Enservco Corporation Announces it Will Amend its Financial Statements for First, Second and Third Quarters of 2021
March 28 2022 - 8:15AM
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
announced it will restate its financial statements on three Form
10-Q filings from 2021. The amendments are not related to operating
matters and will not affect the Company’s reported revenue,
operating expenses, operating loss, or adjusted EBITDA. In
addition, the Company intends to extend the filing date of its 2021
Form 10-K for up to 15 days to incorporate the restatements and the
successful debt refinancing transactions announced today.
“The restatements were required for two reasons:
First, our auditors believe that the Company was not eligible for
the full amount of employee retention tax credits that we recorded
pursuant to the CARES Act; and second, the Company erred in
accounting for a warrant issuance in connection with the February
2021 conversion of subordinated debt to equity,” said Rich Murphy,
Chairman and CEO. “It’s important to note that these restatements
are not related to operating matters and do not impact revenue,
operating expenses, operating loss or adjusted EBITDA. We expect to
file three amended Form 10-Qs and our 2021 Form 10-K as soon
practicable.”
The Company said it applied for the employee
retention tax credits based on third-party expert advice at the
time and further based on management’s understanding of the CARES
Act, the rules for which were subsequently clarified.
Murphy added, “The pending amendments did not
impact the successful refinancing that we also announced today that
substantially reduced our total debt, converted the majority of our
debt from current to long-term liabilities and provided increased
working capital liquidity. This refinancing strengthens and
stabilizes our balance sheet and increases our financial
flexibility.”
About Enservco Through its
various operating subsidiaries, Enservco provides a range of
oilfield services, including hot oiling, acidizing, frac water
heating, 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, West Virginia, Utah,
Michigan, Illinois, Florida, New Mexico and
Louisiana. Additional information is available at
www.enservco.com.
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," "intends,"
"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, 2020, and subsequently filed documents with the SEC.
Forward looking statements in this news release include ability of
the Company to filed amended Form 10-Qs and its 2021 Form 10-K,
achieve its growth objectives, the sustainability of higher oil
prices, ability to de-lever the business and strengthen its balance
sheet and increase financial flexibility. In addition, we believe
the higher oil price environment bodes well for the Company in the
and the ability raise additional equity. Enservco disclaims any
obligation to update any forward-looking statement made herein,
except as required by law.
Contact:
Marjorie Hargrave President and CFO Enservco
Corporation mhargrave@enservco.com
Pfeiffer High Investor Relations, Inc. Jay
Pfeiffer Phone: 303-880-9000 Email: jay@pfeifferhigh.com
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