Stock Name: CUQ
Amount: CAD 0.12
Announcement Date: 05/11/2012
Record Date: 27/12/2012
Dividend Detail:
Industrial Services Backlog Continues to Grow
CALGARY, Nov. 5, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today released its 2012 third
quarter results and declared a quarterly dividend of $0.12 per common
share. For the third quarter of 2012, Churchill's revenue was $303.2
million, EBITDA was $12.1 million, and Churchill recorded net earnings
of $1.8 million. Comparable results for the third quarter of 2011 were
revenue of $379.3 million, EBITDA of $18.3 million and net earnings of
$6.1 million. Backlog as of September 30, 2012 was $1,731.0 million
compared to $1,842.6 million as of December 31, 2011.
The dividend will be paid January 15, 2013 to shareholders of record on
December 31, 2012. The ex-dividend date is December 27, 2012. The
Corporation has a dividend reinvestment plan in place for which details
are available on Churchill's website (www.churchillcorporation.com).
THIRD QUARTER OPERATIONAL HIGHLIGHTS
�������������Industrial Services segment backlog increases to $413.8 million
compared to $288.0 million at June 30, 2012.
Awarded a 3 year oil sands maintenance contract, worth $120 million,
with a 2 year option valued at an additional $80 million to provide
electrical and instrumentation services.
A long standing oil sands customer has renewed its commitment to CSG
through a 2 year maintenance contract worth $40 million.
An industrial owner in Kitimat, BC has awarded CSG a $25 million
building cladding contract.
A major module contractor has signed CSG to a multi-use contract valued
at $15 million to provide electrical and instrumentation services for
module construction in Edmonton.
�������������General Contracting segment backlog increases to $1,119.2 million
compared to $1,064.4 million at June 30, 2012.
Awarded $147 million contract to expand the Winnipeg Convention Centre.
FINANCIAL HIGHLIGHTS
�� | �� | �� | �� | ||
�� | 3 Months Ended Sept. 30 | 9 Months Ended Sept. 30 | |||
($millions, except per share amounts) | 2012 | 2011 | 2012 | 2011 | |
Contract revenue | ��$ 303.2 | ��$ 379.3 | ��$ 932.2 | ��$ 1,024.8 | |
Contract income | 27.7 | 40.5 | 89.2 | 112.8 | |
EBITDA from continuing operations | 12.1 | 18.3 | 30.6 | 52.5 | |
Net earnings | 1.8 | 6.1 | 0.8 | 17.7 | |
Net earnings per common share | - Basic | 0.07 | 0.26 | 0.03 | 0.73 |
�� | - Diluted | 0.07 | 0.24 | 0.03 | 0.69 |
�� | �� | �� | As of Sept. 30, 2012 | As of Dec. 31, 2011 | |
Backlog�� | �� | �� | ��$ 1,731.0 | ��$ 1,842.6 | |
Long-term debt (excluding current portion) | �� | �� | 68.5 | 60.4 | |
Convertible debentures | �� | �� | 78.5 | 76.7 | |
Total assets | �� | �� | 850.6 | 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 third
quarter 2012 management discussion and analysis ("MD&A").
Backlog of $1,731.0 million as of September 30, 2012, (December 31, 2011
- $1,842.6 million) was comprised of General Contracting segment
backlog of $1,119.2 million (December 31, 2011 - $1,445.3 million);
Commercial Systems segment backlog of $198.1 million (December 31, 2011
- $133.3 million); and Industrial Services segment backlog of $413.8
million (December 31, 2011 - $264.0 million).
Revenue for the third quarter of 2012 was $303.2 million compared to
$379.3 million in the three months ended September 30, 2011, a 20%
decrease. Revenue declined in the General Contracting, Commercial
Systems and Industrial Services operating segments by $78.7 million
(32%), $3.8 million (8%), and $2.2 million (2%) respectively, primarily
as a result of being in the early stages of construction on new
projects and project delays in executing backlog.
Third quarter 2012 EBITDA was $12.1 million, compared to $18.3 million
reported in the third quarter of 2011. The decrease in EBITDA resulted
primarily from lower margins and project execution challenges incurred
in Alberta, Saskatchewan and Manitoba.
Churchill reported net earnings of $1.8 million in the third quarter of
2012, compared to reported net earnings of $6.1 million in the three
months ended September 30, 2011. The difference was primarily
attributable to the change in EBITDA set out above.
"Notwithstanding some of our near-term project execution challenges, we
believe the company is well-positioned for the long-term," said Doug
Haughey, Churchill's CEO. "All of our operating companies are leaders
in their business segments, each of these segments has attractive
fundamentals and Churchill is well-positioned geographically in Western
Canada."
OUTLOOK
Churchill is well positioned in Western Canada to compete for projects
through its three operating business segments.
Margins for Stuart Olson Dominion are expected to gradually improve in
2013 as recently awarded projects transition from design to the
tendering and construction phase.
Canem expects revenue levels in 2013 to be consistent with 2012 levels;
however annualized EBITDA margins will be lower as a result of more
competitive go-in fees and executing lower margin work.
Within the Industrial Services segment, CSG expects to continue
delivering strong revenues and modestly softer margins into 2013.
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 and northern Ontario. 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 Corporation's current and future projects,
and in respect to those projects, the estimated completion dates,
associated risks, anticipated financial results to be derived from
contracts awarded in the third quarter and the Corporation's ability to
improve financial performance. 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 Information Form 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.
SOURCE: The Churchill Corporation
For further information:
Please contact:
Doug Haughey
Chief Executive Officer
The Churchill Corporation
(403) 685-7777
Email:��inquiries@churchill-cuq.com��
Andrew Apedoe
Vice President, Investor Relations
The Churchill Corporation
(403) 685-7775
Email:��inquiries@churchill-cuq.com
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