outlook OUTLOOK
The economy continues to gain momentum in Western Canada and expectations are that it will continue to grow
through 2014. Economists at several Canadian banks are predicting that Western Canada will lead the nation in
economic growth, and the Province of Alberta will lead all provinces in real GDP growth and employment growth in
2014 and 2015 due to robust activity in the energy and construction sectors. Management expects the Company’s
operations to continue to benefit from the economic growth in Western Canada.
The utilities/infrastructure construction division has been operating at or near capacity. Enterprise expects the
acquisition of Calgary Tunnelling & Horizontal Augering Ltd. and the expansion of the division’s service and
equipment fleets to double the size of this division in 2014. In 2013, this division renewed a three year, multi-million
dollar service contract with one of Canada’s premier power suppliers and, due to the high level of service and quality
of work, was also awarded a second contract from the same customer that is similar in size and scope. Also, the
Company’s major customers have indicated that the demand for quality work exceeds supply which has resulted in a
backlog of projects.
The increased access to capital for many of the energy companies has resulted in an increase in the need for heavy
and specialized equipment. This trend is continuing in 2014. Enterprise will continue to increase its specialized
equipment rental fleet to meet the growing demand.
In 2013, the Company spent a significant amount of time and effort to complete the due diligence required to acquire
Hart. Management expects that, with adequate capital asset investment, Hart will significantly contribute to the growth
of Enterprise in 2014 and provide additional synergies and exposure in the specialized equipment markets in both
Alberta and British Columbia.
Management expects to continue to demonstrate strong organic growth from its operations due to ongoing demand
for the Company’s services and will continue to expand its service and rental fleets to meet demand. Management’s
2014 capital budget of approximately $20 million will be utilized as follows: i) approximately $3 million towards the
expansion of underground utility and tunnelling equipment; ii) approximately $2 million towards the expansion of the
utility hydro-vac fleet; and iii) approximately $15 million towards acquiring additional oilfield service rental equipment
and flameless heaters.