Enterprise Group, a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries, with a growing equipment rental segment, posted a 194-percent increase in revenue in the second quarter, along with improving EBITDA margins driven by acquisitions as well as organic growth for its core services.
In addition to its improving financial results, Enterprise signed a letter of intent to acquire a privately owned oilfield site service rental company in British Columbia. The company also remains on track to deploy $20 million in capital expenditures it planned in 2014. Management expects the acquisition and capital expenditures to improve its revenue and operating margins.
Enterprise posted $14.1 million in quarterly revenue, compared to $4.8 million in the second quarter of 2013, primarily as a result of acquisitions. EBITDA for the quarter was $2.6 million, compared to break-even in the year-ago period.
The company’s acquisition is of a site-services rental company based in Fort St. John, B.C., Canada. Enterprise expects to complete this acquisition by October.
Enterprise’s equipment rental division generated$5.8 million, compared to $600,000 a year ago, primarily as a result of the acquisition of Hart Oilfield Rentals at the beginning of the first quarter. The currently pending acquisition will further boost Enterprise Group’s rental presence in Western Canada.
“We are satisfied by Enterprise’s results for the second quarter, which once again demonstrates the benefits of our selective acquisition strategy,” said Leonard Jaroszuk, CEO. “Seasonal demand is historically much higher during the latter half of the year, and Enterprise is ideally positioned to service this demand. Our capital spending over the course of 2014 has significantly increased our operating capacity. That capacity will grow further upon completion of our recently announced acquisition. The Fort St. John region is a critical area in the development of Western Canada’s LNG industry.”
Enterprise Group, based in St. Albert, Alberta, Canada, has a strategy to acquire complementary service companies in Western Canada. It has acquired Arctic Therm International in Sept. 2012, Calgary Tunnelling & Horizontal Augering Ltd. in June 2013, and Hart Oilfield Rentals Ltd. in Jan. 2014.