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Stuart Olson Reports Second Quarter Results

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Stuart Olson Reports Second Quarter Results

Canada NewsWire

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

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