OKLAHOMA CITY, May 15, 2018 /PRNewswire/ -- Energy and Environmental Services, Inc. ("we" or the "Company") (OTC: EESE) today announced its unaudited financial results for the first quarter ended March 31, 2018.
"We're pleased with the company's continued upward trend shown in the first quarter," stated Leon Joyce, CEO. "As demand looks to remain strong moving forward, we will remain focused on growing revenues and expanding our product lines," added Joyce.
First Quarter 2018 Financial Highlights
- Sales revenues continued to strengthen with an increase of $829,400 (110%) from $755,200 in the First Quarter 2017 to $1,584,600 for the First Quarter 2018. Our gross profit grew $192,700 (33.0%) from $584,500 in the First Quarter 2107 to $777,200 in the First Quarter 2018.
- Operating expenses were reduced $194,000 (18.8%) from $1,030,800 in the First Quarter 2017 to $836,800 in the First Quarter 2018.
- EBITDA for the First Quarter 2018 was $53,800 compared to $(298,000) for the First Quarter 2017.
- Our net loss for the First Quarter 2018 was $(17,500) versus a net loss of $(445,500) in the First Quarter 2017.
Capital Resources and Outlook
Our primary source of capital has been cash flow from operations. We have had limited borrowings in recent years and have not sold shares to generate capital. Our balance sheet remains strong and at March 31, 2018, we had cash and cash equivalents of $3,059,400, which reflects a net decrease of $592,000 from the beginning of the First Quarter 2018 period. Much of the net decrease came from a $739,300 increase in accounts receivable and, to a lesser extent, $177,600 in higher inventories, both of which grew as sales demand expanded. With working capital of $5,400,700 at March 31, 2018, we have sufficient capacity to meet our cash needs and will continue to focus on increasing revenues.
We believe our revenues will continue to increase. With improved margins, we expect a return to profitability by year end 2018. We expect that our chemical sales will continue to grow as oil and gas industry activity increases. The latter part of the year should see growth in our coating product sales with the Vortex joint venture coming on line. Our enzyme and probiotics products are nearing final stages of development, and we expect several products to reach market later this year.
Amended Bylaws and Board Committees
As the Company prepares to transition to registration under the Securities Exchange Act of 1934, the Board of Directors adopted amended and restated bylaws, which better suits a publicly-held company.
The new bylaw provisions address:
- Use of electronic transmission and remote communication in meetings of shareholders and directors and for other corporate communications
- Advance notice of any director nomination or other proposal by a proposing shareholder and requiring certain qualifications for director nominees, which ensure that adequate background information and suitability are afforded before the meeting.
- Use of written consents by shareholders, which was not previously covered.
- Requirement that derivative actions, claims of fiduciary breach against a director, claims under the Colorado Business Corporation Act, and claims relating to the Company's internal affairs must be brought in the District Court of Arapahoe County, Colorado.
- Authorizing the creation of board committees and establishing procedures for their constitution and operation.
The Board has also authorized the creation of an Audit Committee and a Compensation Committee and appointed directors to those committees. James Merrill will chair the Audit Committee and Mark Day will also serve. The Audit Committee will work with the Company's auditors, accountants and consultants to prepare for an audit of the Company's year-end 2018 financial statements. Mark Day will chair the Compensation Committee and James Merrill will also serve. The Compensation Committee will handle executive compensation matters, including the administration of the Company's proposed equity incentive compensation plan. Mr. Merrill and Mr. Day are both independent directors.
About EES
Energy and Environmental Services, Inc. (EES), based in Oklahoma City, participates in the oilfield chemical, anti-corrosive coatings and biotech industries. EES was established in 1991 and management has over 50 years of experience blending, manufacturing and packaging custom liquids and solid chemicals for the oil, gas and agricultural industries. Additionally, the company has expanded to develop innovative products and applications for enzyme system technologies, livestock feed supplements, specialized anti-corrosive coatings and solar well treatment systems.
Company website www.eesokc.com
Safe Harbor for Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Energy & Environmental Services actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Energy & Environmental Services expressly disclaims any intent or obligation to update any forward-looking statements.
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SOURCE Energy and Environmental Services, Inc.
