Business
Enterprise Group Announces Results for Fourth Quarter and Full Year 2018
St. Albert, Alberta--(Newsfile Corp. - March 15, 2019) - Enterprise Group, Inc. (TSX: E) ("Ent...
About this update from Enterprise Group, Inc.
[{"type":"text","content":"Enterprise Group Announces Results for Fourth Quarter and Full Year 2018St. Albert, Alberta--(Newsfile Corp. - March 15, 2019) - Enterprise Group, Inc. (TSX: E) (\"Enterprise,\" or \"the Company\"), a consolidator of services to the energy sector; focused primarily on construction services and specialized equipment rental, today released its Q4 2018 and FY2018 results. Three months December 31, 2018(2)Three months December 31, 2017restated(3)Year ended December 31, 2018(2)Year ended December 31, 2017 restated(3)Revenue$5,581,767$7,385,404$20,479,612$24,339,548Gross margin$1,481,836$2,130,699$2,888,283$6,575,465Gross margin %27%29%14%27%EBITDA(1)$742,581$1,830,715$81,588$4,255,893Net (loss) income and comprehensive (loss) income$(4,567,789)$372,957$(5,812,503)$(936,041)EPS $(0.08)$0.01$(0.11)$(0.02) (1) Identified and defined under \"Non-IFRS Measures\".(2) Includes a non-recurring and non-cash impairment charge for the year ended December 31, 2018 of $3,887,300 (2017 - $nil) relating to intangible assets and goodwill.(3) In March 2018, the Company closed a transaction to divest substantially all the assets of CTHA. The net operations of CTHA, including the prior period, are presented as a single amount in the consolidated statements of loss and comprehensive loss.In March 2018, the Company closed a transaction to divest substantially all the assets of Calgary Tunnelling & Horizontal Augering Ltd. (\"CTHA\"). CTHA provided specialized trenchless solutions for the energy, utility and infrastructure industries. Gross cash proceeds, including working capital, from the transaction was $20,194,992. Working capital is being paid out over time with the final payment due April 15, 2019. All proceeds from the transaction were deployed towards reducing the Company's debt.The increased activity experienced in 2017 did not continue into 2018 and activity continued to decline until the fourth quarter of 2018. Industry wide price reductions and competition continues to negatively impact margins, however, Enterprise's high level of service combined with its expertise and specialized equipment has allowed the Company to retain long-term customers while expanding its customer base. Revenue for the three months ended December 31, 2018 decreased by $1,803,637 to $5,581,767 compared to the prior period. Gross margin declined to 27% and EBIT...