Mr. Leonard Jaroszuk reports

ENTERPRISE GROUP ANNOUNCES RESULTS FOR SECOND QUARTER 2022

Enterprise Group Inc. has released its Q2 2022 results.

• In April of this year, Enterprise Group officially launched a new wholly owned subsidiary, Evolution Power Projects Inc. (EPP). EPP is the leading provider of low-emission, mobile power systems and associated surface infrastructure to the energy, resource and industrial sectors. The company's highly innovative methods are delivering to its client's low-emission natural gas powered systems and microgrid technology, allowing clients to eliminate diesel entirely. EPP's systems are equipped to deliver real-time emission metrics providing its clients the assurances necessary for them to accomplish their ESG (environmental, social and governance) reporting and objectives.
• The first six months of the year has been one of the strongest in recent history. Higher capital spending in the energy industry combined with increased customer activity levels in has resulted in improved results. Revenue for the three months ended June 30, 2022, was $5,297,685 compared with $3,225,543 in the prior period, an increase of $2,072,142 or 64 per cent. Adjusted gross margin for the three months ended June 30, 2022, was $1,610,188 compared with $120,950 in the prior period, an increase of $1,489,238 or 1,231 per cent. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended June 30, 2022, was $1,015,978 compared with negative adjusted EBITDA of $394,835 in the prior period, an increase of $1,410,813 or 357 per cent. Revenue for the six months ended June 30, 2022, was $12,927,103 compared with $9,084,830 in the prior period, an increase of $3,842,273 or 42 per cent. Adjusted gross margin for the six months ended June 30, 2022, was $5,131,973 compared with $2,046,821 in the prior period, an increase of $3,085,152 or 151 per cent. Adjusted EBITDA for the six months ended June 30, 2022, was $4,045,803 compared with $1,070,547 in the prior period, an increase of $2,975,256 or 278 per cent.
• During the six months ended June 30, 2022, the company purchased and cancelled 670,000 shares at a cost of $224,510, or 33.5 cents per share. These shares had a carrying value of $1.42 per share for a total of $953,762 which has been removed from the share capital account. Since the initiation of the share buyback program, the company has purchased and cancelled 8,928,500 shares at a cost of $1,901,456 or 21 cents per share. These shares have a carrying value of $1.43 per share for a total of $12,796,837 which has been removed from the share capital account over the entire share buyback program. Enterprise believes its stock remains undervalued as the company's book value is 70 cents per share. As such, Enterprise will continue to reinvest positive cash flow to buy back shares to enhance shareholder value.
• For the six months ended June 30, 2022, the company generated cash flow from operations of $4,841,629 compared with $3,448,620 for the same period in the prior year. This change is consistent with the higher activity at the end of the year and continuing into the first six months of 2022. The company continues to utilize a combination of cash flow and debt to right-size and modernize its equipment fleet to meet customer demands. During the six months ended June 30, 2022, the company purchased $2,639,350 of capital assets, primarily for natural gas power generation equipment, upgrading the energy efficiency of existing equipment and meeting specific requests from customers. During this same period, the company also sold property, plant and equipment, and received proceeds of $1,039,259 which were reinvested in new equipment.
• In the prior year, 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 nil for the three months ended June 30, 2022 (June, 2021 -- $459,362), against direct costs and nil (June, 2021 -- $531,927) against adjusted EBITDA. Utilizing the CEWS and CERS programs, the company recorded nil for the six months ended June 30, 2022 (June, 2021 -- $1,259,878), against direct costs and nil (June, 2021 -- $1,459,343) against adjusted EBITDA.

About Enterprise Group Inc.

Enterprise Group 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 (carbon dioxide) and greenhouse gas emissions for itself and its clients. The company is well known to local Tier 1 and international resource companies with operations in Western Canada.

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