Enterprise Group Inc.

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Enterprise Group has maintained a strong vision to be the largest construction services and specialized equipment rental organization in Western Canada. With development activity in the energy services and civil construction sector expected to increase as the economy strengthens, the Enterprise G…

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Enterprise Group Inc.

lockPrivateGroup

Enterprise Group has maintained a strong vision to be the largest construction services and specialized equipment ren……

people37 Members        (0)

 

Bob Beaty

12 days

Bob Beaty posted a News Item LNG Development 2.0 Could be Generational; Enterprise Group (TSX:E) in Enterprise Group Inc.

LNG Development 2.0 Could be Generational; Enterprise Group (E:TSX)

Not long ago, in a land not far from here or there, the Canadian Resource sector took two near fatal mortar rounds to the chest. The first was the oil price decline that left the sector neutered in 2015 with many casualties. In the midst of that recovery, the jubilation for LNG exports to Asia – perceived saviour of the industry—was derailed as major partners went to ground.

One theory that might be more prudent this time is to put early investment dollars into equipment and infrastructure companies that are gearing up.

As a proxy for this growth, Enterprise Group (E:TSX), the premier industrial rental company in Western Canada comes into this burgeoning market aggressively and debt free: The Company appears to be a substantial proxy and winner as several huge potential developments unfold in its target area. As well, the Company has significant access to funds for buying equipment, complementary companies or both. Enterprises history is to buy accretive assets, utilized them for several years to generate significant revenue and then sell at a profit.

As the LNG 2.0 growth commences, Enterprise is known as a one stop shop very well known by the industry as having exceptional equipment coupled with wide ranging custom solutions. Not to mention the plaudits it gained by working with clients to help in the downtimes. Not everything is about money.

And at C$0.45 trades at less than ½ book value of C$1.01.

Why Own Enterprise? Salient Points:

  • • Refocus to grow the lucrative industrial/resource rental business
  • • Cash flow positive since the beginning of 2015 downturn
  • Profitable trend seems intact last three quarters
  • • Trades at less than half book value (C$1.01)
  • Development of StarChain, a revolutionary monitoring and asset management software
  • • 15 proprietary patents for specialized equipment and processes
  • • Cost effective custom solutions
  • • Significant acquisition and capital expenditure
  • Significant domestic growth plans

Third Time the Charm

Due to the vagaries of the sector, these products and services are always needed. If it all comes together at once—LNG Canada commences and oil stays reasonable the renaissance of multiple sectors is or could soon be apparent.

“If you think back three, four years ago when we all had LNG euphoria, that there was a slew of projects ahead of us, we certainly didn’t see any boxes being ticked to the same degree that they are today,” stated Horizon North Logistics Inc. (HNL:TSX ) Chief Financial Officer Scott Matson. “Our view internally is that the flag in the ground was Petronas buying in. We have a hard time believing they would spend an ounce of time, energy or a dollar unless they had a clean line of sight to the project moving ahead.”

LNG Canada is a joint venture between Royal Dutch Shell Plc, PetroChina Co. Ltd, Mitsubishi Corp and Korea Gas Corp. TransCanada Corp will build the pipeline.

The Centre of the Universe?

In St. Albert near Edmonton Alberta, there were several reasons the Enterprise C-Suite team worked to save, expand and grow Enterprise Group. During the almost fatal resource decline mid-decade, one main reason was the new prospect of the significant resurgence of massive LNG spending.

The reasons for this renewed activity years on –after Pacific Northwest LNG populated mainly by Malaysia’s Petronas cancelled participation in 2017. Always watch the left hand as in a feat of corporate legerdemain it is now a major partner in the phoenix-like reanimation of LNG Canada. The workforce will not be a vast majority of TFW (temporary foreign workers) which was a major plank of the previous plan, but the vast majority (approximately 95%) Canadian.

” The potential for the development of LNG to announce and go ahead in the fall is roughly an 8 out of 10,” stated Des O’Kell SVP of Enterprise. ” Related activity is apparent from Kitimat to Fort St. John; negotiations with First Nations, equipment plans and office leasing. All of this is against a backdrop of high condensate prices to make the bitumen flow effectively. The reality is that early exposure to this development trend is key; with an eye to commodity prices. Opening a valve to Asia would very simply provide massive growth of Canada’s energy exports.”

To give some perspective, Alberta’s Black Diamond (BDI: TSX) announced to a contingent $42.5 million camp contract in concert with indigenous partnerships. The landscape is getting thicker with a growing list of monies to be spent and plans to be executed. Houston-based Civeo Corp (NYSE: CVEO) has already been awarded conditional contracts for a 440-bed permanent facility at Kitimat and a 4,500-bed temporary camp for the export terminal construction phase.

Kitimat’s Haisla Nation has made its support apparent through a letter to the NDP from Chief Councillor Crystal Smith:

Unlike others who think the answer is simply ‘no’ to development, we believe in balance between the economy and the environment. Projects can be built right. A project like LNG Canada provides the right balance for us, being a potential major employer and the lowest CO2 emitting LNG facility in the world. We’ve spent more than a decade speaking with LNG proponents to emphasize what’s important to us in our communities and we’ve enjoyed the debate which has led us to today.”

BC Opposition is also onside. Former BC Liberal LNG Minister Rich Coleman stated; “It would get a product we have a huge amount of, we have a 150-year supply of natural gas and would allow us to ship it to China and other countries. Shipping to China would help with climate issues and everything else.”

LNG has much going for it, not the least of which, along with massive supplies is, no apology to Trump, the natural replacement for coal. It’s also important to realize the Trump factor which seems that he could do something ridiculous that could help or hurt the resource sector. He could do nothing with the same result. There will be no in between.

From the Financial Post: “Those LNG markets are turning around, says Shell’s 2018 LNG outlook. It found the market has defied expectations, growing by 29 million tonnes in 2017.”Based on current demand projections, Shell sees a potential for a supply shortage developing in the mid-2020s, unless new LNG production project commitments are made soon.”

So, what do we get? We unlock a giant-killing amount of Nat gas, open up LNG markets to lessen dependence on the US. As well as essential jobs created for decades and the prospect of further projects. Considerable interaction with First Nations as substantive partners. Get bitumen flowing to markets. This situation is not merely some ‘nice little resource deal.’ It is an entirely and possibly multi-generational expansion that, until alternatives come online, provides a viable and cleaner source of power that of coal, oil, etc.

After the last two go-arounds this decade, trepidation would likely be an apt description. But as any risk-taking investor will tell you; Fortune Favors the Bold and merde happens.

Faites vos jeux, mes amis.

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Thumb 8020 media relations

Media Relations posted an update in ENTERPRISE GROUP INC.

17 days

The National Investor (Interview) with Des O’Kell, Senior V.P. of Enterprise Group Inc.

https://nationalinvestor.com/featured-opportunities/enterprise-group/

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Bob Beaty

19 days

Bob Beaty posted a News Item Enterprise Group (TSX:E) Brings the Heat to Farmers and Investors in Enterprise Group Inc.

From a farmer’s grain bin to the massive reaches of the frozen north of Canada, where virtually every fuel and metal on Earth is extracted, what is the most sought-after commodity?

