Enterprise Group, Inc. Announces Strong Third Quarter Results
November 12 2013 - 8:00AM
Marketwired Canada
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.
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SUMMARY FINANCIAL OVERVIEW
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In millions For the three For the nine
except for months ended months ended
EPS SEPTEMBER 30 SEPTEMBER 30
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% of % of
2013 2012 % chg Revenue 2013 2012 % chg Revenue
------------------------------------========------------------------========
REVENUE $ 10.0 $ 4.3 131% $ 23.7 $ 11.9 100%
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EBITDAS(1) 3.9 0.6 516% 39% 7.8 2.0 283% 33%
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NET INCOME 3.9 0.07 5,512% 39% 5.6 0.6 750% 23%
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EPS 0.05 0.00 - 0.08 0.01
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% change are representative of whole
un-rounded numbers
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(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.
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"). 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Enterprise Group, Inc.
Leonard D. Jaroszuk
President & CEO
780-418-4400
Enterprise Group, Inc.
Desmond O'Kell
Vice President
780-418-4400
contact@EnterpriseGRP.ca
www.EnterpriseGRP.ca
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