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Thursday, June 14, 2018

@EnterpriseGrp (TSX: $E.TO) Enterprise Group #Acquisition Strategy

@EnterpriseGrp  (TSX: $E.TO) Enterprise Group #Acquisition Strategy













June 14, 2018 (Investorideas.com Newswire) Energy and infrastructure commentary on Enterprise Group, Inc. (TSX: E)

Read this in full at http://www.investorideas.com/CO/TSXE/news/2018/06141AcquisitionStrategy.asp

If one had purchased shares in Enterprise Group (E: TSX) on or prior to the first stock market trading day in 2018 (as you have/had been told multiple times for months), you would have beaten virtually every global index. The price has more than doubled YTD 2018. Think not? Morningstar agrees. Interesting to note also that YTD, not one of the Global ETF's at Morningstar in the Infrastructure sector has shown any positive return.

How Come? Management.
YTD, Enterprise management retired all remaining corporate debt, focused on the fast-growing industrial resource rental equipment market and has $40 million in bank lines for accretive acquisitions. With a share price under C$0.60, which as noted has doubled year to date, growth potential appears stable as the book value recently rose from C$0.85 to C$1.01.

Given the many savvy management moves made year to date, the current Enterprise share price could represent the harbinger to significant future growth.

“As we move through 2018-19, Enterprise’s three successful subsidiaries constitute even more of a role in our growth,” stated Desmond O’Kell, SVP of Enterprise. “Reviewing potential acquisitions, we have a solid mandate to integrate any additions to our structure to provide an immediate benefit to shareholders. Our acquisition and sale history (below) has been both strategic and extremely profitable. Management looks forward to taking the Enterprise Group  to the next level. And beyond.”

TC Backhoe was sold in 2016 for approximately C$20 million. The Company was purchased in 2007 for C$12 million and generated $150 million.

Calgary Tunnelling acquired in June 2013 for $12.0 million generated approximately $60 million in profitable revenue to Enterprise. Gross proceeds of the 2018 sales transaction were $20.6 million.

The last four years are the culmination of two cycles. First, it heralds that the Company is ready and capable of exceptional growth as it enters this new phase with a clean balance sheet. Second, it proves that the planning, execution as well as pain and suffering experience since June 2014 has been extremely constructive.

Renting with Hart
If one is building a mining or oil business Hartoil rents customized equipment for project sites, drilling & completions and facilities that require mobile infrastructure. 

Hart currently has 6 locations are strategically located throughout west central and northern Alberta and northeastern British Columbia. These 6 locations have allowed Hart to establish six complementary "service circles" that slightly overlap and enable Hart to deliver oilfield site set-up services and equipment rentals efficiently to its customers. Plus, the ability to respond quickly to requests for service or repairs to its equipment.

“ Our large competitive advantage is the ability to what we refer to as ‘combo technology’," states Joel Bardwell, Senior Manager at Hart. "Whether on a skid or one of our exclusive portable trailers, we can deliver not only the equipment required but customize it to be the most cost-effective. Hart and by extension Enterprise, have developed a reputation as a ‘one-stop shop,' which puts the exceptional quality of equipment and service against those looking to save a slight bit of cost."

As commodities rise, there is a commensurate rise in both business and incoming inquiries for services like Hart. Like the other subs, Hart gained props for working with clients in pricing and advice during the downturn. Hence, they are seeing old clients returning and new clients coming on board.

When asked what types of acquisitions he’d like to see, Bardwell stated that they be complementary and further add to Hart et al. 's vast and diverse equipment base.

ArticTherm: Heat without Fire.
Flameless heat seems a contradiction, but it has been an excellent business for ArticTherm and parent Enterprise.  Artic Therm provides an efficient Flameless Heat and Green Air technology for multiple applications utilizing some or all of its 150-portable units at remote locations to deal with extreme climate challenges. All pipeline to be buried must be dry and covered with a special coating to ensure against corrosion. The trick, particularly in -30 Celsius degree temps, is to dry out and repair dings in the surface, known as ‘jeeps.'