Heat. Particularly Flameless Heat.

A couple of years ago, Artic Therm (ATI)— a wholly owned subsidiary of Alberta-based Enterprise Group (E: TSX) began expanding applications for its flameless heat business. That gamble has resulted in roughly a 25% growth in business year over year. (Ask any fireman and he will tell you fighting a fire in freezing weather is the ultimate nightmare).

With approximately 150 units, these robust and versatile units from retail size to those large enough to heat and condition massive lengths of pipelines and require an operator 24/7.

Hands up! Who Likes Wet Grain?

No one.

Drying grain, thawing frozen equipment, heating a barn or living quarters or prepping a pipeline section; it is pretty much the only economical way to keep things warm and dry. Temperatures that can reach minus 50, and that’s before the addition of the almost constant deadly wind chills.

Let’s chat about Grain Drying.

The traditional process; combine, bin, remove, dry with a natural gas dryer. Downsides? Time and portability. The new way, combine, bin, turn on aeration fan, hook up Artic Therm Dryer. Each grain has or is reduced to an acceptable level of moisture. The faster the excess can be removed, the longer the quality and salability are maintained. Check out the chart below and the nifty truck pic:

Weight of water in barley at various moisture contents

Utilizing one of Artic Therm’s 150 flameless heaters, with maximum heat ranging from 500K btu to just over 3 million btu, the goal is to add the dryer and upping the efficiency of the bin’s aeration fan. By speeding up drying by a point (1%) a day, the process is not only cost effective but gets the grain to market faster thereby securing better prices. The barley chart above delineates the moisture reduction.

As well, since grain can be binned all over a large farm, portability is critical. The stakes are high; if not done correctly, a lucrative crop will quickly be reduced to worthless seed.

What are the costs per bushel for this grain drying?

With a monthly rental cost in the low four figures, the cost of retaining quality top price grain is worth the incremental heating cost, which works out to pennies a bushel. If the process gets the good product to market faster, even slightly, it’s a small price to pay.

Again, this is probably best illustrated with an example calculation using several assumptions. Keep in mind that this example includes fuel costs only and does not include the additional costs of labor, electricity, grain handling, depreciation, and other less direct costs.

– 1 gigajoule (GJ) = 1,000,000 BTU (1 GJ/1,000,000 BTU) 
– Natural gas costs $5/GJ
– Weight of water to remove: 9.6 lb. – 7.1 lb. = 2.5 lb./bu
– 2.5 lb./bu X 2000 BTU/lb. = 5000 BTU/bu needed
– $5/GJ X 1GJ/1,000,000 BTU X 5000 BTU/bu = $0.025/bu

Take out the Nat Gas portion and drying costs per bushel drop dramatically

“The drying concept is not actually to blow massive amounts of heat into the grain but to make the aeration fans in the bins more efficient,” states Desmond O’Kell SVP of Enterprise. “While an aeration fan will eventually dry the grain, and/or with the use of expensive natural gas, our units vastly shorten drying time and more cost-effectively allow our client to get the best or desired price for the crops whether going to market immediately or resting in a grain silo. Like most products at our subsidiaries, management keeps assets in top shape and rented. That means coming up with a myriad of uses that both maximize rental time and ultimately revenues.”

Why Should Investors Care About Wet Grain?

They shouldn’t. They should care about dry grain.

With significant growth rates, ATI is quickly educating farmers to eschew their healthy and usually wise resistance to new processes.

“Once a cereal crop is harvested, it may have to be stored for a period before it can be marketed or used as feed or seed. The length of time cereal can be safely stored will depend on the condition it was harvested, and the type of storage facility being utilized. Grain binned at lower temperatures and moisture contents can be kept in storage for longer periods of time before its quality will deteriorate. The presence and build-up of insects, mites, molds and fungi, which are all affected by grain temperature and grain moisture content, will affect the grain quality and duration of grain storage.” (Alberta Agriculture and Forestry)

Bottom Line

Using heat to make the drying process more efficient is a relatively new process but quickly becoming an impressive profit centre. There are very few companies who have made an ATI size commitment and the Company is arguably the most significant player. Even ATI/Enterprise don’t know the exact size of what is undoubtedly a massive market. The Company is confident that as efficacy of the process spreads, the current and initial 25% year over year growth rate should climb dramatically. From an idea born at ATI to generate revenues during the 2015 downturn, grain drying is looking to become a significant revenue generator; along with all the other necessary uses of this unique flameless application.

Harvest is looming, and the Company is already seeing increased quote requests over last year.

Farmers and investors are not dissimilar. Those that are successful watch over their investments and find the best ways to maximize revenue and profits. It’s healthy that both are somewhat skeptical of new processes, but as Grain Drying is already a success and has potentially a massive growth path, it will become mainstream soon.

Almost forgot: Using the traditional drying methods, the aeration fan pulls out the moisture which tends to gather on the inside roof of the bin; meaning the drying takes longer without an ATI product. As a result, the traditional process can result in the first few feet of the top grain becoming wet, moldy and uneconomic. With the dryer combined the aeration fan(s), the result is a much higher volume of dry, saleable grain.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand two hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Provided by Livemoney via QuoteMedia

!
 

Bob Beaty

1 month

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Thumb year end 2017

Darren Stewart replied to the topic Media Relations  update in ENTERPRISE GROUP INC.

2 months

 

Great post… thanks!keyboard_arrow_downShow Post

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Thumb 8020 media relations

Media Relations

2 months

Media Relations  posted an update in ENTERPRISE GROUP INC.

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 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.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand two hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Provided by Livemoney via QuoteMedia

!
Thumb 8020 media relations

Media Relations

2 months

Media Relations posted a News Item Enterprise Group (TSX:E): Doubled YTD. Hunting for Accretive Acquisitions in Enterprise Group Inc.

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 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.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand two hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Provided by Livemoney via QuoteMedia

!
Thumb 8020 media relations

Media Relations

3 months

Media Relations posted a press release Enterprise Group (TSX:E) Q1/2018 eps $0.06 vs Q1/2017 eps ($0.02) in Enterprise Group Inc.

Enterprise Group 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.

June 2013-May 2018 Enterprise Group (E: TSX)

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.

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.

ther 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)

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is not an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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Media Relations

3 months

Media Relations posted a press release Enterprise Group Announces Results for First Quarter 2018 in Enterprise Group Inc.

ST. ALBERT, Alberta, May 10, 2018 (GLOBE NEWSWIRE) — Enterprise Group, Inc. (the “Company” or “Enterprise”) (TSX:E), a consolidator of services to the energy sector; focused primarily on specialized equipment rental; today released its Q1 2018 results.

(1) Identified and defined under “Non-IFRS Measures”.
(2) In March 2018, the Company closed a transaction to divest substantially all the assets of CTHA. The net operations of CTHA, including the prior period, are presented as a single amount in the consolidated statements of income (loss) and comprehensive income (loss).

