Alberta-based Enterprise Group, a consolidator of construction service companies operating in the energy, utility and transportation infrastructure industries with a growing equipment rental portfolio, posted a significant first quarter revenue increase. Quarterly revenue of CDN $21.1 million (about U.S. $19.5 million) was a $12.2 million increase compared to the previous year because of the impact of the company’s acquisitions as well as strong demand for the company’s services.
On Jan. 3, Enterprise completed its acquisition of Hart Oilfield Rentals for $22.6 million. Hart specializes in rental of items such as well-site trailers, fuel tanks, light towers, system scaffolding and potable water tanks. Hart augments Enterprise’s rental holdings, which include EOne Ltd., which specializes in the rental of excavators, dozers and pipe-laying equipment.
The company also completed equity financing of 27.6 million common shares at $1 per common share for aggregate gross proceeds of $27.6 million.
“Enterprise’s results for the first quarter represent a strong start to what we believe will be a very exciting year for our business,” said Leonard Jaroszuk, Enterprise CEO. “These results demonstrate both the benefit of our selective acquisition strategy and the healthy economic environment, which continues to increase demand for our services.
“The capital raised during the first quarter will allow us to execute upon investments that will significantly increase Enterprise’s operating capacity. As our equipment fleet grows, we expect to improve not only our revenue, but also our profitability. As a result, I have great confidence in our ability to continue Enterprise’s pattern of growth both through 2014 and beyond.”
Enterprise’s equipment rental division generated first quarter revenue of $12.6 million, an increase of $7.6 million year over year. The improvement was primarily the result of the acquisition of Hart. The division’s EBITDAS margin of 47 percent reflects a change in revenue mix and is expected to improve as new capital assets are purchased and subcontracted equipment is replaced.
Enterprise Group, which also includes Calgary Tunnelling, a horizontal augering company; TC Backhoe & Directional Drilling, specializing in utility and pipeline construction; and Arctic Therm, is based in St. Albert, Alberta, Canada.