MISSISSAUGA, ON, May 10, 2022
/CNW/ - "After reporting strong full-year 2021 results, the
dedicated Bird team delivered a solid first quarter in 2022,
growing our year-over-year revenue and Backlog to new records
despite early headwinds from pandemic-related personnel and supply
chain challenges, as well as weather-related delays," said Mr.
Teri McKibbon, President and CEO of
Bird Construction. "Our efforts to build a resilient organization
are paying off and the team's focus on collaboration, cross-selling
and diversification continue to drive new awards and create
opportunities for growth. The Company's strong balance sheet,
healthy combined total backlog, and growing recurring revenue
streams position Bird to deliver strong financial performance and
long-term value to our stakeholders by making investments in our
business and taking steps to improve our overall margin
profile."
FINANCIAL HIGHLIGHTS
First Quarter 2022 compared to First Quarter
2021
- Construction revenue of $475.5
million compared to $444.6
million, representing a 6.9% increase year-over-year.
- Net income and earnings per share were $6.4 million and $0.12, respectively, compared to $7.1 million and $0.13 in Q1 2021.
- Adjusted Earnings1 and Adjusted Earnings Per
Share1 were $6.5 million
and $0.12, respectively, compared to
$9.1 million and $0.17 in Q1 2021.
- No recoveries were recorded under the Canada Emergency Wage Subsidy ("CEWS") program
in Q1 2022, compared to $11.2 million
of recoveries recorded in Q1 2021.
- Adjusted EBITDA1 of $17.8
million, or 3.8% of revenues, compared to $21.0 million, or 4.7% of revenues in Q1
2021.
Financial
Results
|
|
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(in thousands of
Canadian dollars, except per share amounts)
|
|
|
|
|
|
|
Three months ended
March 31,
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|
|
2022
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|
2021
|
|
|
|
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Construction
revenue
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$
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475,521
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$
|
444,637
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|
|
|
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Net income
|
|
6,361
|
|
7,119
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Basic and diluted
earnings per share
|
|
0.12
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0.13
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Adjusted Earnings Per
Share
|
|
0.12
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|
0.17
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|
|
|
|
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Adjusted
EBITDA1
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17,835
|
|
21,040
|
|
|
|
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Cash flows from
operations before changes in non-cash working capital
|
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19,268
|
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20,792
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_________________________
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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.
|
OVERVIEW
- The Company recorded year-over-year revenue growth of
$30.9 million for the quarter,
including contributions from Dagmar Construction Inc. which was
acquired in September 2021. The
revenue growth was achieved against a backdrop of pandemic-driven
increased employee absenteeism and intermittent supply chain
challenges, particularly in the first two months of the
quarter.
- The Company exited the first quarter with a strong liquidity
position, including over $73.2
million in accessible cash and $140.2
million available under its Syndicated Credit Facility.
- The Company once again grew its combined backlog to record
levels in the first quarter of 2022, with Backlog increasing
$31.2 million to $3,033.7 million at March
31, 2022, and Pending Backlog increasing $92.1 million to $1,716.8
million at the end of the quarter. The Company secured
$506.7 million of new contract awards
and change orders and executed $475.5
million of construction revenues in the quarter.
- During the first quarter of 2022, the Company announced that it
was awarded the following projects and contracts:
-
- The Company, in a joint venture, was selected by the City of
Barrie as General Contractor for the City's Wastewater Treatment
Facility upgrade program, and will assume primary responsibility
for construction services for the duration of the project which
will be delivered through an IPD model. The construction cost
estimate for the project is valued at approximately $125 million.
- The Board has declared an eligible dividend of $0.0325 per common share for each of May, June,
and July 2022.
- Subsequent to quarter end, the Company announced that it was
awarded the following projects and contracts:
-
- The Company was awarded two five-year master service agreement
("MSA") contracts for industrial maintenance services, and two
industrial facilities turnaround contracts. The total value of the
awarded contracts is an estimated $90
million.
- The Company was awarded a multi-year mining services contract
valued at approximately $70 million
over the term of the contract.
- The Company was awarded a contract valued at approximately
$62 million for railway track, signal
and station works by Metrolinx for the Kitchener GO Corridor
Expansion project.
- The Company was selected as a proponent for the Port Hope Area
Initiative ("PHAI") Master Construction Contract ("MCC") by
Canadian Nuclear Laboratories. Under the MCC, Bird has the
opportunity to bid on work packages covering close to $1 billion of remediation work over the life of
the initiative.
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly
results on Wednesday, May 11, 2022 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/bird20220511.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,
2022, prepared as of May 10,
2022. 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, 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
March 31,
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
2022
|
|
2021
|
|
|
|
|
|
Net income
|
$
|
6,361
|
$
|
7,119
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Add:
Acquisition and integration costs
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246
|
|
2,655
|
Add: IFRS
restructuring costs (1)
|
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-
|
|
-
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Income tax effect of
the above costs
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(61)
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(637)
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|
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Adjusted
Earnings
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$
|
6,546
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$
|
9,137
|
|
|
|
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Adjusted Earnings
Per Share (2)
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$
|
0.12
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$
|
0.17
|
|
|
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|
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Notes
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(1)
Restructuring costs as defined in
accordance with IFRS.
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(2)
Calculated as Adjusted Earnings divided
by basic weighted average shares outstanding.
|
|
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|
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Adjusted EBITDA
|
|
|
|
Three months ended
March 31,
|
(in thousands of
Canadian dollars, except percentage amounts)
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
Net income
|
|
$
|
6,361
|
$
|
7,119
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Add: Income tax
expense
|
|
|
1,981
|
|
2,245
|
Add: Depreciation and
amortization
|
|
|
8,420
|
|
7,960
|
Add: Finance and other
costs
|
|
|
1,773
|
|
1,739
|
Less:
Finance income
|
|
|
(266)
|
|
(302)
|
Add:
(Gain)/loss on sale of property and equipment
|
(680)
|
|
(403)
|
Add:
IFRS restructuring costs (1)
|
|
|
-
|
|
-
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Add:
Other restructuring and severance costs (2)
|
|
|
-
|
|
27
|
Add:
Acquisition and integration costs
|
|
|
246
|
|
2,655
|
|
|
|
|
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Adjusted
EBITDA
|
|
$
|
17,835
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$
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21,040
|
Adjusted EBITDA
Margin (3)
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3.8%
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4.7%
|
|
|
|
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Notes:
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(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.
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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; anticipated
synergies; the plans and strategic priorities of the
Company; and with respect to Bird's share of the
project value for certain joint venture projects.
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.
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 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, 2021, 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.