Bill Roddick, Project Manager for Arctic Therm, has seen more than a 50 percent increase in incoming inquiries for both rentals and project work. The latter is for large pipeline deals where the heating may take several weeks and must have a corporate operator to utilize the specialized equipment for a myriad of reasons, including; repair, pre-expansion or drying.

A growing trend is for large oil and gas companies to bury four pipelines (lines) in one trench. Previously several trenches were needed and as a result were way less cost-effective. Roddick is also constructive about the Enterprise’s STAR software development and believes customers will embrace the efficiency it brings as equipment can be tracked precisely in real time.

Solid plans can be made as material comes off one job and on to another. If one of any asset equipped with the STAR technology needs attention while out in the field, there is a good chance the originating company will know and could deal with it before the customer even knows there is an issue.

Trust in Westar
Westar Oil Field Rentals General Manager George Bergen is all about customer service. Mid 2017-mid 2018 was a good year. Westar is a highly-regarded full-service oilfield site and infrastructure company that fulfills multiple equipment rental needs for a variety of Oil & Gas customers, and it is currently operating a large fleet (400) of unique and specialized equipment.

Westar has innovated many solutions and tailored its equipment and service around the specific needs and requirements of their blue-chip client base. Westar is an employee and safety driven organization, encouraging personal growth and a team-building atmosphere.

Bergen is expecting another strong year as Trans Canada Pipeline is engaged in several large projects. The 1000-pound (or 453.59237k) gorilla for the entire industry is the Q3 2018 announcement of the commencement of Shell’s LNG plant. The industry is optimistic the project will go ahead.

Westar regularly secures contracts from large and small clients. Due to its reputation and business practices the Company may well not be the lowest bid.

The following consolidated chart shows that growth is strong, and profitability has been in place for the last three quarters. The Company has been cash flow positive every quarter since the downturn began in 2015.


Enterprise management has a straightforward acquisition strategy; buy excellent and synergistic companies with excellent management and give them the ability to grow. Management is all on the same page and would like to see accretive, complementary acquisitions to expand the group and continue to grow shareholder value.

Enterprise and its subsidiaries are the solid indicators that consistent and savvy win the race. And will likely continue.

So far, so good.






For questions or additional information, please contact:
Leonard Jaroszuk: President & CEO or
Desmond O'Kell: Senior Vice - President
contact@enterprisegrp.ca
780-418-4400

Article source – Baystreet.ca

Disclaimer/disclosure- This third party news/article is published on the Investorideas.com Newswire – News that Inspires big ideas Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp

Disclosure this news article is a paid for news release on the Investorideas.com newswire by Enterprise Group, Inc. (TSX: E) and was not created or originated by Investorideas. Learn more about costs and our newswire service http://www.investorideas.com/News-Upload/  Enterprise Group, Inc. (TSX: E) is a previous featured monthly company on Investorideas expiring on May 1 2018 .More info http://www.investorideas.com/About/News/Clientspecifics.asp

Please read Investorideas.com privacy policy: http://www.investorideas.com/About/Private_Policy.asp

Wednesday, June 13, 2018

#Energy and #Infrastructure Stock (TSX: $E.TO) Enterprise Group Doubled YTD; Hunting for Accretive Acquisitions




#Energy and #Infrastructure Stock (TSX: $E.TO) Enterprise Group Doubled YTD; Hunting for Accretive Acquisitions


June 13, 2018 - (Investorideas.com Newswire) The following article/commentary is released on Enterprise Group, Inc. (TSX: E)

Read this news in full at http://www.investorideas.com/CO/TSXE/news/2018/06131Acquisitions.asp


If one had purchased shares in  Enterprise Group (E: TSX) on or prior to the first stock market trading day in 2018 (as you have/had been told multiple times for months), you would have beaten virtually every global index. The price has more than doubled YTD 2018. Think not? Morningstar agrees. Interesting to note also that YTD, not one of the Global ETF’s at Morningstar in the Infrastructure sector has shown any positive return.


