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(TSX: CUQ)
All figures are unaudited and in Canadian dollars unless otherwise noted. Certain financial and operational measures referred to in this press release are not prescribed under Canadian Generally Accepted Accounting Principles (GAAP). For a description of these measures, see Terminology section on page 21 of Churchill's second quarter management's discussion and analysis (MD&A).
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Highlights and Significant Items
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- On May 17, 2010, Churchill entered into an agreement to acquire
Seacliff Construction Corp. ("Seacliff") for $17.14 per share, and to
assume $13 million in liabilities in a transaction valued at $394
million. The transaction subsequently closed on July 13, 2010.
- Raised gross proceeds of $106 million via subscription receipts
(subsequently converted to common shares) and $86 million via
convertible debentures to partially finance the Seacliff transaction.
- Secured a new $200 million credit facility with a syndicate of
lenders, with a $75 million accordion feature to support future
initiatives. $80 million was drawn to partially fund the Seacliff
transaction.
- Achieved near record backlog of $95 million at Laird.
- Laird successfully completed the Suncor, Shell Albian and Scotford
plant turnarounds during the second quarter.
- Laird's Suncor maintenance contract was extended to April 2011.
- IHI is on track to deliver strong earnings before tax again in 2010.
Second Quarter Financial Results
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- Net earnings from continuing operations of $9.0 million ($0.51 per
share), compared to $8.0 million ($0.45 per share) in the prior year
period.
- Q2 2010 EBITDA from continuing operations of $14.0 million compared
to $12.3 million in Q2 2009.
- During the second quarter of 2010, Churchill secured $290.3 million
of new contract awards and performed $223.1 million of contract
revenue for a book-to-bill ratio of 1.3x.
- Work-in-hand at June 30, 2010, increased 43% year-over-year to $857.1
million, and totals $1.5 billion pro-forma the Seacliff acquisition.
- Backlog at June 30, 2010, remained strong at $1.2 billion, and totals
$1.9 billion on a pro-forma basis including Seacliff.
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CALGARY, Aug. 10 /CNW/ - The Churchill Corporation announced today its results for the second quarter ending June 30, 2010.
For the second quarter of 2010, contract revenue was $223.1 million compared to $136.7 million for the comparable quarter of 2009. This increase is a result of greater activity within all of our business segments. Most significantly our buildings division experienced a 38% revenue increase and Laird's electrical contracting revenue grew 481% on a year-over-year basis. Q2 2010 EBITDA from continuing operations was $14.0 million as compared to $12.3 million in Q2 2009. For the second quarter of 2010 net earnings from continuing operations were $9.0 million ($0.51 per share) compared to $8.0 million ($0.45 per share) in Q2 2009.
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Consolidated Financial Highlights
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Three months ended
June 30
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($ millions, except $ %
per share amounts) 2010 2009 Change Change
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Contract Revenue $223.1 $136.7 86.4 63%
Contract income 25.8 21.6 4.2 19%
EBITDA(1) from continuing
operations 14.0 12.3 1.7 14%
Earnings from continuing
operations before income
taxes 12.8 11.0 1.8 16%
Net earnings from
continuing operations 9.0 8.0 1.0 13%
EPS from continuing
operations - basic $0.51 $0.45 0.06 13%
Net earnings per share
- basic $0.52 $0.42 0.10 24%
Work-in-hand(1) 857.1 600.6 256.5 43%
Backlog(1) $1,182.2 $1,344.2 ($162.0) -12%
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Six months ended
June 30
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($ millions, except $ %
per share amounts) 2010 2009 Change Change
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Contract Revenue $399.7 $265.9 133.8 50%
Contract income 48.8 40.1 8.7 22%
EBITDA(1) from continuing
operations 25.8 21.5 4.3 20%
Earnings from continuing
operations before income
taxes 23.1 19.2 3.9 20%
Net earnings from
continuing operations 16.1 13.7 2.4 18%
EPS from continuing
operations - basic $0.91 $0.78 0.13 17%
Net earnings per share
- basic $0.93 $0.68 0.25 37%
Work-in-hand(1) 857.1 600.6 256.5 43%
Backlog(1) $1,182.2 $1,344.2 ($162.0) -12%
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(1) Refer to the "Terminology" section of MD&A for further details.
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"This was a historic quarter for Churchill as we transformed the company into a leading construction and industrial services company in Western Canada with the closing of the Seacliff acquisition. Effective July 14th, we began operating as a unified management team and started to implement our integration strategy. While the results of our planning and integration efforts may not be evident in terms of financial results for a few quarters, I can say that the plan we have in place should yield substantial synergies which we will report on as we go forward. Turning to Churchill's second quarter results on a stand-alone basis, I am pleased with our record results; particularly the year-over-year increase in EBITDA and net earnings from continuing operations," said Jim Houck, President and Chief Executive Officer. "Improved economic conditions in the oil sands are translating into increasing maintenance and construction activity levels on various project sites. Additionally, there are several institutional projects which are pending award which could materially impact our backlog over the next several months. Beyond these pending project awards, we also see numerous other projects in the pipeline."
A full copy of Churchill's second quarter report to shareholders, management's discussion and analysis, financial statements and notes (unaudited) can be obtained at www.churchillcorporation.com or www.sedar.com.
To listen to the conference call discussing Churchill's second quarter results, visit http://www.churchillcorporation.com/live_events.php
About The Churchill Corporation:
The Churchill Corporation provides building construction, commercial and industrial electrical contracting, heavy construction and industrial insulation services to an array of public and private sector clients. Churchill operates 39 office locations throughout British Columbia, Alberta, Saskatchewan and Manitoba. Churchill common shares are listed on the Toronto Stock Exchange under the symbol "CUQ".
FORWARD LOOKING STATEMENTS
Certain statements in this Second Quarter Press Release may constitute "forward-looking statements". Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives of the Corporation. Many of these statements can be identified by looking for words such as "believes," "expects," "may," "will," "intends," "anticipates," "estimates," "continues," or the negative thereof, or other variations thereon. Although management of Churchill believes its expectations regarding future performance of the Corporation are based on reasonable assumptions and currently available competitive, financial and economic data, market conditions and operating plans, it can give no assurance its expectations will be achieved. The Corporation cautions that, by their nature, forward-looking statements, involve risks, and uncertainties and that its actual actions, and/or results could differ materially from those expressed or implied in such forward-looking statements, and that the aforementioned risks, uncertainties and actions could affect the extent to which a particular projection materializes. The Corporation assumes no obligation to update the forward-looking statements should circumstances or the Corporation's management's estimates or opinions change, except as may be required by law.
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