Enservco Updates Stockholders on Preliminary First Quarter Financial Results
17 April 2020 - 6:01AM
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 expects 2020 first quarter revenue to be between $9.3
million and $9.4 million versus revenue of $24.8 million in the
first quarter last year. These preliminary revenue estimates
have been adjusted to reflect the discontinuation of water transfer
operations in the fourth quarter of 2019. In addition, net
income and adjusted EBITDA for the first quarter are expected to
decrease significantly compared to prior-year levels.
Ian Dickinson, President and CEO, said the results reflect
ongoing weakness in domestic oil and gas activity levels driven by
lower commodity prices, related pricing pressures, and the more
recent and broader impact of the COVID-19 pandemic. In response to
the challenging market environment, we have taken meaningful action
to right size the cost structure and win additional market share.
He added that it is too early in the first quarter close process to
provide adjusted EBITDA information.
Enservco also announced it has entered into a $1.9 million
promissory note with East West Bank pursuant to the Paycheck
Protection Program under Division A, Title I of the CARES Act,
which was enacted March 27, 2020. The note bears interest at
1% annually and matures April 10, 2022, although amounts of the
note may be forgiven if proceeds are used for qualifying expenses
such as payroll and group healthcare benefits, mortgages and
mortgage interest, rent and utilities. Enservco intends to
use all proceeds for qualifying expenses.
In addition, Enservco announced it has received notification
from the NYSE American LLC (the “NYSE American”) indicating
that the Company is not in compliance with the NYSE American’s
continued listing standards set forth in Section 1003(a)(iii) of
the Company Guide in that it has reported stockholders’ equity of
less than $6 million as of December 31, 2019, and reported losses
from continuing operations and/or net losses in its five most
recent fiscal years. Section 1003(a)(iii) is one of three
equity thresholds the Company is not in compliance with. The
Company previously reported non-compliance with the two other
thresholds – Section 1003(a)(i) and Section 1003(a)(ii).
On February 19, 2020, Enservco announced that the NYSE
American LLC (the “NYSE American”) has approved the Company’s plan
to regain compliance with the NYSE’s continued listing standard
related to stockholders’ equity. Accordingly, Enservco’s
common stock will continue to be listed on the NYSE American
pursuant to an extension.
The Company’s compliance plan calls for Enservco to achieve a
stockholders’ equity balance of at least $6.0 million by June 3,
2021. Under terms of the extension, Enservco will be required
to demonstrate progress toward its stockholders’ equity compliance
plan and to provide the NYSE American with quarterly updates.
About EnservcoThrough its various operating
subsidiaries, Enservco provides a wide 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 and West
Virginia. Additional information is available at
www.enservco.com
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," “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, 2019, and subsequently filed documents with the
SEC. Forward looking statements in this news release that are
subject to risk include the Company’s ability to regain compliance
with the NYSE American’s listing requirements and the possibility
that amounts of the promissory note will be forgiven. 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, except as required by law.
Contact:Pfeiffer High Investor
Relations, Inc.Jay PfeifferPhone: 303-880-9000Email:
jay@pfeifferhigh.com
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