November 9, 2023 – St. Albert, Alberta – Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) (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 Q3 2023 results.
| Three months
Sept 30, 2023 |
Three months
Sept 30, 2022 |
|
Nine months
Sept 30, 2023 |
Nine months
Sept 30, 2022 |
||||
| Revenue | $8,433,369 | $5,230,675 | $23,901,556 | $18,157,778 | ||||
| Gross margin | $3,878,931 | 46% | $1,590,082 | 30% | $10,657,777 | 45% | $6,722,053 | 37% |
| Adjusted EBITDA(1) | $3,402,589 | 40% | $862,807 | 16% | $8,911,144 | 37% | $4,908,611 | 27% |
| Net income (loss) and comprehensive income (loss) | $1,639,148 | $(677,679) | $3,914,744 | $487,067 | ||||
| Income (loss) per share – Basic and Diluted | $0.03 | $(0.01) | $0.08 | $0.01 |
- Identified and defined under “Non-IFRS Measures”.
- The first nine months of the year was one of the strongest in recent history despite a challenging second quarter. The second quarter of 2023 saw industry activity slow compared to the first quarter, due to spring breakup and seasonal road bans and the reduction of activity from forest fires in Northern Alberta and British Columbia. However, activity in the third quarter bounced back and continues to remain strong. Revenue for the three months ended September 30, 2023, was $8,433,369 compared to $5,230,675 in the prior period, an increase of $3,202,694 or 61%. Gross margin for the three months ended September 30, 2023, was $3,878,931 compared to $1,590,082 in the prior period, an increase of $2,288,849 or 144%. Adjusted EBITDA for the three months ended September 30, 2023, was $3,402,589 compared to $862,807 in the prior period, an increase of $2,539,782 or 294%. Revenue for the nine months ended September 30, 2023, was $23,901,556 compared to $18,157,778 in the prior period, an increase of $5,743,778 or 32%. Gross margin for the nine months ended September 30, 2023, was $10,657,777 compared to $6,722,053 in the prior period, an increase of $3,935,724 or 59%. Adjusted EBITDA for the nine months ended September 30, 2023, was $8,911,144 compared to $4,908,611 in the prior period, an increase of $4,002,539 or 82%. Increases in revenue, gross margin and EBITDA for the three and nine months, are reflective of increases customer activity in 2023 while maintaining the operating efficiencies of the Company.
- For the nine months ended September 30, 2023, the company generated cash flow from operations of $10,578,612 compared to $5,160,161 in the prior period. This change is consistent with the higher activity levels during the period. 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 nine months ended September 30, 2023, the Company acquired $12,136,602 of capital assets, primarily for natural gas power generation, upgrading the energy efficiency of existing equipment and meeting specific requests from customers. The Company continues to see its customers switching to natural gas as a cleaner and more efficient alternative to diesel, increasing the demand for natural gas generators and micro-grid packages.
- During the nine months ended September 30, 2023, the Company repurchased and cancelled 1,278,500 shares at a cost of $512,085, or $0.40 per share. These shares had a carrying value of $1.32 per share for a total of $1,169,393 which has been removed from the share capital account. Since the initiation of the share buyback program, the Company has purchased and cancelled 11,336,000 shares
at a cost of $2,903,646 or $0.26 per share. These shares have a carrying value of $1.41 per share for a total of $15,970,630 which has been removed from the share capital account over the entire share
buyback program. The Company renewed its bid on August 24, 2023, with a termination date of August 29, 2024, or such earlier time as the bid is completed or terminated at the option of the Company. Management will continue to be aggressive in acquiring its shares as they believe its stock remains undervalued as the Company’s book value is $0.77 per share. Additionally, the Company has available tax losses of $0.16 per share and is in the process of developing a consolidated tax plan to utilize those losses.
- On September 29, 2023, the Company made changes to its bank loan facility. The term has been extended for one additional year, now expiring on September 29, 2025. The interest rate changed to 10.5% and prepayment penalties have been removed. These changes give the Company greater flexibility on financing choices to meet increased activity and the demands of its customers.
- On January 23, 2023, the Company’s common shares began trading on the OTCQB Venture Market under the ticker symbol ETOLF. In addition to the listing, Enterprise’s shares are now eligible for electronic clearing and settlement with the Depository Trust Company for trading in the United States. This listing will help to increase Enterprise’s visibility and accessibility to a growing audience of U.S. investors.
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.
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.