MISSISAUGA, ON, March 8, 2022
/CNW/ - "The Company has delivered strong fourth quarter and
full-year 2021 results against the backdrop of ongoing challenges
related to the pandemic," said Mr. Teri
McKibbon, President and CEO of Bird Construction. "We could
not have delivered these results without our exceptional combined
team of experienced and dedicated employees. In addition to
delivering record revenue in 2021, the team's unwavering focus on
collaboration, cross-selling and diversification of both
capabilities and geographical reach has grown Bird's Backlog to
over $3.0 billion at year end. With
our record Backlog, complemented by a healthy pipeline of work in
Pending Backlog and a strong balance sheet, the Company is well
positioned to capitalize on top-line growth opportunities and
deliver an improved margin profile going forward."
FINANCIAL HIGHLIGHTS
Full-Year 2021 compared to Full-Year 2020
- Construction revenue of $2,220.0
million compared to $1,504.4
million, representing a 47.6% increase year-over-year.
- Net income and earnings per share were $42.8 million and $0.80, respectively, compared to $36.1 million and $0.80 in 2020.
- Backlog1 of $3,002.5
million, an increase of $320
million or 11.9% from the $2,682.5
million reported at the end of 2020.
- Adjusted Earnings1 and Adjusted Earnings Per
Share1 were $51.0 million
and $0.96, respectively, compared to
$41.6 million and $0.92 in 2020.
- Adjusted EBITDA1 of $108.1
million, or 4.9% of revenues, reflects a 32.0% increase in
Adjusted EBITDA.
Fourth Quarter 2021 compared to Fourth Quarter 2020
- Construction revenue of $597.8
million compared to $555.0
million, representing an 7.7% increase year-over-year.
- No recoveries were recorded under the Canada Emergency Wage Subsidy ("CEWS") program
in Q4 2021, compared to the $21.7
million 9-month cumulative recoveries recorded in Q4
2020.
- Net income and earnings per share were $9.9 million and $0.18, respectively, compared to $20.5 million and $0.39 in Q4 2020.
- Adjusted Earnings1 and Adjusted Earnings Per Share
were $13.0 million and $0.24, respectively, compared to $21.5 million and $0.41 in Q4 2020.
- Adjusted EBITDA1 of $28.4
million, or 4.8% of revenues, compared to $40.0 million, or 7.2% of revenues in Q4
2020.
___________________________
|
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
December 31,
|
|
Year ended
December 31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Construction
revenue
|
$
|
597,803
|
$
|
554,960
|
$
|
2,220,026
|
$
|
1,504,432
|
|
|
|
|
|
|
|
|
|
Net income
|
|
9,917
|
|
20,534
|
|
42,783
|
|
36,103
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
0.18
|
|
0.39
|
|
0.80
|
|
0.80
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per
Share
|
|
0.24
|
|
0.41
|
|
0.96
|
|
0.92
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
|
28,399
|
|
40,011
|
|
108,136
|
|
81,937
|
|
|
|
|
|
|
|
|
|
Cash flows from
operations before changes in non-cash working capital
|
|
25,791
|
|
39,806
|
|
102,623
|
|
71,696
|
OVERVIEW
- In September 2021, the Company
completed its acquisition of 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.
- Fiscal 2021 represents the first full year consolidating the
results of Stuart Olson following the Company's transformational
acquisition of the business on September 25,
2020. Since the acquisition, Bird has worked to successfully
combine the two strong, experienced workforces and integrate and
harmonize their policies, processes and people. Annualized cost
synergies resulting from the integration of Stuart Olson exceeded
$25.0 million, and were achieved as
expected in 2021. The Company has also benefitted, and is expected
to continue to benefit, from revenue synergies and cross-selling
opportunities of the combined operations.
- The Company further improved its record-setting Backlog at
December 31, 2021 to $3,002.5 million, growing 11.9% year-over-year,
while maintaining a strong Pending Backlog1 of
$1,624.7 million. During 2021, the
Company secured $2,540.0 million of
new contract awards and change orders and executed $2,220.0 million of construction revenues.
