CALGARY, Jan. 18, 2017 /CNW/ - Stuart Olson Inc. (TSX: SOX, SOX.DB.A) ("Stuart Olson" or the "Company") today announced that it has been awarded approximately $250 million in new contracts.
Stuart Olson's Buildings Group has secured construction management contracts to retrofit existing facilities at two large post-secondary institutions in Western Canada. The two new projects have a combined value of approximately $220 million.
The Industrial Group has also been awarded a five-year maintenance, repair and operations ("MRO") contract valued at an estimated $30 million. The contract is with a longstanding mining customer on a new project site in Saskatchewan and encompasses an integrated bundle of industrial services.
"These new contract awards are substantial wins for both our Buildings Group and Industrial Group," said David LeMay, Stuart Olson's President and CEO. "The two post-secondary school projects signal momentum around the approval of anticipated provincial infrastructure projects. They also represent recognition by repeat clients of the value offered by our Buildings Group through delivery of our construction management approach. The five-year MSA demonstrates our continuing success in bundling our industrial services, generating long-term MRO contracts with existing customers on new sites, and diversifying our projects across geographies and end-markets."
The new projects will be added to backlog over two quarters, with $180 million included in the fourth quarter 2016 backlog, and the remaining $70 million added to backlog in the first quarter of 2017.
About Stuart Olson Inc.
Stuart Olson Inc. provides general contracting and electrical building systems contracting in the public and private construction markets as well as electrical, mechanical and specialty trades, such as insulation, cladding and asbestos abatement, in the industrial construction and services market. The Company operates office locations throughout British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. Stuart Olson's common shares and convertible debentures are listed on the Toronto Stock Exchange under the symbols "SOX" and "SOX.DB.A", respectively. www.stuartolson.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 relating to the value and scope of the new award and statements related to Stuart Olson's revenue visibility and future growth strategy. 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 Stuart Olson'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 Stuart Olson's anticipated results will not be achieved. Although Stuart Olson 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 Stuart Olson's Annual Information Form filed with the securities regulatory authorities in Canada under Stuart Olson'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 Stuart Olson 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 Stuart Olson Inc.
For further information: Daryl Sands, Executive Vice President and Chief Financial Officer, Stuart Olson Inc., (403) 685-7777, Email: [email protected]