Revenue for the three months ended March 31, 2018 of $6,810,906 is relatively consistent with the prior period with a slight decrease of $204,372 or 3%. The Company continues to see increased activity. However, with no construction work completed in the first quarter of 2018 on a major construction project in Northeastern B.C., the increased activity experienced with other customers did not fully offset the loss of revenue earned in the first quarter of 2017 associated with that project. Although this project has received government approval to continue, no construction work was completed in the first quarter of 2018. Enterprise recently responded to bids for the supply of specialized equipment to support construction work that will take place in 2018.

Gross margin for the three months ended March 31, 2018 of $2,126,160 or 31%, decreased compared to the prior period and EBITDA for the same period decreased by $348,737 to $1,487,253. The decreases in gross margin and EBITDA are consistent with decreased revenue associated with the major construction project described above. Also, as explained above, the revenue earned from increased customer activity that partially offset the lost revenue from that project, was at lower margins compared to the prior period.

In March 2018, the Company closed a transaction to divest substantially all the assets of Calgary Tunnelling & Horizontal Augering Ltd. (“CTHA”). CTHA provided specialized trenchless solutions for the energy, utility and infrastructure industries. Gross cash proceeds from the transaction was $20,694,992. Enterprise will utilize tax assets and tax losses to offset the gain on this transaction to minimize cash tax payable. All proceeds from the transaction were deployed towards reducing the Company’s debt.

During 2017, the Company integrated and upgraded its financial and reporting systems along with its rental fleet tracking and deployment system. Immediate efficiencies and cost savings were experienced after implementing these systems. Further enhancements to these systems continue and during the first quarter of 2018 the Company deployed a proprietary asset tracking and dispatch software called “Star”. The software is comprised of multiple components that work together and exchange information over a central data base. Star allows the fleet manager the ability to ensure the highest level of service to the client, while lowering costs and delivering maximum equipment performance.

Over the last 2 years, the Company has made significant improvements to its statement of financial position and overall total debt. At March 31, 2018, after adjusting for goodwill and deferred taxes, the Company has assets in excess of total debt of approximately $54,000,000. Enterprise will continue to look for opportunities to improve its financial position and opportunities that will allow the Company to diversify and expand.
StarChain Update

Development on the StarChain technology continues. 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 H2 of 2018. The Company’s equipment offerings will enable its customers to automate and/or schedule the performance of the equipment which optimizes usage, delivering several benefits such as; reduced fuel expenses, lowering onsite maintenance costs, real-time reporting among many others.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector. The Company’s focus is primarily on 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, or
Desmond O’Kell, Senior Vice-President
780-418-4400
[email protected]

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”). EBITDA 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 EBITDA. 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, EBITDA 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. EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.

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Media Relations

3 months

Media Relations posted a press release Enterprise Group (E:CA) – Good Things Can Happen to Great Stocks in Enterprise Group Inc.

Do you invest in resource, industrial or technology stocks? Here’s one that is all those and has set itself up for major growth

When the Canadian resource decline made the sector analogous to the St. Valentine’s Day Massacre, Enterprise Group’s eps dropped from $0.24 a share FY2013 to ($0.40) FY2015. Revenues peaked at $80 million FY2014 and were cut in half the following year. The shares hit $3.50 mid 2014.

The Company posted eps of $0.01 and $0.02 for Q3 and Q4 2017 respectively. FY2017 revenues of $38 million versus FY2016 of $29 million The shares are trading at $0.55.

Book value is $1.01.

And Enterprise is net debt free.

Enterprise Group is a consolidator of services to the energy sector; focused primarily on specialized resource and infrastructure equipment rental.

See Where This is Going?

Not sure why investors aren’t all over Enterprise. A costly opportunity loss at least, as the shares have a 2018 YTD high/low of $0.62/$0.28. And a book value of $1.00. A stand up double so far.

I’ll put some metrics at the end of the piece, but the drivers that will bring E into the investors’ headlights are the recently announced proprietary asset management software STARCHAIN. Second is the cash position earmarked for potential acquisitions.

The Company has a solid track record of acquiring companies, racking up major revenues and then sell them for more than they paid.

STARCHAIN

The purpose of StarChain is to monitor location, usage and address repair issues in real time to maximize revenues and lessen equipment downtime from extensive pool of rental assets. If a piece of equipment fails or experiences a mechanical deficiency on a remote project site, StarChain independently alerts Enterprise and the fleet manager acts immediately so that a replacement can be deployed, asset brought back online; minimizing downtime, which in turn increases revenues, efficiency and asset life.

“The Company sees this technology accomplishment as the baseline for future developments within ‘Industry 4.0’: The current industrial transformation caused by automation, data exchanges, Big Data, A.I. and IoT,” stated Des O’Kell SVP of Enterprise. “Enterprise has no plans to sell or license what it sees as an incredible competitive advantage. The technology will be extended to the operations of future acquisitions; this will allow for the significant growth, in size and geographical reach.”

STARCHAIN software is the evolution of several technologies. The hardware is similar to the Raspberry Pi. Evan at this stage, the custom module not only does exactly the tasks it was designed for, but negates the need for GPS, which represents a substantial monthly savings.

Financial results of the software are measurable and impressive:

– Proprietary platform for future development and refinement
– Task and monitoring capabilities saves two significant salaries
– Allows management to plan to deploy company-wide through 3 subs
– Plans to generate a significant annual cost savings
– Also, to produce margin improvement
– Represents (one of) the Company’s fundamental value propositions
– No plans to license; remains a corporate asset.
– Not aware of any competitive software

Take a Break

Before we discuss acquisitions, let’s look at the stock charts: Left is the 2013-2018 historical and the long period of consolidation that ensued.

These data points would all be pretty meaningless if E management hadn’t taken the decision early not to be cowed into inaction. That decision was the right one as the 2018 YTD chart right shows not only that the malaise has lifted, but that E’s initiatives are bearing fruit.

Management is informing investors of their aggressive plans for the future, which will include some impressive and accretive acquisitions.

Acquisitions Trail

As a result of the recent $20.6 million sale of subsidiary Calgary Tunnelling & Horizontal Augering (CTHA), Enterprise has no debt, a clean $25 million line of credit and a further $15 million for acquisitions. No reason to think that the future ones won’t mirror E’s two past endeavours:

CTHA was purchased in 2013 for $12 million. It generated $60 million in revenue under E’s stewardship and was then sold for $20.6 million as noted.

TC Backhoe was purchased in 2007 for $12 million. Revenues generated until sale; $154 million. TCB was sold in June 2016 for $20 million.

Management owns 21 percent of the outstanding shares and acquired stock all through the previous downturn.

The Company is also in the midst of a roughly 5% share buyback announced in June 2017.

From 2016 Q3 discussion:

the Company is committed to certain service standards for its existing clients, which management believes to be critical for fostering the Company’s longer-term growth. As the Company better understands the economic outlook for 2017 and the likely level of demand for its services, it will adjust its internal infrastructure accordingly.

And it did. And it has, and it will. As management owns over one fifth of the shares, you can be sure shareholders are in extremely motivated and competent hands.

Disclaimer: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is not an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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8020 Admin

3 months

8020 Admin posted a press release Enterprise Equipment Controls & Automation Lowers Costs, Increases Revenues in Enterprise Group Inc.

