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 $1,690.5
million as of December 31, 2012.
FINANCIAL HIGHLIGHTS
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3 Months Ended June 30
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6 Months Ended June 30
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($millions, except per share amounts)
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2013
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2012
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2013
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2012
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Contract revenue
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$
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277.8
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$
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295.8
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$
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514.7
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$
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629.0
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Contract income
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26.0
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23.8
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48.1
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57.8
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EBITDA from continuing operations
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9.2
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4.4
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16.0
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18.1
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Net earnings (loss)
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0.5
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(4.3)
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(0.7)
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(1.0)
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Net earnings (loss) per common share
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- Basic
- Diluted
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0.02
0.02
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(0.17)
(0.17)
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(0.03)
(0.03)
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(0.04)
(0.04)
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As of June 30, 2013
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As of Dec. 31, 2012
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Backlog
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$
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1,809.8
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$
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1,690.5
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Long-term debt (excluding current portion)
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69.7
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51.9
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Convertible debentures
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80.4
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79.2
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Total assets
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691.3
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742.4
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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.
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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.
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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.
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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