Enservco Corporation (NYSE American: ENSV), a diversified national
provider of specialized well-site services to the domestic onshore
conventional and unconventional oil and gas industries, today
reported financial results for its third quarter and nine-month
period ended September 30, 2019.
“Drilling and completion activity slowed in the third quarter
and is expected to continue tapering off through year-end as our
customers focus on capital discipline and living within cash
flows,” said Ian Dickinson, President and CEO. “Our third
quarter was highlighted by double digit growth in both our well
enhancement and water transfer segments, although industry price
compression and some anomalous expense events negatively impacted
our overall profit metrics in the quarter. Nevertheless, for
the nine-month period ended September 30, 2019, we achieved 19%
revenue growth, a reduction of our net loss compared to the same
period last year, and positive adjusted EBITDA. Due to the
seasonality of our business, we believe our full year financial
results are a more accurate reflection of the trajectory of our
business than quarter-to-quarter results. Assuming commodity
prices remain stable, we anticipate an uptick in customer activity
in the first quarter of 2020 as capital budgets are refreshed.
“We continue to take actions to position Enservco for success
over the long term, and we believe that new customer wins and
growing market share are confirmation that our strategy is
working,” Dickinson added. “We have invested in process
improvement initiatives and continue to strengthen our IT
infrastructure, which resulted in a meaningful reduction in our
DSOs in the latter half of 2019. Our e-ticketing and
e-dispatch programs – currently in implementation phase – are
expected to yield further improvements. We have also driven
significant cost synergies following our acquisition of Adler Hot
Oil Service, taking approximately $1.0 million in redundant costs
out of our business related to headcount and consolidation of field
locations. We believe these initiatives position us to
achieve meaningful margin expansion and improved shareholder
returns over the long term.”
Nine Month ResultsTotal revenue for the nine
months ended September 30, 2019, increased 19% to $38.1 million
from $32.0 million in the same period last year.
Well enhancement services revenue grew 19% to $34.9 million from
$29.5 million last year. The well enhancement segment included frac
water heating, up 29% to $22.7 million from $17.7 million; hot
oiling, up 9% to $9.5 million from $8.7 million; and acidizing,
down 25% to $1.8 million from $2.4 million. The well enhancement
segment generated income of $9.1 million for the nine-month period,
up 38% from income of $6.6 million in the same period last
year.
Water transfer revenue increased 25% year over year to $3.2
million from $2.6 million in the same period last year. The
water transfer segment generated a loss of $1.1 million through
nine months versus a loss of $28,000 in the same period last
year. The loss was primarily related to first quarter cost
overruns due to multiple line freeze events.
Total operating expenses increased 18% in the first nine months
to $41.3 million from $34.8 million in the same period last year
due primarily to higher direct variable costs associated with
increased activity and to the aforementioned water transfer cost
overruns in the first quarter. Sales, general and administrative
expenses increased 28% to $4.8 million from $3.8 million last year
due largely to the impact of the Adler Hot Oil acquisition,
although in the third quarter of 2019 the Company achieved
approximately $1.0 in cost reductions through elimination of
redundant personnel and facilities. Investment in IT
infrastructure and processes also contributed to higher costs in
the period. Depreciation and amortization expense was up 15%
year over year to $5.1 million from $4.4 million due to the
increased fleet size.
Operating loss through the first nine months was $3.1 million,
up 12% year over year from $2.8 million . Net loss, including
a gain of approximately $1.2 million related to the April
settlement agreement with the sellers of Adler, improved 19% year
over year to $4.3 million versus $5.3 million in the same period
last year. Net loss per diluted share was $0.08 versus a net loss
per diluted share of $0.10 in the same period last year.
Adjusted EBITDA through the first nine months of 2019 was
essentially flat at $2.6 million.
Enservco generated $8.5 million in cash from operations in the
first nine months of 2019, up 50% from $5.7 million in the same
period last year.
Third Quarter ResultsTotal revenue in the third
quarter ended September 30, 2019, increased 23% to $4.7 million
from $3.8 million in the same quarter last year.
