Mr. Leonard Jaroszuk reports
ENTERPRISE GROUP ANNOUNCES RESULTS FOR SECOND QUARTER 2023
Enterprise Group Inc. has released its second quarter 2023 results.
- The first six months of the year were some of the strongest in recent history. The second quarter of 2023 equalled the prior-year results despite returning to its typical seasonal slowdown of spring breakup and road bans. In the previous year, instead of slowing down in Q2, the industry worked through and retooled in Q3 2022. The second quarter of 2023 also had the challenge of forest fires in Northern Alberta and British Columbia, which resulted in mandatory evacuation orders and workplace shutdowns, reducing activity in the affected areas and supressing the quarterly results. Revenue for the three months ended June 30, 2023, was $5,459,855, compared with $5,297,685 in the prior period, an increase of $162,170, or 3 per cent. Gross margin for the three months ended June 30, 2023, was $1,679,552, compared with $1,610,188 in the prior period, an increase of $69,364, or 4 per cent. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended June 30, 2023, was $1,115,876, compared with $1,015,978 in the prior period, an increase of $99,898, or 10 per cent. Revenue for the six months ended June 30, 2023, was $15,468,187, compared with $12,927,103 in the prior period, an increase of $2,541,084, or 20 per cent. Gross margin for the six months ended June 30, 2023, was $6,778,847, compared with $5,131,973 in the prior period, an increase of $1,646,874, or 32 per cent. Adjusted EBITDA for the six months ended June 30, 2023, was $5,508,558, compared with $4,045,803 in the prior period, an increase of $1,462,755, or 36 per cent. Increases in revenue, gross margin and EBITDA for the three and six months are reflective of increases in customer activity in 2023 while maintaining the operating efficiencies of the company.
- For the six months ended June 30, 2023, the company generated cash flow from operations of $8,517,478, compared with $4,841,629 in the prior period. This change is consistent with the higher activity levels during the period. 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, 2023, the company purchased $6,945,205 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 microgrid packages.
- During the six months ended June 30, 2023, the company repurchased and cancelled 1,271,000 shares at a cost of $508,784, or 40 cents per share. These shares had a carrying value of $1.32 per share for a total of $1,162,830, which has been removed from the share capital account. Since the initiation of the share buyback program, the company has purchased and cancelled 11,328,500 shares at a cost of $2,900,364, or 26 cents per share. These shares have a carrying value of $1.41 per share for a total of $15,960,766, which has been removed from the share capital account over the entire share buyback program. Enterprise has effectively bought back and cancelled the maximum amount of shares allowed under its current share buyback program. Management is in the process of renewing the program and will continue to be aggressive in acquiring its shares, as management believes Enterprise Group's stock remains undervalued as the company's book value is 74 cents per share. Additionally, the company has available tax losses of 16 cents per share and is in the process of developing a consolidated tax plan to utilize those losses.
- In April, 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 microgrid technology, allowing clients to eliminate diesel entirely. A significant portion of Enterprise's capital expenditures for 2022 and 2023 was for additional natural-gas-powered systems, including turbine generators. EPP can now provide multimegawatt mobile microgrid technology, 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 (environmental, social and governance) reporting and objectives.
- On Jan. 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 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 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 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.
We seek Safe Harbor.
© 2023 Canjex Publishing Ltd. All rights reserved.