ST. ALBERT, ALBERTA--(Marketwired - Nov. 11, 2016) - Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX:E) is pleased to announce its financial results for the three and nine month periods ended September 30, 2016 (the "third quarter").

On July 7, 2016, Enterprise Group Inc., closed a transaction to divest substantially all of the assets of T.C. Backhoe & Directional Drilling Ltd. Gross cash proceeds from the transaction was $16,890,400 plus $2,948,026 of working capital for a total of $19,838,426. Working capital is being paid out over three payments with the last payment due January 15, 2017. All proceeds from the transaction will be deployed towards reducing the Company's debt. 

Revenue declined 37% to $6,551,285 for the three months ended September 30, 2016. Revenue declined 38% to $20,396,939 for the nine months ended September 30, 2016. The decrease was due to:

• Severe decline in activity of the energy industry, triggered by the reduction in oil prices over the last 27 months;
• Pricing reductions; and
• Numerous project delays due to economic uncertainty.

EBITDA declined to $726,833 and $2,024,134 for the three and nine months ended September 30, 2016 as a result of the same factors that drove revenue decreases. While Enterprise has taken numerous measures to reduce the Company's cost structure, it remains committed to the highest service levels.

Pricing pressure and workflow reductions continued in the third quarter of 2016. Visibility remains limited for the remainder of 2016 and into 2017, and its customers remain cautious. To address these challenges, the Company is streamlining costs where appropriate, however, the Company is committed to certain service standards for its existing clients which management believes to be critical for fostering the Company's longer-term growth. As the Company better understands the economic outlook for the remainder of 2016 and into 2017, and the likely level of demand for its services, it will adjust its internal infrastructure accordingly.

"Considering the economic landscape, we're satisfied with Enterprise's results for the third quarter," stated Leonard Jaroszuk, the Company's President, Chairman, and CEO. "These results illustrate how Enterprise's focus on client service has allowed our business to successfully combat a challenging operating environment."

"These challenges persist, and we are maintaining a cautious outlook. However, we are beginning to achieve some meaningful successes along the way. We have added several new clients to our roster, we have streamlined our business through the divestiture of non-core assets, and we enjoy a secure financial position. Furthermore, during the third quarter the Company renewed its loan facility with PNC Bank for another 3 years under terms and conditions that better reflect the current economic environment. This renewal provides us with the critical flexibility necessary to consider any opportunities that may arise, either organically or externally. All of these factors give me great confidence in Enterprise's prospects for growth, and our ability to deliver value to our loyal shareholders as we move forward."

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. Also, today's filings can be found on www.sedar.com

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.