Well enhancement services revenue increased 19%
year over year to $3.8 million from $3.2 million. The well
enhancement segment included hot oiling, up 20% to $2.7 million
from $2.2 million; acidizing, up 4% to $635,000 from $609,000; and
frac water heating, flat at $48,000. The well enhancement segment
generated a loss of $737,000 in the third quarter compared to a
loss of $746,000 in the same quarter last year.
Water transfer segment revenue increased 42% in
the third quarter to $899,000 from $634,000 in the same quarter
last year. The segment generated income of $70,000 compared
to a loss of $16,000 in the third quarter last year.
Total operating expenses in the third quarter increased 28% year
over year to $9.3 million from $7.3 million due to additional costs
of supporting increased customer activity and to higher corporate
and depreciation and amortization costs. Sales, general and
administrative expense increased 48% in the third quarter to $1.7
million from $1.2 million due to a one-time insurance accrual,
investments in IT infrastructure and processes, and management
transition costs. Depreciation and amortization expense
increased 20% to $1.7 million from $1.4 million due to the increase
in fleet size following the Adler acquisition.
Operating loss in the third quarter increased 33% to $4.6
million from an operating loss of $3.5 million in the third quarter
of 2018. Net loss in the third quarter increased 32% to
$5.4 million, or $0.10 per diluted share, from a net loss of $4.1
million, or $0.08 per diluted share, in the same quarter last
year.
Adjusted EBITDA loss in the third quarter was $2.7 million, up 38%
from a loss of $1.9 million in the same quarter last year.
Conference Call InformationManagement will hold
a conference call today to discuss these results. The call
will begin at 2:30 p.m. Mountain Time (4:30 p.m. Eastern) and will
be accessible by dialing 844-369-8770 (862-298-0840 for
international callers). No passcode is necessary. A
telephonic replay will be available through November 27, 2019, by
calling 877-481-4010 (919-882-2331 for international callers) and
entering the Conference ID #55929. To listen to the webcast,
participants should go to the ENSERVCO website at www.enservco.com
and link to the “Investors” page at least 15 minutes early to
register and download any necessary audio software. A replay of the
webcast will be available for 90 days. The webcast also is
available at the following
link: https://www.investornetwork.com/event/presentation/55929
About EnservcoThrough its various operating
subsidiaries, Enservco provides a wide range of oilfield services,
including hot oiling, acidizing, frac water heating, water transfer
and related services. The Company has a broad geographic
footprint covering seven major domestic oil and gas basins and
serves customers in Colorado, 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
(net income or loss) 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
StatementsThis 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 Enservco’s annual report on Form 10-K for the year ended
December 31, 2018, and subsequently filed documents with the
SEC. Forward looking statements in this news release that are
subject to risk include the ability to continue generating positive
financial results; prospects for commodity prices to remain stable
and for producers to refresh capital budgets in 2020;
management’s belief that year-to-year financial results are a
more accurate measure of the company’s trajectory; anticipation of
an uptick in customer activity in early 2020; and expectations for
margin expansion and improved shareholder returns. 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.
