MISSISSAUGA, ON, March 7, 2023 /CNW/ - "With a
strong finish to the year, Bird reported record revenue and gross
profit for 2022, due in no small part to the diligent focus of our
One Bird team who embraced the
Company's strategic focus on collaboration, cross-selling and
diversification of both Bird's capabilities and geographical reach.
The Company carries a record combined Backlog and Pending Backlog
of risk-balanced contracts and awards into 2023, bolstering our
confidence in continued revenue and earnings growth for the
upcoming year," stated Teri
McKibbon, President and CEO of Bird Construction. "In
addition, the strength of the Company's balance sheet and access to
financing continues to support our disciplined approach to invest
in Bird's future growth, both organically and through opportunistic
tuck-in acquisitions."
FINANCIAL HIGHLIGHTS
Bird finished the 2022 fiscal year on a high note, delivering a
strong fourth quarter of revenue growth, profitability, and cash
flow generation. The Company's fourth quarter and full-year
performance reflect the Company's strategy to reposition itself
over the past several years, resulting in a diversified and
risk-balanced business model with larger scopes of self-perform
work, and greater depth of cross-selling opportunities, and the
vast majority of revenues generated from lower risk contract types.
Bird's focus on a more collaborative business model has also
allowed Bird to better manage inflationary impacts on costs of
construction which, along with increased self-perform activity,
strategic organic growth, acquisitions, and diligent cost
management, has resulted in growing margins which remain a
strategic priority to further improve over the coming years.
The Company's results continue to benefit from cross-selling
opportunities across our diversified service offerings, and robust,
accretive performance from recent acquisitions. The Company
maintained a strong financial position in 2022, ending the year
with significant financial flexibility and liquidity to support the
Company's disciplined capital allocation approach, including the
potential for future accretive tuck-in acquisitions like Dagmar and
Trinity Communication Services Ltd. ("Trinity") which was acquired
subsequent to year-end.
Full-Year 2022 compared to Full-Year 2021
- Construction revenue of $2,377.5
million was recorded in 2022, compared to $2,220.0 million in 2021, representing a 7.1%
year-over-year increase.
- Net income and earnings per share for the year were
$49.9 million and $0.93, respectively, compared to $42.8 million and $0.80 in 2021.
- Adjusted Earnings1 and Adjusted Earnings Per Share
were $46.0 million and $0.86 in 2022, respectively, compared to
$51.0 million and $0.96 in 2021.
- 2022 adjusted EBITDA1 of $101.2 million, or 4.3% of revenues, compared to
$108.1 million, or 4.9% of revenues
in 2021.
- No recoveries were recorded under the CEWS program in 2022,
compared to $21.9 million of
recoveries recorded in 2021.
__________
|
1
|
This News Release
contains terminology and financial measures that do not have
standard meanings under IFRS and may not be comparable with similar
measures presented by other companies. Further information
regarding these measures can be found in the "Terminology and
Non-GAAP & Other Financial Measures" section of this News
Release.
|
Fourth Quarter 2022 compared to Fourth
Quarter 2021
- Construction revenue of $657.2
million compared to $597.8
million, representing a 9.9% increase year-over-year.
- Net income and earnings per share were $14.9 million and $0.28, respectively, compared to $9.9 million and $0.18 in Q4 2021.
- Adjusted Earnings2 and Adjusted Earnings Per
Share2 were $15.5 million
and $0.29, respectively, compared to
$13.0 million and $0.24 in Q4 2021.
- Adjusted EBITDA2 of $30.6
million, or 4.7% of revenues, compared to $28.4 million, or 4.8% of revenues in Q4
2021.
