Enterprise Group Announces Results for Second Quarter 2023

Rhea-AI Summary

Enterprise Group, Inc. announces Q2 2023 results with increases in revenue, gross margin, and EBITDA. The company generated cash flow from operations of $8,517,478, and continues to invest in natural gas power generation. Enterprise has also repurchased and cancelled shares, and plans to renew its share buyback program.

Positive

• Increases in revenue, gross margin, and EBITDA for Q2 2023
• Cash flow from operations of $8,517,478
• Investment in natural gas power generation
• Share repurchase and cancellation program

Negative

• None.

St. Albert, Alberta--(Newsfile Corp. - August 11, 2023) - 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 2023 results.

		Three months June 30, 2023					Three months June 30, 2022					Six months June 30, 2023					Six months June 30, 2022
Revenue	$	5,459,855				$	5,297,685				$	15,468,187				$	12,927,103
Gross margin	$	1,679,552		31%		$	1,610,188		30%		$	6,778,847		44%		$	5,131,973		40%
Adjusted EBITDA(1)	$	1,115,876		20%		$	1,015,978		19%		$	5,508,558		36%		$	4,045,803		31%
Net (loss) income and comprehensive (loss) income	$	(525,736)				$	(513,268				$	2,275,599				$	1,164,744
(Loss) income per share - Basic and Diluted	$	(0.01)				$	(0.01				$	0.05				$	0.02

 
(1) Identified and defined under "Non-IFRS Measures".
 

• The first six months of the year was one of the strongest in recent history. The second quarter of 2023 equalled the prior year results despite returning to its typical seasonal slowdown of spring breakup and road bans. In the previous year, instead of slowing down in Q2, the industry worked through and retooled in Q3 of 2022. The second quarter of 2023 also had the challenge of forest fires in Northern Alberta and British Columbia, which resulted in mandatory evacuation orders and workplace shutdowns, reducing activity in the affected areas and supressing the quarterly results. Revenue for the three months ended June 30, 2023, was $5,459,855 compared to $5,297,685 in the prior period, an increase of $162,170 or 3%. Gross margin for the three months ended June 30, 2023, was $1,679,552 compared to $1,610,188 in the prior period, an increase of $69,364 or 4%. Adjusted EBITDA for the three months ended June 30, 2023, was $1,115,876 compared to $1,015,978 in the prior period, an increase of $99,898 or 10%. Revenue for the six months ended June 30, 2023, was $15,468,187 compared to $12,927,103 in the prior period, an increase of $2,541,084 or 20%. Gross margin for the six months ended June 30, 2023, was $6,778,847 compared to $5,131,973 in the prior period, an increase of $1,646,874 or 32%. Adjusted EBITDA for the six months ended June 30, 2023, was $5,508,558 compared to $4,045,803 in the prior period, an increase of $1,462,755 or 36%. Increases in revenue, gross margin and EBITDA for the three and six months, are reflective of increases customer activity in 2023 while maintaining the operating efficiencies of the Company.

• For the six months ended June 30, 2023, the company generated cash flow from operations of $8,517,478 compared to $4,841,629 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 six months ended June 30, 2023, the Company purchased $6,945,205 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 six months ended June 30, 2023, the Company repurchased and cancelled 1,271,000 shares at a cost of $508,784, or $0.40 per share. These shares had a carrying value of $1.32 per share for a total of $1,162,830 which has been removed from the share capital account. Since the initiation of the share buyback program, the Company has purchased and cancelled 11,328,500 shares at a cost of $2,900,364 or $0.26 per share. These shares have a carrying value of $1.41 per share for a total of $15,960,766 which has been removed from the share capital account over the entire share buyback program. Enterprise has effectively bought back and cancelled the maximum amount of shares allowed under its current share buy back program. Management is in the process of renewing the program and will continue to be aggressive in acquiring its shares as they believe its stock remains undervalued as the Company's book value is $0.74 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.

• In April of 2022, Enterprise Group officially launched a new wholly owned subsidiary, Evolution Power Projects, Inc. 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 and 2023 was for additional natural gas-powered systems, including turbine generators. EPP can now provide multi-megawatt mobile micro-grid technology 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.

• 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/176850

FAQ

What are the Q2 2023 results of Enterprise Group, Inc.?

Enterprise Group, Inc. announced increases in revenue, gross margin, and EBITDA for Q2 2023.

How much cash flow from operations did the company generate in the first six months of 2023?

Enterprise Group, Inc. generated $8,517,478 in cash flow from operations in the first six months of 2023.

What is Enterprise Group, Inc. investing in to meet customer demands?

Enterprise Group, Inc. is investing in natural gas power generation to meet customer demands.

What has Enterprise Group, Inc. done with its shares?

Enterprise Group, Inc. has repurchased and cancelled shares, and plans to renew its share buyback program.