August 8, 2024 – 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 Q2 2024 results.
• During the half of the year, the Company was able to build upon the momentum from 2023.
Market conditions were favourable for the energy sector, resulting in additional drilling, completion,
and infrastructure projects. Also, the increasing demand for natural gas power generation systems
indicates a shift towards lower emission alternatives. Overall, these factors contributed to the
Company’s strong results in the first half of 2024. Revenue for the three months ended June 30, 2024,
was $7,707,282 compared to $5,549,855 in the prior period, an increase of $2,157,427 or 41%. Gross
margin for the three months ended June 30, 2024, was $3,318,336 compared to $1,679,552 in the prior
period, an increase of $1,638,784 or 98%. Adjusted EBITDA for the three months ended June 30, 2024,
was $2,651,694 compared to $1,115,876 in the prior period, an increase of $1,535,818 or 138%. Revenue
for the six months ended June 30, 2024, was $20,033,570 compared to $15,468,187 in the prior period,
an increase of $4,565,383 or 30%. Gross margin for the six months ended June 30, 2024, was
$10,214,681 compared to $6,778,847 in the prior period, an increase of $3,465,834 or 51%. Adjusted
EBITDA for the six months ended June 30, 2024, was $8,989,547 compared to $5,508,558 in the prior
period, an increase of $3,480,989 or 63%. Increases in revenue, gross margin and EBITDA for the year,
are reflective of increased customer activity in 2024 while maintaining the operating efficiencies of the
Company.
• For the six months ended June 30, 2024, the company generated cash flow from operations of
$10,635,184 compared to $8,517,478 in the prior year. This change is consistent with the higher activity
levels during the year and the growing demand for the natural gas power generation. 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, 2024, the Company acquired
$9,685,061 of capital assets, primarily for natural gas power generation equipment and facilities,
upgrading 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. Also, the Company
purchased land to expand operations and is in the process of constructing a new facility in Fort St. John,
BC. The total cost of the project is an estimated $5 million, and the construction work commenced in
February 2024. The Company is in the process of obtaining a mortgage on the building. The facility is
estimated to be completed by the end of 2024.
NEWS RELEASE- 2 –
• On March 12, 2024, the Company closed a brokered private placement of 8,234,350 units issued
at a price of $0.85 per unit for aggregate gross proceeds of $6,999,197. Each unit consists of one
common share and one-half common share purchase warrant. Each warrant is exercisable to acquire
an additional common share at an exercise price of $0.95 per share for a period of 24 months. The
exercise of all warrants will provide the company an additional $4,585,000. This private placement
underscores the Company’s commitment to efficiently manage capital while continuing to grow and
meet customer demands. As of June 30, 2024, 1,014,425 warrants were exercised at $0.95 per warrant,
providing $963,704 in cash proceeds.
• During the six months ended June 30, 2024, the Company did not repurchase or cancel shares.
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. The Company has available tax losses of $0.12 per share and has developed a consolidated
tax plan to utilize those losses against operating income.
Enterprise Group is pleased to announce that Desmond O’Kell, previously the Senior Vice President and
Director, will now serve as the President and Director of the Company. Leonard D. Jaroszuk will continue
in his roles as Chairman of the Board and Chief Executive Officer.
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.sedarplus.com.
For questions or additional information, please contact:
Leonard Jaroszuk, CEO, or
Desmond O’Kell, 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.