How Come? Management.
YTD, Enterprise management retired all remaining corporate debt, focused on the fast-growing industrial resource rental equipment market and has $40 million in bank lines for accretive acquisitions. With a share price under C$0.60, which as noted has doubled year to date, growth potential appears stable as the book value recently rose from C$0.85 to C$1.01.

Given the many savvy management moves made year to date, the current Enterprise share price could represent the harbinger to significant future growth.

“As we move through 2018-19, Enterprise’s three successful subsidiaries constitute even more of a role in our growth,” stated Desmond O’Kell, SVP of Enterprise. “Reviewing potential acquisitions, we have a solid mandate to integrate any additions to our structure to provide an immediate benefit to shareholders. Our acquisition and sale history (below) has been both strategic and extremely profitable. Management looks forward to taking the Enterprise Group  to the next level. And beyond.”

TC Backhoe was sold in 2016 for approximately C$20 million. The Company was purchased in 2007 for C$12 million and generated $150 million.

Calgary Tunnelling acquired in June 2013 for $12.0 million generated approximately $60 million in profitable revenue to Enterprise. Gross proceeds of the 2018 sales transaction were $20.6 million.

The last four years are the culmination of two cycles. First, it heralds that the Company is ready and capable of exceptional growth as it enters this new phase with a clean balance sheet. Second, it proves that the planning, execution as well as pain and suffering experience since June 2014 has been extremely constructive.

Renting with Hart
If one is building a mining or oil business Hartoil rents customized equipment for project sites, drilling & completions and facilities that require mobile infrastructure. 

Hart currently has 6 locations are strategically located throughout west central and northern Alberta and northeastern British Columbia. These 6 locations have allowed Hart to establish six complementary "service circles" that slightly overlap and enable Hart to deliver oilfield site set-up services and equipment rentals efficiently to its customers. Plus, the ability to respond quickly to requests for service or repairs to its equipment.

“ Our large competitive advantage is the ability to what we refer to as ‘combo technology’," states Joel Bardwell, Senior Manager at Hart. "Whether on a skid or one of our exclusive portable trailers, we can deliver not only the equipment required but customize it to be the most cost-effective. Hart and by extension Enterprise, have developed a reputation as a ‘one-stop shop,' which puts the exceptional quality of equipment and service against those looking to save a slight bit of cost."

As commodities rise, there is a commensurate rise in both business and incoming inquiries for services like Hart. Like the other subs, Hart gained props for working with clients in pricing and advice during the downturn. Hence, they are seeing old clients returning and new clients coming on board.

When asked what types of acquisitions he’d like to see, Bardwell stated that they be complementary and further add to Hart et al. 's vast and diverse equipment base.

ArticTherm: Heat without Fire.
Flameless heat seems a contradiction, but it has been an excellent business for ArticTherm and parent Enterprise.  Artic Therm provides an efficient Flameless Heat and Green Air technology for multiple applications utilizing some or all of its 150-portable units at remote locations to deal with extreme climate challenges. All pipeline to be buried must be dry and covered with a special coating to ensure against corrosion. The trick, particularly in -30 Celsius degree temps, is to dry out and repair dings in the surface, known as ‘jeeps.'


Bill Roddick, Project Manager for Arctic Therm, has seen more than a 50 percent increase in incoming inquiries for both rentals and project work. The latter is for large pipeline deals where the heating may take several weeks and must have a corporate operator to utilize the specialized equipment for a myriad of reasons, including; repair, pre-expansion or drying.

A growing trend is for large oil and gas companies to bury four pipelines (lines) in one trench. Previously several trenches were needed and as a result were way less cost-effective. Roddick is also constructive about the Enterprise’s STAR software development and believes customers will embrace the efficiency it brings as equipment can be tracked precisely in real time.

