Mr. Leonard Jaroszuk reports
ENTERPRISE GROUP ANNOUNCES RESULTS FOR FIRST QUARTER 2023
Enterprise Group Inc. has released its Q1 2023 results.
- The strength of 2022 has carried into the first quarter of 2023. Higher capital spending in the energy industry combined with increased customer activity levels in has resulted in improved results. The supply and services agreements signed in the previous year with three of the Company's tier one clients along with an increasing customer base, continued to contribute to the improved operating results. Revenue for the three months ended March 31, 2023, was $10,008,332 compared to $7,629,418 in the prior period, an increase of $2,378,914 or 31%. Gross margin for the three months ended March 31, 2023, was $5,099,298 compared to $3,521,785 in the prior period, an increase of $1,577,476 or 45%. Adjusted EBITDA for the three months ended March 31, 2023, was $4,392,685 compared to $3,029,861 in the prior period, an increase of $1,362,824 or 45%. Increases in revenue, gross margin and EBITDA for the quarter are reflective of increases customer activity in 2023 while maintaining the operating efficiencies of the Company.
- For the three months ended March 31, 2023, the company generated cash flow from operations of $4,965,708 compared to $2,679,056 in the prior period. This change is consistent with the higher activity levels during the quarter. 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 three months ended March 31, 2023, the Company purchased $2,616,545 of capital assets, primarily for natural gas power generation, upgrading the energy efficiency of existing equipment and meeting specific requests from customers. The Company continues to see its customers switching to natural gas as a cleaner and more efficient alternative to diesel, increasing the demand for natural gas generators and micro-grid packages. During the three months ended March 31, 2023, the Company repurchased and cancelled 694,000 shares at a cost of $266,215, or $0.38 per share. These shares had a carrying value of $1.32 per share for a total of $912,746 which has been removed from the share capital account. Since the initiation of the share buyback program, the Company has purchased and cancelled 10,751,500 shares at a cost of $2,657,775 or $0.25 per share. These shares have a carrying value of $1.41 per share for a total of $15,201,897 which has been removed from the share capital account over the entire share buyback program. Enterprise has renewed its normal course issuer bid through to August 29, 2023. The Company believes its stock remains undervalued as the Company's book value is $0.75 per share. In addition, the Company has available tax losses of $0.16 per share and is in the process of developing a consolidated tax plan to utilize those losses. Management will continue to be aggressive in acquiring its shares.
- In April of 2022, Enterprise Group officially launched a new wholly owned subsidiary, Evolution Power Projects, Inc. 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 innovative methods are delivering to its client's low emission natural gas-powered systems and micro-grid technology, allowing clients to eliminate diesel entirely. A significant portion of Enterprise's capital expenditures for 2022 and in the first quarter of 2023 was for additional natural gas-powered systems, including turbine generators. EPP can now provide mobile micro-grid technology in the 1-megawatt range which has allowed EPP to expand its services into water pumping and drilling support, further eliminating the use of diesel power. Also, EPP's systems are equipped to deliver real-time emission metrics providing its clients the assurances necessary for them to accomplish their ESG reporting and objectives.
- On January 23, 2023, the Company's common shares began trading on the OTCQB Venture Market under the ticker symbol ETOLF. In addition to the listing, Enterprise's shares are now eligible for electronic clearing and settlement with the Depository Trust Company for trading in the United States. This listing will help to increase Enterprise's visibility and accessibility to a growing audience of U.S. investors.
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.
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