_____________
|
2
|
This News Release
contains terminology and financial measures that do not have
standard meanings under IFRS and may not be comparable with similar
measures presented by other companies. Further information
regarding these measures can be found in the "Terminology and
Non-GAAP & Other Financial Measures" section of this News
Release.
|
Financial
Results
|
|
|
|
|
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Year ended
December 31,
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
Construction
revenue
|
$
657,184
|
$
597,803
|
|
$
2,377,549
|
$
2,220,026
|
|
|
|
|
|
|
Net income
|
14,932
|
9,917
|
|
49,863
|
42,783
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
0.28
|
0.18
|
|
0.93
|
0.80
|
|
|
|
|
|
|
Adjusted Earnings Per
Share
|
0.29
|
0.24
|
|
0.86
|
0.96
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
30,639
|
28,399
|
|
101,185
|
108,136
|
|
|
|
|
|
|
Cash flows from
operations before changes in non-cash working capital
|
$
33,465
|
$
25,791
|
|
$
114,370
|
$
102,623
|
|
|
|
|
|
|
(1) Adjusted
EBITDA is a non-GAAP financial measure. See "Terminology and
Non-GAAP & Other Financial Measures."
|
OVERVIEW
- Bird reported record revenues for both the fourth quarter, and
for the full year ended December 31,
2022. The combined strength of the Company and its recent
acquisitions continue to yield opportunities for cross selling and
higher self-perform activity across the Company's work program,
driving revenue growth and stronger margins.
- The Company generated cash flow of $105.8 million from operating activities in the
fourth quarter, finishing the year with $174.6 million of cash and cash equivalents. The
strong ending cash position was achieved while the Company
continued to fund investments in non-cash working capital of almost
$60 million throughout the year to
support the Company's growing work program, and while returning to
more normalized levels of capital expenditures during the
year.
- Bird continued to set new records for its combined Backlog and
Pending Backlog of future work at December
31, 2022, totalling $2.6
billion and $2.5 billion,
respectively. The Company added $353.1
million in securements to Backlog in the quarter, while
adding over $350 million of new
awards to Pending Backlog. Subsequent to year-end, the Company
announced several significant additional new awards and contracts,
some of which represent the conversion of Pending Backlog into
Backlog, and others further adding to Bird's combined backlog.
- The Company continued to expand its MSA and recurring revenue
base, with several new multi-year awards driving the amount of this
work in Pending Backlog to over $900
million, representing recurring work to be performed over
the next five years.
- In December, the Company successfully amended its Syndicated
Credit Facility, extending the maturity of the entire facility by
over a year to December 15, 2025, and
increasing amounts available under the committed revolving facility
by $35.0 million to $220.0 million. Within the amended revolving
facility, the Company also increased its availability for letters
of credit by $15.0 million to
$115.0 million.
- During the fourth quarter of 2022, the Company announced that
it was awarded the following projects and contracts:
-
- The Company entered into strategic delivery partnership
agreements with Canadian Nuclear Laboratories (CNL) to support the
delivery of CNL's long-term corporate strategy. This includes
existing work under CNL's $1.2
billion 10-year capital program, construction of at least
six major facilities representing over $2
billion, and a newly commenced multi-billion-dollar work
program which includes infrastructure upgrades and ongoing
environmental remediation and restoration activities as part of the
Port Hope Area Initiative, as well as other longer-term
opportunities.
- A limited notice to proceed with early work (pre-mobilization)
for a strategically important multi-year task order under the
previously announced Port Hope Area Initiative Master Construction
Contract by Canadian Nuclear Laboratories.
- Subsequent to the year end, on January
31, 2023 Bird announced the acquisition of Trinity, an
Ontario-based diversified
telecommunication and utility infrastructure contractor.
Specializing in underground, aerial, commercial inside plant, and
multi-dwelling unit installations, Trinity's self-perform
capabilities enable further cross-selling opportunities with Bird's
sizeable national client base, and exemplify the Company's tuck-in
M&A strategy to further diversify the Company's operations and
expand its self-perform capabilities.
- Subsequent to the year end, the Company announced that it was
awarded the following projects and contracts:
-
- Bird was awarded a progressive design-build contract for a
processing facility in Ontario,
with a total project value over $200
million. The project delivery is divided into phases, with
the owner, consultants and contractors working collaboratively in
initial phases to ensure the cost estimate, schedule forecast, and
project planning are sufficiently advanced before commencing the
construction phase.
- The Board has declared eligible dividends of $0.0358 per common share for each of March 2023 and April
2023, representing a 10% increase to the monthly dividends
declared in 2022 and for January and February of 2023.
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly
results on Wednesday, March 8, 2023
at 10:00 a.m. ET, to discuss the
Company's results. Analysts and investors may connect to the
webcast at https://services.choruscall.ca/links/bird2022Q4.html.