Contact:
Jay PfeifferPfeiffer High Investor Relations,
Inc.Phone: 303-880-9000Email: jay@pfeifferhigh.com
|
|
ENSERVCO CORPORATION |
CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS |
(in thousands) |
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well enhancement services |
|
$ |
3,798 |
|
|
$ |
3,200 |
|
|
$ |
34,949 |
|
|
$ |
29,490 |
|
|
Water transfer services |
|
|
899 |
|
|
|
634 |
|
|
|
3,194 |
|
|
|
2,558 |
|
|
|
|
|
|
4,697 |
|
|
|
3,834 |
|
|
|
38,143 |
|
|
|
32,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well enhancement services |
|
|
4,535 |
|
|
|
3,946 |
|
|
|
25,897 |
|
|
|
22,937 |
|
|
Water transfer services |
|
|
829 |
|
|
|
650 |
|
|
|
4,301 |
|
|
|
2,586 |
|
|
Functional support and other |
|
|
480 |
|
|
|
141 |
|
|
|
922 |
|
|
|
467 |
|
|
Sales, general and administrative expenses |
|
|
1,723 |
|
|
|
1,161 |
|
|
|
4,801 |
|
|
|
3,750 |
|
|
Patent litigation and defense costs |
|
|
- |
|
|
|
2 |
|
|
|
10 |
|
|
|
77 |
|
|
Severance and Transition Costs |
|
|
83 |
|
|
|
- |
|
|
|
83 |
|
|
|
633 |
|
|
Gain on disposals of equipment |
|
|
(14 |
) |
|
|
- |
|
|
|
(2 |
) |
|
|
(53 |
) |
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
127 |
|
|
|
- |
|
|
Depreciation and amortization |
|
|
1,703 |
|
|
|
1,419 |
|
|
|
5,122 |
|
|
|
4,438 |
|
|
|
Total operating expenses |
|
|
9,339 |
|
|
|
7,319 |
|
|
|
41,261 |
|
|
|
34,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations |
|
|
(4,642 |
) |
|
|
(3,485 |
) |
|
|
(3,118 |
) |
|
|
(2,787 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(695 |
) |
|
|
(471 |
) |
|
|
(2,237 |
) |
|
|
(1,482 |
) |
|
Gain on settlement |
|
|
- |
|
|
|
- |
|
|
|
1,252 |
|
|
|
- |
|
|
Other income (expense) |
|
|
(67 |
) |
|
|
38 |
|
|
|
(175 |
) |
|
|
(468 |
) |
|
|
Total other income (expense) |
|
|
(762 |
) |
|
|
(433 |
) |
|
|
(1,160 |
) |
|
|
(1,950 |
) |
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations Before Tax Expense |
|
|
(5,404 |
) |
|
|
(3,918 |
) |
|
|
(4,278 |
) |
|
|
(4,737 |
) |
Income tax expense |
|
|
- |
|
|
|
- |
|
|
|
(32 |
) |
|
|
(32 |
) |
Loss from continuing operations |
|
$ |
(5,404 |
) |
|
$ |
(3,918 |
) |
|
$ |
(4,310 |
) |
|
$ |
(4,769 |
) |
Discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations of discontinued operations |
|
|
- |
|
|
|
(190 |
) |
|
|
- |
|
|
|
(580 |
) |
|
Income tax benefit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Loss from discontinued operations |
|
|
- |
|
|
|
(190 |
) |
|
|
- |
|
|
|
(580 |
) |
Net loss |
|
$ |
(5,404 |
) |
|
$ |
(4,108 |
) |
|
$ |
(4,310 |
) |
|
$ |
(5,349 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations per Common Share - Basic |
|
$ |
(0.10 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.09 |
) |
Loss from discontinued operations per Common Share - Basic |
|
|
- |
|
|
|
(0.01 |
) |
|
|
- |
|
|
|
(0.01 |
) |
Net loss per share - basic |
|
$ |
(0.10 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations per Common Share - Diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.09 |
) |
Loss from discontinued operations per Common Share - Diluted |
|
|
- |
|
|
|
(0.01 |
) |
|
|
- |
|
|
|
(0.01 |
) |
Net loss per share - diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of common shares outstanding |
|
$ |
55,457 |
|
|
$ |
54,309 |
|
|
$ |
54,925 |
|
|
$ |
52,389 |
|
Add: Dilutive shares assuming exercise of options and warrants |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Diluted weighted average number of common shares outstanding |
|
$ |
55,457 |
|
|
$ |
54,309 |
|
|
$ |
54,925 |
|
|
$ |
52,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENSERVCO
CORPORATION AND SUBSIDIARIES |
Calculation
of Adjusted EBITDA * |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended |
|
For the Nine
Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(5,404 |
) |
|
$ |
(4,108 |
) |
|
$ |
(4,310 |
) |
|
$ |
(5,349 |
) |
|
Add Back (Deduct) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
695 |
|
|
|
471 |
|
|
|
2,237 |
|
|
|
1,482 |
|
|
Provision for income tax expense |
|
|
- |
|
|
|
- |
|
|
|
32 |
|
|
|
32 |
|
|
