Media Centre

News Releases

The Churchill Corporation Reports Third Quarter 2011 Results

Reports Record Backlog, Declares Quarterly Dividend

CALGARY, Nov. 8, 2011 /CNW/ - The Churchill Corporation (TSX: CUQ, CUQ.DB) ("Churchill" or the "Corporation") today released its third quarter 2011 results and declared a quarterly dividend of $0.12 per common share. The dividend will be paid January 17, 2012 to shareholders of record on December 30, 2011. The ex-dividend date is December 28, 2011. The Corporation has a dividend reinvestment plan in place for which details are available on Churchill's website (


  • $475 million of new awards added to backlog in the third quarter.
  • Over $1.0 billion of backlog additions year-to-date results in 19% increase to $1.8 billion compared to $1.6 billion as of December 31, 2010.
  • Outlook for 2012 is positive.
  3 Months Ended September 30 9 Months Ended September 30
($millions, except per share amounts)   2011   2010 2011 2010
Contract revenue $ 379.3 $ 386.6 $ 1,024.8 $ 792.4
Contract income   40.5   44.6   112.8   94.3
Earnings before interest, taxes, depreciation and
amortization (EBITDA) from continuing operations
  18.3   15.9   52.5   43.7
Net earnings   6.1   3.1   17.7   20.9
Net earnings per common share                
      - Basic   0.26   0.15   0.73   1.08
      - Diluted   0.25   0.12   0.72   0.99
          As of September
30, 2011
As of Dec. 31, 2010
Backlog         $ 1,840.1 $ 1,555.0
Long-term debt           66.6   74.1
Convertible debentures           76.1   74.5
Total assets           894.1   871.8

Third quarter 2011 results are presented in conformance with International Financial Reporting Standards ("IFRS") and prior year third quarter results have been restated accordingly. 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 under IFRS. For a description of these measures, see the Terminology section in Churchill's third quarter 2011 management discussion and analysis ("MD&A").

  • Revenue for the quarter was $379.3 million compared to $386.6 million in the third quarter of 2010.
  • Quarterly earnings before interest, taxes, depreciation and amortization ("EBITDA") were $18.3 million, compared to $15.9 million reported in the third quarter of 2010.
  • Net earnings were $6.1 million, compared to $3.1 million recorded in the third quarter of 2010. Basic and diluted earnings per share were $0.26 and $0.25 respectively for the 2011 third quarter.
  • Backlog increased 18% to $1,840 million as of September 30, 2011, compared to $1,555 million on December 31, 2010 and $1,706 million on June 30, 2011.
  • Stuart Olson Dominion Construction Ltd. ("Stuart Olson Dominion"), which forms Churchill's General Contracting segment, generated third quarter 2011 revenue of $246.7 million and EBITDA of $5.8 million, (EBITDA margin of 2.4%).
  • Canem Systems Ltd. ("Canem") is an electrical and data systems contractor that forms Churchill's Commercial Systems segment. Canem produced revenue of $49.5 million and EBITDA of $5.0 million (EBITDA margin of 10.0%) in the third quarter of 2011.
  • Laird Electric Inc. ("Laird"), Insulation Holdings Inc. ("Insulation Holdings") and Broda Construction Inc. ("Broda") form Churchill's Industrial Services segment. This segment produced 2011 third quarter revenue of $99.9 million and EBITDA of $10.4 million (EBITDA margin of 10.4%).

"During the third quarter of 2011 we continued to grow our operations base and add quality projects to our backlog, providing visibility of our future revenue sources and strengthening our outlook," said Jim Houck, Churchill's President and CEO. "Four of our five operating subsidiaries: Canem, Laird, Insulation Holdings and Broda, all performed at or near our expectations in the quarter; however, Stuart Olson Dominion's earnings were below expectations. Although Stuart Olson Dominion's performance in adding quality projects to backlog was stellar, their earnings shortfall was driven largely by four underperforming fixed price projects, which resulted in $3.2 million of losses recorded in the third quarter, or $0.10 in after tax earnings per share. On a year-to-date basis, the losses generated from these projects are $7.1 million, equating to $0.21 in after tax earnings per share. These four projects are almost complete and we do not anticipate any further losses from them in future quarters."


"Going forward, we expect that Stuart Olson Dominion will continue to accumulate a portfolio of high potential projects in its backlog," continued Mr. Houck. "Most of these projects, including the three Alberta hospitals added to backlog in the third quarter, are construction management assignments, so they do not have the price and schedule risk that caused losses in the four fixed price projects previously mentioned. We also expect that Canem will continue to execute on its best-in-class operational efficiencies and Broda will continue to win profitable projects in the civil and mining sectors. As long as our resource-based Western Canadian economy continues to thrive, Laird and Insulation Holdings will continue to build on their strong safety records and operational excellence to grow their operations."

"Our plan to create value for our shareholders remains the same. We intend to build on the profitable organic growth of our five operating companies and, when financial, operational and market conditions are right, execute acquisitions that enhance our strategic goals and fit our entrepreneurial culture."


The Corporation will host a conference call discussing Churchill's third quarter results at 9:30 a.m. Eastern Time on November 9. To listen to the conference call, visit

A full copy of Churchill's third quarter 2011 management's discussion and analysis, financial statements and notes can be obtained at and on Churchill's website (

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 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 following:

a) management's visibility on future revenue sources and its 2012 outlook for the Corporation's businesses;
b) the Corporation's current and future projects, and in respect to those projects, the completion status, associated risks and potential earnings;
c) management's expectations that the Corporation's operating companies will improve their business prospects or continue to grow their revenue, earnings and backlog in any manner whatsoever including, without limitation, through margin expansion, organic growth or productivity efficiencies; and
d) the ability of management to execute upon acquisitions that enhance the strategic goals of the Corporation.

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 Report 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.


For further information:
James C. Houck, B.Sc., MBA
President and Chief Executive Officer
The Churchill Corporation
(403) 685-7777
  Andrew Apedoe
Vice President Investor Relations & Secretary
The Churchill Corporation
(403) 685-7775
  Ken Wetherell, CFA
Director, Investor Relations
The Churchill Corporation
(403) 685-7776