MISSISSAUGA, ON, May 9, 2023
/CNW/ - "Bird's first quarter results reflect a return to normal
seasonal patterns and were consistent with Management's
expectations, setting the stage for significant growth in earnings
per share and adjusted EBITDA for full year 2023. Combined backlog
reached a new record with favourable embedded margins, and the
Company added new specialized self-perform capabilities through the
acquisition of Trinity Communications Ltd. in February, expanding
Bird's capabilities in the utilities market," stated Teri McKibbon, President and CEO of Bird
Construction. "Our One Bird team remains committed to delivering
innovative and sustainable solutions to our clients across the
country and multiple industries while maintaining the highest
standards for safety and client satisfaction."
FINANCIAL HIGHLIGHTS
Continuing the Company's momentum from the end of 2022, Bird
achieved a significant increase in construction revenue for the
first quarter of 2023, with healthy seasonal margins reflecting
strong execution across work programs. At the same time, Bird grew
its Backlog and Pending Backlog to record combined levels,
including recurring revenue awards now exceeding $1.1 billion. The Company's growth continues to
be driven by a diversified and risk-balanced business model with
expanding cross-selling opportunities across its diversified
service offerings, and robust, accretive performance from recent
acquisitions. Bird generates the vast majority of revenues from
lower risk contract types, and has limited exposure to lump sum
turnkey projects and minimal work in residential construction
markets.
During the quarter, Bird acquired Trinity Communications Ltd.
("Trinity"), an Ontario-based
diversified telecommunication and utility infrastructure contractor
with specialized self-perform capabilities that can be leveraged
and expanded across the Company's sizeable national client base.
The acquisition exemplifies Bird's approach to accretive tuck-in
acquisitions, and the benefits of the Company's strong financial
position and disciplined capital allocation strategy.
First Quarter 2023 compared to First Quarter
2022
- Construction revenue of $536.5
million compared to $475.5
million, representing a 12.8% increase year-over-year.
- Net income and earnings per share were $5.1 million and $0.10, respectively, compared to $6.4 million and $0.12 in Q1 2022.
- Adjusted Earnings1 and Adjusted Earnings Per
Share1 were $5.3 million
and $0.10, respectively, compared to
$6.5 million and $0.12 in Q1 2022.
- Adjusted EBITDA1 of $16.1
million, or 3.0% of revenues, compared to $17.8 million, or 3.8% of revenues in Q1
2022.
_______________________________
|
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.
|
Financial
Results
|
|
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
|
Three months
ended March
31,
|
|
2023
|
2022
|
|
|
|
Construction
revenue
|
$
536,459
|
$
475,521
|
|
|
|
Net income
|
5,149
|
6,361
|
|
|
|
Basic and diluted
earnings per share
|
0.10
|
0.12
|
|
|
|
Adjusted Earnings Per
Share
|
0.10
|
0.12
|
|
|
|
Adjusted
EBITDA1
|
16,082
|
17,835
|
|
|
|
Cash flows from
operations before changes in non-cash working capital
|
$
17,628
|
$
19,268
|
|
|
|
(1) Adjusted
EBITDA is a non-GAAP financial measure. See "Terminology and
Non-GAAP & Other Financial Measures."
|
HIGHLIGHTS
- Bird reported record first quarter revenues of $536.5 million in 2023, representing over 12%
organic growth in addition to contributions from Trinity, acquired
on February 1, 2023.
- Bird continued to set new records for its combined Backlog and
Pending Backlog at March 31, 2023,
consisting of $2.7 billion Backlog
and $3.0 billion Pending Backlog. The
Company added $594.5 million in
securements to Backlog during the quarter, exceeding executed work
by over 10%, while adding over $859.6
million of new awards to Pending Backlog.
- The Company further expanded its Master Service Agreement
("MSA") and recurring revenue base, with several new multi-year
awards driving the amount of recurring work included in Pending
Backlog to over $1.1 billion, with
the work to be performed over the next seven years.
- Bird exits the first quarter of 2023 with a strong liquidity
position, including $110.7 million of
cash and cash equivalents, and an additional $172.0 million available under the Company's
Syndicated Credit Facility, to support ongoing investments in
growth-related working capital, project-driven capital
expenditures, and potential tuck-in acquisitions to further
diversify service offerings and self-perform capabilities.
- The Company welcomed Trinity to the One Bird team on
February 1, 2023. The acquisition of
this specialized telecommunication and utility infrastructure
contractor further expands Bird's self-perform capabilities and
provides new opportunities for cross-selling across Bird's sizeable
national client base.
- During the first quarter of 2023, 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 exceeding $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 majority of the project value remains in
Pending Backlog at March 31, 2023,
but is expected to convert to Backlog before year-end.
