Churchill Profits Increase in First Quarter
CALGARY, May 11 /CNW/ - The Churchill Corporation today reported net
earnings of $567,000 or $0.05 per common share for the three months ended
March 31, 1999. This compares with $520,000 or $0.05 per common share for the
same period in 1998.
First quarter revenue of $61 million is 51% greater than in 1998, with
the bulk of the growth being commercial construction by Stuart Olson with its
traditionally lower operating margins. The resulting 14% improvement in net
contract income is partially offset by $200,000 in non-recurring Year 2000
compliance related costs in the quarter.
Churchill's balance sheet remains solid with March 31st cash balances of
$23 million and working capital of $13 million. During the quarter, long term
debt was reduced by $773,000, largely from the proceeds of the sale of the
Corporation's last significant non-core real estate asset. Subsequent to
March 31, 1999, a further $1.3 million was prepaid, thereby reducing total
debt to only $2.1 million.
Hank Reid, President and Chief Executive Officer of Churchill said,
''Churchill has performed well in a construction market that has not been as
buoyant as early 1998. We have $128 million work-in-hand at March 31st with
several major project awards pending. We remain very excited by future
prospects.''
The Churchill Corporation is a diversified construction corporation
listed on the Alberta Stock Exchange under the symbol CUQ.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
(summary financial information attached)
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($ thousands, except per share amounts) 3 Months Ended
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31-Mar-99 31-Mar-98
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Construction Operations:
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Contract Revenue $ 60,846 $ 40,409
Contract Costs 57,140 37,155
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Contract Income 3,706 3,254
Other Income 274 134
Indirect and Administrative Expenses (2,652) (2,185)
Other Expenses (386) (329)
Minority Interest (66) (81)
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Earnings from Construction Operations 876 793
Loss from Non-Construction Operations (174) (183)
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Net Earnings Before Tax 702 610
Income Tax Provision (135) (90)
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Net Earnings $ 567 $ 520
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Net Earnings Per Common Share:
Basic $ 0.05 $ 0.05
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Fully Diluted $ 0.05 $ 0.05
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Weighted average number of common shares ----------------------
outstanding during the quarter 10,380,963 9,777,185
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