Stock Name: CUQ
Amount: CAD 0.12
Announcement Date: 08/05/2012
Record Date: 27/06/2012
Dividend Detail:
Industrial Services Segment Drives Revenue Growth
CALGARY, May 8, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ) (TSX: CUQ.DB) ("Churchill" or the "Corporation") today released its 2012 first
quarter results and declared a quarterly dividend of $0.12 per common
share. Revenue for the first quarter of 2012 was $333.2 million
compared to $304.7 million in the three months ended March 31, 2011, a
9% increase due to organic growth in the Corporation's Industrial
Services segment driven largely by Western Canada oilsands and mining
activity. Quarterly earnings before interest, taxes, depreciation and
amortization ("EBITDA") was $13.9 million, compared to $17.2 million
reported in the first quarter of 2011, as strong results from the
Industrial Services segment partially offset lower results from the
General Contracting segment. Net earnings were $3.2 million in the
first three months of 2012, compared to $5.8 million recorded in the
first quarter of 2011. Backlog as of March 31, 2012 was $1,751.5
million compared to a record $1,842.6 million as of December 31, 2011.
The dividend will be paid July 17, 2012 to shareholders of record on
June 29, 2012. The ex-dividend date is June 27, 2012. The Corporation
has a dividend reinvestment plan in place for which details are
available on Churchill's website (www.churchillcorporation.com).
FIRST QUARTER OPERATIONAL HIGHLIGHTS
The Industrial Services operating segment, consisting of Churchill
Services Group Inc. ("CSG") and Broda Construction Inc. ("Broda"),
delivered a 63% revenue increase as demand for CSG's services expanded
along with Western Canada's oilsands and mining sectors, and Broda
benefited from expansion of its operations into southern Alberta and a
relatively mild winter.
Canem Holdings Ltd. ("Canem"), which forms Churchill's Commercial
Systems segment, grew first quarter revenue by 13% as it benefited from
the revenue generated by its Manitoba operations.
Stuart Olson Dominion Construction Ltd. ("Stuart Olson Dominion"), which
forms Churchill's General Contracting segment, improved the risk
profile of its $1.3 billion backlog to 97% low-risk construction
management assignments, from 90% at December 31, 2011, as it nears
completion of certain underperforming fixed price projects.
FIRST QUARTER FINANCIAL HIGHLIGHTS
�� | �� | �� | |
�� | 3 Months Ended March 31 | ||
($millions, except per share amounts) | 2012 | 2011 | |
Contract revenue | $������������������������������������������ 333.3 | $������������������������������������������ 304.7 | |
Contract income | 35.7 | 36.6 | |
EBITDA from continuing operations | 13.9 | 17.2 | |
Net earnings | 3.2 | 5.8 | |
Net earnings per common share | - Basic | 0.13 | 0.24 |
�� | - Diluted | 0.13 | 0.24 |
�� | As of Mar. 31, 2012 | As of Dec. 31, 2011 | |
Backlog | $���������������������������������� 1,751.5 | $���������������������������������� 1,842.6 | |
Long-term debt (excluding current portion) | 65.5 | 60.4 | |
Convertible debentures (excluding equity portion) | 77.3 | 76.7 | |
Total assets | 856.4 | 888.5 | |
�� | �� | �� | |
These financial results are presented in conformance with International
Financial Reporting Standards ("IFRS"). 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 measures under IFRS. For a description of
these measures, see the Terminology section in Churchill's first
quarter 2012 management discussion and analysis ("MD&A").
Backlog of $1,751.5 million as of March 31, 2012, compared to $1,842.6
million on December 31, 2011, was comprised of General Contracting
backlog of $1,307.6 million (December 31, 2011 - $1,445.3 million),
Commercial Systems backlog of $204.4 million (December 31, 2011 -
$133.3 million), and Industrial Services backlog of $239.5 million
(December 31, 2011 - $264.0 million).
Revenue for the first quarter of 2012 was $333.2 million compared to
$304.7 million in the three months ended March 31, 2011, a 9% increase.
