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The Churchill Corporation Reports 2012 Third Quarter Results, Declares Quarterly Dividend

Industrial Services Backlog Continues to Grow

CALGARY, Nov. 5, 2012 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today released its 2012 third quarter results and declared a quarterly dividend of $0.12 per common share. For the third quarter of 2012, Churchill's revenue was $303.2 million, EBITDA was $12.1 million, and Churchill recorded net earnings of $1.8 million. Comparable results for the third quarter of 2011 were revenue of $379.3 million, EBITDA of $18.3 million and net earnings of $6.1 million. Backlog as of September 30, 2012 was $1,731.0 million compared to $1,842.6 million as of December 31, 2011.

The dividend will be paid January 15, 2013 to shareholders of record on December 31, 2012. The ex-dividend date is December 27, 2012. The Corporation has a dividend reinvestment plan in place for which details are available on Churchill's website (


•     Industrial Services segment backlog increases to $413.8 million compared to $288.0 million at June 30, 2012.

  • Awarded a 3 year oil sands maintenance contract, worth $120 million, with a 2 year option valued at an additional $80 million to provide electrical and instrumentation services.
  • A long standing oil sands customer has renewed its commitment to CSG through a 2 year maintenance contract worth $40 million.
  • An industrial owner in Kitimat, BC has awarded CSG a $25 million building cladding contract.
  • A major module contractor has signed CSG to a multi-use contract valued at $15 million to provide electrical and instrumentation services for module construction in Edmonton.

•     General Contracting segment backlog increases to $1,119.2 million compared to $1,064.4 million at June 30, 2012.

  • Awarded $147 million contract to expand the Winnipeg Convention Centre.


  3 Months Ended Sept. 30 9 Months Ended Sept. 30
($millions, except per share amounts) 2012 2011 2012 2011
Contract revenue  $ 303.2  $ 379.3  $ 932.2  $ 1,024.8
Contract income 27.7 40.5 89.2 112.8
EBITDA from continuing operations 12.1 18.3 30.6 52.5
Net earnings 1.8 6.1 0.8 17.7
Net earnings per common share - Basic 0.07 0.26 0.03 0.73
  - Diluted 0.07 0.24 0.03 0.69
      As of Sept. 30, 2012 As of Dec. 31, 2011
Backlog       $ 1,731.0  $ 1,842.6
Long-term debt (excluding current portion)     68.5 60.4
Convertible debentures     78.5 76.7
Total assets     850.6 888.5


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 third quarter 2012 management discussion and analysis ("MD&A").

  • Backlog of $1,731.0 million as of September 30, 2012, (December 31, 2011 - $1,842.6 million) was comprised of General Contracting segment backlog of $1,119.2 million (December 31, 2011 - $1,445.3 million); Commercial Systems segment backlog of $198.1 million (December 31, 2011 - $133.3 million); and Industrial Services segment backlog of $413.8 million (December 31, 2011 - $264.0 million).
  • Revenue for the third quarter of 2012 was $303.2 million compared to $379.3 million in the three months ended September 30, 2011, a 20% decrease. Revenue declined in the General Contracting, Commercial Systems and Industrial Services operating segments by $78.7 million (32%), $3.8 million (8%), and $2.2 million (2%) respectively, primarily as a result of being in the early stages of construction on new projects and project delays in executing backlog.
  • Third quarter 2012 EBITDA was $12.1 million, compared to $18.3 million reported in the third quarter of 2011. The decrease in EBITDA resulted primarily from lower margins and project execution challenges incurred in Alberta, Saskatchewan and Manitoba.
  • Churchill reported net earnings of $1.8 million in the third quarter of 2012, compared to reported net earnings of $6.1 million in the three months ended September 30, 2011. The difference was primarily attributable to the change in EBITDA set out above.

"Notwithstanding some of our near-term project execution challenges, we believe the company is well-positioned for the long-term," said Doug Haughey, Churchill's CEO. "All of our operating companies are leaders in their business segments, each of these segments has attractive fundamentals and Churchill is well-positioned geographically in Western Canada."


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 expects revenue levels in 2013 to be consistent with 2012 levels; however annualized EBITDA margins will be lower as a result of more competitive go-in fees and executing lower margin work.
  • Within the Industrial Services segment, CSG expects to continue delivering strong revenues and modestly softer margins into 2013.

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.

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 current and future projects, and in respect to those projects, the estimated completion dates, associated risks, anticipated financial results to be derived from contracts awarded in the third quarter and the Corporation's ability to improve financial performance. 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  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:

Please contact:

Doug Haughey
Chief Executive Officer
The Churchill Corporation
(403) 685-7777

Andrew Apedoe
Vice President, Investor Relations
The Churchill Corporation
(403) 685-7775