in a prior period.
Current wording
Other non-operating (expense) income.* *Other non-operating expenses totaled $48,000 for the three months ended December 31, 2024, as compared to $75,000 in non-operating income for the same period in the prior year. The change for the three months ended December 31, 2024, as compared to the same period in the prior year, was primarily related to a minor legal settlement received during the three months ended December 31, 2023 that recouped employee benefit costs expended in a prior period.
Previous wording
Gain on sale of equipment. Gain on sale of equipment totaled $600 for the three months ended June 30, 2024, a decrease of $29,400 from $30,000 for the same period in the prior year. Gain on sale of equipment totaled $292,000 for the nine months ended June 30, 2024, an increase of $245,000 from $47,000 for the same period in the prior year. The Company sold certain underutilized or non-working pieces of equipment during the nine months ended June 30, 2024, with no comparable sale occurring during the nine months ended June 30, 2023.
Current wording
Gain on sale of equipment.* *Gain on sale of equipment totaled $196,000 for the three months ended December 31, 2024, an increase of $209,000 from a loss of ($13,000) for the same period in the prior year. The Company sold certain underutilized or non-working pieces of equipment during the three months ended December 31, 2024, with no comparable sale occurring during the three months ended December 31, 2023.
Previous wording
Net income. Income before income taxes was $23.6 million for the three months ended June 30, 2024, as compared to $4.9 million for the same period in the prior year. Income before income taxes was $25.2 million for the nine months ended June 30, 2024, as compared to income before income taxes of $2.4 million for the same period in the prior year. The increases were primarily related to the items mentioned above.
Current wording
Net income.* *Income before income taxes was $1.3 million for the three months ended December 31, 2024, as compared to $3.1 million for the same period in the prior year. The decrease was primarily related to the items mentioned above.
Previous wording
Income tax expense for the three months ended June 30, 2024, was $6.0million compared to $1.5 million for the same period in the prior year. Income tax expense for the nine months ended June 30, 2024, was $6.7 million compared to income tax expense of $768,000 for the same period in the prior year. The increases in income tax expenses were due to an increase in taxable income primarily related to $15.6 million recognized as income from the receipt of a lawsuit judgement during the three and nine months ended June 30, 2024.
Current wording
Income tax expense for the three months ended December 31, 2024, was $455,000 compared to $1.1 million for the same period in the prior year. The decrease in income tax expense was due to a decrease in taxable income during the three months ended December 31, 2024, as compared to the same period in the prior year.
Previous wording
The Company had total assets of $148.8 million at June 30, 2024, an increase of $6.3 million from the prior fiscal year end balance of $142.5 million.
Current wording
The Company had total assets of $192.1 million at December 31, 2024, an increase of $33.9 million from the prior fiscal year end balance of $158.2 million.
Previous wording
The Company had net property, plant and equipment of $37.9 million at June 30, 2024, an increase of $1.4 million from the prior fiscal year end balance of $36.5 million. The increase was due to $8.4 million in asset additions, partially offset by $6.3 million in depreciation and net equipment disposals of $703,000.
Current wording
The Company had net property, plant and equipment of $53.3 million at December 31, 2024, an increase of $15.2 million from the prior fiscal year end balance of $38.1 million. The increase was due to $14.9 million in asset additions related to the Tribute acquisition, $3.1 million in other asset additions, partially offset by $2.6 million in depreciation and net equipment disposals of $300,000.
Previous wording
Accounts receivable, net of allowance for doubtful accounts, totaled $50.1 million at June 30, 2024, a decrease of $1.1 million from the prior fiscal year end balance of $51.2 million. The decrease was primarily due to the timing of cash collections and project invoicing since September 30, 2023.
Current wording
Accounts receivable, net of allowance for doubtful accounts, totaled $63.9 million at December 31, 2024, an increase of $7.8 million from the prior fiscal year end balance of $56.1 million. The increase was primarily due to the timing of cash collections and project invoicing since September 30, 2024 and $3.8 million in accounts receivable related to Tribute at December 31, 2024.
Previous wording
Cash and cash equivalents totaled $14.5 million at June 30, 2024, a decrease of $1.9 million from the prior fiscal year end balance of $16.4 million. The decrease was primarily due to a net $5.7 million investment in equipment, and a net $15.7 million used in financing activities, partially offset by a net $19.5 million provided from operating activities.
Current wording
Cash and cash equivalents totaled $20.3 million at December 31, 2024, an increase of $7.4 million from the prior fiscal year end balance of $12.9 million. The increase was primarily due to a net $8.5 million provided by operating activities, and a net $21.7 million provided by financing activities, partially offset by a $20.8 million investment in the acquisition of Tribute and a net $2.0 million investment in equipment.