- Bird, as part of 2Nations Bird joint venture was awarded two
contracts by BHP for development works and site services on the
Jansen Stage 1 Potash Project in Saskatchewan. 2Nations Bird is a partnership
between Bird, Beardy's and Okemasis' Cree Nation's Willow Cree
Developments General Partner Inc. and Fishing Lake First Nation's
Development Corporation, FLFN Ventures. The total value of the
contracts is over $172 million.
- Subsequent to the quarter end, the Company announced that it
was awarded the following projects and contracts:
-
- Bird was awarded $300 million in
additional recurring MSA work, including a new seven-year MSA for
multi-discipline bundled services across a client's maintenance,
turnarounds and sustaining capital programs, and contract
extensions with additional services and scope on existing MSAs
ranging from three to five years. Similar to other MSA awards, the
value will reside in Pending Backlog and be converted to Backlog
over time as purchase orders are received against the MSAs.
- Bird was awarded a construction management services contract
valued at approximately $50 million
for BC Housing's Permanent Supportive Housing Initiative, located
in Vancouver, BC. The project,
supported by Bird's pre-construction design services and with a
final design delivered in conjunction with Bird's Stack Modular
business, will be the first modular project of this height in
Canada, delivering a volumetric
steel modular tower with 14 floors of quality units on a rapid,
repeatable scale. The project will follow the Passive House green
building design standard, and the modular approach, with off-site
design and construction of the units, substantially reduces
construction time and reduces the impact on the local community
during construction.
- The Board has declared eligible dividends of $0.0358 per common share for each of May, June
and July 2023.
- Bird released its third annual Sustainability Overview on
May 9, 2023. The publication provides
an overview of Bird's ESG initiatives underway across the country,
and illustrates core initiatives that are reflective of the
Company's broader ESG Program. The full report can be accessed on
Bird's website at: www.bird.ca/sustainability.
CONFERENCE CALL AND
WEBCAST
Bird will host an investor webcast to discuss the quarterly
results on Wednesday, May 10, 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/bird2023Q1.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 March 31, 2023, prepared as of
May 9, 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 March 31, 2023 and December 31,
2022.
"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 March
31,
|
(in thousands of
Canadian dollars, except per share amounts)
|
2023
|
2022
|
|
|
|
Net income
|
$
5,149
|
$
6,361
|
Add:
Acquisition and integration costs
|
162
|
246
|
Income tax effect of
the above costs
|
(39)
|
(61)
|
|
|
|
Adjusted
Earnings
|
$
5,272
|
$
6,546
|
|
|
|
Adjusted Earnings
Per Share (1)
|
$
0.10
|
$
0.12
|
|
|
|
Notes:
|
|
|
(1)
Calculated as Adjusted Earnings divided by basic weighted average
shares outstanding.
|
Adjusted EBITDA:
|
Three months
ended March
31,
|
(in thousands of
Canadian dollars, except percentage amounts)
|
2023
|
2022
|
|
|
|
Net income
|
$
5,149
|
$
6,361
|
Add: Income
tax expense
|
1,584
|
1,981
|
Add:
Depreciation and amortization
|
7,835
|
8,420
|
Add:
Finance and other costs
|
2,792
|
1,773
|
Less:
Finance and other income
|
(1,171)
|
(266)
|
Add:
(Gain)/loss on sale of property and equipment
|
(269)
|
(680)
|
Add:
Acquisition and integration costs
|
162
|
246
|
|
|
|
Adjusted
EBITDA
|
$
16,082
|
$ 17,835
|
|
|
|
Adjusted EBITDA
Margin (1)
|
3.0 %
|
3.8 %
|
|
|
|
Notes:
|
|
|
(1)
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 future performance of acquired entities;
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; the ability to realize on the Company's bid
pipeline; and with respect to Bird's ability to convert Pending
Backlog to Backlog and the timing of conversions.
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: the
ability to hire and retain qualified and capable personnel,
maintaining safe work sites, economy and cyclicality, ability to
secure work, global pandemics, performance of subcontractors,
accuracy of cost to complete estimates, estimating costs and
schedules/assessing contract risks, adjustments and cancellations
of Backlog, work stoppages, strikes and lockouts, acquisition and
integration risk, potential for non-payment, litigation/potential
litigation, design risks, information systems and cyber-security
risk, competitive factors, completion and performance guarantees,
access to capital, quality assurance and quality control, access to
surety support and other contract security, insurance risk, climate
change risk, joint venture risk, ethics and reputational risk,
compliance with environmental laws, internal and disclosure
controls, and payment of dividends.
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.