ST. ALBERT, Alberta, April 25, 2018 (GLOBE NEWSWIRE) — Enterprise Group, Inc. (the “Company” or “Enterprise”) (TSX:E), a consolidator of services to the energy sector; focused primarily on specialized equipment rental, announced today that it has further enhanced its proprietary dispatch & asset tracking software now known as StarChain.” 

The Company is adding a decentralized and distributed ledger to its Equipment to definitively record all machine data as transactions on a secure private network. The recorded data will be verified via the StarChain Module’s and then uploaded to the StarChain Network.

The purpose of StarChain is to monitor location, usage and address repair issues in real time to maximize revenues and vastly lessen equipment downtime from the Company’s extensive pool of rental assets.  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 replacement can be deployed, increasing revenues, efficiency and asset life.

In the past, the client had to inform the Company of issues, the equipment would need to be taken offline and repaired. The technology also ensures the security of the asset against loss, theft or tampering during its deployment.

While the benefits of StarChain for Enterprise are immediate, it also guarantees that clients get superior equipment, service and a new level of control via the “StarChain” client portal, where Site Managers can schedule, report and remote control their rented assets via any connected smart device.

Enterprise’s StarChain is Already Well Ahead of the Curve

The Company sees this technology accomplishment as the baseline for future developments within ‘Industry 4.0’: The current industrial transformation caused by automation, data exchanges, Big Data, A.I. and IoT.  The Company’s evolving technology will exploit smart industry as the foundation for a competitive rental service.

“We investigated the benefits of developing a cost effective digital network and the practical applications that would emerge from its existence. We quickly realized that if we were able develop a low-cost solution that made significant financial sense that we could begin offering a competitive and proprietary rental product which would benefit our business and provide our clients with a unique service,” stated Desmond O’Kell, SVP, Enterprise. “If we want our assets to communicate with each other we first need to give them the ability to talk. The advantages and efficiencies “StarChain” brings to both Enterprise and its client are substantial.”

Enterprise has no plans to sell or license what it sees as an incredible competitive advantage. The technology will be extended to the operations of future acquisitions, this will allow for the significant growth, in size and geographical reach.

The Technology Behind StarChain

Enterprise has developed its solution utilizing a number of technologies. The software is built from Node.js, RethinkDB and Material Design that runs on a customized Linux distro inside the module. The hardware (micro-controller/computer) is built using a similar architecture to the Raspberry PI, providing Enterprise a robust interface to its equipment via GPIO (General Purpose Input Output).

With the module successfully deployed, the current GPS device becomes obsolete, allowing Enterprise to eliminate significant monthly expenses when installed on all our rental assets.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector.  The Company’s focus is primarily on 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, or
Desmond O’Kell, Senior Vice-President
780-418-4400
[email protected]

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.

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gnelson

3 months

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Media Relations

4 months

Media Relations posted a press release Enterprise’s Asset Tracking Software: Margins Up. Costs Down in Enterprise Group Inc.

One of the great things about being an investor is unearthing something that, while logical, is unexpected: But could be a nifty value add to shareholders. Such an example is Enterprise Group’s (E: TSX) proprietary asset tracking software ‘STAR’; critical to maximum use of equipment and most importantly, getting it back.

Experienced investors will note the potential of Industrial equipment rental leader Enterprise Group, not the least of which is that its book value has risen to $1.01 a share and is trading at 44 cents. This growth is just the latest in a successful strategy taken by Enterprise management after weathering the 2014-15 resource downturn. If anything, the company is leaner and stronger now; the result of the recent sale of subsidiary sale of CT Underground for $20.6 million.

The tale of Enterprise’s proprietary ‘STAR’ tracking program is one such story. For those old enough, the software is like Six Sigma on steroids.

Likely the most significant headache/loss/revenue hit haunting all rental businesses (in this case resource and industrial rentals) is the risk of losing a piece of expensive equipment (or several parts that add up to a significant corporate loss.)

Or not realizing maximum usage through inefficient tracking. Given that the security of assets could well be at the whim of client honesty and the weather; pieces lost for a period of time or forever can obviously be costly.

When Enterprise Group (TSX: E) acquired Westar Oilfield Rentals in 2014, one of the assets the company was working on was a business management software, known today as ‘STAR’. Enterprise continued to fund and upgrade the project and found itself with a proprietary asset that is critical to the profitability and cost mitigation of all of its subsidiaries.

Enterprise management currently owns almost 20 percent (just shy of 11 million) of its shares, so investors should not worry about motivation. It intends to be the leader and industrial and resource rental company of choice nationwide.

How E Got Here

Through strategic plans including asset sales, ongoing cost-cutting and sound business decisions E is leaner, more pivotal and have added diversity to its client base. The fact that Enterprise also designs and builds specialty equipment for our clients—15 patents in place with more coming –means that it can be immediately responsive and relevant to address its private or Government customers’ unique needs.

Since January 1, 2018: Key investment metrics evidencing ongoing growth:

– Secured a $9 million Supply and Services agreement with a significant International resource company.

– Q4 2017 revenue $10.7m versus Q4 2016 at $8.3m

– EBITDA Q4 2017 $2.56m versus Q4 2016 $1.87m

– Net Income Q4 2017 $1.1m versus Q4 2016 loss ($9.9m)

– EPS Q4 2017 $0.02 versus Q4 2016 loss ($0.85)

In Q1 2018, Enterprise has secured a $9.1 million contract, sold its CT Underground subsidiary for $20.6 million resulting in virtually complete debt retirement. As well, the Company has an acquisition chest of $15 million loan availability for accretive and complementary companies or assets.

Next? STAR

Financial results of the software use are measurable and impressive:

– Proprietary platform for future development and refinement

– Task and monitoring capabilities saves two significant salaries

– Allows management to plan to deploy company-wide through 3 subs and future acquisitions

– Generates a roughly 30 percent annual cost savings

– Produced a five up to a possible 10 percent margin improvement

– One of the Company’s impressive value propositions over competitors

– No plans to license; to remain a corporate asset.

– Not aware of any competitive software

The software tracks assets, which in itself cuts costs, utilizing the location and site ID put directly on the invoice. The system always knows where the asset is, and fleet managers confirm that on delivery.

This approach keeps the customer up and running and ensures other expended revenue and protection of the asset. The key is the development of about 18 modules that work together and exchange information over a central database; all laid out in a very user-friendly navigational format.

“With the components developed, we began process mapping our existing business operations. As a result, we were able to considerably reduce our administrative costs by automating many of the human elements,” stated Des O’Kell SVP of Enterprise Group. “Furthermore, with its implementation, the cost benefits that emerged from asset tracking are substantial.”

Enterprise is not the same Company that went into the 2015 resource downturn.

All Cylinders Firing

Throughout 2017, Enterprise 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.

Management’s efforts to streamline and maximize efficiencies have translated into improved margins, decisive cash-flow quarter after quarter and a return to profitability in Q3 2017.

Management feels that Enterprise is within a very select group of producers and service providers that have aggressively adapted their organizations to operate successfully in the current commodity price environment.