Depreciation and amortization (including discontinued
operations) |
|
|
1,703 |
|
|
|
1,483 |
|
|
|
5,122 |
|
|
|
4,669 |
|
|
EBITDA* |
|
|
(3,006 |
) |
|
|
(2,154 |
) |
|
|
3,081 |
|
|
|
834 |
|
|
Add Back (Deduct) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
|
52 |
|
|
|
103 |
|
|
|
221 |
|
|
|
291 |
|
|
|
Severance
and transition costs |
|
|
83 |
|
|
|
- |
|
|
|
83 |
|
|
|
633 |
|
|
|
Patent
litigation and defense costs |
|
|
- |
|
|
|
2 |
|
|
|
10 |
|
|
|
77 |
|
|
|
Impairment
loss |
|
|
- |
|
|
|
- |
|
|
|
127 |
|
|
|
- |
|
|
|
Acquisition-related expenses |
|
|
- |
|
|
|
38 |
|
|
|
- |
|
|
|
38 |
|
|
|
Gain on
settlement |
|
|
- |
|
|
|
- |
|
|
|
(1,252 |
) |
|
|
- |
|
|
|
Adler
consolidation |
|
|
156 |
|
|
|
- |
|
|
|
156 |
|
|
|
- |
|
|
|
Other
(income) expense |
|
|
67 |
|
|
|
(38 |
) |
|
|
175 |
|
|
|
468 |
|
|
|
Gain on
disposal of assets |
|
|
(14 |
) |
|
|
- |
|
|
|
(2 |
) |
|
|
(53 |
) |
|
|
EBITDA
related to discontinued operations |
|
|
- |
|
|
|
126 |
|
|
|
- |
|
|
|
350 |
|
|
Adjusted EBITDA* |
|
$ |
(2,662 |
) |
|
$ |
(1,923 |
) |
|
$ |
2,599 |
|
|
$ |
2,638 |
|
|
|
*Note: See
below for discussion of the use of non-GAAP financial
measurements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP
Financial Measures: Non-GAAP results are presented only as a
supplement to the financial statements and for use within
management’s discussion and analysis based on U.S. generally
accepted accounting principles (GAAP). The non-GAAP financial
information is provided to enhance the reader's understanding of
the Company’s financial performance, but no non-GAAP measure should
be considered in isolation or as a substitute for financial
measures calculated in accordance with GAAP. Reconciliations of the
most directly comparable GAAP measures to non-GAAP measures are
provided herein. |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA is defined
as net (loss) income (earnings), before interest expense, income
taxes, and depreciation and amortization. Adjusted EBITDA excludes
stock-based compensation from EBITDA and, when appropriate, other
items that management does not utilize in assessing the Company’s
ongoing operating performance as set forth in the next paragraph.
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
All of the items
included in the reconciliation from net income to EBITDA and from
EBITDA to Adjusted EBITDA are either (i) non-cash items (e.g.,
depreciation, amortization of purchased intangibles, stock-based
compensation, impairment losses, etc.) or (ii) items that
management does not consider to be useful in assessing the
Company’s ongoing operating performance (e.g., income taxes, gain
or losses on sale of equipment, severance and transition
costs, gain on settlement, expenses to consolidate former Adler
facilities, patent litigation and defense costs, other expense
(income), EBITDA related to discontinued operations, etc.). In the
case of the non-cash items, management believes that investors can
better assess the company’s operating performance if the measures
are presented without such items because, unlike cash expenses,
these adjustments do not affect the Company’s ability to generate
free cash flow or invest in its business. |
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We use, and we
believe investors benefit from the presentation of, EBITDA and
Adjusted EBITDA in evaluating our operating performance because it
provides us and our investors with an additional tool to compare
our operating performance on a consistent basis by removing the
impact of certain items that management believes do not directly
reflect our core operations. We believe that EBITDA is useful to
investors and other external users of our financial statements in
evaluating our operating performance because EBITDA is widely used
by investors to measure a company’s operating performance without
regard to items such as interest expense, taxes, and depreciation
and amortization, which can vary substantially from company to
company depending upon accounting methods and book value of assets,
capital structure and the method by which assets were acquired.
