ST. ALBERT, Alberta, May 23, 2007 (PRIME NEWSWIRE) -- Mr. Leonard D. Jaroszuk, President/CEO of Enterprise Oil Limited (Other OTC:ETOLF) (TSX-V:EON), is pleased to report financial results for the second quarter of fiscal year 2007, for the period ended March 31, 2007.
The Company realized its highest ever quarterly revenue of $18,843,200 compared to revenue of $14,323,496 for the same period in 2006 representing a 32% increase. The Company had EBITDAS(1) of $3,720,337 while realizing a net income of $2,117,643 or $0.08 per share (basic) for its second quarter of operations, ended March 31, 2007 compared to EBITDAS of $3,862,095 and a net income of $2,287,852 for the same period in 2006. Assets grew substantially to $45,108,535 compared to $24,551,777 as reported at September 30, 2006.
Enterprise is fully committed to its strategy of acquiring mature and profitable businesses and achieving organic growth through continuous investment in equipment and manpower. As a result, the Company commenced incurring higher general and administrative expenses in the fourth quarter ended September 2006. The increase was necessary to develop the infrastructure and management team to complete due diligence necessary for future acquisitions and to also meet higher corporate governance requirements. General and administrative expenses were $1,028,179 for the three month period ended March 31, 2007 compared to $376,450 for the three month period ended March 31, 2006, representing an increase of $651,729.
Enterprise Oil Limited is also looking forward to the financial contribution of its most recent acquisition; T.C. Backhoe & Directional Drilling Inc. The acquisition, which was effective April 1, 2007, will substantially enhance the Company's revenue and EBITDAS throughout the year and also expand the customer base to include Canada's largest power, telecommunications and natural gas providers. Management has also identified another potential acquisition target and has initiated preliminary negotiations.
Enterprise Oil Limited is an energy services company operating in the pipeline construction industry. The Company's focus is small to medium diameter pipeline construction, primarily on steel gathering systems up to 12" in diameter. The Company's strategy is to acquire small to mid-size pipeline construction and complementary service companies in central and northern Alberta, consolidating capital, management and human resources to support continued growth.
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(1) EBITDAS = earnings before interest, taxes, depreciation, amortization, stock based compensation.
Forward Looking Statements
This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
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