With 2018 starting out with impressive strength, the Company has many other initiatives and strategic business plans to execute, particularly in further debt reduction, potential acquisitions and expansion beyond Western Canada.

With the calculated diversification of its customer base over the last three years, the Company has further mitigated market risk and is exploring substantial development opportunities to grow and enhance shareholder value.

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Enterprise Group Inc.

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Bob Beaty

12 days

Bob Beaty posted a News Item LNG Development 2.0 Could be Generational; Enterprise Group (TSX:E) in Enterprise Group Inc.

LNG Development 2.0 Could be Generational; Enterprise Group (E:TSX)

Not long ago, in a land not far from here or there, the Canadian Resource sector took two near fatal mortar rounds to the chest. The first was the oil price decline that left the sector neutered in 2015 with many casualties. In the midst of that recovery, the jubilation for LNG exports to Asia – perceived saviour of the industry—was derailed as major partners went to ground.

One theory that might be more prudent this time is to put early investment dollars into equipment and infrastructure companies that are gearing up.

As a proxy for this growth, Enterprise Group (E:TSX), the premier industrial rental company in Western Canada comes into this burgeoning market aggressively and debt free: The Company appears to be a substantial proxy and winner as several huge potential developments unfold in its target area. As well, the Company has significant access to funds for buying equipment, complementary companies or both. Enterprises history is to buy accretive assets, utilized them for several years to generate significant revenue and then sell at a profit.

As the LNG 2.0 growth commences, Enterprise is known as a one stop shop very well known by the industry as having exceptional equipment coupled with wide ranging custom solutions. Not to mention the plaudits it gained by working with clients to help in the downtimes. Not everything is about money.

And at C$0.45 trades at less than ½ book value of C$1.01.

Why Own Enterprise? Salient Points:

  • • Refocus to grow the lucrative industrial/resource rental business
  • • Cash flow positive since the beginning of 2015 downturn
  • Profitable trend seems intact last three quarters
  • • Trades at less than half book value (C$1.01)
  • Development of StarChain, a revolutionary monitoring and asset management software
  • • 15 proprietary patents for specialized equipment and processes
  • • Cost effective custom solutions
  • • Significant acquisition and capital expenditure
  • Significant domestic growth plans

Third Time the Charm

Due to the vagaries of the sector, these products and services are always needed. If it all comes together at once—LNG Canada commences and oil stays reasonable the renaissance of multiple sectors is or could soon be apparent.

“If you think back three, four years ago when we all had LNG euphoria, that there was a slew of projects ahead of us, we certainly didn’t see any boxes being ticked to the same degree that they are today,” stated Horizon North Logistics Inc. (HNL:TSX ) Chief Financial Officer Scott Matson. “Our view internally is that the flag in the ground was Petronas buying in. We have a hard time believing they would spend an ounce of time, energy or a dollar unless they had a clean line of sight to the project moving ahead.”

LNG Canada is a joint venture between Royal Dutch Shell Plc, PetroChina Co. Ltd, Mitsubishi Corp and Korea Gas Corp. TransCanada Corp will build the pipeline.

The Centre of the Universe?

In St. Albert near Edmonton Alberta, there were several reasons the Enterprise C-Suite team worked to save, expand and grow Enterprise Group. During the almost fatal resource decline mid-decade, one main reason was the new prospect of the significant resurgence of massive LNG spending.

The reasons for this renewed activity years on –after Pacific Northwest LNG populated mainly by Malaysia’s Petronas cancelled participation in 2017. Always watch the left hand as in a feat of corporate legerdemain it is now a major partner in the phoenix-like reanimation of LNG Canada. The workforce will not be a vast majority of TFW (temporary foreign workers) which was a major plank of the previous plan, but the vast majority (approximately 95%) Canadian.

” The potential for the development of LNG to announce and go ahead in the fall is roughly an 8 out of 10,” stated Des O’Kell SVP of Enterprise. ” Related activity is apparent from Kitimat to Fort St. John; negotiations with First Nations, equipment plans and office leasing. All of this is against a backdrop of high condensate prices to make the bitumen flow effectively. The reality is that early exposure to this development trend is key; with an eye to commodity prices. Opening a valve to Asia would very simply provide massive growth of Canada’s energy exports.”

To give some perspective, Alberta’s Black Diamond (BDI: TSX) announced to a contingent $42.5 million camp contract in concert with indigenous partnerships. The landscape is getting thicker with a growing list of monies to be spent and plans to be executed. Houston-based Civeo Corp (NYSE: CVEO) has already been awarded conditional contracts for a 440-bed permanent facility at Kitimat and a 4,500-bed temporary camp for the export terminal construction phase.

Kitimat’s Haisla Nation has made its support apparent through a letter to the NDP from Chief Councillor Crystal Smith:

Unlike others who think the answer is simply ‘no’ to development, we believe in balance between the economy and the environment. Projects can be built right. A project like LNG Canada provides the right balance for us, being a potential major employer and the lowest CO2 emitting LNG facility in the world. We’ve spent more than a decade speaking with LNG proponents to emphasize what’s important to us in our communities and we’ve enjoyed the debate which has led us to today.”

BC Opposition is also onside. Former BC Liberal LNG Minister Rich Coleman stated; “It would get a product we have a huge amount of, we have a 150-year supply of natural gas and would allow us to ship it to China and other countries. Shipping to China would help with climate issues and everything else.”

LNG has much going for it, not the least of which, along with massive supplies is, no apology to Trump, the natural replacement for coal. It’s also important to realize the Trump factor which seems that he could do something ridiculous that could help or hurt the resource sector. He could do nothing with the same result. There will be no in between.

From the Financial Post: “Those LNG markets are turning around, says Shell’s 2018 LNG outlook. It found the market has defied expectations, growing by 29 million tonnes in 2017.”Based on current demand projections, Shell sees a potential for a supply shortage developing in the mid-2020s, unless new LNG production project commitments are made soon.”

So, what do we get? We unlock a giant-killing amount of Nat gas, open up LNG markets to lessen dependence on the US. As well as essential jobs created for decades and the prospect of further projects. Considerable interaction with First Nations as substantive partners. Get bitumen flowing to markets. This situation is not merely some ‘nice little resource deal.’ It is an entirely and possibly multi-generational expansion that, until alternatives come online, provides a viable and cleaner source of power that of coal, oil, etc.

After the last two go-arounds this decade, trepidation would likely be an apt description. But as any risk-taking investor will tell you; Fortune Favors the Bold and merde happens.

Faites vos jeux, mes amis.

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Media Relations posted an update in ENTERPRISE GROUP INC.

17 days

The National Investor (Interview) with Des O’Kell, Senior V.P. of Enterprise Group Inc.

https://nationalinvestor.com/featured-opportunities/enterprise-group/

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Bob Beaty

19 days

Bob Beaty posted a News Item Enterprise Group (TSX:E) Brings the Heat to Farmers and Investors in Enterprise Group Inc.

From a farmer’s grain bin to the massive reaches of the frozen north of Canada, where virtually every fuel and metal on Earth is extracted, what is the most sought-after commodity?

Heat. Particularly Flameless Heat.

