ST. ALBERT, ALBERTA--(Marketwired - May 14, 2015) - Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX:E) is pleased to announce its financial results for the three month period ended March 31, 2015 (the "first quarter").

Enterprise recorded revenue of $20.2 million and EBITDA of $4.4 million during the first quarter, decreases of $0.9 million and $2.7 million, respectively, when compared to the prior year. While demand from the Company's existing customer base remained stable during the first quarter, revenue was impacted by both discounted rates and warmer than average weather. The impact of these factors also served as the primary drivers of the decrease in the Company's EBITDA.

"Enterprise has adapted quickly to what it appears will be a challenging year for many resource-based businesses," stated Leonard Jaroszuk, Enterprise's Chief Executive Officer. "The decline in energy prices over the second half of 2014 has created a significant change in our operating environment, particularly in regards to our Equipment Rental Services division. As mentioned during the last quarter, we have responded to this uncertainty by implementing pricing adjustments for our oil and gas clients to align our offerings with those of our industry peers. During the first quarter, these pricing adjustments were the primary driver of not only a decline in revenue within this division, but also a decrease in its EBITDA. Furthermore, while our pricing adjustments have so far allowed us to successfully sustain demand for this division's services, we have less certainly of revenues in the second half of this year.

"Enterprise has adopted a conservative approach to our capital expenditures, ensuring the integrity of our balance sheet even in a protracted challenging operating environment. This caution has also been applied to our operations. We have intensified our ongoing review of, and commitment to, both operational discipline and cost control. During the first quarter, we took the difficult step of reducing the headcount at our Rental division by approximately 25%, in addition to reducing the salaries of several senior management personnel. We have also taken steps towards streamlining the cost structure of our Utilities/Infrastructure Services division, despite the fact that its business is less sensitive to energy price variations. This division is now under the guidance of a new management team that we believe will push this division to achieve greater growth and profitability in the coming years. These proactive measures will ensure that Enterprise is not just protected from the challenges 2015 may present, but also prepared to take advantages of any opportunities that may arise as a result of this uncertain environment."

Utilities/Infrastructure Division

The Utilities/Infrastructure Services division includes operations for T.C. Backhoe & Directional Drilling Ltd. ("TCB") and Calgary Tunnelling & Horizontal Augering Ltd. ("CTHA").

Enterprise's Utilities/Infrastructure division generated revenue of $8.2 million during the first quarter, a decrease of $0.3 million when compared to the prior year. During the quarter, the Company successfully began drilling under the Bow River in Calgary, completing the tunneling portion of this project in early April. This marked the successful completion of the Company's first project with the Direct Pipe System, and as a result is expected to create an opportunity to pursue more substantial projects across Western Canada.

The Utilities/Infrastructure division generated EBITDA of $1.1 million during the first quarter, a decrease of $1.3 million when compared to the prior year. This decline was primarily due to various project delays at CTHA, as well as additional costs associated with the Direct Pipe project. These issues are not expected to impact the second quarter of 2015. During the first quarter, the Company also resolved previously identified cost issues at TCB that related to repairs and maintenance, fleet expansion, and third-party rentals. As a result, the Company anticipates that EBITDA margins within the Utilities/Infrastructure division will return to historical levels by the second quarter of 2015.

Equipment Rental Division

The Equipment Rental Services division includes operations for Artic Therm International Ltd., Hart Oilfield Rentals Ltd. ("Hart"), and Westar Oilfield Rentals Ltd. ("Westar").

Enterprise's Equipment Rental division generated revenue of $12.0 million during the first quarter, a decrease of $0.6 million when compared to the prior year. This decline was primarily due to discounted rates for the Company's services, as well as by the warmer than average weather and associated early arrival of spring break-up and road bans. These factors were only partially offset by the additional revenue provided by the acquisition of Westar.

The Equipment Rental division generated EBITDA of $4.5 million during the first quarter, a decrease of $1.4 million when compared to the prior year. This decline was primarily due to the same factors that impacted revenue. Discounted rates had a particularly pronounced impact on EBITDA due to a lack of an associated decrease in the Company's related expenses, while the warmer weather had a particularly pronounced impact on the demand for flameless heaters, which produce the greatest margins within this division.

In response to both the EBITDA decline and limited visibility regarding for this division's services over the second half of 2015, the Company has both reduced divisional headcount by approximately 25% and implemented salary reductions at the senior management level.

Balance Sheet

Cash provided by operating activities in the first quarter was $3.0 million. This contributed to a quarter end balance of $10.9 million in cash and cash equivalents.

Total loans and borrowing at the end of the first quarter were $56.3 million, including finance lease liabilities. Of this $56.3 million, Enterprise's current portion of loans and borrowings is $10.3 million, including $7.0 million in finance lease liabilities. Aside from $1.6 million in outstanding convertible debentures that mature in May and $1.3 million of outstanding vendor take-back loans due in June and October, the Company faces no material debt maturities in 2015.

Conference Call Information

Enterprise will host a conference call for investors and analysts today, May 14, 2015, at 5:00 PM Eastern, in order to review the financial results for the period ended March 31, 2015. To participate in the conference call, please dial 416-340-2218 or toll free at 866-225-0198.

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, Hart Oilfield Rentals in January 2014, and Westar Oilfield Rentals Inc. in October 2014. More information is available at the Company's website, www.enterprisegrp.ca.

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.