Enterprise Oilfield Group Notes 2008 Year-End Financial Results
In 2008, the Enterprise Oilfield Group realized revenue of $39.8 million for the 12 months ended December 31, 2008 versus $47.3 million for the 15 month period ended December 31, 2007.
For the three months ended December 31, 2008, the Company's revenue increased by 11.4% to $11.7 million compared to $10.5 million for the same period in the prior year. The revenue for the year ended December 31, 2008 dropped by $2.8 million, 6.6%, when compared to the last four quarters of 2007. This drop in revenue is attributed to the first quarter of 2008 which had less than anticipated projects in the industry. The Company had EBITDAS of $5.2 million and a net loss of $12.3 million during the twelve month period ended December 31, 2008 compared to EBITDAS of $5.9 million and net earnings of $0.9 million for the fifteen month period ended December 31, 2007.
Enterprise had EBITDAS of $1.0 million and a loss of $13.6 million during the three month period ended December 31, 2008 compared to EBITDAS of $1.4 million and a loss of $0.5 million for the three month period ended December 31, 2007. Earnings in 2008 were negatively impacted by the write down of $15.1 million of goodwill due to impairment charges. This write down of goodwill is non-cash in nature and does not affect our liquidity or cash provided by operating activities and will not impact future operations. Excluding the goodwill write down, the Company generated net income for the year of $1.1 million in 2008 compared to net income of $0.9 million in 2007.
Enterprise Oilfield Group, Inc. 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 Western Canada, consolidating capital, management and human resources to support continued growth.