Compared to Backlog and Pending Backlog of $2,682.5 million and $1,635.9 million, respectively, at December 31, 2020, the net growth in combined
Backlog and Pending Backlog was achieved despite timing delays in
project tenders and awards from clients related to COVID-19.
- During 2021, Bird extended the maturity date of 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 revolving credit facility, and a
$50.0 million non-revolving term debt
facility. At December 31, 2021,
amounts available under this revolving facility of $140.3 million, in addition to the Company's
accessible cash balance of $103.0
million, provide the Company with substantial liquidity to
support the execution of its strategic initiatives.
- During the fourth quarter of 2021, the Company announced that
it was awarded the following projects and contracts:
-
- The first phase of a progressive Design-Build contract with
early collaborative contractor involvement for the Ontario Power
Generation Clarington Corporate Campus Project. 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.
- Through its Alliance Agreement with the renewable energy
company Noventa Energy Partners, the Company announced the
successful financial close of the recently announced Toronto
Western Hospital wastewater energy transfer ("WET") project valued
at approximately $42.9 million. The
alliance was formed to jointly pursue opportunities for WET
projects across Canada, with Bird
acting as the exclusive constructor.
- The Company, as part of a joint venture has successfully
completed the validation phase of the IPD contract for the Advanced
Nuclear Materials Research Centre for Canadian Nuclear
Laboratories. The approximate project value is over $500 million, and the completion of the
validation phase means that the project will now proceed. Bird's
share of the project value is expected to exceed $220 million.
- The Company has been awarded a contract for construction of
Lake City Studios, in Burnaby, British
Columbia. The project has a contract value in excess of
$200 million.
- The Board has declared an eligible dividend of $0.0325 per common share for each of March and
April 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.
|
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly
results on Wednesday, March 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/bird20220309.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,
2021, prepared as of March 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 December 31, 2021
and December 31, 2020.
"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)
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
9,917
|
$
|
20,534
|
|
$
|
42,783
|
$
|
36,103
|
Add:
Acquisition and integration costs
|
|
4,111
|
|
2,125
|
|
|
10,780
|
|
7,236
|
Add: IFRS
restructuring costs (1)
|
|
-
|
|
-
|
|
|
-
|
|
-
|
Income tax effect of
the above costs
|
|
(982)
|
|
(1,133)
|
|
|
(2,609)
|
|
(1,760)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings
|
$
|
13,046
|
$
|
21,526
|
|
$
|
50,954
|
$
|
41,579
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share (2)
|
$
|
0.24
|
$
|
0.41
|
|
$
|
0.96
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,917
|
$
|
20,534
|
|
$
|
42,783
|
$
|
36,103
|
Add: Income tax
expense
|
|
|
3,699
|
|
6,436
|
|
|
14,847
|
|
13,217
|
Add: Depreciation and
amortization
|
|
|
9,714
|
|
9,959
|
|
|
34,537
|
|
21,702
|
Add: Finance and other
costs
|
|
|
1,890
|
|
1,731
|
|
|
7,550
|
|
7,506
|
Less:
Finance income
|
|
|
(426)
|
|
(178)
|
|
|
(1,322)
|
|
(1,511)
|
Add: (Gain)/loss on sale of
property and equipment
|
(608)
|
|
(639)
|
|
|
(1,576)
|
|
(2,359)
|
Add: IFRS restructuring costs
(1)
|
|
|
-
|
|
-
|
|
|
-
|
|
-
|
Add: Other restructuring and
severance costs (2)
|
|
|
102
|
|
43
|
|
|
537
|
|
43
|
Add: Acquisition and integration
costs
|
|
|
4,111
|
|
2,125
|
|
|
10,780
|
|
7,236
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
28,399
|
$
|
40,011
|
|
$
|
108,136
|
$
|
81,937
|
Adjusted EBITDA
Margin (3)
|
|
|
4.8%
|
|
7.2%
|
|
|
4.9%
|
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
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 Stuart Olson and Dagmar acquisitions to
Bird, its shareholders, and all other stakeholders, including
anticipated synergies; the plans and strategic priorities of the
combined company; and with respect to Bird's share of
the project value for certain joint venture projects.
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;
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.
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.