Stuart Olson Inc. reported consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported contract revenue of CAD 282.6 million compared to CAD 219.1 million a year ago. Contract income was CAD 34.7 million compared to CAD 20.1 million a year ago. Adjusted EBITDA was CAD 11.5 million compared to CAD 5.8 million a year ago. Net earnings were CAD 5.7 million or CAD 0.18 per diluted share compared net loss of CAD 1.7 million or CAD 0.06 per basic and diluted share a year ago. The CAD 7.4 million gain primarily reflects the improvement in adjusted EBITDA, as well as the recognition of restructuring costs in 2016. Adjusted free cash flow was CAD 10.5 million or CAD 0.38 per share compared CAD 0.8 million or CAD 0.03 per share a year ago. This CAD 9.6 million (CAD 0.35 per share) improvement was driven primarily by the improvement in financial results and lower cash capital expenditures.

For the year, the company reported contract revenue of CAD 1,017.3 million compared to CAD 913.5 million a year ago. Contract income was CAD 103.9 million compared to CAD 92.4 million a year ago. Adjusted EBITDA was CAD 36 million compared to CAD 32.1 million a year ago. The increase in adjusted EBITDA reflects higher revenue, partially offset by increased expenses associated with the Company's investment in organic growth initiatives, the impact of a share price increase in 2017 on share-based compensation expense and an increase in performance plan accruals resulting from stronger consolidated financial results. Net earnings were CAD 9.6 million or CAD 0.35 per basic and diluted share compared net loss of CAD 2.2 million or CAD 0.08 per basic and diluted share a year ago. This significant gain was primarily driven by the improvement in adjusted EBITDA, and also reflects the recognition of restructuring costs in 2016. Adjusted free cash flow was CAD 23.9 million or CAD 0.88 per share compared negative adjusted free cash flow of CAD 0.2 million or CAD 0.01 per share a year ago.

For the year 2018, the company expects 2018 consolidated contract revenue to be modestly higher, and adjusted EBITDA to be meaningfully higher, based on the outlook for each of its business groups outlined below. The company expects 2018 adjusted EBITDA margin to remain stable year-over-year. Revenue and adjusted EBITDA from the Industrial Group are expected to be meaningfully higher in 2018 than in 2017, supported by increased activity in the oil sands as project owners complete increased scopes of maintenance and turnaround work that had been deferred in recent years. The group's financial results are also expected to be supported by the completion of two large projects outside Alberta in the power and mining sectors. Industrial Group EBITDA margin is expected to remain stable year-over-year. With a greater proportion of projects nearing completion in 2018 compared to 2017, the Buildings Group anticipates modestly lower revenue year-over-year, paired with stable adjusted EBITDA and slightly higher adjusted EBITDA margin. The Buildings Group results as a whole will continue to be supported by predominantly public projects in multiple provinces, including the group's growing activity in Ontario. Commercial Systems Group revenue is expected to be meaningfully higher in 2018, while adjusted EBITDA is expected to be significantly higher as the group begins to see material benefits from the substantial number of project awards secured in 2017. The group's adjusted EBITDA margin is expected to remain stable year-over-year.