Industrial and Commercial Systems Backlog Continues to Grow
CALGARY, Aug. 8, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today released its 2012 second quarter results and declared a quarterly dividend of $0.12 per common share. For the second quarter of 2012, Churchill's revenue was $295.8 million, EBITDA was $4.6 million, and Churchill recorded a net loss of $4.2 million. Comparable results for the second quarter of 2011 were revenue of $340.9 million, EBITDA of $17.0 million and net earnings of $5.8 million. Backlog as of June 30, 2012 was $1,570.4 million compared to $1,842.6 million as of December 31, 2011.
The dividend will be paid October 16, 2012 to shareholders of record on September 28, 2012. The ex-dividend date is September 26, 2012. The Corporation has a dividend reinvestment plan in place for which details are available on Churchill's website (www.churchillcorporation.com).
SECOND QUARTER OPERATIONAL HIGHLIGHTS
- Industrial Services segment backlog increases to $288.0 million compared to $239.5 million at March 31, 2012.
- Commercial Systems segment backlog increase to $218.0 million compared to $204.4 million at March 31, 2012.
- Executed a 5-year multiple use field and plant maintenance master service agreement with a leading Canadian integrated energy company active in Alberta's oil sands.
- Negotiated improved terms and conditions for its $200 million senior secured credit facility.
|3 Months Ended June 30||6 Months Ended June 30|
|($millions, except per share amounts)||2012||2011||2012||2011|
|EBITDA from continuing operations||4.6||17.0||18.5||34.2|
|Net earnings (loss)||(4.2)||5.8||(1.0)||11.5|
|Net earnings (loss) per common share|
|As of June 30, 2012||As of Dec. 31, 2011|
|Long-term debt (excluding current portion)||69.7||60.4|
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 second quarter 2012 management discussion and analysis ("MD&A").
- Backlog of $1,570.4 million as of June 30, 2012, (December 31, 2011 - $1,842.6 million) was comprised of General Contracting segment backlog of $1,064.4 million (December 31, 2011 - $1,445.3 million); Commercial Systems segment backlog of $218.0 million (December 31, 2011 - $133.3 million); and Industrial Services segment backlog of $288.0 million (December 31, 2011 - $264.0 million).
- Revenue for the second quarter of 2012 was $295.8 million compared to $340.9 million in the three months ended June 30, 2011, a 13% decrease. Revenue declined in the General Contracting and Industrial Services operating segments by $38.6 million (18%) and $8.3 million (9%), respectively. Second quarter 2012 revenue for the Commercial Systems segment was $46.4 million compared to $46.0 million in the second quarter of 2011.
- Second quarter 2012 EBITDA was $4.6 million, compared to $17.0 million reported in the second quarter of 2011. The decrease in EBITDA resulted primarily from the weather and project challenges incurred in Alberta, Saskatchewan and Manitoba.
- Churchill reported a net loss of $4.2 million in the second quarter of 2012, compared to reported net earnings of $5.8 million in the three months ended June 30, 2011. The difference was primarily attributable to the change in EBITDA set out above.
"These second quarter of 2012 results were impacted by project specific operational challenges," said Daryl Sands, Churchill's Executive Vice President and CFO. "Wet weather conditions across the prairies, administrative delays at customer sites and project execution delays caused by the performance by a key subcontractor materially impacted our results."
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 the latter part of 2012 and into 2013 as several legacy projects are completed and recently awarded projects transition from design to the tendering and construction phase.
- Canem expects to deliver margins that are modestly lower than its first half 2012 results as projects awarded in more competitive times, and project delays resulting in a slower pace of activity, continue to be reflected in margins.
- Within the Industrial Services segment, CSG had a strong quarter as it executed a significant amount of turnaround and maintenance work in Alberta's oil sands. Recent backlog additions continue to provide good visibility to future potential earnings. After a challenging quarter, Broda is expected to turn around its operational results in the second half of the year.
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 completion status, associated risks, margin improvement or decline, and potential earnings. 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:
Vice President, Investor Relations
The Churchill Corporation
Ken Wetherell, CFA
Director, Investor Relations
The Churchill Corporation