February 7, 2022 – St. Albert, Alberta – Enterprise Group, Inc. (TSX: E) (the “Company” or “Enterprise”), a consolidator of services to the energy sector that is focused primarily on specialized equipment rental, today released its Q4 2021 and FY 2021 unaudited results.

Increased capital spending in the energy industry combined with colder weather have resulted in higher activity levels and improved results for the quarter. “Our unaudited numbers show that Enterprise delivered a 48% revenue increase in Q4 and a 21% increase for FY21,” stated Leonard Jaroszuk, President & CEO. “Our aggressive growth plans going forward will build on initiatives commenced in 2021 with significant development in the area of cost-effective solutions to markedly reduce greenhouse gases for our clients’ projects, including our numerous Tier One customers, two of whom were recently announced.”

 

 

Quarter 4:

(Unaudited) (1)

Three months December 31, 2021

   

Three months December 31, 2020

   

 

Increase / (Decrease)

 

 

 

Revenue $5,731,000   $3,883,000   $1,848,000 48%
Adjusted Gross margin(2)(3) $2,102,000 37% $1,453,000 37% $649,000 45%
Adjusted EBITDA(2)(3) $1,532,000 27% $1,010,000 26% $522,000 52%

 

 

Year end:

(Unaudited) (1)

Year ended

December 31, 2021

   

Year ended December 31, 2020

   

 

Increase / (Decrease)

 

 

 

Revenue $18,732,000   $15,520,000   $3,212,000 21%
Adjusted Gross margin(2)(3) $4,947,000 26% $3,778,000 24% $1,169,000 31%
Adjusted EBITDA(2)(3) $2,924,000 16% $2,085,000 13% $839,000 40%

 

  • The Company’s annual year end audit is currently underway; however, it has not yet been completed. The financial figures presented in this release are subject to audit verification and adjustments.  The Company expects to release its audited consolidated financial statements no later than March 25, 2022.
  • The Canadian Emergency Wage Subsidy and Rent Subsidy Programs ended in October 2021. To provide further comparability to pre-Covid operations, the Company has presented an Adjusted Gross Margin and Adjusted EBITDA to reflect the results of operations without any subsidy programs.
  • Identified and defined under “Non-IFRS Measures”.

 

  • The downturn in the energy industry, compounded by COVID-19, significantly reduced activity throughout Enterprise’s business sector for the majority of 2021. Reduced activity from COVID-19 began at the end of the first quarter of 2020 and into the fourth quarter of 2021.  Although COVID-19 protocols have allowed Enterprise’s customers to return to work, activity levels have not yet returned to pre COVID-19 levels.  Increased capital spending in the energy industry combined with colder weather have increased activity levels and improved results for Q4.

 

  • Revenue for the three months ended December 31, 2021 was $5,731,000 compared to $3,883,000 in the prior period, an increase of $1,848,000 or 48%. Adjusted gross margin for the three months ended December 31, 2021 was $2,102,000 compared to $1,453,000 in the prior period, an increase of $649,000 or 45%.  Adjusted EBITDA for the three months ended December 31, 2021 was $1,532,000 compared to $1,010,000 in the prior period, an increase of $522,000 or 52%.

 

…Continued

–  Page 2  –

 

 

  • Revenue for the year ended December 31, 2021 was $18,732,000 compared to $15,520,000 in the prior year, an increase of $3,212,000 or 21%. Adjusted gross margin for the year ended December 31, 2021 was $4,947,000 compared to $3,778,000 in the prior year, an increase of $1,169,000 or 31%.  Adjusted EBITDA for the year ended December 31, 2021 was $2,924,000 compared to $2,085,000 in the prior year, an increase of $839,000 or 40%.

 

  • During the three months ended December 31, 2021, the Company purchased and cancelled 627,500 shares at a cost of $191,000, reducing the share capital account by $893,000. For the year ended December 31, 2021, the Company purchased and cancelled 2,034,500 shares at a cost of $508,000, reducing the share capital account by $2,904,000.  Since the initiation of the share buyback program, the Company has purchased and cancelled 8,094,000 shares at a cost of $2,388,000 and as a result, the Company’s share capital account has been reduced by $11,464,000 over the entire share buyback program.  Enterprise believes its stock remains undervalued and will continue to re-invest positive cash flow to buy-back shares to enhance shareholder value.

 

  • The Company has benefited from the Canadian Emergency Wage Subsidy and Rent Subsidy Programs (“CEWS” and “CERS”) which ended in October 2021. To provide further comparability to pre-Covid operations, the Company has presented Adjusted Gross Margin and Adjusted EBITDA to reflect the results without any subsidy programs.  Utilizing the CEWS and CERS programs, the Company recorded $28,000 ($334,000 – December 2020) against direct costs for the three months ended December 31, 2021, and $32,000 ($392,000 – December 2020) against Adjusted EBITDA for the three months ended December 31, 2021.  Utilizing the CEWS and CERS programs, the Company recorded $1,649,000 ($1,417,000 – December 2020) against direct costs for the year ended December 31, 2021, and $1,909,000 ($1,619,000 – December 2020) against Adjusted EBITDA for the year ended December 31, 2021.

 

About Enterprise Group, Inc.

 

Enterprise Group, Inc is a consolidator of services-including specialized equipment rental to the energy/resource sector. The Company works with particular emphasis on systems and technologies that mitigate reduce or eliminate CO2 and Greenhouse Gas emissions for itself and its clients. The Company is well known to local Tier One and international resource companies with operations in Western Canada. More information is available at the Company’s website www.enterprisegrp.ca. Corporate filings can be found on www. sedar.com. For questions or additional information, please contact:

Leonard Jaroszuk: President & CEO, or

Desmond O’Kell: Senior Vice-President

contact@enterprisegrp.ca

780-418-4400

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