They may also dial 1-855-328-1925 for audio only or to enter
the question queue; attendees are asked to be on the line 10
minutes prior to the start of the call. The presentation can also
be found on our website at https://www.bird.ca/investors.
The Company's financial statements and Management's Discussion
& Analysis ("MD&A") will be filed and available on the
System for Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com and on the Company's website at www.bird.ca.
TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL
MEASURES
Throughout this News Release, certain terminology and
financial measures are used that do not have standard meanings
under IFRS and are considered specified financial measures. These
include non-GAAP financial measures, non-GAAP financial ratios, and
supplementary financial measures. These measures may not be
comparable with similar measures presented by other companies.
Further information on these financial measures can be found in the
"Terminology and Non-GAAP & Other Financial Measures" section
in Bird's most recently filed Management's Discussion &
Analysis for the period ended December 31, 2022, prepared as
of March 7, 2023. This document is available on Bird's SEDAR
profile, at www.sedar.com and on the Company's website at
www.bird.ca.
"Backlog" is the total value of all contracts awarded to the
Company, less the total value of work completed on these contracts
as of the date of the most recently completed quarter. The
Company's Backlog equates to the Company's remaining performance
obligations as at December 31, 2022 and December 31,
2021.
"Adjusted Earnings" and "Adjusted EBITDA" are non-GAAP
financial measures. "Adjusted Earnings Per Share" and "Adjusted
EBITDA margin" are non-GAAP financial ratios. "Pending Backlog" is
a supplementary financial measure.
Adjusted Earnings and Adjusted EBITDA are reconciled as
follows:
Adjusted Earnings:
|
Three months
ended
December
31,
|
|
Year ended
December 31,
|
(in thousands of
Canadian dollars, except per share amounts)
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
Net income
|
$
14,932
|
$
9,917
|
|
$
49,863
|
$
42,783
|
Add:
Acquisition and integration costs
|
728
|
4,111
|
|
2,487
|
10,780
|
Add: IFRS
restructuring costs (1)
|
—
|
—
|
|
—
|
—
|
Deduct: Gain on
settlement of trade receivable
|
—
|
—
|
|
(7,596)
|
—
|
Income tax effect of
the above costs
|
(175)
|
(982)
|
|
1,270
|
(2,609)
|
|
|
|
|
|
|
Adjusted
Earnings
|
$
15,485
|
$
13,046
|
|
$
46,024
|
$
50,954
|
|
|
|
|
|
|
Adjusted Earnings
Per Share (2)
|
$
0.29
|
$
0.24
|
|
$
0.86
|
$
0.96
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
(1)
Restructuring costs as defined in accordance with IFRS.
|
(2)
Calculated as Adjusted Earnings divided by basic weighted average
shares outstanding.
|
Adjusted EBITDA:
|
Three months
ended
December
31,
|
|
Year ended
December 31,
|
(in thousands of
Canadian dollars, except percentage amounts)
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
Net income
|
$
14,932
|
$
9,917
|
|
$
49,863
|
$ 42,783
|
Add: Income
tax expense
|
5,459
|
3,699
|
|
17,322
|
14,847
|
Add:
Depreciation and amortization
|
8,798
|
9,714
|
|
36,439
|
34,537
|
Add:
Finance and other costs
|
2,933
|
1,890
|
|
9,818
|
7,550
|
Less:
Finance and other income
|
(904)
|
(426)
|
|
(10,341)
|
(1,322)
|
Add:
(Gain)/loss on sale of property and equipment
|
(1,307)
|
(608)
|
|
(4,403)
|
(1,576)
|
Add: IFRS
restructuring costs (1)
|
—
|
—
|
|
—
|
—
|
Add: Other
restructuring and severance costs (2)
|
—
|
102
|
|
—
|
537
|
Add:
Acquisition and integration costs
|
728
|
4,111
|
|
2,487
|
10,780
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
30,639
|
$ 28,399
|
|
$
101,185
|
$
108,136
|
|
|
|
|
|
|
Adjusted EBITDA
Margin (3)
|
4.7 %
|
4.8 %
|
|
4.3 %
|
4.9 %
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
(1)
Restructuring costs as defined in accordance with IFRS.
