Business
Enterprise Group Announces Results for First Quarter 2020
St. Albert, Alberta--(Newsfile Corp. - May 15, 2020) - Enterprise Group, Inc. (TSX: E) (the " ...
About this update from Enterprise Group, Inc.
[{"type":"text","content":"Enterprise Group Announces Results for First Quarter 2020St. Albert, Alberta--(Newsfile Corp. - May 15, 2020) - Enterprise Group, Inc. (TSX: E) (the \"Company\" or \"Enterprise\"), a consolidator of services to the energy sector, focused primarily on specialized equipment rental, today released its Q1 2020 results.  Three months March 31, 2020 Three months March 31, 2019     Revenue $6,986,550 $7,149,422Gross margin $2,849,296 $3,071,478Gross margin % 41% 43%EBITDA(1) $2,306,444 $2,561,805Net income and comprehensive income $504,694 $692,986Earnings per share $0.01 $0.01(1) Identified and defined under \"Non-IFRS Measures\".The Company has been able to maintain its customer base and as a result, the activity experienced up to mid-March 2020 was consistent with the prior year. However, as a result of COVID-19 guidelines and restrictions, customers did reduce activity in March negatively impacting revenue. Revenue for the three months ended March 31, 2020 was $6,986,550 compared to $7,149,422 a decrease of $162,872. As a result of the revenue decline in March compared to the prior period, the Company is eligible for the Canada Emergency Wage Subsidy. The Company will continue to monitor revenue levels to determine ongoing eligibility for this and other programs offered by the Federal Government to improve cash flow.The Company generated positive cash flow from operations of $646,229 for the three months ended March 31, 2020, which was consistent to the prior period of $623,988. During the 3 months ended March 31, 2020, the Company purchased and cancelled 709,000 shares at a cost of $97,744. As result, the Company's share capital account was reduced by $1,018,294, representing the average share value of outstanding shares. Enterprise believes its stock remains undervalued and will continue to re-invest positive cash flow to buy-back shares to enhance shareholder value. Gross margin for the for the three months ended March 31, 2020, was $2,849,296 or 41%, a decrease of $222,182 compared to the prior period of $3,071,478 or 43%. EBITDA was $2,306,444 for the three months ended March 31, 2020, a decrease of $255,361 compared to the prior period.About Enterprise Group, Inc.Enterprise Group, Inc. is a consolidator of services to the energ...