Monday, March 5, 2012

CUQ - <span class="simulate_din_font">The Churchill Corporation Reports 2011 Annual Results</span> (CAD 0.12)

Company: Churchill Corp A
Stock Name: CUQ
Amount: CAD 0.12
Announcement Date: 06/03/2012
Record Date: 28/03/2012

Dividend Detail:

Reports Record Backlog and Industrial Earnings, Declares Quarterly

CALGARY, March 6, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ) (TSX: CUQ.DB) ("Churchill" or the "Corporation") today released its 2011 annual and
fourth quarter results and declared a quarterly dividend of $0.12 per
common share. Backlog increased 18% to a record $1,842.6 million as of
December 31, 2011, compared to $1,555.0 million on December 31, 2010,
providing excellent visibility of future revenue and earnings sources.
Revenue for 2011 was $1,409.2 million compared to $1,183.9 million in
2010, a 19% increase. Annual earnings before interest, taxes,
depreciation and amortization ("EBITDA") were $72.0 million in 2011,
compared to $71.8 million reported in 2010. Net earnings were $24.9
in 2011, compared to $34.2 million recorded in 2010, as
increased interest, depreciation and amortization, associated with
assets acquired in 2010 and 2011, were partially offset by reduced

The dividend will be paid April 17, 2012 to shareholders of record on
March 30, 2012. The ex-dividend date is March 28, 2012. The Corporation
has a dividend reinvestment plan in place for which details are
available on Churchill's website (


  • Churchill reported record backlog of $1.84 billion.

  • The Industrial Services segment, consisting of Laird Electric Inc.
    ("Laird Electric"), Laird Constructors Inc. ("Laird Constructors"),
    Insulation Holdings Inc. ("Insulation Holdings") and Broda Construction
    Inc. ("Broda"), secured many large contracts in 2011, setting new
    records in revenue, earnings and backlog. Churchill also furthered the
    segment's bundled service offering strategy with the establishment of
    Churchill Services Group ("CSG") with David LeMay, who was President
    and COO of Laird Electric, as President, effective January 1, 2012. CSG
    will lead new business origination related to integrated products and
    services on behalf of Churchill's Industrial Services segment and
    Stuart Olson Dominion's industrial building activities.

  • In 2011, Canem Holdings Ltd. ("Canem"), which forms Churchill's
    Commercial Systems segment, expanded its footprint into Manitoba with
    the acquisition of McCaine Electric, expanded its service offering with
    the opening of its Centre for Building Performance, and won several
    major electrical and data systems contracts.

  • Stuart Olson Dominion Construction Ltd. ("Stuart Olson Dominion"), which
    forms Churchill's General Contracting segment, bolstered its presence
    throughout Western Canada in 2011 with several major new projects in
    the institutional and commercial construction sectors and entered the
    industrial buildings market with $40 million of new projects.










Year Ended December 31

3 Months Ended December 31

($millions, except per share amounts)






Contract revenue


$ 1,409.2

$ 1,183.9

$ 384.3

$ 391.4

Contract income






EBITDA from continuing operations






Net earnings






Net earnings per common share

- Basic






- Diluted









As of Dec. 31, 2011

As of Dec. 31, 2010





$ 1,842.6

$ 1,555.0

Long-term debt (excluding current portion)






Convertible debentures (excluding equity portion)






Total assets






2011 financial results are presented in conformance with International
Financial Reporting Standards ("IFRS") and prior year results have been
restated accordingly. All figures are in Canadian dollars unless
otherwise noted. Certain financial and operational measures referred to
in this press release, including "EBITDA" and "backlog", are not
prescribed under IFRS. For a description of these measures, see the
Terminology section in Churchill's annual 2011 management discussion
and analysis ("MD&A").

  • Backlog of $1,842.6 million as of December 31, 2011, compared to
    $1,555.0 million on December 31, 2010, was comprised of General
    Contracting backlog of $1,445.3 million, Commercial Systems backlog of
    $133.3 million, and Industrial Services backlog of $264.0 million.

