Enterprise Group Announces Financial Results for Third Quarter 2024
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St. Albert, Alberta--(Newsfile Corp. - November 8, 2024) - Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) (the "Company" or "Enterprise"). Enterprise, a consolidator of energy services (including specialized equipment and services to the energy/resource sector), emphasizes technologies that mitigate, reduce, or eliminate CO2 and Green House Gas (GHG) and other harmful emissions for small local and Tier One resource clients, is pleased to announce its Q3 2024 results.
| | Three months | | Three ended | | Nine months | | Nine months | |
| Revenue | $6,801,309 | | $8,433,369 | | $26,834,878 | | $23,901,556 | |
| Gross margin | $2,521,317 | 37% | $3,878,931 | 46% | $12,735,996 | 47% | $10,657,777 | 45% |
| Adjusted EBITDA(1) | $1,807,864 | 27% | $3,402,589 | 40% | $10,797,411 | 40% | $8,911,144 | 37% |
| Net income and comprehensive income | $(197,592) | | $1,639,148 | | $3,870,346 | | $3,914,744 | |
| Income per share - Basic | $0.00 | | $0.03 | | $0.07 | | $0.08 | |
| Income per share - Diluted | $0.00 | | $0.03 | | $0.06 | | $0.08 | |
| (1) Identified and defined under "Non-IFRS Measures". | ||||||||
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The first nine months of the year the Company saw stronger results and higher activity levels than in 2023. However, the third quarter saw a reduction in activity, for the first half of the year for two primary reasons. First was apprehension and preparation for a potentially severe forest fire season, leading some customers to delay the execution of planned projects to the end of the forest fire season. The second reason was some customers took advantage of the summer months to allow employees extended time off to prepare employees for the up coming demands of another year of busy field activity. This shift underscores a broader industry commitment to sustainable work practices and the long-term well-being of the workforce, which naturally led to the reduction in activity compared to the first half of the year. Even though the third quarter saw reduced activity, activity levels are higher than in 2023 and contributed to the Company's strong year to date results which included growth in revenue and adjusted EBITDA of 12% and 21% respectively. The increasing demand for natural gas power generation systems indicates a shift towards lower emission alternatives, and going forward, market conditions remain favourable for the energy sector, resulting in increased drilling, completion, and infrastructure projects. These factors are expected to continue for the remainder of 2024 and 2025.
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Revenue for the three months ended September 30, 2024, was $6,801,309 compared to $8,433,369 in the prior period, a decrease of $1,632,060 or 24%. Gross margin for the three months ended September 30, 2024, was $2,521,317 compared to $3,878,931 in the prior period, a decrease of $1,632,060 or 35%. Adjusted EBITDA for the three months ended September 30, 2024, was $1,807,864 compared to $3,402,589 in the prior period, a decrease of $1,594,725 or 47%. Revenue for the nine months ended September 30, 2024, was $26,834,878 compared to $23,901,556 in the prior period, an increase of $2,933,322 or 12%. Gross margin for the nine months ended September 30, 2024, was $12,735,996 compared to $10,657,777 in the prior period, an increase of $2,078,219 or 19%. Adjusted EBITDA for the nine months ended September 30, 2024, was $10,797,411 compared to $8,911,144 in the prior period, an increase of $1,886,267 or 21%. 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.
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For the nine months ended September 30, 2024, the company generated cash flow from operations of $12,102,914 compared to $10,570,610 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, debt and equity to right-size and modernize its equipment fleet to meet customer demands. During the nine months ended September 30, 2024, the Company acquired $13,452,761 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.
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On September 26, 2024, Enterprise announced a new five year exclusivity agreement with FlexEnergy Solutions, a globally recognized original equipment manufacturer of turbine and microturbine power generation equipment. The agreement positions Enterprise and it's wholly owned subsidiary Evolution Power Projects, Inc. as the sole provider of short-term turbine and microturbine applications across all commercial and industrial sectors in Alberta and British Columbia. The five-year agreement, underscores EPP's commitment to expanding its market presence and delivering state-of-the-art energy solutions in key Canadian markets. Under this agreement, EPP will exclusively supply cutting-edge, efficient turbine units for temporary power needs, reinforcing its leadership in the energy sector.
