2003 Annual Report - Enerflex

People!Talented people.Skilled people.Motivated people.letterto shareholdersFeroze AnsariProposal TechnicianPowerAnnual reports are largely about numbers and we are pleasedto share the improvements in our financial results with you inthis report.Our results for 2003 were a substantial improvement over a challenging2002 for our industry and for Enerflex. A complete discussion of ourfinancial results is contained in the Management’s Discussion and Analysis of thisAnnual Report. Highlights for 2003, which includes a full year of operations fromthe former EnSource businesses, acquired on July 18, 2002, include a:• 121% increase in net income to $20.4 million ($0.91 per diluted share)compared with $9.2 million ($0.51 per diluted share) in 2002.• 58% increase in revenue to $515.5 million compared with $326.7 millionin the prior year.• $19.9 million reduction of short and long-term bank debt, net of cash,from $109.2 million at the end of 2002 to $89.3 million on December 31,Enerflex hasbeen profitablein every yearsince it becamepublicly tradedin 1993.2003. Following the EnSource acquisition, the Company’s debt peaked atover $130 million.We are proud of our achievements over the course of the past year, butrecognize that there remain significant opportunities to improve in the future. Thepeople of Enerflex are confident that our restructuring in 2003 will deliver strongresults in 2004 and beyond.Enerflex is not just about numbers – it’s about the people who strive to satisfyour customers every minute of every day in every country that we serve. Our2003 Annual Report is dedicated to our employees. Their commitment to customerservice creates value for our shareholders, which is reflected in our results.Enerflex 2003 Annual Report11