ST. ALBERT, ALBERTA--(Marketwire - Aug. 14, 2012) - Enterprise Group, Inc. (TSX:E) is pleased to announce the Company's second quarter results, and its fourth consecutive quarter of profitability.
• Revenue for the quarter grew by $1.3 million to $3.9 million compared to the same period last year and for the six months ended June 30, 2012, revenue grew by $675 thousand to $7.5 million over to the same period last year.
• EBITDAS(1) for the quarter grew by $1.3 million to $810 thousand compared to the same period last year and for the six months ended June 30, 2012, EBITDAS grew by $1.5 million to $1.4 million over the same period last year.
• Income for the quarter grew by $1.6 million compared to the same period last year and for the six months ended June 30, 2012, income grew by $2.1 million to $1.4 million over the same period last year.
• For the trailing twelve months the Company has recorded net income of $2.2 million and EBITDAS of $4.1 million.
• Subsequent to the quarter end, the Company entered into a letter of intent to purchase a private utility services company and expects to close the transaction on or before August 31, 2012.
OVERALL PERFORMANCE AND RESULTS
The Company recorded a consolidated income from operations of $417 thousand for the three months ended June 30, 2012, which resulted in a year to date income from operations of $585 thousand, increases of $1.6 million and $2.1 million or 135.8% and 137.7% respectively. Revenue for the Company grew to $3.9 million, for the three months ended June 30, 2012, an increase of $1.2 million or 48.8%, and $7.5 million for the six months ended June, 30, 2012, an increase of $676 thousand or 9.9%. EBITDAS increased by $489 thousand or 281.7% to $810 thousand for the second quarter of 2012 and grew to $1.4 million for the six months ended June 30, 2012, an increase of $1.5 million or 1079.5% compared to the same period last year. For the trailing twelve months ended June 30, 2012, the Company recorded income from operations of $2.2 million and EBITDAS of $4.1 million.
The gross margin of the Company for the three months ended June 30, 2012, was 37.7% compared to 9.5% for the three months ended June 30, 2011. For the six months ended June 30, 2012, the gross margin was 35.8% compared to 18.2% for the same period last year.
Along with Company's continued profitability, the Company continued to improve its statement of financial position, by paying down over $549 thousand of existing debt and entering into new financing facilities that better serve the needs of the Company. Interest and bank charges amounted to $79 thousand or 2.0% of revenue for the three months ended June 30, 2012, compared to $306 thousand or 11.7% for the same period in the previous year. For the six months ended June 30, 2012 interest on loans and borrowings amounted $160 thousand or 2.1% of revenue compared to $612 thousand or 8.9% of revenue for the six months ended June 30, 2011. The decrease in interest expense reflects the reduced interest costs as a result of refinancing the high interest loans that the Company was carrying in the prior year.
Enterprise Group, Inc. is a construction services company operating in the energy, utility and transportation infrastructure industry. The Company's focus is primarily underground construction and maintenance and above ground plants and facilities 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.
(1) EBITDAS = Earnings Before Income Tax, Depreciation, Amortization and Stock Based Compensation
Certain statements contained in this 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 current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to anticipated activity levels and profitability of the Company's utility and infrastructure division and anticipated increases in revenue and margins attributed to services provided by the Company to the energy sector contain forward-looking information. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the next year. The forward-looking statements and information may not be appropriate for other purposes. 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.