ST. ALBERT, ALBERTA--(Marketwired - May 13, 2014) - Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX:E) is pleased to announce its financial results for the three month period ended March 31, 2014 ("the first quarter"). Enterprise's strong first quarter results reflect both the successful execution of the Company's acquisition strategy and growing demand for the Company's services.

FIRST QUARTER HIGHLIGHTS

• Record quarterly revenue of $21.1 million, an increase of $12.2 million when compared to the prior year, due to both the impact of Enterprise's acquisitions and strong demand for the Company's services.
• Record quarterly EBITDAS of $7.0 million, an increase of $3.1 million when compared to the prior year.
• On January 3, 2014, the Company completed its acquisition of Hart Oilfield Rentals ("Hart") for a purchase price of approximately $22.6 million.
• On March 25, 2014, the Company completed a bought deal equity financing of 27,600,000 of its Common Shares at a price of $1.00 per Common Share for aggregate gross proceeds of $27.6 million.

Enterprise's first quarter results are highlighted by a significant increase in revenue, reflecting both a strong demand for the Company's services and the positive impact of acquisitions within both of the Company operating divisions. While the Company's EBITDAS also witnessed a significant improvement, EBITDAS margin decreased as a result of the change in revenue mix created by the acquisitions. The Company's earnings per share decrease slightly, partially as a result of $550,000 in one-time costs related to the acquisition and integration of new subsidiaries and adjustments to operational infrastructure.

Enterprise remains on track to deploy $20 million of capital expenditures over the course of 2014. These capital expenditures are intended to create improvements in both the Company's revenue and operating margins. Management believes these improvements will be reflected in the Company's operating results during the second half of 2014.

"Enterprise's results for the first quarter represent a strong start to what we believe will be a very exciting year for our business," stated Leonard Jaroszuk, the Company's Chief Executive Officer. "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," concluded Mr. Jaroszuk. "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. I look forward to communicating our progress."

Utilities/Infrastructure Division

Enterprise's Utilities/Infrastructure Division generated first quarter revenue of $8.5 million, an increase of $4.6 million when compared to the prior year. This improvement can be attributed to the acquisition Calgary Tunnelling & Horizontal Augering Ltd. ("CTHA") in June of 2013, an increase in activity, and the expansion of Enterprise's service equipment fleet, which has allowed the Company to both increase its capacity and attract projects from major customers. This division's EBITDAS margin of 28% reflects both a change in revenue mix due to the acquisition of CTHA and an increased use of third-party equipment necessitated by strong demand at T.C. Backhoe. This metric is expected to improve is expected to improve as new capital assets are purchased and subcontracted equipment is replaced. Enterprise's capital plan allocates the funds necessary to increase its hydrovac fleet to 20 units by the conclusion of 2014.

Equipment Rental Division

Enterprise's Equipment Rental Division generated first quarter revenue of $12.6 million, an increase of $7.6 million when compared to the prior year. This improvement was primarily due to the acquisition of Hart at the beginning of the first quarter. This division's EBITDAS margin of 47% reflects a change in revenue mix due to the acquisition of Hart, and is expected to improve as new capital assets are purchased and subcontracted equipment is replaced. Revenue from the Company's flameless heater fleet continued to be impacted by delays to certain projects that should recommence during the latter half of 2014.

Major Developments

On January 3, 2014, Enterprise completed its acquisition of Hart, a private oilfield equipment service provider, for a purchase price of $22.6 million, subject to closing adjustments. Hart is a full service oilfield site infrastructure company that provides both site services and equipment rentals to its oil and gas customers within the Western Canadian Sedimentary Basin. Hart's equipment fleet consists of approximately 1,500 owned pieces and an additional 500 pieces that have been rented in order to fulfill demand. During December of 2013, in order to fund this acquisition, the Company completed an overnight market public offering of subscription receipts at a price of $0.72 per subscription receipt for gross proceeds of approximately $15.0 million. The purchase price for the acquisition was satisfied through a combination of the net proceeds from this public offering, the issuance of 1,388,890 common shares of the Company at a price of $0.72 per share, and funds available from the Company's credit facility.

Also on January 3, 2014, in conjunction with the close of the Hart acquisition, Enterprise accepted a term sheet presented by the Canadian branch of PNC Bank. This term sheet allowed the Company to increase its current senior secured finance facility from $20.0 million to a maximum of $35.0 million, subject to certain borrowing base restrictions, at the existing interest rate of prime plus 2%.

On March 25, 2014, Enterprise completed a bought deal equity financing of 27,600,000 common shares of the Company, which included 3,600,000 Common Shares issued pursuant to the exercise in full of the financing's over-allotment option, at a price of $1.00 per common share for aggregate gross proceeds of $27.6 million. The Company has issued 1,380,000 broker warrants to the Underwriters. Each broker warrant will entitle the holder to acquire one common share at an exercise price of $1.00 per share for a period of 24 months from the date of closing. The net proceeds will be used to accelerate the Company's capital expenditure program, as articulated above, as well as for general working capital purposes.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries. The Company's focus is primarily construction services and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management, and human resources to support continued growth. Enterprise acquired of Artic Therm International Ltd. in September 2012, Calgary Tunnelling & Horizontal Augering Ltd. in June 2013, and Hart Oilfield Rentals in January 2014.

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"). EBITDAS is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-IFRS measure. This news release contains references to EBITDAS. This non-IFRS measure used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, EBITDAS is a useful supplemental measure as it provides an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed or how the results are taxed. EBITDAS is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.