ST. ALBERT, ALBERTA--(Marketwire - May 14, 2012) - Enterprise Oilfield Group, Inc. (TSX:E) is pleased to announce the Company's first quarter results for the period ended March 31, 2012. The first quarter of 2012, was the third consecutive quarter of profitability for Enterprise. The Company recorded a consolidated net income of $169 thousand for the three months ended March 31, 2012, compared to a net loss of $386 thousand over the same period last year, an increase of $555 thousand or 144%. Consolidated revenue decreased by 14% to $3.6 million compared to $4.2 million in the same quarter last year, however consolidated gross profit grew to $1.2 million, an increase of $226 thousand or 23% over the same period in the prior year. Consolidated EBITDAS also increased for the quarter, growing to $595 thousand, an increase of $293 thousand or 97% over last year.
The underground utility and infrastructure division's revenue for the three months ended March 31, 2012, was $3.0 million, compared to $3.5 million in the prior year, a decrease of 16%. However, gross profit grew to $1 million, an increase of 11% and EBITDAS for this division grew to $893 thousand from $742 thousand, an increase of 20% from the prior year. The decrease in revenue for this division is largely due to the mild winter leading up to the end of 2011. The mild conditions allowed for a number of projects to be completed sooner and more efficiently. As a result, the amount of work carried over into the new year was slightly less than anticipated. However, the mild conditions in the first part of 2012, contributed to greater margins and increased EBITDAS compared to the same period last year. The Company anticipates this division will operate at or near full capacity for the remainder of 2012 and into 2013.
The energy services/rental division's revenue was $643 thousand compared to $691 thousand in the prior year, a decreased by 7%. However, similar to the Company's other division, this division also grew its gross profit to $224 thousand, an increase of 134% and grew EBITDAS to $81 thousand, an increase of 567% over the same period last year. Although revenue remained relatively flat for this division, margins and gross profit increased. This is primarily the direct result of the launch of the Company's rental division; E One Limited. This division began to contribute significantly to the organization in the second half of the quarter, increasing the Company's margins and EBITDAS. Management expects the growth in this division to continue throughout the year. Additionally, the Company is continuing its strategy of focusing on smaller cost plus projects in the oilfield services industry which also result in higher margins for the Company.
Along with Company's continued profitability, Enterprise continued to improve its statement of financial position, by paying down over $256 thousand of existing debt and entering into new financing facilities that better serve the needs of the Company.
The Company continues to monitor its overheads and reduce costs where necessary while maintaining the effectiveness of the operations. Equipment costs, operational costs and G&A costs are continually under review. For the quarter ended March 31, 2012, general and administration costs, including depreciation and amortization decreased by $389 thousand compared to the same period in 2011.
(1) EBITDAS = Earnings Before Income Tax, Depreciation, Amortization and Stock Based Compensation
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.
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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