MISSISSAUGA, ON, Nov. 9, 2021 /CNW/ - "The Company has been
focused on advancing collaboration, both internally and externally,
and we are truly seeing the benefit of that reflected in the
increase in collaborative contract awards. These collaborative
projects have been primary drivers for our record Backlog, record
Pending Backlog and record revenue in the third quarter," said Mr.
Teri McKibbon, President and CEO of
Bird Construction. "Our employees have embraced the changes in our
company over the past several years and have done a tremendous job
managing through the pandemic while building a resilient business.
Bird's bid pipeline is robust, and we continue to see more cross
selling opportunities emerge as we continue our successful
integration with Stuart Olson. While it is early days with Dagmar
Construction, we are excited about the growth prospects this
acquisition opens up to us in the civil infrastructure market. Both
acquisitions are acting as catalysts for Bird to grow and
diversify, all while maintaining a balanced risk profile in our
work program."
FINANCIAL HIGHLIGHTS
Third Quarter 2021 compared to Third Quarter
2020
- Construction revenue of $621.2
million, representing an 80.0% increase year-over-year.
- Net income and earnings per share were $12.1 million and $0.23, respectively, compared to $8.8 million and $0.20 in Q3 2020.
- Adjusted Earnings(1) and Adjusted Earnings Per
Share(1) were $13.8
million and $0.26,
respectively, compared to $12.4
million and $0.29 in Q3
2020.
- Adjusted EBITDA(1) of $28.6
million, or 4.6% of revenues, reflects a 29.7% increase in
Adjusted EBITDA.
- Record Backlog of $2,828.0
million and record Pending Backlog of $1,787.7 million at September 30, 2021.
- Strong balance sheet with $154.9
million of working capital at September 30, 2021, compared to $130.3 million at December
31, 2020.
Year-to-date 2021 compared to Year-to-date
2020
- Construction revenue of $1,622.2
million, representing a 70.9% increase year-over-year.
- Net income and earnings per share were $32.9 million and $0.62, respectively, compared to $15.6 million and $0.36 in 2020.
- Adjusted Earnings and Adjusted Earnings Per Share were
$37.9 million and $0.71 respectively, compared to $20.1 million and $0.47 in 2020.
- Adjusted EBITDA of $79.7 million,
or 4.9% of revenues, reflects a 90.2% increase in Adjusted
EBITDA.
(1) Non-GAAP measure that does not
have any standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other entities. Refer
to the section entitled "Non-GAAP Measures" at the end of this news
release.
|
Financial
Results
|
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Construction
revenue
|
$
|
621,224
|
$
|
345,060
|
|
$
|
1,622,223
|
$
|
949,472
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
12,117
|
|
8,822
|
|
|
32,866
|
|
15,569
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
0.23
|
|
0.20
|
|
|
0.62
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per
Share (1)
|
|
0.26
|
|
0.29
|
|
|
0.71
|
|
0.47
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
28,585
|
|
22,036
|
|
|
79,737
|
|
41,926
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operations before changes in non-cash
working capital (2)
|
|
27,609
|
|
15,841
|
|
|
76,832
|
|
31,890
|
|
|
|
|
|
|
|
|
|
|
(1)
Non-GAAP measure that does not have any standardized meaning under
IFRS and therefore may not be comparable to similar measures
presented by other entities. Refer to the section entitled
"Non-GAAP Measures" at the end of this news release.
|
(2) Refer
to the sections entitled Quarterly and Year-to-date Cash Flow Data
in the MD&A for the period ended September 30, 2021.
|
OVERVIEW
- On September 1, 2021, the Company
completed its acquisition of Dagmar Construction Inc. ("Dagmar"),
an Ontario-based construction
company with extensive experience across key civil infrastructure
sub-sectors including road, bridge, rail, sewer and water, and
commercial-institutional sites. Dagmar's capabilities and service
offerings for both private and public owners across Ontario, integrated with Bird's existing civil
business, will act as a catalyst in this attractive end market. In
selected national markets where Bird has civil activity, Dagmar
will add specialized capabilities to broaden client service
offerings and increase diversification.
- The third quarter of 2021 also represents the first anniversary
of the Company's transformational acquisition of Stuart Olson Inc.
("Stuart Olson") which was completed on September 25, 2020. Since the acquisition, Bird
has worked to successfully combine two strong, experienced
workforces and integrate and harmonize its policies, processes and
people. The previously stated $25.0
million in annualized cost synergies will be achieved as
expected by the end of 2021 resulting from the integration of
Stuart Olson. The Company is also benefitting from revenue
synergies as cross-selling opportunities yield results.
