Alberta based Enterprise Group, Inc. (TSX: E), a consolidator of services to the energy sector focused primarily on construction services and specialized equipment rental, today announced that Chris Temple, Editor of US-based subscription newsletter, The National Investor has released a comprehensive report on the Company.
The report succinctly recounts Enterprise’s history in the context of the challenging Western Canadian resource market: seeing oil drop from $100 a barrel in 2014 to under $30 and currently $47.
Mr. Temple states, “Together with the stabilization in energy prices helping out the energy industry, the better environment is giving an early boost to federal and provincial spending on infrastructure. Enterprise SVP Des O'Kell recently told me, in fact, that the January-February time frame this year (2017) has seen Enterprise's infrastructure folks booked to near-full capacity.”
The National Investor report should be read in conjunction with Enterprise’s recent Letter to Shareholders.
Salient investment points advanced by Mr. Temple:
- Trading at a market price of C$0.32, shares are trading at 40% of book value of C$0.82
- Historically normal share prices tend to be 2-3 times book value
- Substantial increase in business not yet reflected in share price
- Management has significantly increased (by 275%) its ownership stake from 6.7% in 2014 to 18.4% currently
- Buy recommendation based on improving metrics as well as management’s ownership incentiveSignificant dollars are being allocated by government for needed and/or overdue work of various kinds.
For Q4 ending December 31, 2016, Enterprise saw a 20 percent increase in revenue to C$8.3 million from C$6.9 million for the same period 2016. Gross profit margin rose to 29% from 5% in Q4 2015.
As well, the Company also reported positive EBITDA of C$1.8 million for Q4 2016 versus (C$120,950) 2015. For the same period, EBITDA rose to 22% from negative 2% in Q4 2015.
While it has been an extremely challenging period for resource companies in Western Canada, Enterprise has demonstrated its confidence and ability to analogously 'weather the storm' strongly while many competitors and clients are either financially impaired or gone.
In conclusion, Mr. Temple states: And Enterprise Group--trading at much less than half its book value--is among my selected recommendations of growth-oriented companies because of my view that it represents one of the most incredible bargains you can find.”
About Enterprise Group
Enterprise Group, Inc. is a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries. The Company's focus is primarily construction services and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management, and human resources to support continued growth.
More information is available at the Company's website www.enterprisegrp.ca. Corporate filings can be found on www.sedar.com
For questions or additional information, please contact:
Leonard Jaroszuk: President & CEO
Desmond O'Kell: Senior Vice-President
[email protected]
780-418-4400
Forward Looking Information
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether because of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
ADDTIONAL INFORMATION/DISCLOSURE CONCERNING THIS SPECIAL REPORT: Enterprise Group, Inc. was previously, prior to the preparation of this report, a recommended stock by the Editor in The National Investor. Neither this publication nor its Editor/Publisher, Chris Temple, has thus been paid to make this recommendation; one that has previously been issued to the paid Members/Subscribers of The National Investor. Enterprise, in anticipation of an opportunity to gain greater market awareness, has decided to co-finance The National Investor in a marketing campaign wherein this publication will make this specific report and others on market trends, investment strategy and others available via various means to individual investors. Enterprise has of the date of this report made a one-time payment to National Investor Publishing of US$5,000.00 for the preparation of this expanded, updated special report on the company, additional exposure on The National Investor web site in a publicly-accessible "Featured Opportunities" page, pro-active distribution of the report to investors and for the procurement of and placement in on-line media, web portals and similar sites.
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