Additionally, our fixed charge coverage ratio
covenant associated with our Loan and Security
Agreement with East West Bank require the use of Adjusted
EBITDA in specific calculations. |
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Because not all
companies use identical calculations, the Company’s presentation of
non-GAAP financial measures may not be comparable to other
similarly titled measures of other companies. However, these
measures can still be useful in evaluating the Company’s
performance against its peer companies because management believes
the measures provide users with valuable insight into key
components of GAAP financial disclosures. |
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|
ENSERVCO CORPORATION AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
September |
|
December 31, |
ASSETS |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
(Unaudited) |
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
- |
|
|
$ |
257 |
|
|
Accounts receivable, net |
|
|
2,914 |
|
|
|
10,729 |
|
|
Prepaid expenses and other current assets |
|
|
688 |
|
|
|
1,081 |
|
|
Inventories |
|
|
338 |
|
|
|
514 |
|
|
Income tax receivable, current |
|
|
85 |
|
|
|
85 |
|
|
Current assets of discontinued operations |
|
|
28 |
|
|
|
864 |
|
|
|
Total current assets |
|
|
4,053 |
|
|
|
13,530 |
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
29,368 |
|
|
|
33,057 |
|
Goodwill |
|
|
546 |
|
|
|
546 |
|
Intangible assets, net |
|
|
880 |
|
|
|
1,033 |
|
Income taxes receivable, noncurrent |
|
|
28 |
|
|
|
28 |
|
Right-of-use asset - financing, net |
|
|
702 |
|
|
|
- |
|
Right-of-use asset - operating, net |
|
|
4,450 |
|
|
|
- |
|
Other assets |
|
|
431 |
|
|
|
650 |
|
Non-current assets of discontinued operations |
|
|
- |
|
|
|
177 |
|
TOTAL ASSETS |
|
$ |
40,458 |
|
|
$ |
49,021 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
2,962 |
|
|
$ |
3,391 |
|
|
Note Payable |
|
|
- |
|
|
|
3,868 |
|
|
Lease liability - financing, current |
|
|
238 |
|
|
|
- |
|
|
Lease liability - operating, current |
|
|
963 |
|
|
|
- |
|
|
Current portion of long-term debt |
|
|
149 |
|
|
|
149 |
|
|
Current liabilities of discontinued operations |
|
|
- |
|
|
|
44 |
|
|
|
Total current liabilities |
|
|
4,312 |
|
|
|
7,452 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Liabilities |
|
|
|
|
|
|
|
|
|
Senior revolving credit facility |
|
|
29,459 |
|
|
|
33,882 |
|
|
Subordinated debt |
|
|
1,869 |
|
|
|
1,832 |
|
|
Long-term debt, less current portion |
|
|
219 |
|
|
|
312 |
|
|
Lease liability - financing, less current portion |
|
|
343 |
|
|
|
- |
|
|
Lease liability - operating, less current portion |
|
|
3,551 |
|
|
|
- |
|
|
Other liability |
|
|
94 |
|
|
|
941 |
|
|
|
Total long-term liabilities |
|
|
35,535 |
|
|
|
36,967 |
|
|
|
Total liabilities |
|
|
39,847 |
|
|
|
44,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Preferred stock, $.005 par value, 10,000,000 shares authorized, no
shares issued or outstanding |
|
|
- |
|
|
|
- |
|
|
Common stock. $.005 par value, 100,000,000 shares authorized,
55,602,829 and 54,389,829 shares issued, respectively; 103,600
shares of treasury stock; and 55,499,229 and 54,286,229 shares
outstanding, respectively |
|
|
278 |
|
|
|
271 |
|
|
Additional paid-in capital |
|
|
22,011 |
|
|
|
21,797 |
|
|
Accumulated deficit |
|
|
(21,678 |
) |
|
|
(17,466 |
) |
|
|
Total stockholders' equity |
|
|
611 |
|
|
|
4,602 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
40,458 |
|
|
$ |
49,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENSERVCO CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF CASH FLOWS |
