Stuart Olson Inc. announced consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported contract revenue was CAD 249.3 million against CAD 246.4 million a year ago. Contract income was CAD 25.5 million against CAD 20.6 million a year ago. Adjusted EBITDA was CAD 9.0 million against CAD 7.1 million a year ago. Net earnings were CAD 1.1 million against CAD 0.5 million a year ago. Diluted earnings per share were CAD 0.04 against CAD 0.02 a year ago. Adjusted free cash flow was CAD 3.8 million or 0.14 per share against negative adjusted free cash flow of CAD 0.1 million a year ago.

For the six months, the company reported contract revenue was CAD 515.1 million against CAD 466.5 million a year ago. Contract income was CAD 49.8 million against CAD 40.7 million a year ago. Adjusted EBITDA was CAD 17.1 million against CAD 12.8 million a year ago. Net earnings were CAD 2.7 million against CAD 0.3 million a year ago. Diluted earnings per share were CAD 0.10 against CAD 0.01 a year ago. Adjusted free cash flow was CAD 9.5 million against adjusted free cash flow of CAD 3.6 million a year ago. Adjusted free cash flow per share was CAD 0.35 against CAD 0.13 a year ago.

As compared to 2017, the company expects 2018 consolidated contract revenue to be slightly higher, adjusted EBITDA to be meaningfully higher and adjusted EBITDA margin to remain stable. The company previously communicated that consolidated adjusted EBITDA increasing between 10% and 20% from 2017 level. As a result of the changes in outlook, now expects 2018 consolidated adjusted EBITDA to increase at the lower end of that range. In terms of diversification for full year 2018, the company expects to generate approximately 40% of revenue from outside Alberta.