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Enterprise Group Announces Results for Fourth Quarter and Full Year 2022

St. Albert, Alberta--(Newsfile Corp. - March 20, 2023) - 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), is pleased to announce its Q4 2022 and FY2022 results.

OVERALL PERFORMANCE AND RESULTS OF OPERATIONS

Three months
Dec 31, 2022





Three months
Dec 31, 2021





Year ended
Dec 31, 2022





Year ended
Dec 31, 2021



Revenue

$

8,734,471




$

5,730,978




$

26,892,249




$

18,732,335



Gross margin

$

4,157,875


48%


$

2,120,460


37%


$

10,879,928


40%


$

6,631,818


35%

Adjusted gross margin(1)(2)

$

4,157,875


48%


$

2,091,874


37%


$

10,879,928


40%


$

4,982,731


27%

Adjusted EBITDA(1)(2)

$

3,283,612


37%


$

1,547,549


27%


$

8,149,223


30%


$

2,962,020


16%

Net income (loss) and comprehensive income (loss)

$

1,788,428




$

126,582




$

2,275,495




$

(2,375,818

)


Income (loss) per share – Basic and diluted

$

0.03




$

0.00




$

0.05




$

(0.05

)


 

(1) Identified and defined under "Non-IFRS Measures".
(2) 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 adjusted gross margin and adjusted EBITDA to reflect the results of operations without any subsidy programs.

  • The 2022 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. During the year, Enterprise secured additional supply and services agreements with three of its tier one clients which contributed to the improved operating results. Revenue for the year ended December 31, 2022, was $26,892,249 compared to $18,732,335 in the prior period, an increase of $8,159,914 or 44%. Adjusted gross margin for the year ended December 31, 2022, was $10,879,928 compared to $4,982,731 in the prior period, an increase of $5,897,197 or 118%. Adjusted EBITDA for the year ended December 31, 2022, was $8,147,223 compared to $2,959,020 in the prior period, an increase of $5,188,203 or 175%. Revenue for the three months ended December 31, 2022, was $8,734,471 compared to $5,730,978 in the prior period, an increase of $3,003,493 or 52%. Adjusted gross margin for the three months ended December 31, 2022, was $4,157,875 compared to $2,091,874 in the prior period, an increase of $2,066,001 or 99%. Adjusted EBITDA for the three months ended December 31, 2022, was $3,283,612 compared to adjusted EBITDA of $1,547,549 in the prior period, an increase of $1,736,063 or 112%. Increases in gross margin and EBITDA for the year and the quarter are reflective of increases customer activity in 2022 while maintaining the overall cost structure of the Company.

  • For the year ended December 31, 2022, the company generated cash flow from operations of $5,910,830 compared to $3,500,869 in the prior year. This change is consistent with the higher activity during the year. 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 year ended December 31, 2022, the Company purchased $5,569,011 of capital assets primarily for natural gas power generation, 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 $1,216,724 of which were re-invested in new equipment.

  • During year ended December 31, 2022, the Company purchased and cancelled 1,799,000 shares at a cost of $714,614, or $0.40 per share. These shares had a carrying value of $1.36 per share for a total of $2,445,077 which has been removed from the share capital account. Since the initiation of the share buyback program, the Company has purchased and cancelled 10,057,500 shares at a cost of $2,391,560 or $0.24 per share. These shares have a carrying value of $1.42 per share for a total of $14,289,151 which has been removed from the share capital account over the entire share buyback program. In addition to the share buyback program, during year ended December 31, 2022, management exercised 4,881,000 options resulting in net proceeds of $901,070 being reinvested into the Company, creating a management ownership position of 40%. Enterprise has renewed its normal course issuer bid through to August 29, 2023. The Company believes its stock remains undervalued as the Company's book value is $0.68 per share. In addition, the Company has available tax losses of $0.17 per share and is in the process of developing a consolidated tax plan to utilize those losses. Management will continue to be aggressive in acquiring its shares.

  • 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 innovative methods are delivering to its client's low emission natural gas-powered systems and micro-grid technology, allowing clients to eliminate diesel entirely. A significant portion of Enterprise's capital expenditures for 2022 was for additional natural gas-powered systems, including turbine generators. EPP can now provide mobile micro-grid technology in the 1-megawatt range which has allowed EPP to expand its services into water pumping and drilling support, further eliminating the use of diesel power. Also, 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.

  • In the prior year, the Company 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 December 31, 2022 (2021 - $28,586) against direct costs and $nil (2021 - $31,624) against EBITDA. Utilizing the CEWS and CERS programs, the Company recorded $nil for the year ended December 31, 2022 (2021 - $1,649,087), against direct costs and $nil (2021 - $1,908,866) against EBITDA.

  • After year end 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:

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

Forward-Looking Information

This news release may contain certain forward-looking information, as defined under applicable Canadian securities legislation, that is not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward-looking information relating to the Company's intention to purchase Shares pursuant to the normal course issuer bid, the number of Shares to be purchased, the timing of such purchases and the impact of such purchases on the value of the remaining Shares. Actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. There is no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in the Company's Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/158920