Revenue growth in the Commercial Systems and Industrial Services
operating segments of $5.3 million (13%) and $40.6 million (63%),
respectively, was partly offset by a $13.5 million (7%) quarterly
revenue decrease in the General Contracting segment.
First quarter 2012 EBITDA was $13.9 million, compared to $17.2 million
reported in the first quarter of 2011. Revenue growth was offset by a
$2.2 million net loss on underperforming Dominion fixed price projects
nearing completion, execution of lower margin projects at Canem, and
the inclusion of high close-out margins in the Industrial Services
segment in the comparable 2011 quarter.
Net earnings were $3.2 million in the first quarter of 2012, compared to
$5.8 million recorded in the three months ended March 31, 2011. The
difference was primarily attributable to the change in EBITDA set out
above, partially offset by a $1.2 million tax reduction and a $1.0
million gain on sale of non-core assets.
Stuart Olson Dominion generated first quarter 2012 revenue of $194.2
million and EBITDA of $5.3 million (2011 first quarter revenue of
$207.7 million and EBITDA of $9.0 million).
Canem produced first quarter 2012 revenue of $46.6 million and EBITDA of
$4.9 million (2011 first quarter revenue of $41.3 million and EBITDA of
$6.2 million).
Churchill's Industrial Services segment produced 2012 first quarter
revenue of $104.9 million and EBITDA of $7.3 million (2011 first
quarter revenue of $64.2 million and EBITDA of $6.3 million).
"In the first quarter of 2012 CSG and Broda together produced
near-record revenue and increased EBITDA of the Industrial Services
segment in spite of the seasonal nature of their businesses," said Jim
Houck, Churchill's President and CEO. "Canem grew revenue and
maintained strong margins due to its contract mix, efficient operating
practices and best-in-class marketing programs. Stuart Olson Dominion
replaced projects executed in its $1.3 billion backlog with quality
projects that provide visibility of future revenue and earnings growth,
while nearing the announcement of some large projects that we expect to
add in the coming quarters. Underperforming fixed price projects are
nearly complete and Stuart Olson Dominion's backlog is now 97% low-risk
construction management and cost-plus projects, compared to 90% at 2011
year-end. These projects provide reasonable returns while limiting the
risk of losses, and most of them have additional profit opportunities
available through self-perform work and the potential for conversion to
higher yield contract structures as risk/return profiles improve with
project maturity."
OUTLOOK
"Western Canada's economy, driven by growing global demand for
petroleum, metals and minerals, continues to thrive," continued Mr.
Houck. "Activity in the oilsands and mining sectors is accelerating and
Western Canadian governments are continuing to update and make new
investments in infrastructure. Our Industrial Services segment is
benefiting directly from this significant industrial capital and
maintenance spending. Our General Contracting and Commercial Systems
segments, with a preponderance of institutional government-funded
projects such as hospitals, schools, prisons and recreation centres,
and commercial projects such as office towers, business parks and data
centres, are profiting from government and private sector spending to
build the infrastructure required to support a growing workforce."
"We intend to continue on our road to higher value mainly through
accelerating the profitable organic growth of our operating companies.
We may also move forward with tuck-in acquisitions that enhance our
strategic goals and fit our entrepreneurial culture, but only when
financial, operational and market conditions make economic sense."
CONFERENCE CALL
Churchill will hold a conference call and webcast to discuss the 2012
first quarter results on Wednesday, May 9, 2012 at 7:30 a.m. Mountain
Time (9:30 a.m. Eastern).
A presentation will be posted on Churchill's website prior to the call
at www.churchillcorporation.com under the "News and Events" tab. Management's prepared remarks on the
call will follow the presentation. Choose "Churchill First Quarter 2012
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, May 9, 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 USA) |
�� | �� |
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 Saturday, June 9, 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:
http://www.churchillcorporation.com/news/events/.
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",
respectively. www.churchillcorporation.com
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: | ||||||||||
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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 www.sedar.com.�� 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. | ||||||||||
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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
Email:��inquiries@churchill-cuq.com
Ken Wetherell, CFA
Director, Investor Relations
The Churchill Corporation
(403) 685-7776
Email:��inquiries@churchill-cuq.com
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