Solid plans can be made as material comes off one job and on to another. If one of any asset equipped with the STAR technology needs attention while out in the field, there is a good chance the originating company will know and could deal with it before the customer even knows there is an issue.

Trust in Westar
Westar Oil Field Rentals General Manager George Bergen is all about customer service. Mid 2017-mid 2018 was a good year. Westar is a highly-regarded full-service oilfield site and infrastructure company that fulfills multiple equipment rental needs for a variety of Oil & Gas customers, and it is currently operating a large fleet (400) of unique and specialized equipment.

Westar has innovated many solutions and tailored its equipment and service around the specific needs and requirements of their blue-chip client base. Westar is an employee and safety driven organization, encouraging personal growth and a team-building atmosphere.

Bergen is expecting another strong year as Trans Canada Pipeline is engaged in several large projects. The 1000-pound (or 453.59237k) gorilla for the entire industry is the Q3 2018 announcement of the commencement of Shell’s LNG plant. The industry is optimistic the project will go ahead.

Westar regularly secures contracts from large and small clients. Due to its reputation and business practices the Company may well not be the lowest bid.

The following consolidated chart shows that growth is strong, and profitability has been in place for the last three quarters. The Company has been cash flow positive every quarter since the downturn began in 2015.



Enterprise management has a straightforward acquisition strategy; buy excellent and synergistic companies with excellent management and give them the ability to grow. Management is all on the same page and would like to see accretive, complementary acquisitions to expand the group and continue to grow shareholder value.

Enterprise and its subsidiaries are the solid indicators that consistent and savvy win the race. And will likely continue.

So far, so good.






For questions or additional information, please contact:
Leonard Jaroszuk: President & CEO or
Desmond O'Kell: Senior Vice - President
contact@enterprisegrp.ca
780-418-4400

Article source – Baystreet.ca

Disclaimer/disclosure- This third party news/article is published on the Investorideas.com Newswire – News that Inspires big ideas Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp

Disclosure this news article is a paid for news release on the Investorideas.com newswire by Enterprise Group, Inc. (TSX: E) and was not created or originated by Investorideas. Learn more about costs and our newswire service http://www.investorideas.com/News-Upload/  Enterprise Group, Inc. (TSX: E) is a previous featured monthly company on Investorideas expiring on May 1 2018 .More info http://www.investorideas.com/About/News/Clientspecifics.asp

Please read Investorideas.com privacy policy: http://www.investorideas.com/About/Private_Policy.asp











Thursday, May 31, 2018

STARCHAIN , being developed exclusively by Enterprise Group (TSX: $E.TO ) is the only product that will track, diagnose, and effect meaningful costs savings in the #resource industry


STARCHAIN , being developed exclusively by Enterprise Group (TSX: $E.TO ) is the only product that will track, diagnose, and effect meaningful costs savings in the #resource industry

 


May 31, 2018 (Investorideas.com Newswire) Commentary on Enterprise Group (TSX:E)- A 10 inch by 10 inch by 4-inch electronic module dubbed STARCHAIN is to GPS what a CGI movie is to tintype.
STARCHAIN is being developed exclusively by Enterprise Group (TSX:E) and falls squarely into the IoT service genre. While there are similar products in other sectors, STARCHAIN is the only product that will track, diagnose, and effect meaningful costs savings in the resource industry for Enterprise and its lease/rental customers. As well it will provide much useful data back to STARCHAIN allowing it the ability to scale up continuously.   
Particularly for Enterprise, which rents or leases 100's of pieces of expensive industrial equipment to far-flung areas and  winters that are almost otherworldly, weatherproof the units. STARCHAIN modules replace simple GPS units in two ways: First, it negates the monthly cost of each GPS unit saving thousands of dollars. Second, data access, unlike a straight GPS unit, provides unlimited data critical to its R&D.



