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ENERFLEX Enerflex Announces First Quarter 2021 Financial Results and Quarterly Dividend CALGARY , Alberta , May 05 , 2021 ( GLOBE NEWSWIRE ) -- Enerflex Ltd. ( TSX : EFX ) ( " Enerflex " or " the Company " or " we " or " our " ) , a leading supplier of products and services to the global energy industry , today reported its financial and operating results for the three months ended March 31 , 2021 . Summary Table of First Quarter of 2021 Financial and Operating Results ( Unaudited ) ( $ Canadian millions , except per share amounts , horsepower , and percentages ) Revenue Gross margin EBIT EBITDA ( 1 ) Net earnings Adjusted EBITDA ( 2 ) Earnings per share - basic Recurring revenue growth ( 3 ) ( 4 ) Bookings Backlog ( 4 ) Rental horsepower Three months ended March 31 , 2021 2020 Change 203.2 $ 365.7 $ ( 162.5 ) 49.5 93.7 ( 44.2 ) 6.6 50.0 ( 43.4 ) 27.7 70.8 ( 43.1 ) 29.6 66.6 ( 37.0 ) 3.0 37.4 ( 34.4 ) 0.03 0.42 ( 0.39 ) ( 6.7 ) % 0.7 % 98.7 155.4 ( 56.7 ) 169.4 767,842 397.8 ( 228.4 ) 686,554 81,288 ( 1 ) Earnings Before Interest ( Finance Costs ) , Income Taxes , Depreciation , and Amortization ( " EBITDA ” ) is considered a non- IFRS measure , which may not be comparable with similar non - IFRS measures used by other entities . ( 2 ) Adjusted EBITDA is a non - IFRS measure . Please refer to the full reconciliation of these items in the Adjusted EBITDA section . ( 3 ) Recurring revenue is comprised of revenue from the Service and Rentals product lines , which are typically contracted and extend into the future . While the contracts are subject to cancellation or have varying lengths , the Company does not believe these characteristics preclude them from being considered recurring in nature . Growth in recurring revenue is calculated over the comparative period . ( 4 ) Engineered Systems bookings and backlog are considered non - IFRS measures that do not have standardized meanings as prescribed by IFRS , and are therefore unlikely to be comparable to similar measures used by other entities . " Enerflex's manufacturing facilities , rental , BOOM , and service operations have continued operating safely and reliably throughout the quarter . Highlights of the first quarter include a modest increase in Engineered Systems backlog and steady cash flow generation from our global natural gas and power assets . A quarterly decrease in recurring revenue was driven largely by a seasonal decrease in aftermarket service in North America that was partially caused by the unseasonably cold weather experienced in Texas in February , " said Marc Rossiter , Enerflex's President and Chief Executive Officer . " The increase in backlog in the quarter is good news , although we would caution against seeing it as a firm signal of an inflection point in the market . Our pipeline of new opportunities is slowly improving in both quality and quantity , but North American oil and gas operators continue to exhibit a cautious approach to growth capex . The same operators are exhibiting an increasing level of interest in de - carbonizing the core of their operations . This is an encouraging theme and a growing market that Enerflex will be able to serve in the years to come . " Quarterly Overview • Operating income was lower than the prior year , primarily due to reduced Engineered Systems revenue on lower bookings in recent periods , driven by uncertainty around commodity price stability and the ramifications of COVID - 19 , as well as the reduced contribution from certain large , high margin Engineered Systems projects that were largely completed by the third quarter of 2020. These impacts were partially offset by the increased contribution from higher margin recurring revenue product offerings . SG & A in the quarter was lower due to decreased compensation expense on reduced headcount , decreased profit share on lower operational results , cost recoveries related to government assistance programs , and lower travel costs , partially offset by higher share - based compensation on the increase of the Company's share price during the first quarter . This movement in share price resulted in $ 5.3 million of share - based compensation in the quarter , compared to $ ( 5.1 ) million in the first quarter of 2020 - a net increase of $ 10.4 million