ST. ALBERT, ALBERTA--(Marketwire - March 30, 2012) - Enterprise Oilfield Group, Inc. (TSX:E) is pleased to announce the Company's continued growth in profitability. The fourth quarter of 2011 improved upon the results of the third quarter and continued the Company's significant turnaround in the second half of the year. The Company recorded a consolidated net income of $886 thousand for the three months ended December 31, 2011. When combined with the previous quarter, the Company's net income for the six months ended December 31, 2011 was $1.6 million, which equated to a net income of $79 thousand for the year ended December 31, 2011. Both of the Company's divisions, the underground utility and infrastructure division and the energy services division saw revenue increases of 50.5% and 94.2% respectively, increases in gross profit of 53.3% and 144.4% respectively and increases in EBITDAS of 23.4% and 110.8% respectively over the same quarter in the prior year. Year over year the underground utility and infrastructure division saw revenue increase by 30.6% while revenue in the energy services division decreased by 19.5%. However, both divisions saw increases in gross profit of 10.4% and 215.2% respectively and increases in EBITDAS of 17.3% and 173.7% respectively.
The Company recorded consolidated revenue of $6.2 million for the three months ended December 31, 2011, compared to $4.0 million for the three months ended December 31, 2010, an increase of $2.2 million or 55.4%. The consolidated revenue for the year ended December 31, 2011, was $17.9 million compared to $15.6 million for the same period last year, an increase of $2.3 million. The Company made great strides forward in the second half of 2011, overcoming a late spring thaw, forest fires, mandatory evacuations and flooding in the Slave Lake area, followed by a very wet July across the province. Both the energy services division and the underground utilities and directional drilling division contributed to positive growth in spite of these conditions.
As a result, the Company increased its EBITDAS position with EBITDAS of $1.3 million and a net income of $0.9 million for the three months ended December 31, 2011, compared to EBITDAS of $0.2 million and a net loss of $3.6 million for the three months ended December 31, 2010, an improvement of $1.0 million, or 485.7%, on EBITDAS and an increase in the net income of $4.5 million, or 124.4%. EBITDAS for the year ended December 31, 2011, was $2.5 million and a net income of $79 thousand compared to negative EBITDAS of $0.8 million and a net loss of $5.6 million for the year ended December 31, 2010, an improvement of $3.3 million, or 401.2%, on EBITDAS and an improvement in the net income position of $5.6 million, or 101.4%.
Further to our news release dated February 24, 2011, during our yearend audit review, cut off issues were identified relating to a large project that straddled the year end. As a result of these issues, costs and revenues related to the project were reallocated in order to more accurately reflect the economic activity in 2011. As a result of these adjustments the net income in 2011 was lower than originally anticipated; however, the Company will see the benefit of those adjustments in the first quarter of 2012.
Enterprise Oilfield Group, Inc. is a construction services company operating in the energy, utility and transportation infrastructure industry. The Company's focus is primarily underground construction and maintenance and above ground plants and facilities. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human resources to support continued growth.
(1) EBITDAS = Earnings Before Income Tax, Depreciation, Amortization and Stock Based Compensation
Forward Looking Statements
This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
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