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Sep 30, 2020
Enservco Q3 2020 Earnings Report
Reported net income of $8.4 million due to $11.9 million gain on restructured debt and revenue of $1.8 million versus $3.8 million year over year.
Key Takeaways
Enservco reported third quarter results with revenue of $1.8 million and a net income of $8.4 million, driven by a gain on debt restructuring. The company has focused on cost reductions and strengthening its balance sheet.
Refinancing reduced debt by $16.0 million and added $12.5 million to stockholders’ equity.
Implemented $4.0 million in cost reductions.
Raised $1.3 million of equity in October to support working capital needs.
Net income of $8.4 million resulted from $11.9 million gain on restructured debt.
Enservco
Enservco
Enservco Revenue by Segment
Revenue by Segment
Production services Revenue
CapyFin.comCompletion services Revenue
CapyFin.com Forward Guidance
Enservco anticipates an uptick in activity as the heating season progresses and is excited about long-term prospects for growth and delivering improved shareholder value.
Positive Outlook
- Anticipating an uptick in activity as the heating season progresses.
- Optimized the location of fleet to take advantage of any industry recovery in the near term.
- Entering 2020/21 heating season, typically most prolific period.
- Expanded blue-chip customer base.
- Leaner, more nimble organization.
Challenges Ahead
- Lower commodity prices.
- COVID-19 impact.
- Oilfield services market became more competitive.
- Reduced pricing and gross margins.
- Dependence on weather conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income