Business
Enterprise Group Announces Results for Third Quarter 2020
St. Albert, Alberta--(Newsfile Corp. - November 13, 2020) - Enterprise Group, Inc. (TSX: E) (t...
About this update from Enterprise Group, Inc.
[{"type":"text","content":"Enterprise Group Announces Results for Third Quarter 2020St. Albert, Alberta--(Newsfile Corp. - November 13, 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 Q3 2020 results.Three months September 30, 2020Three months September 30, 2019Nine months September 30, 2020Nine months September 30, 2019Revenue$2,505,840$3,830,847$11,636,960$14,172,541Gross margin$352,221$352,043$3,407,573$3,488,313Gross margin %14%9%29%25%EBITDA(1)$11,425$(183,188)$2,301,716$1,847,235Net loss and comprehensive loss$(1,555,677)$(2,297,554)$(2,895,946)$(3,838,631)Loss per share $(0.03)$(0.04)$(0.06)$(0.07) (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, lower demand for energy resources, and consolidation within the energy sector, customers reduced activity negatively impacting revenue in Q3. Revenue for the three months ended September 30, 2020, was $2,505,840 compared to $3,830,847 a decrease of $1,305,007. Revenue for the nine months ended September 30, 2020, was $11,636,960 compared to $14,172,541 a decrease of $2,535,581. The Company generated positive cash flow from operations for the three months ended September 30, 2020 of $223,276 and $3,558,993 for the nine months ended September 30, 2020, which was consistent to the prior periods of $740,180 and $3,914,674 for the three and nine months respectively. During the nine months ended September 30, 2020, the Company purchased and cancelled 1,197,500 shares at a cost of $174,165. As result, the Company's share capital account was reduced by $1,719,897 representing the average share value of outstanding shares cancelled. 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 three months ended September 30, 2020, was $352,221 which was relatively unchanged compared to the prior period of $352,043. On a percentage basis however, gross margin for the three months increased by 5 basis points over the prior period. Utilizing ...