Eventually STARCHAIN will evolve into a neural network to impact the most cost-effective client equipment decisions.
“While some might be satisfied with STARCHAIN in its current form, we see it as a base platform for future development utilizing collected data,” stated Desmond O’Kell SVP of Enterprise. “If a piece of equipment fails or experiences a mechanical deficiency on a remote project site, STARCHAIN alerts Enterprise and the fleet manager immediately so that a repair can be effected, or a replacement can be deployed, which in turn raises revenues, efficiency and asset life.”
The STARCHAIN ‘plug and play’ modules also include an accelerometer which can measure movement from the smallest vibration to a catastrophic failure. A real-world example in a moment. Equipment is built with an obsolence factor. Therefore, when a company rents heavy equipment to a myriad of users and weather conditions, it is not just smart business but critical to ensuring the maximum asset life for revenue generation. Followed of course by the ultimate sale at a premium price.


Asset Control = More Revenue, Longer Life
Enterprise has more than 200 industrial light towers that it rents to customers. Currently, once it leaves the yard, the Company has only a 3rd party GPS tracker on it. The onus is on the client to report any issues. In the past maybe 1, 2 or 3 lights would fail before they would indicate. With STARCHAIN, Enterprise will know when the first bulb blows and can send a repair. It can also check the other bulbs and help ensure they aren’t at their lives end. The customer is happy, revenue increases due to the repair and the light tower (and lamps) are kept in good long-term re-rentable condition.
As well, the module can STARCHAIN schedule on/off times, brightness, number of bulbs on to ensure cost-effectiveness, and again, produce less stress on the asset. Extrapolate that technology onto trucks, dozers, drilling equipment, and the benefits are many and profound; primarily asset life, increasing revenue and margin increases.
Putting a value on STARCHAIN is difficult. While it is included in Enterprise’s total asset value of just over $1.00 a share (shares trading at $0.57), it is a minor balance sheet contributor. STARCHAIN will be a growth entity on its own as it evolves as well as giving Enterprise a continuous and humongous competitive advantage.
Enterprise's technology development group is currently performing infield testing with success. Management expects to offer its customers specialized equipment capable of several remote controllable features in Q3-Q4 of 2018.
Oh yes, There's Lots More.





From CNN:
The downward pressure on oil continued on Monday (May 28/18) as traders considered data showing a jump in the number of US oil rigs, indicating potential growth in US production. US crude production has increased by about 25% since mid-2016 as producers look to capitalize on rising prices. Oilfield services firm Baker Hughes (BHGE: NYSE) released data on Friday showing the rig count in North America hit its highest level of the year last week. The current global rig count now stands above the average set in 2017.
In 2014-15, the oil price collapsed, and Enterprise got nailed hard but pretty much as collateral damage. Through savvy and bold decision taking, the Company remained cashflow positive throughout the decline and returned to profitably last year.
While many companies were simply worried about survival following the downturn, Enterprise paid down $54 million of debt, streamlined operations and came out of the debacle stronger and debt-free.
Bottom Line




As oil climbs (and yes, it will remain volatile) investors can participate in a company that is so much more than when it traded at $3.50 pre-decline. The Enterprise share price has doubled YTD. With the STARCHAIN tech development Enterprise could well morph into the industrial and perhaps national industrial rental firm of choice. The proprietary technology is already moving toward becoming a leader in the fields of logistics, deployment efficiency and even AI in the resource and infrastructure realm.
Also, there are the further investor enticements such as no debt, a significant acquisition chest, lean corporate structure and aggressive and effective management.
Also, it is TSX listed.
So, you are waiting for for...?
For questions or additional information, please contact:
Leonard Jaroszuk: President & CEO or
Desmond O'Kell: Senior Vice - President
contact@enterprisegrp.ca
780-418-4400
Article source – Baystreet.ca
Disclaimer/disclosure- This third party news/article is published on the Investorideas.com Newswire - News that Inspires big ideas Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp
Disclosure this news article is a paid for news release on the Investorideas.com newswire by Enterprise Group, Inc. (TSX: E) and was not created or originated by Investorideas. Learn more about costs and our newswire service http://www.investorideas.com/News-Upload/Enterprise Group, Inc. (TSX: E) is a previous featured monthly company on Investorideas expiring on May 1 2018. More info http://www.investorideas.com/About/News/Clientspecifics.asp
Please read Investorideas.com privacy policy: http://www.investorideas.com/About/Private_Policy.asp



