Canada NewsWire
CALGARY, Aug. 9, 2018
Second quarter adjusted EBITDA up 27%
Approximately $250 million added to consolidated backlog
30th consecutive quarterly dividend of $0.12 per common share declared
Dividend payout ratio improves to 35.7%
CALGARY, Aug. 9, 2018 /CNW/ - Stuart Olson Inc. (TSX: SOX, SOX.DB.A) ("Stuart Olson" or the "Company") today announced second quarter 2018 financial results, and declared its 30th consecutive quarterly dividend of $0.12 per common share.
"In the second quarter we again delivered significantly higher year-over-year adjusted EBITDA, while improving our dividend payout ratio to 35.7%," said David LeMay, President and CEO of Stuart Olson.
"We also added approximately $250 million to our consolidated backlog during the quarter. In addition to the previously announced award of a project to construct a large agricultural facility in Western Canada, the Buildings Group was also awarded two construction management projects with a repeat post-secondary institution client in the group's growing Ontario market, as well as another strategic horizontal infrastructure award in British Columbia. Our Commercial Systems Group was also awarded a number of smaller projects, including work on a transportation facility in Alberta and projects to upgrade public facilities in Manitoba."
"In terms of full-year 2018, we continue to expect meaningfully higher year-over-year adjusted EBITDA as we focus our organization on operational excellence and sector and geographic diversification," added Mr. LeMay.
FINANCIAL HIGHLIGHTS
Three months ended |
Six months ended | ||||
June 30 |
June 30 | ||||
$millions, except percentages and per share amounts |
2018 |
2017 |
2018 |
2017 | |
Contract revenue |
249.3 |
246.4 |
515.1 |
466.5 | |
Contract income |
25.5 |
20.6 |
49.8 |
40.7 | |
Contract income margin |
10.2% |
8.4% |
9.7% |
8.7% | |
Adjusted EBITDA |
9.0 |
7.1 |
17.1 |
12.8 | |
Adjusted EBITDA margin |
3.6% |
2.9% |
3.3% |
2.7% | |
Net earnings (loss) |
1.1 |
0.5 |
2.7 |
0.3 | |
Earnings (loss) per share |
|||||
Basic earnings (loss) per share |
0.04 |
0.02 |
0.10 |
0.01 | |
Diluted earnings (loss) per share |
0.04 |
0.02 |
0.10 |
0.01 | |
Dividends declared per share |
0.12 |
0.12 |
0.24 |
0.24 | |
Adjusted free cash flow |
3.8 |
(0.1) |
9.5 |
3.6 | |
Adjusted free cash flow per share |
0.14 |
nil |
0.35 |
0.13 | |
$millions |
Jun. 30, 2018 |
Dec. 31, 2017 | |||
Backlog |
1,603.2 |
1,721.4 | |||
Working capital |
88.3 |
33.1 | |||
Long-term debt (excluding current portion) |
54.5 |
6.0 | |||
Convertible debentures (excluding equity portion) |
77.2 |
76.2 | |||
Total assets |
638.3 |
630.3 |
These financial results are presented in conformance with International Financial Reporting Standards ("IFRS"). All figures are in Canadian dollars unless otherwise noted. Certain financial and operational measures referred to in this press release, including "contract income margin", "adjusted EBITDA", "adjusted EBITDA margin", "backlog", "working capital", "adjusted free cash flow", "adjusted free cash flow per share", "dividend payout ratio", "additional borrowing capacity", "available liquidity" and "net long-term indebtedness to adjusted EBITDA", are not prescribed measures under IFRS. For a description of these measures, see the "Non-IFRS Measures" section in Stuart Olson's June 30, 2018 Management's Discussion & Analysis ("MD&A").
SECOND QUARTER ("Q2") 2018 OVERVIEW
2018 OUTLOOK
Stuart Olson Consolidated
Industrial Group
Buildings Group
Commercial Systems Group
Corporate Group
CONFERENCE CALL AND WEBCAST
Stuart Olson will hold a conference call and webcast to discuss its 2018 second quarter results on Friday, August 10, 2018 at 7:30 a.m. Mountain Time (9:30 a.m. Eastern). The webcast will be broadcast live and will also be available for replay in the Presentations & Events subsection under Investor Relations on the Company's website at www.stuartolson.com. For those unable to listen during the live webcast, a replay will be available on the website shortly after the conclusion of the conference call for a period of 90 days. Financial analysts and institutional investors who wish to ask questions during the conference call are invited to call 1-888-390-0546 (Canada and USA) or 1-587-880-2171 (outside Canada and USA). For those unable to participate on the live call, a replay will be made available until Friday, August 24, 2018 by dialing 1-888-390-0541 (Canada and USA) or 1-416-764-8677 (outside Canada and USA), pin 558699. The public is invited to listen to the live conference call, webcast or the replay.
ABOUT STUART OLSON INC.
Stuart Olson Inc. provides general contracting and electrical building systems contracting in the public and private construction markets as well as general contracting, electrical, mechanical and specialty trades, such as insulation, cladding and asbestos abatement, in the industrial construction and services market. The Company operates office locations and projects throughout Western Canada, Ontario and the territories. Stuart Olson was recognized as one of Alberta's Top 70 Employers in 2018 for the second consecutive year. Stuart Olson's common shares and convertible debentures are listed on the Toronto Stock Exchange under the symbols "SOX" and "SOX.DB.A", respectively. www.stuartolson.com
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, the statements made under the section titled "2018 Outlook" including, without limitation, those relating to:
(a) revenue projections;
(b) Stuart Olson's backlog and the implication that such backlog will be converted into revenues;
(c) 2018 adjusted EBITDA and adjusted EBITDA margin projections;
(d) economic conditions;
(e) the outlook for each of Stuart Olson's operating groups.
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", "seek", "continue", "see", "project", "predict", "propose", "targeting", "potential", "could", "might", "grow", "momentum" 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 Company'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 Company's anticipated results will not be achieved. Although the Company 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 Company's Annual Information Form filed with the securities regulatory authorities in Canada under the Company's profile at www.sedar.com. 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 Company 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.
SOURCE Stuart Olson Inc.
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