News Releases
CALGARY, April 12 /CNW/ - The Churchill Corporation (TSX: CUQ) ("Churchill" or the "Corporation") today announced that in the first quarter of 2011 the companies in its Industrial Services Segment have been awarded approximately $165 million of new contracts by public and private sector clients in Western Canada. Churchill's Industrial Services Segment consists of Broda Construction Inc. ("Broda"), Insulation Holdings Inc. ("IHI") and Laird Electric Inc. ("Laird").
Broda has added approximately $48 million of new contract awards in the first quarter, including a contract in Alberta for the rough grading of the Calgary Airport Authority's new Runway Development Program. Construction is expected to start in late April 2011 and the target completion date for Broda's portion of the project is the end of the construction season in 2012. Broda expects to employ approximately 175 personnel on this high-profile project. This contract demonstrates Broda's ability to win bigger projects as a subsidiary of a larger public company. The airport's new runway and terminal are expected to be operational in March 2014.
Laird has secured approximately $55 million of new contract awards in the first quarter. This includes the award of a contract for continued maintenance work for an oil sands client in Fort McMurray, as well as increased scope at an industrial facility in Edmonton. In addition, Laird has broadened its scope of operations beyond Alberta with a contract for new work in Saskatchewan in the potash mining sector. All of the work is currently mobilized and most of it will be completed in 2011. Laird expects to employ up to 400 personnel on these projects.
IHI has secured approximately $62 million of new contract awards in the first quarter of 2011. This consists of $35 million of projects in Saskatchewan, including oil refinery work and projects in the potash mining sector, and $27 million of refinery and oil sands work primarily in Alberta. The work will begin immediately and will continue through the second quarter of 2013. IHI expects to employ up to 400 personnel on these projects.
"We are pleased to see our Industrial Services Segment building high quality backlog as the industrial spend in Western Canada remains robust," said Jim Houck, Churchill's CEO. "Some of these project additions demonstrate the revenue synergies that we expected from our Seacliff acquisition as we combined the customer lists of Broda, a former Seacliff company operating primarily in Saskatchewan, and Laird and IHI, both legacy Churchill companies. We believe our Industrial Services companies are well positioned to secure additional projects as industrial growth continues in the resource extraction and industrial infrastructure industries of Western Canada."
The Industrial Services Segment's backlog at the end of the first quarter will consist of the 2010 year-end backlog plus new contract awards in the quarter, minus backlog consumed to generate revenue in the quarter.
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, northwest Ontario and the Yukon. Churchill common shares are listed on the Toronto Stock Exchange under the symbol "CUQ". www.churchillcorporation.com
Forward Looking Information
Certain statements in this 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.