Wednesday, May 30, 2018

Enterprise Group (TSX: $E.TO): The Leader in Industrial Leasing. Next, Technology


 Enterprise Group (TSX: $E.TO): The Leader in Industrial Leasing. Next, Technology




May 30, 2018 (Investorideas.com Newswire) The following commentary on Enterprise Group (TSX:E) is released today.
A 10 inch by 10 inches by 4-inch electronic module dubbed STARCHAIN is to GPS what a CGI movie is to tintype.
STARCHAIN (TSX:E) and falls squarely into the IoT service genre. While there are similar products in other sectors, STARCHAIN is the only product that will track, diagnose, and effect meaningful costs savings in the resource industry for Enterprise and its lease/rental customers. As well as it will provide useful data back to STARCHAIN allowing it the ability to scale up continuously.
Particularly for Enterprise, which rents or leases 100's of pieces of expensive industrial equipment to far-flung areas and winters that are almost otherworldly, weatherproof the units. STARCHAIN modules replace simple GPS units in two ways: First, it negates the monthly cost of each GPS unit saving thousands of dollars. Second, data access, unlike a straight GPS unit, provides unlimited data critical to its R&D.


Eventually STARCHAIN will evolve into a neural network to impact the most cost-effective client equipment decisions.
“While some might be satisfied with STARCHAIN in its current form, we see it as a base platform for future development utilizing collected data,” stated Desmond O’Kell SVP of Enterprise. “If a piece of equipment fails or experiences a mechanical deficiency on a remote project site, STARCHAIN alerts Enterprise and the fleet manager immediately so that a repair can be effected, or a replacement can be deployed, which in turn raises revenues, efficiency and asset life.”
The STARCHAIN ‘plug and play’ modules also include an accelerometer which can measure movement from the smallest vibration to a catastrophic failure. A real-world example in a moment. Equipment is built with an obsolence factor. Therefore, when a company rents heavy equipment to a myriad of users and weather conditions, it is not just smart business but critical to ensuring the maximum asset life for revenue generation. Followed of course by the ultimate sale at a premium price.


Asset Control = More Revenue, Longer Life
Enterprise has more than 200 industrial light towers that it rents to customers. Currently, once it leaves the yard, the Company has only a 3rd party GPS tracker on it. The onus is on the client to report any issues. In the past maybe 1, 2 or 3 lights would fail before they would indicate. With STARCHAIN, Enterprise will know when the first bulb blows and can send a repair. It can also check the other bulbs and help ensure they aren’t at their lives end. The customer is happy, revenue increases due to the repair and the light tower (and lamps) are kept in good long-term re-rentable condition.
As well, the module can STARCHAIN schedule on/off times, brightness, number of bulbs on to ensure cost-effectiveness, and again, produce less stress on the asset. Extrapolate that technology onto trucks, dozers, drilling equipment, and the benefits are many and profound; primarily asset life, increasing revenue and margin increases.
Putting a value on STARCHAIN is difficult. While it is included in Enterprise’s total asset value of just over $1.00 a share (shares trading at $0.57), it is a minor balance sheet contributor. STARCHAIN will be a growth entity on its own as it evolves as well as giving Enterprise a continuous and humongous competitive advantage.
Enterprise's technology development group is currently performing infield testing with success. Management expects to offer its customers specialized equipment capable of several remote controllable features in Q3-Q4 of 2018.
Oh yes, There's Lots More.





