Churchill Achieves Milestone Second Quarter
EDMONTON, Aug. 11 /CNW/ - The Churchill Corporation achieved important
milestones during its second quarter. It repaid all of its debt. Revenue and
earnings from construction operations were up substantially from last year.
New construction contracts of $113 million were obtained during the quarter.
Churchill accelerated the full repayment of the 16% mezzanine loan it
borrowed in 1997 to finance a major capital restructuring. This early loan
repayment resulted in $362,000 in accelerated amortization of deferred loan
costs during the six-month interim period.
Revenue of $59 million in the second quarter and $120 million in the
first six months of 1999 exceeded revenue in the comparable periods of 1998 by
29% and 39%, respectively. Earnings from construction operations increased to
$1.7 million in the first six months of 1999, up 24% from last year.
Net earnings are $693,000 in the second quarter, compared to net earnings
of $732,000 in the same period in 1998 that included a $229,000 gain on the
sale of surplus real estate. Net earnings of $1.26 million in the first six
months of 1999 are after providing for Year 2000 preparedness costs of
$227,000 and the $362,000 of accelerated amortization of deferred loan costs.
Net earnings in the first six months of 1998 were $1.25 million. Net earnings
per common share, on a fully diluted basis, are $0.06 for the quarter and
$0.11 for the six-month interim period, compared to $0.07 and $0.12,
respectively, in 1998.
During the second quarter, $113 million in construction contracts were
awarded to Churchill, resulting in a June 30, 1999 backlog of $196 million.
This compares to a backlog of $128 million on March 31, 1999 and $180 million
on June 30, 1998. Subsequent to June 30th, Stuart Olson was awarded the $30
million Coquitlam Centre Mall expansion project in British Columbia.
Churchill President Hank Reid said, ''I am satisfied with our operating
performance and healthy backlog of work. With no debt, we have a solid
financial platform which will enable us to continue to benefit from the strong
construction market in western Canada.''
The Churchill Corporation is a diversified construction corporation
listed on the Alberta Stock Exchange under the symbol CUQ.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
<<
($ thousands, except per share amounts)
3 Months 3 Months 6 Months 6 Months
Ended Ended Ended Ended
---------- ---------- ---------- ----------
30-Jun-99 30-Jun-98 30-Jun-99 30-Jun-98
---------- ---------- ---------- ----------
Construction Operations:
Contract Revenue $ 59,073 $ 45,637 $ 119,919 $ 86,046
Contract Costs 55,204 42,345 112,344 79,500
---------- ---------- ---------- ----------
Contract Income 3,869 3,292 7,575 6,546
Interest Income 628 113 890 241
Sundry Income 13 127 25 133
Indirect and Administrative
Expenses (3,028) (2,543) (5,680) (4,728)
Other Expenses (552) (330) (938) (659)
Minority Interest (71) (53) (137) (134)
---------- ---------- ---------- ---------
Earnings from Construction
Operations 859 606 1,735 1,399
Earnings (Loss) from
Non-Construction Operations 59 245 (115) 62
---------- ---------- ---------- ---------
Net Earnings Before Tax 918 851 1,620 1,461
Income Tax Provision (225) (119) (360) (209)
---------- ---------- ---------- ---------
Net Earnings $ 693 732 1,260 1,252
---------- ---------- ---------- ---------
---------- ---------- ---------- ---------
Net Earnings Per Common
Share:
Basic $ 0.07 $ 0.08 $ 0.12 $ 0.13
---------- ---------- ---------- ---------
---------- ---------- ---------- ---------
Fully Diluted $ 0.06 $ 0.07 $ 0.11 $ 0.12
---------- ---------- ---------- ---------
---------- ---------- ---------- ---------
Weighted average number of common shares outstanding during the six
months ended June 30, 1999 is 10,428,323 (1998 - 9,793,229)
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Looking beyond the numbers as detailed above, great results! |