  • Revenue for 2011 was $1,409.2 million compared to $1,183.9 million in
    2010, a $225.3 million increase. Growth was realized in all operating
    segments attributable partly to the inclusion of the operations of The
    Dominion Company Inc., Canem and Broda for a full year in 2011,
    compared to 5 months in 2010. Record performance from Churchill's
    legacy industrial operations and geographic expansion in all operating
    segments also contributed to revenue growth.

  • Annual earnings before interest, taxes, depreciation and amortization
    ("EBITDA") were $72.0 million in 2011, compared to $71.8 million
    reported in 2010. Revenue growth was partly offset by margin pressure,
    primarily in the General Contracting segment, which was impacted by the
    inclusion of low margin projects secured in the more competitive
    markets of late 2008, 2009 and early 2010, low margin projects from
    legacy Dominion, and being in the early phases of construction on
    several new projects.

  • Net earnings were $24.9 million in 2011, compared to $34.2 million
    recorded in 2010. The difference was attributable to increased
    interest, depreciation and amortization associated with assets acquired
    in 2010 and 2011, partially offset by reduced taxes.

  • Stuart Olson Dominion generated 2011 revenue of $907.0 million and
    EBITDA of $26.2 million (2010 revenue of $817.3 million and EBITDA of
    $56.7 million).

  • Canem produced revenue of $192.7 million and EBITDA of $24.0 million
    (2010 revenue of $83.2 million and EBITDA of $12.5 million).

  • Churchill's Industrial Services segment produced 2011 revenue of $367.0
    and EBITDA of $33.4 million (2010 revenue of $301.2 million and
    EBITDA of $25.5 million).

"Geographic expansion and the addition of quality projects to our
backlog in 2011 provide visibility of future revenue and earnings
growth and strengthen our outlook," said Jim Houck, Churchill's
President and CEO. "Laird Electric, Laird Constructors, Insulation
Holdings and Broda together produced record revenue and EBITDA for our
Industrial Services segment and secured backlog that promises
continuing strong performance from this segment. Canem performed well
due to its contract mix, efficient operating practices and
best-in-class marketing programs. Stuart Olson Dominion added many
quality projects to backlog and began to participate in the industrial
market, where we believe many profitable growth opportunities exist.
Underperforming fixed price projects are substantially complete and
Stuart Olson Dominion's current backlog is 90% low-risk construction
management and cost-plus projects, many with additional return
opportunities available through self-perform work."


"Western Canada's economy, driven by vibrant demand for petroleum,
metals and minerals, continues to outperform the rest of Canada with
the two largest western provinces, Alberta and British Columbia, both
projecting large government budget surpluses in 2013," continued Mr.
. "Our $1.8 billion backlog is about 60% institutional
government-funded projects such as hospitals, schools, prisons and
recreation centres, 25% commercial business projects such as office
towers and data centres, and 15% industrial projects directly related
to Western Canada's resource extraction industries, so we stand to
benefit from all sectors of the growing Western Canadian economy."

"We intend to continue to create value for our shareholders through
building on the profitable organic growth of our five operating
companies, and executing acquisitions that enhance our strategic goals
and fit our entrepreneurial culture when financial, operational and
market conditions are right."


Churchill will hold a conference call and webcast to discuss the results
on Wednesday, March 7, 2012 at 7:30 a.m. Mountain Time (9:30 a.m.

A presentation will be posted on Churchill's website prior to the call
at under the "News and Events" tab. Management's prepared remarks on the
call will follow the presentation. Choose "Churchill Fourth Quarter
2011 Conference Call" to view the presentation.

The conference call will include prepared remarks from Jim Houck,
Churchill's President and CEO, and Daryl Sands, Executive Vice
President and CFO. After the prepared remarks, Churchill will accept
questions from analysts and institutional investors.