A couple of years ago, Artic Therm (ATI)— a wholly owned subsidiary of Alberta-based Enterprise Group (E: TSX) began expanding applications for its flameless heat business. That gamble has resulted in roughly a 25% growth in business year over year. (Ask any fireman and he will tell you fighting a fire in freezing weather is the ultimate nightmare).

With approximately 150 units, these robust and versatile units from retail size to those large enough to heat and condition massive lengths of pipelines and require an operator 24/7.

Hands up! Who Likes Wet Grain?

No one.

Drying grain, thawing frozen equipment, heating a barn or living quarters or prepping a pipeline section; it is pretty much the only economical way to keep things warm and dry. Temperatures that can reach minus 50, and that’s before the addition of the almost constant deadly wind chills.

Let’s chat about Grain Drying.

The traditional process; combine, bin, remove, dry with a natural gas dryer. Downsides? Time and portability. The new way, combine, bin, turn on aeration fan, hook up Artic Therm Dryer. Each grain has or is reduced to an acceptable level of moisture. The faster the excess can be removed, the longer the quality and salability are maintained. Check out the chart below and the nifty truck pic:

Weight of water in barley at various moisture contents

Utilizing one of Artic Therm’s 150 flameless heaters, with maximum heat ranging from 500K btu to just over 3 million btu, the goal is to add the dryer and upping the efficiency of the bin’s aeration fan. By speeding up drying by a point (1%) a day, the process is not only cost effective but gets the grain to market faster thereby securing better prices. The barley chart above delineates the moisture reduction.

As well, since grain can be binned all over a large farm, portability is critical. The stakes are high; if not done correctly, a lucrative crop will quickly be reduced to worthless seed.

What are the costs per bushel for this grain drying?

With a monthly rental cost in the low four figures, the cost of retaining quality top price grain is worth the incremental heating cost, which works out to pennies a bushel. If the process gets the good product to market faster, even slightly, it’s a small price to pay.

Again, this is probably best illustrated with an example calculation using several assumptions. Keep in mind that this example includes fuel costs only and does not include the additional costs of labor, electricity, grain handling, depreciation, and other less direct costs.

– 1 gigajoule (GJ) = 1,000,000 BTU (1 GJ/1,000,000 BTU) 
– Natural gas costs $5/GJ
– Weight of water to remove: 9.6 lb. – 7.1 lb. = 2.5 lb./bu
– 2.5 lb./bu X 2000 BTU/lb. = 5000 BTU/bu needed
– $5/GJ X 1GJ/1,000,000 BTU X 5000 BTU/bu = $0.025/bu

Take out the Nat Gas portion and drying costs per bushel drop dramatically

“The drying concept is not actually to blow massive amounts of heat into the grain but to make the aeration fans in the bins more efficient,” states Desmond O’Kell SVP of Enterprise. “While an aeration fan will eventually dry the grain, and/or with the use of expensive natural gas, our units vastly shorten drying time and more cost-effectively allow our client to get the best or desired price for the crops whether going to market immediately or resting in a grain silo. Like most products at our subsidiaries, management keeps assets in top shape and rented. That means coming up with a myriad of uses that both maximize rental time and ultimately revenues.”

Why Should Investors Care About Wet Grain?

They shouldn’t. They should care about dry grain.

With significant growth rates, ATI is quickly educating farmers to eschew their healthy and usually wise resistance to new processes.

“Once a cereal crop is harvested, it may have to be stored for a period before it can be marketed or used as feed or seed. The length of time cereal can be safely stored will depend on the condition it was harvested, and the type of storage facility being utilized. Grain binned at lower temperatures and moisture contents can be kept in storage for longer periods of time before its quality will deteriorate. The presence and build-up of insects, mites, molds and fungi, which are all affected by grain temperature and grain moisture content, will affect the grain quality and duration of grain storage.” (Alberta Agriculture and Forestry)

Bottom Line

Using heat to make the drying process more efficient is a relatively new process but quickly becoming an impressive profit centre. There are very few companies who have made an ATI size commitment and the Company is arguably the most significant player. Even ATI/Enterprise don’t know the exact size of what is undoubtedly a massive market. The Company is confident that as efficacy of the process spreads, the current and initial 25% year over year growth rate should climb dramatically. From an idea born at ATI to generate revenues during the 2015 downturn, grain drying is looking to become a significant revenue generator; along with all the other necessary uses of this unique flameless application.

Harvest is looming, and the Company is already seeing increased quote requests over last year.

Farmers and investors are not dissimilar. Those that are successful watch over their investments and find the best ways to maximize revenue and profits. It’s healthy that both are somewhat skeptical of new processes, but as Grain Drying is already a success and has potentially a massive growth path, it will become mainstream soon.

Almost forgot: Using the traditional drying methods, the aeration fan pulls out the moisture which tends to gather on the inside roof of the bin; meaning the drying takes longer without an ATI product. As a result, the traditional process can result in the first few feet of the top grain becoming wet, moldy and uneconomic. With the dryer combined the aeration fan(s), the result is a much higher volume of dry, saleable grain.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand two hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Provided by Livemoney via QuoteMedia

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Bob Beaty

1 month

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Darren Stewart replied to the topic Media Relations  update in ENTERPRISE GROUP INC.

2 months

 

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Media Relations

2 months

Media Relations  posted an update in ENTERPRISE GROUP INC.

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 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.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand two hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Provided by Livemoney via QuoteMedia

!
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Media Relations

2 months

Media Relations posted a News Item Enterprise Group (TSX:E): Doubled YTD. Hunting for Accretive Acquisitions in Enterprise Group Inc.

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 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.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand two hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Provided by Livemoney via QuoteMedia

!
Thumb 8020 media relations

Media Relations

3 months

Media Relations posted a press release Enterprise Group (TSX:E) Q1/2018 eps $0.06 vs Q1/2017 eps ($0.02) in Enterprise Group Inc.

Enterprise Group 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.

June 2013-May 2018 Enterprise Group (E: TSX)

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.

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.

ther 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)

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is not an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 8020 media relations

Media Relations

3 months

Media Relations posted a press release Enterprise Group Announces Results for First Quarter 2018 in Enterprise Group Inc.

ST. ALBERT, Alberta, May 10, 2018 (GLOBE NEWSWIRE) — Enterprise Group, Inc. (the “Company” or “Enterprise”) (TSX:E), a consolidator of services to the energy sector; focused primarily on specialized equipment rental; today released its Q1 2018 results.

(1) Identified and defined under “Non-IFRS Measures”.
(2) In March 2018, the Company closed a transaction to divest substantially all the assets of CTHA. The net operations of CTHA, including the prior period, are presented as a single amount in the consolidated statements of income (loss) and comprehensive income (loss).

Revenue for the three months ended March 31, 2018 of $6,810,906 is relatively consistent with the prior period with a slight decrease of $204,372 or 3%. The Company continues to see increased activity. However, with no construction work completed in the first quarter of 2018 on a major construction project in Northeastern B.C., the increased activity experienced with other customers did not fully offset the loss of revenue earned in the first quarter of 2017 associated with that project. Although this project has received government approval to continue, no construction work was completed in the first quarter of 2018. Enterprise recently responded to bids for the supply of specialized equipment to support construction work that will take place in 2018.

