Enterprise Group Announces Financial Results for Third Quarter 2024
Enterprise Group reported mixed Q3 2024 results, with quarterly revenue declining 24% to $6.8M compared to Q3 2023, while nine-month revenue increased 12% to $26.8M. Q3 saw reduced activity due to forest fire season preparations and extended employee time off. Despite Q3 challenges, nine-month performance showed strong growth with adjusted EBITDA up 21% to $10.8M. The company generated operating cash flow of $12.1M for the nine months. Enterprise invested $13.5M in capital assets, focusing on natural gas power generation equipment. A notable development includes a new five-year exclusivity agreement with FlexEnergy Solutions for turbine applications in Alberta and British Columbia.
Enterprise Group ha riportato risultati misti per il terzo trimestre del 2024, con un fatturato trimestrale in calo del 24%, attestandosi a 6,8 milioni di dollari rispetto al terzo trimestre del 2023, mentre il fatturato nei nove mesi è aumentato del 12%, raggiungendo i 26,8 milioni di dollari. Nel terzo trimestre si è registrata una diminuzione dell'attività a causa dei preparativi per la stagione degli incendi boschivi e delle prolungate assenze dal lavoro dei dipendenti. Nonostante le sfide del terzo trimestre, le performance dei nove mesi hanno mostrato una forte crescita con un EBITDA rettificato in aumento del 21%, arrivando a 10,8 milioni di dollari. La società ha generato un flusso di cassa operativo di 12,1 milioni di dollari nei nove mesi. Enterprise ha investito 13,5 milioni di dollari in beni strumentali, concentrandosi su apparecchiature per la generazione di energia a gas naturale. Un'importante novità è rappresentata da un nuovo accordo di esclusiva quinquennale con FlexEnergy Solutions per applicazioni turbine in Alberta e Columbia Britannica.
Enterprise Group reportó resultados mixtos en el tercer trimestre de 2024, con ingresos trimestrales que disminuyeron un 24% a 6,8 millones de dólares en comparación con el tercer trimestre de 2023, mientras que los ingresos en nueve meses aumentaron un 12% a 26,8 millones de dólares. En el tercer trimestre se observó una reducción de actividades debido a los preparativos para la temporada de incendios forestales y las extensas ausencias de los empleados. A pesar de los desafíos del tercer trimestre, el rendimiento en los nueve meses mostró un fuerte crecimiento con un EBITDA ajustado que aumentó un 21% a 10,8 millones de dólares. La empresa generó un flujo de efectivo operativo de 12,1 millones de dólares durante los nueve meses. Enterprise invirtió 13,5 millones de dólares en activos de capital, enfocándose en equipos de generación de energía a gas natural. Un desarrollo notable incluye un nuevo acuerdo de exclusividad de cinco años con FlexEnergy Solutions para aplicaciones de turbinas en Alberta y Columbia Británica.
Enterprise Group는 2024년 3분기 혼합 실적을 보고했습니다. 2023년 3분기와 비교해 분기 매출이 24% 감소한 680만 달러를 기록했으며, 9개월 매출은 12% 증가한 2,680만 달러에 달했습니다. 3분기에는 산불 시즌 준비와 직원의 장기 휴가로 인해 활동이 저조했습니다. 3분기의 도전에도 불구하고 9개월 성과는 조정된 EBITDA가 21% 증가한 1,080만 달러로 강한 성장을 보였습니다. 회사는 9개월 동안 1,210만 달러의 운영 현금 흐름을 창출했습니다. Enterprise는 1,350만 달러를 자본 자산에 투자하여 천연가스 발전 장비에 집중했습니다. 주목할 만한 개발로는 앨버타와 브리티시컬럼비아주에서 터빈 응용 프로그램을 위한 FlexEnergy Solutions와의 새로운 5년 독점 계약이 포함됩니다.
Enterprise Group a annoncé des résultats mixtes pour le troisième trimestre de 2024, avec un chiffre d'affaires trimestriel en baisse de 24%, s'élevant à 6,8 millions de dollars par rapport au troisième trimestre de 2023, tandis que le chiffre d'affaires sur neuf mois a augmenté de 12%, atteignant 26,8 millions de dollars. Le troisième trimestre a connu une baisse d'activité en raison des préparatifs pour la saison des incendies de forêt et des congés prolongés des employés. Malgré les défis du troisième trimestre, les performances sur neuf mois ont montré une forte croissance, avec un EBITDA ajusté en hausse de 21% à 10,8 millions de dollars. L'entreprise a généré un flux de trésorerie opérationnel de 12,1 millions de dollars sur les neuf mois. Enterprise a investi 13,5 millions de dollars dans des actifs en capital, en se concentrant sur les équipements de production d'énergie à gaz naturel. Un développement notable comprend un nouvel accord d'exclusivité de cinq ans avec FlexEnergy Solutions pour des applications de turbine en Alberta et en Colombie-Britannique.
