News & Events zu Energy Services Of America Corp (ESOA)ESOAEnergy Services Of America Corp

Energy Services of America Acquires FAMCO for $6.95M

Energy Services of America has entered into an Asset Purchase Agreement with FAMCO, a West Virginia utility contractor focused primarily on water and sewer infrastructure. Under the terms of the agreement, Energy Services' new subsidiary, FAMCO Acquisition, will purchase substantially all of the operating assets of FAMCO for a base purchase price of $6.95M, subject to the adjustments and other terms set forth in the agreement. At closing, three-eighths of the purchase price will be paid in cash. One-half of the purchase price will be paid in Energy Services common stock, to be issued as soon as possible after closing, and the remaining one-eighth will be withheld pending a post-closing true-up. The company currently anticipates the transaction will close on or about October 9. The acquisition is expected to complement the company's existing water and utility construction operations.

Energy Services Reports Q3 Revenue of $130.0M

Reports Q3 revenue $130.0M vs. $103.6M last year. "Our Q3 results reflect strength across each of our segments, thanks to continued demand for water distribution and electrical construction as well as the continued recovery in our gas transmission business. The quarter also benefited from the more favorable weather throughout the spring, allowing our projects to start on or ahead of schedule," said Doug Reynolds, President of Energy Services. "Profitability during the quarter was slightly affected by a lower-than-expected gross profit margin on a large gas transmission project, but the diversity of our business allowed us to absorb this impact and still report a 58% increase in year-over-year net income."

Energy Services Company Quarterly Dividend Increases by 33%

Doug Reynolds, President of Energy Services, said, "We remain optimistic about the near and longer-term opportunities for the business, driven by the ongoing replacement cycle for water infrastructure and the growth in electric demand and build out of data centers across the country. This confidence is reflected in the 33% increase in our quarterly dividend, which is an important component in our focus of delivering long-term shareholder return."