Gross margin for the three months ended March 31, 2018 of $2,126,160 or 31%, decreased compared to the prior period and EBITDA for the same period decreased by $348,737 to $1,487,253. The decreases in gross margin and EBITDA are consistent with decreased revenue associated with the major construction project described above. Also, as explained above, the revenue earned from increased customer activity that partially offset the lost revenue from that project, was at lower margins compared to the prior period.

In March 2018, the Company closed a transaction to divest substantially all the assets of Calgary Tunnelling & Horizontal Augering Ltd. (“CTHA”). CTHA provided specialized trenchless solutions for the energy, utility and infrastructure industries. Gross cash proceeds from the transaction was $20,694,992. Enterprise will utilize tax assets and tax losses to offset the gain on this transaction to minimize cash tax payable. All proceeds from the transaction were deployed towards reducing the Company’s debt.

During 2017, the Company integrated and upgraded its financial and reporting systems along with its rental fleet tracking and deployment system. Immediate efficiencies and cost savings were experienced after implementing these systems. Further enhancements to these systems continue and during the first quarter of 2018 the Company deployed a proprietary asset tracking and dispatch software called “Star”. The software is comprised of multiple components that work together and exchange information over a central data base. Star allows the fleet manager the ability to ensure the highest level of service to the client, while lowering costs and delivering maximum equipment performance.

Over the last 2 years, the Company has made significant improvements to its statement of financial position and overall total debt. At March 31, 2018, after adjusting for goodwill and deferred taxes, the Company has assets in excess of total debt of approximately $54,000,000. Enterprise will continue to look for opportunities to improve its financial position and opportunities that will allow the Company to diversify and expand.
StarChain Update

Development on the StarChain technology continues. 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 H2 of 2018. The Company’s equipment offerings will enable its customers to automate and/or schedule the performance of the equipment which optimizes usage, delivering several benefits such as; reduced fuel expenses, lowering onsite maintenance costs, real-time reporting among many others.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector. The Company’s focus is primarily on 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, or
Desmond O’Kell, Senior Vice-President
780-418-4400
[email protected]

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”). EBITDA 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 EBITDA. 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, EBITDA 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. EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.

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Media Relations

3 months

Media Relations posted a press release Enterprise Group (E:CA) – Good Things Can Happen to Great Stocks in Enterprise Group Inc.

Do you invest in resource, industrial or technology stocks? Here’s one that is all those and has set itself up for major growth

When the Canadian resource decline made the sector analogous to the St. Valentine’s Day Massacre, Enterprise Group’s eps dropped from $0.24 a share FY2013 to ($0.40) FY2015. Revenues peaked at $80 million FY2014 and were cut in half the following year. The shares hit $3.50 mid 2014.

The Company posted eps of $0.01 and $0.02 for Q3 and Q4 2017 respectively. FY2017 revenues of $38 million versus FY2016 of $29 million The shares are trading at $0.55.

Book value is $1.01.

And Enterprise is net debt free.

Enterprise Group is a consolidator of services to the energy sector; focused primarily on specialized resource and infrastructure equipment rental.

See Where This is Going?

Not sure why investors aren’t all over Enterprise. A costly opportunity loss at least, as the shares have a 2018 YTD high/low of $0.62/$0.28. And a book value of $1.00. A stand up double so far.

I’ll put some metrics at the end of the piece, but the drivers that will bring E into the investors’ headlights are the recently announced proprietary asset management software STARCHAIN. Second is the cash position earmarked for potential acquisitions.

The Company has a solid track record of acquiring companies, racking up major revenues and then sell them for more than they paid.

STARCHAIN

The purpose of StarChain is to monitor location, usage and address repair issues in real time to maximize revenues and lessen equipment downtime from extensive pool of rental assets. If a piece of equipment fails or experiences a mechanical deficiency on a remote project site, StarChain independently alerts Enterprise and the fleet manager acts immediately so that a replacement can be deployed, asset brought back online; minimizing downtime, which in turn increases revenues, efficiency and asset life.

“The Company sees this technology accomplishment as the baseline for future developments within ‘Industry 4.0’: The current industrial transformation caused by automation, data exchanges, Big Data, A.I. and IoT,” stated Des O’Kell SVP of Enterprise. “Enterprise has no plans to sell or license what it sees as an incredible competitive advantage. The technology will be extended to the operations of future acquisitions; this will allow for the significant growth, in size and geographical reach.”

STARCHAIN software is the evolution of several technologies. The hardware is similar to the Raspberry Pi. Evan at this stage, the custom module not only does exactly the tasks it was designed for, but negates the need for GPS, which represents a substantial monthly savings.

Financial results of the software are measurable and impressive:

– Proprietary platform for future development and refinement
– Task and monitoring capabilities saves two significant salaries
– Allows management to plan to deploy company-wide through 3 subs
– Plans to generate a significant annual cost savings
– Also, to produce margin improvement
– Represents (one of) the Company’s fundamental value propositions
– No plans to license; remains a corporate asset.
– Not aware of any competitive software

Take a Break

Before we discuss acquisitions, let’s look at the stock charts: Left is the 2013-2018 historical and the long period of consolidation that ensued.

These data points would all be pretty meaningless if E management hadn’t taken the decision early not to be cowed into inaction. That decision was the right one as the 2018 YTD chart right shows not only that the malaise has lifted, but that E’s initiatives are bearing fruit.

Management is informing investors of their aggressive plans for the future, which will include some impressive and accretive acquisitions.

Acquisitions Trail

As a result of the recent $20.6 million sale of subsidiary Calgary Tunnelling & Horizontal Augering (CTHA), Enterprise has no debt, a clean $25 million line of credit and a further $15 million for acquisitions. No reason to think that the future ones won’t mirror E’s two past endeavours:

CTHA was purchased in 2013 for $12 million. It generated $60 million in revenue under E’s stewardship and was then sold for $20.6 million as noted.

TC Backhoe was purchased in 2007 for $12 million. Revenues generated until sale; $154 million. TCB was sold in June 2016 for $20 million.

Management owns 21 percent of the outstanding shares and acquired stock all through the previous downturn.

The Company is also in the midst of a roughly 5% share buyback announced in June 2017.

From 2016 Q3 discussion:

the Company is committed to certain service standards for its existing clients, which management believes to be critical for fostering the Company’s longer-term growth. As the Company better understands the economic outlook for 2017 and the likely level of demand for its services, it will adjust its internal infrastructure accordingly.

And it did. And it has, and it will. As management owns over one fifth of the shares, you can be sure shareholders are in extremely motivated and competent hands.

Disclaimer: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is not an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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8020 Admin

3 months

8020 Admin posted a press release Enterprise Equipment Controls & Automation Lowers Costs, Increases Revenues in Enterprise Group Inc.

ST. ALBERT, Alberta, April 25, 2018 (GLOBE NEWSWIRE) — Enterprise Group, Inc. (the “Company” or “Enterprise”) (TSX:E), a consolidator of services to the energy sector; focused primarily on specialized equipment rental, announced today that it has further enhanced its proprietary dispatch & asset tracking software now known as StarChain.” 

