Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) is a consolidator of energy services (including specialized equipment rental to the energy/resource sector), emphasizes technologies that mitigate, reduce, or eliminate CO2 and Green House Gas (GHG) emissions for small local and Tier One global resource clients released Q1 2023 earnings.
And they are spectacular. Take a second to digest. The numbers speak volumes for future growth.
| Three months Mar 31, 2023 | Three months Mar 31, 2022 | FY 2022 (audited) | |||||||
| Revenue | $ | 10,008,332 | $ | 7,629,418 | $26,892,249 | ||||
| Gross margin | $ | 5,099,298 | 51% | $ | 3,521,822 | 46% $10,879,928 | |||
| Adjusted EBITDA(1) | $ | 4,392,685 | 44% | $ | 3,029,861 | 40% $8,149,223 | |||
| Net and comprehensive income | $ | 2,801,335 | $ | 1,678,048 | $2,275,495 | ||||
| Income per share – Basic | $ | 0.06 | $ | 0.04 | $0.05 | ||||
| Income per share – Diluted | $ | 0.06 | $ | 0.03 |
For more context of today’s earnings announcement’s power, comparing Q1 2023 to FY 2022 is helpful.
Unconventional but very simple, it further emphasizes the exceptional nature of the Company’s Q1 numbers.
- Revenue Q1 2023/FY 2022 =$10 million versus $27 million (Q1 2023 = 40% of FY 2022)
- Net Income Q1 2023/FY 2022 = $2.8. million versus $2.28 million (Q1 2023 exceeds FY 2022 by 20%)
And here is the real kicker.
Earnings of $0.06 a share for Q1 2023 and $0.05 for FY 2022.
Make no mistake; the Company has delivered impressive results for the last five quarters. The growth trend will likely continue.
Bottom Line
These earnings should make investors and shareholders sit up and take notice: Enterprise is firing on all cylinders.
Given the rise in Capex spending and the growth of the resource industry as the ‘Green Economy’ gets underway over the next several years, Enterprise is in the right spot.
“The oil and gas CAPEX market size was around USD 502 billion in 2020, and it is anticipated to reach around USD 942 billion in 2027, registering a CAGR of around 8.1% during the forecast period 2022-2027…Hence, to meet the strong global demand for crude oil and natural gas, more investment is required for exploration and production activities, which in turn promulgates the CAPEX in the oil and gas industry. (researchandmarkets.com)
As well, its senior officers, including CEO and President Leonard Jaroszuk, have embarked on a cross-country tour, visiting investors, financial professionals and others involved in the capital markets to emphasize the growth and potential of the Enterprise.
So far, so good.
Even a cursory examination of Enterprise proves it is exceptionally well positioned to continue this compelling revenue growth.
Stay caught up.
Bob Beaty
For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s Thestreet.com, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.
Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)
Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;
‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.
Let’s go.
