May 13, 2022 – St. Albert, Alberta – Enterprise Group, Inc. (TSX: E) (the “Company” or “Enterprise”).  Enterprise, a consolidator of energy services (including specialized equipment rental to the energy/resource sector), emphasizing technologies that mitigate, reduce, or eliminate CO2 and Greenhouse Gas emissions for small to Tier One resource clients, is pleased to announce its Q1 2022 results.

 

 

Three months March 31, 2022

 

Three months

March 31, 2021

 
Revenue $7,629,418 $5,859,287  
Gross margin $3,521,822 46% $2,726,389 47%
Adjusted Gross margin(1)(2) $3,521,822 46% $1,925,873 33%
Adjusted EBITDA(1)(2) $3,029,861 40% $1,465,383 25%
Net income and comprehensive income $1,678,048 $93,639  
Income per share – Basic $0.04 $0.00  
Income per share – Diluted $0.03 $0.00  
  • Identified and defined under “Non-IFRS Measures”.
  • The Canadian Emergency Wage Subsidy and Rent Subsidy Programs ended in October 2021. Starting in Q4 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.

 

  • The first quarter has been one of the strongest quarters in recent years. Higher capital spending in the energy industry combined with colder weather have increased activity levels and improved results. Revenue for the three months ended March 31, 2022, was $7,629,418 compared to $5,859,287 in the prior period, an increase of $1,770,131 or 30%.  Adjusted gross margin for the three months ended March 31, 2022, was $3,521,822 compared to $1,925,873 in the prior period, an increase of $1,595,949 or 83%.  Adjusted EBITDA for the three months ended March 31, 2022, was $3,029,861 compared to $1,465,383 in the prior period, an increase of $1,564,478 or 107%.

 

  • During the three months ended March 31, 2022, the Company purchased and cancelled 487,500 shares at a cost of $157,484, or $0.32 per share. These shares had a carrying value of $1.42 per share for a total of $694,053 which has been removed from the share capital account. Since the initiation of the share buyback program, the Company has purchased and cancelled 8,746,000 shares at a cost of $1,676,946 or $0.21 per share.  These shares have a carrying value of $1.43 per share for a total of $12,537,128 which has been removed from the share capital account 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.

 

  • For the three months ended March 31, 2022, the company generated cash flow from operations of $2,679,056 compared to $1,389,501 in the three months ended March 31, 2021. This change is consistent with the higher activity at the end of the year and continuing into the first quarter of 2022. The Company continues to utilize a combination of cash flow and debt to right-size and modernize its equipment fleet to meet customer demands.  During the three months ended March 31, 2022, the Company purchased $1,783,794 of capital assets, primarily for natural gas power generation equipment, upgrading the energy efficiency of existing equipment and meeting specific requests from customers.  During this same period, the Company also sold equipment and received $410,304 of proceeds from those sales which were re-invested in new equipment.

 

  • In the prior year, 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 $nil for the three months ended March 31, 2022 (March 2021 – $800,516) against direct costs and $nil (March 2021 – $927,416) against Adjusted EBITDA for the three months ended March 31, 2021.

 

Outlook

Capital spending in the energy industry has been steadily improving.  Commodity prices have risen on strengthening fundamentals and oil and gas demand has been recovering, despite some continued effects of the COVID-19 pandemic and evolving regulatory risks.  Industry data on drilling and completion activity, high crude oil prices and significant increases to budgeted capital programs, all support improved activity.

 

Enterprise’s outlook for the remainder of 2022 is positive.  The Company anticipates its customers will continue to increase their drilling and completion activity as industry fundamentals continue to improve.  The Company also sees new opportunities for its natural gas power solutions as the energy industry continues its search for lower carbon emission alternatives.  Enterprise will continue to work with all its stakeholders, including customers, suppliers, and indigenous partners to provide effective solutions to help reduce carbon emissions.

 

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:

 

For questions or additional information, please contact:

Leonard Jaroszuk, President & CEO, or
Desmond O’Kell, Senior Vice-President
780-418-4400
contact@enterprisegrp.ca

 

Forward Looking Information

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company’s future performance. The use of any of the words “could”, “expect”, “believe”, “will”, “projected”, “estimated” 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 belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The Company’s Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

 

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