ENTERPRISE GROUP (TSX: $E) RESULTS FOR FOURTH QUARTER AND FULL YEAR 2016

ENTERPRISE GROUP (TSX: $E) RESULTS FOR FOURTH QUARTER AND FULL YEAR 2016

For Q4 ending December 31, 201, 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

ST. ALBERT, ALBERTA--(Mar 21, 2017) – (Investorideas.com Newswire) Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX: E), a consolidator of services to the energy sector; focused primarily on construction services and specialized equipment rental, today released its Q4 2016 and FY2016 results.

Consolidated:	Three months December 31, 2016	Three months December 31, 2015 restated(3)(4)	Year ended December 31, 2016	Year ended December 31, 2015 restated(3)(4)	Change year over year
Revenue	$8,326,646	$6,928,381	$28,723,585	$39,754,739	($11,031,154)
Gross margin	$2,415,477	$312,879	$6,828,782	$9,076,938	($2,248,156)
Gross margin %	29%	5%	24%	23%	1%
EBITDA(1)	$1,827,760	($120,950)	$3,851,894	$5,500,260	($1,648,366)
Loss before tax (2)	($8,311,697)	($19,466,008)	($15,553,151)	($23,250,495)	$7,697,344
Net loss from continuing operations (2)	($8,047,925)	($17,252,047)	($12,922,496)	($19,906,559)	$6,984,063
Loss from discontinued operations (3)(4)	($1,872,539)	($1,312,265)	($242,544)	($400,592)	$158,048
Net loss and comprehensive loss (2)	($9,920,464)	($18,408,292)	($13,165,040)	($20,307,151)	$7,142,111
EPS	($0.18)	($0.35)	($0.24)	($0.40)	$0.16
Total assets	$84,600,493	$119,217,868	$84,600,493	$119,217,868	($34,617,375)
(1) Identified and defined under "Non-IFRS Measures".
(2) Includes a non-recurring and non-cash impairment charge of $8,436,911 (2015 - $16,558,240) relating to property, plant and equipment, intangible assets and goodwill.
(3) In July 2016, the Company closed a transaction to divest substantially all the assets of TCB. The net operations of TCB, including the prior period, are presented as a single amount in the consolidated statements of loss and comprehensive loss.
(4) In December 2016, the Company decided to cease all operations relating to single pass tunneling. The net operations of this line of business, including the prior period, are presented as a single amount in the consolidated statements of loss and comprehensive loss.

For Q4 ending December 31, 201, 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 is pleased to report 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.

"Enterprise management is extremely encouraged by our latest results," stated Leonard D. Jaroszuk, CEO, President and Chairman. "From negative cash flow in Q4 2015, management efforts raised that number to positive C$0.07 per share. As well, we secured amended loan agreements to reduce our interest rate along with more favourable covenants. Equally impressive is that the Company retired debt of C$18.3 million through the funds (C$19.8 million) received from the transaction to divest substantially all the assets of TC Backhoe & Directional Drilling Ltd (TCB)."

The acquisition of TCB in 2007 for $12 million was immediately accretive. During our 9.5 years of ownership, TC generated roughly 13-fold ($154 million) the purchase price in revenues and extended our reputation as the premier and frankly the only 'One Stop Source' for virtually every critical resource construction service.

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 altogether.

Enterprise has turned in significant gross margin and EBITDA improvements evidenced in the fourth quarter which is the result of determined leadership. Management's continued efforts to streamline and maximize efficiencies are now firmly in place and delivering meaningful margin ratios while still navigating a challenging landscape.

The improvements to profits and the rapid return to significant cashflow should give investors' and shareholders confidence for the future. Certainly, all is still challenging in Western Canada, but today's results show a significant improvement in both business and the overall environment.

Enterprises' clients include some of Canada's largest energy producers, utility service providers and the federal and provincial governments of Canada. The Company employs management highly experienced in large infrastructure projects.

Given the noted limited visibility for 2017 activity and pricing levels, Enterprise will maintain a conservative approach towards Capital Spending while looking at fleet management and opportunistic asset dispositions. This approach will allow management to both maintain critical financial flexibility, allow for strategic, accretive acquisitions and continue to build compelling shareholder value.

Read this release in full at http://www.investorideas.com/news/2017/energy/03211E.asp

About Enterprise Group, Inc.

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

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 as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Non-IFRS Measures
The Company uses International Financial Reporting Standards ("IFRS"). EBITDAS is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-IFRS measure. This news release contains references to EBITDAS. This non-IFRS measure used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, EBITDAS is a useful supplemental measure as it provides an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed or how the results are taxed. EBITDAS is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.

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