Previous wording
Intangible assets, net totaled $3.1 million at June 30, 2024, a decrease of $324,000 from the prior fiscal year end balance of $3.4 million. The decrease was due to the amortization of intangible assets during the nine months ended June 30, 2024.
Current wording
Intangible assets, net totaled $3.9 million at December 31, 2024, an increase of $869,000 from the prior fiscal year end balance of $3.1 million. The increase was primarily due to intangible assets acquired as part of the Tribute acquisition, partially offset by the amortization of intangible assets during the three months ended December 31, 2024.
Previous wording
Right-of-use assets totaled $2.5 million at June 30, 2024, a decrease of $829,000 from the prior fiscal year end balance of $3.3 million. The decrease was primarily due to the amortization of operating leases during the nine months ended June 30, 2024, partially offset by a net increase in leased vehicles.
Current wording
Right-of-use assets totaled $2.6 million at December 31, 2024, an increase of $85,000 from the prior fiscal year end balance of $2.5 million. The increase was primarily due to an increase in leased vehicles, partially offset by the amortization of operating leases during the three months ended December 31, 2024.
Previous wording
Contract assets totaled $21.0 million at June 30, 2024, an increase of $5.1 million from the prior fiscal year end balance of $16.0 million. The increase was due to a difference in the timing of project billings at June 30, 2024, compared to September 30, 2023.
Current wording
Contract assets totaled $19.5 million at December 31, 2024, a decrease of $5.1 million from the prior fiscal year end balance of $24.6 million. The decrease was due to a difference in the timing of project billings at December 31, 2024, compared to September 30, 2024.
Previous wording
Prepaid expenses and other totaled $4.2 million at June 30, 2024, an increase of $726,000 from the prior fiscal year end balance of $3.5 million. The increase was primarily due to an increase in prepaid insurance that will be expensed in the next twelve months.
Current wording
Prepaid expenses and other totaled $3.1 million at December 31, 2024, a decrease of $986,000 from the prior fiscal year end balance of $4.1 million. The decrease was primarily due to a decrease in prepaid insurance that was expensed during the three months ended December 31, 2024.
Previous wording
The Company had total liabilities of $96.8 million at June 30, 2024, a decrease of $11.1 million from the prior fiscal year end balance of $107.9 million.
Current wording
The Company had total liabilities of $131.0 million at December 31, 2024, an increase of $31.4 million from the prior fiscal year end balance of $99.6 million.
Previous wording
Contract liabilities totaled $17.9 million at June 30, 2024, an increase of $202,000 from the prior fiscal year end balance of $17.7 million. The increase was due to a difference in the timing of project billings at June 30, 2024, as compared to September 30, 2023.
Current wording
Contract liabilities totaled $22.5 million at December 31, 2024, an increase of $5.5 million from the prior fiscal year end balance of $17.0 million. The increase was due to a difference in the timing of project billings at December 31, 2024, as compared to September 30, 2024.
Previous wording
Accounts payable totaled $19.4 million at June 30, 2024, a decrease of approximately $2.6 million from the prior fiscal year end balance of $22.0 million. The decrease was due to the timing of accounts payable payments as compared to September 30, 2023.
Current wording
Accounts payable totaled $26.8 million at December 31, 2024, an increase of $3.1 million from the prior fiscal year end balance of $23.7 million. The increase was due to the timing of accounts payable payments as compared to September 30, 2024 and $1.6 million in accounts payable for Tribute at December 31, 2024.
Previous wording
Income tax payable totaled $5.7 million at June 30, 2024, an increase of $5.7 million from the prior fiscal year end. The increase was primarily related to the taxable income generated during the nine months ended June 30, 2024.
Current wording
Income tax payable totaled $2.3 million at December 31, 2024, an increase of $98,000 from the prior fiscal year end balance of $2.2 million. The increase was primarily related to the taxable income generated during the three months ended December 31, 2024.
Previous wording
Current and long-term operating lease liabilities totaled $2.5 million at June 30, 2024, a decrease of $864,000 from the prior fiscal year end balance of $3.6 million. The decrease was due to payments made during the nine months ended June 30, 2024.
Current wording
Current and long-term operating lease liabilities totaled $2.6 million at December 31, 2024, an increase of $85,000 from the prior fiscal year end balance of $2.5 million. The increase was primarily due to an increase in leased vehicles, partially offset by payments made during the three months ended December 31, 2024.
