CHURCHILL CORP ("CUQ-T") - Achieves Record Second Quarter
The Churchill Corporation achieved record performance during its second quarter ended June 30, 2000.
Highlights of the second quarter include:
- Revenue increased to $81 million, compared to $59 million during the
second quarter of 1999.
- Earnings from construction operations increased by 280% to a second
quarter record of $2,409,000, compared to $859,000 during the same
period last year.
- Net earnings increased by 275% to a second quarter record of
$1,339,000, compared to $487,000 during the same period last year.
- Earnings per share, on a fully diluted basis, were $0.12 for the
quarter, compared to $0.04 during the second quarter of 1999.
- $135 million of additional construction contracts were obtained during
the second quarter, increasing work in hand to an all-time high of
$306 million on June 30, 2000, 56% more than the $196 million level on
June 30, 1999.
Highlights of the six month period include:
- Revenue increased to $137 million, compared to $120 million during the
first six months of 1999.
- Earnings from construction operations more than doubled to $3,554,000
from $1,735,000 during the first six months of 1999.
- Net earnings more than doubled to $1,864,000 from $860,000 during the
first six months of 1999.
- Earnings per share, on a fully diluted basis, were $0.16 for the six
month period, compared to $0.08 during the first six months of 1999.
- Churchill remains in a strong financial position with working capital
of $14 million and shareholders' equity of $21 million ($1.94 per
share) on June 30, 2000.
"We are pleased with the record financial performance and the large amount of new work obtained in the quarter," Hank Reid, Churchill President and Chief Executive Officer said. "We anticipate that our high level of work in hand will enable us to achieve revenue well in excess of $250 million in 2000 and to maintain our positive momentum into 2001."
The Churchill Corporation provides commercial building, industrial construction and related services throughout western Canada. Churchill shares are listed on The Toronto Stock Exchange under the trading symbol "CUQ."
(financial statements attached)
THE CHURCHILL CORPORATION
Consolidated Balance Sheets
As at June 30 (Unaudited)
Restated
2000 1999(x)
($ thousands)
ASSETS
Current Assets
Cash and Term Deposits $12,230 $19,675
Accounts Receivable 68,590 42,141
Inventories and Prepaid Expenses 1,033 1,021
Properties for Sale 297 297
Future Income Tax Assets 1,073 2,746
Current Portion of Agreement Receivable 68 28
83,291 65,908
Agreement Receivable - 68
Equity Investment 1,086 931
Future Income Tax Assets 390 567
Property and Equipment 6,369 3,239
$91,136 $70,713
LIABILITIES
Current Liabilities
Accounts Payable $45,725 $37,150
Contract Advances and Unearned Income 23,506 15,850
69,231 53,000
Future Income Tax Liabilities 71 71
Minority Interest 738 446
70,040 53,517
SHAREHOLDERS' EQUITY 21,096 17,196
$91,136 $70,713
(x) Second quarter 1999 Consolidated Financial Statements restated to
reflect the new method of accounting for income taxes recommended by
The Canadian Institute of Chartered Accountants (CICA).
THE CHURCHILL CORPORATION
Consolidated Statements of Earnings
Six Months ended June 30 (Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
Restated Restated
($ thousands,
except per share amounts) 2000 1999(x) 2000 1999(x)
CONSTRUCTION OPERATIONS
Contract Revenue $81,246 $59,073 $136,827 $119,919
Contract Costs 74,881 55,204 126,554 112,344
Contract Income 6,365 3,869 10,273 7,575
Interest Income 222 628 518 890
Sundry Income 20 13 35 25
Indirect and Administrative
Expenses (3,759) (3,028) (6,560) (5,680)
Depreciation (353) (163) (581) (313)
Interest Expense - (69) - (199)
Amortization of Deferred
Loan Costs - (320) - (426)
Minority Interest (86) (71) (131) (137)
Earnings from Construction
Operations 2,409 859 3,554 1,735
NON-CONSTRUCTION OPERATIONS
Earnings (Loss) before
Depreciation and Interest 151 88 23 (41)
Depreciation - - - (4)
Interest Expense (21) (29) (50) (70)
Earnings (Loss) from
Non-Construction Operations 130 59 (27) (115)
Earnings Before Income Taxes 2,539 918 3,527 1,620
Income Taxes (1,200) (431) (1,663) (760)
Net Earnings $1,339 $487 $1,864 $860
Net Earnings Per Common Share
Basic $0.12 $0.04 $0.17 $0.08
Fully Diluted $0.12 $0.04 $0.16 $0.08
The weighted average number of common shares outstanding during the six
months ended June 30, 2000 is 10,702,475 (1999 - 10,428,323).
The actual number of common shares issued is 10,885,474 and there are
1,027,000 outstanding share options.
(x) Second quarter 1999 Consolidated Financial Statements restated to
reflect the new method of accounting for income taxes recommended by
The Canadian Institute of Chartered Accountants (CICA).
THE CHURCHILL CORPORATION
Consolidated Statements of Net Cash Flow
Six Months ended June 30 (Unaudited)
Restated
2000 1999(x)
($ thousands)
OPERATING ACTIVITIES
Net earnings $ 1,864 $ 860
Add non-cash items
Net equity (earnings) loss of affiliate (16) 86
Depreciation 581 317
Amortization of deferred loan costs - 426
Future income taxes 1,335 603
3,764 2,292
Change in minority interest 131 (21)
Net change in accounts receivable, inventories
and prepaid expenses (34,606) (980)
Net change in accounts payable, contract
advances and unearned income 19,577 (463)
Change in income taxes payable (1,156) (1,003)
(12,290) (175)
INVESTING ACTIVITIES
Proceeds from agreement receivable 15 14
Proceeds on disposal of properties for sale - 734
Proceeds on disposal of property and equipment 157 17
Additions to property and equipment (3,786) (329)
(3,614) 436
FINANCING ACTIVITIES
Long-term debt repayment - (4,181)
Redemption of common shares (515) (25)
Issuance of common shares 320 120
(195) (4,086)
Decrease in cash (16,099) (3,825)
Cash and term deposits, beginning of period 28,329 23,500
Cash and term deposits, end of period $ 12,230 $ 19,675
(x) Second 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). TEL: (780) 454-3667
The Churchill Corporation
H. R. (Hank) Reid, P. Eng., MBA
President and Chief Executive Officer
Bill McKenzie, MBA, CFA
Vice President Corporate Development |
