The Churchill Corporation Announces Preliminary Second Quarter Estimates
Churchill Announces Expected Loss due to Weather and Project Execution Delays
CALGARY, July 23, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today announced preliminary estimates for 2012 second quarter revenue, EBITDA (earnings before interest, taxes, depreciation and amortization) and net earnings (loss). While the Corporation does not generally give financial guidance to the capital markets, this information is being provided because preliminary 2012 second quarter estimates are materially below the consensus estimates of financial analysts who offer research coverage on the Corporation.
The Corporation's preliminary estimates for 2012 second quarter results are for revenue between $292 and $298 million (2011 second quarter - revenue of $340.9 million), EBITDA between $4.4 and $4.8 million (2011 second quarter - EBITDA of $17.0 million) and a net loss between $4.0 and $4.4 million (2011 second quarter - net earnings of $5.8 million).
Broda Construction Inc. ("Broda"), a component of Churchill's Industrial Services segment, expects to report EBITDA between $(2.9) and $(3.3) million, compared to positive EBITDA of $0.9 million in the second quarter of 2011. The expected loss was caused by frequent rain, which reduced utilization of Broda's earthmoving equipment in May and June, resulting in reduced earnings at its Calgary Airport Runway project and a Saskatoon residential project. Additionally, administrative delays in commencing new mining projects in Northern Saskatchewan led to the deferral of revenue during the quarter.
The remainder of Churchill's Industrial Services segment, consisting of Churchill Services Group Inc., expects to report positive EBITDA between $4.8 and $5.2 million. This would be an increase over 2011 second quarter EBITDA of $4.3 million.
Stuart Olson Dominion Construction Ltd. ("Stuart Olson Dominion"), Churchill's General Contracting segment, expects to report EBITDA between $(0.5) and $(0.9) million in the second quarter, compared to positive EBITDA of $7.6 million in the second quarter of 2011. The expected loss is primarily due to delays in structural steel work, resulting in modifications to project schedule and execution causing additional costs to be incurred at the Investors Group Field project in Winnipeg, Manitoba.
Canem Systems Ltd., Churchill's Commercial Systems segment, expects to report positive EBITDA between $3.3 and $3.7 million, compared to $5.3 million in the second quarter of 2011. Revenues are expected to be in line with second quarter 2011 performance but margins are expected to be lower.
"We are clearly disappointed with these preliminary estimates," said Jim Houck, Churchill's President and CEO. "We will provide more commentary on these specific project execution challenges during the July 23, 2012 conference call and in our financial results for the three and six months ended June 30, 2012, which will be released on August 8, 2012."
Churchill will hold a conference call and webcast to discuss these preliminary results on Monday, July 23, 2012 at 7:30 a.m. Mountain Time (9:30 a.m. Eastern).
The conference call will include prepared remarks from Jim Houck, Churchill's President and CEO, and Daryl Sands, Churchill's Executive Vice President and CFO. After the prepared remarks, Churchill will accept questions from analysts and investors.
Date: Monday, July 23, 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 Wednesday, August 22, 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 and download and install any necessary audio software. For those unable to listen during the live webcast, a 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 in 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
These preliminary financial estimates 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" 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").
Forward Looking Information
This press release contains statements that may constitute forward-looking information within the meaning of applicable securities laws. This forward-looking information includes, without limitation, statements pertaining to Churchill's estimates of revenue, EBITDA and net earnings (loss) and Broda, Stuart Olson Dominion's, Laird, Insulation Holdings and Canem's estimates of EBITDA for the second quarter of 2012 and the Corporation's ability to improve future performance. Forward-looking information is based on management's reasonable assumptions and estimates in respect of its experience and perception of trends, current economic conditions 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 and estimates will be incorrect and that the Corporation's anticipated results will not be achieved. 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 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 CorporationFor further information:
James C. Houck, B.Sc., MBA
President and Chief Executive Officer
The Churchill Corporation
Vice President, Investor Relations
The Churchill Corporation
Ken Wetherell, CFA
Director, Investor Relations
The Churchill Corporation