The Company is adding a decentralized and distributed ledger to its Equipment to definitively record all machine data as transactions on a secure private network. The recorded data will be verified via the StarChain Module’s and then uploaded to the StarChain Network.

The purpose of StarChain is to monitor location, usage and address repair issues in real time to maximize revenues and vastly lessen equipment downtime from the Company’s extensive pool of rental assets.  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 replacement can be deployed, increasing revenues, efficiency and asset life.

In the past, the client had to inform the Company of issues, the equipment would need to be taken offline and repaired. The technology also ensures the security of the asset against loss, theft or tampering during its deployment.

While the benefits of StarChain for Enterprise are immediate, it also guarantees that clients get superior equipment, service and a new level of control via the “StarChain” client portal, where Site Managers can schedule, report and remote control their rented assets via any connected smart device.

Enterprise’s StarChain is Already Well Ahead of the Curve

The Company sees this technology accomplishment as the baseline for future developments within ‘Industry 4.0’: The current industrial transformation caused by automation, data exchanges, Big Data, A.I. and IoT.  The Company’s evolving technology will exploit smart industry as the foundation for a competitive rental service.

“We investigated the benefits of developing a cost effective digital network and the practical applications that would emerge from its existence. We quickly realized that if we were able develop a low-cost solution that made significant financial sense that we could begin offering a competitive and proprietary rental product which would benefit our business and provide our clients with a unique service,” stated Desmond O’Kell, SVP, Enterprise. “If we want our assets to communicate with each other we first need to give them the ability to talk. The advantages and efficiencies “StarChain” brings to both Enterprise and its client are substantial.”

Enterprise has no plans to sell or license what it sees as an incredible competitive advantage. The technology will be extended to the operations of future acquisitions, this will allow for the significant growth, in size and geographical reach.

The Technology Behind StarChain

Enterprise has developed its solution utilizing a number of technologies. The software is built from Node.js, RethinkDB and Material Design that runs on a customized Linux distro inside the module. The hardware (micro-controller/computer) is built using a similar architecture to the Raspberry PI, providing Enterprise a robust interface to its equipment via GPIO (General Purpose Input Output).

With the module successfully deployed, the current GPS device becomes obsolete, allowing Enterprise to eliminate significant monthly expenses when installed on all our rental assets.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector.  The Company’s focus is primarily on 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, or
Desmond O’Kell, Senior Vice-President
780-418-4400
[email protected]

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.

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gnelson

3 months

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Media Relations

4 months

Media Relations posted a press release Enterprise’s Asset Tracking Software: Margins Up. Costs Down in Enterprise Group Inc.

One of the great things about being an investor is unearthing something that, while logical, is unexpected: But could be a nifty value add to shareholders. Such an example is Enterprise Group’s (E: TSX) proprietary asset tracking software ‘STAR’; critical to maximum use of equipment and most importantly, getting it back.

Experienced investors will note the potential of Industrial equipment rental leader Enterprise Group, not the least of which is that its book value has risen to $1.01 a share and is trading at 44 cents. This growth is just the latest in a successful strategy taken by Enterprise management after weathering the 2014-15 resource downturn. If anything, the company is leaner and stronger now; the result of the recent sale of subsidiary sale of CT Underground for $20.6 million.

The tale of Enterprise’s proprietary ‘STAR’ tracking program is one such story. For those old enough, the software is like Six Sigma on steroids.

Likely the most significant headache/loss/revenue hit haunting all rental businesses (in this case resource and industrial rentals) is the risk of losing a piece of expensive equipment (or several parts that add up to a significant corporate loss.)

Or not realizing maximum usage through inefficient tracking. Given that the security of assets could well be at the whim of client honesty and the weather; pieces lost for a period of time or forever can obviously be costly.

When Enterprise Group (TSX: E) acquired Westar Oilfield Rentals in 2014, one of the assets the company was working on was a business management software, known today as ‘STAR’. Enterprise continued to fund and upgrade the project and found itself with a proprietary asset that is critical to the profitability and cost mitigation of all of its subsidiaries.

Enterprise management currently owns almost 20 percent (just shy of 11 million) of its shares, so investors should not worry about motivation. It intends to be the leader and industrial and resource rental company of choice nationwide.

How E Got Here

Through strategic plans including asset sales, ongoing cost-cutting and sound business decisions E is leaner, more pivotal and have added diversity to its client base. The fact that Enterprise also designs and builds specialty equipment for our clients—15 patents in place with more coming –means that it can be immediately responsive and relevant to address its private or Government customers’ unique needs.

Since January 1, 2018: Key investment metrics evidencing ongoing growth:

– Secured a $9 million Supply and Services agreement with a significant International resource company.

– Q4 2017 revenue $10.7m versus Q4 2016 at $8.3m

– EBITDA Q4 2017 $2.56m versus Q4 2016 $1.87m

– Net Income Q4 2017 $1.1m versus Q4 2016 loss ($9.9m)

– EPS Q4 2017 $0.02 versus Q4 2016 loss ($0.85)

In Q1 2018, Enterprise has secured a $9.1 million contract, sold its CT Underground subsidiary for $20.6 million resulting in virtually complete debt retirement. As well, the Company has an acquisition chest of $15 million loan availability for accretive and complementary companies or assets.

Next? STAR

Financial results of the software use are measurable and impressive:

– Proprietary platform for future development and refinement

– Task and monitoring capabilities saves two significant salaries

– Allows management to plan to deploy company-wide through 3 subs and future acquisitions

– Generates a roughly 30 percent annual cost savings

– Produced a five up to a possible 10 percent margin improvement

– One of the Company’s impressive value propositions over competitors

– No plans to license; to remain a corporate asset.

– Not aware of any competitive software

The software tracks assets, which in itself cuts costs, utilizing the location and site ID put directly on the invoice. The system always knows where the asset is, and fleet managers confirm that on delivery.

This approach keeps the customer up and running and ensures other expended revenue and protection of the asset. The key is the development of about 18 modules that work together and exchange information over a central database; all laid out in a very user-friendly navigational format.

“With the components developed, we began process mapping our existing business operations. As a result, we were able to considerably reduce our administrative costs by automating many of the human elements,” stated Des O’Kell SVP of Enterprise Group. “Furthermore, with its implementation, the cost benefits that emerged from asset tracking are substantial.”

Enterprise is not the same Company that went into the 2015 resource downturn.

All Cylinders Firing

Throughout 2017, Enterprise 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.

Management’s efforts to streamline and maximize efficiencies have translated into improved margins, decisive cash-flow quarter after quarter and a return to profitability in Q3 2017.

Management feels that Enterprise is within a very select group of producers and service providers that have aggressively adapted their organizations to operate successfully in the current commodity price environment.

With 2018 starting out with impressive strength, the Company has many other initiatives and strategic business plans to execute, particularly in further debt reduction, potential acquisitions and expansion beyond Western Canada.

With the calculated diversification of its customer base over the last three years, the Company has further mitigated market risk and is exploring substantial development opportunities to grow and enhance shareholder value.

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