NYSE$ENSV

Enservco Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$2.14M

Previous: $7.21M-70.3%
EPS (adj)

-$1.18

Previous: -$0.06-1866.7%
Adjusted EBITDA

-$2.1M

Previous: -$1.5M-40.0%
Capital Expenditures

-$306K

Previous: -$567K+46.0%
Free Cash Flow

-$1.19M

Previous: $5.29M-122.5%
Net Income

-$4.36M

Previous: -$3.21M-35.8%
Operating Income

-$3.91M

Previous: -$3.73M-4.9%
Gross Profit

-$1.19M

Previous: -$518K-129.5%
Cash & Equivalents

$429K

Previous: $506K-15.2%
Total Assets

$33M

Previous: $48.7M-32.3%
Stock-Based Comp

$322K

Previous: $76K+323.7%

Revenue & EPS history

Enservco · Revenue · Quarterly

$2.14M

Q2 2020-70.3%vs Q2 2019
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Enservco · $2.16M total across 2 segments · Q2 2020

  • Production services
    $1.4M-63.2%
  • Completion services
    $758K-69.7%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-3.6%

Avg return

30 days after

40%

24 / 60 earnings

Positive

+41.5%

Q1 2023

Best reaction

-25.0%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2024-8.3%-20.8%-20.0%
Q2 2024-6.2%-12.2%-32.2%
Q1 2024+3.4%+49.9%+14.6%
Q4 2023+3.4%+20.2%+18.9%
Q3 2023-4.4%-1.5%-23.4%
Q2 2023-6.3%-14.0%+5.0%
Q1 2023+41.5%+17.1%-4.2%
Q4 2022-6.7%-5.5%-19.6%
Q3 2022-7.5%-12.3%-23.3%
Q1 2022+6.5%+51.4%+85.5%
Q2 2022+13.1%+3.4%-15.4%
Q4 2021+13.1%+3.4%-15.4%
Q4 2024-17.6%-17.6%-6.7%
Q3 2021-10.5%-15.8%-27.8%
Q2 2021-3.3%+4.9%+12.3%
Q1 2021+7.1%+4.7%-19.5%
Q4 2020-9.4%-4.2%-33.4%
Q3 2020-3.8%-10.4%-5.2%
Q2 2020+6.4%-1.1%-25.0%
Q1 2020+3.0%-6.9%+55.8%
Q4 2019-8.4%-3.5%+0.9%
Q3 2019+5.9%+1.0%+23.2%
Q2 2019-14.8%-15.6%-42.2%
Q1 2019-1.2%-10.4%-15.4%
Q4 2018+8.2%+5.4%-10.6%
Q3 2018+3.9%-0.8%-24.0%
Q2 2018-0.8%-11.0%-13.4%
Q1 2018-5.5%+0.0%+22.0%
Q4 2017-10.0%-16.5%-5.3%
Q3 2017-16.3%-13.6%-11.2%
Q2 2017+4.2%+14.5%+25.0%
Q1 2017+16.6%+18.0%-3.8%
Q4 2016+11.5%-6.5%+14.7%
Q3 2016+4.8%+21.9%+7.7%
Q2 2016-5.1%-7.3%-14.7%
Q1 2016-9.0%
Q4 2015-10.8%
Q3 2015+7.9%
Q2 2015+0.0%
Q1 2015-1.1%
Q4 2014-8.3%
Q3 2014-2.8%
Q2 2014-2.9%
Q1 2014-2.5%
Q4 2013+2.0%
Q3 2013-0.1%
Q2 2013-0.7%
Q1 2013+1.6%
Q4 2012+7.5%
Q3 2012-8.9%
Q2 2012+0.0%
Q1 2012-25.0%
Q4 2011-21.3%
Q3 2010-11.5%
Q3 2011-11.5%
Q2 2011+5.8%
Q1 2011+5.8%
Q2 2010+5.8%
Q4 2010+4.4%
Q1 2010-1.7%

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