Enterprise Group hat gemischte Ergebnisse für das dritte Quartal 2024 gemeldet, mit einem Rückgang des Quartalsumsatzes um 24% auf 6,8 Millionen Dollar im Vergleich zum dritten Quartal 2023, während der Umsatz über neun Monate um 12% auf 26,8 Millionen Dollar gestiegen ist. Im dritten Quartal gab es aufgrund der Vorbereitungen für die Brandbekämpfungssaison und verlängerten Mitarbeiterurlauben eine reduzierte Aktivität. Trotz der Herausforderungen im dritten Quartal zeigte die Neunmonatsbilanz ein starkes Wachstum, wobei das bereinigte EBITDA um 21% auf 10,8 Millionen Dollar stieg. Das Unternehmen generierte einen operativen Cashflow von 12,1 Millionen Dollar über die neun Monate. Enterprise investierte 13,5 Millionen Dollar in Sachanlagen und konzentrierte sich auf Geräte zur Erzeugung von Strom aus Erdgas. Eine bemerkenswerte Entwicklung umfasst einen neuen Fünfjahresexklusivvertrag mit FlexEnergy Solutions für Turbinenanwendungen in Alberta und British Columbia.
- Nine-month revenue increased 12% to $26.8M
- Nine-month adjusted EBITDA grew 21% to $10.8M
- Operating cash flow improved to $12.1M from $10.6M
- Secured five-year exclusivity agreement with FlexEnergy Solutions
- Gross margin improved to 47% for nine months vs 45% in prior year
- Q3 revenue decreased 24% to $6.8M year-over-year
- Q3 adjusted EBITDA declined 47% to $1.8M
- Q3 net loss of $197,592 compared to profit of $1.6M in prior year
- Significant capital expenditure of $13.5M affecting cash position
St. Albert, Alberta--(Newsfile Corp. - November 8, 2024) - Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) (the "Company" or "Enterprise"). Enterprise, a consolidator of energy services (including specialized equipment and services to the energy/resource sector), emphasizes technologies that mitigate, reduce, or eliminate CO2 and Green House Gas (GHG) and other harmful emissions for small local and Tier One resource clients, is pleased to announce its Q3 2024 results.
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The first nine months of the year the Company saw stronger results and higher activity levels than in 2023. However, the third quarter saw a reduction in activity, for the first half of the year for two primary reasons. First was apprehension and preparation for a potentially severe forest fire season, leading some customers to delay the execution of planned projects to the end of the forest fire season. The second reason was some customers took advantage of the summer months to allow employees extended time off to prepare employees for the up coming demands of another year of busy field activity. This shift underscores a broader industry commitment to sustainable work practices and the long-term well-being of the workforce, which naturally led to the reduction in activity compared to the first half of the year. Even though the third quarter saw reduced activity, activity levels are higher than in 2023 and contributed to the Company's strong year to date results which included growth in revenue and adjusted EBITDA of
12% and21% respectively. The increasing demand for natural gas power generation systems indicates a shift towards lower emission alternatives, and going forward, market conditions remain favourable for the energy sector, resulting in increased drilling, completion, and infrastructure projects. These factors are expected to continue for the remainder of 2024 and 2025.Revenue for the three months ended September 30, 2024, was
$6,801,309 compared to$8,433,369 in the prior period, a decrease of$1,632,060 or24% . Gross margin for the three months ended September 30, 2024, was$2,521,317 compared to$3,878,931 in the prior period, a decrease of$1,632,060 or35% . Adjusted EBITDA for the three months ended September 30, 2024, was$1,807,864 compared to$3,402,589 in the prior period, a decrease of$1,594,725 or47% . Revenue for the nine months ended September 30, 2024, was$26,834,878 compared to$23,901,556 in the prior period, an increase of$2,933,322 or12% . Gross margin for the nine months ended September 30, 2024, was$12,735,996 compared to$10,657,777 in the prior period, an increase of$2,078,219 or19% . Adjusted EBITDA for the nine months ended September 30, 2024, was$10,797,411 compared to$8,911,144 in the prior period, an increase of$1,886,267 or21% . 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 nine months ended September 30, 2024, the company generated cash flow from operations of
$12,102,914 compared to$10,570,610 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, debt and equity to right-size and modernize its equipment fleet to meet customer demands. During the nine months ended September 30, 2024, the Company acquired$13,452,761 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.On September 26, 2024, Enterprise announced a new five year exclusivity agreement with FlexEnergy Solutions, a globally recognized original equipment manufacturer of turbine and microturbine power generation equipment. The agreement positions Enterprise and it's wholly owned subsidiary Evolution Power Projects, Inc. as the sole provider of short-term turbine and microturbine applications across all commercial and industrial sectors in Alberta and British Columbia. The five-year agreement, underscores EPP's commitment to expanding its market presence and delivering state-of-the-art energy solutions in key Canadian markets. Under this agreement, EPP will exclusively supply cutting-edge, efficient turbine units for temporary power needs, reinforcing its leadership in the energy sector.
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.
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