MISSISSAUGA, ON, Nov. 8, 2022
/CNW/ - "Bird continues to deliver strong financial results,
underpinned by the strategic changes made to the business over the
past several years. Our steadily growing revenue, improving
margins, and expanded recurring revenue highlight the Company's
resilient business model, with minimal exposure to lump sum
turn-key contracts and a diversified national service offering,"
stated Teri McKibbon, President and
CEO of Bird Construction. "The visibility into future financial
performance provided by our record combined Backlog and Pending
Backlog, coupled with our strong balance sheet, set the stage for
continued organic growth and opportunistic tuck-in
acquisitions."
FINANCIAL HIGHLIGHTS
The third quarter of 2022 was a strong quarter for Bird, with
our "One Bird" team delivering solid revenue growth of 7.6%,
representing 6.0% growth year-to-date, supported by cross-selling
opportunities across the Company's diversified service offerings,
and robust, accretive performance from recent acquisitions.
Continued strong execution across our work programs, with diligent
focus on cost management, delivered increased gross profit and
Adjusted EBITDA margins for the quarter, despite the challenges of
ongoing supply chain and regional permitting delays.
Bird's third quarter earnings reflect the resiliency of the
Company's diversified and risk-balanced business model where over
90% of revenues are generated from lower risk contract types, and
an increasing number of projects are being executed under
collaborative contracting methods. This business model allows us to
better manage inflationary impacts on costs of construction,
resulting in growing margins which remain a strategic priority to
further improve over the coming years.
Third Quarter 2022 compared to Third
Quarter 2021
- Construction revenue of $668.2
million compared to $621.2
million, representing a 7.6% increase year-over-year.
- Net income and earnings per share were $14.5 million and $0.27, respectively, compared to $12.1 million and $0.23 in Q3 2021.
- Adjusted Earnings1 and Adjusted Earnings Per
Share1 were $15.5 million
and $0.29, respectively, compared to
$13.8 million and $0.26 in Q3 2021.
- Adjusted EBITDA1 of $31.2
million, or 4.7% of revenues, compared to $28.6 million, or 4.6% of revenues in Q3
2021.
Year-to-date 2022 compared to Year-to-date
2021
- Construction revenue of $1,720.4
million compared to $1,622.2
million, representing a 6.0% increase year-over-year.
- Net income and earnings per share were $34.9 million and $0.65, respectively, compared to $32.9 million and $0.62 in 2021.
- Year-to-date Adjusted Earnings1 and Adjusted
Earnings Per Share were $30.5 million
and $0.57, respectively, compared to
$37.9 million and $0.71 in 2021.
- No recoveries were recorded under the CEWS program in 2022,
compared to $21.9 million of
recoveries recorded year-to-date in 2021.
- Year-to-date Adjusted EBITDA1 of $70.5 million, or 4.1% of revenues, compared to
$79.7 million, or 4.9% of revenues 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.
|
Financial
Results
|
|
|
|
|
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
Construction
revenue
|
$
668,156
|
$
621,224
|
|
$
1,720,365
|
$
1,622,223
|
|
|
|
|
|
|
Net income
|
14,466
|
12,117
|
|
34,931
|
32,866
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
0.27
|
0.23
|
|
0.65
|
0.62
|
|
|
|
|
|
|
Adjusted Earnings Per
Share
|
0.29
|
0.26
|
|
0.57
|
0.71
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
31,203
|
28,585
|
|
70,546
|
79,737
|
|
|
|
|
|
|
Cash flows from
operations before changes in non-cash working capital
|
$
32,444
|
$
27,609
|
|
$
80,905
|
$
76,832
|
|
|
|
|
|
|
(1) Adjusted
EBITDA is a non-GAAP financial measure. See "Terminology and
Non-GAAP & Other Financial Measures."
|
OVERVIEW
- The Company set a new record for its combined Backlog and
Pending Backlog of future work at September
30, 2022, amounting to $2.9
billion and $2.1 billion,
respectively. The Company secured $731.1
million of new contracts and change orders in Backlog and
executed $668.2 million of
construction revenues in the quarter, and added over $300 million of new awards to Pending
Backlog.
- During the third quarter of 2022, the Company announced that it
was awarded the following projects and contracts:
-
- Engineering, Procurement and Construction ("EPC") contracts for
two wind farms in development by Capstone Infrastructure
Corporation. The two wind farms, located in Alberta, have a combined rated capacity of
253.7 MW of renewable energy.
- Construction of the Covenant Wellness Community - Community
Health Centre, an approximately 200,000 square foot, three-storey
building with a two-level underground parkade, located in
Edmonton, Alberta. The Community
Health Centre is the first phase of Covenant Health's planned
Wellness Community. The award is valued at approximately
$95 million.
- The Board has declared an eligible dividend of $0.0325 per common share for each of November 2022, December
2022, January 2023 and
February 2023.
- Subsequent to the quarter end, the Company announced that it
was awarded the following projects and contracts:
-
- 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 quarter end, the Company entered into a
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.
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly
results on Wednesday, November 9,
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/bird2022Q3.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 September 30, 2022, prepared as
of November 8, 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 September 30, 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
September
30,
|
|
Nine months
ended
September
30,
|
(in thousands of
Canadian dollars, except per share amounts)
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
Net income
|
$
14,466
|
$
12,117
|
|
$
34,931
|
$
32,866
|
Add:
Acquisition and integration costs
|
1,362
|
2,260
|
|
1,759
|
6,669
|
Add: IFRS
restructuring costs (1)
|
—
|
—
|
|
—
|
—
|
Deduct: Gain on
settlement of trade receivable
|
—
|
—
|
|
(7,596)
|
—
|
Income tax effect of
the above costs
|
(326)
|
(556)
|
|
1,445
|
(1,627)
|
|
|
|
|
|
|
Adjusted
Earnings
|
$
15,502
|
$
13,821
|
|
$
30,539
|
$
37,908
|
|
|
|
|
|
|
Adjusted Earnings
Per Share (2)
|
$
0.29
|
$
0.26
|
|
$
0.57
|
$
0.71
|
|
|
|
|
|
|
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
September
30,
|
|
Nine months
ended
September
30,
|
(in thousands of
Canadian dollars, except percentage amounts)
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
Net income
|
$
14,466
|
$ 12,117
|
|
$
34,931
|
$ 32,866
|
Add: Income
tax expense
|
4,748
|
4,150
|
|
11,863
|
11,148
|
Add:
Depreciation and amortization
|
9,593
|
8,965
|
|
27,641
|
24,823
|
Add:
Finance and other costs
|
2,793
|
1,720
|
|
6,885
|
5,660
|
Less:
Finance and other income
|
(182)
|
(304)
|
|
(9,437)
|
(896)
|
Add:
(Gain)/loss on sale of property and equipment
|
(1,577)
|
(455)
|
|
(3,096)
|
(968)
|
Add: IFRS
restructuring costs (1)
|
—
|
—
|
|
—
|
—
|
Add: Other
restructuring and severance costs (2)
|
—
|
132
|
|
—
|
435
|
Add:
Acquisition and integration costs
|
1,362
|
2,260
|
|
1,759
|
6,669
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
31,203
|
$ 28,585
|
|
$
70,546
|
$ 79,737
|
|
|
|
|
|
|
Adjusted EBITDA
Margin (3)
|
4.7 %
|
4.6 %
|
|
4.1 %
|
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 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.
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.