(In thousands) |
(Unaudited) |
|
|
|
|
For the Nine Months Ended |
|
|
|
|
September 30, |
|
|
|
|
|
2019 |
|
|
|
2018 |
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,310 |
) |
|
$ |
(5,349 |
) |
|
Net loss from discontinued operations |
|
|
- |
|
|
|
(580 |
) |
|
Net loss from continuing operations |
|
|
(4,310 |
) |
|
|
(4,769 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,122 |
|
|
|
4,438 |
|
|
|
Gain on disposal of equipment |
|
|
(2 |
) |
|
|
(53 |
) |
|
|
Impairment loss |
|
|
127 |
|
|
|
- |
|
|
|
Gain on settlement |
|
|
(1,252 |
) |
|
|
- |
|
|
|
Change in fair value of warrant liability |
|
|
- |
|
|
|
540 |
|
|
|
Stock-based compensation |
|
|
221 |
|
|
|
291 |
|
|
|
Amortization of debt issuance costs and discount |
|
|
273 |
|
|
|
164 |
|
|
|
Lease termination expense |
|
|
62 |
|
|
|
- |
|
|
|
Provision for bad debt expense |
|
|
171 |
|
|
|
32 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
7,636 |
|
|
|
8,913 |
|
|
|
Inventories |
|
|
176 |
|
|
|
49 |
|
|
|
Prepaid expense and other current assets |
|
|
305 |
|
|
|
(128 |
) |
|
|
Amortization of operating lease asset |
|
|
599 |
|
|
|
- |
|
|
|
Other assets |
|
|
239 |
|
|
|
231 |
|
|
|
Accounts payable and accrued liabilities |
|
|
(477 |
) |
|
|
(3,340 |
) |
|
|
Operating lease liabilities |
|
|
(546 |
) |
|
|
- |
|
|
|
Other liabilities |
|
|
104 |
|
|
|
- |
|
|
|
Net cash provided by operating activities - continuing
operations |
|
|
8,448 |
|
|
|
6,368 |
|
|
|
Net cash provided by (used in) operating activities - discontinued
operations |
|
|
40 |
|
|
|
(704 |
) |
|
|
Net cash provided by operating activities |
|
|
8,488 |
|
|
|
5,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(1,206 |
) |
|
|
(1,586 |
) |
|
Proceeds from disposals of property and equipment |
|
|
219 |
|
|
|
145 |
|
|
Proceeds from insurance claims |
|
|
27 |
|
|
|
122 |
|
|
|
Net cash used in investing activities - continuing operations |
|
|
(960 |
) |
|
|
(1,319 |
) |
|
|
Net cash provided by (used in) investing activities - discontinued
operations |
|
|
760 |
|
|
|
(44 |
) |
|
|
Net cash used in investing activities |
|
|
(200 |
) |
|
|
(1,363 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Net line of credit payments |
|
|
(4,474 |
) |
|
|
(4,544 |
) |
|
Repayment of long-term debt |
|
|
(3,700 |
) |
|
|
(79 |
) |
|
Payments of finance leases |
|
|
(278 |
) |
|
|
- |
|
|
Repayment of note |
|
|
(92 |
) |
|
|
- |
|
|
Other financing activities |
|
|
(1 |
) |
|
|
(30 |
) |
|
|
Net Cash used in financing activities |
|
|
(8,545 |
) |
|
|
(4,653 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash and Cash
Equivalents |
|
|
(257 |
) |
|
|
(352 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, beginning of
period |
|
|
257 |
|
|
|
391 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, end of period |
|
$ |
- |
|
|
$ |
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information: |
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
1,794 |
|
|
$ |
1,273 |
|
|
Cash paid for income taxes |
|
$ |
32 |
|
|
$ |
32 |
|
Supplemental Disclosure of Non-cash Investing and Financing
Activities: |
|
|
|
|
|
|
|
|
|
Non-cash proceeds from revolving credit facility |
|
$ |
125 |
|
|
$ |
103 |
|
|
Cashless exercise of stock options |
|
$ |
- |
|
|
|
994 |
|
|
Non-cash pconversion of warrant liability to equity |
|
$ |
- |
|
|
|
500 |
|
|
Non-cash subordinated debt principal payment |
|
$ |
- |
|
|
|
(500 |
) |
|
Non-cash conversion of warrant liability to equity |
|
$ |
- |
|
|
|
1,371 |
|
|
|
|
|
|
|
|
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