Enterprise Group (TSX: $E.TO) Provides Corporate Update
ST. ALBERT, Alberta - January 4, 2018 (Investorideas.com Newswire) Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX:E), a consolidator of services to the energy sector; focused primarily on infrastructure services and specialized equipment rental, today released its 2017 Corporate Update from CEO Leonard D. Jaroszuk.
Activity levels significantly increased over 2017
As the Company looks ahead to what is shaping up to be an exceptional 2018, it is important to note how we got here. Surveys have shown that serious investors look at management as a main measure of purchase decisions. Given Enterprise's corporate actions to deal with the resource downturn that began in 2014-15, management not only took decisive action, but built a company that is now leaner and stronger.
- Strict cost controls; including reduced work weeks and rotating schedules.
- Able to maintain service levels while improving margins.
- Vigilant to strategic sales, M&A, JV and other partnership opportunities
- Expand and diversify smaller client base to mitigate risk
- Company returned to profitability Q3/17
- Positive cash flow over the entire course of the downturn
- Debt reduction through the downturn from $54m at Dec 31st, 2014 to $22.6m at Sept 30th, 2017
Probably most impressive is that E shares, currently trading at $0.33 have a solid breakup of approximately $0.85 cents.
Further, as a result of the Company's improved financial metrics, our reduced debt, which management looks to reduce further, gives not only strength, but that most important corporate characteristics: Options. To grow, to acquire or to expand operations and influence in current markets and beyond.
It's Important to Have Exceptional Business partners.
Our savvy and experienced management team includes the highly dedicated folks at our subsidiary partners. Their input and expertise ensures Enterprise realizes its vision and remain key to our growth and consistent increase in shareholder value.
The social and economic benefits of infrastructure, whether it is soldering a tiny motherboard to a control panel or building a five-level traffic interchange in Tokyo should not be discounted by investors. Having grown the Company through the 2015-2017 resource downturn, in which we were unfairly painted with the ‘low oil price' brush, we are closing many substantial new contracts and corporate growth plans are aggressive and robust.
Management Actions Drive Numbers that Prove the Point
Investors' need look no further than E's recent Q3 numbers. In all of 2017, as with entire period since the downturn, Enterprise has been cashflow positive. In Q3 2017, the Company returned to profitability and is optimistic for 2018.
Enterprise is not the same Company that went into the 2015 resource downturn.
Through strategic plans including asset sales, ongoing cost cutting and judicious business decisions we are leaner, more pivotal and have added diversity to our client base. With all of these initiatives, the Company mitigates the risk of dealing with a limited number of large companies: And consistently adding to shareholder value.
The reality is that our business mix of providing specialized industrial rentals and infrastructure solutions and technologies gives Enterprise the flexibility to meet and more often than not exceed customers' requirements.
The fact that we also design and build specialty equipment for our clients—15 patents in place with more coming—means that we can be immediately responsive and relevant to address our private or Government customers' unique needs, whether resource-centric or straight public infrastructure.
We are always on the lookout for accretive assets that complement or expand our current businesses.
Bottom Line? Shares up 23% YTD 2017. Several Options Developing for 2018 Growth
- Revenue for the nine months ended September 30, 2017, of $26,989,358 increased by $6,592,419 or 32% compared to the prior period.
- YTD Margins increased to 29%
- YTD EBITDA increased to $4.5 million from $2.2 million for same period 2016
- Identified and defined under "Non-IFRS Measures".
- In July 2016, the Company closed a transaction to divest substantially all the assets of TCB. The net operations of TCB, including the prior period, are presented as a single amount in the consolidated statements of loss and comprehensive loss.
- In December 2016, the Company decided to cease all operations relating to single pass tunneling. The net operations of this line of business, including the prior period, are presented as a single amount in the consolidated statements of loss and comprehensive loss.
On a personal note (as well as our Management team), I would like to thank our shareholders for the support they have shown as we transition from what was a challenging period to what we believe is an extended period of exceptional growth potential.
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. 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
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.
The Company uses International Financial Reporting Standards ("IFRS"). EBITDAS 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 EBITDAS. 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, EBITDAS 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. EBITDAS is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.
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