Enterprise Group earns $3.2-million in Q1
2013-05-09 09:43 ET - News Release
Mr. Daniel Boase reports
ENTERPRISE GROUP, INC. ANNOUNCES FIRST QUARTER RESULTS
Enterprise Group Inc. has provided its first quarter results for the period ended March 31, 2013, and its seventh consecutive quarter of profitability.
Quarterly highlights
Net profit for the quarter surpassed not only any historical quarter but also exceeded any full fiscal year's profitability in the history of the company.
Net income for the quarter was $3,167,000, or 34 per cent of revenue, compared with $169,000 in the same quarter last year, an increase of $2,998,000.
Earnings per share for the quarter were five cents per share compared with nil in the same quarter last year.
Revenue for the quarter increased by $5,273,000 to $8,904,000 compared with the same period last year.
Earnings before interest, tax, depreciation, amortization and stock-based compensation (EBITDAS) for the quarter increased by $3,306,000 to $3,901,000 or 44 per cent of revenue, compared with the same period last year.
Gross profit for the quarter was $5,202,000 or 58.4 per cent compared with $1,226,000 or 33.8 per cent for the same period last year.
The company's utilities/infrastructure construction division renewed a three-year, multimillion-dollar service contract with one of Canada's premier power suppliers and due to the high level of service and quality of work, this division was awarded a second contract from the same customer that is similar in size and scope. These contracts were signed in February of 2013.
The company added depth to its management team hiring Warren Cabral, CA, as chief financial officer to assist with the future growth of the company.
To assist in executing the company's strategy, in February $1.05-million was raised in a non brokered private placement of 4.2 million units at 25 cents per unit. Each unit comprises one common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of 35 cents for a period of six months from the closing of the offering, subject to accelerated expiry in certain circumstances.
Also in February, the company signed a letter of intent to acquire a specialized underground infrastructure construction company for $12-million. 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 the company's existing operations. The purchase price of the acquisition is just over two times EBITDA (earnings before interest, taxes, depreciation and amortization) of the target company.
To finance this acquisition, in March the company entered into an arrangement to raise $6-million of unsecured convertible debentures. The debentures have a two-year term at 6-per-cent interest and will be convertible into common shares at a price of 50 cents per share.
Additionally, subsequent to the quarter-end, on May 2, 2013, the company accepted a term sheet presented by PNC Bank Canada Branch to increase its current senior secured finance facility from $12.5-million to a maximum of $20-million.
SUMMARY FINANCIAL OVERVIEW
For the three months ended
March 31,
2013 2012
Revenue $8.9 $5.3
Gross profit 5.2 1.2
EBITDAS 3.9 .6
Net income 3.2 0.2
EPS 0.05 -
