Canada NewsWire
MISSISSAUGA, ON, Nov. 10, 2020
LISTING: TORONTO STOCK EXCHANGE
SYMBOL: BDT
MISSISSAUGA, ON, Nov. 10, 2020 /CNW/ -
HIGHLIGHTS:
"As we near the end of our transformational 100th year, the Bird team has continued to demonstrate their resilience and dedication. While there have been impacts to top line revenue due to challenges faced in the current global pandemic, our eighth sequential quarter of improving Adjusted EBITDA margin performance validates our efforts on disciplined execution, diversification and delivering consistency in earnings," said Teri McKibbon, President & CEO. "In the third quarter, the transaction to join forces with Stuart Olson closed, and our teams have made excellent progress on the integration to date."
Financial Results | |||||||||
(in thousands of Canadian dollars, except per share amounts) | |||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||
2020 | 2019 | 2020 | 2019 | ||||||
Construction revenue | $ | 345,060 | $ | 378,591 | $ | 949,472 | $ | 955,796 | |
Net income | 8,822 | 6,782 | 15,569 | 1,317 | |||||
Basic and diluted earnings per share | 0.20 | 0.16 | 0.36 | 0.03 | |||||
Adjusted earnings per share (1) | 0.29 | 0.16 | 0.47 | 0.03 | |||||
Adjusted EBITDA (1) | 22,036 | 14,021 | 41,926 | 16,280 | |||||
Cash flows from operations before changes in non- | $ | 15,841 | $ | 13,851 | $ | 31,890 | $ | 14,676 | |
(1)See "Non-GAAP measures" at the end of this news release | |||||||||
(2)Refer to the consolidated statement of cash flows |
In the nine months, cash flows from operations before changes in non-cash working capital of $31.9 million increased $17.2 million year-over-year from the $14.7 million cash generated in 2019 primarily due to the $14.3 million improvement in net income, a $6.2 million higher non-cash addback of income tax expense year-over-year, a $1.8 million higher non-cash addback of finance and other costs, partially offset by $6.0 million higher non-cash reduction for income from equity accounted investments.
Bird Construction Inc. also announced that its Board of Directors has approved monthly eligible dividends for the following months in the amount of $0.0325 per common share to be paid as follows:
i) | The October dividend of $0.0325 per share will be paid on November 20, 2020 to the Shareholders of record |
ii) | The November dividend of $0.0325 per share will be paid on December 18, 2020 to the Shareholders of |
iii) | The December dividend of $0.0325 per share will be paid on January 20, 2021 to the Shareholders of record |
iv) | The January dividend of $0.0325 per share will be paid on February 19, 2021 to the Shareholders of record |
v) | The February dividend of $0.0325 per share will be paid on March 19, 2021 to the Shareholders of record as |
Bird will host an investor webcast on Wednesday, November 11, 2020 at 10:00 a.m. ET, to discuss the quarterly results. Analysts and investors may connect to the webcast via URL at http://services.choruscall.ca/links/bird20201111.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/publications#investor-presentations.
Related financial documents will be filed and available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
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
Three months ended | Nine months ended | ||||||||
(in thousands of Canadian dollars, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||
Net income | $ | 8,822 | $ | 6,782 | $ | 15,569 | $ | 1,317 | |
Add: Acquisition and Integration costs | 3,835 | - | 5,111 | - | |||||
Add: Restructuring costs (1) | - | - | - | - | |||||
Income tax effect of the above costs | (293) | - | (627) | - | |||||
Adjusted Earnings | $ | 12,364 | $ | 6,782 | $ | 20,053 | $ | 1,317 | |
Adjusted Earnings Per Share (2) | 0.29 | 0.16 | 0.47 | 0.03 | |||||
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 | Nine months ended | |||||||
(in thousands of Canadian dollars, except percentage amounts) | 2020 | 2019 | 2020 | 2019 | ||||
Income before income taxes | $ | 12,924 | $ | 9,302 | $ | 22,350 | $ | 1,922 |
Add: Depreciation and amortization | 4,588 | 4,568 | 11,743 | 11,346 | ||||
Add: Finance and other costs | 1,132 | 1,237 | 5,775 | 4,005 | ||||
Less: Finance income | (242) | (698) | (1,333) | (1,827) | ||||
Add: Loss/(gain) on sale of property and equipment | (201) | (443) | (1,720) | (1,091) | ||||
Add: Restructuring costs (1) | - | - | - | - | ||||
Add: Restructuring and severance costs (2) | - | 55 | - | 1,925 | ||||
Add: Acquisition and Integration costs | 3,835 | - | 5,111 | - | ||||
Adjusted EBITDA | $ | 22,036 | $ | 14,021 | $ | 41,926 | $ | 16,280 |
Adjusted EBITDA Margin (3) | 6.39% | 3.70% | 4.42% | 1.70% | ||||
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 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 acquisition, 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. 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 Bird and Stuart Olson operate 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 Transaction; 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; Stuart Olson's Annual Information Form for the year ended December 31, 2019 and most recently filed Management's Discussion and Analysis and Bird's Annual Information Form for the year ended December 31, 2019 and most recently filed Management's Discussion and Analysis, each of which may be accessed on Stuart Olson's and Bird's SEDAR profile, respectively, at www.sedar.com.
The forward-looking statements contained in this news release are made as of the date hereof and the parties undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information contact:
T.L. McKibbon, President & C.E.O or
W.R. Gingrich, C.F.O
Bird Construction Inc.
5700 Explorer Drive, Suite 400
Mississauga, ON, L4W 0C6
Phone: (905) 602-4122 Fax: (905) 602-1516
SOURCE Bird Construction Inc.
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