- The Company set records for both its Backlog and Pending
Backlog at September 30, 2021. During
2021, the Company secured $1,767.7
million of new contract awards and change orders and
executed $1,622.2 million of
construction revenues. The Company's Backlog of $2,828.0 million at September 30, 2021 increased from Backlog of
$2,682.5 million at December 31, 2020. The Company's Pending Backlog
at September 30, 2021 was
$1,787.7 million compared to
$1,635.9 million at December 31, 2020. Growth in both Backlog and
Pending Backlog has resumed after remaining relatively flat due to
COVID-19 related timing delays in project tenders and awards from
clients.
- During the third quarter, Bird extended its Syndicated Credit
Facility (the "Credit Facility") by an additional year and expanded
the committed Credit Facility to $235.0
million, consisting of a $185.0
million committed, revolving credit facility, and a
$50.0 million committed,
non-revolving term debt facility. There is also an additional
uncommitted accordion for up to $50.0
million. This Credit Facility replaces the Company's
$165.0 million committed, revolving
credit facility and $35.0 million
committed, term debt facility. The Credit Facility matures on
September 1, 2024. In addition, Bird
changed its agreement with Export Development Canada ("EDC") to
provide for an increase in performance security guarantees by
$25.0 million to $100.0 million for letters of credit issued by
financial institutions on behalf of the Company.
- During the third quarter, the Company hosted its inaugural
investor day and released details of its new three-year strategic
plan which will guide the Company through 2024. Details from the
investor day can be found under the "Investors" section on the
Company's website. As discussed in the "2022-2024 Strategic Plan"
section of Bird's Q3 2021 MD&A, key facets of the new strategic
plan include a focus on the further development of Bird's team,
strong project execution and the geographic diversification of
service offerings.
- In the third quarter of 2021, the Company, through its joint
venture with ATCO Structures, reached final completion on the LNG
Canada Cedar Valley Lodge design-build project in Kitimat, British Columbia. The facility was
built to house workers involved in the construction of LNG Canada's
natural gas liquefaction and export facility and is one of the
largest accommodation facilities ever built in Canada.
- During the third quarter of 2021, the Company announced that it
was awarded the following projects and contracts:
-
- The Company has negotiated a construction services contract
with the international real estate firm Hines for a mixed-use
project in the heart of Toronto,
Ontario. The project is a 17-storey mixed-use building that
will be constructed by leveraging green building practices with
sustainable solutions.
- Under the Public Private Partnership ("PPP") model, the
consortium, Concert-Bird Partners, was awarded a Design, Build,
Finance, and Maintain ("DBFM") contract for five Alberta high schools with the Alberta government. The project has a total
combined contract value in excess of $300.0
million and is a part of Alberta's Recovery Plan to create jobs and
diversify the economy.
- The Board has declared an eligible dividend of $0.0325 per common share for each of October 2021, November
2021, December 2021,
January 2022 and February 2022.
- Subsequent to quarter end, the Company announced that it was
awarded the following projects:
-
- The Company has been awarded the first phase of a progressive
Design-Build contract with early collaborative contractor
involvement for the Ontario Power Generation ("OPG") Clarington
Corporate Campus Project. The project is divided into three phases
to reflect the design's progressive nature, and ensure the cost
estimate, schedule forecast, and project planning are sufficiently
advanced before construction. Construction is expected to begin in
2022, with completion in 2024.
- The Company will participate in three Integrated Project
Delivery ("IPD") contracts in Western
Canada with a combined value in excess of $150 million. The contracts include a substantial
food and beverage facility expansion project, the Okanagan Indian
Band water system upgrade and the North Okanagan Wastewater
Recovery Project. These projects will be recorded in pending
backlog until purchase orders are issued by the clients for the
full value.
- The Company entered into an Alliance Agreement with the
renewable energy company, Noventa Energy Partners, to jointly
pursue opportunities for wastewater energy transfer ("WET")
projects across Canada, with Bird
acting as the exclusive constructor. Currently developing
opportunities represent over $500
million. The Alliance relationship commences with the
successful financial close of the recently announced Toronto
Western Hospital WET project that is valued at approximately
$42.9 million.
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly
results on Wednesday, November 10,
2021 at 10:00 a.m. ET, to
discuss the Company's results. Analysts and investors may connect
to the webcast via URL
at http://services.choruscall.ca/links/bird20211110.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.
