Enterprise Oilfield Group, Inc.
TSX : E

Enterprise Oilfield Group, Inc.

November 14, 2011 11:22 ET

Enterprise Oilfield Group, Inc. Announces Third Quarter Results

ST. ALBERT, ALBERTA--(Marketwire - Nov. 14, 2011) - Enterprise Oilfield Group, Inc. is pleased to announce the Company's return to profitability, recording a net income of $743 thousand for the three months ended September 30, 2011, in spite of a very wet month of July. Both of the Company's divisions, the energy services division and the underground utility and infrastructure division, saw revenue increases of 163% and 19.3% respectively, along with increases in gross margin of 371.8% and 53.1% respectively and increases in EBITDAS[1] of 272.2% and 96.4% respectively over the same quarter last year.

The Company recorded consolidated revenue of $4.8 million for the three months ended September 30, 2011, compared to $3.4 million for the three months ended September 30, 2010, an increase of $1.4 million or 40.4%. The consolidated revenue for the nine months ended September 30, 2011, was $11.7 million compared to $11.6 million for the same period last year. Although the year to date revenue is relatively flat compared to the prior year, the Company made great strides forward in the third quarter of 2011, overcoming a late spring thaw, forest fires, mandatory evacuations and flooding in the Slave Lake area, followed by a very wet July across the province. Both the energy services division and the underground utilities and directional drilling division contributed to positive growth in spite of these conditions.

As a result, the Company increased its EBITDAS1 position with a positive EBITDAS of $1.4 million and a net income of $743 thousand for the three months ended September 30, 2011, compared to negative EBITDAS of $0.2 million and a net loss of $0.5 million for the three months ended September 30, 2010, an improvement of $1.6 million, or 918%, on EBITDAS and an increase in the net income of $1.3 million, or 236%. Positive EBITDAS for the nine months ended September 30, 2011, was $1.3 million and a net loss of $808 thousand compared to negative EBITDAS of $1.0 million and a net loss of $1.9 million for the nine months ended September 30, 2010, an improvement of $2.3 million, or 219%, on EBITDAS and an improvement in the net loss position of $1.1 million, or 58%.

Along with increasing revenues and EBITDAS1, the Company improved its balance sheet and repaid a significant portion of its debt facilities. In June, Enterprise secured conventional financing in the form of a $1.8 million term debt facility which was used to pay down the Company's high interest term debt and in October 2011, the Company secured $1.5 million in new financing that will be used to pay out the remaining portion of this high interest debt. As a result of these new financings, the Company will save approximately $508 thousand in interest costs in 2012. For the nine months ended September 30, 2011, Enterprise repaid $3.5 million of loans and borrowings including $2.4 million of the high interest debt facility.

The Management Discussion and Analysis (MD&A) will be filed with SEDAR together with the interim financial statements on the date of this release.

Enterprise Oilfield Group, Inc. is a construction services company operating in the energy, utility and transportation infrastructure industry. The Company's focus is primarily underground construction and maintenance and above ground plants and facilities. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human resources to support continued growth.

[1] EBITDAS = Earnings Before Income Tax, Depreciation, Amortization and Stock Based Compensation

Forward Looking Statements

This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release

Contact Information

  • Enterprise Oilfield Group, Inc.
    Leonard D. Jaroszuk
    President & CEO
    780-418-4400 or Toll Free: 888-303-3361
    780-418-1941 (FAX)

    Enterprise Oilfield Group, Inc.
    Desmond O'Kell
    Vice President, Corp. Development
    780-418-4400 or Toll Free: 888-303-3361
    780-418-1941 (FAX)
    contact@EnterpriseOil.ca
    www.EnterpriseOil.ca