Enservco grows sales but also losses, delayed second-quarter disclosure shows

LONGMONT — Enservco Corp. (NYSE American: ENSV), a Longmont-based provider of specialized well-site services to the oil and gas industry, saw double-digit year-over-year revenue growth in the second quarter, but its net losses more than doubled.

Sales were up 12% in the second quarter of 2022 at $3.5 million, up from $3.1 million during the same period last year, according to Enservco’s delayed first-quarter earnings report.

Enservco attributed its improved sales performance to “increased customer demand driven by higher commodity prices.”

The company’s second-quarter 2022 net loss was $3.9 million, compared with a loss of $1.4 million during the same period last year. 

The change was “primarily due to nonrecurring events, including professional fees related to restatement of financial statements and [U.S. Securities and Exchange Commission] filings, severance and stock-based compensation related to the [chief financial officer] transition,” Enservo said in its quarterly report. 

“We’re pleased to report another quarter of top-line growth as we continue to orient operations to align with industry conditions. Our bottom line in the second quarter was impacted by a number of nonrecurring events described above, but our year-to-date profit metrics still showed solid improvement year over year,” Enservco executive chairman Rich Murphy said in a prepared statement. “We are working now to close our third quarter in preparation for filing our Form 10-Q, at which time we will be fully current in our filings. Again, we appreciate the patience our shareholders have shown in recent months and are looking forward to moving ahead.”

In early 2022, the company decided to delay filing its quarterly disclosures with the U.S. Securities and Exchange Commission to restate financial statements on three quarterly reports for 2021 to adjust for its utilization of certain deferred tax liabilities in 2021.

Source: BizWest

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