ENTERPRISE GROUP (TSX: $E) RESULTS FOR FOURTH QUARTER AND FULL
YEAR 2016
For Q4 ending
December 31, 201, Enterprise saw a 20 percent increase in revenue to C$8.3
million from C$6.9 million for the same period 2016. Gross profit margin rose
to 29% from 5% in Q4 2015
ST.
ALBERT, ALBERTA--(Mar 21, 2017) – (Investorideas.com Newswire) Enterprise
Group, Inc. ("Enterprise," or "the Company") (TSX: E), a consolidator
of services to the energy sector; focused primarily on construction services
and specialized equipment rental, today released its Q4 2016 and FY2016
results.
|
Consolidated: |
Three months December 31, 2016 |
Three months
December 31, 2015 restated(3)(4) |
Year ended December 31, 2016 |
Year ended
December 31, 2015 restated(3)(4) |
Change year over year |
|
Revenue
|
$8,326,646
|
$6,928,381
|
$28,723,585
|
$39,754,739
|
($11,031,154)
|
|
Gross
margin
|
$2,415,477
|
$312,879
|
$6,828,782
|
$9,076,938
|
($2,248,156)
|
|
Gross
margin %
|
29%
|
5%
|
24%
|
23%
|
1%
|
|
EBITDA(1)
|
$1,827,760
|
($120,950)
|
$3,851,894
|
$5,500,260
|
($1,648,366)
|
|
Loss
before tax (2)
|
($8,311,697)
|
($19,466,008)
|
($15,553,151)
|
($23,250,495)
|
$7,697,344
|
|
Net loss
from continuing operations (2)
|
($8,047,925)
|
($17,252,047)
|
($12,922,496)
|
($19,906,559)
|
$6,984,063
|
|
Loss from
discontinued operations (3)(4)
|
($1,872,539)
|
($1,312,265)
|
($242,544)
|
($400,592)
|
$158,048
|
|
Net loss
and comprehensive loss (2)
|
($9,920,464)
|
($18,408,292)
|
($13,165,040)
|
($20,307,151)
|
$7,142,111
|
|
EPS
|
($0.18)
|
($0.35)
|
($0.24)
|
($0.40)
|
$0.16
|
|
Total
assets
|
$84,600,493
|
$119,217,868
|
$84,600,493
|
$119,217,868
|
($34,617,375)
|
|
(1)
Identified and defined under "Non-IFRS Measures".
|
|||||
|
(2)
Includes a non-recurring and non-cash impairment charge of $8,436,911 (2015 -
$16,558,240) relating to property, plant and equipment, intangible assets and
goodwill.
|
|||||
|
(3) 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.
|
|||||
|
(4) 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.
|
|||||
For
Q4 ending December 31, 201, Enterprise saw a 20 percent increase in revenue to
C$8.3 million from C$6.9 million for the same period 2016. Gross profit margin
rose to 29% from 5% in Q4 2015.
As
well, the Company is pleased to report positive EBITDA of C$1.8 million for Q4
2016 versus (C$120,950) 2015. For the same period, EBITDA rose to 22% from
negative 2% in Q4 2015.
"Enterprise
management is extremely encouraged by our latest results," stated Leonard
D. Jaroszuk, CEO, President and Chairman. "From negative cash flow in Q4
2015, management efforts raised that number to positive C$0.07 per share. As
well, we secured amended loan agreements to reduce our interest rate along with
more favourable covenants. Equally impressive is that the Company retired debt
of C$18.3 million through the funds (C$19.8 million) received from the
transaction to divest substantially all the assets of TC Backhoe &
Directional Drilling Ltd (TCB)."
The
acquisition of TCB in 2007 for $12 million was immediately accretive. During
our 9.5 years of ownership, TC generated roughly 13-fold ($154 million) the
purchase price in revenues and extended our reputation as the premier and
frankly the only 'One Stop Source' for virtually every critical resource
construction service.
While
it has been an extremely challenging period for resource companies in Western
Canada, Enterprise has demonstrated its confidence and ability to analogously
'weather the storm' strongly while many competitors and clients are either
financially impaired or gone altogether.
Enterprise
has turned in significant gross margin and EBITDA improvements evidenced in the
fourth quarter which is the result of determined leadership. Management's
continued efforts to streamline and maximize efficiencies are now firmly in
place and delivering meaningful margin ratios while still navigating a
challenging landscape.
The
improvements to profits and the rapid return to significant cashflow should
give investors' and shareholders confidence for the future. Certainly, all is
still challenging in Western Canada, but today's results show a significant
improvement in both business and the overall environment.
Enterprises'
clients include some of Canada's largest energy producers, utility service
providers and the federal and provincial governments of Canada. The Company
employs management highly experienced in large infrastructure projects.
Given
the noted limited visibility for 2017 activity and pricing levels, Enterprise will
maintain a conservative approach towards Capital Spending while looking at
fleet management and opportunistic asset dispositions. This approach will allow
management to both maintain critical financial flexibility, allow for
strategic, accretive acquisitions and continue to build compelling shareholder
value.
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
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"). 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.
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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