Welcome!

News Feed Item

Enterprise Group Announces Results for Fourth Quarter and Full Year 2016

ST. ALBERT, ALBERTA -- (Marketwired) -- 03/20/17 -- 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.

                                                                            
----------------------------------------------------------------------------
                                                 Three months               
                                  Three months       December     Year ended
                                      December       31, 2015       December
Consolidated:                         31, 2016 restated(3)(4)       31, 2016
----------------------------------------------------------------------------
Revenue                             $8,326,646     $6,928,381    $28,723,585
Gross margin                        $2,415,477       $312,879     $6,828,782
Gross margin %                             29%             5%            24%
EBITDA(1)                           $1,827,760     ($120,950)     $3,851,894
Loss before tax (2)               ($8,311,697)  ($19,466,008)  ($15,553,151)
Net loss from continuing                                                    
 operations (2)                   ($8,047,925)  ($17,252,047)  ($12,922,496)
Loss from discontinued                                                      
 operations (3)(4)                ($1,872,539)   ($1,312,265)     ($242,544)
Net loss and comprehensive loss                                             
 (2)                              ($9,920,464)  ($18,408,292)  ($13,165,040)
EPS                                    ($0.18)        ($0.35)        ($0.24)
Total assets                       $84,600,493   $119,217,868    $84,600,493
----------------------------------------------------------------------------

                                                             
-------------------------------------------------------------
                                    Year ended               
                                      December               
                                      31, 2015    Change year
Consolidated:                   restated(3)(4)      over year
-------------------------------------------------------------
Revenue                            $39,754,739  ($11,031,154)
Gross margin                        $9,076,938   ($2,248,156)
Gross margin %                             23%             1%
EBITDA(1)                           $5,500,260   ($1,648,366)
Loss before tax (2)              ($23,250,495)     $7,697,344
Net loss from continuing                                     
 operations (2)                  ($19,906,559)     $6,984,063
Loss from discontinued                                       
 operations (3)(4)                  ($400,592)       $158,048
Net loss and comprehensive loss                              
 (2)                             ($20,307,151)     $7,142,111
EPS                                    ($0.40)          $0.16
Total assets                      $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 the FY 2016, revenues totaled C$28.7 million versus C$39.8 million FY 2015.

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.

Contacts:
Leonard Jaroszuk
President & CEO
780-418-4400

Desmond O'Kell
Senior Vice-President
780-418-4400
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...