Enservco Updates Stockholders on Preliminary First Quarter Financial Results
DENVER, April 16, 2020 (GLOBE NEWSWIRE) -- 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).