New Business Units Contribute Organic Growth
CALGARY, Feb. 2, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ) ("Churchill" or the "Corporation") today announced that Churchill Services Group ("CSG") and the industrial division of Stuart Olson Dominion Construction Ltd. ("Stuart Olson Dominion Industrial") have won approximately $196 million of contract awards by private sector clients in Western Canada in the fourth quarter of 2011 and January 2012.
In the fourth quarter of 2011, CSG secured approximately $169 million of new contract awards and scope increases, including an $80 million turnaround maintenance contract awarded to Laird Electric Inc. ("Laird Electric") and Fuller Austin Inc. ("Fuller Austin") for an oil sands client in Alberta's Fort McMurray area, and a $29 million contract increase awarded to Laird Constructors Inc. ("Laird Constructors") for electrical and mechanical work at a mine in Ontario. The turnaround contract is expected to be complete by 2013 year end and Laird Constructors' contract is targeted for completion in 2012.
Stuart Olson Dominion Industrial has secured two major new contract awards in January 2012, valued at $27 million. The contracts are for two industrial buildings, one located at a potash mine in Saskatchewan, and another located at an oil sands mine in Alberta. The work will begin in February and March 2012 and is expected to be complete by 2012 year end.
"We are pleased to see our industrial operating companies building high quality backlog as resource extraction activity in our service area continues at a healthy pace," said Jim Houck, Churchill's CEO. "Laird Electric and Fuller Austin are preferred suppliers for several large oil sands and oil refining operations, and this helps to keep their workload growing in step with the industrial spend in Western Canada. It is also gratifying to see Stuart Olson Dominion's initial foray into the industrial buildings market bearing fruit. Including a $13 million building at an Alberta oil sands mine that was included in Q3 2011 backlog, this division has received $40 million of new awards. As well, CSG's new operating company, Laird Constructors, has secured over $52 million in contracts, $23 million of which was included in Q3 2011 backlog and $29 million of which will be included in Q4 2011 backlog. All of these awards are prime examples of our grass roots ability to organically grow our operations."
Contract Awards Mentioned in this Press Release
|Q3 2011||Q4 2011||Q1 2012||Total New|
|Churchill Services Group (CSG)||23||169||169||192|
|Stuart Olson Dominion Industrial||13||27||27||40|
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, Ontario and the Yukon. 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 statements that may constitute forward-looking information within the meaning of applicable securities laws. This forward-looking information includes, without limitation, statements pertaining to: (a) derived values and expected completion times on the contracts referred to herein; and (b) the Corporation's ability to organically grow its operations. 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 Report 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.
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