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Press release from CNW Group

The Churchill Corporation Reports First Quarter 2013 Results, Declares Quarterly Dividend

Tuesday, May 07, 2013

The Churchill Corporation Reports First Quarter 2013 Results, Declares Quarterly Dividend

17:00 EDT Tuesday, May 07, 2013

CALGARY, May 7, 2013 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today announced its first quarter 2013 results and declared a quarterly dividend of $0.12 per common share.

FINANCIAL HIGHLIGHTS

     
  3 Months Ended Mar. 31
($millions, except per share amounts) 2013 2012
Contract revenue $ 236.8 $ 333.2
Contract income 22.0 35.7
EBITDA from continuing operations 6.8 13.7
Net earnings (loss) (1.2) 3.1
Net earnings (loss) per common share    
  - Basic (0.05) 0.13
  - Diluted (0.05) 0.13
  As of Mar. 31, 2013 As of Dec. 31, 2012
Backlog $ 1,713.9 $ 1,690.5
Working Capital 89.8 79.2
Long-term debt (excluding current portion) 63.1 51.9
Convertible debentures 79.8 79.2
Total assets 709.0 742.4

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 first quarter 2013 management's discussion and analysis ("MD&A").

"These first quarter 2013 results were ahead of the expectations we communicated to the markets concurrent with our year-end 2012 conference call and webcast, primarily as a result of stronger than anticipated results from the industrial segment and the favourable resolution of some project contingencies during the quarter," said Doug Haughey, Churchill's CEO.  "We expect our second quarter 2013 results to be broadly in line with those of the first quarter and are focused on material improvements in performance beginning with the third quarter of 2013 supported by revenue growth from our general contracting segment.  Management is reiterating its 2013 guidance range of $45 to $55 million of EBITDA for the full year."

  • Revenue for the first quarter of 2013 decreased 29% year-over-year to $236.8 million from $333.2 million, primarily as a result of being in the early stages of construction on new projects and delays in executing backlog within the general contracting segment.
  • First quarter 2013 EBITDA decreased 51% to $6.8 million, compared to $13.7 million reported in the first quarter of 2012.  The decrease in EBITDA resulted from lower revenue in the general contracting and industrial services segment combined with lower contract income margins across all operating units with the exception of Broda's operations.
  • Churchill reported a net loss of $1.2 million and diluted loss per share of $0.05 in the first quarter of 2013, compared to net earnings of $3.1 million and diluted earnings per share of $0.13 in the first quarter of 2012.
  • Backlog increased 1% to $1,713.9 million as of March 31, 2013 from $1,690.5 million at December 31, 2012, as the growth in the backlog of the general contracting and industrial services segments increased consolidated corporate totals.
  • Churchill's book-to-bill ratio in the first quarter of 2013 was 0.97:1, as work-in-hand increased $229.1 million compared to revenue of $236.8 million.
  • Churchill's Board of Directors declared a quarterly dividend of $0.12 per common share.  The dividend will be paid July 16, 2013 to shareholders of record on June 28, 2013.  The Corporation has a dividend reinvestment plan in place for which details are available on Churchill's website (www.churchillcorporation.com).
  • Complete Financial Statements, Notes to the Financial Statements and Management's Discussion and Analysis will be filed on SEDAR (www.sedar.com) on May 7, 2013. Alternatively, the documents will be available to download from the Investors section of www.churchillcorporation.com.

OUTLOOK

  • 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 2013 as recently awarded projects transition from design, to the tendering and construction phase.
  • Canem continues to expect modest revenue growth during 2013 and EBITDA margins to be flat year-over-year; as a result of more competitive go-in fees and the timing of project phases in 2013.
  • Within the Industrial Services segment, CSG & Broda expect to continue delivering strong revenues at comparable to higher EBITDA margins to their consolidated full year 2012 results.

Churchill will hold a conference call and webcast to discuss its First Quarter 2013 results Wednesday, May 8, 2013 at 12:30 p.m. MST (2:30 p.m. EST) which will be broadcast live and archived in the News & Events section at www.churchillcorporation.com.  Financial analysts and institutional investors who wish to ask questions during the conference call are invited to call 1-800-319-4610 or email their questions directly to investor relations via the webcast.

2013 ANNUAL GENERAL MEETING

As a reminder, Churchill will be holding its annual general meeting of shareholders on Thursday, May 23, 2013 (the "Meeting") at the Metropolitan Conference Centre, 333 - 4th Avenue SW, Calgary, Alberta.  The Meeting will start at 2:00 p.m. MST. Shareholders are encouraged to vote their proxies through the appropriate intermediary no later than May 21 at 2:00 p.m. MST.

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: (a) 2013 second and third quarter financial performance; and (b) future operating performance including, without limitation, all of the statements set out in the section entitled "Outlook". 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:

Doug Haughey
Chief Executive Officer
The Churchill Corporation
(403) 685-7777
Email: inquiries@churchill-cuq.com

Andrew Apedoe
Vice President, Investor Relations
The Churchill Corporation
(403) 685-7775
Email: inquiries@churchill-cuq.com

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