Churchill First Quarter Earnings Up 41%
EDMONTON, May 11 /CNW/ - The Churchill Corporation today reported its
financial performance for the first quarter ended March 31, 2000. (All
comparative figures restated to reflect the adoption of the new CICA method of
accounting for income tax.)
Highlights of the first quarter include:
----------------------------------------
- Revenue was $56 million, compared to $61 million during the first
quarter of 1999.
- Earnings from construction operations increased by 31% to $1,145,000
compared to $876,000 during the first quarter of 1999.
- Net earnings increased by 41% to $525,000 compared to $373,000 during
the first quarter of 1999.
- Earnings per share (basic) increased by 25% to $0.05 from $0.04 during
the first quarter of 1999.
- $108 million of additional construction contracts were obtained during
the first quarter, increasing work in hand to $252 million on March 31,
2000 from $199 million on December 31, 1999, almost double the
$128 million level at the same time last year.
- Churchill remains in a strong financial position with working capital
of $13 million and shareholders' equity of $20 million ($1.81 per
share) on March 31, 2000.
``We are pleased with the strong financial performance and large amount
of new work obtained in the first quarter,'' commented Hank Reid, Churchill
President and Chief Executive Officer. ``We are also pleased with the
progress made in implementing our strategic plan with the addition of L. Bruce
Rintoul as Vice President Industrial and the acquisition by Triton Projects of
H&H, a Bonnyville, Alberta based oilfield mechanical and maintenance
contractor.''
The Churchill Corporation is a western Canadian commercial and industrial
construction corporation with annual revenue in excess of $225 million.
Churchill shares are listed on The Toronto Stock Exchange under the trading
symbol ``CUQ''.
(financial statements attached)
<<
THE CHURCHILL CORPORATION
Consolidated Balance Sheets
As at March 31 (Unaudited)
Restated
($ thousands) 2000 1999 *
-------- -----------
ASSETS
Current Assets
Cash and Term Deposits $ 17,010 $ 22,895
Accounts Receivable 44,679 43,307
Inventories and Prepaid Expenses 1,120 1,384
Properties for Sale 297 297
Future Income Tax Assets 2,256 2,969
Current Portion of Agreement Receivable 75 28
-------- -----------
65,437 70,880
Agreement Receivable - 76
Equity Investment 938 836
Future Income Tax Assets 390 655
Property and Equipment 6,372 3,165
-------- -----------
$ 73,137 $ 75,612
-------- -----------
-------- -----------
LIABILITIES
Current Liabilities
Accounts Payable $ 38,411 $ 37,105
Contract Advances and Unearned Income 13,960 17,903
Current Portion of Long-Term Debt - 226
-------- -----------
52,371 55,234
Long-Term Debt - 3,182
Future Income Tax Liabilities 71 71
Minority Interest 652 520
-------- -----------
53,094 59,007
SHAREHOLDERS' EQUITY 20,043 16,605
-------- -----------
$ 73,137 $ 75,612
-------- -----------
-------- -----------
* First quarter 1999 Consolidated Financial Statements
restated to reflect the new method of accounting for income taxes
recommended by The Canadian Institute of Chartered Accountants
(CICA).
THE CHURCHILL CORPORATION
Consolidated Statements of Earnings
Three Months ended March 31 (Unaudited)
Restated
($ thousands, except per share amounts) 2000 1999 *
---- ----
CONSTRUCTION OPERATIONS
Contract Revenue $ 55,581 $ 60,846
Contract Costs 51,673 57,140
-------- --------
Contract Income 3,908 3,706
Interest Income 296 262
Sundry Income 15 12
Indirect and Administrative Expenses (2,801) (2,652)
Depreciation (228) (150)
Interest Expense - (130)
Amortization of Deferred Loan Costs - (106)
Minority Interest (45) (66)
-------- --------
Earnings from Construction Operations 1,145 876
-------- --------
NON-CONSTRUCTION OPERATIONS
Loss before Depreciation and Interest (128) (129)
Depreciation - (4)
Interest Expense (29) (41)
-------- --------
Loss from Non-Construction Operations (157) (174)
-------- --------
Earnings Before Income Taxes 988 702
Income Taxes (463) (329)
-------- --------
Net Earnings $ 525 $ 373
-------- --------
-------- --------
Net Earnings Per Common Share
Basic $ 0.05 $ 0.04
-------- --------
-------- --------
Fully Diluted $ 0.04 $ 0.03
-------- --------
-------- --------
The weighted average number of common shares outstanding during the
three months ended March 31, 2000 is 10,406,382 (1999 - 10,380,963).
* First quarter 1999 Consolidated Financial Statements restated to
reflect the new method of accounting for income taxes recommended by
The Canadian Institute of Chartered Accountants (CICA).
THE CHURCHILL CORPORATION
Consolidated Statements of Net Cash Flow
Three Months ended March 31 (Unaudited)
Restated
($ thousands) 2000 1999 *
---- ----
OPERATING ACTIVITIES
Net earnings $ 525 $ 373
Add non-cash items
Net equity loss of affiliate 132 181
Depreciation 228 154
Amortization of deferred loan costs - 106
Future income taxes 152 292
-------- --------
1,037 1,106
Change in minority interest 45 53
Net change in accounts receivable, inventories
and prepaid expenses (10,782) (2,189)
Net change in accounts payable, contract
advances and unearned income 2,717 1,545
Change in income taxes payable (1,156) (1,003)
-------- --------
(8,139) (488)
-------- --------
INVESTING ACTIVITIES
Proceeds from agreement receivable 8 6
Proceeds on disposal of properties for sale - 734
Proceeds on disposal of property and equipment 26 14
Additions to property and equipment (3,305) (89)
-------- --------
(3,271) 665
-------- --------
FINANCING ACTIVITIES
Long-term debt repayment - (773)
Redemption of common shares (229) (26)
Issuance of common shares 320 17
-------- --------
91 (782)
-------- --------
Decrease in cash (11,319) (605)
Cash and term deposits, beginning of period 28,329 23,500
-------- --------
Cash and term deposits, end of period $ 17,010 $ 22,895
-------- --------
-------- --------
* First quarter 1999 Consolidated Financial Statements restated to
reflect the new method of accounting for income taxes recommended by
The Canadian Institute of Chartered Accountants (CICA).
>>
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For further information: please contact The Churchill Corporation, H.R.
(Hank) Reid, P. Eng, MBA, President and CEO or Bill McKenzie, MBA, CFA, Vice
President, Corporate Development, (780) 454-3667, To request a free copy of
this organization's annual report please go to www.newswire.ca and click on
reports@cnw. |
