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Press release from CNW Group

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

Monday, August 12, 2013

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

18:33 EDT Monday, August 12, 2013

Increased EBITDA from all business segments and growing backlog

CALGARY, Aug. 12, 2013 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today released its 2013 second quarter results and declared a quarterly dividend of $0.12 per common share. For the second quarter of 2013, Churchill's revenue was $277.8 million, EBITDA was $9.2 million and net earnings were $0.5 million. Comparable results for the second quarter of 2012 were revenue of $295.8 million, EBITDA of $4.4 million and a net loss of $4.3 million. Backlog as of June 30, 2013 was $1,809.8 million compared to $1,690.5 million as of December 31, 2012.

FINANCIAL HIGHLIGHTS

                           
      3 Months Ended June 30   6 Months Ended June 30
($millions, except per share amounts)       2013     2012     2013     2012
Contract revenue      $    277.8    $   295.8    $      514.7    $    629.0
Contract income       26.0     23.8     48.1     57.8
EBITDA from continuing operations       9.2     4.4     16.0     18.1
Net earnings (loss)       0.5     (4.3)     (0.7)     (1.0)
Net earnings (loss) per common share
- Basic
- Diluted
    0.02
0.02
    (0.17)
(0.17)
    (0.03)
(0.03)
    (0.04)
(0.04)
                           
                    As of June 30, 2013     As of Dec. 31, 2012
Backlog                   $ 1,809.8    $ 1,690.5
Long-term debt (excluding current portion)                   69.7     51.9
Convertible debentures                   80.4     79.2
Total assets                   691.3     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 second quarter 2013 management discussion and analysis ("MD&A").

The dividend will be paid October 15, 2013 to shareholders of record on September 30, 2013. 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

•     All business segments delivered improved EBITDA results on a quarterly comparative basis.

•     Churchill extended its $200 million senior secured credit facility by one (1) additional year, resulting in a new maturity date of July 12, 2017.

•     Record quarterly revenue for the Industrial services segment of $115.8 million compared to $84.8 million in the second quarter of 2012.

•     Second quarter 2013 revenue for the Commercial Systems segment was $46.8 million compared to $46.4 million in the second quarter of 2012.

•     Revenue declined in the General Contracting segment by $56.5 million to $120.8 million in the second quarter of 2013 compared to $177.3 million of segment revenue in Q2 2012.

•     New contract awards and net increases in project scope of $415.4 million (Q2, 2012 - $416.8 million).

•     Backlog of $1,809.8 million as of June 30, 2013, (December 31, 2012 - $1,690.5 million) was comprised of General Contracting segment backlog of $1,224.6 million (December 31, 2012 - $1,115.8 million); Commercial Systems segment backlog of $186.7 million (December 31, 2012 - $194.3 million); and Industrial Services segment backlog of $398.5 million (December 31, 2012 - $380.4 million).

"Second quarter 2013 results were ahead of our own expectations primarily due to the favourable resolution of project contingencies, high activity levels and strong project execution within the Industrial Services segment," said David LeMay, Churchill's President and CEO. "However, we are revising our full year guidance, based on the current project scheduling information available, to an EBITDA range of $42 - $47 million."

OUTLOOK

Churchill is well positioned in Western Canada to compete for projects through its three operating business segments.

  • EBITDA margins for Stuart Olson Dominion are expected to turn positive during the remainder of 2013 as recently awarded projects transition from design, to the tendering and construction phase.
  • Canem continues to expect modest revenue growth during 2013. EBITDA margins will likely range from flat year-over-year to a modest increase as a result of more competitive go-in fees and the scheduling of project execution in 2013.
  • The Industrial Services segment is expected to continue delivering strong revenues at comparable to slightly higher EBITDA margins than its full year 2012 results.

CONFERENCE CALL

Churchill will hold a conference call and webcast to discuss its Second Quarter 2013 results on Tuesday, August 13, 2013 at 7:00 a.m. MDT (9:00 a.m. EDT).

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:  Tuesday, August 13, 2013

Time:  7:00 a.m. MDT (9:00 a.m. EDT)

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 - Second 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
(403) 685-7777

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

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