Enterprise Group, Inc. Announces Second Quarter Results

Enterprise Group, Inc. Announces Second Quarter Results 
ST. ALBERT, ALBERTA -- (Marketwired) -- 08/14/13 -- Enterprise Group,
Inc. ("Enterprise", or "Company") (TSX:E) is pleased to announce the
Company's results for the period ended June 30, 2013. 
QUARTERLY HIGHLIGHTS 


 
--  Enterprise's operations are seasonal and the second quarter continues to
    be the slowest quarter of the year. It has been well publicized that the
    weather in western Canada during the second quarter has had a
    significant impact on both utilities and infrastructure construction
    projects, which has also affected Enterprise's rental equipment
    division. This in turn has created a backlog of work which will have a
    positive impact on revenue in the last half of the year. During this
    slower operational period, Enterprise focused on its strategy by
    solidifying financing, assessing future acquisitions and completing the
    previously announced acquisition.
      
--  Enterprise completed the acquisition of a specialized underground
    infrastructure construction company, Calgary Tunnelling & Horizontal
    Augering Ltd., for a purchase price of $12,000,000 plus working capital.
    The acquisition was funded through a combination of cash, the issuance
    of 727,908 common shares at a deemed price of $0.69 per share and vendor
    take-back financing in the amount of $1,000,000 to be paid over two
    years. This acquisition is aligned with the Company's strategy to focus
    on infrastructure and specialty rental operations and will assist to
    mitigate the seasonality of existing operations and provide significant
    future growth opportunities. The effective date of the acquisition was
    June 14, 2013 and combined with the wet conditions and flooding in
    Alberta, the impact of this acquisition on the second quarter operating
    results is minimal. The Company estimates that if this acquisition had
    occurred January 1, 2013, the Company's consolidated revenues and net
    income for the six months ended June 30, 2013 would have been
    approximately $19,000,000 and $5,100,000 respectively.
      
--  In the second quarter, the Company increased its senior secured finance
    facility to a maximum of $20,000,000 from $12,500,000. The increase
    provides an additional financing source for future acquisitions, capital
    expenditures and working capital.
      
--  In June 2013, the Company purchased land for $2,050,000 to support the
    new multi-million dollar service contract awarded in the first quarter
    to the utilities/infrastructure construction division. The land will
    have multiple purposes providing operational efficiencies and cost
    effectiveness while servicing the new contract.
      
--  Artic Therm International Ltd. has completed the construction of 3
    project units which are in the final commission stage. The remaining 3
    units are on schedule for completion in the fall to take advantage of
    the busy winter heating season.
      
--  Earnings per share for the six months ended June 30, 2013 was $0.03
    compared to $0.01 in the same period last year. Earnings per share for
    the quarter was ($0.02) compared to $0.01 in the same period last year.
      
--  For the six months ended June 30, 2013 net income was $1,624,000
    compared to $585,000 in the same period last year, an increase of
    $1,039,000. Net loss for the quarter was ($1,523,000), compared to net
    income of $417,000 in the same period last year. Results include a non-
    cash charge of $625,000 for the fair value of stock options issued and
    also includes an additional $500,000 of fees associated with raising
    capital and the acquisition.
      
--  Revenue for the six months ended June 30, 2013 was $13,730,000 compared
    to $7,523,000 in the same period last year, an increase of $6,207,000.
    Revenue for the quarter increased by $934,000 to $4,826,000 compared to
    the same period last year.
      
--  EBITDAS(1) for the six months ended June 30, 2013 increased by
    $2,501,000 to $3,906,000 compared to the same period last year. EBITDAS
    for the quarter decreased by $805,000 to $5,000 compared to the same
    period last year. 
 
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                         SUMMARY FINANCIAL OVERVIEW                         
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         For the three months               For the six months              
                 ended                             ended                    
                June 30                           June 30                   
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            2013   2012 % chg  % of Revenue   2013  2012 % chg % of Revenue 
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Revenue   $  4.8  $ 3.9    23%               $13.7 $ 7.5    83%             
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EBITDAS      0.0    0.8   (99%)           0%   3.9   1.4   179%          28%
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Net                                                                         
 Income                                                                     
 (loss)     (1.5)   0.4  (475%)           -    1.6   0.6    63%          12%
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EPS        (0.02)  0.01                       0.03  0.01                    
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% change are representative of whole un-rounded numbers                     
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(1) EBITDAS = Earnings Before Interest, Tax, Depreciation, Amortization and 
Stock Based Compensation                                                    

 
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 utility &
infrastructure construction 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. Enterprise became a Western Canadian
leader in flameless heat technology in September 2012 with its
acquisition of Artic Therm International Ltd. and is poised to become
a technological leader in underground infrastructure construction
upon closing of its pending infrastructure construction acquisition. 
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 fac
tors 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"). EBITDA 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 EBITDA. 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, EBITDA 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. EBITDA is
calculated as net income excluding depreciation, amortization,
interest and taxes.
Contacts:
First Canadian Capital Corp.
Daniel Boase
416-742-5600
DBoase@firstcanadiancapital.com 
Enterprise Group, Inc.
Leonard D. Jaroszuk
President & CEO
780-418-4400
contact@EnterpriseGRP.ca 
Enterprise Group, Inc.
Desmond O'Kell
Vice President
780-418-4400
contact@EnterpriseGRP.ca
www.EnterpriseGRP.ca
 
 
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