CDN NEWS | 
US NEWS 
FOR: ENTERPRISE GROUP, INC.
TSX SYMBOL: E
Date issue: May 12, 2017
Time in: 9:00 AM e
Attention:
ST. ALBERT, ALBERTA--(Marketwired - May 12, 2017) - Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX:E), a consolidator of services to the energy sector, focused primarily on construction services and specialized equipment rental, today released its Q1 2017 results.
/T/
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Three months ended Three months ended March 31, 2016 Consolidated: March 31, 2017 restated(2)(3) Change ---------------------------------------------------------------------------- Revenue $8,878,049 $8,852,177 $25,872 Gross margin $2,722,318 $2,900,611 ($178,293) Gross margin % 31% 33% (2%) EBITDA(1) $1,765,100 $2,021,285 ($256,185) Loss before tax ($66,628) ($1,529,425) $1,462,797 Net (loss) income ($50,627) ($1,426,622) $1,375,995 EPS $0.00 ($0.03) $0.03 ---------------------------------------------------------------------------- (1) Identified and defined under "Non-IFRS Measures". (2) In July 2016, the Company closed a transaction to divest substantially all the assets of TCB. The net operations of TCB, including the prior period, are presented as a single amount in the consolidated statements of loss and comprehensive loss. (3) In December 2016, the Company decided to cease all operations relating to single pass tunneling. The net operations of this line of business, including the prior period, are presented as a single amount in the consolidated statements of loss and comprehensive loss./T/
Revenue for the three months ended March 31, 2017 of $8,878,049 is relatively consistent with the prior period. Gross margin for the three months ended March 31, 2017 remained relatively consistent at 31% and EBITDA for the same period decreased by $256,185 to $1,765,100. Enterprise continues to take numerous measures to reduce the Company's cost structure. In fact, the Company has been able to maintain relatively stable gross margin percentage through cost reductions, while maintaining service levels and retaining customers.
Over the last 15 months, the Company has made significant improvements to its statement of financial position and has reduced overall total debt. At March 31, 2017, after adjusting for goodwill and deferred taxes, the Company's net asset value is approximately $51,000,000. Enterprise will continue to look for opportunities to improve its financial position and opportunities that will allow the Company to diversify, expand and increase shareholder value.
"Enterprise's management is extremely encouraged by our latest results. Improved customer sentiment during the first quarter of 2017 as well as effective cost management, will ensure the efficiencies gained over the last 2 years are maintained and will allow our Company to continue to grow as the industry recovers," stated Leonard D. Jaroszuk, CEO, President and Chairman.
While it has been an extremely challenging period for resource companies in Western Canada, Enterprise has demonstrated its confidence and ability to analogously 'weather the storm' strongly while many competitors and clients are either financially impaired or gone altogether.
Enterprise has turned in significant gross margin and EBITDA improvements evidenced in the fourth quarter of 2016 and the first quarter of 2017, which is the result of determined leadership. Management's continued efforts to streamline and maximize efficiencies are now firmly in place and delivering meaningful margin ratios while still navigating a challenging landscape.
The improvements to profits and the rapid return to significant cashflow should give investors' and shareholders confidence for the future. Certainly, all is still challenging in Western Canada, but today's results show a significant improvement in both business and the overall environment.
Enterprises' clients include some of Canada's largest energy producers, utility service providers and the federal and provincial governments of Canada. The Company employs management highly experienced in large infrastructure projects.
Given the noted limited visibility for 2017 activity and pricing levels, Enterprise will maintain a conservative approach towards Capital Spending while looking at fleet management and opportunistic asset dispositions. This approach will allow management to both maintain critical financial flexibility, allow for strategic, accretive acquisitions and continue to build compelling shareholder value.
About Enterprise Group, Inc.
Enterprise Group, Inc. is a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries. The Company's focus is primarily construction services and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management, and human resources to support continued growth. More information is available at the Company's website www.enterprisegrp.ca. Corporate filings can be found on www.sedar.com.
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"). EBITDAS
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 EBITDAS. 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, EBITDAS 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. EBITDAS is calculated as net income excluding
depreciation, amortization, interest, taxes and stock based compensation.
- END RELEASE - 12/05/2017
For further information:
Leonard Jaroszuk
President & CEO
780-418-4400
OR
Desmond O'Kell
Senior Vice-President
780-418-4400
contact@enterprisegrp.ca
COMPANY:
FOR: ENTERPRISE GROUP, INC.
TSX SYMBOL: E
INDUSTRY: Energy and Utilities - Oil and Gas
RELEASE ID: 20170512CC0034
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