From CNN:
The downward pressure on oil continued on Monday (May 28/18) as traders considered data showing a jump in the number of US oil rigs, indicating potential growth in US production. US crude production has increased by about 25% since mid-2016 as producers look to capitalize on rising prices. Oilfield services firm Baker Hughes (BHGE: NYSE) released data on Friday showing the rig count in North America hit its highest level of the year last week. The current global rig count now stands above the average set in 2017.
In 2014-15, the oil price collapsed, and Enterprise got nailed hard but pretty much as collateral damage. Through savvy and bold decision taking, the Company remained cashflow positive throughout the decline and returned to profitably last year.
While many companies were simply worried about survival following the downturn, Enterprise paid down $54 million of debt, streamlined operations and came out of the debacle stronger and debt-free.
Bottom Line




As oil climbs (and yes, it will remain volatile) investors can participate in a company that is so much more than when it traded at $3.50 pre-decline. The Enterprise share price has doubled YTD. With the STARCHAIN tech development Enterprise could well morph into the industrial and perhaps national industrial rental firm of choice. The proprietary technology is already moving toward becoming a leader in the fields of logistics, deployment efficiency and even AI in the resource and infrastructure realm.
Also, there are the further investor enticements such as no debt, a significant acquisition chest, lean corporate structure and aggressive and effective management.
Also, it is TSX listed.
So, you are waiting for for...?
For questions or additional information, please contact:
Leonard Jaroszuk: President & CEO or
Desmond O'Kell: Senior Vice - President
contact@enterprisegrp.ca
780-418-4400
Article source – Baystreet.ca
Disclaimer/disclosure- This third party news/article is published on the Investorideas.com Newswire - News that Inspires big ideas Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp
Disclosure this news article is a paid for news release on the Investorideas.com newswire by Enterprise Group, Inc. (TSX: E) and was not created or originated by Investorideas. Learn more about costs and our newswire service http://www.investorideas.com/News-Upload/Enterprise Group, Inc. (TSX: E) is a previous featured monthly company on Investorideas expiring on May 1 2018. More info http://www.investorideas.com/About/News/Clientspecifics.asp
Please read Investorideas.com privacy policy: http://www.investorideas.com/About/Private_Policy.asp


Wednesday, May 16, 2018

Earnings Alert for #Energy and #Infrastructure Stock Enterprise Group (TSX: $E.TO) @EnterpriseGrp; Q1/2018 eps $0.06 vs. Q1/2017 eps ($0.02)


Earnings Alert for #Energy and #Infrastructure Stock Enterprise Group (TSX: $E.TO) @EnterpriseGrp; Q1/2018 eps $0.06 vs. Q1/2017 eps ($0.02)



May 16, 2018 (Investorideas.com Newswire) Earnings commentary - Enterprise Group (TSX:E) has experienced almost four years of share price consolidation, following the vicious 2014 resource sector decline. The Company is now stronger and leaner than pre-2014, and management’s aggressive initiatives have seen the stock price rise to new 52-week highs. The Company remained cashflow positive throughout and profitable Q3, Q4 2015 and Q1 2018.






Background Facts:

·        Book Value $1.01
·        Current share price $0.55
·        No debt
·        NCIB of 5% of E stock ongoing.
·        $40 million in bank lines available for funding acquisitions
·        Q1 2018 eps $0.06 vs. Q1 2017 eps ($0.02)
·        Net income Q1 2018 $3.2 million versus Q1 2017 ($50,627)
·        Q1 2018 Revenues down 3% from Q1 2017
·        Development of proprietary ‘Star’ inventory tracking software system will cut costs and significantly enhance revenues.





One-quarter of profits can be a fluke; two, lucky but three a reasonable trend. For Enterprise, it is the result of planning and execution. From the depths of the resource malaise, the shares are now debt free, cash flow positive and profitable. Not to mention on the acquisition trail with $55 million of cash. 

