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Enterprise Group Announces Results for the Fourth Quarter of 2021

·6 min read

St. Albert, Alberta--(Newsfile Corp. - February 8, 2022) - Enterprise Group, Inc. (TSX: E) (the "Company" or "Enterprise"), a consolidator of services to the energy sector that is focused primarily on specialized equipment rental, today released its Q4 2021 and FY 2021 unaudited results.

Increased capital spending in the energy industry combined with colder weather have resulted in higher activity levels and improved results for the quarter. "Our unaudited numbers show that Enterprise delivered a 48% revenue increase in Q4 and a 21% increase for FY21," stated Leonard Jaroszuk, President & CEO. "Our aggressive growth plans going forward will build on initiatives commenced in 2021 with significant development in the area of cost-effective solutions to markedly reduce greenhouse gases for our clients' projects, including our numerous Tier One customers, two of whom were recently announced."

Quarter 4:


(Unaudited) (1)
Three months December 31, 2021






Three months December 31, 2020






Increase / (Decrease)





Revenue

$

5,731,000




$

3,883,000




$

1,848,000



48%


Adjusted Gross margin(2)(3)

$

2,102,000



37%


$

1,453,000



37%


$

649,000



45%


Adjusted EBITDA(2)(3)

$

1,532,000



27%


$

1,010,000



26%


$

522,000



52%


Year end:


(Unaudited) (1)
Year ended
December 31, 2021






Year ended December 31, 2020






Increase / (Decrease)





Revenue

$

18,732,000




$

15,520,000




$

3,212,000



21%


Adjusted Gross margin(2)(3)

$

4,947,000



26%


$

3,778,000



24%


$

1,169,000



31%


Adjusted EBITDA(2)(3)

$

2,924,000



16%


$

2,085,000



13%


$

839,000



40%


(1) The Company's annual year end audit is currently underway; however, it has not yet been completed. The financial figures presented in this release are subject to audit verification and adjustments. The Company expects to release its audited consolidated financial statements no later than March 25, 2022.
(2) The Canadian Emergency Wage Subsidy and Rent Subsidy Programs ended in October 2021. To provide further comparability to pre-Covid operations, the Company has presented an Adjusted Gross Margin and Adjusted EBITDA to reflect the results of operations without any subsidy programs.
(3) Identified and defined under "Non-IFRS Measures".

  • The downturn in the energy industry, compounded by COVID-19, significantly reduced activity throughout Enterprise's business sector for the majority of 2021. Reduced activity from COVID-19 began at the end of the first quarter of 2020 and into the fourth quarter of 2021. Although COVID-19 protocols have allowed Enterprise's customers to return to work, activity levels have not yet returned to pre COVID-19 levels. Increased capital spending in the energy industry combined with colder weather have increased activity levels and improved results for Q4.

  • Revenue for the three months ended December 31, 2021 was $5,731,000 compared to $3,883,000 in the prior period, an increase of $1,848,000 or 48%. Adjusted gross margin for the three months ended December 31, 2021 was $2,102,000 compared to $1,453,000 in the prior period, an increase of $649,000 or 45%. Adjusted EBITDA for the three months ended December 31, 2021 was $1,532,000 compared to $1,010,000 in the prior period, an increase of $522,000 or 52%.

  • Revenue for the year ended December 31, 2021 was $18,732,000 compared to $15,520,000 in the prior year, an increase of $3,212,000 or 21%. Adjusted gross margin for the year ended December 31, 2021 was $4,947,000 compared to $3,778,000 in the prior year, an increase of $1,169,000 or 31%. Adjusted EBITDA for the year ended December 31, 2021 was $2,924,000 compared to $2,085,000 in the prior year, an increase of $839,000 or 40%.

  • During the three months ended December 31, 2021, the Company purchased and cancelled 627,500 shares at a cost of $191,000, reducing the share capital account by $893,000. For the year ended December 31, 2021, the Company purchased and cancelled 2,034,500 shares at a cost of $508,000, reducing the share capital account by $2,904,000. Since the initiation of the share buyback program, the Company has purchased and cancelled 8,094,000 shares at a cost of $2,388,000 and as a result, the Company's share capital account has been reduced by $11,464,000 over the entire share buyback program. Enterprise believes its stock remains undervalued and will continue to re-invest positive cash flow to buy-back shares to enhance shareholder value.

  • The Company has benefited from the Canadian Emergency Wage Subsidy and Rent Subsidy Programs ("CEWS" and "CERS") which ended in October 2021. To provide further comparability to pre-Covid operations, the Company has presented Adjusted Gross Margin and Adjusted EBITDA to reflect the results without any subsidy programs. Utilizing the CEWS and CERS programs, the Company recorded $28,000 ($334,000 - December 2020) against direct costs for the three months ended December 31, 2021, and $32,000 ($392,000 - December 2020) against Adjusted EBITDA for the three months ended December 31, 2021. Utilizing the CEWS and CERS programs, the Company recorded $1,649,000 ($1,417,000 - December 2020) against direct costs for the year ended December 31, 2021, and $1,909,000 ($1,619,000 - December 2020) against Adjusted EBITDA for the year ended December 31, 2021.

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:

Leonard Jaroszuk: President & CEO, or
Desmond O'Kell: Senior Vice-President
contact@enterprisegrp.ca
780-418-4400

Forward-Looking Information

This news release may contain certain forward-looking information, as defined under applicable Canadian securities legislation, that is not based on historical fact, including without limitation statements containing the words "believes," "anticipates," "plans," "intends," "will," "should," "expects," "continue," "estimate," "forecasts" and other similar expressions. In particular, this news release includes forward-looking information relating to the Facility and the Company's intention to pursue acquisition opportunities and to purchase shares pursuant to the normal course issuer bid. Actual results, events, or developments could be materially different from those expressed or implied by these forward-looking statements. There is no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in the Company's Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-IFRS Measures

The Company uses International Financial Reporting Standards ("IFRS"). Adjusted EBITDA and Adjusted Gross Margin are not measures that have any standardized meaning prescribed by IFRS and is therefore referred to as non-IFRS measures. This news release contains references to Adjusted EBITDA and Adjusted Gross Margin. These non-IFRS measures used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, Adjusted EBITDA and Adjusted Gross Margin are useful supplemental measures as they provide an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed, how the results are taxed, or how the results are impacted by temporary subsidies. Adjusted EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes, stock based compensation and subsidies. Adjusted Gross Margin is calculated as gross margin excluding subsidies.

Calculations are as follows:

Cdn. $

Three months December 31, 2021

Three months December 31, 2020

Year ended December 21, 2021

Year ended December 31, 2020

Gross margin

2,130,000

1,787,000

6,596,000

5,195,000

Less: CEWS/CERS subsidies

(28,000)

(334,000)

(1,649,000)

(1,417,000)

Adjusted gross margin

2,102,000

1,453,000

4,947,000

3,778,000

Adjusted EBITDA

1,564,000

1,402,000

4,833,000

3,704,000

Less: CEWS/CERS subsidies

(32,000)

(392,000)

(1,909,000)

(1,619,000)

Adjusted EBITDA

1,532,000

1,010,000

2,924,000

2,085,000

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/113070