Bullboard - Stock Discussion Forum Enterprise Group Inc T.E

Alternate Symbol(s): ETOLF

Enterprise Group, Inc. is a consolidator of services, including specialized equipment rental to the energy/resource sector. The Company works with systems and technologies that mitigate, reduce, or eliminate carbon dioxide (CO2) and greenhouse gas emissions for itself and its clients. It provides specialized equipment and services in the build out of infrastructure for the energy, pipeline, and... see more

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TSX:E - Post Discussion

Enterprise Group Inc > E

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Post by DemDem on Feb 08, 2022 10:06am

E

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.

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