Enterprise Group Inc T.E

E

[DemDem]

• Revenue for the three months ended December 31, 2021 was $5,731,000 compared to $3,883,000 in the prior period, an increase of $1,848,000 or 48%. Adjusted gross margin for the three months ended December 31, 2021 was $2,102,000 compared to $1,453,000 in the prior period, an increase of $649,000 or 45%. Adjusted EBITDA for the three months ended December 31, 2021 was $1,532,000 compared to $1,010,000 in the prior period, an increase of $522,000 or 52%.

• Revenue for the year ended December 31, 2021 was $18,732,000 compared to $15,520,000 in the prior year, an increase of $3,212,000 or 21%. Adjusted gross margin for the year ended December 31, 2021 was $4,947,000 compared to $3,778,000 in the prior year, an increase of $1,169,000 or 31%. Adjusted EBITDA for the year ended December 31, 2021 was $2,924,000 compared to $2,085,000 in the prior year, an increase of $839,000 or 40%.

• During the three months ended December 31, 2021, the Company purchased and cancelled 627,500 shares at a cost of $191,000, reducing the share capital account by $893,000. For the year ended December 31, 2021, the Company purchased and cancelled 2,034,500 shares at a cost of $508,000, reducing the share capital account by $2,904,000. Since the initiation of the share buyback program, the Company has purchased and cancelled 8,094,000 shares at a cost of $2,388,000 and as a result, the Company's share capital account has been reduced by $11,464,000 over the entire share buyback program. Enterprise believes its stock remains undervalued and will continue to re-invest positive cash flow to buy-back shares to enhance shareholder value.

• The Company has benefited from the Canadian Emergency Wage Subsidy and Rent Subsidy Programs ("CEWS" and "CERS") which ended in October 2021. To provide further comparability to pre-Covid operations, the Company has presented Adjusted Gross Margin and Adjusted EBITDA to reflect the results without any subsidy programs. Utilizing the CEWS and CERS programs, the Company recorded $28,000 ($334,000 - December 2020) against direct costs for the three months ended December 31, 2021, and $32,000 ($392,000 - December 2020) against Adjusted EBITDA for the three months ended December 31, 2021. Utilizing the CEWS and CERS programs, the Company recorded $1,649,000 ($1,417,000 - December 2020) against direct costs for the year ended December 31, 2021, and $1,909,000 ($1,619,000 - December 2020) against Adjusted EBITDA for the year ended December 31, 2021.