August 11, 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 Q2 2022 results.
|
Three months June 30, 2022 |
Three months June 30, 2021 |
Six months
June 30, 2022 |
Six months
June 30, 2021 |
|||||
| Revenue | $5,297,685 | $3,225,543 | $12,927,103 | $9,084,830 | ||||
| Gross margin | $1,610,188 | 30% | $580,312 | 18% | $5,131,973 | 40% | $3,306,699 | 36% |
| Adjusted gross margin(1)(2) | $1,610,188 | 30% | $120,950 | 4% | $5,131,973 | 40% | $2,046,821 | 23% |
| Adjusted EBITDA(1)(2) | $1,015,978 | 19% | $(394,835) | (12)% | $4,045,803 | 31% | $1,070,547 | 12% |
| Net (loss) income and comprehensive (loss) income | $(513,268) | $(1,626,547) | $1,164,744 | $(1,532,910) | ||||
| (Loss) income per share – Basic | $(0.01) | $(0.03) | $0.02 | $(0.03) | ||||
| (Loss) income per share – Diluted | $(0.01) | $(0.03) | $0.02 | $(0.03) |
- 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.
- In April of this year, Enterprise Group officially launched a new wholly owned subsidiary, Evolution Power Projects, Inc. (“EPP”). EPP is the leading provider of low emission, mobile power systems and associated surface infrastructure to the Energy, Resource, and Industrial sectors. The company’s highly innovative methods are delivering to its client’s low emission natural gas powered systems and micro-grid technology, allowing clients to eliminate diesel entirely. EPP’s systems are equipped to deliver real-time emission metrics providing its clients the assurances necessary for them to accomplish their ESG reporting and objectives.
- The first six months of the year has been one of the strongest in recent history. Higher capital spending in the energy industry combined with increased customer activity levels in has resulted in improved results. Revenue for the three months ended June 30, 2022, was $5,297,685 compared to $3,225,543 in the prior period, an increase of $2,072,142 or 64%. Adjusted gross margin for the three months ended June 30, 2022, was $1,610,188 compared to $120,950 in the prior period, an increase of $1,489,238 or 1,231%. Adjusted EBITDA for the three months ended June 30, 2022, was $1,015,978 compared to negative adjusted EBITDA of $394,835 in the prior period, an increase of $1,410,813 or 357%. Revenue for the six months ended June 30, 2022, was $12,927,103 compared to $9,084,830 in the prior period, an increase of $3,842,273 or 42%. Adjusted gross margin for the six months ended June 30, 2022, was $5,131,973 compared to $2,046,821 in the prior period, an increase of $3,085,152 or 151%. Adjusted EBITDA for the six months ended June 30, 2022, was $4,045,803 compared to $1,070,547 in the prior period, an increase of $2,975,256 or 278%.
…continued
– 2 –
- During the six months ended June 30, 2022, the Company purchased and cancelled 670,000 shares at a cost of $224,510, or $0.335 per share. These shares had a carrying value of $1.42 per share for a total of $953,762 which has been removed from the share capital account. Since the initiation of the share buyback program, the Company has purchased and cancelled 8,928,500 shares at a cost of $1,901,456 or $0.21 per share. These shares have a carrying value of $1.43 per share for a total of $12,796,837 which has been removed from the share capital account over the entire share buyback program. Enterprise believes its stock remains undervalued as the Company’s book value is $0.70 per share. As such, Enterprise will continue to re-invest positive cash flow to buy back shares to enhance shareholder value.
- For the six months ended June 30, 2022, the company generated cash flow from operations of $4,841,629 compared to $3,448,620 for the same period in the prior year. This change is consistent with the higher activity at the end of the year and continuing into the first six months 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 six months ended June 30, 2022, the Company purchased $2,639,350 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 property, plant and equipment and received proceeds of $1,039,259 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 June 30, 2022 (June 2021 – $459,362) against direct costs and $nil (June 2021 – $531,927) against adjusted EBITDA. Utilizing the CEWS and CERS programs, the Company recorded $nil for the six months ended June 30, 2022 (June 2021 – $1,259,878) against direct costs and $nil (June 2021 – $1,459,343) against adjusted EBITDA.
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
…continued
– 3 –
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.
Non-IFRS Measures
The Company uses International Financial Reporting Standards (“IFRS”). EBITDA is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-IFRS measure. This news release contains references to EBITDA. This non-IFRS measure used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s principal business activities prior to consideration of how those activities are financed or how the results are taxed. EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.