Date: 

Wednesday, March 7, 2012

Time: 

7:30 a.m. MT (9:30 a.m. ET)

Call: 

1-800-319-4610 (Canada and USA) or 1-604-638-5340 (outside Canada and

Participants are asked to call at least 10 minutes prior to the start of
the call. For those unable to participate on the live call, a replay
will be made available until Friday, April 6, 2012 by dialling
1-800-319-6413 (Canada and USA) or 1-604-638-9010 (outside Canada and
USA), passcode 1514#. The public is invited to listen to the live
conference call or the replay.

This conference call will be webcast live over the internet and can be
accessed by all interested parties on Churchill's website through the
News & Events / Events tab at:

To listen to the live webcast, visit Churchill's website at least 10
minutes early to register, download and install any necessary audio
software. For those unable to listen during the live webcast, an audio
replay will be available on Churchill's website shortly after the
conclusion of the conference call for a period of 90 days.

About The Churchill Corporation

The Churchill Corporation provides building construction, commercial and
industrial electrical contracting, earthmoving and industrial
insulation services to an array of public and private sector clients.
Churchill operates office locations throughout British Columbia,
Alberta, Saskatchewan, Manitoba, northern Ontario and the Yukon.
Churchill common shares and convertible debentures are listed on the
Toronto Stock Exchange under the symbols "CUQ" and "CUQ.DB",

Forward Looking Information

This press release contains certain statements that may constitute
forward-looking information within the meaning of applicable securities
laws. This forward-looking information includes, without limitation,
statements pertaining to the following:


management's visibility on future revenue sources, earnings growth
potential and its 2012 outlook for the Corporation's businesses;


the Corporation's current and future projects, and in respect to those
projects, the completion status, associated risks and potential


management's expectations that the Corporation's operating companies
will improve their business prospects or continue to grow their
revenue, earnings and backlog in any manner whatsoever including,
without limitation, through margin expansion, organic growth or
productivity efficiencies; and


the ability of management to deliver organic growth and execute upon
acquisitions that enhance the strategic goals of the Corporation.

Often, but not always, forward-looking information can be identified by
the use of such words as "may", "will", "expect", "believe", "plan",
"intend", "estimate", "outlook", "forecast", "should", "anticipate" and
other similar terminology, including statements concerning possible or
assumed future results. Forward-looking information is based on
management's reasonable assumptions, analysis and estimates in respect
of its experience and perception of trends, current economic
conditions, government policies and expected developments, as well as
other material factors that it considers to be relevant at the time of
making such statements.

The forward-looking information in this press release is included solely
for the purpose of assisting investors in understanding the
Corporation's financial position and the results of its operations as
at the date hereof. By its nature, forward-looking information
involves known and unknown risks and uncertainties, which give rise to
the possibility that management's assumptions, analysis and estimates
will be incorrect and that the Corporation's anticipated results will
not be achieved. Although the Corporation believes that the statements
with respect to forward-looking information are reasonable and current,
such statements should not be interpreted as a guarantee of future
performance or results, and will not necessarily be an accurate
indication of whether or not such results will be achieved.
Forward-looking information is necessarily subject to a number of
factors that may cause actual results to differ materially from those
results implied by the expectations suggested by such information.
Those factors include, without limitation, the risks and uncertainties
described in the Corporation's Annual Report filed with the securities
regulatory authorities in Canada under the Corporation's profile at Readers are encouraged to consider the foregoing risks and other
factors carefully when evaluating the forward-looking information and
are cautioned not to place undue reliance upon such information when
making investment decisions.

The forward-looking information in this press release is current to the
date hereof, and is subject to change following such date. While the
Corporation may elect to do so, unless required by applicable law, it
undertakes no obligation to update this information to reflect new
information or circumstances at any particular time.


For further information:

James C. Houck, B.Sc., MBA
President and Chief Executive Officer
The Churchill Corporation
(403) 685-7777

Andrew Apedoe
Vice President Investor Relations & Secretary
The Churchill Corporation
(403) 685-7775

Ken Wetherell, CFA
Director, Investor Relations
The Churchill Corporation
(403) 685-7776

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