E Enterprise Group Inc

Enterprise Group, Inc. (“Enterprise,” or “the Company”) (TSX:E) is pleased to announce its financial results for the three month period ended September 30, 2017 (the “third quarter”).

Consolidated:	Three months September 30,2017				Three months September 30,2016 restated (2)(3)			Nine months September 30,2017			Nine months September 30,2016 restated (2)(3)
Revenue	$11,039,666				$6,551,285			$26,989,358			$20,396,939
Gross margin	$3,184,050				$1,507,420			$6,653,631			$4,542,340
Gross margin %	29%				23%			25%			22%
EBITDA(1)	$2,605,947				$796,499			$4,473,939			$2,241,134
Net income (loss) and comprehensive income (loss)	$328,933				$581,816			$(1,308,998)			$(3,244,576)
EPS	$0.01				$0.01			$(0.02)			$(0.06)

1. Identified and defined under “Non-IFRS Measures”.
2. 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.
3. 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.

• Revenue for the three months ended September 30, 2017, of $11,039,666 increased by $4,488,381 or 69% compared to the prior period. The increase was partially from more activity in Northeastern B.C. as well as additional infrastructure projects in Western Canada. The increase in gross margin and EBITDA for the three months ended September 30, 2017, is consistent with increased activity over the comparative period. Revenue for the nine months ended September 30, 2017, of $26,989,358 increased by $6,592,419 or 32% compared to the prior period. The increase was primarily from more customer activity. Enterprise continues to take numerous measures to diversify its customer base and reduce the Company’s cost structure while maintaining service levels to retain customers. Gross margin for the nine months ended September 30, 2017, increased to 29%.  This increase is consistent with higher activity. The increase in EBITDA for the nine months ended September 30, 2017, of $2,232,805 is primarily from a higher dollar value of gross margin combined with reductions in interest charges and general and administrative expenses when compared to the prior period. 
• Over the last 21 months, the Company has made significant improvements to its statement of financial position and overall total debt. At September 30, 2017, after adjusting for goodwill and deferred taxes, the Company has assets in excess of total debt of approximately $49,000,000 or $0.88 per share. Enterprise will continue to look for opportunities to improve its financial position and opportunities that will allow the Company to diversify and expand.

Due to increased activity in 2017, management’s confidence is building in its outlook for the Company and its services.  Management believes that Enterprise is relatively well positioned due to the diversity of its business and operational performance. Management also believes that a balanced and diversified position between infrastructure and utilities construction and specialized equipment rental is the best path to generating shareholder value.

Throughout 2017, management has experienced a meaningful increase in activity from its existing customers coupled with a substantial surge in new customers which has resulted in increased market share for its business units.  As evidenced by this most recent quarter, management’s efforts to streamline and maximize efficiencies are translating into improved margins quarter after quarter.  Management feels that Enterprise is within a very select group of producers and service providers that have adapted their organizations to operate successfully in the current commodity price environment.

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. Enterprise acquired of Artic Therm International Ltd. in September 2012, Calgary Tunnelling & Horizontal Augering Ltd. in June 2013, Hart Oilfield Rentals in January 2014, and Westar Oilfield Rentals Inc. in October 2014. More information is available at the Company’s website, www.enterprisegrp.ca. Also, today’s filings can be found on www.sedar.com.

For questions or additional information, please contact:Leonard Jaroszuk, President & CEO, orDesmond O’Kell, Senior Vice-President780-418-4400contact@enterprisegrp.ca 

Forward Looking InformationCertain 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 MeasuresThe 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.