Canada NewsWire
MISSISSAUGA, ON, Aug. 10, 2021
MISSISSAUGA, ON, Aug. 10, 2021 /CNW/ - "The second quarter of 2021 was very strong for the Company. We reported our eleventh successive quarter of trailing twelve month Adjusted EBITDA margin improvement and our combined Backlog reached a new record high. We are extremely pleased with the acquisition of Stuart Olson as the integration is on track and it is contributing positively to the bottom line. Additionally, we are witnessing increasingly greater cross-selling opportunities emerge as the list of combined project pursuits continues to grow," said Mr. Teri McKibbon, President and CEO, Bird Construction. "The Company's strategic focus in the past several years to balance the risk profile of our work program and further diversify the Company both geographically and with new service offerings continues to bear fruit. This, combined with higher recurring revenue streams, a record combined Backlog and a key focus on margin expansion, positions Bird to continue to deliver strong financial performance as market conditions improve and with government spending expected to rise."
FINANCIAL HIGHLIGHTS
Second Quarter 2021 compared to Second Quarter 2020
Year-to-date 2021 compared to Year-to-date 2020
Financial Results | ||||||||
(in thousands of Canadian dollars, except per share amounts) | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Construction revenue | $ | 556,362 | $ | 282,766 | $ | 1,000,999 | $ | 604,412 |
Net income | 13,630 | 5,624 | 20,749 | 6,747 | ||||
Basic and diluted earnings per share | 0.26 | 0.13 | 0.39 | 0.16 | ||||
Adjusted Earnings Per Share (1) | 0.28 | 0.15 | 0.45 | 0.18 | ||||
Adjusted EBITDA (1) | 30,112 | 12,328 | 51,152 | 19,890 | ||||
Cash flows from operations before changes in non-cash working capital (2) | $ | 28,431 | $ | 8,990 | $ | 49,223 | $ | 16,049 |
(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 June 30, 2021. |
OVERVIEW
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly results on Wednesday, August 11, 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/bird20210811.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 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 June 30, | Six months ended June 30, | ||||||||
(in thousands of Canadian dollars, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||
Net income | $ | 13,630 | $ | 5,624 | $ | 20,749 | $ | 6,747 | |
Add: Acquisition and Integration costs | 1,754 | 1,276 | 4,409 | 1,276 | |||||
Add: Restructuring costs (1) | - | - | - | - | |||||
Income tax effect of the above costs | (434) | (334) | (1,071) | (334) | |||||
Adjusted Earnings | $ | 14,950 | $ | 6,566 | $ | 24,087 | $ | 7,689 | |
Adjusted Earnings Per Share (2) | $ | 0.28 | $ | 0.15 | $ | 0.45 | $ | 0.18 | |
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 June 30, | Six months ended June 30, | ||||||||||
(in thousands of Canadian dollars, except percentage amounts) | 2021 | 2020 | 2021 | 2020 | |||||||
Income from operations | $ | 20,294 | $ | 9,109 | $ | 31,095 | $ | 12,978 | |||
Add: Depreciation and amortization | 7,898 | 3,287 | 15,858 | 7,155 | |||||||
Add: (Gain)/loss on sale of property and equipment | (110) | (1,344) | (513) | (1,519) | |||||||
Add: Restructuring costs (1) | - | - | - | - | |||||||
Add: Restructuring and severance costs (2) | 276 | - | 303 | - | |||||||
Add: Acquisition and Integration costs | 1,754 | 1,276 | 4,409 | 1,276 | |||||||
Adjusted EBITDA | $ | 30,112 | $ | 12,328 | $ | 51,152 | $ | 19,890 | |||
Adjusted EBITDA Margin (3) | 5.4% | 4.4% | 5.1% | 3.3% | |||||||
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 June 30, 2021, prepared as of August 10, 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 acquisition (the "Transaction"), 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 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; 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 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.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2021/10/c3813.html