E Enterprise Group Inc

Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX:E) is pleased to
announce its financial results for the year ended December 31, 2013.


2013 HIGHLIGHTS



--  Revenue of $34.8 million, an increase of $16.3 million when compared to
    prior year, primarily due to strong contributions from the Company's
    Utilities/Infrastructure Division. 
    
--  EBITDAS of $10.0 million, an increase of $5.6 million when compared to
    prior year. 
    
--  Earnings per share of $0.08, an increase of $0.04 when compared to prior
    year. 
    
--  Subsequent to the conclusion of the year end, on January 3, 2014, the
    Company completed its acquisition of Hart Oilfield Rentals ("Hart") for
    a purchase price of approximately $22.6 million. 
    
--  Also subsequent to the conclusion of the year end, 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 $27,600,000.  
    

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SUMMARY FINANCIAL OVERVIEW                                                  
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                                      For the year ended                   
In millions except for EPS                December 31                       
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                                  2013        2012       % chg  % of Revenue
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Revenue                         $ 34.8      $ 18.5         88%              
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EBITDAS(1)                        10.0         4.3        130%           29%
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Net Income                         5.8         2.5        132%           17%
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EPS                               0.08        0.04           -              
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% change are representative of whole un-rounded numbers                     
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(1) EBITDAS = Earnings Before Interest, Tax, Depreciation, Amortization, and
Stock Based Compensation                                                    



Enterprise's year end results are highlighted by a material increase in revenue
when compared to the prior year. This improvement was primarily due to the
strong performance of the Company's Utilities/Infrastructure Division, which
generated year end revenues of $26.6 million, an increase of $11.4 million when
compared to the prior year. This increase can be attributed to the acquisition
Calgary Tunnelling & Horizontal Augering Ltd. ("CTHA") in June 2013, as well as
expansion of Enterprise's service equipment fleet, which has allowed the Company
to both increase its capacity and attract projects from major customers. 


Over the year ahead, Enterprise expects that the performance of its
Utilities/Infrastructure Division will continue to improve. During 2013, this
Division renewed a three year, multi-million dollar service contract with one of
Canada's premier power suppliers and, due to the high level of service and
quality of work, was also awarded a second contract from the same customer that
is similar in size and scope. Enterprise also expects significant growth from
T.C. Backhoe and Directional Drilling ("TC"). In January 2014, TC entered into a
Master Service Agreement to provide hydro-vac services for a joint venture
project between a major oil company and one of North America's largest energy
companies. TC also increased the scope of its Master Service Agreement with one
of North America's largest pipeline and natural gas companies, which was
previously announced on October 25, 2013. In total, these agreements are
expected to generate $5.5 million in revenue over the next 24 months. In order
to service these agreements, the Company has deployed new personnel and
equipment, in addition to ordering a further three hydro-vacs. Management's
capital plan allocates the funds necessary to double the hydro-vac fleet during
2014 to 20 units from ten units at the end of 2013. 


These contracts are evidence of the growing demand for quality work within
Enterprise's markets, and the backlog of projects that has developed as a
result. In order to satisfy this demand, Enterprise intends to significantly
expand its service and rental fleet over the course of 2014. The Company's
capital budget for the year is approximately $20.0 million, and includes: 




i.  approximately $3.0 million towards the expansion of underground utility
    and tunnelling equipment; 
ii. approximately $2.0 million towards the expansion of the utility hydro-
    vac fleet; and 
iii.approximately $15.0 million towards acquiring additional oilfield
    service rental equipment and flameless heaters. 



"Enterprise's impressive year end results clearly illustrate the benefit of our
selective acquisition strategy," stated Leonard Jaroszuk, the Company's Chief
Executive Officer. "CTHA continued to play a major role in improving our
revenues, and its contributions are testament to both the quality of its service
offerings and the effective manner in which it has been integrated into our
overall business. Integration has emerged as a core competency for Enterprise,
and we have already begun to apply ourselves to the inclusion of Hart Oilfield
Services. We expect that this acquisition will be immediately accretive, expose
Enterprise to new strategic markets, and create the opportunity for efficiencies
within our existing businesses." 


"We fully expect that Enterprise will continue its trend of improvement during
2014," concluded Mr. Jaroszuk. "Our markets continue to display economic growth,
and we are eager to increase our capacity in order to satisfy the growing demand
for our high-quality services. In particular, we intend to devote the majority
of our capital towards the acquisition of additional oilfield service rental
equipment and flameless heaters, an area that we believe presents outsized
potential. We believe the expansion of our service and rental fleets will allow
Enterprise to not only continue its revenue momentum over the course of the year
ahead, but also allow a greater portion of this revenue to translate into
EBITDAS. I look forward to communicating our progress throughout the year." 


SUBSEQUENT EVENTS 

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
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,
the Company 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, the Company 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.



FOR FURTHER INFORMATION PLEASE CONTACT: 
Assembly Stakeholder Relations
Candace Williams or Christy Strashek
780-328-3863


Enterprise Group, Inc.
Leonard D. Jaroszuk
President & CEO
780-418-4400


Enterprise Group, Inc.
Desmond O'Kell
Senior Vice President
780-418-4400
contact@EnterpriseGRP.ca
www.EnterpriseGRP.ca

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