Here’s our Pick of the Month – Feb 09

Article Excerpt

THE CHURCHILL CORP. $8 (Toronto symbol CUQ: SI Rating: Speculative) (780-454-3667; www.churchillcorporation.com; Shares outstanding: 17.8 million; Market cap: $142.6 million) offers a range of construction, general contracting, maintenance, insulation, fireproofing, electrical and power-line construction services to clients in the resource extraction, industrial, utility and power-generation industries throughout western Canada. In the three months ended September 30, 2008, Churchill’s revenues rose 12.4%, to $228.9 million from $203.8 million a year earlier. Earnings almost doubled, to $11.2 million or $0.62 a share from $5.6 million or $0.31 a share. Cash flow per share almost tripled, to $0.60 from $0.21. In the latest quarter, Churchill gained from strong construction activity and growth in all of its industrial divisions. Earnings and cash flow rose more than revenues due to higher profit margins at many projects. The higher margins came from strong project execution, less contracted-out work, and greater use of the company’s own equipment, rather than rented equipment. Churchill’s backlog of contracts rose 26% in the latest…