ST. ALBERT, ALBERTA--(Marketwired - Nov 12, 2013) - Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX:E) is pleased to announce its financial results for the three month period ended September 30, 2013 (" the third quarter").
THIRD QUARTER HIGHLIGHTS
- Revenue of $10.0 million, an increase of $5.7 million when compared to prior year.
- EBITDAS of $3.9 million, an increase of $3.3 million when compared to prior year.
- Earnings per share of $0.05, an increase of $0.05 when compared to prior year.
- Successfully integrated Calgary Tunnelling & Horizontal Augering Ltd. ("CTHA"), which has been awarded over $10 million of projects of which $4.5 million were booked in the quarter.
- T.C. Backhoe & Directional Drilling ("TC") has been awarded $10.5 million of contracts of which $5.1 million were booked in the quarter.
- Announced intention to become a reporting issuer in the United States.
|SUMMARY FINANCIAL OVERVIEW|
In millions except for EPS
|For the three |
|For the nine |
|2013||2012||% chg||% of |
|2013||2012||% chg||% of |
|REVENUE||$ 10.0||$ 4.3||131%||$ 23.7||$ 11.9||100%|
|% change are representative of whole un-rounded numbers|
|(1) EBITDAS = Earnings Before Interest, Tax, Depreciation, Amortization and Stock Based Compensation|
Enterprise's third quarter results witnessed significant improvement in revenue, EBITDAS, net income, and EPS. This improvement was primarily due to the acquisition of CTHA at the conclusion of the second quarter, the acquisition of Artic Therm International Ltd. ("ATI") in September of 2012, as well as increased sales and marketing efforts.
The successful integration of CTHA served as a major point of focus for Enterprise throughout the third quarter. Since acquisition, CTHA's run rate is exceeding that of the prior year. CTHA has already been awarded over $10 million of projects of which $4.5 million were booked in the quarter. These projects included construction work, pipeline work and a contract with one of Canada's largest railways.
TC also continues to improve both its performance and outlook. Since the start of the quarter, TC has been awarded $10.5 million of contracts of which $5.1 million were booked in the quarter. These projects included approximately $4 million from subdivisions, $3.5 million from power distribution and $3 million from a contract awarded subsequent to the quarter with one of North America's largest pipeline and natural gas storage companies.
"Enterprise's strong third quarter results clearly illustrate the benefit of the major acquisitions we have completed since September of 2012," stated Leonard Jaroszuk, the Company's Chief Executive Officer. "CTHA, in particular, was a major factor in our significant improvement versus last year. CTHA's contribution reflects not only the strength of that business, but also the quality of both CTHA's management team and the management team at Enterprise. The combined efforts of these two groups led to a seamless integration of this new business. Our growth also reflects the success of our enhanced marketing efforts, our focus on monitoring our costs, and our ability to deliver best-in-class service to our construction sector partners. Further evidence of this ability is visible within the new contracts we have secured subsequent to the conclusion of the third quarter."
"I am very optimistic about Enterprise's prospects for further growth in 2014," Mr. Jaroszuk concluded. "We will continue to both diversify our revenue base and identify ways to enhance our profitability through niche infrastructure, construction, and rental markets. We will also continue to pursue unique, highly profitable, and accretive acquisition opportunities to expand Enterprise's business. The potential of these acquisition opportunities is highlighted by today's results."
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. Enterprise became a Western Canadian leader in flameless heat technology in September 2012 with its acquisition of Artic Therm International Ltd. and has now become a technological leader in underground infrastructure construction by the closing of Calgary Tunnelling & Horizontal Augering Ltd. June 14, 2013.
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.
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 and taxes.