Friday, June 18, 2021
Energy Services of America (ESOA)
PPP Loan Forgiveness Announced
Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
PPP Loan of $9.8 million officially forgiven. In an 8-K filing after the market closed yesterday, the company disclosed that the Small Business Administration (SBA) had paid $9.8 million to its lender on June 16th. The SBA payment satisfies the requirements of the Payroll Protection Program (PPP) loan taken out in FY2020 and the PPP loan of $9.8 million has been fully forgiven. Importantly, the PPP loan helped maintain employment and dampen any potential financial impact during a very uncertain time.
No impact on FY2021 EBITDA estimate. The forgiven PPP loan is expected to be recognized as other income and there should be no tax implications. While final accounting treatment has yet to be determined and the cash impact was a FY2020 event, we believe that net income and shareholder equity should be positively impacted by $9.8 million. We are updating our financial forecasts, but will adjust them …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.