Reports record $2.1 Billion of backlog and sequential and comparative earnings increase
CALGARY, Nov. 5, 2013 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today released its 2013 third quarter results and declared a quarterly dividend of $0.12 per common share. For the third quarter of 2013, Churchill's revenue was $294.8 million, EBITDA was $12.3 million and net earnings were $2.6 million. Comparable results for the third quarter of 2012 were revenue of $303.2 million, EBITDA of $11.9 million and net earnings of $1.7 million. Backlog as of September 30, 2013 was $2,115.9 million compared to $1,690.5 million as of December 31, 2012.
|3 Months Ended Sept. 30||9 Months Ended Sept. 30|
|($millions, except per share amounts)||2013||2012||2013||2012|
|EBITDA from continuing operations||12.3||11.9||28.3||30.1|
|Net earnings per common share - Basic||0.10||0.07||0.07||0.02|
| As of Sept. 30,
| As of Dec. 31,
|Long-term debt (excluding current portion)||70.4||51.9|
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 "Non-IFRS Measures" section in Churchill's third quarter 2013 management discussion and analysis.
The dividend will be paid January 14, 2014 to shareholders of record on December 31, 2013. 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
- All operating segments delivered improved EBITDA results compared to the second quarter of 2013.
- Strong quarterly revenue offset by slightly lower margins for the Industrial services segment resulted in $10.1 million of EBITDA during the third quarter of 2013 as compared to $11.1 million of EBITDA in the third quarter of 2012.
- Strong revenues and improved margins in the Commercial Systems segment increased 2013 third quarter EBITDA to $5.3 million compared to $1.4 million in the third quarter of 2012.
- EBITDA in the General Contracting segment increased by $3.0 million to $2.7 million in the third quarter of 2013 compared to $(0.3) million in Q3 2012, on the basis of improved project margins.
- New contract awards and net increases in project scope of $323.3 million (Q3 2012 - $336.7 million).
- Record backlog of $2,115.9 million as of September 30, 2013, (December 31, 2012 - $1,690.5 million) was comprised of General Contracting segment backlog of $1,539.3 million (December 31, 2012 - $1,115.8 million); Commercial Systems segment backlog of $186.3 million (December 31, 2012 - $194.3 million); and Industrial Services segment backlog of $390.3 million (December 31, 2012 - $380.4 million).
"Our third quarter 2013 EBITDA was slightly below our expectations as revenues in our General Contracting segment did not meet forecasted activity levels, but were partly offset by improved general contracting margins and strong project execution in the Commercial Systems and Industrial Services segments." said David LeMay, Churchill's President and CEO. "Despite the fact that these results were only slightly below our expectations, we are reducing our 2013 EBITDA guidance to $40 to $42 million which takes into account current information with respect to project execution schedules. The consequence of these revised schedules is that the corresponding revenues and associated margins will be recognized in future reporting periods."
Churchill is well positioned in Western Canada to compete for projects through its three operating business segments.
- Stuart Olson Dominion's EBITDA margins are expected to continue to improve gradually during the remainder of 2013, as awarded projects transition from design, to the tendering and construction phase.
- Canem continues to expect modest revenue growth during 2013 as compared to 2012, along with improved full year EBITDA margins as a result of its project mix and efforts to lower administrative expenses.
- The Industrial Services segment is expected to continue delivering strong revenues at comparable to slightly lower EBITDA margins than their consolidated full year 2012 results.
Churchill will hold a conference call and webcast to discuss its Third Quarter 2013 results on Wednesday, November 6, 2013 at 7:30 a.m. MT (9:30 a.m. ET).
The conference call will include prepared remarks from David LeMay, Churchill's CEO and Daryl Sands, Executive Vice President and CFO. After the prepared remarks, Churchill will accept questions from analysts and institutional investors.
Date: Wednesday, November 6, 2013
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)
A presentation and webcast link will be posted on Churchill's website prior to the call under the "News and Events" tab (http://www.churchillcorporation.com/news/events/). Choose "The Churchill Corporation - Third Quarter 2013 Results" to view the presentation and follow along by webcast.
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 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 the Corporation's 2013 full year EBITDA guidance as well as those statements under the heading entitled "Outlook" including, without limitation, those statements pertaining to expected EBITDA margins, revenue growth, project status and project backlog. 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:
David LeMay, MBA
President and CEO
The Churchill Corporation
Vice President, Investor Relations
The Churchill Corporation
Email: [email protected]