Management has positioned the Company to be the premier resource for industrial equipment rental; initially in the West, ultimately North America and possibly further afield.

Just as the shares received an unfair shellacking as the oil price fell, there seems to be a renaissance afoot that sees oil, currently $70 plus, hitting $100 by 2019. Not that would drive the shares back to their all-time high of $3.50 in 2014, but one has to figure there is excellent potential to regain a good chunk of that decline should oil, and the sector continues to improve.

Given the initiatives put in place and arguably to come, the price may also benefit from proper, old fashion management.

Yes, management is still a thing.


Consolidated:

Three months ended
March 31, 2018
Three months ended March 31, 2017, restated (2)


Change
Revenue
$6,810,906
$7,015,278
($204,372)
Gross margin
$2,126,160
$2,695,739
($569,579)
Gross margin %
31%
38%
(7%)
EBITDA (1)
$1,487,253
$1,835,990
($348,737)
Income before tax
$290,616
$210,495
$80,121
Net income (loss) and comprehensive income (loss)
$3,190,242
($50,627)
$3,240,869
EPS
$0.06
$0.00
$0.06


Revenues Down 3%? Should investors Care?

“In the first quarter of 2018 no construction work was completed on a major construction project in Northeastern B.C,” states Desmond O’Kell, SVP of Enterprise. “Otherwise the Company continues to see increased activity.  The increased activity experienced by other customers did not fully offset the loss of revenue earned in the first quarter of 2017 associated with that project resulting in a slight decrease in revenues for the quarter. At March 31, 2018, after adjusting for goodwill and deferred taxes, the Company has assets more than total debt of approximately $54,000,000.  Enterprise will continue to look for and secure opportunities that improve its financial position and opportunities that will allow the Company to diversify and expand.”

Management owns 21 percent of the outstanding shares.

StarChain

While maximizing revenues and reducing costs is often espoused by the management of most companies, Enterprise has developed StarChain technology, proprietary software, and attendant hardware. Modules will be attached to each piece of rental equipment.

Simply put, Star technology enables its customers to automate and schedule the utilization of the equipment which delivering several benefits that include reduced fuel expenses, lowering onsite maintenance costs and real-time reporting. Several features will be available to the customer in Q3, Q4 2018.

The Company has a history of developing solutions for its customer and has fifteen plus patents in its IP portfolio.

One of the initial cost savings is several thousand dollars a month the technology gains by rendering individual GPS. Other benefits are utilizing the SaaS tech as a base platform for future applications, improves margins and of course maximizes revenues.

Not to mention the incredible competitive advantage afforded Enterprise as it has no plans to sell or license StarChain at this juncture. There appears to be no competitive software.

So, What Now?

As business continues to build, Enterprise has been able to raise its pricing in line with demand. One of the first things it did when the sector imploded was to reduce costs to remain competitive. It also became a resource to customers and prospects to ensure not just its viability but that of its customers. That practice has served the Company well as the business builds.

Enterprise also recently sold its infrastructure subsidiary Calgary Tunneling (CTHA), to focus on the industrial rental business that brings its subsidiaries’ strength to the fore and provides a stable base for growth. The last four years meet as the culmination of two cycles. First, it heralds that the Company is ready and capable of exceptional growth as it enters this new phase with a clean balance sheet. Second, it proves that the planning, execution as well as pain and suffering since June 2014 has been constructive.

There are many acquisition targets currently being evaluated by the Company. Each will be acquired with not only growth in mind but immediately accretive and strongly complement its existing subsidiaries.
 YTD 2018 Enterprise Group (E: TSX)



For questions or additional information, please contact:
Leonard Jaroszuk: President & CEO or
Desmond O'Kell: Senior Vice - President
780-418-4400

Article source – Baystreet.ca

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