CALGARY, AB, May 18, 2021 /CNW/ - ESI Energy Services Inc. (CSE: OPI) ("ESI" or the "Company") announces its 2021 first quarter financial results.

Robert Dunstan, ESI's President and CEO, announces higher levels of revenue, EBITDA, funds flow from operations and long-term debt as well as lower net loss and working capital, for the three-month period ended March 31, 2021 compared with the same period in 2020.

Highlights

Q1 2021 Highlights

Revenue for the three-month period ended March 31, 2021 increased by 18 percent to $2,367,000 compared to $1,999,000 during the same period in 2020. Most of this revenue was generated by large and small padding machine rentals, which was primarily generated in the United States. Activity levels for padding machines in Canada continued to improve during the first quarter of 2021.

Almost 74 percent of the revenue generated during the first quarter of 2021 came from large and small padding machine rentals, 49 percent of which was from the large padders and 51 percent from the small padders. Activity levels for large padding machines were up from 9 padding months during the first quarter of 2020 to 14 padding months during the first quarter of 2021, an increase of 56 percent. Activity levels for small padders were up by 7 percent to 29 padding months during the first quarter of 2021, from 27 padding months during the same period in 2020. Virtually all the revenue from small padding machines was generated from renewables (wind and solar) construction as well as approximately 30 percent of the revenue from the large padders. OPP-200 padding machines are used for both pipeline and renewables construction, whereas OPP-300 machines are used exclusively for large diameter pipeline construction.

Gross margin for the three months ended March 31, 2021 increased by 77 percent compared to the same period in 2020. This increase was primarily due to an 18 percent increase in revenue during the period, most of which was due to an increase in large padding machine revenue in the United States.

The Company generated a net loss of $1,118,000 during the three-month period ended March 31, 2021 compared with a net loss of $11,588,000 during the same period in 2020. The higher net loss in 2020 was due to a $10,757,000 impairment charge on intangible assets. Adjusted net loss increased by $287,000 in 2021 which was primarily due to foreign exchange losses.

EBITDA during the first quarter of 2021 was ($41,000) compared to ($374,000) during the same period in 2020, an improvement of 89 percent or $333,000, primarily due to higher revenue.

Funds flow from operations for the first quarter of 2021 was a deficit of $71,000 compared to a deficit of $339,000 during the same period in 2020, an improvement of 79 percent.

Working capital at March 31, 2021 was $9,085,000 compared to $9,922,000 at December 31, 2020, a decrease of $837,000.

Long-term portion of the long-term debt decreased by $255,000 to $6,676,000 at March 31, 2021 compared to $6,931,000 at December 31, 2020.

About ESI

ESI is a publicly traded company listed on the Canadian Securities Exchange under the stock symbol "OPI". ESI is a pipeline and renewables equipment rental and sales company with principal operations in Leduc, Alberta and Phoenix, Arizona. The Company, together with its operating subsidiaries, ESI Pipeline Services, Inc. ("ESIPI") and ESI Energy Services (Australia) Pty Ltd., supplies (rents and sells) backfill separation machines ("Padding Machines") to mainline pipeline contractors, renewables and utility construction contractors, as well as oilfield pipeline and construction contractors.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance. The use of the word "will", and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current beliefs or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Due to the risks, uncertainties and assumptions inherent in forward-looking information, investors should not place undue reliance on forward- looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

SOURCE ESI Energy Services Inc.

© Canada Newswire, source Canada Newswire English