St. Albert, Alberta--(Newsfile Corp. - February 8, 2022) - Enterprise Group, Inc. (TSX: E) (the "Company" or "Enterprise"), a consolidator of services to the energy sector that is focused primarily on specialized equipment rental, today released its Q4 2021 and FY 2021 unaudited results.
Increased capital spending in the energy industry combined with colder weather have resulted in higher activity levels and improved results for the quarter. "Our unaudited numbers show that Enterprise delivered a 48% revenue increase in Q4 and a 21% increase for FY21," stated Leonard Jaroszuk, President & CEO. "Our aggressive growth plans going forward will build on initiatives commenced in 2021 with significant development in the area of cost-effective solutions to markedly reduce greenhouse gases for our clients' projects, including our numerous Tier One customers, two of whom were recently announced."
Quarter 4: | (Unaudited) (1) Three months December 31, 2021 | Three months December 31, 2020 | Increase / (Decrease) | |||||||||||||||
Revenue | $ | 5,731,000 | $ | 3,883,000 | $ | 1,848,000 | 48% | |||||||||||
Adjusted Gross margin(2)(3) | $ | 2,102,000 | 37% | $ | 1,453,000 | 37% | $ | 649,000 | 45% | |||||||||
Adjusted EBITDA(2)(3) | $ | 1,532,000 | 27% | $ | 1,010,000 | 26% | $ | 522,000 | 52% |
Year end: | (Unaudited) (1) Year ended December 31, 2021 | Year ended December 31, 2020 | Increase / (Decrease) | |||||||||||||||
Revenue | $ | 18,732,000 | $ | 15,520,000 | $ | 3,212,000 | 21% | |||||||||||
Adjusted Gross margin(2)(3) | $ | 4,947,000 | 26% | $ | 3,778,000 | 24% | $ | 1,169,000 | 31% | |||||||||
Adjusted EBITDA(2)(3) | $ | 2,924,000 | 16% | $ | 2,085,000 | 13% | $ | 839,000 | 40% |
(1) The Company's annual year end audit is currently underway; however, it has not yet been completed. The financial figures presented in this release are subject to audit verification and adjustments. The Company expects to release its audited consolidated financial statements no later than March 25, 2022.
(2) The Canadian Emergency Wage Subsidy and Rent Subsidy Programs ended in October 2021. To provide further comparability to pre-Covid operations, the Company has presented an Adjusted Gross Margin and Adjusted EBITDA to reflect the results of operations without any subsidy programs.
(3) Identified and defined under "Non-IFRS Measures".
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. For questions or additional information, please contact:
Leonard Jaroszuk: President & CEO, or
Desmond O'Kell: Senior Vice-President
[email protected]
780-418-4400
Forward-Looking Information
This news release may contain certain forward-looking information, as defined under applicable Canadian securities legislation, that is not based on historical fact, including without limitation statements containing the words "believes," "anticipates," "plans," "intends," "will," "should," "expects," "continue," "estimate," "forecasts" and other similar expressions. In particular, this news release includes forward-looking information relating to the Facility and the Company's intention to pursue acquisition opportunities and to purchase shares pursuant to the normal course issuer bid. Actual results, events, or developments could be materially different from those expressed or implied by these forward-looking statements. There is no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in the Company's Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-IFRS Measures
The Company uses International Financial Reporting Standards ("IFRS"). Adjusted EBITDA and Adjusted Gross Margin are not measures that have any standardized meaning prescribed by IFRS and is therefore referred to as non-IFRS measures. This news release contains references to Adjusted EBITDA and Adjusted Gross Margin. These non-IFRS measures used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, Adjusted EBITDA and Adjusted Gross Margin are useful supplemental measures as they provide an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed, how the results are taxed, or how the results are impacted by temporary subsidies. Adjusted EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes, stock based compensation and subsidies. Adjusted Gross Margin is calculated as gross margin excluding subsidies.
Calculations are as follows:
Cdn. $ | Three months December 31, 2021 | Three months December 31, 2020 | Year ended December 21, 2021 | Year ended December 31, 2020 |
Gross margin | 2,130,000 | 1,787,000 | 6,596,000 | 5,195,000 |
Less: CEWS/CERS subsidies | (28,000) | (334,000) | (1,649,000) | (1,417,000) |
Adjusted gross margin | 2,102,000 | 1,453,000 | 4,947,000 | 3,778,000 |
Adjusted EBITDA | 1,564,000 | 1,402,000 | 4,833,000 | 3,704,000 |
Less: CEWS/CERS subsidies | (32,000) | (392,000) | (1,909,000) | (1,619,000) |
Adjusted EBITDA | 1,532,000 | 1,010,000 | 2,924,000 | 2,085,000 |
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