Press release from CNW Group
The Churchill Corporation Provides Business Update
Wednesday, October 10, 2012
CALGARY, Oct. 10, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today announces an update on leadership, initiatives to improve performance and productivity, financial outlook and new project awards.
- Churchill is pleased to report that Don Pearson, President of Stuart Olson Dominion will continue serving as President, rather than retiring as per the Corporation's June 8, 2012 press release.
- Ron Martineau, interim President of Churchill Services Group is committed to staying in this role until an appropriate successor is named. An executive search firm has been engaged to identify candidates to fill the role of President, Churchill Services Group.
- The Investor's Group Field project is scheduled for substantial completion and handover to the Blue Bombers in November 2012. Churchill has booked an additional loss of $3.5 million on the project during the third quarter.
- Broda's Calgary Airport project is on schedule and we expect good results from Broda for the quarter.
- In addition to a renewed focus on project management and project controls, the full implementation of SAP across all branches of Stuart Olson Dominion will facilitate consistent and timely reporting at the project and branch level.
- On September 26th, the Corporation reduced its corporate workforce by 20%.
- In addition, the Corporation's operating segments are implementing cost management initiatives.
- These combined initiatives are expected to result in cost savings of $4 - $6 million annually.
- Overall third quarter results are expected to be profitable, but hindered by the additional project losses on the Investor's Group Field project.
- Management estimates that full-year 2012 EBITDA will be in the range of $37 to $42 million.
- Management believes that 2013 EBITDA guidance when provided will be materially higher than 2012 expected results, albeit likely below the current analysts' consensus of $73 million.
Churchill Services Group ("CSG") has secured 4 new contracts in the third quarter:
- A major oil sands producer in the Fort McMurray region has awarded a 3 year maintenance contract worth $120 million, which includes a 2 year option valued at an additional $80 million to provide electrical and instrumentation services.
- A long standing oil sands customer has renewed their commitment to CSG through a 2 year maintenance contract worth $40 million.
- An industrial owner in Kitimat, BC has awarded CSG a $25 million building cladding contract.
- A major module contractor has signed CSG to a multi-use contract valued at $15 million to provide electrical and instrumentation services for module construction in Edmonton.
"Notwithstanding some of our near-term project execution challenges, we believe the company is well-positioned for the long-term," said Doug Haughey, Churchill's Chief Executive Officer. "All of our operating companies are leaders in their business segments, each of these segments has attractive fundamentals and and Churchill is well-positioned geographically in Western Canada."
Churchill will hold a conference call and webcast to discuss these initiatives on Thursday, October 11, 2012 at 8:30 a.m. Mountain Time (10:30 a.m. Eastern).
The conference call will include prepared remarks from Doug Haughey, Churchill's CEO, and David LeMay, Churchill's President and COO. After the prepared remarks, Churchill will accept questions from analysts and institutional investors.
Date: Thursday, October 11, 2012
Time: 8:30 a.m. MT (10:30 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 Sunday, November 11, 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
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 project completion dates, expected cost savings from various initiatives, expected full year 2012 and 2013 EBITDA; anticipated financial results to be derived from contracts awarded in the third quarter 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 Corporation
For further information:
Vice President Investor Relations
The Churchill Corporation