Previous wording
Lines of credit and short-term borrowings totaled $10.3 million at June 30, 2024, a decrease of $9.6 million from the prior fiscal year end balance of $19.8 million. The decrease was primarily due to repayment of the operating line of credit and financed insurance premiums. The remaining balance relates to PPP loans. Refer to Note 3 “Accounting for PPP Loans” in the accompanying consolidated financial statements for additional details.
Current wording
Lines of credit and short-term borrowings totaled $10.3 million at December 31, 2024, an increase of $25,000 from the prior fiscal year end balance. The increase was due to interest accrued on PPP Loans. Refer to Note 3 “Accounting for PPP Loans” in the accompanying consolidated financial statements for additional details.
Previous wording
Accrued expenses and other current liabilities totaled $12.0 million at June 30, 2024, a decrease of $1.1 million from the prior fiscal year end balance of $13.1 million. The decrease was due to the timing of accrued expense payments, as compared to September 30, 2023.
Current wording
Accrued expenses and other current liabilities totaled $10.3 million at December 31, 2024, a decrease of $3.6 million from the prior fiscal year end balance of $13.9 million. The decrease was due to the timing of accrued expense payments, as compared to September 30, 2024.
Previous wording
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.
Current wording
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 as a 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.
Previous wording
On December 16, 2014, the Company’s Nitro subsidiary entered into a 20-year $1.2 million loan agreement with a bank to purchase the office building and property it had previously been leasing. The interest rate on this loan agreement is 4.82% with monthly payments of $7,800. The interest rate on this note is subject to change from time to time based on changes in the U.S. Treasury yield, adjusted to a constant maturity of three years as published by the Federal Reserve weekly. As of June 30, 2024, the Company had made principal payments of $425,000. The loan is collateralized by the building purchased under this agreement. The note is currently held by Peoples Bank, Inc., formerly First Bank of Charleston, Inc. (West Virginia).
Current wording
On December 16, 2014, the Company’s Nitro subsidiary entered into a 20-year $1.2 million loan agreement with a bank to purchase the office building and property it had previously been leasing. The interest rate on this loan agreement is 4.82% with monthly payments of $7,800. The interest rate on this note is subject to change from time to time based on changes in the U.S. Treasury yield, adjusted to a constant maturity of three years as published by the Federal Reserve weekly. As of December 31, 2024, the Company had made principal payments of $450,000. The loan is collateralized by the building purchased under this agreement. The note is currently held by Peoples Bank, Inc.
Showing the first 40 of 68 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
On August 8, 2024, the Company renewed its $30.0 million line of credit with a maturity date of June 28, 2026. The interest rate on the line of credit is the “Wall Street Journal” Prime Rate (the index) with a floor of 4.99%.
Current report — wording carried from elsewhere
installment payments of $60,000 and has a fixed interest rate of 6.0%. The loan is collateralized by the Company’s equipment and receivables. As of December 31, 2024, the Company had made principal payments of $1.2 million.
Current report — wording carried from elsewhere
The Company leases office and shop space for Ryan Construction’s headquarters in Bridgeport, West Virginia. The Company renewed the lease for one year effective October 1, 2024 through September 30, 2025. The Company has only committed to a one-year renewal and is evaluating the intent to renew for additional periods.
Current report — wording carried from elsewhere
Please see the tables below for customers that represent 10.0% or more of the Company’s accounts receivable, net of retention at December 31, 2024 and September 30, 2024:
Current report — wording carried from elsewhere
United Bank provided $5.0 million in loans to fund the Project. SQP and Ventures have jointly provided an unconditional guarantee for the $5.0 million of obligations associated with the Project.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Our revenues and results of operations can and usually are subject to seasonal variations. These variations are the result of weather, customer spending patterns, bidding seasons and holidays. The first quarter of the calendar year is typically the slowest in terms
Previous report — wording carried elsewhere
period in the prior year. The increase was primarily related to additional personnel hired to secure and manage work for expected growth.
Previous report — wording carried elsewhere
would affect these companies. However, the Company generally has certain statutory lien rights with respect to services provided. Under certain circumstances such as foreclosure, the Company may take title to the underlying assets in lieu of cash in settlement of receivables.
Previous report — wording carried elsewhere
the principal balance remaining and shall be at the stated rate of 3.5% per year. The Company has made $750,000 in principal payments on this note as of June 30, 2024.
Previous report — wording carried elsewhere
including interim periods within those the fiscal years, beginning after December 15, 2023. Entities should apply the amendments prospectively to business combinations that occur after the effective date. Early adoption is permitted, including in any interim period, for public business entities for periods for which financial statements have not yet been issued, and for all other entities for periods for which financial statements have not yet been made available for issuance. The Company is currently assessing the effect that ASU 2021-08 will have on its results of operations, financial position and cash flows; however, the Company does not expect a significant impact.