|
(2)
Restructuring and severance costs that did not meet the criteria to
be classified as restructuring costs in accordance with
IFRS.
|
(3)
Calculated as Adjusted EBITDA divided by revenue.
|
FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements and
information ("forward-looking statements") within the meaning of
applicable Canadian securities laws. The forward-looking statements
contained in this news release are based on the expectations,
estimates and projections of management of Bird as of the date of
this news release unless otherwise stated. The use of any of the
words "believe", "expect", "anticipate", "contemplate", "target",
"plan", "intend", "continue", "may", "will", "should" and similar
expressions are intended to identify forward-looking statements and
information. More particularly and without limitation, this news
release contains forward-looking statements concerning: anticipated
financial performance; the outlook for 2023; expectations with
respect to anticipated revenue growth, growth in earnings per share
and adjusted EBITDA in 2023 and margin improvements; the ability to
capitalize on new and emerging opportunities; and the ability to
realize on the Company's bid pipeline.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Investors are cautioned that forward-looking
statements are based on the opinions, assumptions and estimates of
management considered reasonable at the date the statements are
made, and actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to the risks associated with the
industries in which the Company operates in general such as:
operational risks, industry and inherent project delivery risks;
ability to hire and retain qualified and capable personnel; global
pandemics; delays or changes in plans with respect to growth
projects or capital expenditures; costs and expenses; health,
safety and environmental risks; commodity price, interest rate and
exchange rate fluctuations; compliance with environmental laws
risks; competition, ethics and reputational risks; ability to
access sufficient capital from internal and external sources;
repayment of credit facility; collection of recognized revenue;
performance bonds and contract security; potential for non-payment
and credit risk and ongoing financing availability; regional
concentration; regulations; dependence on the public sector; client
concentration; labour matters; loss of key management;
subcontractor performance; unanticipated shutdowns, work stoppages,
strikes and lockouts; maintaining safe worksites; cyber security
risks; litigation risk; corporate guarantees and letters of credit;
volatility of market trading; failure of clients to obtain required
permits and licenses; payment of dividends; economy and
cyclicality; Public Private Partnerships project risk; design
risks; completion and performance guarantees/design-build risks;
ability to secure work; estimating costs and schedules/assessing
contract risks; quality assurance and quality control; accuracy of
cost to complete estimates; insurance risk; adjustments and
cancellations of backlog; joint venture risk; internal and
disclosure controls; Public Private Partnerships equity
investments; failure to realize the anticipated benefits of the
Transactions; and changes in legislation, including but not limited
to tax laws and environmental regulations.
Readers are cautioned that the foregoing list of factors is
not exhaustive. Additional information on other factors that could
affect the operations or financial results of the parties, and the
combined company are included in reports on file with applicable
securities regulatory authorities, including but not limited to;
Bird's Annual Information Form and Management's Discussion and
Analysis for the year ended December 31,
2022, each of which may be accessed on Bird's SEDAR profile,
at www.sedar.com and on the Company's website at
www.bird.ca.
The forward-looking statements contained in this news release
are made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as, and to the extent required by applicable
securities laws.
The Toronto Stock Exchange does not accept responsibility for
the adequacy or accuracy of this release.
For further information, please contact:
T.L. McKibbon, President & CEO or
W.R.
Gingrich, CFO
Bird Construction Inc.
5700
Explorer Drive, Suite 400
Mississauga, ON L4W 0C6
Phone: (905)
602-4122
ABOUT BIRD CONSTRUCTION
Bird (TSX: BDT) is a leading Canadian construction company
operating from coast-to-coast and servicing all of Canada's major markets. Bird provides a
comprehensive range of construction services from new construction
for industrial, commercial, and institutional and civil
infrastructure markets; to industrial maintenance, repair and
operations services, heavy civil construction, and mine support
services; as well as vertical infrastructure including, electrical,
mechanical, and specialty trades. For over 100 years, Bird has been
a people-focused company with an unwavering commitment to safety
and a high level of service that provides long-term value for all
stakeholders. www.bird.ca
SOURCE Bird Construction Inc.