NON-GAAP MEASURES
Adjusted Earnings, Adjusted Earnings Per
Share, Adjusted EBITDA, and Adjusted EBITDA Margin have
no standardized meaning under IFRS and are considered non-GAAP
measures. Therefore, these measures may not be comparable with
similar measures presented by other companies.
Management uses Adjusted Earnings and Adjusted EBITDA to
assess the operating performance of its business. Management
believes that investors and analysts use these measures, as they
may provide predictive value to assess the ongoing operations of
the business and a more consistent comparison between financial
reporting periods.
Adjusted Earnings and Adjusted EBITDA are reconciled as
follows:
Adjusted Earnings
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
12,117
|
$
|
8,822
|
|
$
|
32,866
|
$
|
15,569
|
Add:
Acquisition and Integration costs
|
|
2,260
|
|
3,835
|
|
|
6,669
|
|
5,111
|
Add:
Restructuring costs (1)
|
|
-
|
|
-
|
|
|
-
|
|
-
|
Income tax effect of
the above costs
|
|
(556)
|
|
(293)
|
|
|
(1,627)
|
|
(627)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings
|
$
|
13,821
|
$
|
12,364
|
|
$
|
37,908
|
$
|
20,053
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share (2)
|
$
|
0.26
|
$
|
0.29
|
|
$
|
0.71
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
(1)
Restructuring costs as defined in accordance with IFRS.
|
(2)
Calculated as Adjusted Earnings divided by basic weighted average
shares.
|
Adjusted EBITDA
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
(in thousands of
Canadian dollars, except percentage amounts)
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
12,117
|
$
|
8,822
|
|
$
|
32,866
|
$
|
15,569
|
Add: Income tax
expense
|
|
|
4,150
|
|
4,102
|
|
|
11,148
|
|
6,781
|
Add: Depreciation and
amortization
|
|
|
8,965
|
|
4,588
|
|
|
24,823
|
|
11,743
|
Add: Finance and other
costs
|
|
|
1,720
|
|
1,132
|
|
|
5,660
|
|
5,775
|
Less:
Finance income
|
|
|
(304)
|
|
(242)
|
|
|
(896)
|
|
(1,333)
|
Add: (Gain)/loss on sale of
property and equipment
|
(455)
|
|
(201)
|
|
|
(968)
|
|
(1,720)
|
Add: Restructuring costs
(1)
|
|
|
132
|
|
-
|
|
|
435
|
|
-
|
Add: Restructuring and severance
costs (2)
|
|
|
-
|
|
-
|
|
|
-
|
|
-
|
Add: Acquisition and integration
costs
|
|
|
2,260
|
|
3,835
|
|
|
6,669
|
|
5,111
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
28,585
|
$
|
22,036
|
|
$
|
79,737
|
$
|
41,926
|
Adjusted EBITDA
Margin (3)
|
|
|
4.6%
|
|
6.4%
|
|
|
4.9%
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
(1)
Restructuring costs as defined in accordance with IFRS.
|
(2)
Restructuring and severance costs that did not meet the criteria to
be classified under restructuring costs as defined in accordance
with IFRS.
|
(3)
Calculated as Adjusted EBITDA divided by revenue.
|
Additional information on these non-GAAP measures is provided
in the section "Terminology & Non-GAAP Measures" in Bird's most
recently filed Management's Discussion & Analysis for the
period ended September 30, 2021,
prepared as of November 9, 2021. This
document is available on Bird's SEDAR profile, at www.sedar.com and
on the Company's website at www.bird.ca.
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", "intends", "continue", "may", "will", "should"
and similar expressions are intended to identify forward- looking
statements. More particularly and without limitation, this news
release contains forward-looking statements concerning: the
anticipated benefits of the acquisition to Bird, its shareholders,
and all other stakeholders, including anticipated synergies; and
the plans and strategic priorities of the combined company.
In respect of the forward-looking statements concerning the
anticipated benefits of the Stuart Olson and Dagmar acquisitions
(the "Transactions"), Bird has provided such in reliance on certain
assumptions that it believes are reasonable at this time, including
in respect of the combined company's services and anticipated
synergies, capital efficiencies and cost- savings.
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; 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;
global pandemics; 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; ability to hire and retain qualified and capable
personnel; 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.
The forward-looking statements in this news release should
not be interpreted as providing a full assessment or reflection of
the unprecedented impacts of the recent COVID-19 pandemic
("COVID-19") and the resulting indirect global and regional
economic impacts.
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, including any risk factors related to COVID-19,
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, 2020 and most
recently filed Management's Discussion and Analysis, 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.