In This Article:
St. Albert, Alberta--(Newsfile Corp. - August 8, 2024) - Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) (the "Company" or "Enterprise"). Enterprise, a consolidator of energy services (including specialized equipment rental to the energy/resource sector), emphasizing technologies that mitigate, reduce, or eliminate CO2 and Greenhouse Gas emissions for small to Tier One resource clients, is pleased to announce its Q2 2024 results.
| | Three months | | Three ended | | Six months | | Six months | |
| Revenue | $7,707,282 | | $5,549,855 | | $20,033,570 | | $15,468,187 | |
| Gross margin | $3,318,336 | 43% | $1,679,552 | 31% | $10,214,681 | 51% | $6,778,847 | 44% |
| Adjusted EBITDA(1) | $2,651,694 | 34% | $1,115,876 | 20% | $8,989,547 | 45% | $5,508,558 | 36% |
| Net income and comprehensive income | $76,423 | | $(525,736) | | $4,067,937 | | $2,275,599 | |
| Income per share - Basic | $0.00 | | $(0.01) | | $0.07 | | $0.05 | |
| Income per share - Diluted | $0.00 | | $(0.01) | | $0.07 | | $0.05 | |
(1) Identified and defined under "Non-IFRS Measures".
-
During the half of the year, the Company was able to build upon the momentum from 2023. Market conditions were favourable for the energy sector, resulting in additional drilling, completion, and infrastructure projects. Also, the increasing demand for natural gas power generation systems indicates a shift towards lower emission alternatives. Overall, these factors contributed to the Company's strong results in the first half of 2024. Revenue for the three months ended June 30, 2024, was $7,707,282 compared to $5,549,855 in the prior period, an increase of $2,157,427 or 41%. Gross margin for the three months ended June 30, 2024, was $3,318,336 compared to $1,679,552 in the prior period, an increase of $1,638,784 or 98%. Adjusted EBITDA for the three months ended June 30, 2024, was $2,651,694 compared to $1,115,876 in the prior period, an increase of $1,535,818 or 138%. Revenue for the six months ended June 30, 2024, was $20,033,570 compared to $15,468,187 in the prior period, an increase of $4,565,383 or 30%. Gross margin for the six months ended June 30, 2024, was $10,214,681 compared to $6,778,847 in the prior period, an increase of $3,465,834 or 51%. Adjusted EBITDA for the six months ended June 30, 2024, was $8,989,547 compared to $5,508,558 in the prior period, an increase of $3,480,989 or 63%. Increases in revenue, gross margin and EBITDA for the year, are reflective of increased customer activity in 2024 while maintaining the operating efficiencies of the Company.
-
For the six months ended June 30, 2024, the company generated cash flow from operations of $10,635,184 compared to $8,517,478 in the prior year. This change is consistent with the higher activity levels during the year and the growing demand for the natural gas power generation. The Company continues to utilize a combination of cash flow and debt to right-size and modernize its equipment fleet to meet customer demands. During the six months ended June 30, 2024, the Company acquired $9,685,061 of capital assets, primarily for natural gas power generation equipment and facilities, upgrading existing equipment, and meeting specific requests from customers. The Company continues to see its customers switching to natural gas as a cleaner and more efficient alternative to diesel, increasing the demand for natural gas generators and micro-grid packages. Also, the Company purchased land to expand operations and is in the process of constructing a new facility in Fort St. John, BC. The total cost of the project is an estimated $5 million, and the construction work commenced in February 2024. The Company is in the process of obtaining a mortgage on the building. The facility is estimated to be completed by the end of 2024.
-
On March 12, 2024, the Company closed a brokered private placement of 8,234,350 units issued at a price of $0.85 per unit for aggregate gross proceeds of $6,999,197. Each unit consists of one common share and one-half common share purchase warrant. Each warrant is exercisable to acquire an additional common share at an exercise price of $0.95 per share for a period of 24 months. The exercise of all warrants will provide the company an additional $4,585,000. This private placement underscores the Company's commitment to efficiently manage capital while continuing to grow and meet customer demands. As of June 30, 2024, 1,014,425 warrants were exercised at $0.95 per warrant, providing $963,704 in cash proceeds.
-
During the six months ended June 30, 2024, the Company did not repurchase or cancel shares. Since the initiation of the share buyback program, the Company has purchased and cancelled 11,336,000 shares at a cost of $2,903,646 or $0.26 per share. These shares have a carrying value of $1.41 per share for a total of $15,970,630 which has been removed from the share capital account over the entire share buyback program. The Company renewed its bid on August 24, 2023, with a termination date of August 29, 2024, or such earlier time as the bid is completed or terminated at the option of the Company. The Company has available tax losses of $0.12 per share and has developed a consolidated tax plan to utilize those losses against operating income.