Loading...
•
Jun 30, 2020
Enservco Q2 2020 Earnings Report
Enservco's Q2 2020 financial results reflected reduced customer activity due to lower commodity prices and the economic slowdown related to the COVID-19 pandemic.
Key Takeaways
Enservco Corporation reported a decrease in revenue for the second quarter of 2020, down to $2.1 million from $6.3 million in the same quarter last year. The company's net loss was $4.4 million, or $0.08 per diluted share, compared to a net loss of $3.2 million, or $0.06 per diluted share, in the same quarter last year. The company has taken steps to reduce costs by $4.0 million on an annualized basis.
Second quarter results reflected reduced customer activity due to lower commodity prices and the economic slowdown related to the COVID-19 pandemic.
Company has taken decisive steps to bring cost structure in line with lower revenue levels, with more than $4.0 million in annualized costs taken out of the business year to date.
Preparing for an expected increase in customer activity in the upcoming heating season and have redeployed assets to stronger markets.
Working to refinance bank debt to strengthen balance sheet, including a 45-day extension on the maturity date of the senior secured revolving credit facility from East West Bank.
Enservco
Enservco
Enservco Revenue by Segment
Revenue by Segment
Production services Revenue
CapyFin.comCompletion services Revenue
CapyFin.com Forward Guidance
Enservco anticipates an increase in customer activity during the upcoming heating season and is working to refinance its bank debt to strengthen its balance sheet.
Positive Outlook
- Expected increase in customer activity in the upcoming heating season.
- Company has redeployed assets to stronger markets.
- East West Bank granted a 45-day extension on the maturity date of the senior secured revolving credit facility.
- Cross River Partners has agreed to convert approximately $1.5 million in subordinated debt and accrued interest into unregistered Enservco common stock.
- Company is working with potential new funding sources to secure a debt refinancing package.
Challenges Ahead
- Slowdown has continued into the third quarter.
- Refinancing process is ongoing and there is no assurance of a successful outcome.
- Second quarter results reflected reduced customer activity due to lower commodity prices.
- Economic slowdown related to the COVID-19 pandemic.
- Net loss in the second quarter was $4.4 million, or $0.08 per diluted share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income